Document:

Ex-U.S. License Agreement

 Exhibit 10.2 
 *** Text Omitted and Filed Separately 
 Pursuant to a Confidential Treatment Request

 under 17 C.F.R. §§ 200.80(b)(4) and 240.24b-2(b)(1) 

EX-U.S. LICENSE AGREEMENT 
 THIS EX-U.S. LICENSE AGREEMENT (the “Agreement”) is entered into as of the Effective Date (as defined below) by
and between VICAL INCORPORATED, a Delaware corporation (“Vical”), having an address of 10390 Pacific Center Court, San Diego, California, 92121, USA, and
ASTELLAS PHARMA INC., a company organized under the laws of Japan (“Astellas”), having an address of 3-11, Nihonbashi-Honcho 2-chome, Chuo-Ku, Tokyo 103-8411, Japan.

 RECITALS 
 WHEREAS, Vical has developed expertise and owns proprietary rights related to Compounds and Products in the Field (each as defined below), as more fully described below; 

WHEREAS, Astellas is engaged in the research, development and commercialization of pharmaceutical products; and

 WHEREAS, Astellas wishes to obtain, and Vical is willing to grant to Astellas, an
exclusive license under Vical Technology (as defined below) to develop and commercialize Products in the Field in the Territory (as defined below), subject to the terms and conditions set forth herein. 

AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	DEFINITIONS 

1.1 “Affiliate” shall mean, with respect to a particular party, a person, corporation, partnership, or other
entity that controls, is controlled by or is under common control with such party. For the purposes of this definition, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common
control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of more than fifty percent
(50%) of the voting stock of such entity, or by contract or otherwise. 
 1.2 “Astellas Indemnitee”
shall have the meaning provided in Section 11.1. 
 1.3 “Astellas Reserved Product” shall have the
meaning provided in Section 3.5(b). 
 1.4 “Calendar Quarter” shall mean each respective period of
three consecutive months ending on March 31, June 30, September 30 and December 31. 

  
 1. 

 1.5 “Calendar Year” shall mean each respective period of twelve
(12) consecutive months beginning on January 1. 
 1.6 “CMC” shall mean chemistry,
manufacturing and controls. 
 1.7 “CMV” shall mean cytomegalovirus. 

1.8 “Combination Product” shall mean any pharmaceutical product that contains one or more Compound(s) in
combination with one or more other therapeutically and/or prophylactically active ingredient(s), whether packaged together or included in a prime-boost regimen or in the same therapeutic formulation, including, in each case, all formulations, line
extensions and modes of administration, but excluding, in each case, any formulation with the Vaxfectin Adjuvant. For clarification, poloxamers, other delivery systems and adjuvants shall not be considered therapeutically and/or prophylactically
active ingredients. 
 1.9 “Commercialization Plan” shall have the meaning provided in Section 4.2.

 1.10 “Commercially Reasonable Efforts” shall mean that level of efforts and resources consistent with
commercially reasonable practices of a company in the pharmaceutical industry with respect to the research, development or commercialization of a pharmaceutical product at a similar stage of research, development or commercialization, taking into
account relevant factors including, without limitation, measures of patent coverage, relative safety and efficacy, product profile, the competitiveness of the marketplace, the proprietary position of such product, the regulatory structure involved,
the market potential of such product and other relevant factors, including comparative technical, legal, scientific and/or medical factors, all as measured by the facts and circumstances in effect at the time when the carrying out of such
obligations is due. 
 1.11 “Committees” shall mean the JDC and JSC, collectively, and
“Committee” shall mean the JDC or JSC, as applicable. 
 1.12 “Competitive Product”
shall have the meaning provided in Section 3.4. 
 1.13 “Compound” shall mean
[...***...]
 plasmid that encodes [...***...] of glycoprotein B and/or phosphoprotein 65 [...***...]. 
 1.14
“Confidential Information” shall mean all Information and other proprietary scientific, marketing, financial or commercial information or data, which one party or any of its Affiliates has furnished or otherwise made available
to the other party or its Affiliates, whether made available orally, in writing, or in electronic form. Confidential Information shall include all such information provided or made available pursuant to the Confidentiality Agreement. All Vical
Technology shall be Confidential Information of Vical. All Confidential Information shall be subject to the Article 9. 

1.15 “Confidentiality Agreement” shall mean that certain Confidentiality Agreement [...***...]. 

  

***Confidential Treatment Requested 

  
 2 

 1.16 “Control” shall mean, with respect to any Information, Patent
or other intellectual property right, possession by a party of the ability (whether by ownership, license or otherwise, but without taking into account any rights granted by one party to the other party under the terms of this Agreement) to grant
access, a right to use, a license or a sublicense (as applicable) to such Information, Patent or other intellectual property right without violating the terms of any agreement or other arrangement with any Third Party. 

1.17 “CytRx” shall mean CytRx Corporation, a Delaware corporation located at 154 Technology Parkway, Technology
Park/Atlanta, Norcross, GA 30092, USA. 
 1.18 “CytRx Agreement” shall mean that certain License
Agreement, dated December 7, 2001, by and between Vical and CytRx, and any amendments made in accordance with its terms. A copy of the CytRx Agreement has been provided to Astellas under separate cover. 

1.19 “Development Plan” shall mean the annual plan for preclinical and clinical development of Products in the
Field, including the budget for such activities to be performed by Vical, and any amendment or modification to such plan, which plan (other than such plan agreed as of the Effective Date) is drafted by the JDC and approved by the JSC. 

1.20 “Effective Date” shall have the meaning provided in Section 12.15. 

1.21 “EMA” shall mean the European Medicines Agency or any successor agency thereto having the administrative
authority to regulate the marketing of human pharmaceutical products or biological therapeutic products in the European Union. 

1.22 “Excluded Claim” shall have the meaning provided in Section 12.3(c)(vi). 

1.23 “Excluded Product” shall have the meaning provided in Section 3.5(a). 

1.24 “Executives” shall have the meaning provided in Section 2.1(d). 

1.25 “Field” shall mean all therapeutic and prophylactic use to control or prevent CMV infection in
(a) Immunocompromised Patients, including HSCT Recipients and SOT Recipients, and (b) human transplant donors, but excluding, in each case, any therapeutic or prophylactic use to control or prevent CMV infection other than as expressly
described in clauses (a) and (b). 
 1.26 “First Commercial Sale” shall mean, with respect to a
Product, the first sale for end use to a Third Party in a country in the Territory after the applicable Regulatory Authority has granted Regulatory Approval in such country. 
 1.27 “Generic Product” shall mean, on a country-by-country basis, a product that is introduced in the applicable country in the Territory by an entity other than Astellas or a
Sublicensee or their respective Affiliates, which (i) contains the same or equivalent (by EMA or other applicable Regulatory Authority standards, on a country-by-country basis) therapeutically and/or prophylactically active ingredient(s) in the
same dosage form, route of administration, and 

  
 3. 

 
strength or concentration as a Product sold by Astellas or a Sublicensee or their respective Affiliates in such country, (ii) has been granted Regulatory Approval by an abridged procedure
pursuant to and in accordance with Article 10 of Directive 2001/83/EC (or equivalent legislation in the Territory) in reliance in whole or in part on the prior Regulatory Approval of a Product or the safety and efficacy data generated for the prior
Regulatory Approval for such Product, or (iii) has been granted regulatory approval by a procedure pursuant to and in accordance with Article 10a of Directive 2001/83/EC (or equivalent legislation in the Territory). 

1.28 “HSCT” shall mean transplantation of hematopoietic stem cells, including peripheral blood stem cells, cord
blood stem cells and bone marrow. 
 1.29 “HSCT Recipient” shall mean a human recipient in a HSCT.

 1.30 “HSR Act” shall have the meaning provided in Section 12.15. 

1.31 “HSR Filing Date” shall have the meaning provided in Section 12.15. 

1.32 “ICC” shall have the meaning set forth in Section 12.3(c)(i). 

1.33 “ICC Rules” shall have the meaning set forth in Section 12.3(c)(i). 

1.34 “IFRS” shall mean the International Financial Reporting Standards. 

1.35 “Immunocompromised Patients” shall mean human patients whose immune system is not functioning normally
because of an immunodeficiency disorder or other disease, or as the result of the administration of immunosuppressive drugs or other drugs that may indirectly cause a reduction of the immune system function. For the avoidance of doubt, elderly
patients and pregnant women shall not be deemed Immunocompromised Patients solely because such patients are elderly or pregnant, respectively. 
 1.36 “Information” shall mean all tangible and intangible (a) techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods, protocols,
processes, knowledge, know-how, skill, experience, information, data and results (including pharmacological, toxicological, clinical, analytical and quality control data and results), regulatory filings, marketing reports, software and algorithms
and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 
 1.37
“[...***...]” shall have the meaning set forth in Section [...***...]. 
 1.38 “JDC” shall have the meaning set forth in Section 2.2. 
 1.39 “JSC” shall have the meaning set forth in Section 2.1. 
 1.40 “Losses” shall have the meaning provided in Section 11.1. 
 1.41 “MAA” shall mean a marketing authorization application or equivalent application, and all amendments and supplements thereto, filed with the applicable Regulatory

  

***Confidential Treatment Requested 

  
 4 

 
Authority in a country or jurisdiction in the Territory (including any supra-national agency such as the EMA in the European Union). 

1.42 “Major Markets” shall mean [...***...], and “Major Market” shall mean any of
the foregoing. 
 1.43 “[...***...]” shall have the meaning set forth in Section [...***...].

 1.44 “Manufacturing Coordinators” shall have the meaning set forth in Section 2.7. 

1.45 “Manufacturing Plan” shall mean (a) the annual plan for (i) CMC activities (including, without
limitation, formulation, analytical and process development, and scale-up, stability, packaging and shipping studies) with respect to Compound and Products in the Field and (ii) the manufacture of Compound and Products in the Field and
(b) any amendment or modification to such plan, which plan (other than such plan agreed as of the Effective Date) is drafted by the Manufacturing Coordinators and approved by the JSC during the term of the Services Agreement. 

1.46 “Net Sales” shall mean the gross amounts invoiced by Astellas and/or its Sublicensees for sales or other
dispositions of Products to Third Parties in the Territory, less the following items, as allocable to such Products (if not previously deducted from the amount invoiced): (a) trade, quantity and cash discounts, credits or allowances;
(b) credits or allowances additionally granted upon returns, rejections or recalls or for retroactive price reductions and billing errors; (c) rebates, discounts and chargeback payments in any form granted to managed health care
organizations, pharmacy benefit managers (or equivalents thereof), national, state/provincial, local, and other governments, their agencies and purchasers and payers/reimbursers, or to trade customers; (d) freight, shipping and insurance
charges directly related to the distribution of Products; and (e) taxes, duties or other governmental tariffs (other than income taxes). Net Sales (including Net Sales for the Combination Product) will be calculated on a country-by-country
basis. 
 Upon any sale or other disposition of any Product for any consideration other than exclusively monetary consideration
on bona fide arm’s-length terms, for purposes of calculating Net Sales under this Agreement, such Product shall be deemed to be sold exclusively for money at the average sales price during the applicable reporting period generally achieved for
such Product in the country in which such sale or other disposition occurred when such Product is sold alone and not as part of a Combination Product. 
 In no event will any particular amount, identified above, be deducted more than once in calculating Net Sales. Sales of a Product between Astellas or its Sublicensees and their Subdistributors exclusively
for monetary consideration on bona fide arm’s length terms at fair market value shall be included in the computation of Net Sales, and for clarity the subsequent resale by a Subdistributor of such Product to a Third Party shall be excluded from
the computation of Net Sales. Sales of a Product between Astellas and its Sublicensees (which are not Subdistributors) for resale shall be excluded from the computation of Net Sales, but the subsequent resale of such Product to a Third Party shall
be included within the computation of 

  

***Confidential Treatment Requested 

  
 5 

 
Net Sales. Any free-of-charge disposal or use of a Product for development, regulatory or marketing purposes, such as clinical trials, compassionate use or indigent patient programs, shall not be
deemed a sale or disposition for purposes of calculating Net Sales. 
 In the case of a Combination Product, Net Sales for such
Combination Product shall be calculated by multiplying actual Net Sales of such Combination Product by the fraction A/(A+B) where A is the invoice price of the Product that contains one or more Compound(s) as the sole active ingredient(s), if sold
separately, and B is the total invoice price of the other active ingredient(s) in the Combination Product, if sold separately. If, on a country-by-country basis, the other active ingredient(s) in the Combination Product is not sold separately in
such country, Net Sales for the purpose of determining royalties of the Combination Product shall be calculated by multiplying actual Net Sales of such Combination Product by the fraction A/D, where A is the average invoice price of the Product that
contains one or more Compound(s) as the sole active ingredient(s), if sold separately in such country, and D is the average invoice price of the Combination Product in such country. If the Product that contains one or more Compound(s) as the sole
active ingredient(s) is not sold separately in a given country, the parties shall determine Net Sales for such Combination Product by mutual agreement based on the relative contribution of the Product that contains one or more Compound(s) as the
sole active ingredient(s) and the other active ingredient(s) in the Combination Product. 
 Net Sales will be calculated in
accordance with this definition and Astellas’ accounting policies generally consistent with IFRS on an accrual basis, as consistently applied. To the extent any accrued amounts used in the calculation of Net Sales are estimates, such estimates
shall be trued-up in accordance with Astellas’ accounting policies generally consistent with IFRS, as consistently applied, and Net Sales and related payments under this Agreement shall be reconciled as appropriate. 

1.47 “Patent Term Extension” shall have the meaning provided in Section 7.3. 

1.48 “Patents” shall mean (a) all patents, including design patents, certificates of invention, applications
for certificates of invention, priority patent filings and patent applications, including provisional patent applications and design patent applications, and (b) any renewal, divisional, continuation, continuation-in-part, or request for
continued examination of any of such patents, certificates of invention and patent applications, and any and all patents or certificates of invention issuing thereon, and any and all reissues, reexaminations, extensions, certificates of correction,
divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions of or to any of the foregoing. 
 1.49 “Phase 3 Clinical Trial” shall mean a pivotal clinical trial of a Product conducted in human patients in any country designed to ascertain efficacy and safety of such Product
for the purpose of submitting an application for Regulatory Approval to the competent Regulatory Authority in the Territory. 

1.50 “[...***...]” shall have the meaning set forth in Section [...***...]. 

1.51 “Product” shall mean any pharmaceutical product that contains one or more Compound(s), alone or as a
Combination Product, including, in each case, all formulations, line 

  

***Confidential Treatment Requested 

  
 6 

 
extensions and modes of administration, including any pharmaceutical product containing any formulation of one or more Compound(s) with poloxamer CRL1005, but excluding, in each case, any
formulation with the Vaxfectin Adjuvant. 
 1.52 “Regulatory Approval” shall mean any and all approvals
(including individual and national price and reimbursement approvals, as applicable), licenses, registrations, or authorizations of any country, federal, supranational, state or local regulatory agency, department, bureau or other governmental
entity that are necessary to market and sell a Product in the Field in any country or regulatory jurisdiction in the Territory. 

1.53 “Regulatory Authority” shall mean any national, federal, supra-national, regional, state or local regulatory
agency, department, bureau, commission, council or other governmental entity whose review and/or approval is necessary for the manufacture, packaging, use, storage, import, export, distribution, promotion, marketing, offer for sale and sale of a
Product in the Field in a country or regulatory jurisdiction in the Territory. 
 1.54 “Representatives”
shall have the meaning provided in Section 12.1. 
 1.55 “Reserved Product” shall have the meaning
provided in Section 3.5(b). 
 1.56 “Restricted Period” shall have the meaning provided in
Section 3.5(c). 
 1.57 “Royalty Term” shall have the meaning provided in Section 5.3(b).

 1.58 “Sale” shall have the meaning provided in Section 12.7(a). 

1.59 “Services Agreement” shall mean that certain Supply and Services Agreement of even date herewith by and
between Vical and Astellas, as amended in accordance with its terms. 
 1.60 “SOT” shall mean solid
organ transplantation. 
 1.61 “SOT Recipient” shall mean a human recipient in a SOT. 

1.62 “Standstill Period” shall have the meaning provided in Section 12.1. 

1.63 “[...***...]” shall have the meaning set forth in Section [...***...]. 

1.64 “Subdistributor” shall mean a Third Party appointed by Astellas or one of its Sublicensees as a distributor
of Product which Third Party purchases Product in the Territory from Astellas or its Sublicensee and resells and distributes (including registration, promotion and marketing) the Product in its respective territory. 

1.65 “Sublicense Agreement” shall have the meaning provided in Section 3.2. 

1.66 “Sublicensee” shall mean a Third Party or Affiliate to whom Astellas has granted a sublicense of the right
to research, develop, make, have made, use, sell, offer for sale, have sold or import a Product in the Field in the Territory, beyond the mere right to purchase such Product. 

  

***Confidential Treatment Requested 

  
 7 

 1.67 “Term” shall have the meaning provided in Section 10.1.

 1.68 “Territory” shall mean the world, excluding the United States of America and its territories and
possessions, including Puerto Rico and the District of Columbia. 
 1.69 “Third Party” shall mean any
entity other than Vical or Astellas or an Affiliate of Vical or Astellas. 
 1.70 “U.S. Agreement” shall
mean that certain U.S. License Agreement of even date herewith by and between Vical and Astellas, as amended in accordance with its terms. 
 1.71 “Valid Claim” shall mean a claim of an issued patent or pending patent application within the Vical Primary Patents that has not been revoked or held unenforceable or invalid
by a decision of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or with respect to which an appeal is not taken within the time allowed for appeal, and that has not been abandoned, disclaimed or admitted
to be invalid or unenforceable through reissue, disclaimer, or otherwise. 
 1.72 “Vaxfectin
Adjuvant” shall mean Vical’s proprietary cationic lipid-based system known as Vaxfectin®
comprising (±)-N-(3-aminopropyl)-N,N-dimethyl-2,3-bis(syn-9-tetradeceneyloxy)-1-propanaminium bromide (GAP-DMORIE) or derivatives thereof and one or more co-lipid(s), including 1,2-diphytanoyl-sn-glycero-3-phosphoethanolamine (DPyPE), which
is claimed or disclosed in a Patent Controlled by Vical. 
 1.73 “Vical Indemnitee” shall have the
meaning provided in Section 11.2. 
 1.74 “Vical Know-How” shall mean Information not included in
the Vical Patents that Vical Controls on the Effective Date or during the Term, which Information is necessary or useful for the development, registration, manufacture, use, promotion, distribution, offer for sale, sale import or export of Compounds
or Products in the Field in the Territory, including any Information Controlled by Vical regarding poloxamer CRL1005 under which Vical has an exclusive license pursuant to the CytRx Agreement, and any replication or any part of any of the foregoing.
For clarification, in the case of a Combination Product, Vical Know-How does not include any Information Controlled by Vical relating to any therapeutically and/or prophylactically active ingredient in such Combination Product other than a Compound.

 1.75 “Vical Patents” shall mean all Patents that Vical Controls as of the Effective Date or during
the Term, which Patents claim the composition of matter of, or any method of making or using, Compounds or Products in the Field in the Territory, including the Vical Primary Patents. For clarification, in the case of a Combination Product, Vical
Patents do not include any Patents Controlled by Vical, which Patents relate to any therapeutically and/or prophylactically active ingredient in such Combination Product other than a Compound. The Vical Patents as of the Effective Date are listed on
EXHIBIT A. 
 1.76 “Vical Primary Patents” shall mean
(a) [...***...], and such other Vical Patents as the parties agree to include in this subsection (a) pursuant to the last sentence of this Section 1.76, (b) corresponding foreign

  

***Confidential Treatment Requested 

  
 8 

 
Patents in the Territory, whether now existing or hereafter filed and (c) any renewal, divisional, continuation, continuation-in-part, or request for continued examination of any of such
patents, including provisional patent applications, and any and all patents or certificates of invention issuing thereon, and any and all reissues, reexaminations, extensions, certificates of correction, divisions, renewals, substitutions,
confirmations, registrations, revalidations, revisions, and additions of or to any of the foregoing. Without limiting the foregoing, if at any time during the Term the parties mutually agree in writing that any Vical Patent other than the Patents
set forth above can maintain market exclusivity of a Product in the Field in such country or countries in the Territory, such Vical Patent shall thereafter be regarded as a Vical Primary Patent and shall automatically be included in
Section 1.76(a) above with respect to such country or countries. For clarity, if the parties cannot mutually agree regarding whether any other Vical Patent shall be included as a Vical Primary Patent, such disagreement shall not be subject to
arbitration as set forth in Section 12.3(c) and such Vical Patent shall not be a Vical Primary Patent. 
 1.77
“Vical Reserved Product” shall have the meaning provided in Section 3.5(b). 
 1.78
“Vical Retained Product” shall have the meaning provided in Section 3.5(a). 
 1.79
“Vical Technology” shall mean the Vical Patents and Vical Know-How. 
 1.80 “Withdrawal
Notice” shall have the meaning provided in Section 2.6. 
  

	2.	GOVERNANCE 

2.1 Joint Steering Committee. For purposes of this Agreement and the U.S. Agreement, the parties will establish one joint steering
committee (the “JSC”) to oversee the activities of the parties with respect to development, regulatory, manufacturing and commercialization matters relating to Products in the Field. 

(a) Composition. The JSC will be comprised of three (3) members appointed by Astellas and three (3) members appointed by
Vical, or such other equal number of members of each party agreed by Astellas and Vical. Each party will notify the other party of its initial JSC members within thirty (30) days after the Effective Date. Each party may change its JSC members
at any time by written notice to the other party, which may be delivered at a scheduled meeting of the JSC. Any member of the JSC may designate a substitute to attend and perform the functions of that member at any meeting of the JSC. The JSC shall
appoint for each meeting a Vical member or an Astellas member, on an alternating basis, as chairman for such meeting, whose role shall be to (i) provide written notice to the JSC members of agenda items proposed for discussion or decision at
such meeting at least ten (10) days prior to such JSC meeting, together with appropriate information related thereto, and (ii) convene and preside at such meeting of the JSC; provided, however, that the chairman shall not be entitled to
prevent items from being discussed or to cast any tie-breaking vote. Each party may, with the consent of the other party, such consent not to be unreasonably withheld or delayed, invite non-member, non-voting representatives of such party to attend
meetings of the JSC. 
 (b) Responsibilities. The JSC shall be responsible for monitoring and providing strategic
oversight of the parties’ activities with respect to development, regulatory, 

  
 9 

 
manufacturing and commercialization matters relating to Products in the Field. Without limiting the foregoing, the JSC shall: 

(i) review and approve the Development Plan and the Manufacturing Plan (including any amendments thereto); 

(ii) review (but not approve) the Commercialization Plan (including any amendments thereto); 

(iii) provide a forum in which Astellas updates Vical, and Vical provides input, with regard to development, regulatory,
manufacturing and commercialization matters relating to Products in the Field; 
 (iv) facilitate the exchange of data
and other Information between the parties with regard to development, regulatory, manufacturing and commercialization matters relating to Products in the Field; and 
 (v) perform such other duties as are specifically assigned by the parties to the JSC in this Agreement or any other written agreement between the parties. 

(c) Meetings. The JSC will hold meetings at such frequency as determined by the JSC members, but no less than once every six
(6) months. Such meetings may be in person, via videoconference, or via teleconference. The location of in-person JSC meetings will alternate between Vical’s offices in San Diego, California and Astellas’ offices in Deerfield,
Illinois unless the parties otherwise agree. 
 (d) Decision-Making. The JSC may make decisions with respect to any
subject matter that is within the JSC’s decision-making authority. Subject to this Section 2.1(d), all decisions of the JSC shall be made by unanimous vote, with the representatives of Vical on the JSC collectively having one vote and the
representatives of Astellas on the JSC collectively having one vote in all such decisions. If the JSC cannot make a decision with regard to any matter to be decided by the JSC within fifteen (15) days after such matter has been brought to the
JSC’s attention, then such matter shall be referred to the Chief Executive Officer of Vical and a senior executive of Astellas who reports directly to the Chief Executive Officer of Astellas (the Chief Executive Officer of Vical and such senior
executive of Astellas, collectively, the “Executives”) for resolution. If the Executives cannot resolve the issue within thirty (30) days after the matter has been brought to their attention then, subject to good faith
consideration of the views of Vical, and subject to Section 2.4, Astellas’ Executive shall have the tie-breaking vote on such matter. 
 2.2 Joint Development Committee. For purposes of this Agreement and the U.S. Agreement, the parties will establish one joint development committee (the “JDC”) with respect
to development of Products in the Field. 
 (a) Composition. The JDC will be comprised of three (3) members
appointed by Astellas and three (3) members appointed by Vical, or such other equal number of members of each party agreed by Astellas and Vical. Each party will notify the other party of its

  
 10 

 
initial JDC members within thirty (30) days after the Effective Date. Each party may change its JDC members at any time by written notice to the other party, which may be delivered at a
scheduled meeting of the JDC. Any member of the JDC may designate a substitute to attend and perform the functions of that member at any meeting of the JDC. The JDC shall appoint for each meeting a Vical member or an Astellas member, on an
alternating basis, as chairman for such meeting, whose role shall be to (i) provide written notice to the JDC members of agenda items proposed for discussion or decision at such meeting at least ten (10) days prior to such JDC meeting,
together with appropriate information related thereto, and (ii) convene and preside at such meeting of the JDC; provided, however, that the chairman shall not be entitled to prevent items from being discussed or to cast any tie-breaking vote.
Each party may, with the consent of the other party, such consent not to be unreasonably withheld or delayed, invite non-member, non-voting representatives of such party to attend meetings of the JDC. 

(b) Responsibilities. The JDC shall be responsible for oversight of the progress of the parties’ activities with respect to
development of Compounds and Products in the Field. Without limiting the foregoing, the JDC shall: 
 (i) draft the
Development Plan (including any amendments thereto) for approval by the JSC, and provide a forum for review and discussion of the Development Plan; 
 (ii) provide a forum for review and discussion of the results of the development of Compounds and Products in the Field; 
 (iii) facilitate the exchange of Information between the parties regarding the development of Compounds and Products in the Field; and 

(iv) perform such other duties as are specifically assigned by the JSC to the JDC. 

(c) Meetings. The JDC will hold meetings at such frequency as determined by the JDC members, but no less than once each Calendar
Quarter. Such meetings may be in person, via videoconference, or via teleconference. The location of in-person JDC meetings will alternate between Vical’s offices in San Diego, California and Astellas’ offices in Deerfield, Illinois unless
the parties otherwise agree. 
 (d) Decision-Making. The JDC may make decisions with respect to any subject matter that
is within the JDC’s decision-making authority. Subject to this Section 2.2(d), all decisions of the JDC shall be made by unanimous vote, with the representatives of Vical on the JDC collectively having one vote and the representatives of
Astellas on the JDC collectively having one vote in all such decisions. If the JDC cannot make a decision with regard to any matter to be decided by the JDC within fifteen (15) days after such matter has been brought to the JDC’s
attention, then such matter shall be referred to the JSC for resolution in accordance with Section 2.1(d). 
 2.3
Minutes. Reasonably detailed written minutes will be kept of all Committee meetings and will reflect material decisions made at such meetings. Minutes for each meeting of 

  
 11 

 
each Committee will be prepared by the chairman of such meeting and such minutes shall be sent to each member of the respective Committee for review and approval within ten (10) days after
the meeting. Minutes will be deemed approved unless a member of the respective Committee objects to the accuracy of such minutes within fifteen (15) days of receipt. 
 2.4 Scope of Decision-Making. Neither Committee nor any Executive in the course of resolving any dispute of the JSC shall have any right or power to amend this Agreement, to decide any matter in
contravention of any terms of this Agreement or to change any rights or obligations of either party under this Agreement. Without limiting the foregoing, neither Committee nor any Executive in the course of resolving any dispute of the JSC shall
have the right or power to (a) require Vical to perform studies or other development work that is not expressly agreed in writing by Vical and Astellas, or (b) require Vical to incur expenses other than as set forth in this Agreement or
otherwise expressly agreed in writing by Vical and Astellas. 
 2.5 Expenses. Each party shall bear all its own costs in
connection with its participation in the Committees, including expenses incurred by the members that it appoints to the Committees in connection with their activities as members of the Committees. 

2.6 Withdrawal. At any time during the Term and for any reason, Vical shall have the right to withdraw from participation in
either Committee or both Committees upon written notice to Astellas, which notice shall be effective immediately upon receipt (“Withdrawal Notice”). Following the issuance of a Withdrawal Notice and subject to this
Section 2.6, Vical’s representatives on the applicable Committee(s) shall not participate in any meetings of the applicable Committee(s), nor shall Vical have any right to vote on decisions within the authority of the applicable
Committee(s). If, at any time, following the issuance of a Withdrawal Notice, Vical wishes to resume participation in the applicable Committee(s), Vical shall notify Astellas in writing and, thereafter, Vical’s representatives on the applicable
Committee(s) shall be entitled to attend any subsequent meeting of the applicable Committee(s) as if a Withdrawal Notice had not been issued by Vical. Following Vical’s issuance of a Withdrawal Notice, unless and until Vical resumes
participation in the applicable Committee(s) in accordance with this Section 2.6: (a) all meetings of the Committee(s) shall be held at Astellas’ facilities; (b) Astellas shall have the right to make the final decision on all
matters within the scope of authority of the Committee(s); and (c) Vical shall have the right to continue to receive the minutes of the Committee(s) meetings, but shall not have the right to approve the minutes for any meeting of the applicable
Committee(s) held after Vical’s issuance of a Withdrawal Notice. For clarity, if Vical withdraws and then resumes participation in a Committee, it shall not have any right to retroactively review or modify any decision made by the Committee
during Vical’s withdrawal period. 
 2.7 Manufacturing Coordinators. Promptly after the Effective Date, each party
shall appoint an individual to act as the manufacturing coordinator for such party (the “Manufacturing Coordinator”). The Manufacturing Coordinators shall be the primary contacts of the parties regarding the manufacture of
Compounds and Products in the Field (including CMC activities such as formulation, analytical and process development, and scale-up, stability, packaging and shipping studies), draft the Manufacturing Plan (including any amendments thereto) for
approval by the JSC and otherwise facilitate the exchange of Information between 

  
 12 

 
the parties regarding the manufacture of Compounds and Products in the Field. The Manufacturing Coordinators will meet at such frequency as determined by the Manufacturing Coordinators, but no
less than once every six (6) months. Each Manufacturing Coordinator shall be permitted to attend meetings of the JSC as non-voting participants. Each party may replace its Manufacturing Coordinator with an alternative representative at any time
with prior written notice to the other party. 
  

	3.	LICENSES AND OTHER RIGHTS 

3.1 License and Sublicense Grant. Subject to the terms and conditions of this Agreement, Vical hereby grants to Astellas an
exclusive (even as to Vical and its Affiliates, but subject to Vical’s performance of such development, regulatory and manufacturing activities as agreed in writing by the parties), royalty-bearing license and sublicense, with the right to
sublicense in accordance with Section 3.2, under the Vical Technology, to research, develop, register, make, have made, use, promote, distribute, sell, offer for sale, have sold, import and export Products in the Field in the Territory.

 3.2 Sublicensing. Astellas shall have the right to grant sublicenses under the license granted in Section 3.1 to
one or more Third Parties or Affiliates subject to the provisions of this Section 3.2. Each agreement under which Astellas grants a sublicense under the license granted in Section 3.1 (each, a “Sublicense
Agreement”) shall (a) be in writing and (b) be consistent with, and subject to the terms and conditions of, this Agreement (including the terms relating to sublicenses of Vical Technology licensed or conveyed to Vical under
the CytRx Agreement, as applicable). Astellas shall be responsible for compliance of any Sublicensee with this Agreement. Any breach of this Agreement by the acts or omissions of a Sublicensee shall be a breach of this Agreement by Astellas.
Astellas shall provide Vical with a full and complete copy of each Sublicense Agreement with a Third Party (and if required by the CytRx Agreement, each Sublicense Agreement with an Affiliate) within [...***...] ([...***...]) days after
execution thereof; provided, that Astellas may redact any confidential information contained therein that is not necessary to disclose to ensure compliance with this Agreement. 

3.3 In-License Agreements. Astellas acknowledges that the Vical Technology licensed or otherwise conveyed to Vical under the CytRx
Agreement is subject to the applicable terms and conditions of the CytRx Agreement. In the event that CytRx notifies Vical of a default or breach under the CytRx Agreement related to any failure by Astellas or any Sublicensee to perform any
obligation or covenant under this Agreement, the parties will discuss how to resolve the matter and, if the parties agree to a proposed resolution of the matter, they will cooperate in responding to CytRx. If Astellas does not resolve such matter as
agreed by the parties, or if the parties do not agree to a resolution of the matter, then Vical shall have the right, but not the obligation, to take such actions as reasonably necessary or appropriate to cure such default or breach and shall keep
Astellas reasonably informed regarding such actions, and Astellas shall promptly reimburse Vical for all reasonable costs and expenses actually incurred by Vical solely as a result of such default or breach by Astellas or any Sublicensee. In the
event Vical receives from CytRx notice of termination of the CytRx Agreement, Vical shall notify Astellas thereof within [...***...] ([...***...]) days after receipt by Vical of such notice. Vical shall have no liability to Astellas for
any termination or modification of the CytRx Agreement arising out of or resulting from the failure of Astellas or any Sublicensee to abide by, comply with or perform under the 

  

***Confidential Treatment Requested 

  
 13 

 
terms, conditions or obligations of this Agreement. In addition, in the event the rights to the Vical Technology licensed to Vical under the CytRx Agreement cease to be licensed to Vical under
the CytRx Agreement and Astellas obtains a license with respect to such Vical Technology directly from CytRx, then Astellas may deduct from the applicable payments owed to Vical hereunder the amount actually paid by Astellas to CytRx for such
license with respect to such Vical Technology up to the amount that Vical would have been obligated to pay to CytRx under the CytRx Agreement with respect to such payment. 
 3.4 Disclosure of Vical Know-How. Upon Astellas’ request, Vical shall make available to Astellas Vical Know-How in Vical’s possession that has not previously been provided to Astellas,
including any raw data and/or original data relating to Compounds and Products in the Field; provided that any Vical Know-How relating to the manufacture of Compounds and Products in the Field shall be made available through a technology transfer
arrangement as provided in the Services Agreement. Vical shall not destroy, discard or otherwise dispose of or shall have not destroyed, discarded or otherwise disposed of any Vical Know-How without prior written approval of Astellas, which approval
shall not be unreasonably withheld. 
 3.5 Agreements. 

(a) By Vical. During the Term, Vical shall not, directly or indirectly through any Affiliate or Third Party, market, promote,
distribute, offer for sale or sell, or grant any license or sublicense under the Vical Technology to market, promote, distribute, offer for sale or sell, (i) any Product that contains any formulation of one or more Compound(s) with poloxamer
CRL1005 (an “Excluded Product”) outside the Field in the Territory or (ii) any pharmaceutical product that contains any formulation of one or more Compound(s) wih the Vaxfectin Adjuvant, alone or in combination with one
or more other therapeutically antd/or prophylactically active ingredients, in any dosage form or mode of administration (a “Vical Retained Product”) in the Field in the Territory; provided, however, that nothing shall prevent
Vical from, directly or indirectly through any Affiliate or Third Party, marketing, promoting, distributing, offering for sale or selling, or granting any license or sublicense under the Vical Technology to market, promote, distribute, offer for
sale or sell, any Vical Retained Product so long as Vical or such Affiliate or Third Party does not market or promote the Vical Retained Product for use in the Field in the Territory. 

(b) Reserved Products. The provisions of this Section 3.5(b) shall apply with respect to any Product other than an Excluded
Product (a “Reserved Product”) outside the Field in the Territory. Vical retains all rights, directly or indirectly through any Affiliate or Third Party, to research, develop, market, promote, distribute, offer for sale or
sell, or grant any license or sublicense under the Vical Technology to research, develop, market, promote, distribute, offer for sale or sell, any Reserved Product outside the Field in the Territory, subject to this Section 3.5(b) (any such
Reserved Product with respect to which Vical has retained rights, a “Vical Reserved Product”). Astellas may notify Vical in writing that it proposes to designate any Reserved Product as an “Astellas Reserved
Product,” specifying whether such Reserved Product would contain a Compound alone, a Compound formulated with an adjuvant (identifying the adjuvant) or a Compound administered through a delivery system (identifying the delivery system).
Astellas may provide such written request at any time after it or its 

  
 14 

 
Sublicensee has initiated good laboratory practices preclinical studies of such Reserved Product. The Reserved Product specified in such written notice from Astellas shall be deemed an Astellas
Reserved Product unless Vical provides written notice to Astellas within thirty (30) days after Vical’s receipt of such written notice from Astellas that Vical has granted a license or similar rights with respect to such Product to a Third
Party or has initiated good laboratory practices preclinical studies of such Reserved Product, in which case such Reserved Product shall not be an Astellas Reserved Product and shall remain a Vical Reserved Product. During the Term for so long as
Astellas uses Commercially Reasonable Efforts to develop, manufacture and commercialize an Astellas Reserved Product, Vical shall not, directly or indirectly through any Affiliate or Third Party, market, promote, distribute, offer for sale or sell,
or grant any license or sublicense under the Vical Technology to market, promote, distribute, offer for sale or sell, such Astellas Reserved Product outside the Field in the Territory. 

(c) By Astellas. During the Term, Astellas shall not, directly or indirectly through any Affiliate or Third Party, market,
promote, distribute, offer for sale or sell, or grant any license or sublicense to market, promote, distribute, offer for sale or sell, any DNA vaccine product for use in the Field in the Territory, other than Products in the Field in the Territory
(a “Competitive Product”). Further, Astellas agrees not to practice any Vical Technology except to develop, register, make, have made, use, promote, distribute, sell, offer for sale, have sold, import and export Products in
the Field in the Territory during the Term in accordance with the terms of this Agreement and any other written agreement between the parties. If Astellas or any of its respective Affiliates signs a definitive agreement whereby it would acquire a
license to or ownership of a Competitive Product, acquire ownership or control of or otherwise merge with an entity that owns or has a license to (or is commercializing for its own account) a Competitive Product or be acquired by or otherwise merged
with an entity that owns or has a license to (or is commercializing for its own account) a Competitive Product, in all such cases that would result in a violation of this Section 3.5(c), then Astellas or its Affiliate shall promptly notify
Vical in writing and, as promptly as reasonably possible but in no event later than [...***...] after the signing date of such definitive agreement (“Restricted Period”), either (i) divest itself of such
Competitive Product and notify Vical in writing of such divesture, or (ii) notify Vical in writing that such Competitive Product shall be incorporated into this Agreement and thereafter such Competitive Product shall be a Product subject to the
terms and conditions of this Agreement. If Astellas or its Affiliate elects to divest itself of such Competitive Product, such divesture shall occur by an outright sale to a Third Party of all of Astellas’ and its Affiliate’s rights to
such Competitive Product. For clarity, the commercialization of such Competitive Product during the Restricted Period shall not constitute a violation of Section 3.5(c). 
 3.6 Retained Rights; No Implied Licenses. Except for the rights and licenses expressly granted in this Agreement, Vical retains all rights under the Vical Technology, and no rights shall be deemed
granted by Vical to Astellas by implication, estoppel or otherwise. 
  

	4.	DEVELOPMENT AND COMMERCIALIZATION OF PRODUCTS 

4.1 Development of Products in the Field in the Territory. Subject to the terms and conditions of this Agreement, during the Term,
Astellas shall be solely responsible for the development of and obtaining Regulatory Approvals for Products in the Field in the Territory, including all costs associated with such activities, subject to the terms of any written agreement

  

***Confidential Treatment Requested 

  
 15 

 
between the parties providing for Vical to perform any such activities. Without limiting the foregoing, Astellas shall have sole responsibility, at Astellas’ cost and expense, for conducting
clinical and non-clinical studies of Products in the Field in the Territory and for preparing, filing, obtaining and maintaining the appropriate applications with Regulatory Authorities, and for all contacts with Regulatory Authorities, regarding
Products in the Field in the Territory. Astellas shall use Commercially Reasonable Efforts to develop, and to file for, obtain and maintain Regulatory Approvals for, at least one Product [...***...] and at least one Product [...***...]
in the Field [...***...]. Astellas shall perform all development and regulatory activities with respect to Products in the Field in the Territory in compliance with the Development Plan and all applicable laws, rules and regulations.
Furthermore, Astellas shall be solely responsible for the timely reporting of all relevant adverse drug reactions/experiences, Product quality, Product complaints and safety data relating to Compounds and Products, in each case in the Field, to the
appropriate Regulatory Authorities in accordance with the applicable laws, rules and regulations of the relevant countries and Regulatory Authorities. Prior to commencement of the first Phase 3 Clinical Trial, Vical shall complete transfer from
Vical to Astellas of the global safety database with respect to Compounds and Products in the Field. In addition, each party shall cooperate, and shall cause its Affiliates, licensees and Sublicensees to cooperate, in implementing and adhering to a
safety data exchange arrangement with respect to Compounds and Products in the Territory that shall be set forth in a safety data exchange agreement executed by the parties. 

4.2 Commercialization of Products in the Field in the Territory. Subject to the terms and conditions of this Agreement, during the
Term, Astellas shall be solely responsible for the commercialization of Products in the Field in the Territory, including any post-marketing studies of Products in the Field in the Territory, including all costs associated with such activities.
Astellas shall use Commercially Reasonable Efforts to commercialize at least one Product [...***...] and at least one Product [...***...] in the Field [...***...]. Within a reasonable time prior to anticipated commercial launch of
a Product, Astellas shall prepare a plan for the marketing, promotion and commercialization of such Product in the Field in the Territory, which plan shall be in reasonable scope and detail and may be amended by Astellas (the
“Commercialization Plan”). Astellas shall provide, or cause to be provided, the Commercialization Plan to the JSC for review on an annual basis and shall provide, or cause to be provided, any material amendments to the
Commercialization Plan to the JSC for review. Astellas shall perform all commercialization activities with respect to Products in the Field in the Territory in compliance with the Commercialization Plan and all applicable laws, rules and
regulations. Without limiting the foregoing, Astellas shall have the sole right and responsibility for all commercial and medical affairs matters with respect to Products in the Field in the Territory. 

4.3 Manufacture and Supply of Products. Subject to the terms and conditions of this Agreement and the Services Agreement, during
the Term, Astellas shall be solely responsible for the manufacture and supply of Products in the Field in the Territory, including CMC-related work necessary for obtaining Regulatory Approval for Products in the Field in the Territory, including all
costs associated with such activities. Astellas shall perform all 

  

***Confidential Treatment Requested 

  
 16 

 
manufacturing activities with respect to Products in the Field in the Territory in compliance with the Manufacturing Plan and all applicable laws, rules and regulations. 

4.4 Disclosure Regarding Astellas’ Efforts. Astellas shall keep Vical regularly and fully informed
regarding development, regulatory, manufacturing and commercialization activities of Astellas and its Sublicensees with respect to Products in the Field in the Territory. Without limiting the foregoing, Astellas shall keep Vical reasonably informed
of the progress of such activities, through the JSC, the JDC and directly, and shall, within [...***...] after the end of each Calendar Year during the Term, provide Vical a report setting forth a reasonably detailed description
of the progress and status of development, manufacture and commercialization of, and regulatory strategy and filings made and Regulatory Approvals obtained for, Products in the Field in the Territory, and a reasonably detailed description of the
development, manufacture, commercialization and regulatory activities that Astellas plans to undertake during the subsequent Calendar Year. 
 4.5 Subcontractors. Astellas may perform some or all of its obligations under this Article 4 through one or more subcontractors (which may include Vical). Astellas shall remain responsible for the
performance by any Third Party subcontractors and the compliance of such Third Party subcontractors with the provisions of this Agreement in connection with such performance. 

 

	5.	FEES AND PAYMENTS 

 5.1 Upfront Fee. Within thirty (30) days after the Effective Date, Astellas shall make a non-refundable, non-creditable payment to Vical of US$[...***...]. 

5.2 Milestone Payments. Within thirty (30) days after the occurrence of each of the following milestone events, Astellas
shall pay to Vical the corresponding non-refundable, non-creditable milestone payment set forth below (whether such milestone event is achieved by Astellas or any Sublicensee): 

 

					
	 Milestone Event
	  	Milestone Payment	 
		
	 [...***...]
	  	US$	[...***...]	  
		
	 [...***...]
	  			
		
	 [...***...]
	  	US$	[...***...]	  

  

***Confidential Treatment Requested 

  
 17 

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

  

***Confidential Treatment Requested 

  
 18 

					
	 [...***...]
	  	US$	[...***...]	  
		
	 [...***...]
	  			
		
	 [...***...]
	  	US$	[...***...]	  
		
	 [...***...]
	  			

  

***Confidential Treatment Requested 

  
 19 

			
	 [...***...]
	  	

 Each of the milestone payments described in this Section 5.2 shall be payable one time for the first achievement of
such milestone event by any applicable Product, regardless of the number of other Products that subsequently achieve such milestone event. For clarification, in the event two or more milestone events are achieved at the same time, the milestone
payments for both milestone events shall be due. 
 5.3 Royalties. 

(a) Royalty Rate. Astellas shall pay Vical royalties equal to [...***...] percent ([...***...]%) of Net Sales of
Products in the Field in the Territory. 
 (b) Royalty Term. Royalties under this Section 5.3 shall be payable on a
Product-by-Product and country-by-country basis during the period of time commencing on the First Commercial Sale of such Product in such a country in the Territory and ending upon the latest to occur of (i) expiration of the last to expire
Valid Claim with respect to such Product (or any Compound therein) in such country, (ii) expiration of any data or other regulatory exclusivity period for such Product in such country or (iii) ten (10) years after the earliest date of
First Commercial Sale of such Product for any indication in the Field in such country (the “Royalty Term”). 
 (c) Royalty Reduction. During any portion of the Royalty Term for a Product in a country in which there is no Valid Claim with respect to such Product in such country, (i) if a Generic Product
is approved by the Regulatory Authority in such country and such Regulatory Authority reduces the reimbursement amount for such Product in such country by [...***...] percent ([...***...]%) or more of the reimbursement amount prior to
approval of such Generic Product in such country, the royalty rate payable under Section 5.3(a) on Net Sales of such Product in such country during such portion of the Royalty Term shall be reduced by [...***...] percent
([...***...]%) (i.e., from [...***...]% to [...***...]%); or (ii) if a Generic Product is approved by the Regulatory Authority in such country but Section 5.3(c)(i) is not applicable, and sales of such Generic Product(s)
in such country are equal to or greater than [...***...] percent ([...***...]%) of total unit number of such Product and the Generic Product(s) in such country for at least [...***...] ([...***...])[...***...] Calendar
Quarters, the royalty rate payable under Section 5.3(a) on Net Sales of such Product in such country during such portion of the Royalty Term shall be reduced by [...***...] percent ([...***...]%) (i.e., from [...***...]% to
[...***...]%). 
 5.4 Payments to Third Parties. Vical shall be responsible for any fees, milestone and royalty
payments owed to CytRx under the CytRx Agreement. Except as provided in the preceding sentence, Astellas (or its Sublicensee) shall be responsible for any and all payments owed to any Third Party for any Patents, Information or other intellectual
property rights licensed or acquired by Astellas (or its Sublicensee) after the Effective Date in order to develop, 

  

***Confidential Treatment Requested 

  
 20 

 
make, have made, use, promote, distribute, sell, offer for sale, have sold or import any Product in the Field in the Territory (it being understood that the decision to license or acquire any
such Patents, Information or other intellectual property rights shall be at Astellas’ (or its Sublicensee’s) discretion). 
  

	6.	PAYMENT; RECORDS; AUDITS 

6.1 Payment; Reports. All payments due under this Agreement shall be paid within [...***...]
 ([...***...]) days of the end of each Calendar Quarter, unless otherwise specifically provided herein. Royalty payments shall be calculated and reported for each Calendar Quarter. Each royalty payment due to Vical shall be accompanied by
a report of Net Sales by Astellas and its Sublicensees, each in sufficient detail to permit confirmation of the accuracy of the payment made, including, without limitation and on a country-by-country basis, the number of Products sold, the gross
sales with reconciliation to Net Sales of such Products, the royalties payable, the method used to calculate the royalties, and the exchange rates used. 
 6.2 Exchange Rate; Manner and Place of Payment. All payments hereunder shall be payable in U.S. dollars. When conversion of payments from any foreign currency is required, such conversion shall be
at an exchange rate equal to the weighted average of the rates of exchange (i.e. the average of TTS rate and TTB rate) for the currency of the country from which the royalties are payable as published by the Bank of Tokyo Mitsubishi UFJ, Ltd. in
Japan (or such other bank or source agreed in writing by the parties), during the Calendar Quarter for which a payment is due. All payments owed under this Agreement shall be made by wire transfer in immediately available funds to a bank account
designated in writing by Vical, unless otherwise specified in writing by Vical. 
 6.3 Income Tax Withholding. Each party
will pay any and all taxes levied on account of any payments made to it under this Agreement. If any taxes are required to be withheld by the paying party, the paying party will (a) deduct such taxes from the payment made to the other party,
(b) timely pay the taxes to the proper taxing authority, and (c) send proof of payment to the other party and certify its receipt by the taxing authority within thirty (30) days following such payment. For purposes of this Section,
each party agrees to provide the other with reasonable assistance to enable the due deduction by the paying party and appropriate recovery by the other party, which assistance includes, but is not limited to, provision of any tax forms and other
information that may be reasonably necessary in order for the paying party not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. 

6.4 Records; Audits. Astellas shall keep, and require its Sublicensees to keep, complete, fair and true books of accounts and
records for the purpose of determining the amounts payable to Vical pursuant to this Agreement, as well as the expenses of any [...***...]. Such books and records shall be kept for such period of time required by law, but no less than
[...***...] ([...***...]) years following the end of the Calendar Quarter to which they pertain. Vical (or CytRx, as applicable) shall have the right to cause an independent, certified public accountant, reasonably acceptable to
Astellas, to audit such records to confirm Net Sales, royalties and other payments for a period covering not more than the preceding six (6) years. Except for any audits of the expenses of any [...***...], for-cause audits or as

  

***Confidential Treatment Requested 

  
 21 

 
otherwise permitted under the CytRx Agreement, as applicable, audits may be exercised not more often than [...***...] each year, [...***...] for each relevant record, and during normal business hours upon reasonable
prior written notice to Astellas. Any such auditor shall not disclose Astellas’ Confidential Information to Vical, except to the extent such disclosure is necessary to verify the accuracy of such records. Prompt adjustments shall be made by the
parties to reflect the results of such audit. Vical (or CytRx, as applicable) shall bear the full cost of such audit unless such audit discloses an underpayment by Astellas of more than [...***...] percent ([...***...]%) of the amount of
royalties or other payment due under this Agreement or an overstatement by more than [...***...] percent ([...***...]%) of the expenses of any [...***...], in which case, Astellas shall bear the full cost of such audit and shall
promptly remit to Vical the amount of any underpayment. 
 6.5 Late Payments. In the event that any payment due under
this Agreement is not made when due, the payment shall accrue interest from the date due at the rate of [...***...] percent ([...***...]%) above the U.S. Prime Rate (as set forth by Bloomberg (Ticker symbol PRIME index)); provided,
however, that in no event shall such rate exceed the maximum legal annual interest rate. The payment of such interest shall not limit Vical from exercising any other rights it may have as a consequence of the lateness of any payment. 

 

	7.	INTELLECTUAL PROPERTY 

 7.1 Ownership. Vical has, and shall retain, all right, title and interest in and to, the Vical Patents and Vical Know-How. [...***...]. 

7.2 Patent Prosecution and Maintenance. As between the parties, Vical (or its licensor, as applicable) shall have the sole right
(except as otherwise provided in this Section 7.2 with respect to opposition proceedings regarding any continuation of [...***...], but not the obligation, to prepare, file, prosecute (including any interferences, extensions, reissue
proceedings and reexaminations) and maintain the Vical Patents, at its sole cost (subject to Section 7.3) and by counsel of its own choice. Vical shall provide Astellas with reasonable opportunity to review and comment on any material document
that Vical intends to file or cause to be filed with the relevant intellectual property or patent office with respect to the Vical Patents in the Territory, and Vical shall give due consideration to such comments provided by Astellas. Astellas
agrees to reasonably cooperate in the preparation, filing, and prosecution of any Vical Patents and in the obtaining and maintenance of any supplementary protection certificates and the like with respect to any Vical Patent claiming a Product being
developed or commercialized by Astellas or Sublicensees in the Territory. Such cooperation includes, but is not limited to, promptly informing Vical of any matters coming to Astellas’ attention that may affect the preparation, filing,
prosecution or maintenance of any Vical Patents. In the event Vical elects not to defend any opposition proceeding for any [...***...] in the Field in the Territory, Vical shall provide 

  

***Confidential Treatment Requested 

  
 22 

 
written notice thereof to Astellas, and Astellas shall have the right, but not the obligation, to defend such opposition proceeding, at its sole cost and by counsel of its own choice, and, if
Astellas elects to do so, Astellas shall keep Vical reasonably informed with respect thereto. In such case, Vical agrees to reasonably cooperate in defending the opposition proceeding. In addition, in the event that Vical determines to abandon or
cease prosecution or maintenance of any Vical Patent in the Territory, Vical shall provide reasonable prior written notice to Astellas of such intention to abandon or cease prosecution or maintenance. In such case, subject to the rights of
Vical’s licensor with respect to any Vical Patent licensed to Vical by a Third Party, Astellas may elect, upon written notice by Astellas to Vical, to cause Vical to continue prosecution and/or maintenance of such Vical Patent in the Territory,
at Vical’s sole cost and expense for any Vical Primary Patent, and at Astellas’ sole cost and expense and in accordance with Astellas’ instructions for any such Vical Patent that is not a Vical Primary Patent. Astellas shall reimburse
Vical for such costs and expenses incurred by Vical in connection with prosecuting and/or maintaining any such Vical Patent that is not a Vical Primary Patent within thirty (30) days from the date of invoice for such costs and expenses by
Vical. In the event that Astellas desires to cease bearing the costs and expenses with respect to any such Vical Patent, Astellas shall provide reasonable prior written notice to Vical of such intention. In such case, Vical shall have the right, but
not the obligation, to elect to continue prosecuting and maintaining any such Vical Patent at its own expense. 
 7.3
Additional Patent Term Extension Obligations. Astellas shall keep Vical fully informed of the progress of Astellas (and, as applicable, its Sublicensee(s)) toward Regulatory Approval of the first Product in the Territory. Astellas shall assist
Vical in determining with respect to such Product if the Vical Patents would be eligible for patent term extension pursuant to 35 U.S.C. §§154–56, supplementary protection certificate, and, as appropriate, applicable foreign patent
laws (“Patent Term Extension”). Astellas acknowledges that time is of the essence with respect to submission of any application for Patent Term Extension. Astellas shall give Vical notification in writing of its (or, as
applicable, its Sublicensee’s) first obtaining Regulatory Approval of a Product in the Territory within [...***...] ([...***...]) days of receipt of written notice of such Regulatory Approval from the applicable Regulatory
Authority. Vical shall apply for Patent Term Extension for any Vical Primary Patent as requested by Astellas, at Vical’s expense. At Vical’s request, Astellas shall, in a timely manner, reasonably assist Vical in preparing an application
for Patent Term Extension. Astellas (and, as applicable, its Sublicensee(s)) shall reasonably cooperate with Vical in preparing the applications for Patent Term Extension. Astellas agrees to join in such applications at Vical’s request.
Astellas shall reasonably support such applications and shall provide such information as may be requested by Vical or any Regulatory Authority in support of such applications. 

7.4 Patent Enforcement. Each party shall promptly notify the other in writing of any alleged or threatened infringement of any
Vical Patent in the Territory of which such party becomes aware. The following provisions shall apply with respect any action or proceeding with respect to infringement by a Third Party of any Vical Patent in the Territory, subject to the terms of
the CytRx Agreement with respect to Vical Patents licensed from CytRx. 

  

***Confidential Treatment Requested 

  
 23 

 (a) Enforcement. 

(i) Astellas First Right. As between the parties, excepting Patents licensed to Vical under the CytRx Agreement, Astellas shall
have the first right to bring and control any action or proceeding with respect to infringement by a Third Party of any Vical Patent in the Field in the Territory, at its own expense and by counsel of its own choice, except as provided in this
Section 7.4(a)(i) and except that Section 7.4(a)(ii) shall instead apply with respect to infringement by a Third Party of any Vical Patent both in the Field and outside the Field in the Territory. Vical shall have the right, at its own
expense, to be represented in any such action with respect to infringement of any Vical Patents in the Field in the Territory by counsel of its own choice, and Astellas and its counsel shall reasonably cooperate with, and take into account the view
of, Vical and its counsel in strategizing, preparing and presenting any such action or proceeding. If Astellas fails to bring an action or proceeding with respect to infringement of any Vical Patent in the Field in the Territory within
(A) [...***...] ([...***...]) days following the notice of alleged infringement or (B) [...***...] ([...***...]) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing
of such actions, whichever comes first, Vical shall have the right (but not the obligation) to bring and control any such action at its own expense and by counsel of its own choice, and Astellas shall have the right, at its own expense, to be
represented in any such action by counsel of its own choice. 
 (ii) Vical First Right. As between the parties, Vical
shall have the first right to bring and control any action or proceeding with respect to infringement by a Third Party of any Vical Patent (including any Patents licensed to Vical under the CytRx Agreement) in the Territory other than as set forth
in Section 7.4(a)(i) at its own expense and by counsel of its own choice, except as provided in this Section 7.4(a)(ii). Astellas shall have the right, at its own expense, to be represented in any such action with respect to any such
infringement of any Vical Patents in the Territory by counsel of its own choice, and Vical and its counsel shall reasonably cooperate with, and take into account the view of, Astellas and its counsel in strategizing, preparing and presenting any
such action or proceeding. If Vical fails to bring an action or proceeding with respect to such infringement of any Vical Patent in the Territory within (A) [...***...] ([...***...]) days following the notice of alleged infringement
or (B) [...***...] ([...***...]) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, and such infringement of such Vical Patent would have a
material adverse effect on Astellas’ rights with respect to any Product in the Field in the Territory, then Astellas shall have the right (but not the obligation) to bring and control any such action at its own expense and by counsel of its own
choice, and Vical shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. 
 (b)
Cooperation; Awards. In the event a party brings an infringement action in accordance with this Section 7.4, the other party shall reasonably cooperate, including if required to bring such action, joining such action as a necessary party or
the furnishing of a power of attorney. Neither party shall have the right to settle any patent infringement litigation with respect to any Vical Patent under this Section 7.4 in a manner that diminishes the rights or interests of the other
party without the consent of such other party (which shall not be unreasonably withheld). Except as otherwise agreed to by the parties as part of a cost-sharing arrangement, any recovery or damages realized as a result of such action or proceeding
shall be used first to reimburse the parties’ documented out-of-pocket legal expenses relating to the 

  

***Confidential Treatment Requested 

  
 24 

 
action or proceeding, and any remaining damages relating to the Products (including lost sales or lost profits with respect to Products) shall be retained by the party that brought and controlled
the action and, if Astellas brought and controlled such action, shall be deemed Net Sales subject to the royalty provisions of Section 5.3. 
 7.5 Third Party Infringement Claims. Each party shall promptly notify the other party in writing of any allegation by a Third Party that the activity of either party with respect to the
development, manufacture or commercialization of any Product in the Field in the Territory infringes or may infringe the intellectual property rights of such Third Party. Vical shall have the sole right to control any defense of any such claim
involving alleged infringement of Third Party rights by Vical’s activities, at Vical’s sole cost and expense and by counsel of its own choice, and Astellas shall have the right, at its own expense, to be represented in any such action by
counsel of its own choice. Astellas shall have the sole right to control any defense of any such claim involving alleged infringement of Third Party rights by Astellas’ activities, at Astellas’ sole cost and expense and by counsel of its
own choice, and Vical shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. Neither party shall enter into any settlement or compromise of any action under this Section 7.5 which would in
any manner diminish the rights or interests of the other party without the consent of such other party (which shall not be unreasonably withheld). 
 7.6 Orange Book Listing. Astellas shall have the sole right to make any filing with respect to any Vical Primary Patents in connection with the Patent listing source in any country in the Territory
that is equivalent to the Orange Book, if any. Upon request of Astellas, with respect to countries in the Territory, Vical shall cooperate with Astellas to file appropriate information with the applicable Regulatory Authority listing any Vical
Primary Patents. 
 7.7 Patent Marking. Astellas shall mark all Products made, used or sold in the Territory, or their
containers, if required under applicable laws, rules and regulations relating to patent marking. 
 7.8 Registration of
License. Astellas may, at its sole discretion and at its own expense, register the license granted under this Agreement with the patent office or any other competent authorities in any country of the Territory in accordance with the relevant law
in such country, and Vical shall, promptly upon Astellas’ request, provide Astellas with assistance necessary for such registration, including without limitation applying for such registration for Astellas and signing all necessary documents.

 7.9 Trademarks. Astellas shall be responsible for selection, registration and maintenance of the trademark(s) for
Products in the Field in the Territory, at its own cost, and all such trademark(s) shall be filed and exclusively owned by Astellas. At Astellas’ election, Vical shall grant to Astellas during the Term a royalty-free exclusive license with the
right to sublicense under Vical’s interest in Vical’s common law trademark TransVaxTM for use solely in connection with the sale and offer for sale of Products in the Field in the Territory. Such license shall become perpetual in the
event Astellas obtains a perpetual and fully paid-up license and sublicense under the Vical Technology pursuant to Section 10.1. For clarity, Vical is and shall remain the owner of all right, title and interest in and to Vical’s common law
trademark 

  
 25 

 
TransVaxTM and the goodwill now and hereafter associated therewith shall at all times inure to the benefit of Vical. 

 

	8.	REPRESENTATIONS AND WARRANTIES 

8.1 Mutual Representations and Warranties. Each party represents and warrants to the other party as of the Effective Date that:

 (a) Organization. It is duly organized and validly existing under the laws of its jurisdiction of incorporation or
formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof. 
 (b) Authorization. It is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been
duly authorized to do so by all requisite corporate or partnership action. 
 (c) Binding Agreement. This Agreement is
legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation
of any court, governmental body or administrative or other agency having jurisdiction over it. 
 (d) Agreements with
Employees and Contractors. All of such party’s employees or contractors acting on its behalf pursuant to this Agreement or any other written agreement between the parties are and will be obligated under a binding written agreement to comply
with obligations of confidentiality and non-use consistent with those set forth in Article 9. 
 (e) No Debarment.
Such party is not debarred under the United States Federal Food, Drug and Cosmetic Act or comparable laws in any other country or jurisdiction, and it does not, and will not during the Term, employ or use the services of any person or entity who is
debarred, in connection with the development, manufacture or commercialization of the Products. In the event that either party becomes aware of the debarment or threatened debarment of any person or entity providing services to such party, including
the party itself and its Affiliates or Sublicensees, which directly or indirectly relate to activities under this Agreement, the other party shall be immediately notified in writing. 

8.2 Vical Representations and Warranties. Vical represents, warrants and covenants to Astellas as of the Effective Date that:

 (a) Control. Except for those rights in-licensed by Vical under the CytRx Agreement, Vical is the sole owner of all of
the Vical Technology existing as of the Effective Date, free and clear of all liens. 
 (b) Right to Grant License. Vical
has the right to grant the license and sublicenses it grants to Astellas under Section 3.1 of this Agreement. 

  
 26 

 (c) No Conflicting Grant of Rights. Vical and its Affiliates have not, and will not
during the Term, grant any right to any Third Party that would conflict with the rights granted to Astellas hereunder or, except with Astellas’ prior written consent, allow a Third Party to create and maintain any security interest in
(i) Vical Patents (excepting Patents licensed to Vical under the CytRx Agreement) or (ii) any rights granted to Astellas hereunder, to secure third-party financing; provided that Vical may allow a Third Party to create and maintain such a
security interest without Astellas’ prior written consent if such security interest is subject to the rights granted to Astellas under such Vical Patents or other rights as set forth in this Agreement. 

(d) No Infringement. Vical has not received any notice alleging, and is not otherwise actually aware, that the practice of the
Vical Patents infringes or may infringe any Patent(s) of any Third Party. 
 (e) No Legal Actions. As of the Effective
Date, there are no pending legal actions, nor has Vical received any written notice regarding any pending legal actions, with respect to the Vical Technology, and no Vical Patent is the subject of any interference, opposition, cancellation or other
protest proceeding. 
 (f) Disclosure. Up to and including the Effective Date, Vical has made available
to Astellas (i) all material information (including without limitation pre-clinical and clinical data) in its possession or Control relating to the Compound, the Product(s) and Vical Patents in the Field in the Territory, including
material information in its possession or Control that is material to the utility or safety of the Compound and/or the Product(s) in the Field in the Territory, and (ii) all safety data in its possession or Control relating to the Compound and
Product(s). 
 8.3 Disclaimer. Except as expressly set forth herein, THE VICAL TECHNOLOGY IS PROVIDED “AS IS,”
AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS
OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES. 
 8.4 Limitation of Liability. NEITHER
PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER; provided, however, that this Section 8.4 shall not be
construed to limit either party’s indemnification obligations under Article 11 or its right to obtain recover damages for breach of Article 9. For clarification, payments under Article 5 shall not be considered special, incidental,
consequential or punitive damages. 
  

	9.	CONFIDENTIALITY 

 9.1 Confidential Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties, the parties agree that, during the Term

  
 27 

 
and until the [...***...] ([...***...]) anniversary of the date of expiration or termination of the later to expire or terminate of this Agreement or the U.S. Agreement, each
party (in such capacity, the “receiving party”) shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement or the
Confidentiality Agreement any Confidential Information of the other party (in such capacity, the “disclosing party”). The receiving party may use Confidential Information of the other party only to the extent required to
accomplish the purposes of this Agreement. The receiving party will use at least the same standard of care as it uses to protect proprietary or confidential information of its own (but not less than reasonable care) to ensure that its employees,
agents, consultants and other representatives do not disclose or make any unauthorized use of the Confidential Information of the disclosing party. The receiving party will promptly notify the disclosing party upon discovery of any unauthorized use
or disclosure of the Confidential Information of the disclosing party. Without limiting the foregoing, the parties acknowledge that Vical Know-How includes valuable trade secrets and that it is in the interests of both parties to protect the
confidentiality of the Vical Know-How; provided, that nothing will limit or prevent Vical from using or disclosing the Vical Know-How in connection with its discussions and activities outside the scope of the exclusive license granted to Astellas
hereunder with respect to Compounds and Products in the Field in the Territory. 
 9.2 Exceptions. Confidential
Information shall not include any information which the receiving party can demonstrate by competent evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available;
(b) is known by the receiving party at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished to the receiving party by a Third Party, as a matter of right and without restriction on disclosure; or
(d) is independently discovered or developed by the receiving party without the use of Confidential Information of the disclosing party. 
 9.3 Authorized Disclosure. The receiving party may disclose Confidential Information of the disclosing party as expressly permitted by this Agreement or if and to the extent such disclosure is
reasonably necessary in the following instances: 
 (a) prosecuting or defending litigation as permitted by this
Agreement; 
 (b) complying with applicable court orders or governmental regulations; 

(c) in the case of Astellas, conducting development manufacturing and/or commercialization activities in accordance with the
license granted in Section 3.1, including making regulatory filings with respect to Products; 
 (d) in the case of
Vical, as reasonably necessary to fulfill its obligations under the CytRx Agreement; and 
 (e) disclosure to Affiliates,
sublicensees, subcontractors, employees, consultants, agents or other Third Parties who need to know such information for the development, manufacture and commercialization of Products in accordance with this Agreement or in connection with due
diligence or similar investigations by such Third Parties, and disclosure to potential Third Party investors in confidential financing documents, provided, 

  

***Confidential Treatment Requested 

  
 28 

 
in each case, that any such Affiliate, sublicensee, subcontractor, employee, consultant, agent or Third Party agrees to be bound by similar terms of confidentiality and non-use at least
equivalent in scope to those set forth in this Article 9. 
 Notwithstanding the foregoing, in the event the receiving party is required to make
a disclosure of the disclosing party’s Confidential Information pursuant to Section 9.3(a) or (b), it will, except where impracticable, give reasonable advance notice to the disclosing party of such disclosure and use efforts to secure
confidential treatment of such information at least as diligent as the receiving party would use to protect its own confidential information, but in no event less than reasonable efforts. In any event, the receiving party agrees to take all
reasonable action to avoid disclosure of Confidential Information of the disclosing party. 
 9.4 Confidentiality of this
Agreement and its Terms. Except as otherwise provided in this Article 9, each party agrees not to disclose to any Third Party the existence of this Agreement or the terms of this Agreement without the prior written consent of the other
party hereto, except that each party may disclose the terms of this Agreement that are not otherwise made public as contemplated by Section 9.5 as permitted under Section 9.3. 

9.5 Public Announcements. 
 (a) Press Releases. As soon as practicable following the date hereof, the parties shall each issue a mutually agreed press release announcing the existence of this Agreement. Except as required by
applicable laws and regulations (including disclosure requirements of the U.S. Securities and Exchange Commission (“SEC”) or any stock exchange on which securities issued by a party or its Affiliates are traded), neither
party shall make any other public announcement concerning this Agreement or the subject matter hereof without the prior written consent of the other, which shall not be unreasonably withheld or delayed; provided that each party may make any public
statement, including statements in response to questions by the press, analysts, investors or those attending industry conferences or financial analyst calls, or issue press releases, so long as any such public statement or press release is not
inconsistent with prior public disclosures or public statements approved by the other party pursuant to this Section 9.5 and which do not reveal non-public information about the other party. For avoidance of doubt, Vical shall have the right,
without the prior written consent of Astellas, to announce events such as achievement of milestones under this Agreement, and other events deemed material by its General Counsel; provided, however, that Vical shall consult with Astellas with regard
thereto and provide reasonable opportunity for Astellas to review such announcement in advance. In the event of a required public announcement, to the extent practicable under the circumstances, the party making such announcement shall provide the
other party with a copy of the proposed text of such announcement sufficiently in advance of the scheduled release to afford such other party a reasonable opportunity to review and comment upon the proposed text. 

(b) Filing of Agreement. The parties will coordinate in advance with each other in connection with the filing of this Agreement
(including redaction of certain provisions of this Agreement) with the SEC or any stock exchange or governmental agency on which securities issued by a party or its Affiliate are traded, and each party will use reasonable efforts to seek
confidential treatment for the terms proposed to be redacted; provided that each party will ultimately retain control over what information to disclose to the SEC or any stock exchange 

  
 29 

 
or other governmental agency, as the case may be, and provided further that the parties will use their reasonable efforts to file redacted versions with any governing bodies which are consistent
with redacted versions previously filed with any other governing bodies. Other than such obligation, neither party (or its Affiliates) will be obligated to consult with or obtain approval from the other party with respect to any filings to the SEC
or any stock exchange or other governmental agency. 
 (c) Publications. 

(i) Except as otherwise set forth in Section 9.5(c)(ii) below, at least [...***...] ([...***...]) days
prior to publishing, publicly presenting, and/or submitting for written or oral publication a manuscript, abstract or the like that includes Information relating to any Product in the Field that has not been previously published, each party shall
provide to the other party a draft copy thereof for its review (unless such party is required by law to publish such Information sooner, in which case such party shall provide such draft copy to the other party as much in advance of such publication
as possible). The publishing party shall consider in good faith any comments provided by the other party during such [...***...] ([...***...]) day period. In addition, the publishing party shall, at the other party’s reasonable
request, remove therefrom any Confidential Information of such other party, except each party shall have the right to publicly disclose any information, including Confidential Information, pertaining to safety or efficacy of the Product that such
party believes in good faith it is obligated by applicable law or appropriate to conform to applicable regulatory requirements to disclose; provided that it shall delay publication for a period not to exceed [...***...] ([...***...])
days in order to allow the other party to file for patent protection as permitted by this Agreement in relation to its Confidential Information. The contribution of each party shall be noted in all publications or presentations by acknowledgment or
co-authorship, as appropriate. 
 (ii) In the event Astellas desires to publish, publicly present, and/or submit for
written or oral publication a manuscript, abstract or the like that includes Information relating to any Product in the Field but that does not include any Confidential Information of Vical, Astellas shall provide to Vical a draft copy thereof for
its review prior to the date of such publication, presentation or submission, and Astellas shall consider in good faith any comments provided by Vical with respect thereto. 
 (iii) Astellas shall, within a reasonable amount of time after the Effective Date and from time to time thereafter, provide to Vical a copy of its plan for publication regarding Compounds and
Products in the Field, including all material updates and changes thereto. 
 9.6 Equitable Relief. Given the nature of
the Confidential Information and the competitive damage that would result to the disclosing party upon unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the parties agree that monetary damages may not be a
sufficient remedy for any breach of this Article 9. In addition to all other remedies, the disclosing party shall be entitled to seek specific performance and injunctive and other equitable relief as a remedy for any breach or threatened breach
of this Article 9. 

  

***Confidential Treatment Requested 

  
 30 

	10.	TERM AND TERMINATION 

 10.1 Term. The term of this Agreement shall commence on the Effective Date and continue in each country in the Territory until the expiration of the last Royalty Term in such country, subject, in
each case, to earlier termination pursuant to Section 10.2 (the “Term”). On a Product-by-Product and country-by-country basis upon expiration of the Royalty Term with respect to such Product in such country
[...***...], the license and sublicense granted by Vical to Astellas under Section 3.1 with respect to such Product in such country shall remain in effect on a perpetual, fully paid-up and royalty-free basis, subject to the limits set
forth in Article 3. 
 10.2 Early Termination. 
 (a) Termination for Cause. 
 (i) A party shall have the right to
terminate this Agreement upon written notice to the other party if such other party is in material breach of this Agreement and has not cured such breach within sixty (60) days (thirty (30) days with respect to any payment breach) after
written notice from the terminating party requesting cure of such breach. Any such termination shall become effective at the end of such sixty (60) day (thirty (30) day with respect to any payment breach) period unless the breaching party
has cured any such breach prior to the end of such period. [...***...]. 
 (ii) A party shall have the right to
terminate this Agreement upon written notice to the other party upon the bankruptcy, dissolution or winding up of such other party, or the making or seeking to make or arrange an assignment for the benefit of creditors of such other party, or the
initiation of proceedings in voluntary or involuntary bankruptcy, or the appointment of a receiver or trustee of such other party’s property that is not discharged within ninety (90) days. 

(b) Other Astellas Termination Right. Astellas shall have the right to terminate this Agreement on a country-by-country basis if Astellas
reasonably determines that further development and/or commercialization of Products in the Field in such a country in the Territory will not be beneficial for Astellas for scientific, regulatory, commercial, financial, ethical or other fair reasons
specified in reasonable detail in writing to Vical: (i) prior to completion of the technology transfer of Vical Know-How relating to the manufacture of Compounds and Products in the Field to Astellas or its designee, upon one hundred eighty
(180) 

  

***Confidential Treatment Requested 

  
 31 

 
days’ prior written notice to Vical, and (ii) thereafter, upon ninety (90) days’ prior written notice to Vical. 

(c) Other Vical Termination Rights. Vical shall have the right to terminate this Agreement immediately upon written notice to
Astellas if Astellas or any of its Affiliates or Sublicensees, directly or indirectly through any Third Party, commences any interference or opposition proceeding with respect to, challenges the validity or enforceability of, or opposes any
extension of or the grant of a supplementary protection certificate with respect to, any Vical Patent. 
 10.3 Effect of
Termination or Expiration; Surviving Obligations. 
 (a) Effect of Any Termination. Upon any termination of this
Agreement by either party: 
 (i) all rights and obligations of the parties under this Agreement shall terminate, except
as provided in Sections 10.3, 10.4, 10.5 and, as applicable, 10.6; 
 (ii) Astellas shall perform its outstanding
non-cancellable obligations with respect to Products in the terminated country or in the Territory, as applicable, that existed or accrued prior to the notice date of termination; and 

(iii) Astellas shall cooperate with and provide reasonable assistance to Vical with respect to any applications for Patent Term
Extension, including providing such information as may be requested by Vical or any Regulatory Authority in support of such applications. 
 (b) Effect of Any Termination Other than Termination by Astellas for Cause. Upon any termination of this Agreement by Astellas under Section 10.2(b) with respect to any country or countries or
any termination of this Agreement by Vical under Section 10.2(a) or (c), 
 (i) if, at the time of such
termination, there are any ongoing clinical trials with respect to Products in the Field in the terminated country or in the Territory, as applicable, the parties shall, at Vical’s option, negotiate in good faith and adopt a plan to wind-down
the development activities in an orderly fashion or, at Vical’s election, promptly transition such development activities to Vical or its designee, with due regard for patient safety and the rights of any subjects that are participants in any
clinical trials of the Product and take any actions Vical deems reasonably necessary or appropriate to avoid any human health or safety problems and in compliance with all applicable laws, rules and regulations; and 

(ii) Astellas shall, and hereby does, grant to Vical: 
 (1) the unrestricted right to use and refer to all Information, including all data and regulatory documents, relating to any Compound or Product, in the terminated country or countries and, if this
Agreement is terminated in its entirety, in the Territory and also outside the Territory upon any termination of the U.S. Agreement; 

  
 32 

 (2) an exclusive, royalty-free, perpetual, irrevocable license, with the right to
sublicense and further sublicense, under all Patents Controlled by Astellas or its Affiliates that claim or cover a Compound or Product specifically or its manufacture or use in the Territory, solely to research, develop, register, use, make, have
made, promote, sell, offer for sale, distribute, import and export Compounds and Products in the Field in the terminated country or countries or, if this Agreement is terminated in its entirety, in the Territory; 

(3) a non-exclusive, royalty-free, perpetual, irrevocable license, with the right to sublicense and further sublicense, under all
Patents Controlled by Astellas or its Affiliates other than those referenced in subsection (2) above, which Patents would, but for the license granted in this subsection (3), be infringed by the development, use, manufacture, promotion, sale,
offer for sale, distribution, import or export of a Compound or Product in the Field in the applicable country or countries, solely to develop, use, make, have made, promote, sell, offer for sale, distribute, import and export Compounds and Products
in the Field in the terminated country or countries or, if this Agreement is terminated in its entirety, in the Territory; and 

(4) take such other actions and execute such other instruments, assignments and documents as may be necessary to effect the
transfers of rights as set forth in subsections (1), (2) and (3) above. 
 (c) Surviving Terms. Expiration or
termination of this Agreement shall not relieve the parties of any obligation accruing prior to such expiration or termination. Without limiting the foregoing, the obligations and rights of the parties under Sections 6.4 (for the period
described therein), 7.1, 8.3, 8.4, 10.3, 10.4 and 10.5 and Articles 1, 9, 11 and 12 shall survive expiration or termination of this Agreement. 
 (d) Return of Confidential Information. Within [...***...] days following the expiration or termination of this Agreement, each party shall deliver to the other party or destroy any and all
Confidential Information of the other party in its possession, as per instruction by the party which owns such Confidential Information. Notwithstanding the foregoing, in case that Astellas grants to Vical right and license pursuant to
Section 10.3(b), the party, which is entitled to develop, manufacture and commercialize the Product after expiration or termination of this Agreement, shall not be required to make delivery or destruction pursuant to this Section 10.3(d).

 10.4 Exercise of Right to Terminate. The use by either party hereto of a termination right provided for under this
Agreement shall not give rise to the payment of damages or any other form of compensation or relief to the other party with respect thereto. 
 10.5 Damages; Relief. Subject to Section 10.4 above, termination of this Agreement shall not preclude either party from claiming any other damages, compensation or relief that it may be
entitled to upon such termination. 
 10.6 Rights in Bankruptcy. All rights and licenses granted under or pursuant to
this Agreement by a party are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined under

  

***Confidential Treatment Requested 

  
 33 

 
Section 101 of the U.S. Bankruptcy Code. The parties agree that a party, as licensee of such rights under this Agreement, will retain and may fully exercise all of its rights and elections
under the U.S. Bankruptcy Code. The parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against the licensing party under the U.S. Bankruptcy Code, the licensee will be entitled to a complete duplicate of
(or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and same, if not already in its possession, will be promptly delivered to it (a) upon any such commencement of a
bankruptcy proceeding upon its written request therefor, unless the licensing party elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under subsection (a) above, following the rejection of
this Agreement by or on behalf of the licensing party upon written request therefor by the licensee. 
  

	11.	INDEMNIFICATION 

 11.1 Indemnification by Vical. Vical hereby agrees to save, defend and hold Astellas and its Affiliates and its and their respective directors, officers, employees and agents (each, a
“Astellas Indemnitee”) harmless from and against any and all claims, suits, actions, demands, liabilities, expenses and/or loss, including reasonable legal expense and attorneys’ fees (collectively,
“Losses”), to which any Astellas Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Losses arise directly or indirectly out of (a) the gross
negligence or willful misconduct of any Vical Indemnitee with respect to any obligations or activities contemplated by this Agreement, or (b) the breach by Vical of any warranty, representation, covenant or agreement made by Vical in this
Agreement; except, in each case, to the extent such Losses result from the gross negligence or willful misconduct of any Astellas Indemnitee or the breach by Astellas of any warranty, representation, covenant or agreement made by Astellas in this
Agreement. 
 11.2 Indemnification by Astellas. Astellas hereby agrees to save, defend and hold Vical and its Affiliates
and its and their respective directors, officers, employees and agents (each, a “Vical Indemnitee”) harmless from and against any and all Losses to which any Vical Indemnitee may become subject as a result of any claim,
demand, action or other proceeding by any Third Party to the extent such Losses arise directly or indirectly out of: (a) the development, manufacture, use, handling, storage, sale or other disposition of any Product in the Territory by Astellas
or any of its Sublicensees, (b) the gross negligence or willful misconduct of any Astellas Indemnitee with respect to any obligations or activities contemplated by this Agreement, or (c) the breach by Astellas of any warranty,
representation, covenant or agreement made by Astellas in this Agreement; except, in each case, to the extent such Losses result from the gross negligence or willful misconduct of any Vical Indemnitee or the breach by Vical of any warranty,
representation, covenant or agreement made by Vical in this Agreement. 
 11.3 Control of Defense. Any person entitled to
indemnification under this Article 11 shall give notice to the indemnifying party of any Losses that may be subject to indemnification, promptly after learning of such Losses, and the indemnifying party shall assume the defense of such Losses
with counsel reasonably satisfactory to the indemnified party. If such defense is assumed by the indemnifying party with counsel so selected, the indemnifying party will not be subject to any liability for any settlement of such Losses made by the
indemnified party without its consent (but such consent will not be unreasonably withheld or delayed), and will not be 

  
 34 

 
obligated to pay the fees and expenses of any separate counsel retained by the indemnified party with respect to such Losses. 

11.4 Insurance. Each party shall, at its own expense, procure and maintain during the Term and for a period of three
(3) years thereafter, insurance policy/policies, including product liability insurance, adequate to cover its obligations hereunder and which are consistent with normal business practices of prudent companies similarly situated. Such insurance
shall not be construed to create a limit of a party’s liability with respect to its obligations hereunder including the indemnification obligations under this Article 11. 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 self-insurance which could
materially adversely affect the rights of such other party hereunder. 
  

	12.	GENERAL PROVISIONS 

 12.1 Standstill Agreement. For a period of [...***...] ([...***...]) years following the Effective Date (the “Standstill Period”), neither Astellas
nor any of Astellas’ Representatives (as defined below) will, in any manner, directly or indirectly: 
 (a)
make, effect, initiate, directly participate in or cause (i) any acquisition of beneficial ownership of any securities of Vical or any securities of any subsidiary or other Affiliate of Vical, if, after such acquisition, Astellas would
beneficially own more than [...***...] percent ([...***...]%) of the outstanding common stock of Vical, (ii) any acquisition of any assets of Vical or any assets of any subsidiary or other Affiliate of Vical, (iii) any tender
offer, exchange offer, merger, business combination, recapitalization, restructuring, liquidation, dissolution or extraordinary transaction involving Vical or any subsidiary or other Affiliate of Vical, or involving any securities or assets of Vical
or any securities or assets of any subsidiary or other affiliate of Vical, or (iv) any “solicitation” of “proxies” (as those terms are used in the proxy rules of the Securities and Exchange Commission) or consents with
respect to any securities of Vical provided that nothing in this Section 12.1 shall preclude any activities of Astellas or its Representatives with respect to the grant by Vical or any Affiliate of Vical of any license, or the supply by Vical
or any subsidiary or other Affiliate of Vical of any products, in each case to Astellas or any of its Affiliates as contemplated by this Agreement; 
 (b) form, join or participate in a group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) with respect to the beneficial ownership of any securities
of Vical; 
 (c) act, alone or in concert with others, to seek to control the management, board of directors or policies
of Vical; 
 (d) take any action that might require Vical to make a public announcement regarding any of the types of
matters set forth in Section 12.1(a); 
 (e) agree or offer to take, or encourage or propose (publicly or otherwise)
the taking of, any action referred to in Section 12.1(a), (b), (c) or (d); 

  

***Confidential Treatment Requested 

  
 35 

 (f) assist, induce or encourage any Third Party to take any action of the type
referred to in Section 12.1(a), (b), (c), (d) or (e); 
 (g) enter into any discussions, negotiations,
arrangement or agreement with any Third Party relating to any of the foregoing; or 
 (h) request or propose that Vical
or any of Vical’s Representatives amend, waive or consider the amendment or waiver of any provision set forth in this Section 12.1. 
 For purposes of this Agreement, a party’s “Representatives” will be deemed to include each person or entity that is or becomes (i) an Affiliate of such party, or
(ii) an officer, director, employee, partner, attorney, advisor, accountant, agent or representative of such party or of any of such party’s Affiliates, providing such person is acting on behalf of such party. 

Notwithstanding the foregoing, Section 12.1 shall no longer apply (i) during a period commencing with Vical’s announcement
in a filing with the Securities and Exchange Commission or a press release that (a) it is seeking purchaser for itself or (b) is otherwise exploring strategic options in this regard, and ending with Vical’s announcement in a filing
with the Securities and Exchange Commission or a press release that is terminating such search or exploration; (ii) during the period beginning with the commencement by a Third Party of a publicly-announced tender or exchange offer for more
than [...***...] percent ([...***...]%) of voting power of the outstanding voting securities of Vical, and ending with the termination by such Third Party of such tender or exchange offer; or (iii) if Vical announces in a
filing with the Securities and Exchange Commission or a press release a transaction, or an intention to effect any transaction, which would result in (a) the sale by Vical or one or more Affiliate(s) of assets representing [...***...]
percent ([...***...]%) or more of the consolidated assets of Vical; or (b) the common shareholders of Vical immediately prior to such transaction owning less than [...***...] percent ([...***...]%) of the outstanding common
stock of the acquiring entity or, in case of a merger transaction, the surviving corporation (or, if the surviving corporation is an Affiliate of a parent company, the parent company); provide that, in the case of clause (ii) Astellas has not
directly or indirectly taken any action prohibited under this Section 12.1. 
 The expiration of the Standstill Period will
not terminate or otherwise affect any of the other provisions of this Agreement. 
 12.2 Governing Law. This Agreement
shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding its conflicts of laws principles with the exception of sections 5-1401 and 5-1402 of New York General Obligations Law. 

12.3 Dispute Resolution. 
 (a) Objective. The parties recognize that disputes as to matters arising under or relating to this Agreement or either party’s rights and/or obligations hereunder may arise from time to time.
It is the objective of the parties to establish procedures to facilitate the resolution of such disputes in an expedient manner by mutual cooperation and without resort to litigation. To 

  

***Confidential Treatment Requested 

  
 36 

 
accomplish this objective, the parties agree to follow the procedures set forth in this Section 12.3 to resolve any such dispute if and when it arises. 

(b) Resolution by Executives. Except as otherwise provided in Section 2.1, if an unresolved dispute as to matters arising
under or relating to this Agreement or either party’s rights and/or obligations hereunder arises, either party may refer such dispute to the Executives, who shall meet in person or by telephone within ten (10) days after such referral to
attempt in good faith to resolve such dispute. If such matter cannot be resolved by discussion of the Executives within ten (10) days following such meeting (as may be extended by mutual written agreement), such dispute shall be resolved in
accordance with Section 12.3(c). For avoidance of doubt, any disputes, controversies or differences arising from the JSC pursuant to Article 2 shall be resolved solely in accordance with Section 2.1. 

(c) Arbitration. 
 (i) If the parties do not resolve a dispute as provided in Section 12.3(b), and a party wishes to pursue the matter, each such dispute that is not an “Excluded Claim” shall be
resolved by binding arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC”) as then in effect (the “ICC Rules”), and judgment on the arbitration award
may be entered in any court having jurisdiction thereof. The decision rendered in any such arbitration will be final and not appealable. If either party intends to commence binding arbitration of such dispute, such party will provide written notice
to the other party informing the other party of such intention and the issues to be resolved. Within thirty (30) days after the receipt of such notice, the other party may by written notice to the party initiating binding arbitration, add
additional issues to be resolved. 
 (ii) The arbitration shall be conducted by a panel of three (3) arbitrators
experienced in the pharmaceutical business, none of whom shall be a current or former employee or director, or a then-current stockholder, of either party, their respective Affiliates or any Sublicensee. Within thirty (30) days after receipt of
the original notice of binding arbitration, each party shall select one person to act as arbitrator and the two party-selected arbitrators shall select a third arbitrator within ten (10) days of their appointment. If the arbitrators selected by
the parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be appointed by the ICC in accordance with the ICC Rules. The place of arbitration shall be New York, New York, and all proceedings and communications
shall be in English. 
 (iii) It is the intention of the parties that discovery, although permitted as described herein,
will be limited except in exceptional circumstances. The arbitrators will permit such limited discovery necessary for an understanding of any legitimate issue raised in the arbitration, including the production of documents. No later than thirty
(30) days after selection of the arbitrators, the parties and their representatives shall hold a preliminary meeting with the arbitrators, to mutually agree upon and thereafter follow procedures seeking to assure that the arbitration will be
concluded within six (6) months from such meeting. Failing any such mutual agreement, the arbitrators will design and the parties shall follow procedures to such effect. 

  
 37 

 (iv) 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 arbitrators shall have no authority to award punitive or any other non-compensatory damages. The arbitrators shall have the power to order that all or part of the legal or other
costs incurred by a party in connection with the arbitration be paid by the other party. Subject to the preceding sentence, each party shall bear an equal share of the arbitrators’ and any administrative fees of arbitration. 

(v) Except to the extent necessary to confirm or enforce an award or as may be required by applicable law, neither a party nor an
arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based
on the dispute, controversy or claim would be barred by the applicable New York statute of limitations. 
 (vi) As used
in this Section, the term “Excluded Claim” shall mean a dispute, controversy or claim that concerns (A) the validity, enforceability or infringement of a patent, trademark, copyright or regulatory data exclusivity; or
(B) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. 
 12.4 Entire Agreement;
Modification. This Agreement, including the Exhibits hereto, is both a final expression of the parties’ agreement and a complete and exclusive statement with respect to all of its terms. Except for the U.S. Agreement, the Services Agreement
and the separate letter agreement between the parties, this Agreement supersedes all prior and contemporaneous agreements and communications, whether oral, written or otherwise, concerning any and all matters contained herein and therein, including
the Confidentiality Agreement. This Agreement may only be modified or supplemented in a writing expressly stated for such purpose and signed by the parties to this Agreement. 
 12.5 Relationship Between the Parties. The parties’ relationship, as established by this Agreement, is solely that of independent contractors. This Agreement does not create any partnership,
joint venture or similar business relationship between the parties. Neither party is a legal representative of the other party, and neither party can assume or create any obligation, representation, warranty or guarantee, express or implied, on
behalf of the other party for any purpose whatsoever. 
 12.6 Non-Waiver. The failure of a party to insist upon strict
performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any
other instance. Any waiver by a party of a particular provision or right shall be in writing, shall be as to a particular matter and, if applicable, for a particular period of time and shall be signed by such party. 

12.7 Assignment. Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be
assigned or otherwise transferred by either party 

  
 38 

 
without the prior written consent of the other party (which consent shall not be unreasonably withheld); provided, however, that either party may assign or otherwise transfer this Agreement and
its rights and obligations hereunder without the other party’s consent: 
 (a) in connection with the transfer or
sale of all or substantially all of the business or assets of such party relating to products for control or prevention of CMV infection to a Third Party, whether by merger, sale of stock, sale of assets or otherwise (a
“Sale”), provided that in the event of a Sale (whether this Agreement is actually assigned or is assumed by the acquiring party by operation of law (e.g., in the context of a reverse triangular merger)), intellectual
property rights of the acquiring party to such transaction (if other than one of the parties to this Agreement) shall not be included in the technology licensed hereunder; or 
 (b) to an Affiliate, provided that the assigning party shall remain liable and responsible to the non-assigning party hereto for the performance and observance of all such duties and obligations by
such Affiliate. 
 The rights and obligations of the parties under this Agreement shall be binding upon and inure to the benefit of the
successors and permitted assigns of the parties. Any assignment not in accordance with this Agreement shall be void. 
 12.8
No Third Party Beneficiaries. This Agreement is neither expressly nor impliedly made for the benefit of any party other than those executing it, except as otherwise provided in this Agreement with respect to Astellas Indemnitees under
Section 11.1 and Vical Indemnitees under Section 11.2. 
 12.9 Severability. If, for any reason, any part of
this Agreement is adjudicated invalid, unenforceable or illegal by a court of competent jurisdiction, such adjudication shall not affect or impair, in whole or in part, the validity, enforceability or legality of any remaining portions of this
Agreement. All remaining portions shall remain in full force and effect as if the original Agreement had been executed without the invalidated, unenforceable or illegal part. 
 12.10 Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or
otherwise available under law. 
 12.11 Notices. Any notice to be given under this Agreement must be in writing and
delivered either in person, by any method of mail (postage prepaid) requiring return receipt, or by overnight courier or facsimile or electronic mail (email) transmission confirmed thereafter by any of the foregoing, to the party to be notified at
its address(es) given below, or at any address such party has previously designated by prior written notice to the other. Notice shall be deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt;
(b) if mailed, five days after the date of postmark; or (c) if delivered by overnight courier, the next business day the overnight courier regularly makes deliveries. 

  
 39 

 If to Astellas, notices must be addressed to: 

Astellas Pharma Inc. 
 3-11, Nihonbashi-Honcho 2-chome 
 Chuo-Ku, Tokyo 103-8411 

Japan 

Attention: Vice President, Legal 
 Facsimile: [...***...] 
 With a copy to: 

Astellas Pharma Inc. 
 3-11, Nihonbashi-Honcho 2-chome 
 Chuo-Ku, Tokyo 103-8411 

Japan 

Attention: Vice President, Licensing and Alliances 
 Facsimile: [...***...] 
 If to Vical, notices must be addressed to:

 Vical Incorporated 
 10390 Pacific Center Court 
 San Diego, California 92121 

USA 

Attention: Business Development 
 Facsimile: (858) 646-1150 
 Email: licensing@vical.com 

With a copy to: 
 Cooley LLP 
 4401 Eastgate Mall 

San Diego, California 92121 
 USA 
 Attention: [...***...] 

Telephone: (858) 550-6000 
 Facsimile: (858) 550-6420 
 Email: [...***...] 

12.12 Force Majeure. Except for the obligation to make payment when due, each party shall be excused from liability for the failure or delay in
performance of any obligation under this Agreement by reason of any event beyond such party’s reasonable control including but not limited to Acts of God, fire, flood, explosion, earthquake, or other natural forces, war, civil unrest, accident,
destruction or other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, any strike or labor disturbance, or any other event 

  

***Confidential Treatment Requested 

  
 40 

 
similar to those enumerated above. Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the
party has not caused such event(s) to occur. Notice of a party’s failure or delay in performance due to force majeure must be given to the other party within ten (10) days after its occurrence. All delivery dates under this Agreement that
have been affected by force majeure shall be tolled for the duration of such force majeure. In no event shall any party be required to prevent or settle any labor disturbance or dispute. 

12.13 Interpretation. 
 (a) Captions & Headings. The captions and headings of clauses contained in this Agreement preceding the text of the articles, sections, subsections and paragraphs hereof are inserted
solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction. 
 (b) Interpretation. All references in this Agreement to the word “including” shall be deemed to be followed by the phrase “without limitation” or like expression. All references
in this Agreement to the singular shall include the plural where applicable, and all references to gender shall include both genders and the neuter. 
 (c) Articles, Sections & Subsections. Unless otherwise specified, references in this Agreement to any article shall include all sections, subsections, and paragraphs in such article;
references in this Agreement to any section shall include all subsections and paragraphs in such sections; and references in this Agreement to any subsection shall include all paragraphs in such subsection. 

(d) Days. All references to days in this Agreement shall mean calendar days, unless otherwise specified. 

(e) Ambiguities. Ambiguities and uncertainties in this Agreement, if any, shall not be interpreted against either party,
irrespective of which party may be deemed to have caused the ambiguity or uncertainty to exist. 
 (f) English Language.
This Agreement has been prepared in the English language and the English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and all written, electronic, oral or other communications
between the parties regarding this Agreement shall be in the English language. 
 12.14 Counterparts. This Agreement may
be executed in two or more counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one instrument. Signatures provided by facsimile transmission or in AdobeTM Portable
Document Format (PDF) sent by electronic mail shall be deemed to be original signatures. 
 12.15 HSR Filing. Each of
Vical and Astellas agrees to prepare and make appropriate filings under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1976, as amended (the “HSR Act”) and any analogous foreign laws and regulations, relating to this
Agreement and the 

  
 41 

 
transactions contemplated hereby as soon as reasonably practicable, but in any event within ten (10) days after the date of execution of this Agreement (the “HSR Filing
Date”). The parties agree to cooperate in the antitrust clearance process and to furnish promptly to the Federal Trade Commission, the Antitrust Division of the Department of Justice and any other agency or authority, any information
reasonably requested by them in connection with such filings. Other than the provisions of this Section 12.15, the rights and obligations of the parties under this Agreement shall not become effective until the waiting period provided by the
HSR Act shall have terminated or expired without any action by any governmental agency or challenge to the transaction (the date of such termination or expiration shall be the “Effective Date” of this Agreement). Upon the
occurrence of the Effective Date, all provisions of this Agreement shall become effective automatically without the need for further action by the parties. In the event that antitrust clearance from the Federal Trade Commission and Antitrust
Division of the Department of Justice is not obtained within ninety (90) days after the date of execution of this Agreement (or such later date as agreed in writing by the parties), this Agreement may be terminated by either party. 

[Remainder of this page intentionally left blank.] 

  
 42 

 IN WITNESS WHEREOF, the parties hereto
have duly executed this Ex-U.S. LICENSE AGREEMENT as of the date set forth below. 
  

									
	VICAL INCORPORATED	 		 	ASTELLAS PHARMA INC.
					
	By:	 	  
	 		 	By:	 	  

	Name: Vijay B. Samant	 		 	Name: Yoshihiko Hatanaka
	Title: President and CEO	 		 	Title: President and CEO
	Date: July     , 2011	 		 	Date: July     , 2011

 SIGNATURE PAGE TO U.S. LICENSE
AGREEMENT 

 EXHIBIT A 

Vical Patents in the Territory 
 Vical Primary Patents 
  

	 	1.	[...***...] 

  

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

  

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

  

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

  

	 	2.	[...***...] 

  

	 	3.	[...***...] 

  

	 	4.	[...***...] 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	5.	[...***...] 

  

***Confidential Treatment Requested 

  
 A-1

 Vical Patents 
  

	 	1.	[...***...] 

  

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

  

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

  

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

  

	 	2.	[...***...] 

  

	 	3.	[...***...] 

  

	 	4.	[...***...] 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	5.	[...***...] 

  

	 	6.	[...***...] 

  

	 	7.	[...***...] 

  

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

  

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

  

***Confidential Treatment Requested 

  
 A-2

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	8.	[...***...] 

  

***Confidential Treatment Requested 

  
 A-3Supply and Services Agreement

 Exhibit 10.3 
 *** Text Omitted and Filed Separately 
 Pursuant to a Confidential Treatment Request

 under 17 C.F.R. §§ 200.80(b)(4) and 240.24b-2(b)(1) 

SUPPLY AND SERVICES AGREEMENT 
 THIS SUPPLY AND SERVICES AGREEMENT (the “Agreement”) is entered into as of the Effective Date (as
defined below) by and between VICAL INCORPORATED, a Delaware corporation (“Vical”), having an address of 10390 Pacific Center Court, San Diego, California, 92121, USA, and
ASTELLAS PHARMA INC., a company organized under the laws of Japan (“Astellas”), having an address of 3-11, Nihonbashi-Honcho 2-Chome, Chuo-Ku, Tokyo 103-8411, Japan.

 RECITALS 
 WHEREAS, Vical has developed expertise and owns or controls proprietary rights related to Compounds and Products in the Field (each as defined below); 

WHEREAS, Astellas is engaged in the research, development and commercialization of pharmaceutical products;

 WHEREAS, Astellas and Vical are entering into agreements of even date herewith granting Astellas
exclusive rights to develop and commercialize Products in the Field (the “License Agreements”); and 

WHEREAS, Astellas wishes to engage Vical to perform certain development and manufacturing services with respect to
Compounds and Products on the terms and conditions set forth herein. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1.
DEFINITIONS 
 1.1 “Affiliate” shall mean, with respect to a particular party, a
person, corporation, partnership, or other entity that controls, is controlled by or is under common control with such party. For the purposes of this definition, the word “control” (including, with correlative meaning, the terms
“controlled by” or “under the common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether
by the ownership of more than fifty percent (50%) of the voting stock of such entity, or by contract or otherwise. 

1.2 “Applicable Laws” shall mean (a) applicable U.S. laws, rules and regulations, (b) if requested by
Astellas, applicable European and Japanese laws, rules and regulations, and (c) such other applicable laws, rules and regulations as agreed in writing by the parties (such agreement not to be unreasonably withheld by Vical); provided, that, the
laws, rules and regulations described in (b) and (c) shall be only be included in Applicable Laws if and to the extent Astellas provides guidance to Vical regarding such laws, rules and regulations. 

 1.3 “Astellas Indemnitee” shall have the meaning provided in
Section 12.1. 
 1.4 “Calendar Quarter” shall mean each respective period of three consecutive
months ending on March 31, June 30, September 30 and December 31. 
 1.5 “Calendar
Year” shall mean each respective period of twelve (12) consecutive months beginning on January 1. 
 1.6
“Certificate of Analysis” shall have the meaning provided in Section 6.2(b). 
 1.7
“cGMP” shall mean those current Good Manufacturing Practice regulations relating to the production of pharmaceutical products for human use in effect at the time in question for the Manufacture of a Product in the country or
jurisdiction in which the Product is Manufactured and certified by the relevant Regulatory Authority in such country including, if applicable, the Code of Federal Regulations, Part 21, Sections 210 and 211 and such other sections thereof as are
designated by the title “Current Good Manufacturing Practices” and promulgated under the United States Federal Food, Drug and Cosmetic Act, as are in effect from time to time. 

1.8 “CMC” shall mean chemistry, manufacturing and controls. 

1.9 “CMV” shall mean cytomegalovirus. 
 1.10 “Commercial Products” shall have the meaning set forth in Section 3.1. 
 1.11 “Commercial Supply Agreement” shall have the meaning provided in Section 3.1. 
 1.12 “Commercially Reasonable Efforts” shall mean that level of efforts and resources consistent with commercially reasonable practices of a company in the pharmaceutical industry
with respect to the research, development or supply of a pharmaceutical product at a similar stage of research, development or commercialization, taking into account relevant factors including, without limitation, measures of patent coverage,
relative safety and efficacy, product profile, the competitiveness of the marketplace, the proprietary position of such product, the regulatory structure involved, the market potential of such product and other relevant factors, including
comparative technical, legal, scientific and/or medical factors, all as measured by the facts and circumstances in effect at the time the carrying out of such obligations is due. 

1.13 “Compound” shall mean [...***...] plasmid that encodes [...***...] of glycoprotein B and/or
phosphoprotein 65 [...***...]. 
 1.14 “Confidential Information” shall mean all Information and
other proprietary scientific marketing, financial or commercial information or data, which is generated by or on behalf of a party or its Affiliates or which one party or any of its Affiliates has furnished or otherwise made available to the other
party or its Affiliates, whether made available orally, in writing, or in electronic form. Confidential Information shall include all such information 

  

***Confidential Treatment Requested 

  
 2. 

 
provided or made available pursuant to the Confidentiality Agreement. All Vical Technology (including, without limitation, all Vical Manufacturing Information) shall be Confidential Information
of Vical. All Confidential Information shall be subject to the Article 10. 
 1.15 “Confidentiality
Agreement” shall mean that certain Confidentiality Agreement [...***...]. 
 1.16
“Control” shall mean, with respect to any Information, Patent or other intellectual property right, possession by a party of the ability (whether by ownership, license or otherwise, but without taking into account any rights
granted by one party to the other party under the terms of this Agreement) to grant access, a right to use, a license or a sublicense (as applicable) to such Information, Patent or other intellectual property right without violating the terms of any
agreement or other arrangement with any Third Party. 
 1.17 “Cost of Goods” shall have the meaning
provided in Section 5.2(b). 
 1.18 “Development Expenses” shall mean those costs and expenses
incurred by Vical or for its account after the Effective Date in performing the activities described in Sections 2.1 and 2.2 of this Agreement, including, in each case, as applicable, (a) FTE costs at the FTE Rate, (b) the Transfer Price
for Products used in performing such activities, including Products used for analytical, release and stability testing, and (c) costs and expenses paid or payable by Vical or for its account to a Third Party with respect to such activities.

 1.19 “Development Plan” shall mean the annual plan for preclinical and clinical development of Products in
the Field, including the budget for such activities to be performed by Vical, and any amendment or modification to such plan, which plan (other than such plan agreed as of the Effective Date) is drafted by the JDC and approved by the JSC under the
License Agreements. 
 1.20 “Effective Date” shall mean the Effective Date of the License Agreements.

 1.21 “EMA” shall mean the European Medicines Agency or any successor agency thereto having the
administrative authority to regulate the marketing of human pharmaceutical products or biological therapeutic products in the European Union. 
 1.22 “Excluded Claim” shall have the meaning provided in Section 13.2(c)(vi). 
 1.23 “Executives” shall have the meaning provided in Section 13.2(b). 
 1.24 “Existing IND” shall mean the existing Investigational New Drug Application (including any amendments thereto) for Product in the Field, as filed by Vical with the FDA
pursuant to 21 C.F.R. §312 and Controlled by Vical on the Effective Date. 
 1.25 “FDA” shall mean
the United States Food and Drug Administration, or any successor agency thereto having the administrative authority to regulate the marketing of human pharmaceutical products or biological therapeutic products in the United States. 

  

***Confidential Treatment Requested 

  
 3. 

 1.26 “Field” shall mean all therapeutic and prophylactic use to
control or prevent CMV infection in (a) Immunocompromised Patients, including HSCT Recipients and SOT Recipients, and (b) human transplant donors, but excluding, in each case, any therapeutic or prophylactic use to control or prevent CMV
infection other than as expressly described in clauses (a) and (b). 
 1.27 “First Commercial Sale”
shall mean, with respect to a Product, the first sale for end use to a Third Party in a country or jurisdiction after the applicable Regulatory Authority has granted Regulatory Approval in such country or jurisdiction. 

1.28 “Forecast” shall mean a written [...***...] ([...***...])-month rolling quarterly forecast of
estimated orders for Compounds and Non-Commercial Products, which shall include estimated orders for Compounds and Non-Commercial Products by Astellas and its Sublicensees, as well as Compounds and Non-Commercial Products necessary for development
and regulatory work to be performed pursuant to Section 2.1 or 2.2 and other activities agreed in writing by the parties. 

1.29 “FTE” shall mean the equivalent of the work time of a full-time employee or contractor of Vical or its
Affiliate for a twelve (12) month period [(...***...)] based on [...***...] ([...***...]) hours worked per twelve (12) month period. 
 1.30 “FTE Rate” shall mean the rate per FTE per twelve (12) month period, which rate shall be equal to [...***...], as such rate may be adjusted by Vical annually,
beginning after the first anniversary of the Effective Date, to correspond with increases in the Consumer Price Index of the United States Department of Labor for San Diego County, California. 

1.31 “HSCT” shall mean transplantation of hematopoietic stem cells, including peripheral blood stem cells, cord
blood stem cells and bone marrow. 
 1.32 “HSCT Recipient” shall mean a human recipient in a HSCT.

 1.33 “HSCT Study” shall mean a Phase 3 Clinical Trial of a Product for use in HSCT Recipients in the
Field. 
 1.34 “ICC” shall have the meaning set forth in Section 13.2(c)(i). 

1.35 “ICC Rules” shall have the meaning set forth in Section 13.2(c)(i). 

1.36 “Immunocompromised Patients” shall mean human patients whose immune system is not functioning normally
because of an immunodeficiency disorder or other disease, or as the result of the administration of immunosuppressive drugs or other drugs that may indirectly cause a reduction of the immune system function. For the avoidance of doubt, elderly
patients and pregnant women shall not be deemed Immunocompromised Patients solely because such patients are elderly or pregnant, respectively. 
 1.37 “Information” shall mean all tangible and intangible (a) techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods,
protocols, processes, 

  

***Confidential Treatment Requested 

  
 4. 

 
knowledge, know-how, skill, experience, information, data and results (including pharmacological, toxicological, clinical, analytical and quality control data and results), regulatory filings,
marketing reports, software and algorithms and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 
 1.38 “JDC” shall mean the Joint Development Committee formed by the parties under the License Agreements. 
 1.39 “JSC” shall mean the Joint Steering Committee formed by the parties under the License Agreements. 
 1.40 “Label” shall refer to such labels and other written, printed or graphic matter, (a) upon the applicable product or any container or wrapper utilized with a Product, or
(b) accompanying a Product, including, package inserts. “Labeled” or “Labeling” shall have correlative meaning. 
 1.41 “License Agreements” shall have the meaning provided in the Recitals. 
 1.42 “Losses” shall have the meaning provided in Section 12.1. 
 1.43 “Manufacture” shall mean all activities related to the manufacturing of a Compound or Product, or any ingredient thereof, whether in bulk, filled, finished or any other form,
including manufacturing such Compound or Product for clinical or non-clinical use or for commercial sale, Packaging, Labeling, in-process and finished Product testing, release of such Product or any component or ingredient thereof, quality assurance
activities related to manufacturing and release of such Product, ongoing stability tests and regulatory activities related to any of the foregoing. “Manufactured” or “Manufacturing” shall have correlative meaning.

 1.44 “Manufacturing Coordinators” shall mean the manufacturing coordinators designated by the parties
under the License Agreements. 
 1.45 “Manufacturing Plan” shall mean (a) the annual plan for (i) CMC
activities (including, without limitation, formulation, analytical and process development, and scale-up, stability, packaging and shipping studies) with respect to Compound and Product in the Field, including the budget for such activities to be
performed by Vical and (ii) the Manufacture of Compound and Products in the Field, and (b) any amendment or modification to such plan, which plan (other than such plan agreed as of the Effective Date) is drafted by the Manufacturing
Coordinators and approved by the JSC under the License Agreements. 
 1.46 “Manufacturing Process” shall
have the meaning provided in Section 7.2. 
 1.47 “Non-Commercial Products” shall have the meaning
set forth in Section 3.1. 
 1.48 “Objection Notice” shall have the meaning provided in
Section 6.3(b). 

  
 5. 

 1.49 “Package” shall mean all containers, including bottles,
cartons, shipping cases or any other like matter used in packaging or accompanying a Product. “Packaged” or “Packaging” shall have correlative meaning. 

1.50 “Patents” shall mean (a) all patents, including design patents, certificates of invention, applications
for certificates of invention, priority patent filings and patent applications, including provisional patent applications and design patent applications, and (b) any renewal, divisional, continuation, continuation-in-part, or request for
continued examination of any of such patents, certificates of invention and patent applications, and any and all patents or certificates of invention issuing thereon, and any and all reissues, reexaminations, extensions, certificates of correction,
divisions, renewals, substitutions, confirmations, registrations, revalidations, revisions, and additions of or to any of the foregoing. 
 1.51 “Phase 3 Clinical Trial” shall mean a pivotal clinical trial of a Product conducted in human patients in any country designed to ascertain efficacy and safety of such Product
for the purpose of submitting an application for Regulatory Approval to the competent Regulatory Authority, including any human clinical trial that would satisfy the requirements for a Phase 3 study as defined in 21 C.F.R. 312.21(c) or its successor
regulation. 
 1.52 “Product” shall mean any pharmaceutical product that contains one or more
Compound(s), alone or as a Combination Product, including, in each case, all formulations, line extensions and modes of administration, including any pharmaceutical product containing any formulation of one or more Compound(s) with poloxamer
CRL1005, but excluding, in each case, any formulation with the Vaxfectin Adjuvant. “Combination Product” shall mean any pharmaceutical product that contains one or more Compound(s) in combination with one or more other
therapeutically and/or prophylactically active ingredient(s), whether packaged together or included in a prime-boost regimen or in the same therapeutic formulation, including, in each case, all formulations, line extensions and modes of
administration, but excluding, in each case, any formulation with the Vaxfectin Adjuvant. For clarification, poloxamers, other delivery systems and adjuvants shall not be considered therapeutically and/or prophylactically active ingredients.

 1.53 “Quality Agreement” shall have the meaning provided in Section 6.4. 

1.54 “Raw Materials” shall have the meaning provided in Section 7.1. 

1.55 “Regulatory Approval” shall mean any and all approvals (including individual and national price and
reimbursement approvals, as applicable), licenses, registrations, or authorizations of any country, federal, supranational, state or local regulatory agency, department, bureau or other governmental entity that are necessary to market and sell a
Product in the Field in any country or regulatory jurisdiction. 
 1.56 “Regulatory Authority” shall
mean any national, federal, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity whose review and/or approval is necessary for the manufacture, packaging, use, storage,
import, export, distribution, promotion, marketing, offer for sale and sale of a Product in the Field in any country or regulatory jurisdiction. 

  
 6. 

 1.57 “Sale” shall have the meaning provided in Section 13.6(a).

 1.58 “SOT” shall mean solid organ transplantation. 

1.59 “SOT Recipient” shall mean a human recipient in a SOT. 

1.60 “Specifications” shall mean the specifications for a Compound or Product mutually agreed to by the parties
and changes to such specifications made at the request of a Regulatory Authority in the applicable country or jurisdiction or by mutual agreement of the parties from time to time. The Specifications for VCL-6365, VCL-6368 and Product as of the
Effective Date have been agreed by the parties and provided under separate letter agreement. 
 1.61
“Sublicensee” shall mean a Third Party or Affiliate to whom Astellas has granted a sublicense of the right to research, develop, make, have made, use, sell, offer for sale, have sold or import a Product in the Field, beyond the
mere right to purchase such Product. 
 1.62 “Term” shall have the meanings provided in
Section 11.1. 
 1.63 “Third Party” shall mean any entity other than Vical or Astellas or an
Affiliate of Vical or Astellas. 
 1.64 “Transfer Price” shall have the meaning provided in
Section 5.2(a). 
 1.65 “U.S.” shall mean the United States of America and its territories and
possessions, including Puerto Rico and the District of Columbia. 
 1.66 “Vaxfectin
Adjuvant” shall mean Vical’s proprietary cationic lipid-based system known as Vaxfectin®
comprising (±)-N-(3-aminopropyl)-N,N-dimethyl-2,3-bis(syn-9-tetradeceneyloxy)-1-propanaminium bromide (GAP-DMORIE) or derivatives thereof and one or more co-lipid(s), including 1,2-diphytanoyl-sn-glycero-3-phosphoethanolamine (DPyPE), which
is claimed or disclosed in a Patent Controlled by Vical. 
 1.67 “VCL-6365” shall mean Vical’s
proprietary compound known as VCL-6365. 
 1.68 “VCL-6368” shall mean Vical’s proprietary compound
known as VCL-6368. 
 1.69 “Vical Indemnitee” shall have the meaning provided in Section 12.2.

 1.70 “Vical Manufacturing Information” shall have the meaning provided in Section 3.2.

 1.71 “Vical Technology” shall have the meaning provided in each of the License Agreements, as
applicable. 
 2. DEVELOPMENT AND REGULATORY ACTIVITIES 

2.1 Development Activities. Subject to the terms and conditions of this Agreement, Vical shall use Commercially Reasonable Efforts
to perform (a) CMC activities (including, without limitation, formulation, analytical and process development, and scale-up, stability, 

  
 7. 

 
packaging and shipping studies) with respect to Compound or Product in the Field as agreed in writing by the parties and set forth in the Manufacturing Plan, including CMC-related development
with respect to Products in the Field as necessary for obtaining Regulatory Approval for Products in the Field in each of [...***...] and (b) development and other activities, including clinical and non-clinical activities, with respect
to Compound or Product in the Field as agreed in writing by the parties and set forth in the Development Plan. All Information generated by or on behalf of Vical in performing its obligations under this Section 2.1 relating to Compound or
Product, together with all intellectual property rights (including, but not limited to, Patents) therein, shall be owned by Vical and shall be included in the Vical Technology under the applicable License Agreement, as appropriate, and pursuant to
Section 13.8. Each of the Development Plan and the Manufacturing Plan as of the Effective Date for the first year after the Effective Date, and a summary of the Development Plan and the Manufacturing Plan for the second and third years after
the Effective Date, including the number of FTEs to be used by Vical in performing development activities and CMC activities, respectively, relating to Products in the Field during such years, has been agreed to by the parties and provided under
separate letter agreement. 
 2.2 Regulatory Activities. Subject to the terms and conditions of this Agreement, Vical
shall use Commercially Reasonable Efforts to provide Astellas with reasonable assistance as provided in the Development Plan or otherwise agreed in writing by the parties in connection with Astellas’ preparation of such portions of filings with
Regulatory Authorities for Products in the Field that relate to HSCT Study or other clinical study (including any study of a Product for use in SOT Recipients) design or CMC matters, and responses to questions from the applicable Regulatory
Authorities with respect thereto. 
 2.3 Compliance with Laws; Disclosure Regarding Vical’s Efforts. Vical shall
perform its obligations under Sections 2.1 and 2.2 in accordance with Applicable Laws. Vical shall keep Astellas informed as to the progress of the development and regulatory activities performed by Vical pursuant to Sections 2.1 and 2.2, including
by providing updates through the JDC. 
 3. SUPPLY OF PRODUCTS 

3.1 Supply Obligations. During the Term, Vical will Manufacture or have Manufactured and supply or have supplied, and Astellas
shall purchase from Vical, (a) Compounds and Products (including placebo) for CMC, development and regulatory activities with respect to Compounds and Products in the Field (including activities performed by Vical pursuant to Sections 2.1
and 2.2) (such Products, the “Non-Commercial Products”), and (b) following execution of, and subject to, the Commercial Supply Agreement (as defined below), Products for commercial requirements of Astellas and its
Sublicensees, including Products to be marketed, sold, offered for sale or distributed by or on behalf of Astellas or its Sublicensees to customers in the Field pursuant to the License Agreements (such Products, the “Commercial
Products”). Vical and Astellas shall negotiate in good faith and execute an amendment to this Agreement to include terms and conditions applicable to the supply by Vical of Commercial Products in addition to those terms and conditions
applicable to Products contained herein including, but not limited to, (i) the form of Commercial Product to be Manufactured and supplied by Vical (i.e., finished form of Products or bulk form of Products) and (ii) the timing

  

***Confidential Treatment Requested 

  
 8. 

 
and content of forecasts and purchase orders to be submitted by Astellas to Vical for Commercial Products (such agreement, the “Commercial Supply Agreement”). The
Commercial Supply Agreement shall be subject to this Agreement and will be executed by the parties no later than [...***...] for Regulatory Approval of a Product in the Field. In case that Vical entrusts with a Third Party Manufacture of the
Compound, Non-Commercial Product and/or the Commercial Product, such Third Party shall be approved in writing by Astellas prior to commencement of such entrustment, which approval shall not be unreasonably withheld or delayed. 

3.2 Transfer of Vical Manufacturing Information. Starting no later than six (6) months after first Regulatory Approval of the
first Product in the Field or such earlier date as requested in writing by Astellas, the parties shall work together to agree to a plan for transitioning responsibility for the Manufacture and supply of Compounds and Products in the Field to
Astellas or its designated contract manufacturer, and the parties shall use Commercially Reasonable Efforts to implement such plan and complete such transfer as promptly as possible, but [...***...] or such earlier date as agreed in writing by
the parties. Such plan shall provide for the transfer by Vical to Astellas or its designated contract manufacturer of all Vical Manufacturing Information and for Vical to provide reasonable assistance to enable Astellas or its designated contract
manufacturer to Manufacture and supply Compounds and Products in the Field in accordance with the licenses and sublicenses granted under the applicable License Agreements. Such transfer and assistance will be provided at Astellas’ sole expense
according to a budget included in such plan (including, without limitation, any expense to perform any necessary clinical studies required in connection with the transfer of the Manufacture and supply of Compounds and Products in the Field to
Astellas or its designated contract manufacturer). “Vical Manufacturing Information” shall mean all Vical Technology necessary or useful for the Manufacture and supply of Compounds and Products in the Field, including all
necessary quality control Information, plasmid hosts and master cell banks in Vical’s possession. 
 4. FORECASTS
AND PURCHASE ORDERS FOR COMPOUNDS AND NON-COMMERCIAL PRODUCTS 

4.1 Forecasts. Astellas shall provide Vical with an initial Forecast for Compounds and Non-Commercial Products promptly following
finalization of the protocol for the HSCT Study. Thereafter, no later than [...***...] ([...***...]) days prior to each Calendar Quarter (or such other times as agreed by the parties in writing with respect to clinical supply of
Products), Astellas shall provide Vical with Forecasts for Compounds and Non-Commercial Products, with such Forecasts including a breakdown of orders on a study-by-study basis and the type and form of Compounds and Non-Commercial Products required
(i.e., Compounds, formulated bulk Non-Commercial Products and/or finished Non-Commerical Products). Following receipt of a Forecast, Vical shall add to such Forecast amounts of Compounds and Non-Commercial Products necessary for analytical, release
and stability testing, CMC, development and regulatory work to be performed pursuant to Section 2.1 or 2.2 and other activities agreed in writing by the parties (to the extent not already included in the Forecast provided by Astellas), which
amounts of Products shall be automatically deemed included in such Forecast, and Vical shall provide Astellas such updated Forecast. The parties agree that, unless otherwise agreed in writing by the parties, with respect to any Forecast, Astellas
shall order and purchase one hundred percent 

  

***Confidential Treatment Requested 

  
 9. 

 
(100%) of the volume of Compounds and Non-Commercial Products set forth in each Forecast for the first [...***...] ([...***...]) months of such Forecast; provided that, Astellas may
request that Vical supply more than one hundred percent (100%) of the volume of Compounds and Non-Commercial Products set forth in each Forecast for the first [...***...] ([...***...]) months of such Forecast, and Vical shall not be
obligated to Manufacture or supply Astellas with such additional quantities of Compounds and Non-Commercial Products but shall use Commercially Reasonable Efforts to do so. 
 4.2 Purchase Orders. Astellas shall order Compounds and Non-Commercial Products by submitting written purchase orders, in such form as the parties shall agree from time to time, to Vical specifying
the quantities of Compounds and Non-Commercial Products ordered (which shall be consistent with the requirements in Section 4.1), the type and form of Compounds and Non-Commercial Products ordered (i.e., Compounds, formulated bulk
Non-Commercial Products and/or finished Non-Commercial Product), the desired shipment date for such Compounds and Non-Commercial Products and any special shipping instructions. Astellas shall order Compounds and Non-Commercial Products in lots of a
defined number of units/lot pursuant to each purchase order as reasonably specified by Vical. Astellas shall submit each purchase order to Vical at least [...***...] ([...***...]) days in advance of the desired shipment date specified in
such purchase order. Vical shall use Commercially Reasonable Efforts to make each shipment of Compounds and Non-Commercial Products in the quantity and on the shipment date specified for it on Astellas’ purchase order, via the mode(s) of
transportation and to the party and destination specified on such purchase order. Any purchase orders for Compounds and Non-Commercial Products submitted by Astellas to Vical shall reference this Agreement and shall be governed exclusively by the
terms contained herein. The parties hereby agree that, with respect to supply of Compounds and Non-Commercial Products, the terms and conditions of this Agreement shall supersede any term or condition in any order, confirmation or other document
furnished by Astellas or Vical that is in any way inconsistent with these terms and conditions. 
 4.3 Quantity of Orders.
The parties will discuss and agree on the configuration of Compounds and Non-Commercial Products (e.g., in boxes, bottles, etc.) for purposes of Forecasts and purchase orders of Compounds and Non-Commercial Products pursuant to this Article 4.

 5. PAYMENTS 
 5.1 Development Expenses. Astellas shall reimburse Vical for all Development Expenses (excluding the Transfer Price for Compounds and Products included in such Development Expenses to the extent
Astellas has already paid the Transfer Price for such Compound and Products pursuant to Section 5.2) that do not exceed the total budget for such Development Expenses as set forth in the Development Plan or the Manufacturing Plan, as the case
may be (or as otherwise agreed in writing by the parties with respect to activities that are not set forth in the Development Plan or Manufacturing Plan) by more than [...***...] percent ([...***...]%) of the total budget for such
Development Expenses, on an annual basis, unless otherwise approved by the JSC. If Vical reasonably anticipates that actual Development Expenses for a given year will exceed the budget for such Development Expenses as set forth in the Development
Plan, Manufacturing Plan or other budget agreed in writing by the parties by more than [...***...] percent ([...***...]%), the JDC and/or Manufacturing Coordinators, as appropriate, shall promptly prepare and

  

***Confidential Treatment Requested 

  
 10.

 
submit to the JSC proposed changes to the Development Plan, Manufacturing Plan, or other budget, as the case may be, to reflect an appropriate increase in the budget for such Development
Expenses, together with a reasonable explanation, for review and approval by the JSC. The JSC shall promptly, and in any event within [...***...] ([...***...]) days of submission of such changes by the JDC or Manufacturing Coordinators,
review and use good faith efforts to promptly agree to amend the Development Plan, Manufacturing Plan, or such other budget, as the case maybe, to reflect such changes, or keep them as they are (including, if applicable, an agreement that such
amendment shall apply retroactively to actual Development Expenses that exceeded the applicable budget by more than [...***...] percent ([...***...]%) prior to such amendment). The parties agree that, for purposes of expediting such
review and approval, the JSC shall be permitted to review and approve such amendments via email. For Astellas’ due budget control, Vical agrees to submit to Astellas (a) a monthly report of the Development Expenses incurred by Vical for
each calendar month during the Term, within [...***...] ([...***...]) days following the end of such calendar month, and (b) a [...***...] report of the Development Expenses incurred by Vical as compared against the budget for
such Development Expenses for each [...***...] during the Term, within [...***...] ([...***...]) days following the end of such [...***...]. 
 5.2 Supply of Products. 
 (a) Transfer Price. Astellas shall pay
Vical a transfer price for Compounds and Products as follows: (i) for Compounds supplied by Vical under this Agreement to be used (whether by or for Astellas or Vical) in CMC, development and regulatory activities, Cost of Goods for such
Compound; provided, however, that in no event shall such transfer price exceed US$[...***...] per milligram for VCL-6365 and US$[...***...] per milligram for VCL-6368, (ii) for Non-Commercial Products (including placebo) supplied by
Vical under this Agreement, including reference standard and Products for validation runs and analytical, release and stability testing, Cost of Goods for such Non-Commercial Products; provided, however, that in no event shall such transfer price
exceed (A) for finished Non-Commercial Product, US$[...***...] per one vial of the finished Non-Commercial Product containing one dose of five milligrams of Compound per one milliliter of the finished Non-Commercial Product and
(B) for formulated bulk Non-Commercial Product, US$[...***...] per milligram of Compound contained in such formulated bulk Non-Commercial Product; and (iii) for Commercial Products to be supplied by Vical under this Agreement
following execution of the Commercial Supply Agreement, including Products for analytical, release and stability testing, an amount equal to the Cost of Goods for such Commercial Products plus [...***...] percent ([...***...]%);
provided, however, that, if Astellas purchases at least [...***...] vials of Commercial Products (or, if applicable, at least such amount of Compound contained in [...***...] vials of Commercial Products) in a given Calendar Year, then
in no event shall the transfer price for such Commercial Products purchased in such Calendar Year exceed (A) for finished Commercial Product, US$[...***...] per one vial of the finished Commercial Product containing one dose of five
milligrams of Compound per one milliliter of the finished Commercial Product and (B) for formulated bulk Commercial Product, US$[...***...] per milligram of Compound contained in such formulated bulk Commercial Product; provided further,
that, if pursuant to the Commercial Supply Agreement, the parties agree that Vical will Manufacture and supply Compound in addition to or instead of Products for Astellas’ and its Sublicensees commercial purposes under this Agreement, the
transfer price for such Compound shall be an amount equal to Cost of Goods for such Compound plus [...***...] percent ([...***...]%); provided, however, that, if Astellas purchases at least [...***...] vials of Commercial

  

***Confidential Treatment Requested 

  
 11.

 
Products (or, if applicable, at least such amount of Compound contained in [...***...] vials of Commercial Products) in a given Calendar Year, then in no event shall the transfer price for
such Compounds purchased in such Calendar Year exceed US$[...***...] per milligram for VCL-6365 and US$[...***...] per milligram for VCL-6368 (in each case, the “Transfer Price”). 

(b) Cost of Goods. “Cost of Goods” means the actual fully-burdened cost of Compound, Non-Commercial
Product (including placebo) and/or Commercial Product shipped. As used herein, the cost of Compound, Non-Commercial Product (including placebo) and/or Commercial Product means (i) in the case of products, materials (including, but not limited
to, poloxamer CRL1005), reagents and services acquired from Third Parties for use in connection with Manufacturing and/or supplying Compound, Non-Commercial Product and/or Commercial Product, payments made to such Third Parties, and (ii) in the
case of Manufacturing and supply services performed by Vical or its Affiliate, the actual unit costs of Manufacture in bulk form or final Manufacturing (including the costs of any Packaging purchased by Vical, but excluding any costs of Packaging
and Labeling purchased and provided by Astellas pursuant to Section 7.3, if any, and any costs for which Vical is reimbursed pursuant to Section 5.2(c)), as the case may be, plus the variances and other costs specifically provided for
herein. Actual unit costs shall consist of direct material and direct labor costs, plus manufacturing overhead reasonably allocable to such Manufacturing and supply services, of Vical or its Affiliate, in each case in accordance with reasonable cost
accounting methods, consistently applied. Direct material costs shall include the costs incurred in purchasing materials, including sales and excise taxes imposed thereon and customs duty and charges levied by Regulatory Authorities, and all costs
of packaging components. Direct labor shall include all actual FTE costs of employees and contractors engaged in direct Manufacturing or supply activities and direct quality control and quality assurance activities who are directly employed in
Manufacturing and supply services. Manufacturing overhead allocable to Manufacturing and supply services may include indirect labor, facilities’ start-up costs, unsuccessful or low yielding production runs, excess or idle capacity, the costs of
audits, insurance, and Manufacturing and supply administrative and facilities costs, including allocable depreciation and repairs and maintenance of existing capital assets. Such allocations shall be in accordance with reasonable cost accounting
methods, consistently applied, of Vical or its Affiliate. 
 (c) Shipping Materials. Astellas shall reimburse Vical for
all costs incurred by Vical in purchasing, at the request of Astellas, shipping materials (including shipping containers and packaging) for Products and/or Compounds. 
 5.3 Invoices; Method of Payments. 
 (a) Invoices. Vical shall
invoice Astellas for Development Expenses and, if applicable, any costs incurred by Vical in purchasing shipping materials for Compounds and Products, on a monthly basis within [...***...] ([...***...]) days following the end of each
month. Vical shall invoice Astellas for the aggregate Transfer Price of Compounds and Products at the time of shipment of such Compounds and Products. For purposes of this Section, the style and content of the invoice issued by Vical pursuant to
this Section shall be agreed in advance by Vical and Astellas. Vical also agrees to notify Astellas by e-mail of the amount to be invoiced under this Section 5.3(a) for the last month of each Calendar Quarter within [...***...]
([...***...]) business days following the end of such Calendar Quarter on a best estimate basis. 

  

***Confidential Treatment Requested 

  
 12.

 (b) Method of Payments. All payments due hereunder to Vical shall be paid to Vical in
U.S. Dollars not later than [...***...] ([...***...]) days following the date of the applicable invoice, unless, in the case of payment for Compounds and Products, such shipment of Compounds or Products is rejected in accordance with the
provisions of Section 6.3. All payments owed under this Agreement shall be made by wire transfer in immediately available funds to a bank and account designated in writing by Vical, unless otherwise specified in writing by Vical. 

(c) Late Payments. In the event that any payment due under this Agreement is not made when due, the payment shall accrue interest
from the date due at the rate of [...***...] percent ([...***...]%) above the U.S. Prime Rate (as set forth by Bloomberg (Ticker symbol PRIME index)); provided, however, that in no event shall such rate exceed the maximum legal annual
interest rate. The payment of such interest shall not limit Vical from exercising any other rights it may have as a consequence of the lateness of any payment. 
 5.4 Records; Audits. Vical shall keep complete, fair and true books of accounts and records for the purpose of determining the amounts payable to Vical pursuant to this Agreement, including
Development Expenses and Cost of Goods. Such books and records shall be kept for [...***...] ([...***...]) years following the end of the Calendar Quarter to which they pertain. Astellas shall have the right to cause an independent,
certified public accountant, reasonably acceptable to Vical, to audit such records to confirm Development Expenses and Cost of Goods for a period covering not more than the preceding [...***...] ([...***...]) years. Such audits may be
exercised during normal business hours upon reasonable prior written notice to Vical. Prompt adjustments shall be made by the parties to reflect the results of such audit. Astellas shall bear the full cost of such audit unless such audit discloses
an overpayment by Astellas of more than five percent (5%) of the amount of payments due under this Agreement, in which case, Vical shall bear the full cost of such audit and shall promptly remit to Astellas the amount of any overpayment.

 6. DELIVERY; QUALITY ASSURANCE; ACCEPTANCE 

6.1 Delivery Terms. Vical will deliver Compounds and/or Products to Astellas in such quantities and on the delivery dates as are
specified in purchase orders. Deliveries shall be made [...***...] (Incoterms 2010) Vical’s or its Third Party manufacturer’s designated facility. For clarification, Astellas shall be responsible for the costs of shipping materials
for Products as set forth in Section 5.2(c). 
 6.2 Testing; Certificate of Analysis. 

(a) Batch Testing. Vical will perform standard analytical testing of each Manufactured batch of Compounds and/or Products to be
delivered to Astellas to verify that each of them meets the Specifications according to the procedure described in the corresponding documentation and that Compounds and/or Products were Manufactured in accordance with Applicable Laws. 

(b) Certificate of Analysis. Vical shall provide a certificate of analysis (the “Certificate of
Analysis”), and any other documentation necessary for Astellas to release into commerce and sell Products under all Regulatory Approvals, to Astellas with each shipment of 

  

***Confidential Treatment Requested 

  
 13.

 
Compounds and/or Products supplied hereunder. Such Certificate of Analysis shall certify with respect to each shipment and batch (identified by batch number) (i) the quantity of the
shipment, and (ii) that delivered Compounds and/or delivered Products conforms to the Specifications, respectively, as well as any further information required by the relevant Regulatory Authorities that Astellas may have previously notified
Vical is necessary. Astellas shall be under no obligation to accept any shipment of Compounds and/or Products without an accompanying Certificate of Analysis. 
 6.3 Acceptance and Rejection. 
 (a) Rejection. Astellas may reject
any shipment (or portion thereof) of Compounds and/or Products if such shipment fails to conform to any warranty set forth in Section 9.1 of this Agreement by providing to Vical written notice of such rejection and the reasons therefor within
[...***...] ([...***...]) days after delivery of such shipment; otherwise, Astellas shall be deemed to have accepted such shipment of Compounds and/or Products. 
 (b) Dispute Procedure. Astellas’ basis for rejection shall be conclusive unless Vical notifies Astellas in writing, within [...***...] ([...***...]) days of Vical’s receipt of
notice that Astellas is rejecting the Compounds and/or the Products, that Vical disagrees with such basis for rejection (an “Objection Notice”). If Astellas and Vical fail within ten (10) days after delivery of the
Objection Notice to agree as to whether the Compounds and/or the Products are defective, representative samples of the batch of the Compounds in question and/or the Products in question shall be submitted to a mutually-acceptable independent
laboratory or consultant for analysis or review. The results of such evaluation shall be binding upon the parties. The parties shall share equally the cost of such evaluation except that the party that is determined to have been incorrect in its
determination of whether the Compounds and/or the Products should be rejected shall assume the responsibility for, and pay, the costs of any such evaluation and reimburse the other for any amounts previously paid to the independent laboratory or
consultant in connection with that determination. 
 (c) Payment for Rejected Compounds and/or Rejected Products. If any
shipment of Compounds and/or Products is rejected by Astellas, Astellas’ obligation to pay all amounts payable to Vical in respect of the rejected shipment shall be suspended unless and until there is a determination by the independent
laboratory or consultant in support of Vical’s Objection Notice in accordance with Section 6.3(b). If only a portion of a shipment is rejected, Astellas’ duty to pay the amount allocable to the defective portion only shall be
suspended. 
 (d) Remedy for Rejected Compounds and/or Rejected Products. If a shipment or partial shipment is rejected
by Astellas pursuant to the provisions of this Section 6.3 and there is not a determination by the independent laboratory or consultant in support of Vical’s Objection Notice in accordance with Section 6.3(b), Astellas shall return to
Vical at Vical’s request and expense (or, at the election of Vical, destroy at Vical’s expenses and provide evidence of such destruction to Vical) any such rejected Compounds and/or any such rejected Products. Vical shall (i) credit
the original invoice in respect of the rejected Compounds and/or the rejected Products, and (ii) adjust the invoice to Astellas for any Compounds that were not rejected and/or any Products that were not rejected, payment of which is due in
accordance with the terms of the original invoice. The foregoing sentence sets forth the sole and exclusive 

  

***Confidential Treatment Requested 

  
 14.

 
remedy of Astellas for any rejection of Compounds and/or Products pursuant to this Section 6.3 and any breach by Vical of Section 9.1 of this Agreement other than a breach of the
warranty set forth in Section 9.1(a) that cannot be discovered in the course of inspection or testing conducted by Astellas upon receipt of Compounds or Products, as applicable. 

(e) Replacement Compounds and/or Products. During the pendency of any rejection discussions Vical shall use Commercially
Reasonable Efforts to supply Astellas with replacement Compounds and/or replacement Products which Astellas shall purchase on the same terms as the Compounds and/or the Products that are the subject of the rejection discussions. 

6.4 Quality Agreement. Within [...***...] ([...***...]) days from the Effective Date, the parties will enter into an
agreement that details the quality assurance obligations of each party (“Quality Agreement”) with respect to the Manufacture and supply of the Compounds and Non-Commercial Products pursuant to this Agreement.
The Quality Agreement with respect to the Manufacture and supply of the Commercial Products will be executed within [...***...] ([...***...]) days from the date of execution of the Commercial Supply Agreement. 

7. MANUFACTURE OF NON-COMMERCIAL PRODUCTS AND
COMPOUNDS 
 7.1 Raw Materials. Vical shall be responsible for obtaining, and shall store at no cost to
Astellas, any raw materials, components and other ingredients (excluding Packaging and Labeling materials to be provided by Astellas) (“Raw Materials”) required for the Manufacture and supply of Compounds and/or
Non-Commercial Products pursuant to this Agreement, in reasonable quantities consistent with Astellas’ Forecasts and purchase orders. 
 7.2 Manufacture of Compound and Non-Commercial Product; Changes to Specifications or to the Manufacturing Process. Vical will Manufacture Non-Commercial Products in accordance with the
Specifications, cGMPs and Applicable Laws, including, as applicable, any laws, rules, guidelines, regulations, guidance, points to consider documents and standards of the Environmental Protection Agency, the Occupational Safety and Health
Administration and state and local authorities that apply to the Manufacture of Compounds and Non-Commercial Products. The parties shall notify each other within [...***...] ([...***...]) hours of any new instructions or specifications
required by Regulatory Authorities with jurisdiction over the Manufacture, import, export, use or sale of Products in the Field, and the parties shall confer with each other with respect to any response regarding such instruction or specification
and the best means to comply with such requirements. If Vical intends to make any changes to the Specifications, or in the Raw Materials, equipment, process or procedures used to Manufacture, the Compounds and Non-Commercial Products (the
“Manufacturing Process”), (a) which would require an amendment of the Existing IND or (b) which the Manufacturing Coordinators have agreed in writing should be changed only with Astellas’ prior written consent,
Vical shall obtain the prior written consent of Astellas through the Manufacturing Coordinators with respect to any such proposed changes to the Specifications or the Manufacturing Process. Further, Vical shall promptly notify Astellas in writing
through the Manufacturing Coordinators of any and all changes to the Specifications or the Manufacturing Process actually implemented. Any changes to the Specifications or to the Manufacturing Process shall be in compliance with all Regulatory
Approvals for the Product. Astellas shall be responsible for the costs of implementing any changes to the Specifications or to the Manufacturing Process (including any 

  

***Confidential Treatment Requested 

  
 15.

 
capital expenditures), unless such changes were requested by Vical and were not required by applicable laws, rules or regulations, in which case Vical shall be responsible for the costs of
implementing such changes. 
 7.3 Labeling and Packaging. With respect to Compounds and Non-Commercial Products, Astellas
shall provide to Vical or Vical’s designee its instruction for any Labels and Packaging therefor or, if agreed by the parties, Astellas may provide to Vical or Vical’s designee any or all Labels and Packaging for Compounds and
Non-Commercial Products, at Astellas’ sole costs and expenses. All Product Labels and Packaging or trade dress shall comply with applicable laws, rules and regulations. Astellas shall be solely responsible for ensuring the accuracy of all
information contained on all Labels and Packaging for Compounds and Non-Commercial Products and for the compliance of all such Labels and Packaging with applicable laws, rules and regulations. Should Astellas desire or Astellas or Vical be required
pursuant to applicable laws, rules and regulations to make any change in any such Labels or Packaging, Astellas shall be responsible for procuring the updating of all artwork and text associated with such change and providing such changes and, if
the parties have agreed that Astellas will supply such Labels and Packaging, corresponding changed Labels and Packaging to Vical or Vical’s designee. Vical’s obligations to supply Astellas and its Sublicensees with Compounds and
Non-Commercial Products shall be contingent upon Vical’s or Vical’s designee’s timely receipt of Labels and Packaging, or instructions for Labels and Packaging, as appropriate, and other necessary items from Astellas, if applicable.

 7.4 Product Shortfall. Vical shall use Commercially Reasonable Efforts to avoid shortfalls in supply of Compounds
and/or Non-Commercial Products based on the Forecasts provided by Astellas. In the event Vical is unable to supply to Astellas, in whole or in part, Compounds and/or Non-Commercial Products requested for any reason (except to the extent caused by
Astellas), then, in addition to other rights or remedies available, Vical shall promptly notify Astellas, in writing, of such shortage, or potential shortage, or inability to timely supply Compounds and/or Non-Commercial Products and, if possible,
the date when Vical will again be able to supply Compounds and/or Non-Commercial Products. Vical will use Commercially Reasonable Efforts to remedy any shortfall of Compounds and/or Non-Commercial Products as soon as practicable and Vical will
allocate its available production capacity for the production of Compounds and/or Non-Commercial Products in a manner proportional to the utilization of all customers (including Vical) of such capacity in the prior [...***...]
([...***...]) month period. 
 7.5 Maintenance of Inventory. Astellas shall maintain an inventory of Compounds and
Non-Commercial Products at a level sufficient to enable Astellas to meet reasonable demands for Non-Commercial Products in the Field. 
 8.
REGULATORY 
 8.1 Regulatory Compliance. Vical shall comply with all regulatory requirements with
respect to Compounds and Products imposed by Applicable Laws upon Vical as the manufacturer of Compound and Product. Vical shall, on a timely basis, provide Astellas with such information in Vical’s possession as the manufacturer of Compound
and Product as reasonably required by Astellas. For Vical’s compliance with all regulatory requirements mentioned above, if required by the Regulatory Authority directly or through Astellas, Vical

  

***Confidential Treatment Requested 

  
 16.

 
shall, and shall cause its Third Party manufacturer to, allow a Regulatory Authority to conduct inspection of the facilities at which Compound and/or Product are Manufactured. In case that Vical
or its Third Party manufacturer receives request or notice of inspection by a Regulatory Authority of the facilities at which Compound and/or Product are Manufactured, Vical shall promptly so notify Astellas. Upon request by Astellas, Vical shall,
and shall cause its Third Party manufacturer to, permit Astellas’ representative to be present in such inspection by the Regulatory Authority; provided, however that, for clarification, all information made available to Astellas or its
representative during such meeting shall be considered Vical Manufacturing Information. 
 8.2 cGMP Compliance and QA
Audits. Upon written request to Vical, once per Calendar Year, Astellas shall have the right to have representatives visit Vical’s and/or its Third Party manufacturer’s Manufacturing facilities during normal business hours to discuss
any related issues with Vical’s and/or its Third Party manufacturer’s Manufacturing and management personnel and to review and inspect (a) Vical’s and/or its Third Party manufacturer’s Manufacturing and storage facilities,
(b) the quality control procedures, and/or (c) any records and reports pertinent to the Manufacture, disposition or transport of Products as may be necessary to evidence Vical’s and/or its Third Party manufacturer’s compliance
with all applicable laws, rules and regulations relating to the Manufacture of Product, including compliance with cGMP; provided, however, that with respect to for-cause inspections, Astellas shall be permitted to conduct such for-cause inspections
more than once per Calendar Year. Astellas shall have the right to conduct QM/QP inspection for Manufacture at Vical of Products for use in a HSCT Study no later than [...***...] prior to such Manufacture (it being understood that certain
amount of bulk Compound in total quantities thereof that would be used in such Manufacture has been manufactured prior to the Effective Date and provided that this Agreement has been signed with sufficient time to allow inspection within such a
timeframe for finished Non-Commercial Product for such HSCT Study). 
 8.3 Recall of Products. For any Product, in the
event that: (a) any Regulatory Authority issues a request, directive or order that such Product be recalled or retrieved; (b) a court of competent jurisdiction orders that such Product be recalled or retrieved; or (c) Astellas
reasonably determines, after reasonable, good faith discussion with Vical if time permits, that such Product should be recalled or retrieved, Astellas shall promptly notify Vical of such event and shall conduct such activity and take appropriate
corrective actions, and Vical shall provide such assistance to Astellas as is reasonably necessary to carry out such activities. All costs and expenses of such recall and corrective actions shall be the responsibility of Astellas, provided however,
to the extent the recall can be attributed to the negligence or willful misconduct of Vical or Vical’s breach of this Agreement, Vical shall be responsible for such cost and expense to the extent of such negligence, willful misconduct or
breach. For purposes hereof, such cost and expenses shall be limited to reasonable, actual and documented costs incurred by the parties for such recall, withdrawal or correction, and replacement of Products to be recalled. 

8.4 Permits. Vical represents and warrants to Astellas that it has and will maintain during the Term all government permits,
including, health, safety and environmental permits, necessary for the conduct of the actions and procedures that it undertakes pursuant to this Agreement. 

  

***Confidential Treatment Requested 

  
 17.

 8.5 Documentation. Vical shall keep complete, accurate and authentic accounts, notes,
data and records of the work performed by Vical under this Agreement (including all manufacturing master production and control records, batch production and control records, production procedures, testing documentation, and shipping records) and
shall maintain complete and adequate records pertaining to the methods and facilities used for the Manufacture, processing, testing, packing, labeling, holding and distribution of Compounds and Products in accordance with Applicable Laws. Vical
agrees that, in response to any complaint, or in the defense by Astellas of any litigation, hearing, regulatory proceeding or investigation relating to the Products, Vical shall use Commercially Reasonable Effort to make available to Astellas during
normal business hours and upon reasonable prior written notice, such Vical employees and records reasonably necessary to permit the effective response to, defense of, or investigation of such matters, subject to appropriate confidentiality
protections. Except the case that such complaint or the litigation, hearing, regulatory proceeding or investigation relating to the Products is caused due to Vical’s gross negligence, willful misconduct or breach of this Agreement, Astellas
shall reimburse Vical for all reasonable costs and expenses incurred by Vical in connection with the performance of Vical’s obligations under the immediately preceding sentence. 

8.6 Samples. Vical shall retain samples of Compounds and Non-Commercial Products for a period requested by Astellas after
Astellas’ acceptance of such batch, which period shall in no event exceed the longer of [...***...] ([...***...]) years or the minimum period required by applicable law. 
 9. REPRESENTATIONS AND WARRANTIES 
 9.1 Product Warranty. Vical represents and warrants that Compounds and Products delivered hereunder will (a) be Manufactured by Vical in accordance with all applicable Regulatory Approvals,
cGMPs and Applicable Laws, (b) conform to the Specifications at the time of delivery, (c) not be adulterated under Applicable Laws at the time of delivery, and (d) be supplied in accordance with the Quality Agreement. 

9.2 No Debarred or Disqualified Persons. Vical represents and warrants that is not debarred under the United States Federal Food,
Drug and Cosmetic Act or comparable laws in any other country or jurisdiction, and it does not, and will not during the Term, employ or use the services of any person or entity who is debarred, in connection with the performance of activities
pursuant to this Agreement. In the event that Vical becomes aware of the debarment or threatened debarment of any person or entity providing services to Vical which directly or indirectly relate to activities under this Agreement, Astellas shall be
immediately notified in writing. 
 9.3 Mutual Representations and Warranties. Each party represents and warrants to the
other that: (a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof;
(b) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate or
partnership action; and (c) this Agreement is legally binding upon it, enforceable in accordance 

  

***Confidential Treatment Requested 

  
 18.

 
with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or
regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 
 9.4
Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, OR ANY OTHER WRITTEN AGREEMENT BETWEEN THE PARTIES, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND EACH PARTY EXPRESSLY
DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE OR USE, NON-INFRINGEMENT, VALIDITY AND ENFORCEABILITY OF PATENTS, OR THE PROSPECTS OR LIKELIHOOD OF DEVELOPMENT OR COMMERCIAL SUCCESS OF PRODUCTS.

 9.5 Limitation of Liability. NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER; provided however, that this Section 9.5 shall not be construed to limit either party’s indemnification obligations under
Article 12 or its right to obtain recover damages for breach of Article 10. For clarification, payments under Article 5 shall not be considered special, incidental, consequential or punitive damages. 

10. CONFIDENTIALITY 
 10.1 Confidential Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties, the parties agree that, during the Term and continuing
until [...***...] ([...***...]) years after expiration or termination of the later to expire or terminate of the License Agreements, each party (in such capacity, the “receiving party”) shall keep confidential and
shall not publish or otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement or the Confidentiality Agreement any Confidential Information of the other party (in such capacity, the
“disclosing party”). The receiving party may use Confidential Information of the other party only to the extent required to accomplish the purposes of this Agreement. The receiving party will use at least the same standard of
care as it uses to protect proprietary or confidential information of its own (but not less than reasonable care) to ensure that its employees, agents, consultants and other representatives do not disclose or make any unauthorized use of the
Confidential Information of the disclosing party. The receiving party will promptly notify the disclosing party upon discovery of any unauthorized use or disclosure of the Confidential Information of the disclosing party. Without limiting the
foregoing, the parties acknowledge that Information relating to Compound or Product that is generated by or on behalf of Vical in performing its obligations under Section 2.1 of this Agreement includes valuable trade secrets and that it is in
the interests of both parties to protect the confidentiality of such Information; provided, that nothing will limit or prevent Vical from using or disclosing such Information in connection with its discussions and activities outside the scope of the
exclusive licenses granted to Astellas under the License Agreements with respect to Compounds and Products in the Field. 

  

***Confidential Treatment Requested 

  
 19.

 10.2 Treatment of Vical Manufacturing Information. In addition to the other
provisions herein, both parties recognize that maintaining the confidentiality and trade secret nature of the Vical Manufacturing Information requires a higher level of vigilance than other Confidential Information, and Astellas agrees to:
(a) maintain in confidence Vical Manufacturing Information with the same degree of care that Astellas uses to protect its own like information (but no less than reasonable care); (b) strictly limit access to and use of Vical Manufacturing
Information to employees, agents, consultants and other representatives of Astellas with a need to know such information; and (c) use Vical Manufacturing Information only for Manufacturing and supplying Products in the Field. Astellas shall
ensure that any person having access to the Vical Manufacturing Information will be made aware of its highly confidential nature and will agree to be bound by confidentiality terms no less stringent than those in this Agreement. The obligations
under this Section 10.2 shall survive and continue in effect for a period of [...***...] ([...***...]) years after expiration or termination of the later to expire or terminate of the License Agreements; provided, however, that such
obligations with respect to trade secrets included in the Confidential Information and identified and maintained as trade secrets by Vical will continue for so long as such trade secrets retain their legal status as trade secrets. Each of Vical and
Astellas acknowledge and agree that Sections 10.3 and 10.4 shall apply to Vical Manufacturing Information; provided, that (i) Confidential Information of Vical disclosed to any contract manufacturer used by either party pursuant to this
Agreement; and (ii) any Confidential Information of Vical received from such contract manufacturer, shall not cause such Confidential Information to fall within any exceptions to the definition of Confidential Information set forth in
Section 10.3 or otherwise cease to be Confidential Information of Vical for any reason. 
 10.3 Exceptions.
Confidential Information shall not include any information which the receiving party can demonstrate by competent evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally
known or available; (b) is known by the receiving party at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished to the receiving party by a Third Party, as a matter of right and without
restriction on disclosure; or (d) is independently discovered or developed by the receiving party without the use of Confidential Information of the disclosing party. 
 10.4 Authorized Disclosure. The receiving party may disclose Confidential Information of the other party as expressly permitted by this Agreement or if and to the extent such disclosure is
reasonably necessary in the following instances: 
 (a) defending litigation as permitted by this Agreement; 

(b) complying with applicable court orders or governmental regulations; 

(c) in the case of Astellas, conducting development, manufacturing and/or commercialization activities in accordance with the
license granted in the License Agreements, including making regulatory filings with respect to Products; 
 (d) in the
case of Vical, as otherwise permitted in the License Agreements; and 
 (e) disclosure to Affiliates, sublicensees,
subcontractors, employees, consultants, agents or other Third Parties who need to know such information for the development, 

  

***Confidential Treatment Requested 

  
 20.

 
manufacture and commercialization of Products in accordance with this Agreement or in connection with due diligence or similar investigations by such Third Parties, and disclosure to potential
Third Party investors in confidential financing documents, provided, in each case, that any such Affiliate, sublicensee, subcontractor, employee, consultant, agent or Third Party agrees to be bound by similar terms of confidentiality and non-use at
least equivalent in scope to those set forth in this Article 10. 
 Notwithstanding the foregoing, in the event the receiving party is
required to make a disclosure of the disclosing party’s Confidential Information pursuant to Section 10.4(a) or (b), it will, except where impracticable, give reasonable advance notice to the disclosing party of such disclosure and use
efforts to secure confidential treatment of such information at least as diligent as the receiving party would use to protect its own confidential information, but in no event less than reasonable efforts. In any event, the receiving party agrees to
take all reasonable action to avoid disclosure of Confidential Information of the disclosing party. 
 10.5 Confidentiality
of this Agreement and its Terms. Except as otherwise provided in this Article 10, each party agrees not to disclose to any Third Party the existence of this Agreement or the terms of this Agreement without the prior written consent of the
other party hereto, except that each party may disclose the terms of this Agreement that are not otherwise made public as contemplated by Section 10.6 as permitted under Section 10.4. 

10.6 Public Announcements. 
 (a) Press Releases. As soon as practicable following the date hereof, the parties shall each issue a mutually agreed to press release announcing the existence of this Agreement. Except as required
by applicable laws and regulations (including disclosure requirements of the U.S. Securities and Exchange Commission (“SEC”) or any stock exchange on which securities issued by a party or its Affiliates are traded), neither
party shall make any other public announcement concerning this Agreement or the subject matter hereof without the prior written consent of the other, which shall not be unreasonably withheld or delayed; provided that each party may make any public
statement, including statements in response to questions by the press, analysts, investors or those attending industry conferences or financial analyst calls, or issue press releases, so long as any such public statement or press release is not
inconsistent with prior public disclosures or public statements approved by the other party pursuant to this Section 10.6 and which do not reveal non-public information about the other party. For avoidance of doubt, Vical shall have the right,
without the prior written consent of Astellas, to announce events deemed material by its General Counsel; provided, however, that Vical shall consult with Astellas with regard thereto and provide reasonable opportunity for Astellas to review such
announcement in advance. In the event of a required public announcement, to the extent practicable under the circumstances, the party making such announcement shall provide the other party with a copy of the proposed text of such announcement
sufficiently in advance of the scheduled release to afford such other party a reasonable opportunity to review and comment upon the proposed text. 
 (b) Filing of Agreement. The parties will coordinate in advance with each other in connection with the filing of this Agreement (including redaction of certain provisions of this Agreement) with
the SEC or any stock exchange or governmental agency on which securities 

  
 21.

 
issued by a party or its Affiliate are traded, and each party will use reasonable efforts to seek confidential treatment for the terms proposed to be redacted; provided that each party will
ultimately retain control over what information to disclose to the SEC or any stock exchange or other governmental agency, as the case may be, and provided further that the parties will use their reasonable efforts to file redacted versions with any
governing bodies which are consistent with redacted versions previously filed with any other governing bodies. Other than such obligation, neither party (or its Affiliates) will be obligated to consult with or obtain approval from the other party
with respect to any filings to the SEC or any stock exchange or other governmental agency. 
 10.7 Equitable Relief.
Given the nature of the Confidential Information and the competitive damage that would result to the disclosing party upon unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the parties agree that
monetary damages may not be a sufficient remedy for any breach of this Article 10. In addition to all other remedies, the disclosing party shall be entitled to seek specific performance and injunctive and other equitable relief as a remedy for
any breach or threatened breach of this Article 10. 
 11. TERM AND TERMINATION

 11.1 Term. The term of this Agreement shall commence on the Effective Date and continue until the earliest to occur
of (a) the third anniversary of the First Commercial Sale of the first Product in the Field, (b) the date when Astellas notify Vical in writing that it will take over all the responsibility of Vical for the Manufacture and supply of
Products in the Field after completion of the transitioning of responsibility for Manufacture and supply of Products in the Field to Astellas or its designated contract manufacturer pursuant to Section 3.2, and (c) the date of expiration
or termination of the later to expire or terminate of the License Agreements, in each case unless terminated earlier pursuant to Section 11.2 (the “Term”). In the event a License Agreement terminates or expires (or
terminates or expires with respect to any country or countries to the extent provided therein) prior to the end of the Term, then thereafter during the Term, subject to Section 11.3(b), all obligations of Vical under this Agreement with respect
to the applicable country or countries shall terminate unless otherwise agreed by the parties. 
 11.2 Early Termination.

 (a) A party shall have the right to terminate this Agreement upon written notice to the other party if such other
party is in material breach of this Agreement and has not cured such breach within sixty (60) days (thirty (30) days with respect to any payment breach) after written notice from the terminating party requesting cure of such breach. Any
such termination shall become effective at the end of such sixty (60) day (thirty (30) day with respect to any payment breach) period unless the breaching party has cured any such breach prior to the end of such period. 

(b) A party shall have the right to terminate this Agreement upon written notice to the other party upon the bankruptcy,
dissolution or winding up of such other party, or the making or seeking to make or arrange an assignment for the benefit of creditors of such other party, or the initiation of proceedings in voluntary or involuntary bankruptcy, or the appointment

  
 22.

 
of a receiver or trustee of such other party’s property that is not discharged within ninety (90) days. 
 11.3 Effect of Expiration or Termination; Surviving Obligations. 
 (a)
Transfer of Vical Manufacturing Information. In the event this Agreement is terminated prior to agreement to a plan regarding the transitioning of responsibility for Manufacture and supply of Products in the Field to Astellas or its designated
contract manufacturer pursuant to Section 3.2, and one or both of the License Agreement(s) remain(s) in effect after such termination of this Agreement, the parties shall work together to agree to a plan for transitioning responsibility for the
Manufacture and supply of Products to Astellas or its designated contract manufacturer promptly after such termination, and shall use Commercially Reasonable Efforts to implement such plan and complete such transfer as promptly as possible, but in
any event within twenty four (24) months after such termination. Such plan shall provide for the transfer by Vical to Astellas or its designated contract manufacturer of all Vical Manufacturing Information and for Vical to provide reasonable
assistance to enable Astellas or its designated contract manufacturer to Manufacture and supply Products in the Field in accordance with the licenses and sublicenses granted under the applicable License Agreements, such transfer and assistance to be
provided at Astellas’ sole expense according to a budget included in such plan (including, without limitation, any expense to perform any necessary clinical studies required in connection with the transfer of the Manufacture and supply of
Products in the Field to Astellas or its designated contract manufacturer). In the event this Agreement is terminated after the parties have agreed to a plan for transitioning responsibility for the Manufacture and supply of Products to Astellas or
its designated contract manufacturer pursuant to Section 3.2, but prior to completion of such transition, and one or both of the License Agreement(s) remain(s) in effect after such termination of this Agreement, the parties shall work together
to implement such plan and complete such transition, in accordance with the timelines set forth therein, in accordance with Section 3.2. 
 (b) Surviving Terms. Expiration or termination of this Agreement shall not relieve the parties of any obligation accruing prior to such expiration or termination including, without limitation, all
obligations of Astellas to purchase any Compounds and Products ordered by it (or which Astellas is obligated to order pursuant to Section 4.2) prior to such termination. Without limiting the foregoing, the obligations and rights of the parties
under Sections 5.4, 9.4, 9.5, 11.3, 11.4 and 11.5 and Articles 1, 10, 12 and 13 shall survive expiration or termination of this Agreement. 
 (c) Return of Confidential Information. Within [...***...] days following the expiration or termination of this Agreement, each party shall deliver to the other party or destroy any and
all Confidential Information of the other party in its possession, as per instruction by the party which owns such Confidential Information. Notwithstanding the foregoing, in case that either party has a license (or sublicense, as applicable) under
any Confidential Information of the other party pursuant to either of the License Agreements following such expiration or termination of this Agreement, such party shall not be required to make delivery or destruction of such Confidential
Information pursuant to this Section 11.3(c). 

  

***Confidential Treatment Requested 

  
 23.

 11.4 Exercise of Right to Terminate. The use by either party hereto of a termination
right provided for under this Agreement shall not give rise to the payment of damages or any other form of compensation or relief to the other party with respect thereto. 
 11.5 Damages; Relief. Subject to Section 11.4 above, termination of this Agreement shall not preclude either party from claiming any other damages, compensation or relief that it may be
entitled to upon such termination. 
 12. INDEMNIFICATION 

12.1 Indemnification by Vical. Vical hereby agrees to save, defend and hold Astellas, and its Affiliates and their respective
directors, officers, employees and agents (each, a “Astellas Indemnitee”) harmless from and against any and all claims, suits, actions, demands, liabilities, expenses and/or loss, including reasonable legal expense and
attorneys’ fees (collectively, “Losses”), to which any Astellas Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Losses arise directly or
indirectly out of (a) the gross negligence or willful misconduct of any Vical Indemnitee with respect to any obligations or activities contemplated by this Agreement, or (b) the breach by Vical of any warranty, representation, covenant or
agreement made by Vical in this Agreement (except for breach by Vical of the warranty set forth in Section 9.1, other than a breach of the warranty set forth in Section 9.1(a) that cannot be discovered in the course of inspection or
testing conducted by Astellas upon receipt of Compounds or Products, as applicable); except, in each case, to the extent such Losses result from the gross negligence or willful misconduct of any Astellas Indemnitee or the breach by Astellas of any
warranty, representation, covenant or agreement made by Astellas in this Agreement. 
 12.2 Indemnification by Astellas.
Astellas hereby agrees to save, defend and hold Vical and its Affiliates and their respective directors, officers, employees and agents (each, a “Vical Indemnitee”) harmless from and against any and all Losses to which any
Vical Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party to the extent such Losses arise directly or indirectly out of: (a) the gross negligence or willful misconduct of any Astellas
Indemnitee with respect to any obligations or activities contemplated by this Agreement, or (b) the breach by Astellas of any warranty, representation, covenant or agreement made by Astellas in this Agreement; except, in each case, to the
extent such Losses result from the gross negligence or willful misconduct of any Vical Indemnitee or the breach by Vical of any warranty, representation, covenant or agreement made by Vical in this Agreement. 

12.3 Control of Defense. Any person entitled to indemnification under this Article 12 shall give notice to the indemnifying
party of any Losses that may be subject to indemnification, promptly after learning of such Losses, and the indemnifying party shall assume the defense of such Losses with counsel reasonably satisfactory to the indemnified party. If such defense is
assumed by the indemnifying party with counsel so selected, the indemnifying party will not be subject to any liability for any settlement of such Losses made by the indemnified party without its consent (but such consent will not be unreasonably
withheld or delayed), and will not be obligated to pay the fees and expenses of any separate counsel retained by the indemnified party with respect to such Losses.  

  
 24.

 13. GENERAL PROVISIONS 

13.1 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of
New York, excluding its conflicts of laws principles with the exception of sections 5-1401 and 5-1402 of New York General Obligations Law. 
 13.2 Dispute Resolution. 
 (a) Objective. The parties recognize that
disputes as to matters arising under or relating to this Agreement or either party’s rights and/or obligations hereunder may arise from time to time. It is the objective of the parties to establish procedures to facilitate the resolution of
such disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the parties agree to follow the procedures set forth in this Section 13.2 to resolve any such dispute if and when it
arises. 
 (b) Resolution by Executives. If an unresolved dispute as to matters arising under or relating to this
Agreement or either party’s rights and/or obligations hereunder arises, either party may refer such dispute to the Chief Executive Officer of Vical and a senior executive of Astellas who reports directly to the Chief Executive Officer of
Astellas (the Chief Executive Officer of Vical and such senior executive of Astellas, collectively, the “Executives”), who shall meet in person or by telephone within ten (10) days after such referral to attempt in good
faith to resolve such dispute. If such matter cannot be resolved by discussion of the Executives within ten (10) days following such meeting (as may be extended by mutual written agreement), such dispute shall be resolved in accordance with
Section 13.2(c). 
 (c) Arbitration. 
 (i) If the parties do not resolve a dispute as provided in Section 13.2(b), and a party wishes to pursue the matter, each such dispute that is not an “Excluded Claim” shall be
resolved by binding arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC”) as then in effect (the “ICC Rules”), and judgment on the arbitration award
may be entered in any court having jurisdiction thereof. The decision rendered in any such arbitration will be final and not appealable. If either party intends to commence binding arbitration of such dispute, such party will provide written notice
to the other party informing the other party of such intention and the issues to be resolved. Within 30 days after the receipt of such notice, the other party may by written notice to the party initiating binding arbitration, add additional
issues to be resolved. 
 (ii) The arbitration shall be conducted by a panel of three (3) arbitrators experienced
in the pharmaceutical business, none of whom shall be a current or former employee or director, or a then-current stockholder, of either party, their respective Affiliates or any Sublicensee. Within thirty (30) days after receipt of the
original notice of binding arbitration, each party shall select one person to act as arbitrator and the two party-selected arbitrators shall select a third arbitrator within ten (10) days of their appointment. If the arbitrators selected by the
parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be appointed by the ICC in accordance with the ICC Rules. The place of 

  
 25.

 
arbitration shall be New York, New York, and all proceedings and communications shall be in English. 
 (iii) It is the intention of the parties that discovery, although permitted as described herein, will be limited except in exceptional circumstances. The arbitrators will permit such limited
discovery necessary for an understanding of any legitimate issue raised in the arbitration, including the production of documents. No later than thirty (30) days after selection of the arbitrators, the parties and their representatives shall
hold a preliminary meeting with the arbitrators, to mutually agree upon and thereafter follow procedures seeking to assure that the arbitration will be concluded within six (6) months from such meeting. Failing any such mutual agreement, the
arbitrators will design and the parties shall follow procedures to such effect. 
 (iv) 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 arbitrators shall have no authority to award punitive or any other non-compensatory damages. The arbitrators shall have the
power to order that all or part of the legal or other costs incurred by a party in connection with the arbitration be paid by the other party. Subject to the preceding sentence, each party shall bear an equal share of the arbitrators’ and any
administrative fees of arbitration. 
 (v) Except to the extent necessary to confirm or enforce an award or as may be
required by applicable law, neither a party nor an arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both parties. In no event shall an arbitration be initiated after the date when
commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred by the applicable New York statute of limitations. 
 (vi) As used in this Section, the term “Excluded Claim” shall mean a dispute, controversy or claim that concerns (A) the validity, enforceability or infringement of a
patent, trademark or copyright or regulatory data exclusivity; or (B) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory. 
 13.3 Entire Agreement; Modification. This Agreement, including the Exhibits hereto, is both a final expression of the parties’ agreement and a complete and exclusive statement with respect to
all of its terms. Except for the License Agreements and the side letter agreement between the parties, this Agreement supersedes all prior and contemporaneous agreements and communications, whether oral, written or otherwise, concerning any and all
matters contained herein and therein, including the Confidentiality Agreement. This Agreement may only be modified or supplemented in a writing expressly stated for such purpose and signed by the parties to this Agreement. 

13.4 Relationship Between the Parties. The parties’ relationship, as established by this Agreement, is solely that of
independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between the parties. Neither party is a legal representative of the other party, and neither party can assume or create any
obligation, 

  
 26.

 
representation, warranty or guarantee, express or implied, on behalf of the other party for any purpose whatsoever. 
 13.5 Non-Waiver. The failure of a party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that
provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a party of a particular provision or right shall be in writing, shall be as to a particular matter
and, if applicable, for a particular period of time and shall be signed by such party. 
 13.6 Assignment. Except as
expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either party without the prior written consent of the other party (which consent shall not be unreasonably
withheld); provided, however, that either party may assign or otherwise transfer this Agreement and its rights and obligations hereunder without the other party’s consent: 

(a) in connection with the transfer or sale of all or substantially all of the business or assets of such party relating to
products for control or prevention of CMV infection to a Third Party, whether by merger, sale of stock, sale of assets or otherwise (a “Sale”), provided that in the event of a Sale (whether this Agreement is actually assigned
or is assumed by the acquiring party by operation of law (e.g., in the context of a reverse triangular merger)), intellectual property rights of the acquiring party to such transaction (if other than one of the parties to this Agreement)
shall not be included in the technology licensed hereunder; or 
 (b) to an Affiliate, provided that the assigning party
shall remain liable and responsible to the non-assigning party hereto for the performance and observance of all such duties and obligations by such Affiliate. 
 The rights and obligations of the parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties. Any assignment not in accordance with
this Agreement shall be void. 
 13.7 Vical Third Party Contractors. The parties acknowledge and agree that Vical may use
a Third Party contractor to perform development and regulatory activities and/or Manufacture and supply Compounds and Products under this Agreement and that the terms “Vical shall” or “Vical will” or the like, shall be deemed to
be followed by the words “or Vical’s designated Third Party contractor will” or “or “Vical’s designated Third Party contractor shall” or “Vical shall require that its designated Third Party contractor
shall” or the like, with respect to Vical’s development, regulatory, Manufacturing and supply obligations herein. 

13.8 Non-Exclusive License. Vical shall, and hereby does, grant to Astellas a non-exclusive, [...***...] worldwide license,
with the right to sublicense and further sublicense, under Vical Technology which is made or developed by or on behalf of Vical in performing its obligations under this Agreement and funded by Astellas under this Agreement, for all uses. 

  

***Confidential Treatment Requested 

  
 27.

 13.9 No Third Party Beneficiaries. This Agreement is neither expressly nor impliedly
made for the benefit of any party other than those executing it, except as otherwise provided in this Agreement with respect to Astellas Indemnitees under Section 12.2 and Vical Indemnitees under Section 12.1. 

13.10 Severability. If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable or illegal by a court of
competent jurisdiction, such adjudication shall not affect or impair, in whole or in part, the validity, enforceability or legality of any remaining portions of this Agreement. All remaining portions shall remain in full force and effect as if the
original Agreement had been executed without the invalidated, unenforceable or illegal part. 
 13.11 Cumulative Remedies.
No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law. 

13.12 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, by any method of
mail (postage prepaid) requiring return receipt, or by overnight courier or facsimile or electronic mail (email) transmission confirmed thereafter by any of the foregoing, to the party to be notified at its address(es) given below, or at any address
such party has previously designated by prior written notice to the other. Notice shall be deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt; (b) if mailed, five days after the date of
postmark; or (c) if delivered by overnight courier, the next business day the overnight courier regularly makes deliveries. 
 If to Astellas, notices must be addressed to: 
 Astellas Pharma Inc. 

3-11, Nihonbashi-Honcho 2-chome 
 Chuo-Ku, Tokyo 103-8411 
 Japan 

Attention: Vice President, Legal 
 Facsimile: [...***...] 
 With a copy to: 

Astellas Pharma Inc. 
 3-11, Nihonbashi-Honcho 2-chome 
 Chuo-Ku, Tokyo 103-8411 

Japan 

Attention: Vice President, Licensing and Alliances 
 Facsimile: [...***...] 

  

***Confidential Treatment Requested 

  
 28.

 If to Vical, notices must be addressed to: 

Vical Incorporated 
 10390 Pacific Center Court 
 San Diego, California 92121 

USA 

Attention: Business Development 
 Facsimile: (858) 646-1150 
 Email: licensing@vical.com 

With a copy to: 
 Cooley LLP 
 4401 Eastgate Mall 

San Diego, California 92121 
 USA 
 Attention: [...***...] 

Telephone: (858) 550-6000 
 Facsimile: (858) 550-6420 
 Email: [...***...] 

13.13 Force Majeure. Except for the obligation to make payment when due, each party shall be excused from liability for the
failure or delay in performance of any obligation under this Agreement by reason of any event beyond such party’s reasonable control including but not limited to Acts of God, fire, flood, explosion, earthquake, or other natural forces, war,
civil unrest, accident, destruction or other casualty, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, any strike or labor disturbance, or any other event similar to those enumerated above. Such
excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the party has not caused such event(s) to occur. Notice of a party’s failure or delay in
performance due to force majeure must be given to the other party within 10 days after its occurrence. All delivery dates under this Agreement that have been affected by force majeure shall be tolled for the duration of such force majeure. In
no event shall any party be required to prevent or settle any labor disturbance or dispute. 
 13.14 Interpretation.

 (a) Captions & Headings. The captions and headings of clauses contained in this Agreement preceding the
text of the articles, sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction.

 (b) Interpretation. All references in this Agreement to the word “including” shall be deemed to be followed
by the phrase “without limitation” or like expression. All references in this Agreement to the singular shall include the plural where applicable, and all references to gender shall include both genders and the neuter. 

  

***Confidential Treatment Requested 

  
 29.

 (c) Articles, Sections & Subsections. Unless otherwise specified, references
in this Agreement to any article shall include all sections, subsections, and paragraphs in such article; references in this Agreement to any section shall include all subsections and paragraphs in such sections; and references in this Agreement to
any subsection shall include all paragraphs in such subsection. 
 (d) Days. All references to days in this Agreement
shall mean calendar days, unless otherwise specified. 
 (e) Ambiguities. Ambiguities and uncertainties in this
Agreement, if any, shall not be interpreted against either party, irrespective of which party may be deemed to have caused the ambiguity or uncertainty to exist. 
 (f) English Language. This Agreement has been prepared in the English language and the English language shall control its interpretation. In addition, all notices required or permitted to be given
hereunder, and all written, electronic, oral or other communications between the parties regarding this Agreement shall be in the English language. 
 13.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one
instrument. Signatures provided by facsimile transmission or in AdobeTM Portable Document Format (PDF) sent by electronic mail shall be deemed to be original signatures. 
 [Remainder of this page intentionally left blank.] 

  
 30.

 IN WITNESS WHEREOF, the parties hereto
have duly executed this Supply and Services Agreement as of the date set forth below. 
  

									
	ASTELLAS PHARMA INC.	 		 	VICAL INCORPORATED
					
	By:	 	  
	 		 	By:	 	  

	Name: Yoshihiko Hatanaka	 		 	Name: Vijay B. Samant
	Title: President and CEO	 		 	Title: President and CEO
	Date: July     , 2011	 		 	Date: July     , 2011

 SIGNATURE PAGE TO SUPPLY AND
SERVICES AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]