Document:

Exclusive License Agreement between Magen Biosciences and Eli Lilly

 Exhibit 10.14 

Portions of this exhibit marked [*] are requested to be treated confidentially. 

EXCLUSIVE LICENSE AGREEMENT 

between 

MAGEN BIOSCIENCES, INC. 

and 

ELI LILLY AND COMPANY 

NOVEMBER 28, 2007 

 EXCLUSIVE LICENSE AGREEMENT 

THIS EXCLUSIVE LICENSE AGREEMENT (the
“Agreement”) is made and entered into effective as of November 28, 2007 (the “Effective Date”), by and between MAGEN BIOSCIENCES, INC.
(“Magen”), a corporation organized and existing under the laws of the State of Delaware, having its principal place of business at 790 Memorial Drive, Suite 101, Cambridge, MA 02139, and ELI
LILLY AND COMPANY (“Lilly”), a corporation organized and existing under the laws of the State of Indiana, having its principal place of business at Lilly
Corporate Center, Indianapolis, Indiana 46285. Magen and Lilly may be referred to herein individually as a “Party” and collectively as “Parties.” 

RECITALS 

A. Lilly owns and controls intellectual property rights and proprietary information comprising, covering or relating to certain
proprietary compounds that have activity against the vitamin D receptor. 
 B. Magen is a biopharmaceutical company with
technology and expertise appropriate to developing products in the dermatology field, and Magen is interested in obtaining an exclusive, worldwide license under such Lilly rights and information to develop and commercialize products containing such
compounds (and potentially additional related compounds) for use in all applications that may be of utility for the diagnosis or treatment of dermatological diseases and conditions in humans and animals. 

C. Lilly is willing to grant such license rights, and certain additional exclusivity and other related rights, to Magen on the
terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the above
premises and the mutual covenants and agreements set forth below, the Parties hereto agree as follows. 
 ARTICLE 1

 DEFINITIONS 

As used in this Agreement, the following capitalized words and phrases shall have the following meanings: 

1.1 “Additional Compound” means any of the compounds described on Schedule B of this Agreement, which are owned
by and proprietary to Lilly. 
 1.2 “Additional Compound Option” means the option granted to Magen by
Lilly as provided in Section 2.5. 

 1.3 “Affiliate” means, with respect to a particular Party, any
Person that (directly or indirectly) is controlling, controlled by, or under common control with, such Party, at the applicable time. For purposes of this definition, the term “controlling” (with correlative meanings for the terms
“controlled by” and “under common control with”) means the ability and power to direct or cause the direction of management policies of a Person or otherwise direct the affairs of such Person, whether through ownership of equity,
voting securities, beneficial interest, by contract or otherwise. 
 1.4 “Applicable Laws” means all
applicable laws, ordinances, rules and regulations of any kind whatsoever of any governmental (including international, foreign, federal, state and local) or regulatory authority, including, without limitation, all laws, ordinances, rules and
regulations promulgated by the FDA. 
 1.5 “Calendar Quarter” means the three (3) month period
ending on March 31, June 30, September 30 or December 31. The initial Calendar Quarter will be deemed to begin on the Effective Date and end on the expiration of that Calendar Quarter in which it falls. 

1.6 “Clinical Trial(s)” means Human Clinical Studies, Phase I Clinical Trials, Phase II Clinical Trials
(including Phase IIb Clinical Trials) or Phase III Clinical Trials, as applicable. 
 1.7 “Confidential
Information” means specific Information disclosed (whether disclosed in writing, electronically, orally or by observation) by one Party (the “Disclosing Party”) to the other Party (the “Receiving
Party”) under this Agreement that the Disclosing Party reasonably considers proprietary and confidential and identifies to the Receiving Party as confidential at the time of disclosure, but excluding any specific Information
that, as shown by competent evidence: 
 (a) was known to the Receiving Party or to the public prior to the Disclosing
Party’s disclosure, as demonstrated by contemporaneous written records; 
 (b) became known to the public, after the
Disclosing Party’s disclosure hereunder, other than through a breach of the confidentiality provisions of this Agreement by the Receiving Party or any Person to whom such Receiving Party disclosed such Information; 

(c) was subsequently disclosed to the Receiving Party by a Person having a legal right to disclose, without any restrictions, such
Information; or 
 (d) was developed by the Receiving Party independent of and without reference to any of the Disclosing
Party’s Confidential Information; 
 provided, however, that the Lilly Patents, the Lilly Know-How and any other Information that
pertains to a Licensed Compound or any Licensed Product disclosed to Magen by Lilly hereunder shall be deemed the Confidential Information of Magen as well as Lilly and subject to the confidentiality provisions hereof during the Term of this
Agreement. 
  

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 1.8 “Control” means, with respect to a particular intellectual
property right or item of Information, that the applicable Party owns or has a license to such right or item and has the ability to grant to the other Party access to and a license (or sublicense, as applicable) under such right or item without
violating the terms of any agreement or other arrangement with any Third Person. 
 1.9 “Damages” means
any and all costs, losses, claims, demands for payment, government enforcement actions, liabilities, fines, penalties, expenses, court costs and reasonable fees and disbursements of counsel, consultants and expert witnesses incurred by a Party
hereto or its Affiliates (including any court-imposed interest in connection therewith). 
 1.10 “Data
Exclusivity Period” means the period during which the FDA (or, in countries other than the United States, an equivalent regulatory agency) prohibits reference, without the consent of the owner of a Marketing Application or Regulatory
Approval package, to the clinical and other data that is contained in such Marketing Application or Regulatory Approval package, and that is not published or publicly available outside of such Marketing Application or Regulatory Approval package.

 1.11 “Development Plan” means a plan prepared by Magen for developing Licensed Product in the
Territory, up to and including filing of the Marketing Application for the Licensed Product, including all Clinical Trials required to confirm the profile of Licensed Product, including but not limited to, Clinical Trials required to confirm the
clinical efficacy, tolerability and dosing regimen of Licensed Product. Magen may amend, update, alter or change the Development Plan in its sole discretion. 

1.12 “Diligent Efforts” means use of commercially reasonable efforts, consistent with Magen’s normal
business practices, that are comparable with those used in the pharmaceutical and biotechnology industry by companies of similar size and resources as Magen for similar products at a comparable stage in development and of a comparable commercial and
development potential, with the objective of launching the Licensed Product worldwide as soon as practicable. 
 1.13
“Effective Date” shall have the meaning set forth in the first paragraph hereof. 
 1.14
“Encumbrance” means any lien, charge, security interest, option, privilege, pledge, trust (whether contractual, statutory or otherwise arising) or any other encumbrance or right or claim of ownership of any kind
whatsoever. 
 1.15 “FDA” means the United States Food and Drug Administration, or any successor federal
agency having responsibility over Regulatory Approval. “FDA” shall also be deemed to include the applicable governmental or regulatory authority having jurisdiction over the Licensed Product in any particular country or region in the
Territory (for example, the European Medicines Evaluation Agency for the European Union). 
 1.16
“Field” means all applications that may be of utility for the diagnosis, prevention or treatment of dermatological diseases and conditions, or for other dermatological uses, in humans and animals. 

 

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 1.17 “First Commercial Sale” means, with respect to a particular
Licensed Product in a country, the first arms length sale of such Licensed Product in such country by Magen or other Permitted Seller to a Third Person following Regulatory Approval of the Licensed Product in that country. 

1.18 “Force Majeure” shall have the meaning set forth in Section 11.3. 

1.19 “GAAP” means U.S. Generally Accepted Accounting Principles, consistently applied. 

1.20 “Human Clinical Study” means a human clinical trial. 

1.21 “Information” means all tangible and intangible (a) information, techniques, technology, practices,
trade secrets, inventions (whether patentable or not), methods, knowledge, know-how, skill, experience, data, results (including pharmacological, toxicological and clinical test data and results), analytical and quality control data, results or
descriptions, software and algorithms and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 

1.22 “Licensed Compound” means (i) any of the compounds described on Schedule A, which are owned by and
proprietary to Lilly, and (ii) any Additional Compound that is added to the Agreement as a Licensed Compound by Magen’s proper exercise of the Additional Compound Option. 

1.23 “Licensed Product” means any pharmaceutical product that contains a Licensed Compound, which term shall
include any dosages, formulations or modes of administration of such product and any metabolites, salts, isomers, or pro-drugs of such product or Licensed Compound. 

1.24 “Lilly Patents” means all existing and future Patents claiming or covering the Licensed Compounds or their
formulation or use or application in the Field that are Controlled by Lilly or its Affiliate and (1) are necessary or useful for Magen to develop, use, import, export, offer for sale and sell the Licensed Product in the Field; and/or
(2) are necessary for Magen to make or have made the Licensed Product in the Field. Attached as Schedule C of this Agreement is the list of Lilly Patents as of the Effective Date. 

1.25 “Lilly Know-How” means all proprietary Information relating to a Licensed Compound or Licensed Product that
is Controlled by Lilly as of the Effective Date or at any time during the Term and is (i) necessary or reasonably useful to use, research, develop, promote, market, sell or seek Regulatory Approval of a Licensed Product or (ii) necessary
for the manufacture of Licensed Product. 
 1.26 “MAA” means a Marketing Authorization Approval
submitted to the European Agency for the Evaluation of Medicinal Products (EMEA). 
 1.27 “Magen
Technology” means any Information that is discovered, developed, invented or created by or on behalf of Magen (or its agent or contractors) pursuant to work conducted under the Development Plan or otherwise pursuant to this Agreement, and
any Patents claiming any of the foregoing. 
  

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 1.28 “Marketing Application” means, with respect to a Licensed
Product, (i) in the United States, a New Drug Application filed with the FDA pursuant to 21 U.S.C. Section 357 and 21 C.F.R. Section 314 (or any successor application thereto for Regulatory Approval) (an
“NDA”), and (ii) in any country other than the United States, an application or set of applications for Regulatory Approval comparable to an NDA and necessary to make, promote and sell Licensed Product commercially in
such country. 
 1.29 “Net Sales” means the gross amount invoiced for sale of Licensed Products by a
Permitted Seller less the following items, consistent with U.S. GAAP: 
  

	 	(a)	trade, quantity and cash discounts actually allowed; 

  

	 	(b)	commissions, discounts, refunds, rebates, charge backs, retroactive price adjustments, and any other allowances paid to third parties that effectively reduce net
selling price; 

  

	 	(c)	credits, allowances and refunds for actual Licensed Product rejections, returns and allowances; and 

 

	 	(d)	taxes, duties and other governmental charges on the sale, shipment or transfer of the Licensed Product. 

Notwithstanding the foregoing, Net Sales shall include sales made by Permitted Sellers to Third Persons, but shall not include sales of
Licensed Products between or among Permitted Sellers unless the Permitted Seller that purchases Licensed Product is the end user of such Licensed Products. In addition, sales of Licensed Products for use in Clinical Trials prior to receipt of
Regulatory Approval for such product in the applicable country shall not be included in Net Sales, provided that such sales are made without profit or with de minimis profits. 

In the event the Licensed Product is sold as part of a combination product, the Net Sales of the Licensed Product, for the purposes of
determining royalty payments owed based on such sales, shall be determined by multiplying the Net Sales (as defined above in this Section 1.27) of the combination product by the fraction A/(A+B), where A is the weighted (by sales volume)
average sale price of the Licensed Product, over the prior four quarters, when sold separately in finished form and B is the weighted average sale price of the other product(s) in such combination product, over the prior four quarters, when sold
separately in finished form. In the event that such average sale price for the separate sales cannot be determined for both the Licensed Product and the other product(s) in the combination, Net Sales for purposes of determining such royalty payments
shall be mutually agreed by the parties based on the relative value contributed by each component of such Licensed Product, and such agreement shall not be unreasonably withheld. 

Such Net Sales amounts shall be determined from the books and records of the Permitted Seller and maintained in accordance with GAAP,
consistently applied. Further, in determining such amounts, Magen will use Magen’s then current standard procedures and methodology, including Magen’s then current standard exchange rate methodology for the translation of foreign currency
sales into U.S. Dollars or, in the case of other Permitted Sellers, such similar methodology, consistently applied. 
  

 

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 1.30 “Patents” means all patents and patent applications in any
country or supranational jurisdiction in the Territory, (b) any substitutions, divisions, continuations, provisional applications, reissues, renewals, registrations, confirmations, re-examinations, extensions, supplementary protection
certificates and the like of any such patents or patent applications, and (c) foreign counterparts of any of the foregoing. 

1.31 “Permitted Seller” means Magen and its Affiliates and any permitted assignee, licensee or sublicensee that
has been granted by Magen (or its Affiliate) the right to sell Licensed Product under the terms of this Agreement. 

1.32 “Person” means a natural person, a corporation, a partnership, a trust, a joint venture, a limited liability
company, any governmental authority, or any other entity or organization. 
 1.33 “Phase I Clinical
Trials” means human clinical trials conducted to establish an initial safety profile and pharmacodynamics of Licensed Product in the particular indication tested. 

1.34 “Phase II Clinical Trials” means human clinical trials conducted to achieve a level of efficacy and safety
of Licensed Product as well as a preliminary dosage in the particular indication tested. “Phase IIb Clinical Trials” means a Phase II Clinical Trial conducted to assess efficacy and safety of Licensed Product at different dosage
levels and to determine the optimal dosing regimen for Phase III Clinical Trials. 
 1.35 “Phase III Clinical
Trials” means human clinical trials conducted to establish efficacy of Licensed Product and meet requirements to file Marketing Applications for Licensed Product with health regulatory authorities in the particular indication tested.

 1.36 “Regulatory Approval” means approval of a Marketing Application and satisfaction of any related
applicable FDA registration and notification requirements (if any). 
 1.37 “Regulatory Documents” shall
have the meaning as set forth in Section 10.3(e). 
 1.38 “Royalty Term” means, with respect to a
specific country in which the particular Licensed Product is sold (on a Licensed Product by Licensed Product and country-by-country basis), that time period beginning on the First Commercial Sale of such Licensed Product in such country and expiring
on the date that is the later of: 
 (a) the date of expiration or invalidation in such country of the last
Lilly Patent with a Valid Claim covering the Licensed Product; (b) if there is a Data Exclusivity Period in effect in such country for such Licensed Product after the expiration of the applicable time period in (a), above, the expiration of
such Data Exclusivity Period in such country; 
 1.39 “Territory” means all countries of the world.

 1.40 “Third Person” means Persons other than the Parties or Affiliates thereof. 

 

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 1.41 “Valid Claim” means a claim of an issued and unexpired patent
included within the Lilly Patents in a country which: (i) but for this Agreement, would be infringed by the manufacture, importation, use or sale or other disposition of Licensed Product by or on behalf of Magen or another Permitted Seller,
(ii) has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction which decision is no longer appealable, and (iii) has not been abandoned, disclaimed or admitted to
be invalid or unenforceable through reissue, disclaimer or otherwise. 
 ARTICLE 2 

GRANT OF LICENSE; RELATED RIGHTS 

2.1 License. Subject to the terms and conditions set forth herein, during the term of this Agreement, Lilly grants Magen
the exclusive, royalty-bearing license (with the full rights to grant sublicenses through multiple tiers) under the Lilly Know-How and Lilly Patents to research, have researched, develop, have developed, make, have made, use, have used, manufacture,
have manufactured, register, have registered, offer for sale, sell, have sold, import and export, distribute, and market Licensed Compounds and Licensed Products in the Field in the Territory. 

2.2 Sublicenses. The license rights granted to Magen under this Agreement may be sublicensed without restriction, provided
that such sublicenses are consistent with the terms of this Agreement and the sublicensee agrees to comply with the applicable terms of the Agreement. 

2.3 Technology and Materials Transfer. Promptly after the Effective Date, Lilly will disclose and provide to Magen copies
of all Lilly Know-How, including all of the information, materials, data and documents in Lilly records that are related to research, development, process development/manufacturing, regulatory filing, and/or clinical and regulatory information,
results and data associated with the research or development of Licensed Compounds and/or Licensed Products up to the Effective Date. Lilly will promptly transfer to Magen [*], [*] percent ([*]%) of its remaining quantities of material for each of
the Licensed Compounds used to make Licensed Compounds that are owned by Lilly as of the Effective Date. Lilly may retain the remaining material for Lilly’s own research use, in particular, for screening purposes against other assets. Lilly
shall not be obligated to provide any starting materials. If starting materials are available commercially, Magen shall obtain such materials from commercial sources. If starting materials are not available, Lilly shall discuss Magen’s needs
and if Lilly has starting materials available, Lilly shall determine the quantity of starting material that Lilly can make available for Magen in light of Lilly’s needs for such starting materials and provide that quantity to Magen. Lilly shall
not be obligated to provide any synthetic intermediates. Magen shall determine the intermediates that it requires, and if Lilly has such intermediates available that are not commercially available, Lilly shall determine the quantity of the
identified intermediates that Lilly can make available for Magen in light of Lilly’s needs for such intermediates and provide that quantity to Magen. 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

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 2.4 Transfers Related to Regulatory Matters. Lilly will license, assign, cause
to be assigned, or diligently assist with efforts to assign, or provide rights to Magen to, any existing licenses, registrations, rights, or permits in its possession at the Effective Date that will be required to effect the development or
Regulatory Approval of the Licensed Compounds and/or Licensed Products by Magen. Such license, assignment or provision of rights will include any and all worldwide regulatory filings and associated permits relating to Licensed Compound. 

2.5 Transition Support. The Parties agree to work in good faith to complete the provision of Lilly Know-How to Magen as
soon as practicable but no later than [*] days after the Effective Date. Thereafter, during the term Lilly will grant Magen access, during normal business hours, to appropriate Lilly personnel (including [*] and [*]) for reasonable consultation
related to the Lilly Know-How not to exceed [*] ([*]) hours (in two hour increments) in total. If Magen requests consultation (by telephone or videoconference) beyond this amount, Lilly will consider Magen’s request in light of the availability
of Drs. [*] and [*] given their schedules and other responsibilities to Lilly. [*] is responsible for, and will pay for, any travel and associated expenses of such Lilly personnel if needed for travel to provide such consultation. Nothing contained
in this Section 2.4 or otherwise in this Agreement will be construed as a guarantee by Lilly that Magen will obtain Regulatory Approval for Licensed Product. 

2.6 Additional Compound Option. If, at any time during the term of this Agreement, Lilly determines that a specific
Additional Compound is available for licensing, then Lilly shall give Magen prompt written notice of the availability of such Additional Compound for licensing by Magen in the Field under the terms of this Agreement. Lilly hereby grants to Magen the
exclusive option (the “Additional Compound Option”) to expand the definition of Licensed Compounds to include, on a compound-by-compound basis, any Additional Compound that Lilly has determined is available for licensing. Upon receiving
written notice from Lilly that a particular Additional Compound is available for licensing, Magen shall have [*] ([*]) days to determine whether it wants to exercise its Additional Compound Option with respect to such Additional Compound. If Magen
exercises such option, by providing written notice to Lilly within such time period, then such specified Additional Compound shall automatically be a Licensed Compound, and the Parties shall add such compound to the list of Licensed Compounds in
Schedule A (and remove the compound from the list of Additional Compounds in Schedule B). Each such Additional Compound for which the Additional Compound Option is exercised by Magen shall be immediately a Licensed Compound upon such exercise and
subject to all the rights and obligations of this Agreement with respect to Licensed Compounds, including Lilly’s right to receive milestone payments and royalty payments based on the development and commercialization of Licensed Product
containing such Licensed Compound under the terms of Article 4. 
 2.7 Magen Right of First Refusal Option.

 (a) The Parties acknowledge that Lilly intends to continue research, development, and potential commercialization of
molecules with vitamin D receptor modulation mechanisms of action for therapeutic indications outside of the Field. From time to time, Lilly may discover and advance additional molecules that are active against the vitamin D receptor and may have
potential to become products within the Field (the “Follow-On Compounds”), but which are not Licensed Compounds (or Additional Compounds) under this Agreement. With respect to any such Follow-On Compound, if Lilly determines that it will
seek to grant a license to such Follow-On Compound in the Field (including in response to any Third Party licensing offer or proposal to Lilly with respect to such Follow-On Compound), then Lilly shall, before offering such Follow-On Compound to any
Third Party, disclose such Follow-On Compound to Magen and offer to Magen in writing the option to license such Follow-On Compound for use in the Field (a “Follow-On Option”). Any such license shall be on commercially reasonable terms to
be negotiated between Magen and Lilly reasonably and in good faith, or (if applicable) on terms equivalent to those in a recent bona fide licensing offer to Lilly from a Third Party with respect to licensing such Follow-On Compound in the
Field. 
  
 [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC. 
  

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 (b) If Lilly offers a Follow-On Option to Magen, then Lilly shall provide to Magen as
soon as practicable such Information relating to the particular Follow-On Compound covered by the Follow-On Option as is reasonably needed for Magen to evaluate the Follow-On Compound and whether to exercise the Follow-On Option. Magen shall have a
period of [*] ([*]) days to review such Lilly Information regarding the Follow-On Compound, and to exercise such Follow-On Option. If Magen exercises the Follow-On Option, then the Parties shall immediately enter into licensing negotiations
regarding such Follow-On Compound and shall seek diligently and in good faith to agree on the commercially reasonable terms of and to execute a separate licensing agreement covering the license to Magen of such Follow-On Compound in the Field, by
the date that is [*] ([*]) days after such exercise. Lilly may not license any Follow-On Compound to a Third Party in the Field without first providing to Magen the Follow-On Option covering such Follow-On Compound and complying with the above
procedures. With respect to any such Follow-On Option provided by Lilly, if: (i) Lilly receives written notice from Magen that it does not want to license the applicable Follow-On Compound, or (ii) Magen does not exercise such Follow-On
Option within the above [*] day exercise period, or (iii) the Parties fail to successfully negotiate and execute a licensing agreement for the Follow-On Compound, in the case Magen has exercised such Follow-On Option, then Lilly shall be free
to license the applicable Follow-On Compound to a Third Party, provided that such terms are no less favorable to Lilly than those refused by Magen. 

2.8 Covenant Not to Sue. During the term of this Agreement, Lilly covenants that it will make no claim nor commence or
prosecute against Magen any suit, action or proceeding of any kind based upon assertion of infringement of any claim of any issued patent owned or licensed by Lilly to the extent that such claim covers a Licensed Compound or Licensed Product.

 ARTICLE 3 

COMMERCIAL MATTERS 

3.1 Conduct and Funding. Magen will have the exclusive rights to, and be solely responsible for, conducting and funding all
research, pre-clinical development, clinical developmental, commercialization, manufacturing, and regulatory activities associated with the Licensed Compounds and Licensed Products from the Effective Date forward. Magen shall use Diligent Efforts to
prepare a Development Plan promptly after the Effective Date. 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

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 3.2 Representatives and Assistance. Promptly (and no later than [*] ([*])
days) after the Effective Date, Magen shall designate in writing the Magen representative that shall have the responsibility of communicating with Lilly personnel regarding transition support, development and commercialization of Licensed Products
under this Agreement (including the provision of that individual’s name, job title, fax and phone number). Magen may change such representative from time to time by written notice to Lilly containing the name and contact information for the new
representative. Likewise, Lilly will promptly (and no later than [*] ([*]) days) after the Effective Date, designate in writing the Lilly representative that shall have the responsibility of communicating with Magen under this Agreement (including
the provision of that individual’s name, job title, fax and phone number) and providing all reasonable assistance with respect to the transfer and understanding of the Lilly Know-How and Lilly Patents and other matters relating to Licensed
Compounds in the Field. Lilly may change such representative from time to time by written notice to Magen containing the name and contact information for the new representative. Such representatives shall make themselves reasonably available for
regular conferences and meetings (by teleconference or as otherwise agreed) reasonable in frequency and duration to discuss transition and reporting matters under this Agreement, and the Lilly representative will use reasonable efforts (including
seeking and obtaining all applicable Information from appropriate sources in Lilly) to answer accurately any reasonable questions posed by the Magen representative relating to Licensed Compound, Licensed Product and/or the Lilly Know-How or Lilly
Patents. 
 3.3 Development Reporting. Magen shall provide semi-annual written reports to the Lilly representative
describing progress against the goals outlined in the Development Plan (to be solely prepared by Magen), and a description of any modifications in development strategy and goals as appropriate. 

3.4 Exclusive Use of Licensed Compounds by Magen. During the Term, Lilly covenants that it and its Affilates shall not:
(i) license, transfer, or otherwise grant any rights to a Third Party with respect to any of the Licensed Compounds, or permit the use of any Licensed Compounds by any Third Party, regardless of field; or (ii) research, develop,
commercialize, or sell the Licensed Compounds for its own account or for the benefit of any Affiliate, regardless of field. 

3.5 Exclusivity Regarding Dermatology Applications for VDRMs. For a period of [*] (*]) years from the Effective Date (the
“Magen Exclusivity Period”), so long as Magen is using Diligent Efforts to develop, or has developed, at least one Licensed Compound into a Licensed Product, the Magen programs to develop and launch Licensed Products shall represent
Lilly’s and its Affiliates’ only interest and activity with respect to development and commercialization of products based on a vitamin D receptor modulation mechanism in the Field. During the Magen Exclusivity Period, Lilly covenants that
it and its Affiliates shall not pursue development, commercialization, or sale of any products containing vitamin D receptor modulator compounds for use in the Field. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

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 3.6 Regulatory Matters. Magen and/or its Affiliates or sublicensees shall have
sole and exclusive rights and responsibility for seeking all necessary Regulatory Approvals to develop and commercialize the Licensed Products. Magen (or its Affiliate or sublicensee as applicable) shall hold legal title to all Marketing
Applications and all Regulatory Approvals throughout the world, and shall assume full responsibility for the clinical protocols developed in support of such Marketing Applications. Except in accordance with this Agreement, Lilly shall have no
financial obligation relating to Licensed Compounds or Licensed Products. Magen shall use Diligent Efforts to commence development on Licensed Compound and/or Licensed Product in accordance with the Development Plan. Magen will be responsible for
all regulatory requirements during development and commercialization of Licensed Compounds and Licensed Products. Nothing contained in this Section 3.6 or otherwise in this Agreement will be construed as a guarantee by Magen that development of
Licensed Product will be successful, that Regulatory Approval will be obtained for Licensed Product, or that the Licensed Product will be successfully commercialized. 

3.7 Adverse Event Reporting. Magen will report adverse events that occur during the development and marketing of Licensed
Products to the relevant regulatory authorities promptly according to the requirements of all applicable laws and regulations. A copy of all adverse event reports shall be provided to Lilly at the same time as or promptly after the report is
submitted to the regulatory authority. 
 3.8 Governmental Filings. Lilly and Magen each agree to prepare and file
whatever filings, requests or applications are required to be filed with any governmental authority in connection with the transfer of rights to Magen under this Agreement and to cooperate with one another as reasonably necessary to accomplish the
foregoing. 
 3.9 Compliance with Law. Magen will comply in all material respects with all applicable laws and
regulations relating to its development, manufacture, distributing, marketing, promotion, selling, importing and exporting of Licensed Products. Magen agrees and acknowledges that as holder of the regulatory documents with respect to Licensed
Products, it will have sole responsibility for, among other things, adverse event reporting and all other regulatory reporting and regulatory document maintenance obligations. 

3.10 Supply of Compound. Except as set forth in Section 2.3, Lilly shall have no obligation to supply quantities of
any Licensed Compound. 
 3.11 Cooperation. If either Party becomes engaged in or participates in any
investigation, claim, litigation or other proceeding with any Third Person, including the FDA, relating in any way to Licensed Compound or Licensed Product, the other Party will cooperate in all reasonable respects with such Party in connection
therewith, including, without limitation, using its reasonable efforts to make available to the other such employees who may be reasonably necessary with respect to such investigation, claim, litigation or other proceeding, provided that, for
purposes of this provision, reasonable efforts to make available any employee will be deemed to mean providing a Party with reasonable access to any such employee at a reasonable cost to be agreed in advance. 

 

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 ARTICLE 4 

PAYMENTS 

4.1 Initial License Fee. Within fifteen (15) days of the execution of this Agreement, Magen will pay to Lilly
the non-refundable sum of One Million Dollars ($1,000,000). 
 4.2 Milestone Payments. Within [*] ([*]) days of
Magen or its Permitted Sellers achieving a milestone event listed below with respect to a particular Licensed Product, Magen (or the applicable Permitted Seller) will notify Lilly in writing thereof and pay to Lilly the below-specified
non-creditable and non-refundable milestone payment applicable to such event. 
  

					
	Milestone Event	  	Milestone Payment	  	 
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	
			
	 [*]
	  	[*] Dollars ($[*])	  	

  
 [*] Confidential treatment
requested; certain information omitted and filed separately with the SEC. 
  

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 Each Milestone Payment shall be made only once at the first achievement of each applicable
milestone event with respect to each different Licensed Product. Further, if a particular Licensed Product has achieved Regulatory Approval (for a particular indication or set of indications), and such Licensed Product is subsequently developed and
achieves Regulatory Approval for one or more additional indications and is sold under a separate trade name for such additional indications, then for all milestone events achieved by such Licensed Product in such subsequent development efforts for
such additional indication, all applicable milestone payments shall be payable. Such milestone payments shall be made within [*] ([*]) days of First Commercial Sale of such Licensed Product under such separate trade name. 

If a Licensed Compound or Licensed Product fails in clinical development, after milestone payments have been paid based on such
development, and development of such Licensed Compound or Licensed Product is terminated (a “Failed Product”), and clinical development of another Licensed Product (the “Replacement Product”) is subsequently commenced to replace
such Failed Product, then all such milestone payments made for the Failed Product may be credited against milestone payments due for achievement of milestone events during the development of the Replacement Product. 

4.3 Royalty Payments. 

(a) Magen shall pay Lilly earned royalties as a percentage of Net Sales of Licensed Products. The royalty rate applicable to a
particular sale of Licensed Product is determined based on the actual incremental amount of Net Sales, through the date of the sale during the calendar year of sale, under the following schedule: 

 

			
	 Incremental Annual Net Sales
	  	 Royalty Rate

	 $[*] to $[*] million
	  	[*]% of Net Sales
	 $[*] million to $[*] million
	  	[*]% of Net Sales
	 $[*] million
	  	[*]% of Net Sales

 (b) If Magen
enters into a license agreement with a Third Person under Patent or other intellectual property rights controlled by such Third Person that claim or cover the manufacture, use or sale of a Licensed Product (a “Third Party License”) and
Magen reasonably believes such license is necessary for Magen to research, have researched, develop, have developed, make, have made, use, have used, manufacture, have manufactured, register, have registered, offer for sale, sell, have sold, import
and export, distribute, or market Licensed Compounds and Licensed Products in the Field in the Territory, and Magen makes payments to such Third Person under such Third Party License with respect to such Licensed Product, then Magen may credit [*]%
of such payment against the royalties payable to Lilly with respect to such Licensed Product, provided that in no event will the applicable royalty payable to Lilly with respect to such Licensed Product be reduced by more than [*]%. Royalty credits
accrued but not used to offset royalty payments owed to Lilly may be applied against future royalty obligations based on sales of such Licensed Product. For clarity, the credit referred to above shall not apply to any license that Magen acquires
that is preferred by Magen but Magen does not reasonably believe is necessary to the exploitation of such Licensed Product. 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 13 

 (c) Magen shall pay royalties due under this Section 4.3 concurrently with the
remittance of the royalty report in accordance with Section 4.4. For sales of a particular Licensed Product in a particular country (or jurisdiction), royalties shall be owed and payable under this Section 4.3 for such sales during the
Royalty Term applicable to such Licensed Product in such country (or jurisdiction). 
 (d) The Parties hereby acknowledge
and agree that the Lilly Patents and Lilly Know-How licensed pursuant to this Agreement justify royalties of differing amounts with respect to sales of the Licensed Product, which royalties could be applied separately to the Licensed Product
involving the exercise of such Lilly Patents and/or the incorporation of such Lilly Know-How, and that if such royalties were calculated separately, royalties relating to the Lilly Patents and royalties relating to the Lilly Know-How would last for
different terms. In light of such considerations and for reasons of convenience, the Parties have hereby determined that blended royalty rates for the Lilly Patents and the Lily Know-How licensed hereunder will apply during a single Royalty Term and
that the utilization of such blended royalty rates is advantageous to both Parties. 
 4.4 Record Retention, Royalty
Reports, and Royalty Payment Schedule. Magen shall keep (and shall cause its Affiliates and require its sublicensees to keep) complete and accurate books and records that are necessary to ascertain and verify royalty payments owed under
Section 4.3. Such records shall be kept in accordance with GAAP and Magen’s or its Permitted Sellers internal practices and procedures, consistently applied. Magen shall furnish Lilly with a quarterly report on Net Sales of Licensed
Product occurring in each particular Calendar Quarter, within [*] ([*]) days after the end of the Calendar Quarter. Such report shall include a written report detailing: (i) the Net Sales of Licensed Products for the previous Calendar Quarter,
broken down by country and between Magen and any Permitted Sellers, (ii) the royalty payment that is due and payable for the Net Sales in such Calendar Quarter, and (iii) the basis for calculating such royalty payment. Magen will mail such
reports to the attention of: Eli Lilly and Company, Lilly Royalty Administration in Finance, Drop Code 1063, Lilly Corporate Center, Indianapolis, Indiana, 46285. The amount of royalty payment due to Lilly shall be paid by Magen concurrently with
the remittance of each royalty report (that is, within [*] ([*]) days of the end of each Calendar Quarter). All amounts payable to Lilly under this Article 4 shall be paid in U.S. dollars by electronic wire transfer in immediately available funds to
an account designated in writing by Lilly (unless otherwise instructed by Lilly in writing). 
 4.5 Audits. Lilly
will have the right, during regular business hours and upon reasonable advance notice, to have such books and records of Magen described in Section 4.4 audited no more than [*] per calendar year so as to verify the accuracy of the information
previously reported to Lilly under Section 4.4. Any such audit shall be conducted by an independent certified public accounting firm of national standing selected by Lilly and approved by Magen (which firm may be Magen’s independent
certified public accounting firm), such approval not to be unreasonably withheld. Such audit may cover the period back to the beginning of two (2) full calendar years preceding the date of the request for such audit and may not cover any prior
period. Lilly may audit a given period of sales [*]. Such audit right shall continue for [*] ([*]) calendar years following expiration or termination of the Agreement. 
  

 [*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 14 

 Such accountants will keep confidential any information obtained during such audit and will
report to Lilly only their conclusions. The cost of such audit will be borne by [*]; however, if as a result of such audit the Parties agree that the actual amount of royalties owed to Lilly, for the period audited, is more than the amount of
royalties paid by Magen for the period that is the subject of the audit by greater than [*] percent ([*]%) of such amount owed, then the cost of the audit will be borne by Magen. Within [*] ([*]) days after both Parties have received a copy of an
audit report, Magen or Lilly, as appropriate, will compensate the other Party for payment errors or omissions revealed by the audit. Magen will include in all sublicenses granted in accordance herewith, and any other agreements enabling a Third
Person to be a Permitted Seller, an audit provision substantially similar to the foregoing requiring such Permitted Seller to keep full and accurate books and records relating to the Licensed Product and granting Lilly the right to have an
independent public accounting firm audit the accuracy of the information reported by the sublicensee in connection therewith. 

4.6 Taxes And Currency. All payments made under this Agreement shall be in United States dollars. Any and all taxes levied on any
payments by Magen under this Agreement shall be the liability of and paid by Lilly. If laws or regulations require the withholding of such taxes, the taxes will be deducted by Magen from the payment and remitted by Magen to the proper tax authority,
provided that Magen will furnish Lilly with a copy of the official tax receipt on such withholdings as soon as practicable after such withholding, and give Lilly such assistance, at Lilly’s expense, as may be reasonably necessary to enable or
assist Lilly to claim exemption or take credit therefrom. Proof of payment shall be provided to Lilly within [*] ([*]) days after payment. Magen will cooperate, at Lilly’s expense, in pursuing tax refunds, if such refund is appropriate in
Lilly’s determination. 
 4.7 Late Payment. Any amounts not paid by Magen when due under this Agreement will be
subject to interest from and including the date payment is due through and including the date upon which Lilly has collected the funds in accordance herewith at a rate equal to the lesser of (i) the sum of [*] percent ([*]%) plus the United
States prime rate of interest quoted in the Money Rates (or equivalent) section of the Wall Street Journal per annum, calculated daily on the basis of a three hundred sixty (360) day year, or (ii) the maximum interest rate allowed
by law. 
 ARTICLE 5 

INTELLECTUAL PROPERTY MATTERS 

5.1 Prosecution and Maintenance of Lilly Patents. 

(a) Lilly shall be responsible for the preparation, prosecution and maintenance of all the Lilly Patents (collectively,
“Patent Responsibilities”) under this Agreement. During such efforts, Lilly shall be obligated to provide Magen copies of all documents proposed to be filed with a patent office (reasonably in advance of such filing) and
all correspondence with any patent office (including office actions and the like) relating to such efforts, to consult with Magen, and to reasonably incorporate Magen’s comments with respect to matters related to prosecution and maintenance of
the Lilly Patents, insofar as the prosecution and maintenance of the Lilly Patents may reasonably be considered to affect Magen’s development and commercial interests described herein. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 15 

 (b) If Lilly may determine that it no longer desires to fulfill the Patent
Responsibilities for any of the Lilly Patents under this Agreement or if Lilly decides to allow any Lilly Patent to lapse or desires to abandon or discontinue prosecution of any Lilly Patent, Lilly shall promptly so notify Magen, and in such case,
at Lilly’s sole discretion, either (i) Magen shall thereafter assume such Patent Responsibilities (except as otherwise provided below) as Magen desires with respect to the affected Lilly Patent(s) or (ii) Lilly shall assign the Lilly
Patents to Magen (in which case Magen shall have the right, at its sole discretion, to prosecute, maintain and enforce such assigned Patents). Further, if Magen reasonably believes that Lilly is prosecuting any Lilly Patent in a manner that
negatively affects Magen’s development and commercial interests, or that Lilly’s inaction is likely to result in the abandonment of any Lilly Patent(s), then, upon Magen’s request, Lilly shall transfer the Patent Responsibilities for
such Lilly Patent(s) to Magen or, in Lilly’s sole discretion assign such Lilly Patents to Magen. When Magen assumes any Patent Responsibilities or upon an assignment of the Lilly Patents, Lilly shall provide Magen with all Information and
documents concerning the patent portfolio as shall be necessary or helpful to Magen in assuming such Patent Responsibilities or assignment. If Lilly determines to have Magen undertake the Patent Responsibilities, Lilly will irrevocably designate and
appoint Magen and its duly authorized officers and agents as Lilly’s agent and attorney-in-fact with respect to the Lilly Patents for which Lilly has transferred Patent Responsibilities to Magen, to act for and in Lilly’s behalf to
execute, deliver and file any and all documents with the same legal force and effect as if executed by Lilly. 
 (c)
During the period when Magen is assuming the Patent Responsibilities, Magen shall, within [*] ([*]) days after each calendar year, provide Lilly with a written report describing the status of all Lilly Patents, including the patent country, patent
and application numbers, filing date, issue date, expiration date, and any other relevant information reasonably requested by Lilly. Such report shall be mailed to Eli Lilly and Company, Deputy/Patent General Counsel, Drop Code 1104, Lilly Corporate
Center, Indianapolis, Indiana, 46285. 
 (d) If, after Magen assumes the Patent Responsibilities, Magen decides to allow
any Lilly Patent to lapse or wishes to abandon or discontinue prosecution of any Lilly Patent, Magen shall notify Lilly in writing not less than [*] ([*]) days prior to taking such action, and Lilly shall have the right to assume the responsibility
for such Lilly Patents. If Lilly does so, then Magen shall surrender to Lilly its rights under Article 2 under the patent or patent application in the country or countries so affected, and Lilly may assume control of the same at Lilly’s sole
expense (it being understood that all other rights under the license to such Lilly Patent in other countries and to all other Lilly Patents under Article 2 continue). 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 16 

 5.2 Enforcement of Intellectual Property Rights. Magen and Lilly will promptly notify
the other of any infringement or suspected infringement that may come to its notice of any intellectual property rights relating to the Licensed Products, including, without limitation, the Lilly Patents and Lilly Know-How, and will provide the
other Party with information with respect thereto. If a Third Person infringes or misappropriates any Lilly Patent or Lilly Know-How, Magen (or its Affiliate or sublicensee) will have the first right (but not the obligation), at its own expense, to
pursue any and all injunctive relief, and any or all compensatory and other remedies and relief (collectively, “Remedies”), against such Third Person, and Lilly will have the right to participate in such action at its own
expense. Should Magen determine not to pursue Remedies with respect to any such infringement or misappropriation of Lilly Patents or Lilly Know-How within [*] ([*]) days after receipt of written notice from Lilly requesting Magen to do so, then
Lilly will have the right (but not the obligation), at its own expense, to pursue Remedies against such Third Person, and Magen shall have the right to participate in such action at its own expense. 

5.3 Assistance and Cooperation. If a Party pursues Remedies hereunder with respect to infringement or misappropriation of Lilly
Patents or Lilly Know-How, the other Party will use all reasonable efforts to assist and cooperate with the Party pursuing such Remedies, including joining in any action or providing a power of attorney if necessary. Each Party will bear its own
costs and expenses relating to such pursuit. Any damages or other amounts collected will be distributed, first, to the Party that pursued Remedies to cover its costs and expenses; and second, to the other Party to cover its costs and expenses, if
any, relating to the pursuit of such Remedies; and any remaining amount will be distributed to the Party that pursued the Remedies, provided that any recovery by Magen attributable to lost sales of Licensed Product shall be deemed Net Sales under
this Agreement, occurring at the time such recovery is received by Magen. 
 5.4 Settlement of Litigation. No settlement,
consent judgment or other final disposition of an action for infringement or validity may be entered into as to any Lilly Patent or Lilly Know-How without Lilly’s prior written consent, which consent shall not be unreasonably withheld.

 5.5 Infringement of Third Person Rights. If a Third Person institutes a patent, trade secret or other infringement
suit against Magen or a Permitted Seller during the term of this Agreement, alleging that the manufacture, marketing, sale, use or importation of a Licensed Product infringes one or more patent or other intellectual property rights held by such
Third Person, then Magen (or its Affiliate or sublicensee, as applicable) will have the sole right (but not the obligation), at [*] expense, to assume direction and control of the defense of such claims. Lilly will use all reasonable efforts to
assist and cooperate with Magen in Magen’s defense of the claims, including providing a power of attorney if necessary. Magen will not have the right to settle or otherwise dispose of any such claim in a manner that materially negatively
impacts Lilly’s interest in the Lilly Patents without the consent of Lilly, which consent will not be unreasonably withheld. 

5.6 Magen Technology. Magen will be the sole and exclusive owner of the Magen Technology, with the sole rights, at its discretion,
to seek to obtain Patents and other applicable intellectual property protection covering any such Magen Technology, at it expense. Magen shall have the sole rights to enforce any such rights and shall bear all expenses incurred in enforcing and
maintaining all such rights. 
  
 [*] Confidential treatment
requested; certain information omitted and filed separately with the SEC. 
  

 17 

 5.7 Trademarks. Magen will own and be responsible for all trademarks related
to its marketing of Licensed Product and will be responsible, in its sole discretion, for registering, defending and maintaining such trademarks. 

5.8 Patent Cooperation. Each Party hereby agrees: 

(a) to make its employees, agents and consultants reasonably available to the other Party (or the other Party’s authorized
attorneys, agents or representatives) at the other Party’s expense, to the extent reasonably necessary to enable the Party responsible for prosecuting the Lilly Patents to undertake preparation, filing, prosecution and maintenance of the Lilly
Patents; and 
 (b) to cooperate, if necessary and appropriate, with the other Party in gaining patent term extensions
wherever applicable to Lilly Patents. 
 ARTICLE 6 

CONFIDENTIALITY 

6.1 Confidential Information. The Parties agree that, unless the Receiving Party obtains the prior written consent of the
Disclosing Party, at all times during the term of this Agreement and for a [*] ([*])-year period following its expiration or earlier termination, the Receiving Party will keep completely confidential, will not publish or otherwise disclose to any
Third Party and will not use for any purpose other than as contemplated by this Agreement any Confidential Information of the Disclosing Party. 

6.2 Limited Disclosure Permitted. Each Receiving Party may disclose specific Confidential Information of the Disclosing
Party to the extent that such disclosure is: 
 (a) made in response to a valid order or subpoena of a court of competent
jurisdiction or other governmental body of a country or any political subdivision thereof of competent jurisdiction; provided, however, that the Receiving Party will first have given reasonable notice to the Disclosing Party (if practicable) and
given the Disclosing Party a reasonable opportunity to quash such order or subpoena and to obtain a protective order requiring that the Confidential Information and documents that are the subject of such order or subpoena be held in confidence by
such court or governmental body or, if disclosed, be used only for purposes for which the order or subpoena was issued; provided further, however, that if a disclosure order or subpoena is not quashed or a protective order is not obtained, the
Confidential Information disclosed in response to such court or governmental order or subpoena will be limited to that information that is legally required to be disclosed in such response to such court or governmental order or subpoena; 

(b) otherwise required by law, in the opinion of legal counsel to the Receiving Party; provided, however, that the Receiving Party
will first have given reasonable notice to the 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 18 

 
Disclosing Party (if practicable) and given the Disclosing Party a reasonable opportunity to obtain a protective order or confidential treatment requiring that the Confidential Information and
documents that are the subject thereof be held in confidence by the recipient or, if disclosed, be used only for purposes required by such law; provided further, however, that if a protective order is not obtained, the Confidential Information so
disclosed will be limited to that information that is legally required to be disclosed as required by applicable law. 

(c) made by the Receiving Party to the governmental or regulatory authority, including FDA, as required to conduct Clinical Trials
or obtain or maintain marketing approval for the Licensed Product, provided that reasonable effort will be taken to ensure confidential treatment of such information; 

(d) made by the Receiving Party to a Third Person as may be necessary or useful in connection with the manufacture, development
and commercialization of the Licensed Product as contemplated under this Agreement, provided that the Receiving Party will in each case obtain from the proposed Third Person recipient a written confidentiality agreement containing confidentiality
and non-use obligations no less protective than those set forth in this Agreement; 
 (e) made by the Receiving Party to
a United States or foreign tax authority; 
 (f) made by the Receiving Party to its representatives or to Third Persons
in connection with financing or strategic activities (such as acquisition, mergers or alliances) of the Receiving Party; provided, however, that: (i) each such representative or Third Person has a need to know such Confidential Information for
purposes of this Agreement or such activities and has an obligation to maintain the confidentiality of such information, (ii) the Receiving Party informs each representative or Third Person receiving Confidential Information of its confidential
nature, and (iii) the Receiving Party will be responsible for any breach of this Article 7 by any of its representatives or such Third Persons to the same extent as if the breach were by the Receiving Party; 

(g) made by a Receiving Party or any representative of the Receiving Party in the filing or publication of patents or patent
applications relating to Lilly Patents, Lilly Know-How, Magen Technology or any invention relating to the Licensed Compounds or Licensed Products, to the extent such disclosure in the filing or publication of the patent or patent application is
reasonably necessary for support of the patent or patent application; 
 (h) made by a Receiving Party in order to comply
with applicable securities law disclosure requirement or any disclosure requirements of any applicable stock market or securities exchange. 

6.3 Disclosure of Agreement. Except as contemplated herein, neither Party shall disclose this Agreement (nor a redacted
version thereof) to any Third Person without the prior written consent of the other Party. Without limitation, these prohibitions apply to press releases, annual reports, prospectuses, public statements, educational and scientific conferences,
promotional materials, governmental filings and discussions with public officials, securities analysts and the media. However, subject to the requirements for review and approval that 

 

 19 

 
follow, this provision does not apply to a disclosure regarding this Agreement, which counsel to a Party has advised is required by Applicable Laws, to regulatory agencies such as the FDA,
Securities and Exchange Commission (“SEC”), Federal Trade Commission or Department of Justice or any applicable stock market or securities exchange. This includes requests for a copy of this Agreement or related information
by tax authorities. Notwithstanding the foregoing, Receiving Party may disclose the terms contained in this Agreement to Third Persons in connection with financing or strategic activities of the Receiving Party as set forth in Section 6.2(f)
and as provided in Section 6.4. 
 If any Party to this Agreement determines a release of information regarding the
existence or terms of this Agreement is required by Applicable Laws, prior to any release of such information, that Party will notify the other Party in writing as soon as practical and provide as much detail as possible in relation to the
disclosure required and, where possible under Applicable Laws, will endeavor in good faith to provide the other Party with a minimum of [*] ([*]) business days to review the proposed public statement. The Parties will then discuss what information,
if any, will actually be released and that Party shall obtain the other Party’s prior written consent or conduct any actions it may reasonably take to prevent or limit the requested disclosure. In addition, Lilly shall have the right to review
and comment on a redaction of this Agreement required by the SEC or other agencies and Magen shall use good faith in taking Lilly’s comments into account prior to releasing the redaction to the SEC or such agency. 

6.4 Lilly Disclosure Rights. Notwithstanding any other provision of this Agreement to the contrary but subject to the limitations
set forth in this Section 6.4(f), Lilly shall have the right to sell, transfer, assign, convey, deliver or otherwise dispose of ( hereafter “Transfer” ) all or a part of, Lilly’s rights to the royalty payment and other payments
referred to in Article 4 (the “Payment Rights”). If Lilly determines to Transfer the Payment Rights, Lilly shall have the following rights in connection with such Transfer, subject to the requirements set forth hereafter in this Section:

 Lilly may provide to the Person buying or otherwise acquiring such rights by virtue of the Transfer (the
“Transferee”) a copy of this Agreement. 
 (a) Lilly may provide to the Transferee a copy of any royalty report
or information concerning royalties obtained in accordance with Section 4.4; any report or information obtained as a result of an audit conducted in accordance with Section 4.5; and the patent status report described in
Section 5.1(b). 
 (b) Lilly may provide to the Transferee notice of the exercise of any rights pursuant to Sections
2.5 and 2.6. 
 (c) Lilly may provide Transferee a copy of each report and a copy of information that Lilly receives
under this Agreement if such report or information relates to Payment Rights under this Agreement, litigation or may affect the payment of the royalty, 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 20 

 
directly or indirectly. 
 (d) Lilly may notify the Transferee in
writing of any actual or threatened (i) default (including the failure to pay royalties when due), (ii) breach, (iii) notice of, and recovery plan for, an Event of Force Majeure, (iv) suspension of compliance or performance,
(v) termination (in part or in whole) under or of this Agreement, (vi) insolvency or bankruptcy of Magen (vii) commencement of (or receipt of notice of the actual or threatened commencement of) any dispute, claim, suit, litigation or
arbitration proceeding related to this Agreement, including those alleging a Third Person’s infringement or misappropriation of any of the patents, patent applications or know-how licensed, sublicensed, or assigned under this Agreement, or
(viii) receipt by Lilly of any notice relating to the status, validity, or change thereto, of any of the Patents or Know-How licensed under this Agreement that describes either a material development or an event that materially and negatively
affects any rights under this Agreement or describes an event that may result in a decrease in the payments made pursuant to the Payment Rights. or (ix) any report, information, event or occurrence that may have a materially negative impact on
the payment of the royalty under this Agreement. 
 (e) Lilly may notify Transferee in writing if Lilly learns of any
certification filed under the U.S. “Drug Price Competition and Patent Term Restoration Act of 1984” claiming that a patent licensed, sublicensed or assigned under this Agreement is invalid or that any infringement will not arise from the
manufacture, use, import, offer for sale or sale of any product by a Third Person. 
 (f) The foregoing rights shall be
subject to the following: 
 (i) Lilly shall give Magen prior written notice of the proposed Transfer and identify the
Transferee for Magen. 
 (ii) Lilly shall not effect a Transfer to a Competitor of Magen without prior Magen’s
written consent, which shall not be unreasonably withheld. A “Competitor” shall be any Third Person that is developing or commercializing a product in the Field. 

(iii) Prior to completing a Transfer Lilly shall provide Magen with the proposed confidentiality agreement between Lilly and the
Transferee for Magen’s review and approval. Magen shall be entitled to propose reasonable changes to the proposed confidentiality agreement as necessary for it to be consistent with the confidentiality provisions of this Agreement. 

Although Payment Rights may be assigned and sold to Transferee, Lilly will continue to collect all the royalties and other payment with respect thereto,
as well as the information described above, directly and then forward such items on to Transferee. No Transferee shall further Transfer any Payment Rights without the prior written consent of Magen. Lilly will remain the party to, and otherwise
retain all rights and obligations under, this Agreement, and, as a result, there will be no amendment to this Agreement and no change in the payment procedures or other terms of this Agreement related to the payment of the royalties. Without
limiting the foregoing, no Transferee shall have any rights directly against Magen to enforce any of the Payment Rights 

 

 21 

 
or any term or provision of this Agreement, and the assignment or sale of Payment Rights shall not impose upon Magen any additional obligations of any kind either to Lilly or to a Transferee.

 Transferee shall be obligated to keep all information disclosed to it confidential in accordance with and subject to the terms and conditions
of normal and customary confidentiality provisions that are at least as restrictive as those of this Article 6. Such confidentiality provisions shall be promptly furnished to Magen and shall name Magen as a third party beneficiary thereof and give
Magen the right to enforce the terms thereof. 
 6.5 Survival. The confidentiality and non-use obligations of this
Article 6 shall survive the termination or expiration of this Agreement. 
 ARTICLE 7 

REPRESENTATIONS, WARRANTIES, COVENANTS, AND DISCLAIMERS 

7.1 General Warranties. Each Party represents and warrants to the other Party that, as of the Effective Date: 

(a) it is a company duly organized, validly existing, and, if relevant in its jurisdiction of formation, in good standing under
the laws of the jurisdiction in which it is formed; 
 (b) it has the power and authority and the legal right to enter
into this Agreement and perform its obligations hereunder; 
 (c) it has taken all necessary corporate action on its part
required to authorize the execution and delivery of this Agreement; 
 (d) has duly executed and delivered the Agreement,
which constitutes a legal, valid, and binding obligation of it and which is enforceable against it in accordance with the Agreement’s terms, except as such enforcement may be limited by bankruptcy laws and other debtors’ rights and by
equitable principles; 
 (e) to its knowledge, there is no litigation or proceeding pending or overtly threatened against
or involving such Party in any court or before any agency or regulatory body which could result in a judgment or liability which would adversely affect such Party’s ability or right to carry on its business as now conducted or to develop or
commercialize Licensed Product as intended under this Agreement. 
 7.2 Lilly Warranties. Lilly hereby represents
and warrants to Magen that: 
 (a) there is no litigation or proceeding pending against or involving Lilly or any of its
Affiliates in any court or before any agency or regulatory body that alleges that any of its activities relating to any Licensed Compounds or Licensed Product have violated, infringed or 

 

 22 

 
misappropriated any of the intellectual property rights of any other Person (nor has it received any written communication threatening such litigation); 

(b) to the best of its knowledge, no litigation or other proceeding has been otherwise threatened alleges that any of its
activities relating to any Licensed Compound or Licensed Product have violated, infringed or misappropriated any of the intellectual property rights of any other Person; 

(c) Lilly owns all right, title and interest in and to the Lilly Know-How and Lilly Patents, and Lilly has the full legal rights
and authority to grant the rights granted to Magen under this Agreement, without conflicting with any rights granted by Lilly (or its Affiliate) to or any agreement with any Third Person; 

(d) the Lilly Know-How and Licensed Compound and related materials and Information are licensed (or transferred, as applicable) to
Magen free and clear of any Encumbrances; 
 (e) no security interest or other Encumbrances has been granted or exists
that burdens or covers any Lilly Patent; 
 (f) Lilly is not aware that any of the Lilly Patents are invalid or
unenforceable, and is not aware of any facts that lead Lilly to believe that any Lilly Patent is or will be held invalid or unenforceable; 

(g) to the best of Lilly’s knowledge as of the Effective Date, there is no unauthorized use, infringement or misappropriation
of any of its intellectual property rights licensed hereunder to Magen; 
 (h) to the best of Lilly’s knowledge,
there is no intellectual property which could act as a blocking patent to the Lilly Patents or Lilly Know-How or that would be infringed or misappropriated by the development, manufacture, use or sale of Licensed Products. 

7.3 License Authority. Lilly hereby represents, warrants and covenants that it has, and that it shall maintain, the full
right and power to grant the exclusive licenses set forth in Section 2.1 in the manner and to the extent set forth therein, and to satisfy its other commitments and obligations under this Agreement. 

7.4 No Debarment. Each Party represents and warrants to the other that it will comply at all times with the provisions of
the Generic Drug Enforcement Act of 1992 and upon request each Party will certify in writing to the other Party that neither such Party, its employees, nor any Person providing services for such Party under this Agreement has been debarred under the
provisions of such Act. 
 7.5 No Licenses. Lilly has not licensed the Lilly Patents to any Third Person outside the
Field. 
 7.6 DISCLAIMER OF IMPLIED WARRANTIES. EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE 7, LILLY MAKES NO
REPRESENTATION OR 
  

 23 

 WARRANTY AS TO THE LILLY PATENTS, LILLY KNOW-HOW, COMPOUND, COMPOUND SUPPLY OR PRODUCT,
EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND LILLY SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. FURTHER,
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY UNDER THIS AGREEMENT, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND EACH PARTY SPECIFICALLY DISCLAIMS ANY AND
ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE. Without limiting the foregoing, Magen acknowledges that it has not and is not relying upon any implied warranty of merchantability
or of fitness for a particular purpose or otherwise, or upon any representation or warranty whatsoever as to the prospects (financial, regulatory or otherwise), validity, or likelihood of success of Licensed Compound or Licensed Product after the
Effective Date. Further, Lilly acknowledges that Magen makes no, and hereby disclaims any, representation, warranty or guarantee that the development or commercialization of any Licensed Product will be successful or achieved. 

ARTICLE 8 

INDEMNIFICATION 

8.1 Indemnification Obligations. 

(a) By Magen. Except to the extent such Damages are due to negligence, gross negligence or willful misconduct by Lilly, its
Affiliates or their officers, directors, employees or agents, Magen shall defend, indemnify and hold harmless Lilly and its Affiliates and their officers, directors, employees and agents against any and all Damages incurred by any of them resulting
from or arising out of any Third Person claim, suit, action or proceeding to the extent based upon: 
 (i) any material
breach of any representation or warranty made by Magen in this Agreement; 
 (ii) the handling, possession, development,
manufacturing, marketing, distribution, promotion, sale or use of the Licensed Product by Magen or a Permitted Seller; 

(iii) the exercise of any right(s) under the Lilly Patents or Lilly Know-How by Magen, its Affiliates, Permitted Sellers and any
permitted sublicensees; 
 (iv) Magen’s failure to comply in all material respects with Applicable Laws in
connection with the performance of its obligations hereunder; or 
  

 24 

 (v) Any other activities conducted by Magen, its Affiliates, Permitted Sellers and
any permitted sublicensee with respect to Licensed Compound conducted after the Effective Date. 
 (b) By Lilly.
Except to the extent such Damages are due to negligence, gross negligence or willful misconduct by Magen, its Affiliates or their officers, directors, employees or agents, Lilly shall defend, indemnify and hold harmless Magen, its Affiliates and
their officers, directors, employees and agents against any and all Damages incurred by any of them resulting from or arising out of any Third Party claim, suit, action or proceeding to the extent based upon: 

(i) any material breach of any representation, warranty or covenant made by Lilly in this Agreement; 

(ii) any activities conducted by Lilly and its Affiliates with respect to Licensed Compounds; or 

(iii) the practice of any Lilly Patents or Lilly Know-How and/or development and commercialization of any product by or on behalf
of Lilly or any of its Affiliates or licensees (other than Magen). 
 8.2 Notice and Opportunity To Defend. 

(a) Notice. Promptly after receipt by a Party hereto of notice of any claim which could give rise to a right to
indemnification pursuant to Section 8.1, such Party (the “Indemnitee”) will give the other Party (the “Indemnifying Party”) written notice describing the claim in reasonable detail. The failure of
an Indemnitee to give notice in the manner provided herein will not relieve the Indemnifying Party of its obligations under this Article 9, except to the extent that such failure to give notice materially prejudices the Indemnifying Party’s
ability to defend such claim. 
 (b) Defense of Action. In case any action that is subject to indemnification
under this Article 8 shall be brought against an Indemnitee and it shall give written notice to the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to participate and, if it so desires, to assume the defense
with counsel reasonably satisfactory to such Indemnitee. After notice from the Indemnifying Party to the Indemnitee of its election to assume the defense, the Indemnifying Party shall not be liable to such Indemnitee under this Article 9 for any
fees of other counsel or any other expenses, in each case subsequently incurred by such Indemnitee in connection with the defense. 

(c) Indemnitee’s Separate Counsel. Notwithstanding the foregoing, the Indemnitee shall have the right to employ
separate counsel and to participate in the defense of such action, and the Indemnifying Party shall bear the reasonable fees, costs and expenses of such separate counsel if: (i) the use of counsel chosen by the Indemnifying Party to represent
the Indemnitee would present such counsel with a conflict of interest, and the Indemnifying Party does not elect to engage new counsel without such a conflict; (ii) the Indemnifying Party shall not have employed counsel to represent the
Indemnitee within a reasonable time after notice of the institution of such action; or (iii) the Indemnifying Party shall authorize the Indemnitee in writing to employ separate counsel at the Indemnifying Party’s expense. 

 

 25 

 (d) Settlement. If an Indemnifying Party assumes the defense of such action,
no compromise or settlement thereof may be effected by the Indemnifying Party without the Indemnitee’s written consent, which consent shall not be unreasonably withheld or delayed, unless there is no finding or admission of any violation of law
or any violation of the rights of the Indemnitee and no effect on any other claims that may be made against the Indemnitee. In any event, the Indemnitee and the Indemnifying Party may participate, at their own expense, in the defense of such
asserted claim. 
 (e) Conduct of Defense. Notwithstanding anything to the contrary in this Section 8.2, the
Party conducting the defense of a claim will (1) keep the other Party informed on a reasonable and timely basis as to the status of the defense of such claim (but only to the extent such other Party is not participating jointly in the defense
of such claim), and (2) conduct the defense of such claim in a prudent manner. 
 8.3 Survival. The
provisions of this Article 8 will survive any termination or expiration of this Agreement. Each Indemnified Party’s rights under this Article 8 will not be deemed to have been waived or otherwise affected by such Indemnified Party’s waiver
of the breach of any representation, warranty, agreement or covenant contained in or made pursuant this Agreement, unless such waiver expressly and in writing also waives any or all of the Indemnified Party’s right under this Article 8.

 ARTICLE 9 

TERM AND TERMINATION 

9.1 Term. The term of this Agreement will begin upon the Effective Date and, unless sooner terminated under this
Article 9, will continue in full force and effect on a country-by-country basis in the Territory until Magen and its Permitted Sellers have no remaining royalty payment obligations in a specific country under Article 4. Upon expiration of such
royalty obligations in a given country, Magen will have a fully paid up, perpetual, irrevocable license under the Lilly Know-How in such country. 

9.2 Material Breach by Magen. 

(a) Upon any material breach of this Agreement by Magen, Lilly may, at its option (and except as otherwise provided below),
terminate this Agreement upon [*] ([*]) days written notice to Magen; provided that such termination shall not become effective at the end of such [*] ([*]) day period if Magen cures such breach during such [*] ([*]) day period; and provided
further that in the case of a breach that cannot be cured within such [*] ([*]) day period, Lilly may terminate this Agreement following such [*] ([*]) day period only if Magen shall have failed to commence substantial remedial actions within such
[*] ([*]) day period and to use best efforts to pursue the same. 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 26 

 (b) Notwithstanding the foregoing, to the extent a material breach or material
default of this Agreement by Magen affects Magen’s performance and Lilly’s rights under this Agreement as it relates to one or more countries, but not all countries, Lilly may terminate this Agreement in accordance with this
Section 9.2 as to the affected country or countries only, and in such case this Agreement will remain in full force and effect with respect to the countries that are not terminated. 

(c) Notwithstanding the provisions of subsection (a) above, once Magen (or its Affiliate or sublicensee) has obtained
Regulatory Approval and commenced commercial sales of a Licensed Product, Lilly may not terminate this Agreement based on the uncured breach of Magen except for uncured material breach of Magen’s payment obligations under this Agreement.
Lilly shall retain, however, all other remedies and rights at law and at equity with respect to any breach by Magen. 
 9.3
Termination for Bankruptcy. Notwithstanding any other provision of this Article, to the extent enforceable under applicable law Lilly may terminate this Agreement in its entirety with immediate effect if Magen: 

(a) makes a general assignment for the benefit of creditors; 

(b) petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve
its business or any substantial part of its assets; 
 (c) commences under the laws of any jurisdiction any
proceeding for relief under the U.S. Bankruptcy Code, as amended (“Code”) or similar bankruptcy laws in applicable jurisdictions, involving its insolvency, reorganization, adjustment of debt, dissolution, liquidation or any other similar
proceeding for the release of financially distressed debtors; or 
 (d) becomes a party to any proceeding or
action of the type described above in (c), and such proceeding or action remains undismissed or unstayed for a period of more than [*] ([*]) days. 

9.4 Rights Upon Termination by Lilly. If Lilly terminates this Agreement under Section 9.2, 9.3 or 10.3, then the following
will take effect upon the effective date of such termination: 
 (a) Reversion of Lilly Patents and Lilly Know-How and
Termination or Assignment of Sublicenses. All rights under the Lilly Patents and the Lilly Know-How granted by Lilly to Magen pursuant to Article 2 will terminate and all rights granted therein will immediately revert to Lilly with no further
notice or action required on Lilly’s behalf; provided, however, that if the termination relates only to a specific country, then only the license pertaining to such country will revert to Lilly hereunder. Notwithstanding the foregoing, any
sublicense granted by Magen hereunder that is in compliance with the terms of Section 2.2: (i) to one pharmaceutical or biotechnology company having a market capitalization of at least [*] dollars ($[*]) pursuant to which such sublicensee
acquires rights to commercialize and/or distribute Licensed Products worldwide (which may exclude [*]) or in at least [*], and (ii) to one pharmaceutical or biotechnology company having a market capitalization of at least [*] dollars ($[*]) to
which such sublicensee acquires rights to commercialize and/or distribute Licensed Products in [*] (including at least [*] and [*]) or [*] (including at least [*]) shall survive any such termination and shall automatically be assigned by Magen to
Lilly such that such sublicense becomes a direct license between Lilly and such sublicensee if such sublicensee cures the breach that gave rise to the termination of this Agreement by Lilly. Any other sublicense granted by Magen hereunder shall at
Lilly’s sole discretion, either be terminated, or if agreed to by Lilly in writing, assigned by Magen to Lilly such that they become direct licenses between Lilly and the applicable sublicensee. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 27 

 (b) Reversion of Patent Maintenance Responsibilities. Upon the effective date of the
termination of this Agreement, the sole responsibility for preparing, filing, prosecuting and maintaining the Lilly Patents will revert back to Lilly with no further notice or action required on Lilly’s behalf; provided, however, that if the
termination relates only to a specific country, then only the patent maintenance obligations pertaining to such country will revert to Lilly hereunder. In such case, Magen will maintain its Patent Responsibilities for all other Lilly Patents.

 (c) Transfer of Regulatory Documents. To the extent requested by Lilly, Magen shall promptly thereafter transfer
possession and the exclusive license under (and shall cause all contractors used by Magen to provide services hereunder to transfer possession and license) to Lilly (and in Lilly’s name where appropriate) of all Clinical Trial data and
information, all Clinical Trial databases, all data generated in support of Marketing Applications, Regulatory Approvals or other regulatory commitments (e.g., toxicology and stability data) and regulatory documents (including any
correspondence between Magen and any sublicensee or contractor of Magen and any regulatory agency relating thereto) that were created and/or developed under the terms of this Agreement for Licensed Compound or Licensed Product (collectively, the
“Regulatory Documents”). Lilly shall compensate Magen for its access to and use of such Regulatory Documents, in accordance with the agreed terms as above. Should Lilly elect to sublicense, or to co-market or co-promote
Licensed Product with a Third Person in the Territory, Lilly shall have the right to provide appropriate access to such Clinical Trial data or information, Clinical Trial databases, all data generated in support of any Marketing Application,
Regulatory Approval other regulatory commitment, or Regulatory Document to such Third Person, subject to payment of the compensation amounts as agreed for any such access and use by such Third Person. 

9.5 Termination by Magen. 

(a) Magen may terminate this Agreement at any time upon [*] ([*]) days written notice to Lilly, if the results of any development program
for a Licensed Product, in Magen’s sole judgment, do not warrant further development work, or for any safety, toxicity or efficacy issues in Licensed Compounds or Licensed Products. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 28 

 (b) Upon any material breach of this Agreement by Lilly, Magen may, at its option, terminate
this Agreement upon [*] ([*]) days written notice to Lilly. Such termination shall become effective at the end of such [*] ([*]) day period unless Lilly cures such breach or violation during such [*] ([*]) day period; provided, however, in the case
of a breach or violation that cannot be cured within such [*] ([*]) day period, Magen may terminate this Agreement following such [*] ([*]) day period only if Lilly shall have failed to commence substantial remedial actions within such [*] ([*]) day
period and to use best efforts to pursue the same. 
 (c) Notwithstanding any other provision of this Article, to the extent
enforceable under applicable law Magen may terminate this Agreement in its entirety with immediate effect if Lilly: 

(i) makes a general assignment for the benefit of creditors; 

(ii) petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve
its business or any substantial part of its assets; 
 (iii) commences under the laws of any jurisdiction any
proceeding for relief under the U.S. Bankruptcy Code, as amended (“Code”) or similar bankruptcy laws in applicable jurisdictions, involving its insolvency, reorganization, adjustment of debt, dissolution, liquidation or any other similar
proceeding for the release of financially distressed debtors; or 
 (iv) becomes a party to any proceeding or
action of the type described above in (iii), and such proceeding or action remains undismissed or unstayed for a period of more than [*] ([*]) days. 

(d) If Magen terminates this Agreement under Section 9.5(a), then the terms of Section 9.4 shall apply. If Magen terminates
this Agreement under Section 9.5(b) or (c), or 10.3, then Magen shall retain any and all licenses and other rights granted to it by Lilly pursuant to this Agreement (unless otherwise terminated pursuant to the terms of this Agreement), and
Magen’s payment obligations under Article 4 and other relevant provisions shall continue in full force and effect, but all of Magen’s obligations to use Diligent Efforts under the terms of the Agreement will terminate. 

9.6 Residual Obligation Upon Termination. Termination of this Agreement for any reason will not relieve either Party of any
obligation or liability accruing prior thereto, including the payment of any milestone payments or royalties amounts, which have accrued as of the date of termination or expiration and will be without prejudice to the rights and remedies of either
Party with respect to any antecedent breach of the provisions of this Agreement. Without limiting the generality of the foregoing and in addition to the foregoing and the rights upon termination set forth in Sections 9.3 and 9.4, no termination
of this Agreement, whether by lapse of time or otherwise, will serve to terminate the rights and obligations of the Parties hereto with respect to this Agreement as it relates to the jurisdiction(s) for which this Agreement has not been terminated.
The provisions of Articles 6, 8, and 10 and Sections 4.5, 5.6, 5.7, 7.5, 9.43, 9.5, 9.6, and 9.7 are intended to and shall survive termination or expiration of this Agreement. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 29 

 9.7 Additional Remedies. The remedies set forth in this Article 9 or elsewhere in
this Agreement will be in addition to, and will not be to the exclusion of, any other remedies available to the Parties at law, in equity or under this Agreement. 

ARTICLE 10 

MISCELLANEOUS 

10.1 Independent Contractor. It is understood and agreed that the Parties shall have the status of an independent
contractor under this Agreement and that nothing in this Agreement shall be construed as creating any partnership, joint venture or employer-employee relationship between the Parties or as authorization for either Magen or Lilly to act as agent for
the other. 
 10.2 No Benefit to Others. The representations, warranties, covenants and agreements contained in
this Agreement are for the sole benefit of the Parties and their legal representatives, successors and assigns, and they shall not be construed as conferring any rights to any Third Person. 

10.3 Force Majeure. If either Party is affected by any extraordinary, unexpected and unavoidable event such as acts of God,
floods, fires, riots, war, labor disturbances, failures of sources of supply, infectious diseases of animals, or by the reason of any law, order, proclamation, regulation, ordinance, demand or requirement of the relevant government or any authority
or representative thereof, or by reason of any other cause whatsoever (provided that in all such cases the Party claiming relief on account of such event can demonstrate that such event was extraordinary, unexpected and unavoidable by the exercise
of reasonable care) (“Force Majeure”) it shall notify the other Party within [*] ([*]) business days of the nature and extent thereof and take all reasonable steps to overcome the Force Majeure and to minimize the loss
occasioned to that other Party. Such notice will be provided within [*] ([*]) business days of the occurrence of such event and will identify the requirements of this Agreement or such of its obligations as may be affected, and, subject to the
provisions below, to the extent so affected, said obligations will be suspended during the period of such disability. The Party prevented from performing hereunder will use reasonable efforts to remove such disability and will continue performance
whenever such causes are removed. The Party so affected will give to the other Party a good faith estimate of the continuing effect of the Force Majeure condition and the duration of the affected Party’s nonperformance. 

If the period of any previous actual nonperformance of Lilly because of Lilly Force Majeure conditions plus the anticipated future period
of Lilly nonperformance because of such conditions will exceed an aggregate of [*] ([*]) consecutive days within any one year period, Magen may terminate this Agreement immediately by written notice to Lilly. 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 30 

 If the period of any previous actual nonperformance of Magen because of Magen Force Majeure
conditions will exceed [*] ([*]) consecutive days, Lilly may terminate this Agreement immediately by written notice to Magen; provided, however, that to the extent such nonperformance by Magen affects Magen’s performance and Lilly’s rights
under this Agreement as it relates to one or more countries, but not all countries, Lilly may terminate this Agreement after such [*] ([*]) day period as to the affected country or countries only, and in such case this Agreement will remain in full
force and effect with respect to the countries that are not terminated. 
 Notwithstanding the foregoing, when such
circumstances as those contemplated herein arise, the Parties will discuss in good faith, what, if any, modification of the terms set forth herein may be required in order to arrive at an equitable solution. 

10.4 Amendment. This Agreement may not be amended, supplemented, or otherwise modified except by an instrument in writing
signed by authorized representatives of the Parties. 
 10.5 Entire Agreement. This Agreement constitutes the
entire agreement and understanding relating to the subject matter of this Agreement and supersedes all previous communications, proposals, representations and agreements, whether oral or written, relating to the subject matter of this Agreement.

 10.6 Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under
present or future laws effective while this Agreement remains in effect, the legality, validity and enforceability of the remaining provisions will not be affected thereby. 

10.7 Waiver. Any term or provision of this Agreement may be waived at any time by the Party entitled to the benefit thereof
only by a written instrument executed by such Party. No delay on the part of Lilly or Magen in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any waiver on the part of either Lilly or Magen of any
right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor will any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder. 
 10.8 Notices. All notices required or permitted to
be given under this Agreement shall be in writing and shall be deemed given upon receipt if delivered personally or by facsimile transmission (receipt verified), telexed, mailed by registered or certified mail (return receipt requested), postage
prepaid, or sent by prepaid express courier service, to the Parties at the following addresses (or at such other address for a Party as shall be specified by the notice; provided, that notices of a change of address shall be effective only upon
receipt thereof): 
  

			
	 For Magen:
	  	Magen BioSciences, Inc.
		  	790 Memorial Drive – Suite 101
		  	Cambridge, MA 02139
		  	Attn: President
		  	Fax: 617 494-8752

  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 31 

			
	 With a copy to:
	  	
		  	Cooley Godward Kronish LLP
		  	The Prudential Tower
		  	800 Boylston Street – 46th Floor
		  	Boston, MA
		  	Attn: Lester J. Fagen, Esq. and Barclay Kamb, Esq
		  	Fax: 617 937-2400
		
	 For Lilly:
	  	
		  	 Eli Lilly and Company
 Lilly
Corporate Center
 Indianapolis, Indiana 46285

United States of America
 Attention: General
Counsel
 Fax: 317-433-3000

		
	 With a copy to:
	  	
		  	 Eli Lilly and Company

		  	Lilly Corporate Center
		  	Indianapolis, Indiana 46285
		  	United States of America
		  	Attention: [*]

 10.9 Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, excluding any choice of law rules, which may direct the application of the law of any other jurisdiction. However, the scope, validity and
enforceability of any patents encompassed within the scope of this Agreement shall be determined in accordance with the applicable laws of the countries in which such patents have issued. 

10.10 Assignability. During the term of this Agreement, neither Party shall assign any benefit or burden under this
Agreement without prior written consent of the other Party, which shall not be unreasonably withheld, except that (i) either Party may assign its rights and obligations under this Agreement to an Affiliate or to any company with which it may
merge or consolidate or to any company to whom it may transfer substantially all of its assets to which this Agreement relates or to any company which may acquire such Party (including, in each case, any company created as a new vehicle upon any
such merger, transfer or acquisition), (ii) Magen may transfer any and all of its rights to a sublicensee as provided by this Agreement and (iii) subject to Article 4, Lilly may freely assign its Payment Rights in whole or in part. This
Agreement shall be binding on and inure to the benefit of the parties hereto and their respective permitted successors and assigns. 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 

 32 

 10.11 Jointly Prepared. This Agreement will be deemed to have been drafted by both
Lilly and Magen and will not be construed against either Party as the draftsperson hereof. 
 10.12 Headings, Gender and
Number. All section and article titles or captions contained in this Agreement and in any exhibit, schedule or certificate referred to herein or annexed to this Agreement are for convenience only, will not be deemed a part of this Agreement and
will not affect the meaning or interpretation of this Agreement. Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and other gender, masculine,
feminine, or neuter, as the context requires. The term “including” shall be interpreted to mean “including without limitation” and shall not be restrictive. 

10.13 Dispute Resolution. If any dispute arises relating to this Agreement, prior to instituting any lawsuit or other dispute
resolution process on account of such dispute, the Parties will, prior to initiating any legal action, attempt in good faith to settle such dispute first by negotiation and consultation between themselves, including referral of such dispute to the
Chief Executive Officer of Magen and the Sr Vice President Corporate Strategy and Business Development of Lilly. If such executives are unable to resolve such dispute or agree upon a mechanism to resolve such dispute within [*] ([*]) days of the
first written request for dispute resolution under this Section 10.13, the Parties may then either consider other forms of alternative dispute resolution as a means of resolving any such dispute or institute litigation and seek such remedies as
may be available. 
 10.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be an original, but all of which taken together shall constitute one and the same agreement. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 

10.15 Schedules, Exhibits and Attachments. All schedules, exhibits and attachments (including, without limitation, the Development
Plan) referred to herein are intended to be and hereby are specifically made part of this Agreement. However, if there is a conflict between a term or condition of such schedules, exhibits and attachments and this Agreement, the terms and conditions
of this Agreement shall prevail. 
 [rest of page left blank; signature page to follow] 

 
 [*] Confidential treatment requested; certain information omitted and
filed separately with the SEC. 
  

 33 

 IN WITNESS WHEREOF, the Parties by their
respective authorized representatives, have executed this Exclusive License Agreement. 
  

	
	ELI LILLY AND COMPANY
	
	
By:                       
                                         
                                

	
	
	
Printed:                      
                                         
                         

	
	
	
Title:                       
                                         
                            

	
	
	MAGEN BIOSCIENCES, INC.
	
	
	
By:                       
                                         
                                

	
	
	
Printed:                      
                                         
                         

	
	
	
Title:                       
                                         
                            

	

  

 34 

 SCHEDULE A 

Licensed Compounds 

Schedule A – Licensed Compounds 

[*] 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 SCHEDULE B 

Additional Compounds 

Schedule B – Additional VDRM Compounds 

[*] 
  

[*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 SCHEDULE C 

Lilly Patents 
  

					
	Country	  	Application Number        	  	Application Date        
			
	 [*]
	  		  	

  
 [*] Confidential treatment
requested; certain information omitted and filed separately with the SEC.Employment Agreement between Furiex Pharm. and June S. Almenoff

 Exhibit 10.16 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into on this
2nd day of February, 2010, to be effective on the 16th day
of March, 2010 (the “Effective Date”), by and between PPD Therapeutics, Inc., a Delaware corporation (the “Company”), with its principal place of business in North Carolina and currently with a mailing address for notice purposes
of 929 North Front Street, Wilmington, North Carolina 28401, Attention: Chairman of the Board, and June S. Almenoff, MD, PhD (“Employee”), an individual whose mailing address for notice purposes is 2804 Trail Wood Drive, Durham, North
Carolina 27705. 
 RECITALS 

A. Before Employee and the Company entered into this Agreement, Pharmaceutical Product Development, Inc. (“PPDI”) announced its
plan to spin off its compound partnering business into a separate, publicly-traded entity (the “Spin-Off”). 
 B. The
Company is a wholly-owned subsidiary of PPDI and was formed for the purpose of owning and operating PPDI’s compound partnering business prior to and after the Spin-Off. 

C. PPDI and the Company currently anticipate that the Spin-Off will be accomplished through a pro rata dividend of all of the common
stock of the Company to the shareholders of PPDI and will be completed by mid-2010. 
 D. The Company desires to employ Employee
and Employee desires to be employed by the Company, all upon the terms and conditions set forth herein. 
 NOW,
THEREFORE, in consideration of the foregoing recitals, the mutual covenants of the parties hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows: 
 ARTICLE 1 

EMPLOYMENT AND DUTIES 

1.1 Employment of Employee. On the Effective Date, the Company agrees to employ Employee and Employee accepts such employment
pursuant and subject to the terms and conditions of this Agreement. 
 1.2 Duties and Powers. During the Employment
Period (as defined herein), Employee shall serve as President and Chief Medical Officer of the Company and will have such responsibilities, duties and authority, and will render such services for and in connection with the Company and its affiliates
as are customary in such position and as the Board of Directors of the Company (the “Board”) or the Chief Executive Officer shall from time to time reasonably direct. Employee shall devote Employee’s full business time and attention
exclusively to the Business of the Company and shall use best efforts to faithfully carry out Employee’s duties and responsibilities hereunder. Employee shall comply with all personnel policies and procedures of

 
the Company as the same now exist or may be hereafter implemented by the Company from time to time, including those policies contained in the Company’s employee manual or handbook which sets
forth policies and procedures generally for employees of the Company and its current or future subsidiaries (the “Handbook”) to the extent not inconsistent with this Agreement. 

ARTICLE 2 

TERM OF EMPLOYMENT 

Unless sooner terminated as provided elsewhere in this Agreement, Employee’s employment under this Agreement shall begin on the
Effective Date and end on the first anniversary thereof (“Initial Employment Period”). After the Initial Employment Period, this Agreement shall automatically renew for successive one-year periods, unless either the Company or Employee
provides written notice to the other at least ninety (90) days prior to the termination of the Initial Employment Period or any renewal period stating said party’s desire to terminate this Agreement. The Initial Employment Period and any
extension or renewal thereof shall be referred to herein together as the “Employment Period”. Notwithstanding anything to the contrary contained herein, the Employment Period is subject to termination pursuant to Article 4 hereof.

 ARTICLE 3 

COMPENSATION AND BENEFITS 

3.1 Base Salary. During the Employment Period, the Company will pay Employee an annual base salary at a rate of $350,000.00 per
annum (the “Base Salary”), payable in accordance with the Company’s regular payroll policy for salaried employees. The Base Salary of Employee may be subject to periodic review and adjustment by the Company during the Employment
Period, but shall not be reduced below $350,000 unless such reduction is part of a widespread reduction of executive salaries. If the Employment Period is terminated pursuant to Article 4 hereof or is otherwise shorter than a full contract year,
then the Base Salary for any partial year will be prorated based on the number of days elapsed in such year during which services were actually performed by Employee. 

3.2 Benefits. 

a. From the Effective Date until the Spin-Off is complete, during the Employment Period, Employee will be entitled to
participate in the group health insurance and other benefits offered by PPDI and available to Company employees, subject to Employee meeting the eligibility requirements for such PPDI plans and benefits. After the Spin-Off, during the Employment
Period, Employee will no longer be entitled to participate in the PPDI plans and benefits, but will be entitled to participate in the Company’s plans and benefits as such plans and benefits are maintained from time to time by the Company,
subject again to Employee meeting the applicable eligibility criteria therefor. Nothing in this Agreement will be interpreted to alter PPDI’s or the Company’s right to amend, modify or terminate any such plans and benefits in its
discretion from time to time. 
  

 2 

 b. During the Employment Period, Employee will be entitled to twenty-seven
(27) days of Paid Time Off (“PTO”), exclusive of paid holidays, each calendar year. Employee shall be allowed to carry over up to seven (7) days of unused PTO from one calendar year to the next. Upon termination of employment,
Employee shall be paid for all accrued unused PTO. Except where inconsistent with this Agreement, PTO shall be subject to the provisions of the Company’s Handbook or any other written policy of the Company on PTO. 

c. In addition to the benefits provided in (a) and (b), above, during the Employment Period, Employee will be
eligible to participate in the Company’s discretionary annual cash incentive plan (the “Cash Incentive Plan”), once adopted and established by the Company’s Board or a committee thereof. Subject to the Company establishing and
implementing the Cash Incentive Plan, the Company anticipates that the target bonus for Employee’s position in 2010 will be fifty percent (50 %) of Employee’s Base Salary earned in that calendar year. Awards under the Cash Incentive Plan,
if any, will be based upon both the Company’s achievement of its corporate and financial goals and Employee’s individual performance, and are entirely at the Company’s discretion. To receive any award under the Cash Incentive Plan,
Employee must be actively employed by the Company on the date payments are made under the Cash Incentive Plan. 

d. Company shall pay for continuing medical education for Employee up to three days per calendar year and will pay fees
associated with maintaining Employee’s medical license and Fellowship status in the American College of Physicians. Company will also pay for Employee to attend a reasonable amount of training annually, in business, finance and corporate
governance. 
 3.3 Equity Compensation. Subject to the adoption of an equity compensation plan by the Company’s
Board (the “Equity Plan”), Employee shall be eligible to participate in the Equity Plan during the Employment Period. Subject to the approval by the Company’s Board or committee thereof and limitations under applicable law, the
Company shall grant to Employee incentive options to purchase shares equal to (a) not less than 1.333 percent of the Company’s outstanding common stock on or before the expiration of the 60-day period following the Spin-Off (the
“Initial Option Grant”) and (b) subject to the performance of the Company and the Employee, not less than 0.667 percent of the Company’s outstanding common stock on or about the second anniversary of the Spin-Off (the
“Subsequent Option Grant”). The Initial Option Grant and the Subsequent Option Grant shall be subject to the terms and conditions of the Equity Plan and such other stock option award agreements and/or terms and conditions as the
Company’s Board shall require. In addition, the Initial Option Grant and the Subsequent Option Grant shall be subject to a three year linear vesting schedule under which one-third of the total number of options granted under the Initial Option
Grant shall vest on each of the first, second and third anniversaries of the Effective Date and one-third of the total number of options under the Subsequent Option Grant shall vest on each of the first, second and third anniversaries of the date of
the grant thereof. The Initial Option Grant and the Subsequent Option Grant shall have an exercise price based on the fair market value of the Company’s common stock on the date of grant as measured in the manner established by the
Company’s Board or committee thereof. 
  

 3 

 3.4 Expenses. During the Employment Period, the Company will reimburse Employee, in
accordance with and subject to Employee’s compliance with the Company’s policy, for Employee’s necessary and reasonable out-of-pocket expenses incurred in the course of performance of Employee’s duties hereunder. All
reimbursement of expenses to Employee hereunder shall be conditioned upon Employee’s presentation of timely and sufficient documentation evidencing such expenses, in accordance with the Company’s policies and procedures on business expense
reimbursement. 
 3.5 Working Facilities. Employee shall work out of the Company’s principal offices in Morrisville,
North Carolina. The Company shall furnish Employee with such enclosed office space, equipment, technical, secretarial and clerical assistance and such other facilities, services and supplies as shall be reasonably necessary to enable Employee to
perform the duties required of Employee hereunder in an efficient and professional manner. 
 3.6 Sign-On Bonus. The
Company will pay Employee a one-time bonus of $75,000 in cash within thirty (30) days of the Effective Date in accordance with the terms of a separate sign-on bonus agreement to be entered into simultaneously with this Agreement. 

ARTICLE 4 

TERMINATION OF EMPLOYMENT 

4.1 Basis for Termination. Notwithstanding any other provision in this Agreement to the contrary, the Employment Period and
Employee’s employment hereunder shall terminate effective on the date indicated upon the happening of any of the following events: 

a. Upon the death of Employee, effective immediately on the date of death without any notice; 

b. Upon a determination by the Chief Executive Officer or, if this office is vacant, the Board (other than Employee, if
Employee is then serving on the Board), acting in good faith and not in an arbitrary or capricious manner, but made in his or its sole discretion, that Employee has become physically or mentally incapacitated, as determined under the Company’s
short-term disability policy, and is unable to perform her duties under this Agreement as a result of such disability, which inability continues for a period of ninety (90) days during any twelve-month period hereunder, effective upon the date
said determination is communicated to Employee or such later date as specified by the Chief Executive Officer or the Board, as applicable; or 

c. Upon a determination by the Chief Executive Officer or, if this office is vacant, the Board (other than Employee, if
Employee is then serving on the Board), acting in good faith but made in his or its sole discretion, that Employee: (i) deliberately failed to substantially perform Employee’s duties and responsibilities for the Company and/or committed a
material violation of any Company policy or procedure (including without limitation any policy or procedure described in the Handbook); (ii) willfully or intentionally engaged in any act or omission that materially injures, or, in the opinion
of the Board, has the capacity to materially injure, the business or reputation of the Company, including but not limited to injury to any director, employee, client or 

 

 4 

 
shareholder of the Company; (iii) demonstrated willful misconduct in Employee’s execution of duties for the Company (including but not limited to insubordination); (iv) engaged in
a form of discrimination or harassment prohibited by law (including, without limitation, discrimination or harassment based on race, color, religion, sex, national origin, age, disability, and/or genetic information); (v) misappropriated or
embezzled material tangible or intangible property of the Company; (vi) materially breached the terms of this Agreement and/or any other written agreement between Employee and the Company; and/or (vii) has been convicted of or pleaded
guilty or no contest to a felony. 
 d. Upon 30 days notice, either Employee or Company may terminate employment.
A termination pursuant to this Section shall be considered termination without cause. 
 4.2 Compensation After Termination
Pursuant to 4.1(a)-(c). If the Company terminates Employee’s employment during the Employment Period pursuant to Section 4.1(a) through (c) hereof, then the Company shall have no further obligations hereunder or otherwise with
respect to Employee’s employment from and after Employee’s termination, except that the Company shall pay Employee’s Base Salary accrued through the date of her termination on the next regularly scheduled payroll period that follows
the termination and shall provide such benefits as are required by applicable law. From and after such termination, the Company shall continue to have all other rights available hereunder, including without limitation all rights under the
Proprietary Agreement and/or the Non-Competition Agreement (as hereinafter defined) and attached hereto as Annex A and Annex B, respectively. 

4.3 Compensation After Termination by the Company Pursuant to 4.1(d) or Non-renewal Pursuant to Section 2. If the Company
terminates Employee’s employment during the Employment Period pursuant to Section 4.1(d) or if the Company terminates Employee’s employment as a result of giving notice of non-renewal pursuant to Section 2, then Employee shall be
entitled to the following compensation and benefits set forth in Sections 4.3(a), (b), (c) and (d); provided, however, that the payments under Sections 4.3(b) and (c) are subject to Employee’s execution and delivery of a full General
Release of all claims against the Company within sixty (60) days of Employee’s termination and the expiration of any applicable revocation period: 

a. Base Salary accrued through the date of termination to be paid on the Company’s next usual and customary payroll
date following her termination. 
 b. Severance pay equal to 12 months of Base Salary based on the rate of Base
Salary as of Employee’s termination to be paid over the remaining period in the calendar year of Employee’s termination; provided if the termination is in November the severance will be paid over four months following termination, and if
the termination is in December (or if the Company provides notice of termination in December), the severance will be paid over three months following termination. Such severance pay will be paid under the following conditions: 

i. Payments shall not begin until such General Release has been executed and delivered and the revocation period has
expired; and 
  

 5 

 ii. Payments shall be made in installments at the same time as Base Salary
would have been paid if the Employee had not terminated, except that any payments that would be due for the period following termination and before the General Release (and the expiration of the revocation period) has been given shall be paid in a
single lump sum, and any remaining payments that are unpaid as of March 15 of the calendar year following involuntary termination of Employee shall be accelerated and paid in a lump sum on such March 15. The severance payments described in
this paragraph are intended to qualify as short-term deferrals meeting the requirements of Treas. Reg. § 1.409A-1(b)(4), and this paragraph shall be construed in accordance with such intent. 

c. Payment of the monthly COBRA premium for continuation of group health and dental coverage for Employee and her
dependents, for each of the 12 months immediately following Employee’s termination. The medical and dental coverage provided hereunder is intended to constitute a portion of the COBRA continuation coverage for Employee and Employee’s
dependents, but such coverage will not cause their COBRA continuation periods to end prior to the end of their otherwise applicable period of COBRA continuation coverage. 

d. Notwithstanding anything to the contrary herein or in any agreement evidencing the Initial Option Grant, the options
subject to the Initial Option Grant that are not vested at the end of Employee’s employment with the Company, if any, shall continue to vest in accordance with the vesting schedule under the Initial Option Grant during the 12-month period
immediately following the end of Employee’s employment, at which time all remaining unvested options under the Initial Option Grant, if any, shall terminate. Employee shall have three months following the expiration of such 12-month period in
which to exercise any vested options under the Initial Stock Grant. The Company shall cause the provisions of this Section 4.3(d) to be included in the terms of the Initial Option Grant. 

The provisions of Section 4.3 shall survive the Company’s non-renewal of this Agreement pursuant to Section 2. From and after such
termination or end of employment due to non-renewal, the Company shall continue to have all other rights available hereunder, including without limitation all rights under the Proprietary Agreement and/or the Non-Competition Agreement (as
hereinafter defined) and attached hereto as Annex A and Annex B, respectively. 
 4.4 Resignation as Officer
and Director. Upon the end of Employee’s employment, Employee will also be deemed to have resigned her position(s), if any, as an officer or director of the Company, as a member of any Board committees, as well as any other positions she
may hold with or for the benefit of the Company and/or its affiliates. 
 ARTICLE 5 

PROPRIETARY INFORMATION 

Prior to or coincident with the Effective Date, Employee shall execute and deliver to the Company its standard Proprietary Information
and Inventions Agreement (the “Proprietary Agreement”), a copy of which is attached hereto as Annex A. 
  

 6 

 ARTICLE 6 

NON-COMPETITION AND NON-SOLICITATION 

Prior to or coincident with the Effective Date, Employee shall execute and deliver to the Company its standard Non-Competition and
Non-Solicitation Agreement (the “Non-Competition Agreement”), a copy of which is attached hereto as Annex B. 

ARTICLE 7 

MISCELLANEOUS 

7.1 Withholding Taxes. All amounts payable under this Agreement, whether such payment is to be made in cash or other property,
shall be subject to applicable withholding requirements for Federal, state and local income taxes, employment and payroll taxes, and other legally required withholding taxes and contributions to the extent appropriate in the determination of the
Company, and Employee shall report all such amounts as income on Employee’s personal income returns and for all other purposes. 

7.2 Assignment. No party hereto may assign or delegate any of its rights or obligations hereunder; provided, however, that the
Company shall have the right to assign all or any part of its rights and obligations under this Agreement (i) to any member, subsidiary or affiliate of the Company or any surviving entity following any merger or consolidation of any of those
entities with any entity other than the Company, or (ii) in connection with the sale of all or substantially all of the Company’s assets. 

7.3 Binding Effect. All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall be
binding upon and inure to the benefit of the respective legal representatives, heirs, successors and permitted assigns of the parties hereto. 

7.4 Entire Agreement. This Agreement (including the Proprietary Agreement and Non-Competition Agreement attached hereto as
Annexes A and B) and the Severance Agreement set forth the entire understanding of the parties and supersedes and preempts all prior oral or written understandings and agreements with respect to the subject matter hereof. 

7.5 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement. 
 7.6 Amendment; Modification. No amendment or modification of this Agreement and no waiver
by any party of the breach of any covenant contained herein shall be binding unless executed in writing by the party against whom enforcement of such amendment, modification or waiver is sought. No waiver shall be deemed a continuing waiver or a
waiver in respect of any subsequent breach or default, either of a similar or different nature, unless expressly so stated in writing. 
  

 7 

 7.7 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of North Carolina, without giving effect to provisions thereof regarding conflict of laws. 

7.8 Arbitration. Except for disputes, controversies or claims arising out of or related to the Proprietary Agreement, the
Non-Competition Agreement (attached as Annex A and B) and/or a benefit plan governed by the Employee Retirement Income Security Act, any dispute, controversy or claim arising out of or relating to this Agreement, including but not
limited to its existence, validity, interpretation, performance or non-performance or breach, shall be decided by a single neutral arbitrator agreed upon by the parties hereto in Raleigh, North Carolina in binding arbitration pursuant to the
commercial arbitration rules of the American Arbitration Association then in effect. The parties to any such arbitration shall be limited to the parties to this Agreement or any successor thereof. The written decision of the arbitrator shall be
final and binding and may be entered and enforced in any court of competent jurisdiction. Each party waives any right to a jury trial in any such forum. Each party to the arbitration shall pay its fees and expenses, unless otherwise determined by
the arbitrator. 
 7.9 Notices. All notices, demands or other communications to be given or delivered hereunder or by
reason of the provisions of this Agreement shall be in writing and shall be deemed to have been properly served if (a) delivered personally, (b) delivered by a recognized overnight courier service, (c) sent by certified mail, return
receipt requested and first class postage prepaid, or (d) sent by facsimile transmission followed by a confirmation copy delivered by a recognized overnight courier service the next day. Such notices, demands and other communications shall be
sent to the address first set forth above, or to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. Date of service of such notice shall be (i) the date
such notice is personally delivered or sent by facsimile transmission (with issuance by the transmitting machine of a confirmation of successful transmission), (ii) the date of receipt if sent by certified mail, or (iii) the date of
receipt if sent by overnight courier. 
 7.10 Counterparts. This Agreement may be executed in multiple counterparts, each
of which shall be deemed an original and all of which taken together shall constitute one and the same agreement. 
 7.11
Descriptive Heading; Interpretation. The descriptive headings in this Agreement are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement. 

7.12 Section 409A Compliance. The parties hereto intend that this Agreement comply with Section 409A of the Code and all
guidance or regulations thereunder (“Section 409A”), including compliance with all applicable exemptions from Section 409A (e.g., the short-term deferral exception). The parties hereby agree that this Agreement shall at all times be
construed in a manner to comply with Section 409A and that should any provision be found not in compliance with Section 409A, the parties are hereby contractually obligated to execute any and

  

 8 

 
all amendments to this Agreement required to achieve compliance with Section 409A. In the event amendments are required to be made to this Agreement to comply with Section 409A, the
Company shall use its commercially reasonable best efforts to provide the Employee with substantially the same benefits and payments she would have been entitled to pursuant to this Agreement had Section 409A not applied, but in a manner that
is compliant with Section 409A. The manner in which the immediately preceding sentence shall be implemented shall be the subject of good faith negotiations of the parties. 

7.13 Rules Applicable to Reimbursements or In-Kind Benefits. All reimbursements or in-kind benefits shall be provided in
accordance with the rules of this Section 7.13. The amount of expenses eligible for reimbursement, or in-kind benefits provided, during Employee’s taxable year may not affect the expenses eligible for reimbursement, or in-kind benefits to
be provided, in any other taxable year. The reimbursement of an eligible expense must be made on or before the last day of Employee’s taxable year following the taxable year in which the expense was incurred. Employee’s right to
reimbursement or in-kind benefits may not be liquidated or exchanged for another benefit. To the extent there is a conflict between this Section 7.13 and any other Section of this Agreement, the terms of this Section shall prevail. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

 

					
	COMPANY:	 	PPD THERAPEUTICS, INC.
			
		 	By:	 	 
		 	Name: 	 	 
		 	Title	 	 
		
	EMPLOYEE:    	 	 
		 	June S. Almenoff, MD, PhD

  

 9 

 ANNEX A 

PROPRIETARY INFORMATION 

AND INVENTIONS AGREEMENT 

In consideration and as a condition of my employment by PPD Therapeutics, Inc., a Delaware corporation with its principal place of
business in Wake County, North Carolina, or any affiliate, subsidiary, successor or assigns, as the case may be (collectively referred to herein as the “Company”), I hereby agree as follows: 

1. “Proprietary Information” is information that was or is developed by, became or becomes known by, or was or is assigned or
otherwise conveyed to the Company, and which has commercial value in the Company’s business. Proprietary Information includes, without limitation, trade secrets, financial information, product plans, customer lists, marketing plans and
strategies, systems, manuals, forecasts and other business information, improvements, inventions, business strategies, business methods and practices, formulas, product ideas, biological material and techniques for their handling and use, chemical
and/or information analysis and related products and data, computer programs and software, software designs and documentation, source codes, algorithms, techniques, schematics, know-how and data, and any other confidential or proprietary information
of the Company or its customers or clients which I have been, or may be exposed to, or have learned or may learn of from time to time in connection with or as a result of my capacity as an employee of or consultant to the Company, including during
the term of this Agreement. Proprietary Information shall not include information that is, through no improper action or inaction by me, generally available to the public. I understand that my employment creates a relationship of confidence and
trust between me and the Company with respect to Proprietary Information of the Company or its customers which may be learned by me during the period of my employment. 

2. In consideration of my employment by the Company and the compensation received by me from the Company from time to time, I hereby
agree as follows: 
 (a) All Proprietary Information and all patents, copyrights, trade secret rights and other
rights (including throughout, without limitation, any extensions, renewals, continuations or divisions of any of the foregoing) in connection therewith shall be the sole property of the Company. I hereby assign to the Company any rights I may have
or acquire in such Proprietary Information. At all times, both during my employment by the Company and after its termination, I will keep in confidence and trust and will not use or disclose any Proprietary Information or anything relating to it
without the written consent of the Company, except as may be necessary in the ordinary course of performing my duties to the Company. 

(b) In the event of the termination of my employment by me or by the Company for any reason, I shall return all documents,
records, apparatus, equipment and other physical property, or any reproduction of such property, whether or not pertaining to Proprietary Information, furnished to me by the Company or produced by myself or others in connection with my employment,
to the Company immediately as and when requested by the Company. 

 (c) I will promptly disclose to the Company, or any persons designated by
it, all “Inventions”, which includes all improvements, inventions, formulas, ideas, works of authorship, processes, computer programs and software, software designs and documentation, algorithms, techniques, schematics, know-how data,
whether or not patentable, made or conceived or reduced to practice or developed by me, either alone or jointly with others, during the term of my employment and for six (6) months thereafter. To the extent the Company does not have rights
therein hereunder, such disclosure shall be received by the Company in confidence and does not extend the assignment made in Section (d) below. 

(d) I agree that all Inventions which I make, conceive, reduce to practice or develop (in whole or in part, either alone
or jointly with others) during my employment shall be the sole property of the Company to the maximum extent permitted by law, and, to the extent permitted by law, shall be “works made for hire”. The Company shall be the sole owner of all
patents, copyrights, trade secret rights, and other intellectual property or other rights in connection therewith. I hereby assign to the Company any rights I may have or acquire in such Inventions. I agree to perform, during and after my
employment, all acts deemed necessary or desirable by the Company to permit and assist it, at the Company’s expense, in obtaining and enforcing patents, copyrights, trade secret rights or other rights on such Inventions and/or any other
Inventions I have or may at any time assign to the Company in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. With respect to any and all matters
arising out of or relating to my employment or consultancy with the Company, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents, as my agents and attorneys-in-fact to act for and in my behalf and
instead of me, to execute and file any applications or related filings and do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, trade secret rights or other rights thereon with the same legal force and
effect as if executed by me. 
 (e) I attach hereto a complete list of all Inventions or improvements to which I
claim ownership and/or that I desire to remove from the operation of this Agreement, and I covenant that such list is complete. If no such list is attached to this Agreement, I represent that I have no such Inventions and improvements at the time of
signing this Agreement. I understand that any such list shall not contain information that breaches an obligation of confidentiality with a former employer. 

(f) I represent that my performance of all the terms of this Agreement will not breach any agreement or obligation to keep
in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict herewith or in
conflict with my employment with the Company. 
 3. The Company agrees that it will not request as part of my employment that I
divulge or make use of proprietary information of any of my former employers that has commercial value to the former employer who developed such information. 
  

 2 

 4. I acknowledge that in the event of my breach or threatened breach of the terms of this
Agreement, the Company shall not have an adequate remedy at law and shall, in addition to any other available rights and remedies, have the right to obtain injunctive relief, including without limitation specific performance. 

5. This Agreement shall be effective as of the first day of my employment by the Company, and shall be binding upon me, my heirs,
executors, assigns, and administrators, and shall inure to the benefit of the Company and any current and future affiliates, subsidiaries, successors and assigns. This Agreement supersedes any agreement which may have been previously made or
executed by me relating to this matter. This Agreement shall be governed by the laws of the State of North Carolina (exclusive of conflicts of law provisions), which shall be the venue for resolution of any dispute related to this Agreement. This
Agreement or any part thereof shall not be modified, amended, or waived except by the written consent of the Company’s Chief Executive Officer or other duly authorized officer. 

 

					
	Dated:	 	                    
        , 20        
		
		 	 
		 	Name: June S. Almenoff, MD, PhD
	
	Accepted and Agreed to:
		
		 	PPD Therapeutics, Inc.
			
		 	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

 3 

 ANNEX B 

NON-COMPETITION 

AND NON-SOLICITATION AGREEMENT 

THIS AGREEMENT is made this          day of
                        , 20__, by and between PPD Therapeutics, Inc., a Delaware corporation with its principal place in
North Carolina (the “Company”), and June S. Almenoff, MD, PhD, an individual whose address is 2804 Trail Wood Drive, Durham, North Carolina 27705 (herein referred to as “Employee”). 

RECITALS 

A. The Company is engaged in the business of developing and commercializing, directly and with third parties, potential drug candidates
and drug products in various therapeutic areas (the “Business”). 
 B. Employee will perform a highly responsible role
in the Company’s organization, have specialized knowledge of the Company’s Business, existing and future potential drug candidates and drug products, and trade secrets and proprietary information, and have contact with or knowledge of the
Company’s employees and contractors. 
 C. The Company and Employee agree that because of the knowledge, information and
relationships to which Employee will be exposed during the course of Employee’s employment with the Company, it would be harmful to the Company for Employee to compete with the Company or solicit its employees or contractors in the manner
prohibited by this Agreement and that the Company has a legitimate business interest in protecting itself from such competition and solicitation. 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained and other valuable consideration detailed
below, the parties agree as follows: 
 1. Restrictive Covenants. In order to protect, among other things, the
Company’s business interests, its investments in its drug candidates, drug products, trade secrets and proprietary information, its relationships with its employees and contractors, and its goodwill, Employee agrees to the following covenants
and restrictions: 
  1.1 Non-Competition Agreement. During employment with the Company and (a) if
employment ends in the first thirteen months of employment, for a period of six (6) months after termination of employment with the Company, or (b) if employment ends after the first thirteen months of employment, for a period of twelve (12)
months after termination of employment with the Company (the “Non-Compete Restricted Period”), Employee will not, directly or indirectly, participate or engage in any business or activity that competes with the Business of the Company in
the Territory (as defined below) in any capacity whatsoever, whether as an individual on his or her own account or as an employee, consultant, contractor, officer, director, shareholder, partner, member, joint venturer, representative, 

 agent or equity owner of any business entity. Notwithstanding the foregoing, nothing in this
Agreement is intended to prohibit Employee from: 
 (a) being employed by or providing any services to a
pharmaceutical, biotechnology, medical device or other business entity so long as Employee does not perform any work or consulting services for any such entity that, directly or indirectly, relates to any drug candidates or drug products that
compete with any drug candidates or drug products that are then being, or are proposed to be, developed, produced, manufactured, commercialized, provided or marketed by, under or through the Company, any collaborator or licensee of the Company, or
other third party under or pursuant to any agreement or arrangement with the Company, or its or their successors or assigns. For purpose of this Agreement, drug candidates or drug products that are proposed to be developed, produced, manufactured,
commercialized, provided or marketed shall mean any potential drug candidate or drug product in which the Company is actively seeking to acquire an interest, directly or indirectly through an equity investment or otherwise, under the terms of a
signed letter of intent or term sheet. 
 (b) being employed by or providing services to any company or business,
even one that competes with Company, as long as such employment or services are limited to pharmacovigilance and/or medical governance and do not involve, in whole or in part, responsibility or participation in business strategy. 

(c) passively owning two percent (2%) or less of the outstanding equity interests of any privately- or publicly-held
entity. 
  1.2 Non-Solicitation of Employees. During employment with the Company and for a period of
one year after termination of employment with the Company (the “Non-Solicit Restricted Period”), Employee also will not, directly or indirectly, in any manner, (a) solicit, hire, or offer to hire any employee or contractor of the
Company while that person is employed or engaged by the Company and for three (3) months after the termination of that person’s employment or engagement with the Company, or (b) otherwise encourage or induce any such employee or
contractor to discontinue his or her relationship with the Company. 
  1.3 Nondisparagement. During
and at all times after the Employment Period, Employee and Company agree not to make disparaging statements, remarks or rumors about each other to any third party. For purposes of this Section 1.3, Company shall also include the Company’s
parent company, officers, directors, shareholders, employees, contractors, and/or other representatives or the Company’s Business. Provided, however, that nothing in this Agreement is intended to prohibit Employee or Company from
responding in a truthful and appropriate manner in any legal process or to give truthful and appropriate testimony in a legal proceeding. 
    

 2 

 2. Consideration. The Company and Employee acknowledge that Employee has received
good and valuable consideration for Employee’s commitment to be bound by the restrictions set forth in this Agreement, which consideration includes, but is not limited to Employee’s initial employment with the Company and all of the
compensation and other benefits therewith. 
 3. Territory. The restrictions contained in Section 1.1 of this
Agreement apply to the following geographic regions: (a) worldwide, in all areas of the world in which the Company conducts or engages in the Business; (b) or, if the foregoing territory is deemed too broad, then all areas of the Americas,
Europe and Asia in which the Company conducts or engages in the Business; (c) or, if the foregoing territory is deemed too broad, then all areas of the Americas and Europe in which the Company conducts or engages in the Business; (d) or,
if the foregoing territory is deemed too broad, then all areas in the Americas in which the Company conducts or engages in the Business; (e) or, if the foregoing territory is deemed too broad, then all areas in North America in which the
Company conducts or engages in the Business; (f) or, if the foregoing territory is deemed to broad, then all areas in the United States in which the Company conducts or engages in the Business; (g) or, if the foregoing territory is deemed
to broad, then all areas in each state of the United States in which the Company conducts or engages in the Business; (h) or, if the foregoing territory is deemed to broad, then each county, parish or other similar locality of each state in the
United States in which the Company conducts or engages in the Business (herein, the “Territory”). Employee acknowledges that, because the Company engages in the Business worldwide and because Employee could compete with the Company from
anywhere in the world, the Territory must be so broadly defined. 
 4. Remedies; Extension of Restricted Periods.
Employee acknowledges and agrees that the covenants set forth in this Agreement are reasonable and necessary for the protection of the Company’s legitimate business interests, that irreparable injury will result to the Company if Employee
breaches any of the terms of this Agreement and that, in the event Employee breaches or threatens to breach any provision of this Agreement, the Company will have no adequate remedy at law. Employee accordingly agrees that in the event Employee
breaches or threatens to breach any of the covenants set forth herein, the Company shall be entitled to immediate, temporary and permanent injunctive or other equitable relief without bond and without the necessity of showing actual money damages,
subject to a hearing as soon as possible. Employee further agrees that the Company shall also be entitled to pursue, separately or concurrently, any other remedies available for such breach by Employee, including the recovery of any damages it is
able to prove. Employee further agrees that the Non-Compete Restricted Period and the Non-Solicit Restricted Period will each be extended for a period of time equal to any period during which Employee is in breach of Section 1.1 or
Section 1.2 hereof, as the case may be, and/or any period of time during which Employee and the Company are engaged in litigation arising from or related to Sections 1.1 or 1.2 hereof, as the case may be. 

5. Enforcement. Employee agrees that, if a court of competent jurisdiction determines, contrary to the Agreement of the parties,
that any portion of this Agreement is unreasonable, invalid, overbroad or unenforceable, the remainder of the Agreement shall be given full effect without regard to the invalid provisions and the Company may enforce the covenant as to any lesser
portion of the activity, Non-Compete Restricted Period, Non-Solicit Restricted Period and/or Territory that is deemed by the court to be reasonable and enforceable 

 

 3 

 
under applicable law. In this regard, the covenants shall be divisible as to activity, Non-Compete Restricted Period, Non-Solicit Restricted Period and/or Territory, with each month deemed to be
a separate period of time, and each state and country, or part thereof included in the Territory, deemed to be a separate geographic area. Employee further agrees that the Company may, at its option, seek to enforce the covenant as to any lesser
activity, Non-Compete Restricted Period, Non-Solicit Restricted Period and/or Territory that the Company deems appropriate. 

6. Effect of Termination. Employee agrees that the terms of this Agreement shall be enforceable against the Employee regardless of
who terminates the employment relationship and regardless of the basis of Employee’s termination, whether voluntary or involuntary and with or without cause. Employee further agrees that the existence of a claim by Employee against the Company,
whether predicated on Employee’s termination, this Agreement or otherwise, shall not constitute a defense to enforcement of the restrictions contained herein. Notwithstanding the foregoing, in the event the Company terminates Employee’s
employment due to a reduction in force or layoff in connection with the discontinuance or cessation of a business line, unit, function or department, the Company shall not enforce Section 1.1 of this Agreement. 

7. Notification. Employee authorizes the Company to notify others, including but not limited to any future employer of Employee,
about the existence and terms of this Agreement and Employee’s obligations hereunder. 
 8. Jurisdiction and Venue.
The parties agree that the federal or state courts sitting in Wake County, North Carolina, shall be the exclusive jurisdiction to enforce the covenants set forth in this Agreement and to resolve any disputes or controversies arising out of or
related to this Agreement. Employee consents to personal jurisdiction and venue in either of said courts, and waives any claims or defenses based on improper venue or jurisdiction. 

9. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of North Carolina.

 10. Severability. The provisions of this Agreement as well as each paragraph and subparagraph hereof shall be deemed
severable, and if any provisions, paragraphs or subparagraphs hereof are held to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions, paragraphs and/or subparagraphs shall continue to be valid and enforceable.

 11. Modification. This Agreement cannot be altered, amended, or modified in any respect, except by a writing that
specifically refers to this Agreement and the amendment(s) thereto, duly executed by the parties. 
 12. Waiver. The
Company’s waiver of any violation of this Agreement or failure to enforce any provision of this Agreement shall not constitute a waiver of the Company’s rights with respect to other or future violations of this Agreement. Any waiver must
be in a writing signed by the Company and specifically refer to a waiver of provision(s) of this Agreement. 
 13. Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties, their heirs, successors and assigns. 
  

 4 

 14. Entire Agreement. This Agreement contains the entire agreement of the parties
with respect to the matters set forth herein and supercedes all previous negotiations and discussions, agreements and understandings regarding such matters, with the exception of Employee’s Proprietary Information and Inventions Agreement, any
employment agreement to which Employee and the Company are parties, and the Severance Agreement. In the event of any conflict between this Agreement and any other the Company agreements, the terms of the agreement which are most restrictive shall
control. It is understood that this Agreement does not constitute an express or implied employment contract for any definite period of time and that, absent a written agreement between the Company and Employee, Employee’s employment with the
Company is “at will” meaning that either the Company or Employee can end the employment relationship at any time, with or without cause. 

15. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and all of which taken together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the parties have
executed this Non-Competition and Non-Solicitation Agreement, effective as of the last date set forth below. 
  

			
	PPD THERAPEUTICS, INC.:
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 
	
	EMPLOYEE:
	
	 
	Name: June S. Almenoff, MD, PhD
	Date:	 	 

  

 5

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