Document:

Exhibit

Exhibit 10.34

 

ASSET PURCHASE AGREEMENT

BY AND BETWEEN

BRISTOL METALS, LLC

AND

MARCEGAGLIA USA, INC.

DATED AS OF DECEMBER 9, 2016

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ASSET PURCHASE AGREEMENT
ASSET PURCHASE AGREEMENT (“Agreement”), dated as of December 9, 2016, by and between Bristol Metals, LLC, a Tennessee limited liability company (the “Buyer”), and Marcegaglia USA, Inc., a Pennsylvania corporation (the “Seller”).  Seller and Buyer may each be referred to herein individually as a “Party” and together as the “Parties”.
WHEREAS, Seller is in the business of manufacturing and selling welded stainless steel pipe and tube in North America which business expressly excludes stainless steel squares, rectangles and rounds tubes manufactured specifically for an ornamental or automotive application (the “Business”).
WHEREAS, Buyer desires to purchase and assume, and Seller desires to sell and assign, or cause to be sold and assigned, the Specified Assets (as defined herein) and the Specified Liabilities (as defined herein), upon the terms and conditions hereinafter set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree as follows:
SECTION 1. DEFINED TERMS
Certain defined terms used in this Agreement and not specifically defined in context shall have their respective meanings contained in Exhibit 1 attached hereto, the provisions of which are hereby incorporated into and made a part of this Agreement by reference.

SECTION 2. THE TRANSACTION
2.1    Sale and Purchase of Specified Assets.  On the Closing Date, effective to the fullest extent possible at 11:59 p.m. Eastern Time, subject to the other terms and conditions of this Agreement, Seller shall sell, transfer, assign and convey to Buyer, and Buyer shall purchase, all right, title and interest in and to all of the Specified Assets free and clear of any Encumbrances.
2.1.1    Specified Assets.  The “Specified Assets” means substantially all of the assets owned or held by Seller and used in the Business, including but not limited to those assets set forth below, but excluding the Excluded Assets:  
2.1.1.1      All of Seller’s usable and saleable raw materials inventory and usable supplies inventory owned by Seller on Closing Date listed on Schedule 2.1.1.1, which schedule shall be agreed upon and delivered at Closing by and between the Parties (collectively, the “Inventory”).
2.1.1.2      All of Seller’s fixed assets, equipment, computers, fixtures and furniture including, but not limited to, the items listed on Schedule 2.1.1.2 hereto (the “Equipment”); 
2.1.1.3      All of Seller’s current, former and prospective customer lists and customer sales files relating to the Business (the “Customer Lists”).
2.1.1.4      Copies of all of Seller’s employment and personnel records relating to Transferred Employees, and all books and records relating or pertaining to the Business, including all sales records and similar data, to the extent transferrable by law (collectively, the “Records”).
2.1.1.5      The Intellectual Property held, used or owned by Seller, other than that listed under Section 2.1.2.3.  

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2.1.1.6     All licenses and permits, to the extent transferrable and not related to the Seller Ongoing Operation, used by Seller and necessary to conduct the Business as it is currently being conducted, including any Environmental Permits and those listed on Schedule 2.1.1.6 (the “Licenses and Permits”), which schedule Seller shall deliver at or before Closing. 
2.1.1.7      All other tangible and intangible properties which historically have been used or held for use in connection with the Business including, without limitation, all goodwill related to the Business excluding (i) assets sold or disposed of since that date in the ordinary course of business and (ii) assets which are included in the Excluded Assets. 
2.1.2    Excluded Assets.  Notwithstanding any provision to the contrary in this Agreement, nothing in this Agreement shall constitute or be construed as requiring Seller to sell, assign, convey, transfer or deliver, and Buyer shall not be entitled to purchase, assume or acquire, any right, title or interest in, to or under any property, asset, business, operation or division of Seller, or any Affiliate thereof, not set forth in Section 2.1.1, including the following assets and properties which are hereby excluded from the definition of Specified Assets (collectively, the “Excluded Assets”): 
2.1.2.1        All cash, cash equivalents, bank deposits, and prepaid expenses, including such as relate to any Excluded Assets or the operation of the Specified Assets prior to the Closing Date, and any income, sales, payroll or other Tax receivables with respect to periods prior to the Closing Date (in each case, whether held by Seller or any third party).
2.1.2.2      All of Seller’s finished goods inventory owned by Seller on Closing Date listed on Schedule 2.1.2.2, which schedule shall be agreed upon and delivered at Closing by and between the Parties.
2.1.2.3     All of Seller’s intellectual property rights and interests associated with its name, “Marcegaglia USA, Inc.”, and any derivations thereof using the name “Marcegaglia”.  
2.1.2.4      All Tax refunds or credits, which refunds or credits are with respect to periods prior to the Closing Date, whether directly or indirectly, regardless of when actually paid.
2.1.2.5      The minute books, stock transfer books, corporate seal, Tax Returns and other corporate records of Seller and its respective successors and assigns. 
2.1.2.6      All real estate owned by Seller, including, but not limited to, the real property located at 1001 E. Waterfront Drive, Munhall, Pennsylvania 15120 (the “Facility”).
2.1.2.7      All of Seller’s rights and interests in its purchase orders and contracts.
2.1.2.8    The Trade Accounts Receivable accrued by Seller prior to Closing.
2.1.2.9    The two high frequency mills and all other equipment associated solely with the Seller Ongoing Operation including relative tooling and supplies, the cranes, Mill 3 and Mill 4, the Drever furnace and the other miscellaneous equipment, associated solely with the Seller Ongoing Operation, dismantled, obsolete and not in use (i.e. those under the “big top”) and the other equipment listed on Schedule 2.1.2.9. 
2.1.3    Specified Liabilities.  At the Closing, Buyer will not assume any of the liabilities, obligations or debt of Seller except the following explicitly listed liabilities and then only to the extent solely related to the Specified Assets (the “Specified Liabilities”):
2.1.3.1    The Transferred Employees’ accrued vacation and sick leave accrued through the Closing Date listed on Schedule 2.1.3.1 which schedule shall be delivered at Closing by the Seller.

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2.1.3.2    The outstanding purchase orders (i) for stainless steel products with customers that have not begun production as of the Closing and (ii) for raw material with suppliers (other than those related to the Seller Ongoing Operation) that Seller and Buyer shall identify in agreement between them before Closing. Such purchase orders with customers and suppliers will be listed on Schedule 2.1.3.2 to be agreed upon and exchanged between the Parties at Closing.   
2.1.3.3    The trade accounts payable listed on Schedule 2.1.3.3, which schedule shall be delivered and agreed upon at Closing.
2.1.3.4    The verbal manufacturers’ representative agreement with Excel Metals Inc. 
2.1.4    No Other Liabilities.  Except as otherwise set forth in this Agreement, Buyer shall not assume or be obligated to pay, perform or otherwise discharge any liabilities of Seller other than as specifically included in the Specified Liabilities.  All such liabilities not being assumed by Buyer pursuant to Section 2.1.3 are referred to herein as the “Excluded Liabilities.” 
SECTION 3. PURCHASE PRICE, ALLOCATION AND EARN OUT
3.1    Purchase Price.  
3.1.1    Purchase Price.  The aggregate purchase price for the Specified Assets (the “Purchase Price”) shall be payable from Buyer to Seller at Closing via wire transfer of immediately available funds, and calculated as follows:
3.1.1.1    The replacement value of Seller’s Inventory, as determined pursuant to Section 3.1.3;
3.1.1.2    Five Hundred Thousand Dollars ($500,000) as consideration for the restrictive covenants set forth in Section 8.2 hereof; and
3.1.1.3    Eight Million Dollars ($8,000,000) for the Equipment and the remaining Specified Assets.
3.1.2    Deposit.  Upon execution of this Agreement, Buyer shall deposit Three Million Dollars ($3,000,000) with the Escrow Agent (the “Deposit”) and shall enter into an escrow agreement with the Escrow Agent and the Seller, the form of which is attached hereto as Exhibit A (the “Escrow Agreement”), to regulate the payment of the Deposit by the Escrow Agent in accordance with the principles agreed hereunder.  At Closing, the Parties agree that the Escrow Agent shall pay the Deposit to Seller as a credit against the Purchase Price.  
3.1.3    Inventory.  The Parties agree to take a physical observation and counting of the Inventory prior to the Closing, but no more than seven (7) days before the Closing.  Using the agreed upon count after the physical inventory, the Parties shall determine the replacement value of the Inventory, as of the date of the physical inventory count, based on the average of the relevant raw material and supplies purchase prices of the last four weeks before Closing Date, and if there is no purchase over the last four weeks, on the basis of the most recent price list issued by the relevant suppliers and that shall be the amount paid by Buyer to Seller at Closing for the Inventory.  Between the execution of this Agreement and the Closing Date, Seller shall keep Buyer fully informed and involved in any negotiation for the purchase of raw material. 
3.2     Allocation of Purchase Price.  Buyer and Seller agree that the Purchase Price will be allocated to the Specified Assets and the restrictive covenants for all purposes (including Tax and financial accounting purposes) as set forth on Schedule 3.2, which schedule shall be agreed upon and delivered at Closing by and between the Parties.  The allocation of the Purchase Price is intended to comply with the requirements of Section 1060 of the Internal Revenue Code.  Buyer and Seller shall file Internal Revenue Service Form 8594, Asset Acquisition Statement under Section 1060 of the Internal Revenue Code, with their respective income tax returns (including amended returns and claims 

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for refund) for the taxable year that includes the date of Closing and information reports in a manner consistent with such allocation.  Buyer and Seller agree to satisfy all of the reporting requirements of Section 1060 of the Internal Revenue Code.
3.3    Earn Out Payments.  
3.3.1    As additional consideration for the Specified Assets, Buyer shall pay to Seller with respect to each Calculation Period within the Earn Out Period an amount (each, an “Earn Out Payment”) equal to: three percent (3%) of all Revenue generated by Buyer from the amount, if any, of small diameter stainless steel pipe and tube (outside diameter of ten inches or less) sold in excess of 3.25 million pounds quarterly, excluding sales of Seller’s finished goods inventory post-Closing; provided that, the Parties shall review the Earn Out Payments annually (each fourth Calculation Period during the Earn Out Period), and if necessary, adjust up or down the final quarterly Earn Out Payment for each year during the Earn Out Period to make certain the aggregate of the Earn Out Payments for each year during the Earn Out Period is equal to three percent (3%) of all Revenue generated by Buyer from the amount, if any, of small diameter stainless steel pipe and tube (outside diameter of ten inches or less) sold in excess of 13.0 million pounds annually.  Notwithstanding the foregoing, if at the end of the Earn Out Period, Buyer has paid Seller Earn Out Payments totaling less than $3,000,000, in the aggregate, then Buyer shall pay Seller a “true-up” payment equal to the difference between $3,000,000 and the aggregate of the Earn Out Payments previously paid to Seller. 
3.3.2    Procedures Applicable to Determination of the Earn Out Payments.
3.3.2.1    On or before the date which is twenty (20) days after the last day of each Calculation Period (each such date, an “Earn Out Calculation Delivery Date”), Buyer shall prepare and deliver to Seller a written statement (in each case, an “Earn Out Calculation Statement”) setting forth in reasonable detail its determination of Revenue for the applicable Calculation Period and its calculation of the resulting Earn Out Payment (in each case, an “Earn Out Calculation”).
3.3.2.2    Seller shall have twenty (20) days after receipt of the Earn Out Calculation Statement for each Calculation Period (in each case, the “Review Period”) to review the Earn Out Calculation Statement and the Earn Out Calculation set forth therein. During the Review Period, Seller and its Representatives shall have the right to inspect the Company’s books and records during normal business hours at the Company’s offices, upon reasonable prior notice and solely for purposes reasonably related to the determinations of Revenue and the resulting Earn Out Payment. Prior to the expiration of the Review Period, Seller may object to the Earn Out Calculation set forth in the Earn Out Calculation Statement for the applicable Calculation Period by delivering a written notice of objection (an “Earn Out Calculation Objection Notice”) to Buyer. Any Earn Out Calculation Objection Notice shall specify the items in the applicable Earn Out Calculation disputed by Seller and shall describe in reasonable detail the basis for such objection, as well as the amount in dispute. If Seller fails to deliver an Earn Out Calculation Objection Notice to Buyer prior to the expiration of the Review Period, then the Earn Out Calculation set forth in the Earn Out Calculation Statement shall be final and binding on the parties hereto, and the Earn Out Payment shall be immediately due and payable. If Seller timely delivers an Earn Out Calculation Objection Notice, Buyer and Seller shall negotiate in good faith to resolve the disputed items and agree upon the resulting amount of the Revenue and the Earn Out Payment for the applicable Calculation Period. If Buyer and Seller are unable to reach agreement within thirty (30) days after such an Earn Out Calculation Objection Notice has been given, all unresolved disputed items shall be promptly referred to the Independent Accountants. The Independent Accountants shall be directed to render a written report on the unresolved disputed items with respect to the applicable Earn Out Calculation as promptly as practicable, but in no event greater than thirty (30) days after such submission to the Independent Accountants, and to resolve only those unresolved disputed items set forth in the Earn Out Calculation Objection Notice. If unresolved disputed items are submitted to the Independent Accountants, Buyer and Seller shall each furnish to the Independent Accountants such work papers, schedules and other documents and information relating to the unresolved disputed items as the Independent Accountants may reasonably request. The Independent Accountants shall resolve the disputed items based solely on the applicable definitions and other terms in this Agreement and the presentations by Buyer and Seller, and not by independent review. The resolution of the dispute and the calculation of Revenue that is the subject of the applicable Earn Out Calculation Objection Notice by the Independent Accountants shall be final and binding on the parties hereto. The fees and expenses 

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of the Independent Accountants shall be borne by Seller and Buyer in proportion to the amounts by which their respective calculations of Revenue differ from Revenue as finally determined by the Independent Accountants.
3.3.3    Independence of Earn Out Payments.  Except as otherwise stated herein, Buyer’s obligation to pay each of the Earn Out Payments to Seller in accordance with Section 3.3 is an independent obligation of Buyer and is not otherwise conditioned or contingent upon the satisfaction of any conditions precedent to any preceding or subsequent Earn Out Payment and the obligation to pay an Earn Out Payment to Seller shall not obligate Buyer to pay any preceding or subsequent Earn Out Payment. For the avoidance of doubt and by way of example, if the conditions precedent to the payment of the Earn Out Payment for the first Calculation Period are not satisfied, but the conditions precedent to the payment of the Earn Out Payment for the second Calculation Period are satisfied, then Buyer would be obligated to pay such Earn Out Payment for the second Calculation Period for which the corresponding conditions precedent have been satisfied, and not the Earn Out Payment for the first Calculation Period.
3.3.4    Timing of Payment of Earn Out Payments.  Subject to Section 3.3.2, any Earn Out Payment that Buyer is required to pay pursuant to Section 3.3.1 hereof shall be paid in full no later than five (5) Business Days following the date upon which the determination of Revenue for the applicable Calculation Period becomes final and binding upon the Parties (including any final resolution of any dispute raised by Seller in an Earn Out Calculation Objection Notice). Buyer shall pay to Seller the applicable Earn Out Payment in cash by wire transfer of immediately available funds.
3.3.5    Post-closing Operation of the Company.  Subject to the terms of this Agreement and the other Transaction Documents, subsequent to the Closing, Buyer shall have sole discretion with regard to all matters relating to the operation of the Company; provided, that Buyer shall not, directly or indirectly, take any actions in bad faith that would have the purpose of avoiding or reducing any of the Earn Out Payments hereunder.
3.3.6    Right of Set-off.  Buyer shall have the right to withhold and set off against any amount otherwise due to be paid pursuant to this Section 3.3 the amount of any Losses to which any Buyer Indemnified Party may be entitled under Section 9 of this Agreement.
3.3.7    No Security.  The Parties hereto understand and agree that (i) the contingent rights to receive any Earn Out Payment shall not be represented by any form of certificate or other instrument, are not transferable, except by operation of Laws relating to descent and distribution, divorce and community property, and do not constitute an equity or ownership interest in Buyer or any of its affiliates, (ii) Seller shall not have any rights as a security holder of Buyer or any of its affiliates as a result of Seller’s contingent right to receive any Earn Out Payment hereunder, and (iii) no interest is payable with respect to any Earn Out Payment. 
SECTION 4. CLOSING
4.1    Closing /Closing Date.  The closing (the “Closing”) shall take place at the offices of LeClairRyan, A Professional Corporation, 919 E. Main Street, 24th Floor, Richmond, Virginia 23219 at 10:30 a.m. local time on the date mutually agreed to the Parties, but no later than February 28, 2017 (the “Closing Date”).  The Closing and all of the transactions contemplated by this Agreement shall be deemed to have occurred simultaneously and become effective as of 11:59 p.m. Eastern Time on the Closing Date.
4.2    Deliveries of Seller.  At or prior to the Closing, Seller shall execute and/or deliver the following items:
4.2.1     A Bill of Sale in a form agreed to by the Parties;
4.2.2    An Assignment and Assumption Agreement in a form agreed to by the Parties;
4.2.3    A copy of the resolutions of the Board of Directors and the shareholder(s) of Seller authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereunder; 

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4.2.4    Copies of the Consents and approvals of all Persons which Seller is required to obtain in order to transfer the Specified Assets to Buyer and to consummate the transactions contemplated by this Agreement; 
4.2.5    Evidence, in substance and form reasonably satisfactory to Buyer, that the Specified Assets are being transferred to Buyer free and clear of Encumbrances;
4.2.6    The Facility Lease; 
4.2.7    The Services Agreement;
4.2.8    The Disclosure Schedules, updated, as necessary, as of the Closing Date; 
4.2.9    The certificate required by Section 7.8.1.4; and
4.2.10    Such additional documents as Buyer may reasonably request.
4.3    Deliveries of Buyer.  At or prior to the Closing, Buyer shall execute and/or deliver the following items:
4.3.1    The Purchase Price by wire transfer of immediately available funds pursuant to a wire direction letter provided by Seller to Buyer;
4.3.2    An Assignment and Assumption Agreement in a form agreed to by the Parties;
4.3.3    A copy of the resolutions of the Board of Directors of Buyer authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereunder; 
4.3.4    The Facility Lease; 
4.3.5    The Services Agreement; 
4.3.6    The certificate required by Section 7.8.2.4; and
4.3.7    Such additional documents as Seller may reasonably request.

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE SELLER
Seller represents and warrants to Buyer and covenants with Buyer, as set forth below in this Section 5.  

5.1    Organization.  Seller is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of its incorporation.  Seller possesses the full corporate power and authority to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  Seller is qualified or registered in all jurisdictions in which property owned, leased or operated by it or the nature of the business conducted by it makes such qualification necessary.  
5.2    Authority; Non-Contravention.
5.2.1    Seller has the right, power and authority to enter into and to perform its obligations under this Agreement, and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby by Seller has been duly authorized by all necessary corporate action on the part of Seller.  This Agreement constitutes a legal, valid and binding agreement of Seller and is enforceable against Seller in accordance 

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with its terms, subject as to enforceability, to bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization and other similar laws affecting creditors’ rights generally.  
5.2.2    Except as set forth on Schedule 5.2.2, neither the execution, delivery and performance of this Agreement nor the consummation or performance of any of the transactions contemplated hereby by Seller will directly or indirectly (with or without notice or lapse of time): 
5.2.2.1      contravene, conflict with or result in a violation of (a) any of the provisions of the articles or certificates of formation, bylaws, shareholders agreements, or other organizational documents of Seller or (b) any resolution adopted by the Board of Directors of Seller;  
5.2.2.2      contravene, conflict with or result in a violation or breach of, or result in a material default under, any provision of, any agreement, contract or other instrument of which Seller is a party or by which the Specified Assets are bound or subject; 
5.2.2.3      violate any Law or regulation, or any Judgment, order or decree of any court, Governmental Body, commission, agency or arbitrator, applicable to Seller, any of the Specified Assets or the Business; or,
5.2.2.4      result in the creation of any Encumbrance on the Specified Assets. 
5.2.3    Except as set forth on Schedule 5.2.3, Seller neither is nor will be required to make any filing with or give any notice to, or obtain any Consent from, any Person in connection with the execution and delivery of this Agreement, or the consummation or performance of any of the transactions contemplated hereby.
5.3    Title to Specified Assets.  Except as set forth on Schedule 5.3, Seller has good and valid title to all of the Specified Assets and has the right to transfer all rights, title and interest in such Specified Assets, free and clear of any Encumbrance.    
5.4    Legal Proceedings.  There are no Proceedings pending or, to the Knowledge of Seller, threatened, in each case, that relate to the Specified Assets.  Seller is not subject to any outstanding order, decree or ruling issued by any Governmental Body that relates to the Specified Assets.
5.5    Brokerage Fees.  No broker, finder or investment banker is entitled to any fee or commission from Seller for services rendered on behalf of Seller in connection with the transactions contemplated by this Agreement.
5.6    Compliance with Laws.  Seller has operated and is operating the Business in material compliance with all Laws and regulations, federal, state, provincial or local, domestic or foreign applicable to Seller, the Specified Assets or the Business.
5.7    Assumed Purchase Orders and Contracts.  Each purchase order, contract and lease (the “Assumed Contracts”) listed on Schedules 2.1.3.2 or 2.1.3.3 or listed in Section 2.1.3.4 is valid and in full force and effect and, to the Knowledge of the Seller, there is no basis on which an Assumed Contract will cease to be in full force and effect.  Seller has complied in all material respects with its obligations under all of the Assumed Contracts and no event has occurred or condition exists which constitutes or can reasonably be expected to constitute a material breach of any such Assumed Contract by the Seller or any other party thereto.
5.8    Intellectual Property.  Seller owns, or has the right to use, all of its Intellectual Property.  No consents of any Person are required for Buyer to use the Intellectual Property which Seller does not own but has the right to use immediately after the Closing. There is no claim pending or, to the Knowledge of Seller, threatened against Seller alleging that its use of any Intellectual Property infringes upon the rights of any Person and, to the Knowledge of Seller, no Person is infringing upon the rights of Seller in its Intellectual Property.  Complete copies of all documents pursuant to which Seller has acquired the right to use its Intellectual Property, or has licensed or otherwise permitted any other Person to use any of such Intellectual Property, have been delivered to Buyer. 

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5.9    Intentionally Omitted. 
5.10    Tax Matters.  
5.10.1      Seller has properly prepared and filed, in a timely manner, all Tax Returns, reports, related information and declarations (collectively, “Returns”) related to the Business and required of Seller by applicable Law and has paid or made provision for the payment of all Taxes related to the Business which have or may become due and no extension of time for filing any Return is presently in effect.  Except as set forth in Schedule 5.10, Seller has not received any assessment for unpaid Taxes, with respect to the Business, nor has agreed to any extension of time for the assessment of any federal, state, local, provincial, municipal or foreign Taxes related to the Business for any period.  Adequate provisions have been made for the payment of all current Taxes related to the Business.  There are no liens on the Specified Assets as a result of any Tax liabilities, except for Taxes not yet due and payable.
5.10.2    Seller is not a party to any Proceeding by any Taxing Authority.  There are no pending or threatened Proceedings by any Taxing Authority.  Seller is not a “foreign person” as that term is used in the Treasury Regulations Section 1.1445-2.
5.11    Product Warranty.  Each product sold or delivered by the Business before Closing and Seller’s finished goods inventory to be sold after Closing pursuant to Section 8.8 hereof have been sold and delivered in conformity with all applicable contractual commitments, Laws and all express warranties, and, Seller has no liability for replacement or repair thereof or other damages in connection therewith.  No product sold or delivered by the Business, including Seller’s finished goods inventory to be sold after Closing pursuant to Section 8.8, is subject to any guaranty, warranty or other indemnity beyond Seller’s applicable standard terms and conditions of sale, a copy of which has been provided to Buyer before Closing.
5.12    Product Liability.  To the Knowledge of Seller, Seller has no liability arising out of any injury to individuals or property as a result of the ownership, possession or use of any product sold or delivered by the Business prior to the Closing.
5.13    Labor and Employment Matters.  Schedule 5.13 sets forth a complete and correct list of each employment agreement, severance agreement, deferred compensation agreement or similar arrangements to which Seller is a party or by which it is obligated.  Seller has not agreed to pay any of its employees any bonus consideration based on the successful closing of the transactions contemplated under this Agreement.  Except as set forth on Schedule 5.13, Seller is not a party to any collective bargaining agreement or similar arrangement with a labor organization, union or work council representing any of its employees.  Seller is and has been in full compliance with the terms of all agreements listed on Schedule 5.13.  Except as set forth on Schedule 5.13, since January 1, 2013 there has not been, nor, to Seller’s Knowledge, has there been any threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor activity or dispute affecting the Seller or the Business.  There are no material controversies, claims or grievances pending, or, to the Knowledge of Seller, threatened between Seller and any of its employees.  Seller is and has been in compliance with all applicable Laws pertaining to employment and employment practices, including all Laws relating to labor relations, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers’ compensation, leaves of absence and unemployment insurance. Except as set forth on Schedule 5.13, there are no claims against Seller pending, or to Seller’s Knowledge, threatened to be brought or filed, by or with any Governmental Body or arbitrator in connection with the employment of any current or former applicant, employee, consultant, volunteer, intern or independent contractor of Seller, including, without limitation, any claim relating to unfair labor practices, employment discrimination, harassment, retaliation, equal pay, wage and hours or any other employment related matter arising under applicable Laws.  Seller has not taken any action prior to the date hereof that would trigger the WARN Act with respect to Seller.
5.14    Licenses and Permits.  Schedule 2.1.1.6 lists all Licenses and Permits required to conduct the Business as it is presently being conducted.  All such Licenses and Permits are in full force and effect and, except as set forth on Schedule 2.1.1.6, all of which are assignable. Seller has operated the Business in compliance in all material respects 

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with all of the terms and conditions set forth in such Licenses and Permits.  No notice of any violation of any such License or Permit has been received by Seller since January 1, 2016, or, to the Knowledge of Seller, recorded or published, and no proceeding is pending, or, to the Knowledge of Seller, threatened, to revoke any of them.  No approval of or filing with a Governmental Body is required in order to consummate the transactions hereunder.
5.15    Financial Statements.  Seller has delivered, or as of the Closing Date will have delivered, to Buyer the following financial statements and notes, true and correct copies of which are attached as Schedule 5.15 to this Agreement (collectively, the “Financial Statements”): (a) balance sheets of Seller as of each of December 31, 2014 and December 31, 2015, and the corresponding profit and loss statements of Seller for each of the calendar years ending December 31, 2014 and December 31, 2015; and (b) the balance sheet of Seller as of September 30, 2016, and the corresponding profit and loss statement of Seller as of September 30, 2016.  
5.16    Employee Benefit Plans.  Except as set forth in Schedule 5.16, Seller maintains no Employee Plans.  All Employee Plans listed in Schedule 5.16 are in compliance in all material respects with the requirements prescribed by applicable statutes, orders, governmental rules and regulations, and Seller has complied in all material respects with all applicable laws and regulations in the establishment and administration of the Employee Plans.  Seller has performed all obligations required to be performed by it under the Employee Plans, and Seller is not in any respect in material violation of, any of the Employee Plans.  All payments which are due for each Employee Plan have been timely paid, and all payments for any period ending on or before the Closing Date which are not yet due have been timely paid or accrued.  No action, suit, proceeding, hearing or investigation (other than routine claims for benefits) is pending or threatened with respect to any Employee Plan.
5.17    Environmental Matters.
5.17.1    The operation of the Business and the Specified Assets have been and currently are in compliance in all material respects with the Environmental Permits and Environmental Laws.  To the Knowledge of the Seller, there has been no Release or threat of Release of any Hazardous Substances (requiring investigation, assessment, remediation or monitoring under any Environmental Laws) in, on, under, or from any real property owned, leased or used in connection with the ownership or operation of the Business or the Specified Assets.  Seller has not received any written or, to Seller’s Knowledge oral, notice from any governmental authority or any third party alleging any non-compliance with or any potential liability under any Environmental Law or Environmental Permit relating to the Business or the Specified Assets.
5.17.2    To the Knowledge of the Seller, no underground storage tanks are located in, on or under any real property owned, leased or used in connection with the ownership or operation of the Business or the Specified Assets.  Any aboveground storage tanks used to store Hazardous Substances in or on any real property owned, leased or used in connection with the ownership or operation of the Business or the Specified Assets are in compliance in all material respects with all Environmental Laws.
5.17.3    To the Knowledge of Seller, there is not currently and never has been any material mold, fungal or other microbial growth in or on any of the real property owned, leased or used in connection with the ownership or operation of the Business, or conditions that could reasonably be expected to result in material mold, fungal or microbial growth (e.g. material problems with the heating, ventilation and air conditioning system, water leaks or building materials known to be conducive to material mold, fungal or microbial growth), that could reasonably be expected to result in material liability or material costs or expenses to remediate the mold, fungal or microbial growth or to remedy the conditions that could reasonably be expected to result in such material growth.
5.18    Full Disclosure.  None of the representations and warranties made in this Section 5 contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
SECTION 6. REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Seller and covenants with Seller, as set forth below in this Section 6.  

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6.1    Organization. Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of its jurisdiction of organization.  Buyer possesses the full limited liability company power and authority to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  
6.2    Authority; Non-Contravention.  Buyer has the right, power and authority to enter into and to perform its obligations under this Agreement, and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby by Buyer has been duly authorized by all necessary corporate action by its board of directors.    Buyer’s execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby: (a) does not constitute a violation of or default under its charter or bylaws; (b) does not constitute a default or breach (immediately or after the giving of notice, passage of time or both) under any contract to which Buyer is a party or by which Buyer is bound; (c) do not constitute a violation of any Law or Judgment that is applicable to it or to its businesses or assets, or to the transactions contemplated by this Agreement; and (d) do not require the Consent of any Person.  This Agreement constitutes a legal, valid and binding agreement of Buyer and is enforceable against Buyer in accordance with its terms, subject as to enforceability, to bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization and other similar laws affecting creditors’ rights generally.  
6.3    Brokerage Fees.  No broker, finder or investment banker is entitled to any fee or commission from Buyer for services rendered on behalf of Buyer in connection with the transactions contemplated by this Agreement.
6.4    Solvency.  At and immediately after the Closing, the Buyer will be solvent and capable of meeting its obligations as they become due, and will have assets exceeding its liabilities and a reasonable amount of capital for the conduct of its business.
6.5    Full Disclosure.  None of the representations and warranties made in this Section 6 contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

SECTION 7. PRE-CLOSING COVENANTS; TERMINATION
7.1    Conduct of Business Prior to the Closing.   From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Buyer (in its sole discretion), Seller shall (a) conduct the Business in the ordinary course of business consistent with past practice and (b) use reasonable best efforts to maintain and preserve intact the Specified Assets.  From the date hereof until Closing, but only to the extent such communications comply with and do not violate any applicable anti-trust Laws, Seller shall consult and review with Buyer regarding all potential purchase orders with customers and suppliers before such purchase orders become effective to aid the Parties in determining which of these purchase orders will be listed on Schedule 2.1.3.2 at Closing.  
7.2    Access to Information.  From the date hereof until the Closing, Seller shall (a) afford Buyer and its representatives, upon reasonable prior written notice, full and free access to and the right to inspect all of the properties, assets, books, records, contracts and other documents related to the Business and the Specified Assets, and (b) furnish Buyer and its representatives with such financial, operating and other data and information related to the Business as Buyer or any of its representatives may reasonably request.
7.3    No Solicitation of Other Bids.  So long as this Agreement has not been properly terminated, Seller shall not, nor shall Seller permit or authorize any of its respective representatives or affiliates to, directly or indirectly, (a) encourage, solicit, initiate, facilitate or continue inquiries regarding the direct or indirect disposition, whether by sale, merger or otherwise, of all or any portion of the Business or the Specified Assets (an “Acquisition Proposal”), (b) enter into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal, or (c) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal.

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7.4    Notification of Certain Events.  From the date hereof until the Closing, Seller shall promptly notify Buyer in writing of any fact, circumstance, event or action, the existence, occurrence or taking of which (a) has had, or could reasonably be expected to have, individually or in the aggregate, a material adverse effect on the Business or the Specified Assets, (b) has resulted in, or could reasonably be expected to result in, any representations or warranties made by Seller hereunder not being true and correct or (c) has resulted in, or could reasonably be expected to result in, the failure of any of the conditions set forth in Section 7.8 to be satisfied.  Buyer’s receipt of information pursuant to this Section 7.4 shall not operate as a waiver or otherwise affect any representations, warranty or agreement given or made by Seller in this Agreement.
7.5    Union Contract.  Prior to Closing, Seller and Buyer will utilize best efforts to negotiate with the labor organization representing Seller’s union employees and reach an agreement allowing the assignment of the Collective Bargaining Agreement between Seller and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union AFL-CIO, CLC on behalf of Local Union 5852-22 (the “Union”) dated October 1, 2013, as amended (the “Union Contract”), from Seller to Buyer, with terms reasonably acceptable to Buyer in its sole discretion.  The Parties acknowledge that assignment of the Union Contract from Seller to Buyer is Buyer’s preference.  Alternatively, Buyer may agree, in its sole discretion, to enter into a new collective bargaining agreement with the Union, which new agreement would terminate the current Union Contract with Seller, so long as the financial terms of such new agreement are similar to or the same as the proposed assignment of the Union Contract. Whichever contractual method is agreed upon, the Buyer Benefit Plans anticipated by Schedule 8.2.1 shall be substituted for Seller’s like plans.   
7.6    Finished Goods Inventory.  From the date hereof through the Closing Date, Seller will complete, as far as reasonably possible with the aim not to impair the continuity of the Business, all work-in-process and move all products into finished goods.  
7.7    Accomplishment of Closing Conditions.   From the date hereof until the Closing, each Party shall use reasonable best efforts to take such actions as are necessary to expeditiously satisfy the closing conditions set forth in Section 7.8 hereof. 
7.8    Conditions to Closing.
7.8.1    The obligations of Buyer to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Buyer’s waiver of each of the following conditions:
7.8.1.1    The representations and warranties of Seller contained in Section 5.1 through 5.3  shall be true and correct in all respects as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified date).
7.8.1.2    Seller shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date, including, but not limited to the deliveries contemplated by Section 4.2.
7.8.1.3    No Legal Proceeding shall have been commenced against Seller or Buyer, which would prevent the Closing.  No injunction or restraining order shall have been issued by any Governmental Body, and be in effect, which restrains or prohibits any transaction contemplated hereby.
7.8.1.4    Buyer shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Seller, that each of the conditions set forth in Section 7.8.1.1 and Section 7.8.1.2 have been satisfied.
7.8.1.5    Buyer has received advice from its counsel, reasonably satisfactory to Buyer in its sole discretion, that the transaction contemplated by this Agreement shall not require regulatory anti-trust approval, or 

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if such regulatory approval is required, the Parties have obtained all such anti-trust approvals or the applicable waiting periods have expired.
7.8.1.6    Buyer shall be satisfied, in is sole discretion, that the Union Contract has been assigned from Seller to Buyer or that a new collective bargaining agreement has been entered into between Buyer and the Union, whichever method is chosen, on financial terms reasonably acceptable to Buyer.  
7.8.1.7    No Material Adverse Change shall have occurred with respect to the Business or the Specified Assets.
7.8.2    The obligations of Seller to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Seller’s waiver of each of the following conditions:
7.8.2.1    The representations and warranties of Buyer contained in Section 6.1 and 6.2 shall be true and correct in all respects as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, which shall be true and correct in all respects as of that specified date).
7.8.2.2    Buyer shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement to be performed or complied with by it prior to or on the Closing Date, including, but not limited to the deliveries contemplated by Section 4.3.
7.8.2.3    No Legal Proceeding shall have been commenced against Seller or Buyer, which would prevent the Closing.  No injunction or restraining order shall have been issued by any Governmental Body, and be in effect, which restrains or prohibits any transaction contemplated hereby.
7.8.2.4    Seller shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Buyer, that each of the conditions set forth in Section 7.8.2.1and Section 7.8.2.2 have been satisfied.    
7.9    Termination.
7.9.1    Termination Generally.  This Agreement may be terminated at any time prior to the Closing:
7.9.1.1    By the mutual and written consent of the Parties hereto;
7.9.1.2    By Seller by written notice to Buyer if: (i) Seller is not then in material breach of any provision of this Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Buyer pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Section 7.8.2, or (ii) any of the conditions set forth in Section 7.8.2 shall not have been, or likely will not be, fulfilled by February 28, 2017, unless such failure shall be due to the failure of Seller to perform or comply with any of the covenants, agreements or conditions hereof to be performed or complied with by it prior to the Closing.
7.9.1.3    By Buyer by written notice to Seller if: (i) Buyer is not then in material breach of any provision of this Agreement and there has been a breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Seller pursuant to this Agreement that would give rise to the failure of any of the conditions specified in Section 7.8.1, or (ii) any of the conditions set forth in Section 7.8.1 shall not have been, or likely will not be, fulfilled by February 28, 2017, unless such failure shall be due to the failure of Buyer to perform or comply with any of the covenants, agreements or conditions hereof to be performed or complied with by it prior to the Closing.
7.9.2    Effect of Termination.  In the event of the termination of this Agreement in accordance with Sections 7.9.1.1 (unless otherwise agreed in writing between the Parties in the mutually termination agreement), 7.9.1.2(ii), or 7.9.1.3, the Deposit shall be immediately returned to Buyer and this Agreement shall forthwith become void 

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and there shall be no liability on the part of any party hereto except: (a) as set forth in this Section 7.9 and Section 10 hereof; and (b) that nothing herein shall relieve any party hereto form liability for any willful breach of any provision hereof.  However, in the event of the termination of this Agreement in accordance with Sections 7.9.1.2(i), the Deposit shall be paid to Seller and this Agreement shall forthwith become void and there shall be no liability on the part of any party hereto except: (a) as set forth in this Section 7.9 and Section 10 hereof; and (b) that nothing herein shall relieve any party hereto form liability for any willful breach of any provision hereof. 

SECTION 8. POST-CLOSING COVENANTS
8.1    Post-Closing Cooperation of the Parties; Further Assurances.  From and after the Closing Date: (a) Seller shall cooperate with Buyer to transfer to Buyer the full title, control and enjoyment of the Specified Assets; (b) Seller shall promptly deliver to Buyer all correspondence, papers, documents and other items and materials received by it or found to be in its possession which pertain to the Specified Assets; and (c) Seller shall cooperate with Buyer and its auditors with respect to requests for financial information relating to the Business prior to Closing, which financial information may be required to be reviewed, audited and publicly reported, pursuant to GAAP and/or applicable Law.  In furtherance of the foregoing, Buyer shall promptly take all actions and do all things necessary in order for Buyer to take physical possession of the Specified Assets which constitute tangible personal property.  Seller shall provide Buyer with access, upon reasonable prior notice from Buyer, to the Specified Assets to permit Buyer to comply with its obligations hereunder.  At any time and from time to time after the Closing Date, at Buyer’s request and without further consideration, Seller shall execute and deliver all such further agreements, certificates, instruments and documents and perform such further actions as Buyer may reasonably request, in order to fully consummate the transactions contemplated by this Agreement and fully carry out the purposes and intent of this Agreement.

8.2    Employees. 

8.2.1    Employees Generally.  Schedule 8.2.1 contains a list of all employees of Seller employed in the Business and sets forth for each the following: (i) name, (ii) title or position, (iii) hire date, (iv) current annual compensation, (v) commission, bonus or incentive based compensation, and (vi) general description of Seller’s fringe benefits and accrued vacation and sick leave policies. The Parties agree that Schedule 8.2.1 shall be updated and delivered with information current as of the Closing Date, with the addition of specific vacation and sick leave accrual information for each employee as of the Closing Date.  Except as set forth below, and save as otherwise agreed between the Parties at the end of the negotiation with the Union (as provided under Section 7.5 above), at Closing, the employment by Seller of all such employees shall be terminated.  Buyer shall offer employment to all employees of the Business upon such terms and with any such employee benefit plan (collectively, “Buyer Benefit Plans”) as Buyer determines; provided that three to five individuals, to be identified by Seller before Closing (collectively, “Seller’s Employees”), shall remain Seller employees to manage, supervise and oversee the Seller Ongoing Operation post-Closing. The employees who elect to become employees of Buyer are referred to as “Transferred Employees.”  Unless otherwise required by applicable Law or otherwise prohibited by the Buyer Benefit Plans, Transferred Employees shall be eligible for Buyer Benefit Plans effective as of the commencement date of each employee’s employment with Buyer and, unless otherwise required by applicable Law or otherwise prohibited by such Buyer Benefit Plan, Buyer shall recognize all service of the Transferred Employees with Seller, as if such service were with Buyer, for vesting, eligibility and accrual purposes.  Additionally, Buyer shall assume liability for the Transferred Employees’ vacation and sick leave accrued by Seller prior to Closing.   Buyer agrees and acknowledges that it will be responsible for providing or continuing group health plan continuation coverage under Section 4980B of the Internal Revenue Code and Sections 601 through 609 of ERISA (“COBRA”) to all “M&A qualified beneficiaries” as required by COBRA and Treasury Regulation Section 54.4980B-9 .  

8.2.2    Union Employees. For the avoidance of doubt, Buyer shall not assume any liability with respect to Seller’s union employees’ pension liability.  

8.3    Non-Competition, Non-Solicitation Confidentiality Covenants of Seller.
  
8.3.1    Confidentiality.

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8.3.1.1.    Seller has had access to, and familiarity with, the Proprietary and Confidential Information, which is known only to the shareholders, officers, directors of the Seller or other employees, former employees, consultants or others in a confidential information relationship with the Seller.  Without the prior written consent of Buyer, Seller hereby covenants and agrees that from and after the date hereof, Seller shall not disclose to any other Person or use in any manner any Proprietary and Confidential Information; provided, however, that Seller may disclose or use any such Proprietary and Confidential Information (i) as it becomes generally available to the public other than through a breach of this Agreement by Seller or any of its Affiliates and representatives, (ii) as it becomes available to Seller on a non-confidential basis from a source other than any other party hereto or such other party’s Affiliates or representatives, provided that such source is not bound by a confidentiality agreement or other obligations of secrecy, (iii) as may be required in any report, statement or testimony required to be submitted to any Governmental Body having or claiming to have jurisdiction over Seller, or as may be otherwise required by applicable Law, or as may be required in response to any summons or subpoena or in connection with any litigation, (iv) as may be required to obtain any governmental approval or consent required in order to consummate the transactions contemplated by this Agreement, (v) as may be necessary to establish Seller’s rights under this Agreement or (vi) as may be consented to in writing by Buyer or as may be necessary in Seller’s performance of duties on behalf of Buyer following the date hereof; provided, further that in the case of clauses (iii) and (iv) above, Seller will promptly notify Buyer and, to the extent practicable, provide Buyer a reasonable opportunity to prevent public disclosure of such Proprietary and Confidential Information prior to use or disclosure thereof.  Seller acknowledges responsibility for disclosures caused by Seller and any of its respective Affiliates and representatives.  

8.3.1.2.    For purposes of this Agreement, “Proprietary and Confidential Information” means any information of the Business that is not generally known to the public or to the Seller’s competitors in the industry, is used in the Business, and gives the Business an advantage over businesses that do not know the information. “Proprietary and Confidential Information” includes know-how, trade secrets, client lists, supplier lists, referral source lists, computer software or data of any sort developed or compiled by the Seller, algorithms, source or other computer code, requirements and specifications, procedures, security practices, regulatory compliance information, personnel matters, drawings, specifications, instructions, methods, processes, techniques, formulae, costs, profits or margin information, markets, sales, pricing policies, operational methods, plans for future development, data drawings, samples, processes, products, the financial condition, results of operations, business, properties, assets, liabilities, or future prospects of the Seller with respect to the Business.

8.3.2    Non-competition and Non-solicitation Covenants.  In consideration of the purchase by Buyer of the Specified Assets, Seller shall not, and shall cause its Affiliates, directors, officers and shareholders not to, during the Non-Compete Period and within the Territory, in any manner, directly or indirectly or by assisting any other Person, (i) own, control, manage, engage in, fund, finance or be a consultant for any business competitive with the Business, except that the ownership of Seller of not more than three percent of the shares of stock of any corporation having a class of equity securities actively traded on an national securities exchange or on NASDAQ shall not be deemed by violate the prohibitions of this paragraph, (ii) knowingly sell or distribute in the Territory stainless steel pipe and tube, regardless of where the pipe and tube is manufactured, except as a partner of Buyer or one of its Affiliates, including selling to third parties that Seller knows ultimately distribute these product lines into the Territory, (iii) recruit, solicit, induce or hire (except as a result of a general advertisement), or attempt to recruit, solicit, induce or hire, any of the Transferred Employees or employees of Buyer (or any of its Affiliates) to terminate their employment with, or otherwise cease their relationship with, Buyer (or any of its Affiliates), or (iv) solicit, divert, reduce or otherwise modify or attempt to solicit, divert, reduce or otherwise modify, the business of the clients, suppliers, licensors, licensees, franchisees, customers, accounts or business relations, or prospective clients, suppliers, licensors, licensees, franchisees, customers, accounts or business relations, of the Business.  Notwithstanding the foregoing, these restrictive Non-Competition and Non-Solicitation covenants shall not restrict Seller or its Affiliates from selling products into North America that Buyer and its Affiliates do not currently offer, including, but not limited to, any product manufactured and sold by Seller Ongoing Operation  .   

8.3.3    In the event a judicial or arbitral determination is made that any provision of this Section 8.3 constitutes an unreasonable or otherwise unenforceable restriction against Seller, provisions of this Section 8.3 shall be rendered void only to the extent that such judicial or arbitral determination finds such provisions to be unreasonable 

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or otherwise unenforceable with respect to Seller.  In this regard, any judicial authority construing this Agreement shall be empowered to sever any portion of the Territory, any prohibited business activity or any time period from the coverage of this Section 8.3 and to apply the provisions of this Section 8.3 to the remaining portion of the Territory, the remaining business activities and the remaining time period not so severed by such judicial or arbitral authority.  If any restriction set forth in this Section 8.3 is found by any court of competent jurisdiction or arbitration panel to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it is the intent of the Parties hereto that it extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

8.3.4    The restrictions contained in this Section 8.3 are necessary for the protection of the business and goodwill of Buyer and are considered by Seller to be reasonable for such purpose.  Seller expressly acknowledges the value of the consideration received in connection with this Section 8.3, agrees that any breach of this Section 8.3 will cause Buyer substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available at law or equity, Buyer shall have the right to seek specific performance and injunctive relief. 

		
	8.4
	Taxes. 

8.4.1    To the extent any sales, use, value-added, gross receipts, excise, registration, stamp duty, transfer or other similar taxes or governmental fees (“Transfer Taxes”) are imposed or levied by reason of, in connection with or attributable to this Agreement and the transactions contemplated hereby, such Transfer Taxes shall be borne by Buyer. The Parties shall cooperate with each other to the extent reasonably requested and legally permitted to minimize any such Transfer Taxes.  The Party required by law to file a Tax Return, if any, with respect to such Transfer Taxes shall do so within the time period prescribed by law.
 
8.4.2    Seller and Buyer shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with any Tax proceeding relating to the Specified Assets or the transactions contemplated by this Agreement.  Such cooperation shall include the retention and (upon the other Party’s request) the provision of records and information which are reasonably relevant to any Tax audit, litigation or other Proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  Seller agrees to retain all books and records with respect to Tax matters pertinent to the Specified Assets relating to any taxable period beginning before the Closing Date until the longer of (x) sixty (60) days after the expiration of the statute of limitations of the respective taxable periods or (y) six years, and to abide by all record retention agreements entered into with any Taxing Authority to the extent related to the Specified Assets or the Business.

8.4.3    Bulk Sales Law.  The Parties hereto waive compliance with the provisions of any “bulk sales laws” or similar Laws of any state or other jurisdiction which may be applicable to the transactions contemplated hereby or that may otherwise be applicable with respect to the sale of any or all of the Specified Assets to Buyer.  

8.5    Public Announcements.  Shortly after the date of this Agreement, Buyer, or an Affiliate of Buyer, will issue a Form 8-K (including press release), Form 8-K/A and other securities filings (collectively, the “Filings”) referencing the execution of this Agreement, the parties hereto and other material terms.   Except in such Filings and other subsequent filings that may be required by securities Law, neither Seller nor Buyer shall disclose to any Person, other than an Affiliate of such Party, the financial or other terms of this Agreement without the prior written consent of the other Party, unless required to do so by a Governmental Body or Law or in accordance with the terms hereof.  Notwithstanding the foregoing or anything else to the contrary in this Agreement, the Parties hereto (and each employee, representative or other agent of a Party) may disclose to any and all Persons the Tax treatment and Tax structure of the transactions contemplated by this Agreement and all materials of any kind that are provided to the Parties relating to such Tax treatment and Tax structure.  

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8.6    Assignment of Warranties.  At Closing, Seller shall assign all supplier/manufacturer warranties regarding the Specified Assets to Buyer, including, but not limited to, any such warranties on the Equipment and raw material Inventory. 

8.7    Facility Lease.

8.7.1    At Closing, Seller and Buyer shall enter into a facility lease, the form of which is attached hereto as Exhibit B (the “Facility Lease”), for the Facility.

8.7.2    At the conclusion of the Facility Lease term, Buyer will be responsible for moving or disposing of all of the Specified Assets at the Facility, with the exception of the pickling equipment.  Buyer shall pay the cost to disassemble the pickling equipment and dispose of the waste.  However, Seller and its affiliates will retain all environmental liabilities associated with the pickling operation both before and after Closing, unless caused by gross negligence or wilful misconduct of the Buyer during the occupancy of the Facility.  

8.8    Operations Post-Closing.

8.8.1    At Closing, Seller and Buyer shall enter into a Services Agreement, the form of which is attached hereto as Exhibit C (the “Services Agreement”), which shall detail, among other things, the agreements set forth in this Section 8.8.

8.8.2    Seller’s Finished Goods Inventory.  After Closing, Seller’s finished goods inventory will be stored, free of charge, at the Facility.  For Seller’s custom-made finished goods inventory at Closing, Seller’s Employees will sell those goods to the end customer at the pre-Closing agreed upon price negotiated between Seller and the customer and Seller will pay to Buyer a handling charge as detailed in the Services Agreement.  For Seller’s stock/commodity finished goods inventory (the overwhelming majority of which is ten inches or less in outside diameter), Buyer will sell all of this inventory for the best possible commercially available price - which in any case shall not be lower than the price received by Buyer (or any of its Affiliates) for the sale of its products in the same range - as supervised by Seller’s Employees on-site, alternating sales of Buyer’s like products, on a one for one basis, until all of Seller’s stock/commodity finished goods inventory is sold, with the goal to sell the entire pre-Closing finished goods inventory stock within one (1) year of Closing. The relevant sales proceeds (for Seller’s pre-Closing inventory), less the applicable handling fee, shall be paid by the relevant customers directly to Seller’s bank account and Seller will pay thereafter to Buyer a handling charge as detailed in the Services Agreement.

8.8.3    Obsolete and Scrap Inventory.  Obsolete and scrap inventory generated before Closing will be sold off by Seller’s Employees in a manner similar to Seller’s pre-Closing custom-made finished goods inventory, with the proceeds paid directly to Seller, who will thereafter pay to Buyer a handling charge detailed in the Services Agreement.  Seller’s Employees will also be responsible for selling off any galvanized scrap material generated before and after Closing, with Seller receiving the proceeds and thereafter paying to Buyer a handling charge as detailed in the Services Agreement.  The relevant sales proceeds, less the applicable handling fee, shall be paid by the relevant customers directly to Seller’s bank account. For the avoidance of confusion, obsolete and scrap stainless inventory generated after Closing will be sold off by Buyer, and Buyer will retain those proceeds.

8.8.4    Seller’s Employees.  Seller’s Employees on-site will provide oversight to the processes described in this Section 8.8 to provide assurances that Seller is receiving payments when Buyer has carried out the relevant sale and that Buyer is receiving the best available prices for stock/commodity inventory.  The Parties shall meet every quarter in order to monitor the sales process and, if necessary, plan how to progress.

8.8.5    Seller Ongoing Operation Post-Closing.  Following Closing, Seller will be responsible for purchasing all galvanized raw material and supplies, the sale of galvanized finished goods and the repairs and upkeep on the high frequency mills and their associated equipment.  As it will not be possible to break out the galvanized equipment for insurance and property tax purposes, Buyer will pay for these expenses for all of the equipment owned by Buyer and associated with the Seller Ongoing Operation and charge Seller its pro-rata share, which Seller shall 

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reimburse upon demand.  All Transferred Employees performing work on the Seller Ongoing Operation (union production and maintenance personnel) will be billed monthly to Seller at a fully loaded rate per hour that includes all fringe benefits, overtime, payroll taxes, cost of workers’ compensation coverage, etc.  Seller shall pay such invoices immediately.  Buyer will not charge Seller any fee or mark-up on these costs.  Buyer will be responsible for paying all utility bills during the Facility Lease term and will invoice Seller an agreed upon share of monthly utilities for the Seller Ongoing Operation.

8.8.6    Buyer’s Right to use certain Excluded Assets Post-Closing. Following Closing and until the expiry of the Facility Lease, Buyer shall have the right to use one (1) forklift and up to two (2) maintenance milling machines amongst those listed under Schedule 2.1.2.9 (the “Loaned Equipment”) which will remain in the ownership of the Seller and will continue to be also used by the Seller in connection with the Seller Ongoing Operation. The Parties shall use their best efforts to share in good faith the use of the Loaned Equipment on the basis of their actual production needs. Buyer acknowledges and agrees that, notwithstanding anything else to the contrary in this Agreement, Seller does not provide any representation or warranty as to the status or conditions or operation of the Loaned Equipment, nor undertakes any obligation to repair, maintain or replace the Loaned Equipment, or to indemnify the Buyer for any damage suffered if the Loaned Equipment should cease to be usable or operating.       

  
8.9    Product Warranty Claims.  If, following the Closing, Buyer receives a claim from any of its customers or any of the former customers of Seller that any of the Specified Assets or any other goods manufactured or sold by Seller prior to the Closing contain or suffer from any non-compliance with the terms or specifications of the purchase order or contract or makes any other warranty claim and, that as a result thereof, said customer has elected to either (i) reject the goods manufactured or sold by Seller, or (ii) claim a full or partial credit for the cost of such goods against any amounts owed to Buyer, then Buyer promptly shall notify Seller of such claim.  Upon receipt of such notification, Seller shall have ten (10) days in which to determine whether to accept or reject each product warranty claim.  If a product warranty claim is rejected by the Seller on commercially reasonable grounds, then Buyer may resolve such product warranty claim in any manner that Buyer deems necessary and appropriate under the circumstances and, to the extent that the relevant customer should obtain a valid and enforceable order from a competent court confirming that the claim is grounded and ordering Buyer to pay the customer to satisfy such product warranty, then Buyer may seek to recover its reasonable costs and expenses from Seller under and pursuant to the terms of Section 8 of this Agreement.  If Seller elects to accept any product warranty claims made by customers following the Closing, Seller shall assist Buyer in the resolution of such product warranty claims as more particularly described below.  Seller may elect to either (x) pay the customer for the product plus freight in exchange for returned product, if any, or (y) request that Buyer repair, remanufacture or replace the product and reimburse Buyer for Buyer’s actual costs (including depreciation costs, if any, and freight) in remanufacturing, repairing or replacing the product, less a credit for the amount of returned product based upon market value.  In such a case, the Parties shall act in good faith to reach an agreement on the amount due by the Seller and the Seller shall make any such agreed reimbursement to Buyer within five (5) business days following the date of the agreement. 

SECTION 9. INDEMNIFICATION
9.1    Indemnification. 
9.1.1    From and after the Closing Date, Seller shall indemnify, defend and hold harmless Buyer and each of its Affiliates and their respective directors, officers, employees, agents and representatives (each a “Buyer Indemnified Party”) from and against any and all claims, demands or suits (by any Person), losses, liabilities, damages, payments, costs and expenses (including, the costs and expenses of any and all actions, suits, Proceedings, assessments, judgments, settlements and compromises relating thereto and reasonable attorneys’ fees and reasonable disbursements in connection therewith) (each, an “Indemnifiable Loss”), asserted against or suffered by any Buyer Indemnified Party relating to, resulting from or arising out of (i) any breach by Seller of any covenant or agreement of Seller contained in this Agreement, (ii) any breach by Seller of any of the representations and warranties contained in Section 5 hereof, (iii) any Excluded Liability, including without limitation, the Union Contract (before Closing) and the Union’s pension liability, (iv) the operation by Seller of the Business (which in this instance includes the Seller Ongoing Operation) or 

17

its ownership, use or operation of the Specified Assets prior to the Closing, (v) Seller’s Employees, (vi) any and all environmental liabilities associated with the pickling operation, the Facility and the areas hosting the Equipment in the Specified Assets and arisen either before and after Closing, unless such environmental liabilities have been caused by gross negligence or willful misconduct of the Buyer (or any of its Affiliate) in the occupancy of the Facility post-Closing, and (vii) the operation of the Seller Ongoing Operation and its related assets at the Facility after Closing.  
9.1.2    From and after the Closing Date, Buyer shall indemnify, defend and hold harmless Seller and each of its Affiliates and their respective directors, officers, employees, agents and representatives (each a “Seller Indemnified Party”) from and against any and all Indemnifiable Losses asserted against or suffered by any Seller Indemnified Party relating to, resulting from or arising out of (i) any breach by Buyer of any covenant or agreement of Buyer contained in this Agreement, (ii) any breach by Buyer of any of the representations and warranties contained in Section 6 hereof, (iii) the Specified Liabilities, and (iv) the operation by Buyer of the ownership, use or operation of the Specified Assets after the Closing. 
9.1.3    Except for the right to seek specific performance,  which right or remedy shall not be affected or diminished hereby, the rights and remedies of Seller and Buyer under this Section 9 are exclusive and in lieu of such rights and remedies as Seller and Buyer may have under this Agreement, under applicable Law or in equity or otherwise for any breach of representation, breach of warranty or failure to fulfill any agreement or covenant hereunder on the part of any Party hereto (whether willful, intentional or otherwise), except in the event of fraud.
9.1.4    Notwithstanding anything to the contrary herein, no Person (including an Indemnitee) shall be entitled to recover from any other Person (including any Party required to provide indemnification under this Agreement (an “Indemnifying Party”)) any amount in excess of the actual damages, court costs and reasonable attorneys’ fees and disbursements suffered by such Party.  In furtherance of the foregoing, Buyer and Seller hereby irrevocably waive any right to recover punitive, indirect, special, exemplary and consequential damages, including damages for lost profits, arising in connection with or with respect to this Agreement (other than with respect to indemnification for a Third Party Claim).
9.1.5    Any indemnity payment under this Agreement will be treated as an adjustment to the Purchase Price, unless otherwise provided by law.
9.1.6    Notwithstanding the foregoing provisions of this Section 9, neither Seller nor Buyer shall be liable under Sections 9.1.1(ii) or 9.1.2(ii) unless and until the aggregate amount of liability thereunder exceeds $25,000 (the “Basket”), in which event the Indemnitee shall be entitled to indemnification thereunder only for the amount such liability exceeds the Basket, provided, however, that the total amount recoverable pursuant to Sections 9.1.1(ii) or 9.1.2(ii) shall not exceed $1,500,000 (the “Indemnity Limit”); provided further, however, that the Basket and the Indemnity Limit shall not apply in the event of (i) fraud or intentional misconduct, (ii) a breach by Seller of the representations and warranties set forth in Sections 5.1, 5.2, 5.3, 5.10, 5.12, 5.16 and 5.17 or (iii) a breach by Buyer of the representations and warranties set forth in Sections 6.1, 6.2 and 6.3.      
9.1.7    All of the representations and warranties contained in this Agreement shall survive the Closing and continue in full force and effect until eighteen (18) months after the Closing Date, except that (i) the representations and warranties contained in Sections 5.1, 5.2, 5.3, 5.10, 5.12, 5.16, 5.17, 6.1, 6.2 and 6.3 shall survive until the expiration of the applicable statute of limitations, at which time they shall lapse and (ii) any representation or warranty as to which an Indemnifiable Loss shall have been asserted in writing during the applicable survival period (which writing shall state with reasonable specificity the nature and amount of such Indemnifiable Loss) shall continue in effect with respect to such Indemnifiable Loss until such Indemnifiable Loss shall have been finally resolved or settled, provided that notice of the inaccuracy or breach or potential inaccuracy or breach thereof or other claim giving rise to such right or potential right of indemnity shall have been given to the Party against whom such indemnity may be sought prior to such time.  The covenants and agreements contained in this Agreement shall remain in effect until the expiration of such covenants and agreements pursuant to their express terms.  
9.1.8    Defense of Claims.  If any Indemnitee receives notice of the assertion of any claim or of the commencement of any claim, action, or Proceeding made or brought by any Person who is not a Party to this 

18

Agreement or any Affiliate of a Party to this Agreement (a “Third Party Claim”) with respect to which indemnification is to be sought from an Indemnifying Party, the following terms and provisions shall apply: 
9.1.8.1     The Indemnitee shall give written notice to the Indemnifying Party of any Third Party Claim which might give rise to a claim for indemnification, which notice shall state the nature and basis of the assertion and the amount thereof, to the extent known, provided, however, that no delay on the part of the Indemnitee in giving notice shall relieve the Indemnifying Party of any obligation to indemnify unless (and then solely to the extent that) the Indemnifying Party is prejudiced by such delay and then only to the extent so prejudiced. 
9.1.8.2     If any Third Party Claim is brought against an Indemnitee with respect to which the Indemnifying Party may have an obligation to indemnify, the Third Party Claim shall be defended by the Indemnifying Party and such defense shall include all proceedings and appeals which counsel for the Indemnitee shall deem reasonably appropriate.
9.1.8.3     Notwithstanding the provisions of the previous subsection, until the Indemnifying Party shall have assumed the defense of any such Third Party Claim, the defense shall be handled by the Indemnitee.  Furthermore, (i) if the Indemnitee shall have reasonably concluded that there are likely to be defenses available to the Indemnitee that are different from or in addition to those available to the Indemnifying Party; (ii) if the Indemnifying Party fails to provide the Indemnitee with evidence reasonably acceptable to the Indemnitee that the Indemnifying Party has sufficient financial resources to defend and fulfill its indemnification obligation with respect to the Third Party Claims; (iii) if the Third Party Claim involves other than money damages and seeks injunctive or other equitable relief; (iv) the Third Party Claim involves a customer, competitor or a supplier of the Business; or (v) if a judgment against the Indemnitee will, in the good faith opinion of the Indemnitee, establish a custom or precedent which will be adverse to the best interests of its continuing business, the Indemnifying Party shall not be entitled to assume the defense of the Third Party Claim and the defense shall be handled by the Indemnitee.  If the defense of the Third Party Claim is handled by the Indemnitee under the provisions of this subsection, the Indemnifying Party shall pay all legal and other expenses reasonably incurred by the Indemnitee in conducting such defense.  Notwithstanding the foregoing, any product warranty claims pursuant to Section 8.9 that also trigger indemnification obligations under this Section 9 shall be defended utilizing a joint defense between Seller and Buyer, with Seller, as the Indemnifying Party, paying all costs of such joint defense.
9.1.8.4     In any Third Party Claim defended by the Indemnifying Party (i) the Indemnitee shall have the right to be represented by advisory counsel and accountants, at its own expense, (ii) the Indemnifying Party shall keep the Indemnitee fully informed as to the status of such Third Party Claim at all stages thereof, whether or not the Indemnitee is represented by its own counsel, (iii) the Indemnifying Party shall make available to the Indemnitee, and its attorneys, accountants and other representatives, all books and records of the Indemnifying Party relating to such Third Party Claim and (iv) the parties shall render to each other such assistance as may be reasonably required in order to ensure the proper and adequate defense of the Third Party Claim.
9.1.8.5     In any Third Party Claim, the party defending the same shall not make any settlement of any claim without the prior written consent of the other party, which consent shall not be unreasonably withheld, delayed or conditioned.  Without limiting the generality of the foregoing, it shall not be deemed unreasonable to withhold consent to a settlement involving injunctive or other equitable relief against the Indemnitee or its assets, employees or business, or relief which the Indemnitee reasonably believes could establish a custom or precedent which will be adverse to the best interests of its continuing business.
SECTION 10. OTHER PROVISIONS
10.1    Fees and Expenses.  Except with respect to indemnification claims which shall be governed by Section 9, Buyer shall pay all of the fees and expenses incurred by Buyer, and Seller shall pay all of the fees and expenses incurred by Seller, in negotiating and preparing this Agreement (and all other agreements and documents executed in connection herewith or therewith) and in consummating the transactions contemplated hereby.  

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10.2    Notices.  All notices and other communications hereunder shall be in writing an shall be deemed given on the day when delivered personally or by facsimile transmission (with confirmation), on the next Business Day when delivered to a nationally recognized overnight courier or five (5) Business Days after deposited as registered or certified mail (return receipt requested), in each case, postage prepaid, addressed to the recipient Party at its address or facsimile number specified below (or at such other address or facsimile address for a Party as shall be specified by like notice; provided that notices of a change of address or facsimile number shall be effective only upon receipt thereof):
If to Buyer, to:

Bristol Metals, LLC
c/o Synalloy Corporation
4510 Cox Road, Suite 201
Glen Allen, Virginia 23060
Attention:  Craig Bram, CEO
Telephone: (804) 822-3261
Facsimile: (804) 822-3270

With copies to:

LeClairRyan, A Professional Corporation
Riverfront Plaza, East Tower
919 East Main Street
Richmond, Virginia 23219
Attention:  John C. Selbach, Esq.
Telephone: (804) 343-4388
Facsimile: (804) 916-7288

If to Seller, to:

Marcegaglia USA, Inc.
c/o Marcegaglia Specialties Spa
Via Bresciani, 16
46040 Gazoldo degli Ippoliti, MN - Italy
Attn: Antonio Marcegaglia, Chairman and CEO
Telephone: +39 0376 685430    
Fax: +39 0379 657901

With copies to:

Marcegaglia Specialties Spa
Via Bresciani, 16
46040 Gazoldo degli Ippoliti, MN - Italy
Attn: Avv. Elisa Scihanick, Corporate General Counsel
Telephone: +39 0376 685432
Fax: +39 0379 685656
10.3    Entire Understanding.  This Agreement, together with the Exhibits and Schedules hereto, between Buyer and Seller, states the entire understanding between the Parties with respect to the subject matter hereof, and supersedes all prior oral and written communications and agreements, and all contemporaneous oral communications and agreements, with respect to the subject matter hereof.  The Agreements and the Exhibits and Schedules hereto may be amended at any time prior to Closing provided that any such amendment is approved in writing by each of the Parties.   

20

10.4    Assignment.  This Agreement shall bind, benefit, and be enforceable by and against Buyer and the Seller and their respective successors and assigns.  No Party shall in any manner assign any of its rights or obligations under this Agreement without the express prior written consent of the other Party.  
10.5    Waivers.  Except as otherwise expressly provided herein, no waiver with respect to this Agreement shall be enforceable unless in writing and signed by the Party against whom enforcement is sought.  Except as otherwise expressly provided herein, no failure to exercise, delay in exercising, or single or partial exercise of any right, power or remedy by any Party, and no course of dealing between or among any of the Parties, shall constitute a waiver of, or shall preclude any other or further exercise of, any right, power or remedy.
10.6    Severability.  If any provision of this Agreement is construed to be invalid, illegal or unenforceable, then the remaining provisions hereof shall not be affected thereby and shall be enforceable without regard thereto.
10.7    Offset.  Neither Party shall have the right of offset under this Agreement.    
10.8    Counterparts.  This Agreement may be executed in any number of counterparts, including by facsimile, each of which when so executed and delivered shall be an original hereof, and it shall not be necessary in making proof of this Agreement to produce or account for more than one counterpart hereof.
10.9    Section Headings.  Section and subsection headings in this Agreement are for convenience of reference only, do not constitute a part of this Agreement, and shall not affect its interpretation.
10.10    References.  All words used in this Agreement shall be construed to be of such number and gender as the context requires or permits.
10.11    Controlling Law.  THIS AGREEMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.   
10.12    Jurisdiction and Process.  In any action between or among any of the Parties arising out of this Agreement, any of the agreements contemplated hereby or otherwise, (a) each of the Parties irrevocably consents to the exclusive jurisdiction and venue of the federal and state courts located in the State of Delaware, (b) if any such action is commenced in a state court, then, subject to applicable law, no Party shall object to the removal of such action to any federal court located in the State of Delaware, (c) each of the Parties irrevocably consents to service of process by first class certified mail, return receipt requested, postage prepaid, to the address at which such Party is to receive notice in accordance with Section 10.2, and (d) the substantially prevailing Party shall be entitled to recover their reasonable attorneys’ fees, costs, and disbursements from the other Parties (in addition to any other relief which the substantially prevailing Party may be entitled).   
10.13    No Third-Party Beneficiaries.  No provision of this Agreement is intended to or shall be construed to grant or confer any right to enforce this Agreement, or any remedy for breach of this Agreement, to or upon any Person other than the Parties hereto.  

[Signature page follows]

21

INTENDING TO BE LEGALLY BOUND HEREBY, the Parties have executed or caused to be executed this Asset Purchase Agreement effective as of the day and year first above written.

BRISTOL METALS, LLC

By:  ________________________________
Name:
Title:

MARCEGAGLIA USA, INC.

By:  ________________________________
Name:
Title:

The undersigned, Marcegaglia Specialties Spa, a company organized under the laws of Italy, hereby unconditionally guarantees the obligations of Marcegaglia USA, Inc. set forth in Sections 5, 8.3 and 9 of this Agreement, subject to the terms and conditions set forth therein.

MARCEGAGLIA SPECIALTIES SPA

By:  ________________________________
Name:
Title:

The undersigned, Synalloy Corporation, a Delaware corporation, hereby unconditionally guarantees the obligations of Bristol Metals, LLC set forth in Section 3.3 of this Agreement, subject to the terms and conditions set forth therein.

SYNALLOY CORPORATION

By:  ________________________________
Name:
Title:

22

EXHIBIT 1

DEFINED TERMS

“Acquisition Proposal” shall have the meaning given to such term in Section 7.3 herein. 

“Affiliate” of a Person means a Person who, directly or indirectly through one or more subsidiaries, controls or is controlled by, or is under common control with, such Person.

“Agreement” shall have the meaning given to such term in the Introduction herein.

“Assumed Contracts” shall have the meaning given to such term in Section 5.7 herein. 

“Basket” shall have the meaning given to such term in Section 9.1.6 herein.

“Business” shall have the meaning given to such term in the Recitals herein.

“Buyer” shall have the meaning given to such term in the Introduction herein.

“Buyer Benefit Plans” shall have the meaning given to such term in Section 8.1.1 herein.

“Buyer Indemnified Party” shall have the meaning given to such term in Section 9.1.1 herein.

“Calculation Period” means each successive three month period during the Earn Out Period, beginning with the first three month period following the Closing Date.

“Closing” shall have the meaning given to such term in Section 4.1 herein.

“Closing Date” shall have the meaning given to such term in Section 4.1 herein.

“Code” means the United States Internal Revenue Code of 1986, as amended.

“Consent” means any consent, approval, order or authorization of, or any declaration, filing or registration with, or any applicable, notice or report to, or any waiver by, or any other action (whether similar or dissimilar to any of the foregoing), of, by or with, any Person, which is necessary in order to take a specified action or actions in a specified manner and/or to achieve a specified result.

“Customer Lists” shall have the meaning given to such term in Section 2.1.1.3 herein.

“Deposit” shall have the meaning given to such term in Section 3.1.2 herein.

“Earn Out Calculation” shall have the meaning given to such term in Section 3.3.2.1 herein.

“Earn Out Calculation Delivery Date” shall have the meaning given to such term in Section 3.3.2.1 herein.

“Earn Out Calculation Objection Notice” shall have the meaning given to such term in Section 3.3.2.2 herein.

“Earn Out Calculation Statement” shall have the meaning given to such term in Section 3.3.2.1 herein.

“Earn Out Payment” shall have the meaning given to such term in Section 3.3.1 herein.

“Earn Out Period” means the four year period following the Closing Date.

“Employee Plan” means any employee benefit plan as defined in Section 3(3) of ERISA which is sponsored by the Seller for employees of the Seller.

“Encumbrance” means any liens, superlien, security interest, pledge, right of first refusal, mortgage, easement, covenant, restriction, reservation, conditional sale, prior assignment, hypothecate or other encumbrance, claim, burden or charge of any nature.

“Entity” means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), firm, society or other enterprise, association, organization or entity.

“Equipment” shall have the meaning given to such term in Section 2.1.1.2 herein.

“Escrow Agent” means LeClairRyan, A Professional Corporation.

“Escrow Agreement” shall have the meaning given to such term in Section 3.1.2 herein. 

“Excluded Assets” shall have the meaning given to such term in Section 2.1.2 herein.

“Excluded Liabilities” shall have the meaning given to such term in Section 2.1.4 herein.

“Facility” shall have the meaning given to such term in Section 2.1.2.6 herein.

“Facility Lease” shall have the meaning given to such term in Section 8.6.1 herein.

“Filings” shall have the meaning given to such term in Section 8.4 herein.

“Financial Statements” shall have the meaning given to such term in Section 5.19 herein.

“GAAP” means generally accepted accounting principles under current United States accounting rules and regulations, consistently applied.

“Governmental Body” means any: (a) nation, principality, republic, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, provincial, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board (including any federal, state, provincial or local board(s) of medicine), instrumentality, officer, official, representative, organization, unit, body or Entity and any court or other tribunal); (c) multi-national organization or body; or (d) individual, Entity or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, policy, military or taxing authority or power of any nature.

"including" means including but not limited to.

“Indemnifiable Loss” shall have the meaning given to such term in Section 9.1.1 herein.

“Indemnifying Party” shall have the meaning given to such term in Section 9.1.4 herein.

“Indemnitee” means a Buyer Indemnified Party or a Seller Indemnified Party, as applicable.

“Indemnity Limit” shall have the meaning given to such term in Section 9.1.6 herein.

“Inventory” shall have the meaning given to such term in Section 2.1.1.1 herein.

“Judgment” means any order, writ, injunction, citation, award, decree, administrative order or agreement or other judgment of any nature of any Governmental Body.

“Knowledge of Seller” and similar phrases means that neither Antonio Marcegaglia, Lorenzo Biagi nor Marco Costi had knowledge that the statement made is incorrect.

“Law” means any provision of any foreign, federal, state, provincial or local law, common law, statute, ordinance, charter, constitution, treaty, code, rule, regulation or guideline.

“Licenses and Permits” shall have the meaning given to such term in Section 2.1.1.6 herein.

“Material Adverse Change” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise) or assets of the Business, (b) the value of the Specified Assets, or (c) the ability of Seller to consummate the transactions contemplated hereby on a timely basis; provided, however, that “Material Adverse Change” shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions generally affecting the industries in which the Business operates; (iii) any changes in financial or securities markets in general; or (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof.

“Non-Compete Period” shall mean a period of ten (10) years after the Closing Date. 

“Party” and “Parties” shall have the meaning given to such terms in the Introduction herein.

“Person” means any individual, Entity or Governmental Body.

“Proceeding” means any demand, claim, suit, action, litigation, investigation, audit, arbitration, administrative hearing or other proceeding of any nature.

“Proprietary and Confidential Information” shall have the meaning given to such term in Section 8.2.1.2 herein.

“Purchase Price” shall have the meaning given to such term in Section 3.1.1 herein.

“Returns” shall have the meaning given to such term in Section 5.12.1 herein.

“Revenue” means, with respect to any Calculation Period, gross sales generated by Buyer of small diameter stainless steel pipe and tube (outside diameter of ten inches or less) determined in accordance with GAAP. 

“Review Period” shall have the meaning given to such term in Section 3.3.2.2 herein.

“Seller” shall have the meaning given to such term in the Introduction herein.

“Seller’s Employees” shall have the meaning given to such term in Section 8.1.1 herein.

“Seller Indemnified Party” shall have the meaning given to such term in Section 9.1.2 herein.

“Seller Ongoing Operation” means the galvanized pipe and tube manufacturing business and the stainless steel squares, rectangles and rounds tubes manufacturing business for ornamental or automotive application of Seller operating at the Facility before and after the Closing, as more fully described in the Services Agreement.

“Services Agreement” shall have the meaning given to such term in Section 8.7.1 herein.

“Specified Assets” shall have the meaning given to such term in Section 2.1.1 herein.

“Specified Liabilities” shall have the meaning given to such term in Section 2.1.3 herein.

“Tax” means: (a) any foreign, federal, state, provincial or local income, earnings, profits, gross receipts, franchise, capital stock, net worth, sales, use, value added, occupancy, general property, real property, personal property, intangible property, transfer, fuel, excise, payroll, withholding, unemployment compensation, social security, escheat, unclaimed property, retirement or other tax of any nature; or (b) any deficiency, interest or penalty imposed with respect to any of the foregoing.

“Taxing Authority” shall mean any domestic, foreign, federal, national, state, provincial, county or municipal or other local government, any subdivision, agency, commission or authority thereof, or any quasi-Governmental Body exercising tax regulatory authority.

“Tax Returns” means all federal, state, provincial, local, foreign and other Tax returns and reports, information returns, statements, declarations, estimates, schedules, notices, notifications, forms, elections, certificates or other documents required to be filed or submitted to any Governmental Body with respect to the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or compliance with any Law relating to any Tax, including any amendments thereto.

“Territory” means the North America.  

“Third Party Claim” shall have the meaning given to such term in Section 9.1.8 herein.

“Transfer Taxes” shall have the meaning given to such term in Section 8.3.1 herein.

“Transferred Employees” shall have the meaning given to such term in Section 8.1.1 herein.

“Union” shall have the meaning given to such term in Section 7.5 herein.

“Union Contract” shall have the meaning given to such term in Section 7.5 herein.

EXHIBITS AND SCHEDULES

	
			
	Exhibit A
	—
	Form of Escrow Agreement

	Exhibit B
	—
	Form of Facility Lease

	Exhibit C
	—
	Form of Services Agreement

	 
	 
	 

	 
	 
	 

	Schedule 2.1.1.1
	—
	Inventory (at or before Closing)

	Schedule 2.1.1.2
	—
	Equipment

	Schedule 2.1.1.6
	—
	Licenses and Permits (at or before Closing)

	Schedule 2.1.2.2
	—
	Seller’s Finished Goods Inventory (at or before Closing)

	Schedule 2.1.2.9
	—
	Seller Ongoing Operation Equipment

	Schedule 2.1.3.1
	—
	Transferred Employees Accrued Leave (at or before Closing)

	Schedule 2.1.3.2
	—
	Assumed Purchase Orders (at or before Closing)

	Schedule 2.1.3.3
	—
	Assumed Trade Accounts Payable (at or before Closing)

	Schedule 3.2
	—
	Allocation Statement (at or before Closing)

	Schedule 5.2.2
	—
	Non-Contravention

	Schedule 5.2.3
	—
	Consents

	Schedule 5.3
	—
	Title to Specified Assets

	Schedule 5.10
	—
	Taxes

	Schedule 5.13
	—
	Labor and Employment Matters

	Schedule 5.15
	—
	Financial Statements

	Schedule 5.16
	—
	Employee Benefit Plans

	Schedule 8.2.1
	—
	Employees

Exhibit A
Form of Escrow Agreement
See attached.

Exhibit B
Form of Facility Lease
See attached.

Exhibit C
Form of Services Agreement
See attached.

AMENDMENT NO. 1
TO
ASSET PURCHASE AGREEMENT 

This Amendment No. 1 to Asset Purchase Agreement (this “Amendment”), effective as of February 28, 2017, is entered into by and between Marcegaglia USA, Inc., a Pennsylvania corporation (“Seller”), and Bristol Metals, LLC, a Tennessee limited liability company (“Buyer”). Seller and Buyer may each be referred to herein individually as a “Party” and together as the “Parties”.

WHEREAS, Seller and Buyer entered into an Asset Purchase Agreement dated December 9, 2016 (the “Agreement”); and 

WHEREAS, Seller and Buyer now wish to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree as follows:

1.Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Agreement.

2.This Amendment shall be effective as of the date first written above.

3.This Amendment is an amendment to the Agreement and confirms additional agreements on the matters set forth below between Seller and Buyer.

4.Section 2.1.1 of the Agreement is hereby amended by adding the following as a new Section 2.1.1.8 at the end of Section 2.1.1: 

“2.1.1.8    All of Seller’s finished goods inventory owned by Seller on the Closing Date and listed on Schedule 2.1.1.8 (the “Finished Goods Inventory”).”

5.Section 2.1.2.2 of the Agreement is hereby deleted in its entirety.

6.Section 2.1.2.9 of the Agreement is hereby deleted in its entirety and replaced with the following:

“2.1.2.9    The two high frequency mills and all other equipment associated solely with the Seller Ongoing Operation including relative tooling and supplies, the cranes, Mill 4, the Drever furnace and the other miscellaneous equipment, associated solely with the Seller Ongoing Operation, dismantled, obsolete and not in use (i.e. those under the “big top”) and the other equipment listed on Schedule 2.1.2.9.”

7.Section 2.1.3.4 of the Agreement is hereby deleted in its entirety and replaced with the following:

“2.1.3.4    The obligations of Seller set forth in the offer letter from Seller to John P. Woodward dated February 6, 2015.”

8.Section 3.1.1.1 of the Agreement is hereby deleted in its entirety and replaced with the following:

“3.1.1.1    Three Million One Hundred Four Thousand One Hundred Twenty Six and 15/100 Dollars ($3,104,126.15) for Seller’s raw Inventory and One Million Five Hundred Forty Eight Thousand Seven Hundred and 56/100 Dollars 

3

($1,548,700.56) for Seller’s supplies Inventory, both as determined pursuant to Section 3.1.3, plus One Million Eight Hundred Thousand Six Hundred Eighty Six and 10/100 Dollars ($1,800,686.10) for the Finished Goods Inventory.”

9.Section 3.3.6 of the Agreement is hereby deleted in its entirety.

10.Section 8.8.2 of the Agreement is hereby deleted in its entirety.    

11.Exhibit C (Form of Services Agreement) of the Agreement is hereby deleted in its entirety and replaced with the form of the Services Agreement attached hereto as Exhibit 1. 

12.The Parties hereby acknowledge and agree that the Schedules to the Agreement, updated as of the Closing Date, are attached hereto as Exhibit 2, except those Schedules that have no update from December 9, 2016, which Schedules shall remain as delivered on December 9, 2016.

13.Seller shall provide Buyer access to its current Internet connectivity at the Facility until the first to occur of (i) Buyer being supplied with adequate Internet connectivity by the local service provider or (ii) ninety (90) days following the Closing.  Buyer shall pay for this Internet connectivity as a utility under the Services Agreement.

14.Seller shall not take any action to that would cause the revocation of any of the Licenses and Permits by any Governmental Body and shall allow Buyer to operate at the Facility using such Licenses and Permits until the first to occur of (i) all appropriate Governmental Bodies reissue or transfer all required Licenses and Permits to Buyer to operate at the Facility or (ii) ninety (90) days following the Closing.  During the time that Buyer is operating the Facility under the terms and conditions of any License or Permit issued to Seller, Buyer shall not cause or allow the operation of the Facility to be in violation of any said License or Permit and Buyer shall indemnify and hold Seller harmless for any action or any failure to act by Buyer that would cause a violation of any license or permit to occur.  Said indemnification obligations shall include, but not be limited to, the payment of any fines or penalties to any Governmental Body asserting any such claim against the Seller for the failure, after the Closing, to comply with any license or permit or any violation of any Environmental Law.

15.Except as set forth in this Amendment, the Agreement is hereby ratified and confirmed in all respects and shall continue in full force and effect according to its terms.

16.The Agreement and this Amendment constitute the entire agreement of the parties regarding their subject matter and supersede all prior or contemporaneous agreements or understandings regarding such subject matter.

17.This Amendment may be executed in any number of counterparts and by each of the Parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signatures of the Parties transmitted by electronic means shall be deemed to be their original signatures for all purposes.

[SIGNATURES ON THE NEXT PAGE]

4

INTENDING TO BE LEGALLY BOUND HEREBY, the Parties have executed or caused to be executed this Amendment No. 1 to Asset Purchase Agreement effective as of the day and year first above written.

BRISTOL METALS, LLC

By:  ________________________________
Name:
Title:

MARCEGAGLIA USA, INC.

By:  ________________________________
Name:
Title:

    

5

Exhibit 1

Exhibit C

Form of Services Agreement

See attached.

Exhibit 2

See attached for the complete and final form of the Schedules to the Agreement.
	
			
	Schedule 2.1.1.1
	—
	Inventory

	Schedule 2.1.1.2
	—
	Equipment

	Schedule 2.1.1.6
	—
	Licenses and Permits

	Schedule 2.1.1.8
	—
	Finished Goods Inventory

	Schedule 2.1.2.9
	—
	Seller Ongoing Operation Equipment

	Schedule 2.1.3.1
	—
	Transferred Employees Accrued Leave

	Schedule 2.1.3.2
	—
	Assumed Purchase Orders

	Schedule 2.1.3.3
	—
	Assumed Trade Accounts Payable

	Schedule 3.2
	—
	Allocation Statement

	Schedule 5.2.2
	—
	Non-Contravention (no change from December 9, 2016)

	Schedule 5.2.3
	—
	Consents (no change from December 9, 2016)

	Schedule 5.3
	—
	Title to Specified Assets (no change from December 9, 2016)

	Schedule 5.10
	—
	Taxes (no change from December 9, 2016)

	Schedule 5.13
	—
	Labor and Employment Matters (no change from December 9, 2016)

	Schedule 5.15
	—
	Financial Statements (no change from December 9, 2016)

	Schedule 5.16
	—
	Employee Benefit Plans (no change from December 9, 2016)

	Schedule 8.2.1
	—
	Employees (no change from December 9, 2016)

**(no change from December 9, 2016) means that this Schedule is not attached hereto because there is no change to this Schedule from the version of the Schedules provided as of December 9, 2016

Schedule 2.1.1.1
Inventory

See attached.

Schedule 2.1.1.2
Equipment

See attached.

All equipment manuals, welding procedures, set-up charts, programming software, blueprints, drawings, and other technical information and data related to the Equipment, and specifically the mills that are included in the Equipment.

2

Schedule 2.1.1.6
Licenses and Permits

		
	1.
	NPDES General Permit PAG-03 for storm water associated with Industrial Activities (NPDES Permit No. PAR206160 Authorization No. 737532)

		
	2.
	Allegheny County Health Department Air Quality Minor Source Operating Permit No. 0626

		
	3.
	Allegheny County Sanitary Authority Industrial Discharge Permit No. P2-0115

		
	4.
	United States Environmental Protection Agency RCRA Subtitle C Site Identification No. PAR000036988

		
	5.
	Pennsylvania Department of Environmental Protection Certificate of Registration, Radiation Producing Machine (Registration No. 50-58992; SF Id. No. 845225)

3

Schedule 2.1.1.8
Finished Goods Inventory

See attached.

4

Schedule 2.1.2.9
Seller Ongoing Operation Equipment

SAP Licenses

See attached.

5

Schedule 2.1.3.1
Transferred Employees Accrued Leave

See attached.

6

Schedule 2.1.3.2
Assumed Purchase Orders

See attached.

7

Schedule 2.1.3.3
Assumed Trade Accounts Payable

See attached.

8

Schedule 3.2
Allocation Statement

Inventory - $6,453,512.81
Equipment - $8,000,000.00
Non-Competition Agreement - $500,000.00

9EX-10.25

 Exhibit 10.25 

COLLABORATION AND LICENSE AGREEMENT 

THIS COLLABORATION AND LICENSE AGREEMENT (the
“Agreement”) is entered into as of December 22, 2016 (the “Effective Date”), by and between CHEMOCENTRYX, INC., a Delaware corporation, having
an address at 850 Maude Avenue, Mountain View, CA 94043, U.S. (“ChemoCentryx”), and VIFOR (INTERNATIONAL) LTD., a corporation organized under the laws of Switzerland, having an
address at Rechenstrasse 37, CH-9014 St. Gallen, Switzerland (“VIT”). ChemoCentryx and VIT may be referred to herein individually as a “Party” or collectively as the
“Parties”. 
 RECITALS 

WHEREAS, ChemoCentryx is a biopharmaceutical company focused on discovering, developing, and
commercializing therapeutics to treat autoimmune diseases and inflammatory disorders; 
 WHEREAS, ChemoCentryx
is developing a CCR2 inhibitor known as CCX140 for the treatment of rare renal diseases, such as focal segmental glomerulosclerosis, as well as for the treatment of chronic kidney disease; 

WHEREAS, VIT is an international pharmaceutical company that develops and commercializes innovative and high quality
products and therapies worldwide to improve the life of patients suffering from chronic kidney disease; and 

WHEREAS, ChemoCentryx and VIT desire to establish a collaboration for the continued development and, if successful,
commercialization of products containing CCX140 worldwide, excluding the U.S. and China, all under the terms and conditions set forth herein. 

AGREEMENT 

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

	1.	DEFINITIONS 

 1.1 “Additional Indication” means an
Indication in the Target Field, or in the Field outside the Target Field as mutually agreed by the Parties pursuant to Section 2.8(a), excluding the Initial Indication and CKD. 

1.2 “Additional Indication Rejection Condition” has the meaning set forth in Section 4.7(f). 

1.3 “Additional Study” has the meaning set forth in Section 4.6(a). 

1.4 “Advanced Amount” has the meaning set forth in Section 4.4(d). 

1.5 “Affiliate” means, with respect to any party, any entity that, directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with such party, but for only so long as such control exists. As used in this definition, “control” means (a) to possess, directly or indirectly, the power to
direct the management or policies of an entity, whether through ownership of voting securities, by contract relating to voting rights, or corporate governance; or (b) direct or indirect beneficial ownership of more than fifty percent (50%) (or
such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction) of the voting share capital or other equity interest in such entity. Notwithstanding the

 
foregoing, for the purposes of this Agreement, Fresenius Medical Care shall not be considered an Affiliate of VIT, except as provided in Section 1.135. 

1.6 “Alliance Manager” has the meaning set forth in Section 3.5. 

1.7 “API” means active pharmaceutical ingredient, which is also commonly referred to as drug substance. 

1.8 “Applicable Laws” means the applicable provisions of any and all national, supranational, regional, state,
and local laws, treaties, statutes, rules, regulations, administrative codes, guidance, ordinances, judgments, decrees, directives, injunctions, orders, permits (including MAAs) of or from any court, arbitrator, Regulatory Authority, or governmental
agency or authority having jurisdiction over or related to the subject item. 
 1.9 “Budget Cap” has the meaning set
forth in Section 4.4(d). 
 1.10 “Bulk Drug Product” means the Product as bulk drug product for Commercial use
in the Territory. 
 1.11 “Bundled Product” means the Product (other than a Combination Product) that is either
(a) packaged together with another product that does not contain a Compound for sale or shipment as a single unit or sold at a single price or (b) marketed or sold collectively with such other product as a single product. 

1.12 “Business Day” means any day other than a Saturday or Sunday on which the banks in Mountain View, California and
in Zurich, Switzerland are open for business. 
 1.13 “Buy In” has the meaning set forth in Section 4.7(h).

 1.14 “Calendar Quarter” means each respective period of three (3) consecutive months ending on
March 31, June 30, September 30, and December 31. 
 1.15 “Calendar Year” means each respective
period of twelve (12) consecutive months ending on December 31. 
 1.16 [***]. 

1.17 [†**]. 

1.18 “Change of Control” means, with respect to a Party: (a) the sale of all or substantially all of its assets
or all of its assets relating to the Product; (b) a merger, reorganization or consolidation involving such Party in which the holders of the voting securities of such Party outstanding immediately prior thereto cease to beneficially own at
least fifty percent (50%) of the combined voting power of the surviving entity, directly or indirectly, immediately after such merger, reorganization or consolidation; or (c) a transaction in which an entity or individual, or group of entities
and/or individuals acting in concert, acquires more than fifty percent (50%) of the voting equity securities of such Party. 
 1.19
“ChemoCentryx Affiliate” means any Affiliate of ChemoCentryx; provided that, in the event of a Change of Control of ChemoCentryx, the term “ChemoCentryx Affiliate” shall exclude any entity that becomes

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

	†**	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 2 

 
an Affiliate of ChemoCentryx as a result of such Change of Control and all Affiliates of such entity (other than ChemoCentryx and its Affiliates in existence as of such Change of Control);
provided, however, if such excluded Affiliate Develops or Commercializes the Product or Compound or otherwise performs any activities or obtains any rights with respect to the Product or Compound, such excluded Affiliate will be deemed a
ChemoCentryx Affiliate. 
 1.20 “ChemoCentryx Collaborator” means any Third Party licensee of ChemoCentryx with
respect to the Development and Commercialization of any Compound or Product in any country outside the Territory, excluding any contract research organization or other Third Party conducting activities on behalf of ChemoCentryx. 

1.21 “ChemoCentryx Data” has the meaning set forth in Section 10.1. 

1.22 “ChemoCentryx Indemnitee” has the meaning set forth in Section 12.2. 

1.23 “ChemoCentryx Know-How” means all
Know-How that ChemoCentryx or any ChemoCentryx Affiliate Controls as of the Effective Date or during the Term, including Joint Inventions and Know-How within Product
Technology, that is necessary or reasonably useful for the Development, manufacture, or Commercialization of any Compound or Product in the Field in the Territory, but excluding any Know-How to the extent
exclusively related to (a) any compound (other than a Compound), which compound is proprietary to ChemoCentryx or any ChemoCentryx Affiliates or ChemoCentryx Collaborators or (b) the combination of a Compound with any such proprietary
compound. ChemoCentryx Know-How includes the Licensed ChemoCentryx Data. 
 1.24
“ChemoCentryx Patents” means all Patents that ChemoCentryx or any ChemoCentryx Affiliate Controls as of the Effective Date or during the Term, including Joint Patents, that would be infringed, absent a license or other right to
practice granted under, or joint ownership rights in, such Patents, by the Development, manufacture, or Commercialization of any Compound or Product in the Field in the Territory (considering patent applications to be issued with the then-pending
claims), but excluding any Patents to the extent exclusively related to (a) any compound (other than a Compound), which compound is proprietary to ChemoCentryx or any ChemoCentryx Affiliates or ChemoCentryx Collaborators or (b) the
combination of a Compound with any such proprietary compound. The ChemoCentryx Patents existing as of the Effective Date are set forth in the Letter Agreement. 

1.25 “ChemoCentryx Technology” means the ChemoCentryx Know-How and the
ChemoCentryx Patents. 
 1.26 “China” means the People’s Republic of China, the Hong Kong Special
Administrative Region of the People’s Republic of China and the Macao Special Administrative Region of the People’s Republic of China. 

1.27 “China Agreement” has the meaning set forth in Section 2.9. 

1.28 “China Agreement Revenue” means all amounts received by ChemoCentryx from a Third Party under a China Agreement,
but specifically excluding: (a) amounts received in consideration of the issuance of equity or debt securities of ChemoCentryx or its Affiliate; (b) payments for research, development, or commercialization activities undertaken by
ChemoCentryx or its Affiliate; (c) reimbursements for amounts paid or costs incurred by or on behalf of ChemoCentryx or its Affiliate, including patent prosecution, maintenance, enforcement or defense expenses; (d) amounts received as an
extension of credit or loan or as a distribution of a patent enforcement award; or (e) payments for the supply of goods and/or services. Notwithstanding the foregoing, if an upfront payment under a China Agreement includes amounts received in
consideration of the issuance of equity or debt securities of ChemoCentryx or its Affiliate, [***], will be included in China Agreement Revenue. [***]. In the event that ChemoCentryx grants rights to the Product along with a license to any
proprietary technology or intellectual property related to products other than the Product, ChemoCentryx 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 3 

 
shall reasonably and in good faith allocate the amounts received among all technology licensed or sublicensed, and China Agreement Revenue shall include only the portion allocated to the Product.
For clarity, China Agreement Revenue excludes amounts received by ChemoCentryx from a Third Party in connection with a sale of substantially all of the business or assets to which this Agreement relates. 

1.29 “CKD” means chronic kidney disease. 

1.30 “CKD Option” has the meaning set forth in Section 2.10(a). 

1.31 “CKD Option Period” has the meaning set forth in Section 2.10(a). 

1.32 “CMC” means chemistry, manufacturing, and control. 

1.33 “CMO” means contract manufacturing organization. 

1.34 “Combination Product” means any Product that comprises two or more APIs, at least one (1) of which is the
Compound. 
 1.35 “Commercialization” means the conduct of all activities relating to the commercial use, promotion,
marketing, sale, offering for sale, and distribution (including importing, exporting, transporting, customs clearance, warehousing, invoicing, handling, and delivering the Product to customers) of the Product in the Field in or outside the
Territory, including: (i) applying for Pricing and Reimbursement Approval; (ii) sales force efforts, detailing, advertising, medical education, planning, marketing, sales force training, and sales and distribution; and
(iii) scientific and medical affairs. For clarity, Commercialization does not include any Development activities, whether conducted before or after Regulatory Approval or Pricing and Reimbursement Approval. “Commercialize” and
“Commercializing” have correlative meanings. 
 1.36 “Commercialization Plan” means a written plan
for the Commercialization of the Product, at a level of detail and containing subject matter that is consistent with, and not in addition to, commercialization plans that VIT and its Affiliates prepare for internal use, as may be updated and amended
in accordance with Section 6.2. 
 1.37 “Commercially Reasonable Efforts” means, with respect to the efforts to
be expended by a Party with respect to any objective, including Development or Commercialization of the Compound or the Product, those reasonable good faith efforts and resources to accomplish such objective that a similarly-situated company within
the biopharmaceutical industry would typically devote to a similar objective under similar circumstances, in each case taking into account all Relevant Factors in effect at the time such efforts are to be expended, and in the case of the
Development, Regulatory Approval, Pricing and Reimbursement Approval or Commercialization of the Product or Compound in the Territory, those efforts typically devoted to such activities by a similarly-situated company within the biopharmaceutical
industry in the relevant country with respect to a compound, product or product candidate which is of similar market potential in such country and which is at a similar stage in its development or product life cycle as the Product or Compound, in
each case taking into account all Relevant Factors in effect at the time such efforts are to be expended. 
 1.38
“Committee” means the JSC, JCC, or any subcommittee established by the JSC, as applicable. 
 1.39
“Compound” means the CCR2 inhibitor referred to by ChemoCentryx as CCX140, having the structure set forth in the Letter Agreement, or any salt, hydrate, ester, isomer, or polymorph thereof. 

1.40 “Confidential Information” of a Party means all Know-How, materials, and
other proprietary scientific, marketing, financial, or commercial information that is: (a) disclosed by or on behalf of such Party or 

  
 4 

 
any of its Affiliates or otherwise made available to the other Party or any of its Affiliates, whether made available orally, in writing, or in electronic form; or (b) learned by the other
Party pursuant to this Agreement. The existence and terms of this Agreement are the Confidential Information of both Parties. All information disclosed by a Party under the Confidentiality Agreement that relates to the Compound or Product or the
transaction under this Agreement is deemed the Confidential Information of such Party pursuant to this Agreement. 
 1.41
“Confidentiality Agreement” means that certain Confidentiality Agreement between the Parties dated as of June 5, 2015. 

1.42 “Control” or “Controlled” means, with respect to any
Know-How, Patents or other intellectual property rights, the legal authority or right (whether by ownership, license or otherwise but without taking into account any rights granted by one Party to the other
Party pursuant to this Agreement) to grant access, a license, or a sublicense of or under such Know-How, Patents, or other intellectual property rights to another party, or to otherwise disclose proprietary or
trade secret information to another party, without breaching the terms of any then-existing agreement with a Third Party or misappropriating the proprietary or trade secret information of a Third Party; provided that a Party shall not Control
any Know-How or Patents of a Third Party unless they are in-licensed pursuant to a Third Party License. 

1.43 “Co-Promote” means to conduct detailing activities relating to the
Product in the Target Field directed to healthcare professionals. 
 1.44
“Co-Promotion Agreement” has the meaning set forth in Section 2.10(b). 

1.45 “Core Patents” means (a) all ChemoCentryx Patents that have a priority date on or before the Effective Date
and (b) any ChemoCentryx Patents claiming Product Technology that is then being used in or with the Product that is then being Developed or Commercialized. 

1.46 “Cost of Goods” means, with respect to any Compound or Product, the cost to manufacture Drug Substance, Bulk Drug
Product or finished Product for clinical use, as applicable, which means: (a) in the case of products and services acquired from Third Parties, payments made to such Third Parties; and (b) in the case of manufacturing services performed by
a Party or its Affiliates, including manufacturing services that are reasonably necessary to support products and services acquired from Third Parties as contemplated in subsection (a), the actual unit costs of manufacture, plus the variances and
other costs specifically provided for herein. Actual unit costs shall consist of direct material costs, direct labor costs, and manufacturing overhead directly attributable to such Drug Substance, Bulk Drug Product or finished Product, all
calculated in accordance with U.S. generally accepted accounting principles. Direct material costs shall include the costs incurred in purchasing materials, including sales and excise taxes imposed thereon, customs duties and charges levied by
government authorities, and all costs of packaging components. Direct labor costs shall include the cost of: (i) employees working in manufacturing and packaging of such Drug Substance, Bulk Drug Product or finished Product and engaged in
direct manufacturing activities; and (ii) direct or indirect quality control and quality assurance activities. Manufacturing overhead attributable to such Drug Substance, Bulk Drug Product or finished Product shall include a reasonable
allocation of indirect labor costs (not previously included in direct labor costs) and a reasonable allocation of facilities and other overhead costs. In all cases under clause (b) above and the preceding sentence, Cost of Goods excludes any
[***] or any yield loss in excess of [***]. In addition, Cost of Goods for commercial supply shall not include the cost of process development and validation, stability batches (unless used for sale after Regulatory Approval), CMC work and similar
activities. 
 1.47 “Data” means any and all scientific, technical, test, marketing, or sales data pertaining to any
Compound or Product, including research data, clinical pharmacology data, CMC data (including analytical and 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 5 

 
quality control data and stability data), pre-clinical data, clinical data, or submissions made in association with an IND or MAA with respect to any
Compound or Product. 
 1.48 “Develop” means to develop (including clinical, nonclinical, and CMC development),
analyze, test, and conduct preclinical, clinical, and all other regulatory trials for a Compound or Product, including all post-approval clinical trials, as well as all related regulatory activities and any and all activities pertaining to new
Indications, pharmacokinetic studies, and all related activities including work on new formulations, new methods of treatment, and CMC activities including new manufacturing methods. For clarity, Development includes clinical trials and studies that
VIT (or its Affiliate or Sublicensee) is required to perform in the Territory. “Developing” and “Development” have correlative meanings. 

1.49 “Development Funding Payment” has the meaning set forth in Section 4.4(a). 

1.50 “Development Plan” has the meaning set forth in Section 4.3(a). 

1.51 “Distributor” means, with respect to one or more countries in the Territory, any entity that (a) is not a
Sublicensee or Affiliate of VIT, (b) purchases Product from VIT or its Affiliates or Sublicensees for such country(ies), (c) assumes responsibility from VIT or its Affiliate or Sublicensee for all or a portion of the Commercialization of
Product in such country(ies), and (d) sells Product in such country(ies) without providing any consideration to VIT or its Affiliate or Sublicensee on account of such sale. 

1.52 “Divestiture” means the sale, exclusive license or transfer of rights to the Next Generation Compound to a Third
Party without receiving a continuing share of profit, royalty payments, or other economic interest in the success of such Next Generation Compound in the Territory. “Divest” has a correlative meaning. 

1.53 “Drug Substance” has the meaning set forth in Section 7.1. 

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

1.55 “EU” means the European Union as constituted at the applicable time. Notwithstanding the foregoing, the EU shall
include the United Kingdom for purposes of this definition regardless of whether such country officially exits the EU during the Term. 

1.56 “European Patent Convention” means the Convention on the Grant of European Patents of 5 October 1973, as
amended. 
 1.57 “Excess” has the meaning set forth in Section 4.4(b). 

1.58 “Excluded Claim” has the meaning set forth in Section 15.3(f). 

1.59 “Executive Officers” has the meaning set forth in Section 3.4(b). 

1.60 “Expert Arbitrators” has the meaning set forth in Section 15.4(a). 

1.61 “Export Control Laws” means all applicable U.S. laws and regulations relating to (a) sanctions and embargoes
imposed by the Office of Foreign Assets Control of the U.S. Department of Treasury or (b) the export or re-export of commodities, technologies, or services, including the Export Administration Act of
1979, 24 U.S.C. §§ 2401-2420, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-1706, the Trading with the Enemy Act, 50 U.S.C. §§ 1 et. seq., the Arms Export Control Act, 22 U.S.C. §§ 2778
and 2779, and the International Boycott Provisions of Section 999 of the U.S. Internal Revenue Code of 1986 (as amended). 

  
 6 

 1.62 “FCPA” means the U.S. Foreign Corrupt Practices Act (15 U.S.C.
Section 78dd-1, et. seq.), as amended. 
 1.63 “FDA” means the United States
Food and Drug Administration or any successor entity thereto. 
 1.64 “Field” means all therapeutic, prophylactic
and diagnostic uses in humans, including the Target Field. 
 1.65 “First Commercial Sale” means, on a country-by-country basis, the first sale by VIT or any of its Affiliates or Sublicensees to a Third Party for end use or consumption of the Product in a given country in the
Territory, after Regulatory Approval and Pricing and Reimbursement Approval has been granted with respect to the Product in such country. 

1.66 “Fresenius Medical Care” means Fresenius Medical Care AG & Co. KGaA, a partnership organized under the
laws of Germany with its corporate headquarters in Bad Homburg v.d.H., Germany. As of the Effective Date, Fresenius Medical Care owns a forty-five percent (45%) ownership interest in VIT. 

1.67 “FTE” means a full-time person dedicated by ChemoCentryx or VIT to medical and clinical affairs, regulatory, or
preclinical or pharmaceutical development activities under a Development Plan as provided in Article 4, or in the case of less than a full-time dedicated person, a full-time equivalent person year, based upon a total one thousand eight hundred
twenty (1,820) hours per year of work on or directly related to a Development Plan. Such activities to be performed by ChemoCentryx or VIT employees may include protocol writing, medical monitoring, recording and writing up results, data analysis,
reviewing literature and references, holding scientific discussions, seminars and symposia, managing and directing scientific staff, overseeing and coordinating Product supply, and carrying out management duties directly related to a Development
Plan. 
 1.68 “FTE Rate” means, for purposes of determining ChemoCentryx’s or VIT’s internal development
costs, initially an amount equal to [***] per FTE per year; on January 1, 2017, and annually thereafter, such amount shall be increased by [***]. Such FTE rate includes all benefits and any applicable overhead. 

1.69 “Galenica” means Galenica AG with its registered seat at Untermattweg 8, 3000 Bern, Switzerland. As of the
Effective Date, Galenica owns 100% of Vifor Pharma Participations Ltd and Vifor Pharma Participations Ltd owns 100% of VIT. 
 1.70
“Generic Product” means, with respect to the Product in a particular country, regulatory jurisdiction, or region, any pharmaceutical product that (a) (i) contains the same APIs as the Product for the same route of
administration as the Product and is approved by the Regulatory Authority in such country, regulatory jurisdiction, or region (for an Indication for which the Product obtained Regulatory Approval from the applicable Regulatory Authority in such
country, regulatory jurisdiction or region); or (ii) is approved by the Regulatory Authority in such country, regulatory jurisdiction or region as a substitutable generic for the Product (for an Indication for which the Product obtained
Regulatory Approval from the applicable Regulatory Authority in such country, region or jurisdiction) in accordance with applicable regulations of such Regulatory Authority; and (b) is sold in such country, regulatory jurisdiction or region by
ChemoCentryx, its Affiliates or a Third Party (excluding any Third Party that is a Sublicensee) who did not purchase such pharmaceutical product in a chain of distribution that included any of VIT or its Affiliates or Sublicensees. 

1.71 “Global Trademark” has the meaning set forth in Section 10.12(a). 

1.72 “Governmental Authority” means any national, international, federal, state, provincial, or local government, or
political subdivision thereof, or any multinational organization or any authority, agency, or commission entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power, any court or
tribunal (or any department, bureau or division thereof, or any governmental arbitrator or arbitral body). 
  

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 7 

 1.73 “ICC” has the meaning set forth in Section 15.3(a). 

1.74 “ICC Rules” has the meaning set forth in Section 15.3(a). 

1.75 “ICH” means the International Conference on Harmonization (of Technical Requirements for Registration of
Pharmaceuticals for Human Use). 
 1.76 “IND” means an investigational new drug application, clinical trial
authorization or equivalent application filed with the applicable Regulatory Authority, which application is required to commence human clinical trials in the applicable country. 

1.77 “Indication” means any specific disease or medical condition in humans. 

1.78 “Initial Indication” means focal segmental glomerulosclerosis. 

1.79 “Initial Indication Fully-Burdened Budget” has the meaning set forth in Section 4.4(a). 

1.80 “Inventions” means all inventions, whether or not patentable, discovered, made, conceived, or conceived and
reduced to practice, in the course of activities contemplated by this Agreement. 
 1.81 “Joint Commercialization
Committee” or “JCC” has the meaning set forth in Section 3.2. 
 1.82 “Joint
Inventions” has the meaning set forth in Section 10.2. 
 1.83 “Joint Manufacturing Subcommittee” or
“JMC” has the meaning set forth in Section 7.1. 
 1.84 “Joint Patent” has the meaning set
forth in Section 10.2. 
 1.85 “Joint Technology” means Joint Inventions and Joint Patents. 

1.86 “Joint Steering Committee” or “JSC” has the meaning set forth in Section 3.1. 

1.87 “Know-How” means any information, including discoveries, improvements,
modifications, processes, methods, techniques, protocols, formulas, data, inventions, know-how, trade secrets, patentable or otherwise, and results, including without limitation physical, chemical, biological,
toxicological, pharmacological, safety, and pre-clinical and clinical data, dosage regimens, control assays, and product specifications, but excluding any Patents. 

1.88 “Knowledge” means, as applied to a Party, that such Party has the actual knowledge of a particular fact or other
matter. 
 1.89 “Letter Agreement” means that certain letter agreement of even date herewith by and between
ChemoCentryx and VIT, including all exhibits thereto. 
 1.90 “Licensed ChemoCentryx Data” means the ChemoCentryx
Data, excluding any Data related to any compound (other than the Compound) that is proprietary to ChemoCentryx or its Affiliates or ChemoCentryx Collaborators or related to the combination of the Compound with any such proprietary compound. 

1.91 “Licensed VIT Data” means the VIT Data, excluding any (a) Data related to treatment algorithms or patient
care programs, (b) Data related to any compound that is proprietary to VIT, any of its Affiliates or their Third Party licensees or Sublicensees or the combination of a Compound with any such proprietary compound, and (c) Data resulting
from development or commercialization efforts that are not conducted under this Agreement and do not use the Compound or the Product or any ChemoCentryx Technology, including, without limitation, Data not directly related to the Compound or the
Product that has been developed by VIT, any of its Affiliates or any Third Party under independent research programs or agreements (e.g., generic drug delivery Data) without use of the Compound or the Product or any ChemoCentryx Technology. 

  
 8 

 1.92 “Local Trademark” has the meaning set forth in Section 10.12(b).

 1.93 “Losses” has the meaning set forth in Section 12.1. 

1.94 “MAA” means a marketing authorization application or equivalent application, and all amendments and supplements
thereto, filed with the applicable Regulatory Authority in any country or jurisdiction. 
 1.95 “Major Market
Countries” means France, Switzerland, Germany, Italy, Spain, the United Kingdom, Brazil, Japan, Canada, Mexico, South Korea and, if added to the Territory pursuant to Section 2.9, China. In addition, if and when the Territory includes
the U.S., the U.S. will be included in the Major Market Countries. 
 1.96 “MHLW” means the Japanese Ministry of
Health, Labour and Welfare or any successor entity thereto. 
 1.97 “Milestone Event” means any event identified in
Section 8.2 or 8.3. 
 1.98 “Milestone Payment” means any payment identified in Section 8.2 or 8.3 to be
made by VIT to ChemoCentryx on the occurrence of a Milestone Event. 
 1.99 “Net Sales” means, with respect to the
Product, the gross amounts invoiced for sales or other dispositions of the Product during the Royalty Term by or on behalf of VIT and its Affiliates and Sublicensees to Third Parties (other than Sublicensees but including to Distributors and
Wholesalers), less the following deductions to the extent included in the gross invoiced sales price for the Product or otherwise directly paid or incurred by VIT or its Affiliates or Sublicensees, as applicable, with respect to the sale or other
disposition of the Product: 
 (a) normal and customary trade and quantity discounts actually allowed and properly taken directly with
respect to sales of the Product; 
 (b) credits or allowances given or made for rejection or return of previously sold Product or for
retroactive price reductions and billing errors; 
 (c) rebates and chargeback payments granted to managed health care organizations,
pharmacy benefit managers (or equivalents thereof), national, state/provincial, local, and other governments, their agencies and purchasers and reimbursers, or to trade customers; 

(d) costs of freight, insurance, and other transportation charges directly related to the distribution of the Product; 

(e) clawback taxes, tariffs, duties, excises, value added tax and other sales taxes, and other taxes imposed upon and paid with respect
to the sale, transportation, delivery, use, exportation, or importation of the Product (which does not include income taxes), as adjusted for rebates and refunds; 

(f) prompt-pay discounts and discounts in the form of [***] and reasonably allocated to the
Product; and 
 (g) [***] relating to the sale of the Product that are [***]; provided that (A) any such amounts that are [***]
and (B) [***] the amounts deducted pursuant to this Section 1.99(g) with respect to any reporting period [***] for sales or other dispositions of the Product during such reporting period by on behalf of VIT, its Affiliates and Sublicensees to Third
Parties (other than Sublicensees). 
 Such amounts shall be determined in accordance with International Financial Reporting Standards,
consistently applied. 
  

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 9 

 Net Sales will not include Products transferred at no profit for use in connection with clinical
trials or other development activity, pre-clinical research and trials, promotional use (including samples), compassionate sales or use, indigent programs, investigator initiated trials, or on a named patient
basis. 
 Upon any sale or other disposition of the Product that should be included within Net Sales for any consideration other than
exclusively monetary consideration on bona fide arms’-length terms, then for purposes of calculating Net Sales under this Agreement, the Product shall be deemed to be sold exclusively for money at the average sales price during the applicable
reporting period generally achieved for the Product in the country in which such sale or other disposition occurred when the Product is sold alone and not with other products. 

In no event will any particular amount identified above be deducted more than once in calculating Net Sales. Sales of the Product between VIT
and its Affiliates or Sublicensees for resale shall be excluded from the computation of Net Sales, but the subsequent resale of the Product to a Third Party shall be included within the computation of Net Sales. 

In the event of a Combination Product, the Net Sales from the Combination Product, for the purposes of determining royalty payments, will be
determined by multiplying the Net Sales of the Combination Product in a particular country, during the applicable royalty reporting period, by the fraction, A/(A+B), where A is the average sale price of the Product containing the Compound as the
only API when sold separately in finished form and B is the average sale price of the other API(s) included in the Combination Product when sold separately in finished form (the “Other Product”), in each case in such country during
the applicable royalty reporting period or, if sales of both the Product containing the Compound as the only API and the Other Product did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred in
such country. 
 If the Product containing the Compound as the only API is sold separately in such country, but the Other Product has not
been sold separately in such country, Net Sales will be determined by multiplying the Net Sales of the Combination Product in such country, during such reporting period, by the fraction A/C, where C is the average sale price of the Combination
Product in such country during the applicable royalty reporting period. 
 If the Other Product is sold separately in such country, but the
Product containing the Compound as the only API has not been sold separately in such country, Net Sales will be determined by multiplying the Net Sales of the Combination Product in such country, during such reporting period, by the fraction 1-B/C. 
 In the event that such average sale price cannot be determined for both the Product containing
the Compound as the only API and the Other Product, Net Sales for the purposes of determining royalty payments will be calculated by multiplying the Net Sales of the Combination Product by the fraction D/(D+E), where D is the fair market value of
the Product containing the Compound as the only API and E is the fair market value of the Other Product. In such event, the Parties will in good faith make a determination of the respective fair market values of the Product containing the Compound
as the only API and the Other Product. If the Parties fail to agree within thirty (30) days after commencing discussions (or such longer period as the Parties may agree), the matter will be submitted to an independent mutually agreed Third
Party expert for resolution, whose decision will be final and binding on the Parties. 
 If the Product is sold as part of a Bundled
Product, the invoiced price for the Product included in such Bundled Product will not be discounted by a greater percentage than the percentage at which the invoiced price of the other products included in such Bundled Product are discounted. 

1.100 “Next Generation Compound” means any pharmaceutical product, other than the Product, that inhibits the function
of the chemoattractant receptor known as CCR2 or its ligands as its primary mechanism of action. 
 1.101 “Non-Proposing Party” has the meaning set forth in Section 4.7(a). 

  
 10 

 1.102 “Orphan Indication” means an Indication that satisfies the FDA, EMA
or MHLW criteria for an orphan or rare disease, including the Initial Indication. 
 1.103 “Patents” means
(a) all patents, certificates of invention, applications for certificates of invention, priority patent filings, and patent applications, and (b) any renewals, divisions, continuations (in whole or in part), or requests for continued
examination of any of such patents, certificates of invention and patent applications, and any and all patents or certificates of invention issuing thereon, and any and all reissues, reexaminations, extensions, divisions, renewals, substitutions,
confirmations, registrations, revalidations, revisions, and additions of or to any of the foregoing. 
 1.104
“Phase 2 Clinical Trial” means a human clinical trial of the Product in any country to determine initial efficacy and dose range finding and that would satisfy the requirements of 21 CFR 312.21(b) or foreign
equivalent. 
 1.105 “Phase 3 Clinical Trial” means a pivotal human clinical trial of the Product
in any country with a defined dose or a set of defined doses of the Product designed to ascertain efficacy and safety of such Compound or Product for the purpose of submitting applications for Regulatory Approval to the competent Regulatory
Authorities and that would satisfy the requirements of 21 CFR 312.21(c) or foreign equivalent. 
 1.106 “Phase IV Clinical
Trial” means a clinical study of a pharmaceutical product on human subjects commenced after receipt of Regulatory Approval of such pharmaceutical product for the purpose of satisfying a condition imposed by a Regulatory Authority to obtain
Regulatory Approval, or to support the marketing of such pharmaceutical product, and not for the purpose of obtaining initial Regulatory Approval of a pharmaceutical product. 

1.107 “Pricing and Reimbursement Approval” means, with respect to the Product, the approval, agreement, determination,
or decision of the commercial payor or the applicable Governmental Authority responsible for approving and establishing the price or level of reimbursement for the Product, as required in a given country or jurisdiction prior to sale of the Product
in such jurisdiction. 
 1.108 “Product” means any pharmaceutical product for systemic administration that contains
a Compound as an API, alone or in combination with one (1) or more other APIs, in any dosage form or formulation. 
 1.109
“Product Technology” has the meaning set forth in Section 10.4(a). 
 1.110 “Proposing
Party” has the meaning set forth in Section 4.7(a). 
 1.111 “Recoverable Amount” has the meaning set
forth in Section 4.4(d). 
 1.112 “Regulatory Approval” means any and all approvals, licenses, registrations,
permits, notifications, and authorizations (or waivers) of any applicable Regulatory Authority, that are necessary for the manufacture, use, storage, import, transport, promotion, marketing, distribution, offer for sale, sale, or other
commercialization of the Product in a given country or regulatory jurisdiction. Regulatory Approval does not include any Pricing and Reimbursement Approval. 

1.113 “Regulatory Authority” means any applicable Governmental Authority responsible for granting Regulatory Approvals
for the Product, including the FDA, the EMA, and any corresponding national or regional regulatory authorities. 
 1.114
“Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights conferred by any Regulatory Authority with respect to a pharmaceutical product other than Patents, including orphan drug exclusivity, new
chemical entity exclusivity, data exclusivity, or pediatric exclusivity. 
 1.115 “Regulatory Filings” means
any regulatory application, submission, notification, communication (including meeting minutes), correspondence, registration, briefing documents, and other filings made to, 

  
 11 

 
received from, or otherwise conducted with a Regulatory Authority in order to Develop, manufacture, or Commercialize a Compound or Product in a particular country or jurisdiction, including any
IND, MAA, or Regulatory Approval. Regulatory Filings do not apply to any Pricing and Reimbursement Approval. 
 1.116
“Relevant Factors” means, to the extent applicable to the Compound or Product, actual and potential issues of safety, efficacy or stability; product profile (including product modality, category and mechanism of action); stage
of development or life cycle status; actual and projected development, Regulatory Approval, Pricing and Reimbursement Approval, manufacturing, and commercialization costs; any issues regarding the ability to manufacture or have manufactured the
Product; the likelihood of obtaining Regulatory Approvals and Pricing and Reimbursement Approvals; the timing of such approvals; the current guidance and requirements for Regulatory Approval and Pricing and Reimbursement Approval for the Product and
similar products and the current and projected regulatory status; labeling or anticipated labeling; the then-current competitive environment and the likely competitive environment at the time of projected entry into the market and thereafter;
present and future market potential; existing or projected pricing, sales, reimbursement and profitability; pricing or reimbursement changes in relevant countries; proprietary position, strength and duration of patent protection and anticipated
exclusivity; Commercialization by VIT after the expiration of the Royalty Term of both that Product that uses the ChemoCentryx Trademarks and the Product that does not use the ChemoCentryx Trademarks, and other relevant scientific, technical,
operational and commercial factors. 
 1.117 “Representatives” has the meaning set forth in Section 16.9. 

1.118 “Royalty Term” has the meaning set forth in Section 8.4(b). 

1.119 “Safety Data” means Data generated by or on behalf of VIT or its Affiliates or Sublicensees or by or on
behalf of ChemoCentryx or its Affiliates or ChemoCentryx Collaborators, related solely to any adverse drug experiences and serious adverse drug experience as such information is reportable to Regulatory Authorities in or outside the Territory.
Safety Data also includes “adverse events”, “adverse drug reactions” and “unexpected adverse drug reactions” as defined in the ICH Harmonised Tripartite Guideline for Clinical Safety Data Management: Definitions and
Standards for Expedited Reporting. 
 1.120 “Safety Data Agreement” has the meaning set forth in Section 5.3.

 1.121 “SEC” means the U.S. Securities and Exchange Commission, or any successor entity. 

1.122 “Sole Inventions” has the meaning set forth in Section 10.2. 

1.123 “Standstill Period” has the meaning set forth in Section 16.9. 

1.124 “Sublicensee” means a Third Party to whom VIT grants a sublicense under the ChemoCentryx Technology to Develop,
use, import, promote, offer for sale or sell any Compound or Product in the Field in the Territory (either independently from or in cooperation with VIT), beyond the mere right to purchase the Product from or to provide services on behalf of VIT and
its Affiliates. In no event shall ChemoCentryx or any of its Affiliates be deemed a Sublicensee. 
 1.125 “Supply
Agreement” has the meaning set forth in Section 7.2. 
 1.126 “Target Field” means the diagnosis,
treatment, prevention, and palliation of all cardio-renal diseases in humans, including the Initial Indication and, subject to Section 2.10, CKD, but excluding oncology indications and fibrotic diseases of
non-renal organ systems. 
 1.127 “Term” has the meaning set forth in
Section 14.1. 
 1.128 “Territory” means (a) the world, excluding the U.S. and China, (b) China, if
China is added to the Territory pursuant to Section 2.9, and (c) upon VIT’s obtaining Regulatory Approval of the Product in CKD in the U.S. after exercise of the CKD Option, the U.S. 

  
 12 

 1.129 “Third Party” means any entity other than ChemoCentryx or VIT or an
Affiliate of ChemoCentryx or VIT. 
 1.130 “Third Party License” means any Third Party agreement that is deemed to
be a Third Party License pursuant to Section 2.7. 
 1.131 “Third Party Technology” means any Patents or Know-How controlled by a Third Party that are necessary or reasonably useful to Develop, manufacture or Commercialize any Compound or Product in the Field. 

1.132 “Trademark” means any word, name, symbol, color, designation or device or any combination thereof, including any
trademark, trade dress, brand mark, service mark, trade name, brand name, logo or business symbol, whether or not registered. 
 1.133
“U.S.” means the United States of America, including its territories and possessions. 
 1.134
“Valid Claim” means (a) a claim of an issued and unexpired ChemoCentryx Patent (including any Joint Patent) that has not been revoked or held unenforceable or invalid by a Governmental Authority in a final and non-appealable judgment (or judgment from which no appeal was taken within the allowable time period), and that has not been abandoned, disclaimed, denied, or admitted to be invalid or unenforceable through reissue,
re-examination or disclaimer or otherwise; or (b) a claim in any pending ChemoCentryx Patent in the Territory that has not been abandoned or finally disallowed without the possibility of appeal or re-filing of the application; provided that such claim has not been pending more than seven (7) years from the priority date of such application (but if such pending claim with a pendency of seven
(7) years or longer subsequently issues it will be considered a Valid Claim upon issuance). 
 1.135 “VIT
Affiliate” means any Affiliate of VIT; provided that, in the event of a Change of Control of VIT, the term “VIT Affiliate” shall exclude any entity that becomes an Affiliate of VIT as a result of such Change of Control and
all Affiliates of such entity (other than VIT and its Affiliates in existence as of such Change of Control); provided, however, if such excluded Affiliate Develops or Commercializes or otherwise performs any activities or obtains any rights with
respect to the Product or Compound, such excluded Affiliate will be deemed a VIT Affiliate. For purposes of this Agreement, Fresenius Medical Care will be an Affiliate of VIT if it meets the definition of Affiliate by acquiring voting share capital
or other equity interest in VIT representing more than fifty percent (50%) of such interest. 
 1.136 “VIT Data” has
the meaning set forth in Section 10.1. 
 1.137 “VIT Indemnitee” has the meaning set forth in
Section 12.1. 
 1.138 “VIT Know-How” means all Know-How that VIT or any VIT Affiliate Controls as of the Effective Date or during the Term, including Joint Inventions, that is necessary for the research, Development, manufacture, use, importation, offer for sale
or sale of any Compound or Product in the Field. VIT Know-How includes the Licensed VIT Data. VIT Know-How does not include
(a) Know-How related to treatment algorithms or patient care programs, (b) Know-How to the extent exclusively related to any compound, which compound is
proprietary to VIT, any VIT Affiliates or their Third Party licensees/Sublicensees or related to the combination of a Compound with any such proprietary compound, and (c) Know-How resulting from
development or commercialization efforts that are not conducted under this Agreement, including, without limitation, Know-How not directly related to the Compound or the Product that has been developed by VIT,
any VIT Affiliates or any Third Party under independent research programs or agreements (e.g. generic drug delivery Know-How). 

1.139 “VIT Patents” means all Patents that VIT or any VIT Affiliate Controls as of the Effective Date or during the
Term, including Joint Patents, that would be infringed, absent a license or other right to practice 

  
 13 

 
granted under, or joint ownership rights in, such Patents, by the research, Development, manufacture, use, importation, offer for sale or sale of any Compound or Product (considering patent
applications to be issued with the then-pending claims). VIT Patents do not include any Patent (a) relating to treatment algorithms or patient care programs, (b) to the extent exclusively related to any compound that is proprietary to VIT,
any VIT Affiliates or their Third Party licensees/Sublicensees or related to the combination of a Compound with any such proprietary compound, and (c) resulting from development or commercialization efforts that are not conducted under this
Agreement and do not use the Compound or the Product or any ChemoCentryx Technology, including, without limitation, Patents not directly related to the Compound or the Product that have been developed by VIT, any VIT Affiliate or any Third Party
under independent research programs or agreements (e.g. generic drug delivery Patents) without use of the Compound or the Product or any ChemoCentryx Technology. 

1.140 “VIT Technology” means the VIT Know-How and the VIT Patents. 

1.141 “Wholesaler” means any Third Party whose role with respect to Product in the Territory is only to
(a) provide inventory management, logistics or shipping services on behalf of VIT, its Affiliates, Sublicensees or Distributors, or (b) resell products to customers without providing any consideration to VIT or its Affiliate or Sublicensee
on account of such sale. 
  

	2.	GRANT OF LICENSES 

 2.1 Licenses
Granted to VIT. Subject to the terms and conditions of this Agreement, ChemoCentryx hereby grants to VIT the following licenses, during the Term: 

(a) an exclusive (even as to ChemoCentryx, but subject to ChemoCentryx’s retained rights under Section 2.4 and subject to
Section 2.10 with regard to CKD), royalty bearing license, with the right to grant sublicenses as provided in Section 2.2, under the ChemoCentryx Technology to seek Regulatory Approval and Pricing and Reimbursement Approval for and
Commercialize the Product in the Field in the Territory, which license includes the rights (i) to incorporate Licensed ChemoCentryx Data in Regulatory Filings with Regulatory Authorities in the Territory and in filings for Pricing and
Reimbursement Approval in the Territory; and (ii) to cross-reference Regulatory Filings Controlled by ChemoCentryx or any ChemoCentryx Affiliate or, to the extent ChemoCentryx has obtained the right to cross-reference Regulatory Filings
Controlled by a ChemoCentryx Collaborator, such ChemoCentryx Collaborator outside the Territory, in each case (i) and (ii) solely for the purpose of obtaining Regulatory Approval and Pricing and Reimbursement Approval for the Product in the
Field in the Territory; 
 (b) a non-exclusive license, with the right to grant sublicenses
as provided in Section 2.2, under the ChemoCentryx Technology to manufacture and have manufactured the Product in and outside the Territory solely for use in exercising the licenses granted in Section 2.1(a) and (c) (subject to Article 7); and

 (c) an exclusive license in the Territory in the Field, and a non-exclusive license
outside the Territory in the Field (if applicable under any Development Plan), to conduct those Development activities allocated to VIT in the Development Plans. 

2.2 Sublicenses. VIT shall have the right to grant sublicenses, through multiple tiers, under the licenses granted in
Section 2.1 without ChemoCentryx’s consent to (i) any Affiliate of VIT, (ii) Fresenius Medical Care and its Affiliates solely to the extent operating as Distributors, and (iii) Third Parties listed in the Letter
Agreement. For the avoidance of doubt, if VIT desires to grant a sublicense to a Third Party not included in Sections 2.2(i), (ii) or (iii), it must obtain ChemoCentryx’s prior written consent, which consent will not be unreasonably withheld,
conditioned, or delayed. All sublicenses granted under the licenses granted in Section 2.1 shall be in writing and shall be subject to, and consistent with, the terms and conditions of this Agreement. If ChemoCentryx does not respond to a
notice under this Section 2.2 within twenty (20) Business Days, ChemoCentryx’s consent will be deemed to be granted. VIT shall use Commercially Reasonable Efforts to cause 

  
 14 

 
each agreement with a Sublicensee to include the right of VIT to grant to ChemoCentryx rights with respect to all Data, Inventions, and Regulatory Filings made or generated by such Sublicensee as
if such Data, Inventions, and Regulatory Filings were made or generated by VIT. VIT shall be responsible for the compliance of its Affiliates and Sublicensees with the terms and conditions of this Agreement. Upon ChemoCentryx’s request, for
sublicenses covering the Major Market Countries, VIT shall provide ChemoCentryx with a full and complete copy of each agreement under which VIT or its Affiliate or Sublicensee grants a sublicense to a Third Party (provided that VIT may redact any
confidential information contained therein that is not necessary to confirm compliance with this Agreement, including financial terms). 

2.3 Licenses Granted to ChemoCentryx. Subject to the terms and conditions of this Agreement, VIT hereby grants to ChemoCentryx
the following licenses during the Term: 
 (a) an exclusive, royalty-free, fully-paid license, with the right to grant sublicenses as
provided in Section 2.3(c), under the VIT Technology (including the Joint Technology) (i) to conduct those Development activities allocated to ChemoCentryx in the Development Plans and (ii) to Develop, seek Regulatory Approval and Pricing
and Reimbursement Approval for and Commercialize the Product in the Field outside the Territory, which license includes the rights (A) to incorporate Licensed VIT Data in Regulatory Filings with Regulatory Authorities and in filings for Pricing
and Reimbursement Approval outside the Territory and (B) to cross-reference Regulatory Filings Controlled by VIT or VIT Affiliates or, to the extent VIT has obtained the right to cross-reference Regulatory Filings Controlled by Sublicensees,
Sublicensees in the Territory, in each case solely for the purpose of obtaining Regulatory Approval and Pricing and Reimbursement Approval for the Product in the Field outside the Territory; and 

(b) a non-exclusive, royalty-free, fully-paid, worldwide license, with the right to grant
sublicenses as provided in Section 2.3(c), under the VIT Technology to make and have made the Product in and outside the Territory for sale outside the Territory or to VIT in the Territory. 

(c) ChemoCentryx shall have the right to grant sublicenses, through multiple tiers, under the licenses granted in Section 2.3
without VIT’s prior written consent. All sublicenses granted under the licenses granted in Section 2.3 shall be in writing and shall be subject to, and consistent with, the terms and conditions of this Agreement. ChemoCentryx shall use
Commercially Reasonable Efforts to cause each sublicense agreement to include the right of ChemoCentryx to grant to VIT rights with respect to all Data, Inventions, and Regulatory Filings made or generated by the sublicensee as if such Data,
Inventions, and Regulatory Filings were made or generated by ChemoCentryx. ChemoCentryx shall be responsible for the compliance of its Affiliates and sublicensees with the terms and conditions of this Agreement. Upon VIT’s request, ChemoCentryx
shall provide VIT with a full and complete copy of each sublicense agreement (provided that ChemoCentryx may redact any confidential information contained therein that is not necessary to confirm compliance with this Agreement, including financial
terms). 
 2.4 Reserved Rights. 

(a) ChemoCentryx’s Retained Rights. ChemoCentryx hereby expressly reserves (i) all rights to practice, and to grant licenses
under, the ChemoCentryx Technology outside of the scope of the licenses granted in Section 2.1, for any and all purposes, and (ii) the right to conduct all activities to be conducted by ChemoCentryx as contemplated by this Agreement.
Subject only to the rights expressly granted under Section 2.3, VIT hereby expressly reserves all rights to practice, and to grant licenses under, the VIT Technology for any and all purposes. 

(b) U.S. Government Rights. Because the inventions claimed in certain of the ChemoCentryx Patents were made in part under a grant from
the National Institutes of Health, the licenses granted to VIT in Section 2.1 are subject to 35 U.S.C. §§ 201-212 and regulations promulgated thereunder, including: (i) the reservation to
the U.S. government of a nonexclusive, nontransferrable, irrevocable, paid-up license to practice or have practiced 

  
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for or on behalf of the United States any such invention throughout the world and (ii) the requirement that any products embodying any such invention or produced through any such
invention’s use be manufactured in the U.S., unless a waiver is obtained under 35 U.S.C. § 204. 
 2.5 No Implied Licenses;
Negative Covenant. Except as set forth in this Agreement, neither Party shall acquire any license or other intellectual property interest, by implication or otherwise, under or to any Patents, Know-How, or
other intellectual property owned or controlled by the other Party. Neither Party shall, nor shall it permit any of its Affiliates or sublicensees to, practice any Patents or Know-How licensed to it by the
other Party outside the scope of the licenses granted to it under this Agreement. 
 2.6 Disclosure of Know-How. ChemoCentryx shall, and shall cause its Affiliates to, without additional compensation, disclose and make available to VIT, in whatever form VIT may reasonably request (including by providing
copies thereof), all ChemoCentryx Know-How that (a) is in existence as of the Effective Date, within thirty (30) days after the Effective Date and (b) comes into existence after the Effective
Date and that was not previously provided to VIT, promptly after the earlier of the development, making, conception, or reduction to practice of such ChemoCentryx Know-How (and at least every six
(6) months). VIT shall and shall cause its Affiliates to, without additional compensation, disclose and make available to VIT, in whatever form ChemoCentryx may reasonably request (including by providing copies thereof), all VIT Know-How that (i) is in existence as of the Effective Date, within thirty (30) days after the Effective Date and (ii) comes into existence after the Effective Date and that was not previously provided
to ChemoCentryx, promptly after the earlier of the development, making, conception, or reduction to practice of such VIT Know-How (and at least every six (6) months). 

2.7 Third Party Licenses. 

(a) Each Party shall promptly notify the other Party if it becomes aware of any Third Party Technology. 

(b) ChemoCentryx shall have the first right to negotiate and obtain a license to any Third Party Technology applicable to both the
Territory and any countries outside the Territory, and shall use Commercially Reasonable Efforts to obtain the right to sublicense such Third Party Technology to VIT in the Territory on terms that are fair and equitable for both ChemoCentryx and
VIT. If ChemoCentryx obtains a license to Third Party Technology, ChemoCentryx will promptly disclose to VIT a complete copy of applicable license agreement. The agreement will be deemed a Third Party License and the Third Party Technology will be
deemed ChemoCentryx Technology and will be sublicensed to VIT pursuant to the licenses granted under Section 2.1 if (i) VIT provides ChemoCentryx with written notice in which VIT agrees to be responsible for all payments that would be owed
under such license agreement as a result of ChemoCentryx’s granting a sublicense to VIT or the exercise of such sublicense granted to VIT (including by any of its Affiliates or Sublicensees) and a reasonable allocation of any other payments
under such license agreement and to make all payments when due and provide all reports required under such license agreement, and (ii) VIT acknowledges in writing that its sublicense under such license agreement is subject to the terms and
conditions of such license agreement. Any amounts paid by VIT to ChemoCentryx as described in this Section 2.7(b) will, to the extent applicable, be creditable against royalty payments to ChemoCentryx as and to the extent provided in Section 8.4(e).

 (c) If ChemoCentryx elects not to obtain a license to Third Party Technology as contemplated by Section 2.7(b), or is
unsuccessful in obtaining such a license within one hundred eighty (180) days after the Parties mutually agree to seek such license, which agreement will not be unreasonably withheld or delayed, then VIT shall have the right (but not the
obligation) to negotiate and obtain such a license from such Third Party for the Territory. If VIT obtains a license to Third Party Technology, such license agreement shall be deemed a Third Party License, the amounts paid by VIT thereunder will, to
the extent applicable, be creditable against royalty payments to ChemoCentryx as and to the extent provided in Section 8.4(e), and VIT will use Commercially Reasonable Efforts to obtain the right to sublicense to ChemoCentryx in the event of any
termination of this Agreement, other than termination by VIT under Section 14.3(a). 

  
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 (d) VIT shall have the first right to negotiate and obtain a license under any Third Party
Technology that exists solely in the Territory at its sole discretion and expense. If VIT elects to negotiate such a license, such license agreement shall be deemed a Third Party License, and the amounts paid by VIT thereunder will, to the extent
applicable, be creditable against royalty payments to ChemoCentryx as and to the extent provided in Section 8.4(e). In addition, VIT will use Commercially Reasonable Efforts to obtain the right to sublicense to ChemoCentryx in the event of any
termination of this Agreement, other than termination by VIT under Section 14.3(a). 
 2.8 Exclusivity. 

(a) Product. None of ChemoCentryx, any ChemoCentryx Affiliate, VIT, or any VIT Affiliate shall, directly or indirectly, Develop
or Commercialize the Product outside the Target Field either in or outside the Territory; provided, however, that the Parties (or any ChemoCentryx Affiliate or VIT Affiliate) may, directly or indirectly, Develop and Commercialize the
Product in Indications outside the Target Field by mutual written agreement, with any such Development of the Product outside the Target Field to be conducted under a Development Plan. Development of the Product in Additional Indications is subject
to Section 4.7. 
 (b) Next Generation Compounds. During the Term, ChemoCentryx shall not, and shall ensure that
ChemoCentryx Affiliates do not, and VIT shall not, and shall ensure that VIT Affiliates and Sublicensees do not, directly or indirectly, clinically develop (in a Phase 2 Clinical Trial or any later-stage clinical trial) or commercialize any
Next Generation Compound for any Indication in the Target Field, or, unless the Parties otherwise agree in writing, for any Additional Indication outside the Target Field for which the Parties agree to Develop the Product under Section 2.8(a), in
the Territory; provided that the foregoing covenant will apply to a Sublicensee only with respect to the countries in the Territory in which such Sublicensee has sublicense rights. For clarity, the foregoing would not restrict physicians from
prescribing Next Generation Compounds that are commercialized by Third Parties. 
 (c) Acquired Rights of VIT. In the event that VIT
or any VIT Affiliate, either through its own efforts or by acquisition of such rights (whether through merger, acquisition or similar transaction), obtains the rights to a Next Generation Compound that would cause VIT to breach Section 2.8(b),
then VIT shall elect one of the following upon written notice to ChemoCentryx within thirty (30) days after such rights are first obtained: 

(i) to terminate this Agreement pursuant to Section 14.5, in which case such notice will serve as notice of termination under
Section 14.5; or 
 (ii) to Divest such Next Generation Compound, in which case VIT or any VIT Affiliate shall, or shall cause
the applicable entity to, complete the Divestiture of such Next Generation Compound within twelve (12) months from the date VIT or the applicable VIT Affiliate obtained any rights in such Next Generation Compound, in which case the conduct of
activities with respect to such Next Generation Compound by VIT or any VIT Affiliate during such twelve (12) month period shall not be deemed a breach of VIT’s exclusivity obligations under Section 2.8(b), provided that such
activities with respect to such Next Generation Compound during such twelve (12) month period are conducted independently of the activities conducted under this Agreement and no ChemoCentryx Technology or VIT Technology is used in the conduct
of such activities; or 
 (iii) solely if the acquisition of such rights results from a Change of Control of VIT, for such new
Affiliate to continue the development or commercialization of the Next Generation Compound, in which case such continuation shall not constitute a breach of VIT’s exclusivity obligations in Section 2.8(b), provided that such new Affiliate
conducts such activities with respect to such Next Generation Compound independently of the activities under this Agreement and does not use any ChemoCentryx Technology or VIT Technology in the conduct of such activities. 

(d) Acquired Rights of ChemoCentryx. In the event that ChemoCentryx or any ChemoCentryx Affiliate, either through its own efforts or by
acquisition of such rights (whether through merger, acquisition or 

  
 17 

 
similar transaction), obtains the rights to a Next Generation Compound that would cause ChemoCentryx to breach Section 2.8(b), then ChemoCentryx shall elect one of the following upon written
notice to VIT within thirty (30) days after such rights are first obtained: 
 (i) to Divest such Next Generation Compound, in
which case ChemoCentryx or any ChemoCentryx Affiliate shall, or shall cause the applicable entity to, complete the Divestiture of such Next Generation Compound within twelve (12) months from the date ChemoCentryx or the applicable ChemoCentryx
Affiliate obtained any rights in such Next Generation Compound, in which case the conduct of activities with respect to such Next Generation Compound by ChemoCentryx or any ChemoCentryx Affiliate during such twelve (12) month period shall not
be deemed a breach of ChemoCentryx’s exclusivity obligations under Section 2.8(b), provided that such activities with respect to such Next Generation Compound during such twelve (12) month period are conducted independently of the
activities conducted under this Agreement and no ChemoCentryx Technology or VIT Technology is used in the conduct of such activities; or 

(ii) solely if the acquisition of such rights results from a Change of Control of ChemoCentryx, for such new Affiliate to continue the
development or commercialization of the Next Generation Compound, in which case such continuation shall not constitute a breach of ChemoCentryx’s exclusivity obligations in Section 2.8(b), provided that such new Affiliate conducts such
activities with respect to such Next Generation Compound independently of the activities under this Agreement and does not use any ChemoCentryx Technology or VIT Technology in the conduct of such activities. 

2.9 China. ChemoCentryx shall notify VIT within thirty (30) days after entering into a written agreement with a
Third Party for development of the Product for Regulatory Approval in China (a “China Agreement”). If ChemoCentryx has not entered into a China Agreement by the date that is [***] after the Effective Date, then VIT may elect to
expand the Territory to include China by (a) delivering written notice of such expansion to ChemoCentryx and (b) paying ChemoCentryx a one-time,
non-refundable, non-creditable payment of [***], in each case (a) and (b) within thirty (30) days after the date that is [***] after the Effective Date. Upon
ChemoCentryx’s receipt of such notice and payment during such thirty (30)-day period, the Territory will automatically be expanded to include China. If ChemoCentryx does not receive such notice and
payment during such thirty (30)-day period, the Territory shall continue to exclude China. 

2.10 CKD Option. 
 (a)
Option Grant and Exercise. Subject to the terms and conditions of this Agreement, ChemoCentryx hereby grants to VIT an exclusive option (1) to Develop the Product for CKD for Regulatory Approval in the Territory and in the U.S., (2) to
Commercialize the Product in CKD in the Territory, excluding the U.S., and (3) upon Regulatory Approval for the Product in CKD in the U.S., to Commercialize the Product in the Field (including in CKD) in the U.S. (the “CKD
Option”). VIT may exercise the CKD Option by (i) providing written notice to ChemoCentryx at any time during the Term after January 1, 2022 (the “CKD Option Period”) and (ii) paying
ChemoCentryx a one-time, non-refundable, non-creditable CKD Option exercise payment of [***]. Effective upon VIT’s exercise
of the CKD Option during the CKD Option Period, VIT will automatically have the right (A) to Develop the Product for CKD in accordance with the Development Plan for CKD approved by the JSC, (B) to seek Regulatory Approval for the Product
in CKD in the U.S. and in the Territory pursuant to the licenses granted in Section 2.1, and (C) subject to Section 2.10(b), to Commercialize the Product in CKD in the Territory (excluding the U.S.) and, upon Regulatory Approval for
the Product in CKD in the U.S., to Commercialize the Product in the Field (including for CKD) in the U.S., in each case (A)-(C) at its sole expense; provided that VIT shall not [***] in the Territory and the U.S. [***], unless otherwise agreed in
writing by the Parties. VIT may conduct such activities itself or through an Affiliate or Third Party on behalf of VIT, or through ChemoCentryx on behalf of VIT. For clarity, the CKD Option is not intended to, does not, and shall not be construed to
limit or interfere with ChemoCentryx’s right to engage in a Change of Control; provided that ChemoCentryx remains subject to the CKD Option notwithstanding any Change of Control. 

 

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 (b) Commercialization in CKD. If VIT exercises the CKD Option and obtains
Regulatory Approval for the Product in the U.S., the Parties will reasonably cooperate to transition Commercialization of the Product in the U.S. from ChemoCentryx to VIT, subject to ChemoCentryx’s right to
Co-Promote the Product in the U.S. as described below. In such event, ChemoCentryx shall have the right to Co-Promote the Product in the U.S. pursuant to a co-promotion agreement consistent with the terms of this Section 2.10 and other customary provisions (the “Co-Promotion Agreement”). Promptly after
VIT’s exercise of the CKD Option, the Parties will negotiate in good faith the terms of and enter into the Co-Promotion Agreement, which will provide for (i) ChemoCentryx to provide co-promotional services (A) making use of ChemoCentryx’s full commercial capability using its existing nephrology field force and (B) targeting the nephrology prescribers in the U.S. already targeted
by ChemoCentryx at the time of VIT’s exercise of the CKD Option (as appropriately demonstrated, e.g. in ChemoCentryx’s customer relationship management (CRM) system), (ii) reasonable compensation from VIT to ChemoCentryx for
ChemoCentryx’s detailing efforts consistent with arm’s length terms at the time, and (iii) other mutually agreed terms. 
  

	3.	GOVERNANCE 

 3.1 Joint Steering Committee. Promptly
after the Effective Date, the Parties shall establish a joint steering committee (the “Joint Steering Committee” or the “JSC”), composed of an equal number of representatives of each Party (up to four (4)), to
oversee and coordinate the activities of the Parties under this Agreement. The JSC shall in particular: 
 (a) provide a forum for the
discussion of the Development, Commercialization, manufacturing and supply of the Product in the Field in and outside the Territory; 

(b) discuss and determine the strategy for the Development of the Product for the Major Market Countries and the U.S. and review and
approve all (i) Development Plans other than the Development Plan for the Initial Indication that has been agreed as of the Effective Date and (ii) amendments to any Development Plan (including budgets therein) including any Additional
Study; 
 (c) review, discuss and approve any changes to the Initial Indication and any proposed Additional Indications; 

(d) review and coordinate the strategy for Regulatory Filings for the Product in the Major Market Countries and the U.S.; 

(e) discuss the strategy for the Commercialization of the Product in the Major Market Countries, and review and discuss the initial
Commercialization Plan for the Major Market Counties and each amendment thereto; 
 (f) facilitate the exchange of Licensed
ChemoCentryx Data and Licensed VIT Data between the Parties; 
 (g) direct and oversee the operation of the JCC and any other joint
subcommittee established by the JSC, including attempting to resolve any disputed matter of such Committees; 
 (h) establish
additional joint subcommittees as it deems necessary or advisable to further the purpose of this Agreement; 
 (i) discuss the global
branding strategy for the Product; and 
 (j) perform such other functions as appropriate to further the purposes of this Agreement,
as expressly set forth in this Agreement or allocated to it by the Parties’ written agreement. 

  
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 For clarity, the JSC will not have any decision-making authority with respect to the
Commercialization of the Product in the Territory. 
 3.2 Joint Commercialization Committee. At a time to be determined by the
JSC, the Parties shall establish a joint commercialization committee (the “Joint Commercialization Committee” or the “JCC”), composed of an equal number of up to four (4) representatives of each Party, to
oversee the Commercialization of the Product in the Field in and outside the Territory. The JCC shall in particular: 
 (a) report to
the JSC on all significant Commercialization activities by VIT in the Major Market Countries and by ChemoCentryx in the U.S., including on the implementation of the Commercialization Plan of VIT for the Major Market Countries, and on activities of
the JCC; 
 (b) review and discuss the initial Commercialization Plan of VIT for the Major Market Countries and all proposed
amendments to such Commercialization Plan, for submission to the JSC; 
 (c) provide a forum for and facilitate communications and
coordination between the Parties with respect to the Commercialization of the Product in the Field in and outside the Territory; 
 (d)
discuss any VIT decision not to launch (or to significantly delay the launch of) the Product in a particular country in the Territory based on Pricing and Reimbursement Approval; 

(e) discuss the global branding strategy for the Product; 

(f) provided VIT has exercised the CKD Option in accordance with Section 2.10(a) and the Parties have entered into a Co-Promotion Agreement in accordance with Section 2.10(b), coordinate the Parties’ Co-Promotion of the Product in the U.S. after Regulatory Approval of the Product in CKD
in the U.S.; and 
 (g) perform such other functions as may be appropriate to further the purposes of this Agreement with respect to
the Commercialization of the Product in the Field in and outside the Territory, as directed by the JSC. 
 For clarity, the JCC will not
have any decision-making authority with respect to the Commercialization of the Product in the Territory. 
 3.3 Committee Membership and
Meetings. 
 (a) Committee Members. Each Committee representative shall have appropriate knowledge and expertise
and sufficient seniority within the applicable Party to make decisions arising within the scope of the applicable Committee’s responsibilities. Each Party may replace its representatives on any Committee on written notice to the other Party,
but each Party shall strive to maintain continuity in the representation of its Committee members. Each Party shall appoint one (1) of its representatives on each Committee to act as a co-chairperson of
such Committee. The co-chairpersons shall jointly prepare and circulate agendas to Committee members at least seven (7) days prior to each Committee meeting and shall direct the preparation of reasonably
detailed minutes for each Committee meeting, which shall be approved by the co-chairpersons and circulated to Committee members within thirty (30) days of such meeting. 

(b) Meetings. Each Committee shall hold meetings at such times as it elects to do so, but in no event shall such meetings be held less
frequently than once every three (3) months or such other frequency as may be mutually agreed by the Parties. Meetings of any Committee may be held in person or by audio or video teleconference; provided that unless otherwise agreed by both
Parties, at least one (1) meeting per year for each Committee shall be held in person, and all in-person Committees shall be held at locations alternately selected by the Parties. Each Party shall be
responsible for all of its own expenses of participating in any Committee meetings. No action taken at any meeting of a Committee shall be effective unless at least one (1) representative of each Party is participating. 

(c) Non-Member Attendance. Each Party may from time to time invite a reasonable number
of participants, in addition to its representatives, to attend the Committee meetings in a non-voting capacity; 

  
 20 

 
provided that if either Party intends to have any Third Party (including any consultant) attend such a meeting, such Party shall provide at least seven (7) days prior written notice to the
other Party and obtain the other Party’s approval for such Third Party to attend such meeting, which approval shall not be unreasonably withheld, delayed, or conditioned. Such Party shall ensure that such Third Party is bound by confidentiality
and non-use obligations consistent with the terms of this Agreement. 
 3.4
Decision-Making. 
 (a) All decisions of each Committee shall be made by unanimous vote, with each Party’s
representatives collectively having one (1) vote. Any Additional Indication may only be included in a Development Plan as provided in Section 4.7. If after reasonable discussion and good faith consideration of each Party’s view on a
particular matter before the JCC or another subcommittee of the JSC, the representatives of the Parties cannot reach an agreement as to such matter within five (5) Business Days after such matter was brought to such Committee for resolution,
such disagreement shall be referred to the JSC for resolution. 
 (b) If after reasonable discussion and good faith consideration of
each Party’s view on a particular matter before the JSC, the representatives of the Parties cannot reach an agreement as to such matter within five (5) Business Days after such matter was brought to the JSC for resolution or after such
matter has been referred to the JSC, such disagreement shall be referred to the Chief Executive Officer of ChemoCentryx and the Chief Executive Officer of VIT (collectively, the “Executive Officers”) for resolution. 

(c) If the Executive Officers cannot resolve such matter within thirty (30) days after such matter has been referred to them,
then: 
 (i) if such matter relates to the Development of the Product in an Indication (other than CKD from and after the time that
the CKD Option has been exercised), including the content of any Development Plan and whether to develop the Product for a particular Indication in the Field (other than CKD from and after the time that the CKD Option has been exercised), then
ChemoCentryx shall be entitled to make the final decision, provided that ChemoCentryx shall not amend any Development Plan in a manner that (A) would result in the clinical Development strategy therein being insufficient to satisfy requirements
for Regulatory Approval by the EMA in the Initial Indication and any Additional Indication included therein or (B) fails to comply with the scientific advice provided by the EMA for Regulatory Approval of the Product in an Indication included
in such Development Plan, to the extent such advice can be technically implemented. If VIT reasonably believes that any amendment to a Development Plan would materially adversely affect the safety and efficacy profile of the Product in the
Territory, or that any Additional Indication proposed by ChemoCentryx would satisfy the Additional Indication Rejection Condition, the Parties shall appoint a mutually agreed independent Third Party scientific expert to evaluate and advise the
Parties on the effect of such amendment on the safety and efficacy profile of the Product in the Territory or whether such Additional Indication satisfies the Additional Indication Rejection Condition, which advice ChemoCentryx shall consider in
good faith in exercising its final decision-making authority; provided that if such issue [***], the Parties shall resolve the dispute as set forth in Section 15.4; and 

(ii) if such matter relates to the Development of the Product in CKD from and after the time that the CKD Option has been exercised,
including the content of the Development Plan for CKD, then VIT shall be entitled to make the final decision, provided that VIT shall not amend the Development Plan for CKD in a manner that (A) would require ChemoCentryx to incur any expenses
that are not fully reimbursed by VIT or (B) ChemoCentryx reasonably believes would materially adversely affect the safety and efficacy profile of the Product, in each case (A) and (B) without ChemoCentryx’s prior written consent. 

(d) Limitations on Authority. Each Committee shall have only such powers as are expressly assigned to it in this Agreement, and
such powers shall be subject to the terms and conditions of this Agreement. Without 
  

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 21 

 
limiting the generality of the foregoing, no Committee will have the power to amend this Agreement, and no decision of a Committee may be in contravention of any terms and conditions of this
Agreement. 
 3.5 Alliance Managers. Promptly after the Effective Date, each Party shall appoint an individual to act as the
alliance manager for such Party (the “Alliance Manager”). Each Alliance Manager shall be responsible for alliance management between the Parties on a
day-to-day basis throughout the Term. Each Alliance Manager shall be permitted to attend meetings of the JSC and other Committees as appropriate as non-voting participants. The Alliance Managers shall be the primary contact for the Parties regarding the activities contemplated by this Agreement and shall facilitate all such activities hereunder. Each Party may
replace its Alliance Manager with an alternative representative at any time with prior written notice to the other Party. Any Alliance Manager may designate a substitute to temporarily perform the functions of that Alliance Manager. Each Alliance
Manager shall be charged with creating and maintaining a collaborative work environment within the JSC and its subcommittees. 
 3.6
Discontinuation of Participation on a Committee. ChemoCentryx’s membership in the Committees shall be at its sole discretion, as a matter of right and not obligation, for the sole purpose of participation in governance,
decision-making, and information exchange with respect to activities within the jurisdiction of the Committees. ChemoCentryx shall have the right to withdraw, at any time, from membership on any or all of the Committees upon thirty
(30) days’ prior written notice to VIT, which notice shall be effective upon the expiration of such thirty (30) day period. Following the issuance of such notice: (a) ChemoCentryx’s membership in the applicable Committee(s)
shall be terminated and (b) each Party shall have the obligation to provide and the right to continue to receive the information it would otherwise be required to provide and entitled to receive under the Agreement and to participate directly
with the other Party in discussions, reviews and approvals currently allocated to the relevant Committee(s) pursuant to Article 3. If, at any time, following issuance of such a notice, ChemoCentryx wishes to resume participation in the relevant
Committee, ChemoCentryx shall notify VIT in writing and, thereafter, ChemoCentryx’s representatives to the relevant Committee shall be entitled to attend any subsequent meeting of such Committee and to participate in the activities of, and
decision-making by, such Committee as provided in this Article 3 as if such notice had not been issued by ChemoCentryx pursuant to this Section 3.6. If a Committee is disbanded, then any data and information of the nature intended to be shared
within such Committee shall be provided by each Party directly to the other Party. 
  

	4.	DEVELOPMENT 

 4.1 General. Subject to the terms and
conditions of this Agreement, the Parties shall Develop the Compound and the Product in the Territory and in the U.S. in the Initial Indication, in each Additional Indication that is included in a Development Plan and, if VIT exercises the CKD
Option, in CKD as provided in a Development Plan for CKD; provided that ChemoCentryx will be responsible for conducting all Development of the Product for the Initial Indication (excluding Additional Studies in the VIT Territory). All Development
work conducted pursuant to this Agreement will be subject to the JSC’s oversight and will be in accordance with the applicable Development Plan. VIT will reasonably contribute its in-house clinical
development expertise and nephrology expertise at its sole expense. 
 4.2 Global Development Program. The Parties intend to
Develop the Product for the Initial Indication and each Additional Indication that is included in a Development Plan, and, if VIT exercises the CKD Option, in CKD, for the purpose of obtaining Regulatory Approval for the Product in each such
Indication in the EU, in the Territory outside the EU and in the U.S. Accordingly, the Parties shall consult with the EMA and FDA with respect to the Development strategy for the Product, including requesting scientific advice from the EMA, and will
take into account all scientific advice from the EMA, to the extent such advice can be technically implemented, and other reasonable requirements, recommendations and guidance from such Regulatory Authorities in preparing the Development Plans.
Furthermore, to the extent not materially affecting the costs or timeline of Development pursuant to the first sentence of this Section 4.2, the Parties may consult with other 

  
 22 

 
relevant Regulatory Authorities in the Territory with respect to the Development strategy for the Product and shall use Commercially Reasonable Efforts to address any requirements,
recommendations and guidance from such Regulatory Authorities in the Development Plans. 
 4.3 Development Plans. 

(a) Content. All Development of the Compound and the Product under this Agreement for a specific Indication shall be conducted
pursuant to a comprehensive written development plan and budget (as amended in accordance with this Agreement, the “Development Plan” for such Indication). The Development Plan for the Initial Indication shall set forth the timeline
and details of all preclinical and clinical Development activities to be conducted by or on behalf of ChemoCentryx or its Affiliates to obtain Regulatory Approval of the Product in the Initial Indication in the U.S., the EU, Major Market Countries
outside the EU, and other countries in the Territory, which Development activities may include toxicology, reproductive and carcinogenicity studies, pivotal clinical trials, ancillary phase 1 clinical trials, and
CMC-related activities, but will exclude any Additional Study, in each case as determined by the JSC. Each Development Plan shall include a coordinated Development and regulatory strategy and will set forth
the Parties’ respective roles with respect to Regulatory Filings. A Development Plan may also include any other Development activities approved by the JSC, such as Additional Studies conducted pursuant to Section 4.6. The initial version
of the Development Plan for the Initial Indication, which has been agreed to by the Parties, is attached to the Letter Agreement. The Parties shall prepare any proposed Development Plan for any Additional Indication or, if VIT exercises the CKD
Option, for CKD, as applicable, and submit it to the JSC for review, discussion, and approval. 
 (b) Updates. The Parties shall
prepare updates and amendments, as appropriate, to the Development Plan for an Indication after an end-of-phase 2 meeting with the FDA, scientific advice meeting with
the EMA, and each comparable meeting in other Major Market Countries (to the extent necessary) for such Indication. The Parties shall thereafter prepare updates and amendments, as appropriate, to each Development Plan on annual basis, or more
frequently as the Parties agree. The Parties shall submit all such updates and amendments to the JSC for review, discussion, and approval. Once approved by the JSC, each such updated or amended Development Plan, as the case may be, shall replace the
prior Development Plan. 
 (c) Conflict. If the terms of any Development Plan contradict, or create inconsistencies or ambiguities
with, the terms of this Agreement, then the terms of this Agreement shall govern. 
 4.4 Development Funding for the Initial
Indication. 
 (a) Development Funding Milestones. Subject to the remainder of this Section 4.4, the Parties shall share
equally all costs and expenses ChemoCentryx incurs to conduct Development activities for the Initial Indication pursuant to the applicable Development Plan. ChemoCentryx shall initially incur such costs and expenses, and VIT shall pay its share of
such costs and expenses by paying to ChemoCentryx the following milestone payments (each, as may be adjusted as described below, a “Development Funding Payment”) within thirty (30) days after the achievement of each milestone
event described below: 
  

			
	 Development Funding Milestone
	  	 Development Funding

Payment

	 Finalization of [***]
	  	[***] of VIT’s 50% share of the Initial Indication Fully-Burdened Budget
	 Later of (1) [***] and (2) January 1, 2018
	  	[***] of VIT’s 50% share of the Initial Indication Fully-Burdened Budget
	 Later of (1) [***] and (2) January 1, 2019
	  	[] of VIT’s 50% share of the Initial Indication Fully-Burdened Budget

  

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 “Initial Indication Fully-Burdened Budget” means [***] of the total budget (which will include
Third Party costs only) set forth in the Development Plan for the Initial Indication. For clarity, VIT will be responsible for [***] of its fifty percent (50%) share of the total budget. For example, if the total budget is [***], the Initial
Indication Fully-Burdened Budget will equal [***], and VIT will be responsible for [***] thereof through Development Funding Payments. The Parties acknowledge and agree that the premium on Third Party costs included in the Initial Indication
Fully-Burdened Budget accounts for ChemoCentryx’s internal costs incurred to conduct Development activities for the Initial Indication. 

(b) Budget Adjustments. ChemoCentryx shall notify the JSC if it anticipates that the Third Party costs of conducting activities
in the Development Plan for the Initial Indication will exceed the budgeted amount therefor in such Development Plan for a given Calendar Quarter, or if the Third Party costs of conducting such activities exceeded the budgeted amount for a given
Calendar Quarter, and shall provide reasonable documentation supporting the Third Party costs for such activity. If the amount of Third Party costs in excess of the budgeted amount (the “Excess”) would cause an increase in the total
budget by no more than [***] of the total budget, then the budget will automatically be increased by the amount of the Excess, and the Initial Indication Fully-Burdened Budget will be increased accordingly, effective upon the notice of such Excess
from ChemoCentryx. If the Excess would cause an increase in the total budget by more than [***] of the total budget, then the JSC shall promptly meet to determine whether to amend the budget in the Development Plan to account for such increase;
provided that the JSC shall amend the budget if the Excess results from causes outside of ChemoCentryx’s reasonable control, such as recommendations or requirements of Regulatory Authorities or delays in enrollment, or from any amendment to the
activities set forth in the Development Plan for the Initial Indication. 
 (c) True-Up
Payments. If the budget in the Development Plan for the Initial Indication is increased pursuant to Section 4.4(b), then the subsequent Development Funding Payment will be increased by an amount equal to the difference between any previously
paid Development Funding Payment(s) and the amount that such previously paid Development Funding Payment(s) would have been based on the increased budget; provided that if all Development Funding Payments have already been paid, then VIT shall pay
such amount to ChemoCentryx within sixty (60) days after the effective date of the budget increase. ChemoCentryx shall provide VIT with a statement setting forth all Third Party costs incurred or accrued for activities under the Development
Plan for the Initial Indication within ninety (90) days after completion of all such activities. If the total of such Third Party costs is less than the then-current budget in the Development Plan and VIT has made all Development Funding
Payments due and payable based upon such then-current budget, then VIT may credit against subsequent payment(s) to be made to ChemoCentryx by VIT under this Agreement the amount by which the total of the Development Funding Payments actually paid to
ChemoCentryx is greater than the total of the Development Funding Payments that VIT would have paid to ChemoCentryx based on the actual Third Party costs for activities under the Development Plan for the Initial Indication. 

(d) Budget Cap. Notwithstanding Section 4.4(a), but subject to Section 4.4(d), ChemoCentryx shall not be obligated to pay a
total amount for Third Party expenses and internal expenses under the Development Plan for the Initial Indication as measured by the Initial Indication Fully-Burdened Budget in excess of [***] (the “Budget Cap”). Accordingly, if the
budget in the Development Plan for the Initial Indication, as adjusted pursuant to Section 4.4(b), is increased such that the Initial Indication Fully-Burdened Budget exceeds the Budget Cap, then ChemoCentryx shall elect one of the following by
written notice to VIT, such election to be at ChemoCentryx’s sole discretion, but subject to Section 4.4(d): (i) to continue bearing its [***] share of the Initial Indication Fully-Burdened Budget or (ii) to have VIT reimburse
ChemoCentryx, in addition to paying the Development Funding Payments and true-up payments under Section 4.4(c), for [***] (i.e., ChemoCentryx’s share) of the amount by which the Initial Indication
Fully-Burdened Budget exceeds the Budget Cap (the “Advanced Amount”). From and after the date on which ChemoCentryx first incurs any Advanced Amount, if 

 

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ChemoCentryx elects for VIT to pay the Advanced Amount, ChemoCentryx shall provide VIT, on a Calendar Quarterly basis, an invoice for the portion of the Advanced Amount incurred in the preceding
Calendar Quarter, and VIT shall pay each such invoice within thirty (30) days after receipt thereof. VIT may credit [***] of the Advanced Amount actually paid by VIT to ChemoCentryx (the “Recoverable Amount”) against royalty
payments made to ChemoCentryx under Section 8.4 until such time as VIT has fully recovered the Recoverable Amount from such royalty payments, provided that in no event shall the royalty payment to ChemoCentryx for the Product in any country for
any Calendar Quarter be reduced by more than [***] of the amount otherwise owed to ChemoCentryx as a result of the credit in this Section 4.4 and any credit in Section 8.4(e). For example, if the Initial Indication Fully-Burdened Budget is
initially [***], and is subsequently increased to [***], then starting from the date that ChemoCentryx incurs an aggregate of Third Party expenses under the Development Plan that corresponds to an Initial Indication Fully-Burdened Budget of [***],
ChemoCentryx may elect to invoice VIT for the Advanced Amount as provided above, which will equal in the aggregate [***], and which will be paid by VIT in addition to the Development Funding Payments and
true-up payments under Sections 4.4(a) and 4.4(c). The Advanced Amount of [***] corresponds to a Recoverable Amount of [***], which VIT may recover from royalties payable to ChemoCentryx. If, following First
Commercial Sale of the Product in the Territory, the first three (3) royalty payments due are [***], [***] and [***] (for the first three Calendar Quarters of Net Sales), then VIT may offset [***] of the Recoverable Amount against the first
royalty payment, [***] of the Recoverable Amount against the second royalty payment, and [***] of the Recoverable Amount against the third royalty payment, resulting in royalty payments of [***], [***] and [***] and full recovery of the Recoverable
Amount. If the Parties agree to discontinue all Development of the Compound and Product in all Indications prior to VIT’s recovery of the Recoverable Amount as provided above, then [***], as follows: starting with the Calendar Quarter that
commences after the third (3rd) anniversary of the [***], VIT may [***] from the amount actually payable [***] to an amount equal to [***] of annual Net Sales [***], until such time as VIT has
fully recovered the Recoverable Amount from the [***], and thereafter the [***]. For clarity, the foregoing [***] will not apply in the event of a termination of this Agreement by VIT pursuant to Section 14.5. 

(e) Restrictions on ChemoCentryx’s Election of VIT Advances. Notwithstanding Section 4.4(d), ChemoCentryx shall not have the right
to elect under Section 4.3(d)(ii) to have VIT reimburse ChemoCentryx for any Advanced Amount to the extent that such Advanced Amount results from ChemoCentryx’s exercise of its final decision making authority under Section 3.4(c)(ii) to amend
the Development Plan, over the objection of VIT’s JSC members as set forth in the JSC minutes and the objection of VIT’s Executive Officer under Section 3.4(b), if the Excess results from causes within ChemoCentryx’s reasonable
control (which for clarity excludes implementation of recommendations or requirements of Regulatory Authorities or delays in enrollment). 

4.5 Development Funding for CKD. VIT shall be solely responsible for all costs incurred to Develop the Product in CKD, which
Development VIT may conduct by itself or through an Affiliate, Third Party or ChemoCentryx. If the Parties agree, following VIT’s exercise of the CKD Option, that ChemoCentryx will conduct Development of the Product in CKD on VIT’s behalf,
then VIT will reimburse all Third Party costs, plus a premium of [***] of such costs, that ChemoCentryx incurs to conduct such activities under the Development Plan for CKD. Prior to the JSC’s approval of the Development Plan for CKD, the
Parties shall determine a mechanism for VIT’s payment of ChemoCentryx’s costs, such as quarterly payments or development milestone-based payments, and VIT shall make payments as agreed by the Parties. 

4.6 Additional Studies. 

(a) Responsibility. In the event that any additional country-specific clinical study(ies) is required to obtain Regulatory Approval of
the Product in a particular regulatory jurisdiction in the Initial Indication or an Additional Indication that the Parties are jointly funding under Section 4.7, either in or outside the Territory (other than studies required to obtain EMA and
FDA Regulatory Approval for the Initial Indication), including post-marketing commitments, or either Party desires to conduct a Phase IV Clinical Trial or other clinical study 

 

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in any such Indication in its respective territory (each, an “Additional Study”), then: (i) if such Additional Study is for a jurisdiction in the Territory, VIT shall be
responsible, at its own expense, for conducting such Additional Study, and (ii) if such Additional Study is for a jurisdiction outside the Territory, ChemoCentryx shall be responsible, at its own expense, for conducting such Additional Study,
in each case (i) and (ii) subject to Section 4.6(b), provided that any Additional Study conducted under either (i) or (ii) is subject to the approval of the JSC. If the JSC approves any such Additional Study, the Parties will amend the
Development Plan for the applicable Indication to include such study and submit it to the JSC for review and approval. 
 (b) Cost
Sharing. Notwithstanding the foregoing in Section 4.6(a), if either Party desires to use the Licensed ChemoCentryx Data or Licensed VIT Data, as applicable, resulting from any Additional Studies conducted by the other Party, such Party may do so
by (i) agreeing in writing to pay and paying for [***] of all internal (at the FTE Rate) and external costs incurred by the other Party to conduct such Additional Studies prior to such agreement, if such agreement is provided in writing prior
to the first data read from such study, or (ii) agreeing in writing to pay and paying for [***] of all internal (at the FTE Rate) and external costs incurred by the other Party to conduct such Additional Studies prior to such agreement, plus a
premium of [***] of such amount (i.e., a total of [***]), if such agreement is provided in writing after obtaining access to data from the first data read from such study, and in each case (i) and (ii) paying [***] of all internal (at the FTE
Rate) and external costs incurred by the other Party to conduct such Additional Studies after such agreement in accordance with an agreed budget. In either case (i) and (ii), in connection with the
non-Developing Party’s agreement to pay for the costs incurred to conduct such Additional Studies, the Parties shall determine a mechanism for payment of such costs, such as quarterly payments or
development milestone-based payments, and the non-Developing Party shall make payments as agreed by the Parties. 

(c) Data Exchange. Each Party shall provide the other Party with the Licensed ChemoCentryx Data or Licensed VIT Data, as applicable,
Controlled by such Party or its Affiliates and resulting from Additional Studies conducted by such Party in accordance with Section 2.6. Each Party shall have the right to use such Data (i) to the extent necessary to comply with such
Party’s regulatory reporting and compliance obligations, including safety reporting obligations, and (ii) if such Party reimburses the other Party’s expenses under Section 4.6(b), as necessary or useful to Develop and Commercialize
the Product in its respective territory. 
 4.7 Additional Indications. 

(a) The Parties may pursue Additional Indications as set forth in this Section 4.7. If either Party (the “Proposing
Party”) desires to Develop the Product for an Additional Indication, then the Proposing Party will present a proposal to the other Party (the “Non-Proposing Party”) through the JSC,
including a synopsis of the additional Development activities, the role of each Party with respect to Development, the timeline for the additional Development activities and the estimated costs associated with such additional Development. 

(b) If the Non-Proposing Party provides notice within sixty (60) days after the date of
the Proposing Party’s proposal that it believes that Development of the Product for the proposed Additional Indication would satisfy the Additional Indication Rejection Condition, the determination specified in Section 4.7(f) shall be
made. Within thirty (30) days after a determination (if a determination is requested) is made pursuant to Section 4.7(f) if such determination is that the Additional Indication Rejection Condition is not satisfied or within such sixty
(60) day period (during which the Parties are discussing the proposal) if no such determination is requested, the Non-Proposing Party shall elect whether to participate in the Development of such
Additional Indication by written notice to the Proposing Party. 
 (c) If the Non-Proposing
Party elects to participate, the Parties shall jointly Develop the Product in such Additional Indication in accordance with this Article 4, provided that [***] of the internal costs (at the FTE Rate) and external costs incurred by the Parties for
Developing the Product for such Additional Indication under 
  

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an agreed budget. For clarity, if ChemoCentryx is the Proposing Party, VIT will not be required to pay any costs incurred for Development activities for the Product for an Additional Indication
that are conducted solely to satisfy requirements for Regulatory Approval of the Product outside the Territory, if such requirements are in addition to requirements of the FDA and EMA. 

(d) In such event, the Parties shall prepare a Development Plan for the Additional Indication to include the applicable Development
activities and submit such Development Plan, and an associated budget, to the JSC for review and approval, and all resulting Licensed ChemoCentryx Data or Licensed VIT Data, as applicable, will be available for use by the Parties as permitted by
this Agreement. Prior to the JSC’s approval of such Development Plan, the Parties shall determine a mechanism for reconciliation and reimbursement of costs incurred by the Parties, such as quarterly payments or development milestone-based
payments, and each Party shall make payments, to the extent applicable, as agreed by the Parties. 
 (e) If the Non-Proposing Party does not elect to participate in such Development under Section 4.7(b) with respect to the proposed Additional Indication and the JSC does not determine pursuant to Section 4.7(f) that
the Additional Indication Rejection Condition is satisfied, the Proposing Party shall prepare a Development Plan for the proposed Additional Indication to include such development, and upon the JSC’s approval of such Development Plan, may
proceed with the Development of such Additional Indication and will be solely responsible for the conduct and costs of such Development. In such case, unless VIT receives rights pursuant to Section 4.7(h), if VIT is the Non-Proposing Party, such Additional Indication will be removed from the Field (but may be added back to the Field upon Buy-In under Section 4.7(h)). If the Non-Proposing Party does not elect to participate under Section 4.7(b) or Buy In under Section 4.7(h), the Non-Proposing Party will have no rights to use any
resulting Data, except that it will have the right to use resulting Licensed ChemoCentryx Data or Licensed VIT Data, as applicable, to the extent necessary to comply with such Party’s regulatory reporting and compliance obligations, including
safety reporting obligations, in its respective territory (for VIT, in the Territory and for ChemoCentryx, outside of the Territory) at no cost to the Non-Proposing Party. 

(f) If the Non-Proposing Party believes a proposed Additional Indication would likely have
(i) a material adverse effect on the ability to Commercialize or Develop the Product for any Indication in the Field for which the Product has been, is planned to be or is being, Developed or Commercialized in the Territory as to VIT, or
outside the Territory as to ChemoCentryx, (ii) a material adverse effect on Pricing or Reimbursement Approval in the Territory as to VIT, or outside the Territory as to ChemoCentryx, or (iii) a material adverse effect on the regulatory
status of the Product in the Field in the Territory as to VIT, or outside the Territory as to ChemoCentryx (a proposed Additional Indication likely having an effect described in clause (i), (ii) or (iii) , the “Additional Indication
Rejection Condition”), such Non-Proposing Party will have the right to refer such matter to the JSC in writing to determine whether the Additional Indication Rejection Condition is satisfied, as
provided under Section 3.4. 
 (g) If the Non-Proposing Party does not exercise its
rights under Section 4.7(b) or (h), then the Proposing Party and its Affiliates may not, themselves or with or through any Third Party, Develop or Commercialize the Product in the Additional Indication in the
Non-Proposing Party’s territory (i.e., the Territory if ChemoCentryx is the Proposing Party, and outside the Territory if VIT is the Proposing Party). 

(h) The Non-Proposing Party will have the right to “Buy In” to co-fund Development in accordance with the Development Plan for any Additional Indication for the Product for which the Non-Proposing Party declined previously to co-fund under Section 4.7(b) by written notice to the Proposing Party, following receipt of a budget and summary of costs incurred to date for such Development. If the Buy In is exercised before the first data
read, the Non-Proposing party shall pay the Proposing Party an amount equal to [***] of the internal costs (at the FTE Rate) and the external costs the Proposing Party incurred to Develop the Product for such
Additional Indication in accordance with the Development Plan prior to the Buy In. If the Buy In is exercised after the first 
  

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data read, the Non-Proposing party shall pay the Proposing Party an amount equal to [***] of the internal costs (at the FTE Rate) and the external costs
the Proposing Party incurred to conduct such Additional Indication in accordance with the Development Plan prior to the Buy In, plus a premium of [***] of such amount (i.e., a total of [***]). In each case, the
Non-Proposing Party would pay [***] of all costs incurred by the Proposing Party to Develop such Additional Indication after such Buy In, to the extent applicable, in accordance with the Development Plan and
an agreed budget. 
 (i) After notice of a Non-Proposing Party of its interest in a Buy In
pursuant to Section 4.7(h), the Proposing Party and its Affiliates will promptly provide the Non-Proposing Party with any relevant information regarding the Additional Indication and any filings with the
Regulatory Authorities regarding the Product for such Additional Indication as reasonably requested by the Non-Proposing Party. In addition, the Proposing Party shall cause its Affiliates and
licensees/sublicensees to comply with this Section 4.7(i). 
 (j) In connection with the
Non-Proposing Party’s exercise of its Buy In, the Parties shall determine a mechanism for payment of costs incurred to Develop the Product in the Additional Indication, such as quarterly payments or
development milestone-based payments, and the Non-Proposing Party shall make payments as agreed by the Parties; provided that if both Parties incur such costs, the JSC will establish a procedure for sharing
and reconciling costs. 
 4.8 Conduct of Development Activities. Each Party shall perform all Development activities in
compliance with all Applicable Laws, including good scientific and clinical practices under the Applicable Laws of the country in which such activities are conducted. 

4.9 Development Diligence. Each Party shall use Commercially Reasonable Efforts to conduct the Development activities allocated
to such Party in the Development Plans. VIT shall use Commercially Reasonable Efforts [***] (except for Additional Indications for which ChemoCentryx is the Proposing Party and VIT does not elect to participate under Section 4.7(b) or by Buy In
under Section 4.7(h)) in each of the Major Market Countries. In addition, ChemoCentryx shall use Commercially Reasonable Efforts to [***]. 

4.10 Development Reports. Each Party shall keep the other Party reasonably informed as to the progress and results of its
and its Affiliates’ Development activities under this Agreement. Without limiting the foregoing, each Party shall provide the JSC with regular Calendar Quarterly reports (and more frequent reports if requested by a Party) detailing its
Development of the Compound and the Product and the results of such Development. Such reports shall include for each clinical trial, by way of example and not limitation: the number and identities of the countries in which such trial is being
conducted, the number of clinical sites selected and then-currently active, the target enrollment, the number of subjects screened and enrolled, the number of subject drop-outs, and the targeted enrollment completion date. The Parties shall
discuss the status, progress and results of such Development activities at each JSC meeting. Each Party shall promptly respond to the other Party’s reasonable questions or requests for additional information relating to such Development
activities. For the avoidance of doubt, neither Party will be required to include information that it does not otherwise create for its own internal purposes in any report required under this Section 4.10. 

4.11 Use of Subcontractors. Each Party may perform its Development activities under this Agreement through one or more
subcontractors, provided that (a) such Party will remain responsible for the work allocated to, and payment to, such subcontractors to the same extent it would if it had done such work itself; (b) each subcontractor undertakes in writing
obligations of confidentiality and non-use regarding Confidential Information consistent with this Agreement, and (c) each subcontractor agrees in writing to assign all intellectual property developed in
the course of performing any such work to such Party. 
  

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	5.	REGULATORY ACTIVITIES 

 5.1 Conduct of Regulatory
Activities. 
 (a) Each Development Plan shall set forth the regulatory strategy for seeking Regulatory Approval of the Product
for the applicable Indication in the Major Market Countries and in other countries in the Territory, in each case as determined by the JSC. The Parties intend to and will collaborate to maximize any Regulatory Exclusivity for the Product in and
outside the Territory to the extent permitted by Applicable Law. 
 (b) As set forth in the Development Plan for the Initial
Indication, prior to the filing of an MAA for the Product for the Initial Indication in the EU, ChemoCentryx shall be solely responsible, at its own expense (except for any Development Funding Payments by VIT under Section 4.4), for all
regulatory activities related to Development of the Product in the Field in the Territory, including all Regulatory Filings for the Development and all communications with Regulatory Authorities (e.g., IND submissions). In addition, ChemoCentryx
shall be solely responsible for preparing, filing with the EMA, obtaining from the EMA and maintaining all Conditional Marketing Authorisations for the Product in the Field in the Territory in accordance with the regulatory strategy set forth in the
applicable Development Plan and under coordination of the JSC. Promptly after obtaining any such Conditional Marketing Authorisation, ChemoCentryx shall assign it to VIT, and the Parties shall take all actions reasonably necessary to effect such
assignment and transfer. VIT shall reimburse all reasonable and documented external expenses incurred by ChemoCentryx in connection with such Conditional Marketing Authorisations. For the purpose of this Agreement, “Conditional Marketing
Authorisation” has the meaning provided under the then current EMA and EU regulations and directives. 
 (c) Except as provided
below and in Section 5.1(b) above, VIT shall be solely responsible, at its own expense, for preparing, filing, obtaining, and maintaining Regulatory Approvals for the Product in the Field in the Territory in accordance with the regulatory strategy
set forth in the applicable Development Plan and under coordination of the JSC. ChemoCentryx shall provide content and subject matter expertise as reasonably requested by VIT in connection with the preparation, filing and obtaining of regulatory
Approvals for the Product in the Field in the Territory, including but not limited to providing VIT with a copy of the regulatory dossier to be filed with the FDA in the U.S. Each Party shall be responsible for all costs it incurs to conduct such
activities under this Section 5.1(c), except as provided in Section 5.1(f). 
 (d) Subject to Applicable Laws and to Section
5.1(b), VIT (or its Affiliate or Sublicensee) shall be the holder of all Regulatory Approvals for the Product in the Field in the Territory and shall be responsible for all interactions with Regulatory Authorities with respect to the Product in the
Field in the Territory. ChemoCentryx will cooperate to provide subject-matter expertise to support VIT, VIT’s Affiliates and any Sublicensee in such interactions. 

(e) VIT shall consult with ChemoCentryx through the JSC regarding, and keep ChemoCentryx regularly and fully informed of, the
preparation, Regulatory Authority review and approval of Regulatory Filings, and communications with Regulatory Authorities with respect to the Product in the Field in the Territory. In addition, VIT shall promptly provide ChemoCentryx with copies,
translated into English (to the extent that VIT obtains English translations in the ordinary course of business), of all material documents, information, and correspondence received from a Regulatory Authority and, upon reasonable request, with
copies, translated into English (to the extent that VIT obtains English translations in the ordinary course of business), of any other documents, reports, and communications from or to any Regulatory Authority relating to the Compound, the Product,
or activities under this Agreement. Upon VIT’s reasonable request, ChemoCentryx shall use Commercially Reasonable Efforts to assist VIT, VIT’s Affiliates and any Sublicensees in maintaining Regulatory Approvals for the Product in the Field
in the Territory. 
 (f) VIT will reimburse all reasonable and documented external expenses incurred by ChemoCentryx to Third Parties
in connection with any assistance or provision of content and subject matter expertise under Sections 5.1(c), (d) and (e). ChemoCentryx will reimburse all reasonable and documented external expenses

  
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incurred by VIT to Third Parties in connection with any assistance or provision of content and subject matter expertise as requested by ChemoCentryx in connection with ChemoCentryx’s
regulatory activities for outside the Territory. 
 (g) ChemoCentryx shall keep VIT reasonably updated, through the JSC, of its
material Regulatory Filings and communications with Regulatory Authorities in major countries outside the Territory, to the extent possible without breaching confidentiality obligations to a Third Party. 

5.2 Meetings with Regulatory Authorities. At each regularly scheduled JSC meeting, each Party shall provide the other Party with
a list and schedule of any substantive in-person meeting or teleconference with any Regulatory Authority (or related advisory committee) in the Territory or in the U.S. planned for the next Calendar Quarter
that relates to the Compound and/or the Product. In addition, each Party shall notify the other Party as soon as reasonably possible if such Party becomes aware of any additional such meetings or teleconferences that become scheduled for such
Calendar Quarter. Each Party shall have the right to provide input in preparation for all such meetings and teleconferences and the right, but not the obligation, to have its representatives attend and participate in such meetings and
teleconferences, to the extent permitted under Applicable Laws. Each Party will be solely responsible for all costs it incurs to participate in such meetings and teleconferences. 

5.3 Adverse Event Reporting. Prior to the first Regulatory Approval of the Product in the Territory, the Parties shall
enter into a separate safety data exchange agreement (the “Safety Data Agreement”), which shall specify each Party’s responsibilities with respect to the timely reporting of all relevant adverse drug reactions/experiences,
Product quality, Product complaints, and Safety Data relating to Compounds and the Product to the appropriate Regulatory Authorities in and outside the Territory, and the management of such reports and Safety Data, all in accordance with Applicable
Laws of the relevant countries and Regulatory Authorities. The Parties shall amend the Safety Data Agreement from time to time as necessary to comply with any changes in Applicable Laws or any guidance received from applicable Regulatory
Authorities. The Parties shall cooperate with each other with respect to their respective responsibilities under the Safety Data Agreement, and each Party shall be solely responsible for costs relating to its respective responsibilities under the
Safety Data Agreement, unless the Parties agree otherwise in writing. 
  

	6.	COMMERCIALIZATION 

 6.1 General. Subject to the terms and
conditions of this Agreement, and except as otherwise agreed by the Parties, VIT shall be solely responsible, at its own expense, for all aspects of the Commercialization of the Product in the Target Field in the Territory, including:
(a) developing and executing a commercial launch and pre-launch plan; (b) negotiating with commercial payors and the applicable Governmental Authorities responsible for Pricing and Reimbursement
Approvals or regarding the price and reimbursement status of the Product; (c) marketing and promotion activities; (d) booking sales and distribution and performance of related services; (e) handling all aspects of order processing,
invoicing and collection, inventory and receivables; (f) providing customer support, including handling medical queries, and performing other related functions; and (h) conforming its practices and procedures to Applicable Laws relating to
the marketing, detailing, and promotion of the Product in the Territory. As provided in Sections 10.11 and 10.12, VIT shall provide ChemoCentryx with samples of any core advertising and promotional materials in English, and samples of local
adaptations of such core materials in the Major Market Countries, for informational purposes only, prior to distributing such materials for use, but will not be required to provide samples of local adaptations of any such materials outside the Major
Market Countries. Notwithstanding the foregoing, if the Territory is expanded to include the U.S. pursuant to Section 2.10, ChemoCentryx will have the right to Co-Promote the Product in the U.S. in
accordance with the Co-Promotion Agreement. 
 6.2 Commercialization Plan. No later
than nine (9) months prior to the anticipated first Regulatory Approval of the Product in the Territory, VIT shall provide to the JSC its Commercialization Plan for the Major 

  
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Market Countries for JSC review and consideration as provided in Section 3.1(e); provided that if the anticipated first Regulatory Approval is a Conditional Marketing Authorisation of the Product
in the Territory, VIT shall provide its Commercialization Plan to the JSC a commercially reasonable time period in advance of such anticipated Regulatory Approval. VIT shall on an annual basis prepare updates and amendments to its Commercialization
Plan for the Major Market Countries to reflect changes in its plans, including in response to changes in the marketplaces and related product forecasts, relative success of the Product, and other relevant factors influencing such plans and
activities, and shall submit such updates and amendments to the JSC for review as provided in Section 3.1(e). For the avoidance of doubt, VIT will not be required to include information in any amendments or updates to its Commercialization Plan
under this Section 6.2 that it does not otherwise create for its own internal purposes. 
 6.3 Commercialization Diligence. VIT
shall use Commercially Reasonable Efforts to seek and obtain Pricing and Reimbursement Approval for and to market, promote, and otherwise Commercialize the Product in the Target Field in the Major Market Countries and in the countries in the
Territory listed on Schedule 6.3, and specifically shall use Commercially Reasonable Efforts to: 
 (a) commence the regular
commercial distribution, use, and sale of the Product in the Field in each Major Market Country and country in the Territory listed on Schedule 6.3 and for each Indication in which it obtains Regulatory Approval and Pricing and Reimbursement
Approval as soon as practicable, in its exercise of Commercially Reasonable Efforts, following such Regulatory Approval and Pricing and Reimbursement Approval; and 

(b) thereafter continue to Commercialize the Product in the Field in each Major Market Country and country in the Territory listed on
Schedule 6.3 and for each Indication for which the Product has received Regulatory Approval and Pricing and Reimbursement Approval in such countries. 

Without limiting the foregoing, VIT shall launch the Product in each country for which it receives Regulatory Approval and Pricing and
Reimbursement Approval within [***] after obtaining such approvals, provided that (i) such launch is consistent with VIT’s exercise of Commercially Reasonable Efforts and (ii) sufficient quantities of the Product are available. [***].

 6.4 Commercialization Reports. Each Party shall update the JSC at each regularly scheduled JSC meeting regarding its
Commercialization of the Product in the Territory as to VIT and outside the Territory as to ChemoCentryx. Each such update by VIT shall summarize VIT’s and it Affiliates’ and Sublicensees’ significant Commercialization activities with
respect to the Product in the Territory, and will be at a level of detail reasonably requested by ChemoCentryx and sufficient to enable ChemoCentryx to determine VIT’s compliance with its diligence obligations in Section 6.3. Each Party
shall promptly respond to the other Party’s JSC representatives’ reasonable questions or requests for additional information relating to such Commercialization activities. For the avoidance of doubt, VIT will not be required to include
information in its reports under this Section 6.4 that it does not otherwise create for its own internal purposes. 
 6.5 Ex-Territory and Ex-Field Activities. 
 (a) VIT hereby
covenants and agrees that during the Term it shall not (and shall cause its Affiliates, Sublicensees and subcontractors not to), either itself or through a Third Party, market, promote, sell or actively offer for sale the Product outside the Field
in the Territory or outside of the Territory in or outside of the Field. Without limiting the generality of the foregoing, with respect to countries outside of the Territory, VIT shall not (i) engage in any advertising activities relating to
the Product directed primarily to customers outside the Territory (which excludes any participation in conferences, congresses or scientific or medical meetings held throughout the world), or (ii) actively or intentionally solicit orders from
any prospective purchaser located outside the Territory. To the extent permitted by Applicable Laws, including applicable antitrust laws, if VIT 

 

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receives any order from a prospective purchaser located in a country outside of the Territory, VIT shall immediately refer that order to ChemoCentryx and shall not accept any such order or
deliver or tender (or cause to be delivered or tendered) the Product under such order. If VIT should reasonably know that a customer or Distributor is actively engaged itself or through a Third Party in the sale or distribution of the Product
outside of the Territory or outside the Field within the Territory, then VIT shall (A) within five (5) Business Days of gaining knowledge of such activities, notify ChemoCentryx regarding such activities and provide all information
available to VIT that ChemoCentryx may reasonably request concerning such activities and (B) take Commercially Reasonable Efforts (including cessation of sales to such customer) necessary to limit such sale or distribution outside the Territory
or the Field, unless otherwise agreed in writing by the Parties. 
 (b) ChemoCentryx hereby covenants and agrees that during the Term
it shall not (and shall cause its Affiliates, ChemoCentryx Collaborators and subcontractors not to), either itself or through a Third Party, market, promote, sell or actively offer for sale the Product for use in the Field in the Territory. Without
limiting the generality of the foregoing, with respect to countries within the Territory, ChemoCentryx shall not (i) engage in any advertising activities relating to the Product for use in the Field directed primarily to customers located in
such countries within the Territory (which excludes any participation in conferences, congresses or scientific or medical meetings held throughout the world), or (ii) actively or intentionally solicit orders from any prospective purchaser of
the Product for use in the Field located in such countries within the Territory. To the extent permitted by Applicable Laws, including applicable antitrust laws, if ChemoCentryx receives any order from a prospective purchaser for the Product in the
Field located in a country inside of the Territory, ChemoCentryx shall immediately refer that order to VIT. If ChemoCentryx should reasonably know that a customer or distributor is actively engaged itself or through a Third Party in the sale or
distribution of the Product inside the Territory in the Field, then ChemoCentryx shall (A) within five (5) Business Days of gaining knowledge of such activities, notify VIT regarding such activities and provide all information available to
ChemoCentryx that VIT may reasonably request concerning such activities and (B) take Commercially Reasonable Efforts (including cessation of sales to such customer) necessary to limit such sale or distribution inside the Territory in the Field,
unless otherwise agreed in writing by the Parties. 
  

	7.	MANUFACTURE AND SUPPLY 

 7.1
Manufacturing Committee. At the first JSC meeting, the JSC shall establish a joint manufacturing subcommittee (the “JMC”), with subject matter experts from each Party, to oversee decisions and facilitate communications
between the Parties with respect to the supply of Product to VIT. The JMC shall be responsible for determining the strategy and timing for supply of Drug Substance and Bulk Drug Product for the U.S. and Territory (which may include supply by VIT or
its Affiliate or by a Third Party CMO through ChemoCentryx, and may include commencing qualification of such supplier prior to Regulatory Approval of the Product in the Territory), selecting and overseeing the qualification of Third Party CMOs
(including secondary suppliers) for supplying Compound as bulk drug substance (“Drug Substance”) and Bulk Drug Product to VIT for Commercial use in the Territory; provided that ChemoCentryx shall retain all control over the strategy
and implementation of supply of Drug Substance and Bulk Drug Product for outside the Territory. Unless agreed otherwise by the Parties, ChemoCentryx shall directly engage such CMOs for such supply. Decisions of the JMC will be made by consensus of
the JMC, without escalation to the JSC or the Executive Officers. 
 7.2 Commercial Supply Agreement. Unless agreed otherwise by the
JMC or the Parties, ChemoCentryx, itself or through its Affiliates or Third Party CMOs, shall manufacture and supply VIT’s and its Affiliates’ and Sublicensees’ requirements for the Product for Commercial use in the Territory as Bulk
Drug Product, pursuant to a separate supply agreement to be entered into between the Parties, along with a quality agreement, within twelve (12) months after the Effective Date (the “Supply Agreement”). The Supply Agreement
will contain commercially reasonable and customary terms consistent with this Article 7, as well as the terms of ChemoCentryx’s agreements with its Third Party CMOs that supply Compound and Product, including the warranties and remedies
therein. 

  
 32 

 7.3 Transfer Price. Pursuant to the Supply Agreement, ChemoCentryx will supply Bulk Drug
Product to VIT at a transfer price equal to ChemoCentryx’s Cost of Goods plus [***] of such Cost of Goods. 
 7.4 VIT’s
Manufacturing Obligations. VIT shall be solely responsible for packaging and labeling of all Product for Commercial use in the Field in the Territory. 

7.5 Clinical Supply. In the event that VIT conducts clinical studies of the Product pursuant to Section 4.3 or 4.6 and in
accordance with the Development Plan prior to the first Regulatory Approval in the Territory, ChemoCentryx shall supply Product in the form then used by ChemoCentryx for clinical trials at a transfer price equal to ChemoCentryx’s Cost of Goods
plus [***] of such Cost of Goods. The JSC will establish the process, timing and quantity for such supply, and the Parties will enter into a quality agreement with respect to quality aspects of such supply. 

 

	8.	FEES AND PAYMENTS 

 8.1 Upfront
Payments. VIT shall make a non-refundable, non-creditable payment to ChemoCentryx of fifty million United States dollars (US$50,000,000), payable in the
following two (2) installments: 
 (a) thirty million United States dollars (US$30,000,000) within ten (10) Business Days
after the Effective Date; and 
 (b) twenty million United States dollars (US$20,000,000) on the first anniversary of the Effective
Date; provided that if this Agreement is terminated prior to such first anniversary, such payment shall remain due and payable despite such termination, unless this Agreement is terminated by VIT pursuant to Section 14.3. 

8.2 Regulatory Milestone Payments. 

(a) Regulatory Milestones – Orphan Indications. Subject to Section 8.2(b), VIT shall pay to ChemoCentryx the non-refundable, non-creditable Milestone Payments set forth in the table below within thirty (30) days after the achievement of each Milestone Event (whether by or on
behalf of VIT, its Affiliates, or Sublicensees) by the Product in each of the first two (2) Orphan Indications: 
  

									
	 Regulatory Milestone Event
	  	Milestone Payment
(in US$) for the First
Orphan Indication	 	  	Milestone
Payment (in
US$) for the
Second Orphan
Indication	 
	 Filing Milestones
	  
	  			
	     1.    [***]
	  	 	[***]	 	  	 	[***]	 
	     2.    [***]
	  	 	[***]	 	  	 	[***]	 
	 Approval Milestones
	  
	  			
	     3.    [***]
	  	 	[***]	 	  	 	[***]	 
	     4.    [***]
	  	 	[***]	 	  	 	[***]	 

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 33 

 (b) Accelerated EMA Filing Milestones. In the event that VIT or its Affiliate or
Sublicensee achieves one of the Milestone Events (1) or (2) set forth in the table below, VIT shall pay to ChemoCentryx the corresponding non-refundable,
non-creditable Milestone Payment within thirty (30) days after the achievement of such Milestone Event (or if applicable the two different Milestone Events within Milestone Event (1) or (2)) (whether
by or on behalf of VIT, its Affiliates, or Sublicensees) by the Product; provided that such payment(s) shall be in lieu of the [***] set forth in the table in Section 8.2(a) for the first Orphan Indication in which [***] is achieved: 

 

					
	 Accelerated EMA Filing Milestone Event
	  	Milestone
Payment (in US$)	 
		
	 (1) [***]:
	  			
		
	 ●    [***]
	  	 	[	***] 
	 ●    [***]:

 
 ¡    [***]
  

¡
    [***]
	  	   
 
	 [ 
 [
	 ***]  
 ***] 

		
	 (2) [***]:
	  			
		
	 ●    [***]
	  	 	[	***] 
	 ●    [***]:

 
 ¡    [***]
  

¡
    [***]
	  	   
 
	 [ 
 [
	 ***]  
 ***] 

 (c) Regulatory Milestones – CKD. Provided that VIT has exercised the CKD Option under Section
2.10(a), VIT shall pay to ChemoCentryx the non-refundable, non-creditable Milestone Payments set forth in the table below within thirty (30) days after the
achievement of each Milestone Event (whether by or on behalf of VIT, its Affiliates, or Sublicensees) by the Product: 
  

					
	 Regulatory Milestone Event
	  	Milestone Payment (in US$)	 
	 Clinical Milestones in CKD
	  

	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 
	 Filing Milestones
	  

	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 
	 Approval Milestones
	  

	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 
	 [***]
	  	 	[	***] 

 (d) Clarifications. For clarity, (i) each Milestone Payment set forth in
Section 8.2(a) shall be payable once for each of the first two (2) Orphan Indications (at the applicable amount), upon the first achievement of the 

 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 34 

 
applicable Milestone Event in each such Orphan Indication, (ii) each Milestone Payment set forth in Section 8.2(c) shall be payable only once, upon the first achievement of the applicable
Milestone Event, and (iii) only one of the Milestone Payments (1) or (2) set forth in Section 8.2(b) shall be payable, such Milestone Payment payable only once, upon the first achievement of the applicable Milestone Event in any Orphan
Indication, and upon such Milestone Payment being made, the [***] set forth in Section 8.2(a) shall not be payable for achievement thereof in the same Orphan Indication. The Milestone Payment (1) or (2) that is payable under Section 8.2(c)
will be payable either at one time or at two different times, depending on the type of MAA that achieves the Milestone Event. 
 8.3
Commercial Milestone Payments. VIT shall pay to ChemoCentryx the one-time, non-refundable, non-creditable commercial
Milestone Payments set forth below, in each case within thirty (30) days after the end of the first Calendar Quarter during which the aggregate annual Net Sales of all Product in the Territory in a Calendar Year first reach the values indicated
below. For clarity, the Milestone Payments in this Section 8.3 shall be additive such that if multiple milestone events specified below are achieved in the same Calendar Quarter, then the Milestone Payments for all such milestone events shall
be payable within thirty (30) days after the end of such quarter. 
  

			
	 Annual Net Sales of all Product in the Territory (in US$)
	  	 Milestone Payment (in US$)

	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 35 

 8.4 Royalty Payments. 

(a) Royalty Rate. Subject to the terms and conditions of this Agreement, VIT shall make Calendar Quarterly, non-refundable, non-creditable royalty payments to ChemoCentryx on the Net Sales of the Product sold in the Territory during the applicable Royalty Term, as calculated by
multiplying the applicable royalty rate set forth below by the corresponding amount of Net Sales of the Product sold in the Territory in the applicable Calendar Year. Only one of the royalty rates in the table below will apply to a particular
country in the Territory, depending on the Indication(s) for which the Product is approved in such country. If both sets of royalty rates apply in the Territory, the royalties will be calculated by (i) determining the portion of total Net Sales
in the Territory in a Calendar Quarter in each royalty tier that is attributable to countries at the lower royalty rates and the portion that is attributable to countries at the higher royalty rates, (ii) for each royalty tier, applying the
applicable royalty rate to the applicable portion of Net Sales in the Territory and (iii) adding the royalties for each portion of Net Sales. An example of the foregoing calculation is set forth on Exhibit 8.4(a). 

 

					
	 Annual Net Sales of the Product in the Territory
	  	Royalty Rate
if Product
approved for
Orphan
Indication(s)
only	  	Royalty Rate
if Product
approved for
Orphan
Indication(s)
and any
Indication
that is not an
Orphan
Indication
	 For that portion of annual Net Sales less than or equal to [***]
	  	[***]	  	[***]
	 For that portion of annual Net Sales greater than [***] but less than or equal to [***]
	  	[***]	  	[***]
	 For that portion of annual Net Sales greater than [***] but less than or equal to [***]
	  	[***]	  	[***]
	 For that portion of annual Net Sales greater than [***] but less than or equal to [***]
	  	[***]	  	[***]
	 For that portion of annual Net Sales greater than [***]
	  	[***]	  	[***]

 (b) Royalty Term. Royalties shall be paid on a country-by-country basis in the Territory from the First Commercial Sale of the Product in such country until the latest of (i) expiration of the last-to-expire Valid Claim of the ChemoCentryx Patents (including Joint Patents) that would, but for the licenses granted hereunder, be infringed by the using, selling or importing of the Product in such
country in the Territory [***]; (ii) the expiration of any Regulatory Exclusivity for the Product in such country; or (iii) ten (10) years after the First Commercial Sale of the Product in such country (the “Royalty
Term”). 
 (c) Generic Competition. If after Regulatory Approval of a Generic Product to a particular Product in any
country, regulatory jurisdiction or region in the Territory, one (1) or more Generic Products to such Product are launched in such country, regulatory jurisdiction or region during the Royalty Term for such Product and country, regulatory
jurisdiction or region, and if the total revenue for the sale of the relevant Product in such country, regulatory jurisdiction or region during a Calendar Quarter decreases by [***] or more from the total revenue for the Product in
such country, regulatory jurisdiction or region during the Calendar Quarter immediately before the launch of the Generic Products in such country, regulatory jurisdiction or region, then the royalties payable under Section 8.4(a) with respect to the
relevant Product in such country, regulatory jurisdiction or region shall be reduced by [***] starting with the Calendar Quarter in which the total revenue for the sale of the relevant Product decreased by [***] or more. Such royalty reduction will
be calculated by determining the portion of total Net Sales of the relevant Product in the Territory in a Calendar Quarter that is attributable to the country, regulatory jurisdiction or region in which such reduction applies, and by determining the
total royalties 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 36 

 
for the Territory without reduction, and then reducing by [***] the applicable portion (based on Net Sales) of total royalties attributable to the country, regulatory jurisdiction or region in
which such reduction applies. The royalties payable with respect to the relevant Product in such country, regulatory jurisdiction or region will be [***]. An example of the foregoing calculation is set forth on Exhibit 8.4(c). 

(d) Joint Patents and Product Technology. If during the Royalty Term for the Product and country, following the expiration of the time
periods in clauses (ii) and (iii) of Section 8.4(b), the only Valid Claim included in clause (i) of Section 8.4(b) is a Joint Patent or Patent included in the Product Technology, then the royalties payable under Section 8.4(a) with respect
to the Product and country shall be reduced by [***] of the amounts otherwise payable under Section 8.4(a). Such royalty reduction will be calculated in a manner analogous to the calculation of royalties under Section 8.4(c). 

(e) Third Party Payments. If it is necessary for VIT, its Affiliates, or Sublicensees to obtain a license from a Third Party under any
Patent in a particular country in the Territory that claims the composition of matter or method of use of the Compound in the Field, such that such Patent would be infringed by the sale, promotion, manufacture, use, or import of the Product in the
absence of such license, VIT shall have the right to credit [***] of the payments made by VIT to such Third Party pursuant to such license (including payments by VIT to ChemoCentryx under Section 2.7(b), to the extent applicable) against any royalty
payments owed to ChemoCentryx hereunder with respect to the Product in such country; provided that (i) in no event shall the royalty payment to ChemoCentryx for the Product and country be reduced by more than [***] of the amount otherwise owed
to ChemoCentryx as a result of the credit in Section 4.4 and any credit in this Section 8.4(e) and (ii) VIT shall not have the right to credit any such payment with respect to the Product and country after the expiration of the
Royalty Term for the Product and country. 
 8.5 China Agreement Revenue. Within sixty (60) days after the end of each Calendar
Quarter in which ChemoCentryx receives China Agreement Revenue, ChemoCentryx shall pay to VIT an amount equal to twenty-five percent (25%) of all China Agreement Revenue received by ChemoCentryx during such Calendar Quarter. 

 

	9.	PAYMENT; RECORDS; AUDITS 

 9.1
Payment; Reports. Royalty payments due by VIT to ChemoCentryx under Section 8.4 shall be calculated and reported for each Calendar Quarter. VIT shall pay all royalty payments due under Section 8.4 within sixty (60) days
after the end of each Calendar Quarter and shall include with each payment a report setting forth, on a country-by-country basis, Net Sales of the Product by VIT and its
Affiliates and Sublicensees in the Territory in sufficient detail to permit confirmation of the accuracy of the royalty payment made, including, for each country, (i) the amount of gross sales of the Product, (ii) an itemized calculation
of Net Sales in the Territory showing separately each type of deduction provided for in the definition of “Net Sales,” (iii) the portion of the Recoverable Amount, if any, credited against the royalty payment, (iv) a calculation of
the royalty payment due on such sales, including the application of any reduction made in accordance with Section 8.4(c), 8.4(d) and/or 8.4(e), and (v) the exchange rate for such country. 

9.2 Exchange Rate; Manner and Place of Payment. All references to dollars and “$” herein shall refer to U.S. dollars.
All payments hereunder shall be payable in U.S. dollars. When conversion of payments from any currency other than U.S. dollars is required, such conversion shall be at an exchange rate equal to the weighted average of the rates of exchange for the
currency of the country from which such payments are payable as published by The Wall Street Journal, Western U.S. Edition, during the Calendar Quarter in which the applicable sales were made. All payments owed under this Agreement shall be
made by wire transfer in immediately available funds to a bank and account designated in writing by the receiving Party. The paying Party shall be responsible for all wire transfer fees incurred in connection with its payments to the other Party
under this Agreement. 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 37 

 9.3 Taxes. 

(a) Taxes on Income. Except as set forth in this Section 9.3, each Party shall be solely responsible for the payment of all
taxes imposed on its share of income arising directly or indirectly from the activities of the Parties under this Agreement. 
 (b) Tax
Cooperation. The Parties agree to cooperate with one another and use reasonable efforts to avoid or reduce tax withholding or similar obligations in respect of royalties, Milestone Payments, and other payments made by one Party (the
“Payor”) to the other Party (the “Payee”) under this Agreement. The Parties expect that no withholding taxes will be required as a result of any such payments, but if any relevant Governmental Authority finds that
withholding taxes should be charged, the liability for such taxes shall be the sole responsibility of the Payee. Each Party shall provide the other Party any tax forms that may be reasonably necessary in order for the Payor to not withhold tax or to
withhold tax at a reduced rate under an applicable bilateral income tax treaty. The Payor shall use reasonable efforts to identify any such forms prior to the due date and the Payee shall use reasonable efforts to provide any such tax forms to the
Payor in advance of the due date. Each Party shall provide the other with reasonable assistance to enable the recovery, as permitted by Applicable Laws, of withholding taxes or similar obligations resulting from payments made under this Agreement,
such recovery to be for the benefit of the Payee as the Party bearing such withholding tax under this Section 9.3(b). Notwithstanding the foregoing, if either Party makes an assignment pursuant to Section 16.5 or otherwise transfers its
obligations under this Agreement to another entity and such action results in the imposition of withholding taxes that were not otherwise applicable (“Incremental Withholding Taxes”), then the Party taking such action shall be
solely responsible for the amount of such Incremental Withholding Taxes and the Party taking such action (if the Payor) shall increase the amounts payable to the Payee so that the Payee receives a sum equal to the sum which it would have received
had there been no such action and resulting tax increase. 
 9.4 Records; Audit. VIT shall keep, and shall cause its
Affiliates and Sublicensees to keep, complete and accurate records pertaining to the sale or other disposition of the Product in sufficient detail to permit ChemoCentryx to confirm the accuracy of commercial milestone and royalty payments due
hereunder. ChemoCentryx shall keep, and shall cause its Affiliates to keep, complete and accurate records pertaining to the China Agreement Revenue received by ChemoCentryx in sufficient detail to permit VIT to confirm the accuracy of payments due
under Section 8.5. Such records shall be kept for such period of time required by Applicable Laws, but in no case less than three (3) years following the end of the Calendar Quarter to which they pertain. Each Party shall have the right to
have an independent, certified public accountant reasonably acceptable to the other Party audit such records of the other Party to confirm Net Sales, royalties, and other payments, in the case of VIT as audited Party, and to confirm China Agreement
Revenue, in the case of ChemoCentryx as audited Party, for a period covering not more than three (3) years following the Calendar Quarter to which they pertain. Such audits may be exercised only once for any period and no more than once per
Calendar Year during normal business hours upon reasonable prior written notice to the audited Party. Any such auditor shall not disclose the audited Party’s confidential information to the auditing Party, except to the extent such disclosure
is necessary to verify the accuracy of the financial reports furnished by the audited Party or the amount of payments by the audited Party under this Agreement. Any amounts shown to be owed but unpaid shall be paid within thirty (30) days after
the accountant’s report, plus interest (as set forth in Section 9.5) from the original due date. Any overpayment by the audited Party revealed by an audit shall be credited against future payments owed by the audited Party to the other
Party (and if no further payments are due, shall be refunded by the auditing Party at the request of the audited Party). The auditing Party shall bear the full cost of such audit unless such audit discloses an underpayment by the audited Party of
more than five percent (5%) of the amount of royalties or other payments due under this Agreement for any applicable Calendar Quarter, in which case, the audited Party shall bear the cost of such audit. 

9.5 Late Payments. In the event that any payment due under this Agreement is not paid when due in accordance with the applicable
provisions of this Agreement, the payment shall accrue interest from the date due at the rate that is the lesser of (a) the London Interbank Offered Rate plus 1% or (b) the highest rate permitted

  
 38 

 
under Applicable Law. The payment of such interest shall not limit the Party entitled to receive payment from exercising any other rights it may have as a consequence of the lateness of any
payment. 
  

	10.	INTELLECTUAL PROPERTY 

 10.1 Ownership of
Data. All Data generated in connection with any Development, regulatory, manufacturing or Commercial activities with respect to any Compound or Product conducted by or on behalf of VIT or its Affiliates or Sublicensees (the “VIT
Data”) shall be the sole and exclusive property of VIT or of its Affiliates or Sublicensees, as applicable. All Data generated in connection with any Development, manufacturing or Commercial activities with respect to any Compound or
Product conducted by or on behalf of ChemoCentryx and its Affiliates and, to the extent Controlled by ChemoCentryx, ChemoCentryx Collaborators (the “ChemoCentryx Data”) shall be the sole and exclusive property of ChemoCentryx or its
Affiliates or ChemoCentryx Collaborators, as applicable. 
 10.2 Ownership of Inventions. Ownership of all Inventions
shall be based on inventorship, as determined in accordance with the rules of inventorship under United States patent laws. Each Party shall solely own any Inventions made solely by its or its Affiliates’ employees, agents, or independent
contractors (“Sole Inventions”). The Parties shall jointly own any Inventions that are made jointly by employees, agents, or independent contractors of one Party or its Affiliates together with employees, agents, or independent
contractors of the other Party or its Affiliates (“Joint Inventions”). All Patents claiming Joint Inventions shall be referred to herein as “Joint Patents.” Except to the extent either Party is restricted by the
licenses granted to the other Party under this Agreement, each Party shall be entitled to practice, license, assign, and otherwise exploit the Joint Inventions and Joint Patents without the duty of accounting or seeking consent from the other Party.

 10.3 Disclosure of Inventions. Each Party shall promptly disclose to the other Party all Sole Inventions of such Party and
all Joint Inventions, including any invention disclosures or other similar documents submitted to it by its employees, agents, or independent contractors describing such Inventions, and shall promptly respond to reasonable requests from the other
Party for additional information relating to such Inventions; provided that neither Party will be required to disclose (a) Sole Inventions related to treatment algorithms or patient care programs, (b) Sole Inventions relating to any
compound that is proprietary to such Party, any of its Affiliates or their licensees/Sublicensees or the combination of a Compound with any such proprietary compound, and (c) Sole Inventions resulting from development or commercialization
efforts that are not conducted under this Agreement and do not use the Compound or the Product or any Patents or Know-How of the other Party or its Affiliates, including, without limitation, Sole Inventions
not directly related to the Compound or the Product that has been developed by VIT, any of its Affiliates or any Third Party under independent research programs or agreements (e.g., generic drug delivery Sole Inventions) without use of the
Compound or the Product or any Patents or Know-How of the other Party or its Affiliates. 
 10.4
Product Technology. 
 (a) Notwithstanding the terms of Sections 10.1, 10.2, and 10.3, any Joint Technology or VIT Technology
directly related to the Compound or Product and arising directly from the Development of the Compound or Product under this Agreement that directly relates to (i) a pharmaceutical product with the same or similar chemical composition,
formulation and mode of delivery of the Product, (ii) a pharmaceutical composition comprising the API of the Product, (iii) any amendment, change or improvement to the manufacturing process or specifications for the Product provided by
ChemoCentryx to VIT, (iv) a new medical use of or method of using the Product (other than treatment algorithms or patient care programs), and (v) any combination of the API of the Product that includes at least one additional API other
than the API of the Product (the “Product Technology”)), shall be the exclusive property of ChemoCentryx and the corresponding intellectual property rights shall be owned by ChemoCentryx. 

(b) Product Technology will be included in the ChemoCentryx Technology. VIT hereby assigns all of its and any VIT Affiliates’
right, title and interest in and to the Product Technology to ChemoCentryx, and agrees to take all actions reasonably requested by ChemoCentryx to evidence such assignment. 

  
 39 

 10.5 Patent Prosecution and Maintenance. 

(a) ChemoCentryx Patents and Joint Patents. 

(i) As between the Parties, ChemoCentryx shall have the first right to file, prosecute and maintain all ChemoCentryx Patents
(including Joint Patents) in the Territory and all Joint Patents outside the Territory, at its sole expense. In addition, ChemoCentryx [***]. ChemoCentryx will be responsible for [***] of the costs incurred with respect to the prosecution and
maintenance of the ChemoCentryx Patents (other than Joint Patents) prosecuted and maintained by ChemoCentryx, [***] of the costs incurred with respect to the prosecution and maintenance of the Joint Patents outside the Territory prosecuted and
maintained by ChemoCentryx, and [***] of the costs incurred with respect to the prosecution and maintenance of the Joint Patents prosecuted and maintained by ChemoCentryx in the Territory. VIT shall pay [***] of the prosecution and maintenance costs
incurred by ChemoCentryx for any [***]. For the purpose of this Article 10, “prosecution” shall include any post-grant proceeding including patent interference proceeding, opposition proceeding, and reexamination. 

(ii) ChemoCentryx shall consult with VIT and keep VIT reasonably informed of the status of the ChemoCentryx Patents (including Joint
Patents) in the Territory and Joint Patents outside the Territory and shall promptly provide VIT with all material correspondence received from any patent authority in connection therewith. In addition, ChemoCentryx shall promptly provide VIT with
drafts of all proposed material filings and correspondence to any patent authority with respect to the ChemoCentryx Patents (including Joint Patents) in the Territory and Joint Patents outside the Territory for VIT’s review and comment prior to
the submission of such proposed filings and correspondences. ChemoCentryx shall confer with VIT and consider in good faith VIT’s comments prior to submitting such filings and correspondences, provided that VIT shall provide such comments within
fourteen (14) days (or a shorter period reasonably designated by ChemoCentryx if fourteen (14) days is not practicable given the filing deadline) of receiving the draft filings and correspondences from ChemoCentryx. 

(iii) In the event that ChemoCentryx desires to abandon or cease prosecution or maintenance of any ChemoCentryx Patent (including a
Joint Patent) in the Territory or Joint Patent outside the Territory, ChemoCentryx shall provide reasonable prior written notice to VIT of such intention to abandon (which notice shall, to the extent possible, be given no later than sixty
(60) days prior to the next deadline for any action that must be taken with respect to any such ChemoCentryx Patent in the relevant patent office). If VIT so elects, ChemoCentryx shall permit VIT, at its discretion and at its sole expense, to
continue prosecution or maintenance of such ChemoCentryx Patent (or Joint Patent). If VIT has assumed responsibility for the prosecution or maintenance of any such ChemoCentryx Patent or Joint Patent, it shall no longer be considered a ChemoCentryx
Patent (or Joint Patent) under this Agreement for the purpose of the Royalty Term. 
 (iv) If VIT does not provide such election
within thirty (30) days after such notice from ChemoCentryx, ChemoCentryx may, in its sole discretion, either continue or discontinue prosecution and maintenance of such ChemoCentryx Patent or Joint Patent. 

(v) If in the Territory the equivalent of the “Approved Drug the Product with Therapeutic Equivalence Evaluations” (the
“Orange Book”) permits the listing of any ChemoCentryx Patent (including a Joint Patent), VIT shall ensure that it: (A) maintains correct and complete listings of all applicable ChemoCentryx Patents and Joint Patents in such
listing system in accordance with Applicable Laws and advice of its intellectual property and regulatory counsel and (B) enforces such listings in a timely manner, each as applicable. ChemoCentryx shall provide updated status of the
ChemoCentryx Patents (including Joint Patents) as necessary for VIT to comply with its obligations in this Section 10.5(a)(v). 
  

 

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 (vi) If requested by VIT, ChemoCentryx shall register this Agreement (redacted as may be
permitted) in the national patent office registers for the any ChemoCentryx Patents or Joint Patents covering the marketed Product. 

(vii) With regard to any ChemoCentryx Patent (including a Joint Patent) which falls under the new European Unified Patent System,
ChemoCentryx shall elect the opt-out option unless the Parties agree otherwise, which agreement neither Party will unreasonably withhold. 

(viii) ChemoCentryx shall [***]. 

(b) VIT Patents. 

(i) As between the Parties, VIT shall have the first right to control the preparation, filing, prosecution (including any
interferences, reissue proceedings and reexaminations), and maintenance of all VIT Patents (excluding Joint Patents) worldwide, at its own expense and by counsel of its own choice. VIT shall keep ChemoCentryx reasonably informed of the status of
filing, prosecution, and maintenance of such VIT Patents, and shall consult with, and consider in good faith the requests and suggestions of, ChemoCentryx with respect to strategies for filing and prosecuting such VIT Patents. 

(ii) In the event that VIT desires to abandon or cease prosecution or maintenance of any VIT Patent (excluding Joint Patents), VIT
shall provide reasonable prior written notice to ChemoCentryx of such intention to abandon (which notice shall, to the extent possible, be given no later than sixty (60) days prior to the next deadline for any action that must be taken with
respect to any such VIT Patent in the relevant patent office). If ChemoCentryx so elects, VIT shall permit ChemoCentryx, at its discretion and at its sole expense, to continue prosecution or maintenance of such VIT Patent. 

10.6 Cooperation of the Parties. Each Party agrees to cooperate fully in the preparation, filing, prosecution, and
maintenance of Patents under Section 10.5 and in the obtaining and maintenance of any patent term extensions, supplementary protection certificates, pediatric extensions, and their equivalent with respect thereto, at its own cost (except as
expressly set forth otherwise in this Article 10). Such cooperation includes: (a) executing all papers and instruments, or requiring its employees or contractors, to execute such papers and instruments, so as enable the other Party to apply for
and to prosecute patent applications in any country as permitted by Section 10.5; and (b) promptly informing the other Party of any matters coming to such Party’s attention that may affect the preparation, filing, prosecution, or
maintenance of any such patent applications, The Parties shall also cooperate fully in defining the best strategy to optimize patent term extensions and supplementary protection certificates, provided that ChemoCentryx shall have the right to make
final decisions with respect to patent term extensions and supplementary protection certificates for ChemoCentryx Patents (unless VIT has assumed responsibility for any such Patent under Section 10.5(a)(iii)), and VIT shall have the right to make
final decisions with respect to patent term extensions and supplementary protection certificates for VIT Patents (unless ChemoCentryx has assumed responsibility for any such Patent under Section 10.5(b)(ii)). 

10.7 Infringement by Third Parties. 

(a) Notice. In the event that either Party becomes aware of any infringement or threatened infringement by a Third Party of any
ChemoCentryx Patent, VIT Patent, or Joint Patent, or any declaratory judgment or equivalent action challenging any ChemoCentryx Patent, VIT Patent, or Joint Patent in connection with any such infringement, it will notify the other Party in writing
to that effect. Any such notice shall include evidence to support an allegation of infringement or threatened infringement, or declaratory judgment or equivalent action, by such Third Party. The Parties will also cooperate to implement a consistent
global Patent enforcement strategy. 
  

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 (b) ChemoCentryx Patents and Joint Patents. 

(i) As between the Parties, ChemoCentryx will have the first right, but no obligation, to bring and control any action or proceeding
with respect to infringement or challenge of any ChemoCentryx Patent (including any Joint Patent) in the Territory or any Joint Patent outside the Territory, at its own expense, including the filing of an infringement suit using counsel of its own
choice. VIT shall have the right, at its own expense, to be represented in any such action by counsel of its own choice, and ChemoCentryx and its counsel will reasonably cooperate with VIT and its counsel in strategizing, preparing, and litigating
any such action or proceeding. If ChemoCentryx fails to resolve such Third Party activity or to initiate a suit with respect thereto within seventy-five (75) days after the notice under Section 10.7(a), or such shorter period as necessary to
preserve any rights to enforce the applicable Patents (including the right to obtain an interim injunction in the case of an imminent Generic Product threat), VIT will have the right, but not the obligation, to attempt to resolve such Third Party
infringement or challenge of any ChemoCentryx Patent (including any Joint Patent) in the Territory at its discretion and at its own expense, but, in the case of ChemoCentryx Patents (other than Joint Patents), only if such infringement or challenge
involves a Third Party’s Product, including the filing of an infringement suit using counsel of its own choice. ChemoCentryx shall have the right, at its own expense, to be represented in any such action or proceeding initiated by VIT by
counsel of its own choice. 
 (ii) Except as otherwise agreed by the Parties as part of a cost-sharing arrangement, any recovery or
damages realized as a result of such action or proceeding with respect to ChemoCentryx Patents or Joint Patents (whether brought by ChemoCentryx or by VIT) shall be used first to reimburse the Parties’ reasonable and documented out-of-pocket legal expenses relating to the action or proceeding, and all remaining compensatory damages relating to the Product (including lost sales or lost profits with
respect to the Product) shall be deemed Net Sales and paid to VIT, less an amount equal to royalty payments to ChemoCentryx on such deemed Net Sales in accordance with the royalty provisions of Section 8.4, which amount shall be paid to
ChemoCentryx, and any punitive damages shall be shared equally by the Parties. 
 (c) VIT Patents. 

(i) As between the Parties, VIT shall have the sole right, but not the obligation, to bring and control any action or proceeding with
respect to infringement or challenge of any VIT Patent (other than a Joint Patent) in the Territory, at its own expense and by counsel of its own choice. Any recovery or damages realized as a result of such action or proceeding by VIT with respect
to such VIT Patents in the Territory shall be used first to reimburse VIT’s reasonable and documented out-of-pocket legal expenses relating to the action or
proceeding, and any remaining compensatory damages relating to the Product (including lost sales or lost profits with respect to the Product) shall be retained by VIT, and any punitive damages shall be retained by VIT. 

(ii) As between the Parties, VIT shall have the first right, but no obligation, to bring and control any action or proceeding with
respect to infringement or challenge of any VIT Patent (other than a Joint Patent) outside the Territory, at its own expense, including the filing of an infringement suit using counsel of its own choice. ChemoCentryx shall have the right, at its own
expense, to be represented in any such action by counsel of its own choice, and VIT and its counsel will reasonably cooperate with ChemoCentryx and its counsel in strategizing, preparing, and litigating any such action or proceeding. If VIT fails to
resolve such Third Party activity or to initiate a suit with respect thereto within seventy-five (75) days after the notice under Section 10.7(a), or such shorter period as necessary to preserve any rights to enforce the applicable Patents
(including the right to obtain an injunction), ChemoCentryx will have the right, but not the obligation, to attempt to resolve such Third Party activity (but only if it involves infringement by a Third Party’s Product) by commercially
appropriate steps at its own expense, including the filing of an infringement suit using counsel of its own choice. VIT shall have the right, at its own expense, to be represented in any such action or proceeding initiated by ChemoCentryx by counsel
of its own choice. 
 (iii) Except as otherwise agreed by the Parties as part of a cost-sharing arrangement, any recovery or damages
realized as a result of such action or proceeding with respect to VIT Patents (other than Joint Patents) 

  
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outside the Territory shall be used first to reimburse the Parties’ reasonable and documented out-of-pocket
legal expenses relating to the action or proceeding, and any remaining compensatory damages relating to the Product (including lost sales or lost profits with respect to the Product) shall be retained by the Party that brought and controlled such
action or proceeding, and any punitive damages shall be equally shared by the Parties. 
 (d) Cooperation. In the event that a
Party brings an action in accordance with this Section 10.7, the other Party shall cooperate fully, including, if required to bring such action, the furnishing of a power of attorney or being named as a party to such action, and shall provide
full access to documents, information and witnesses as reasonably requested by the Party bringing the action in connection with such action. The Party bringing the action will reimburse all Third Party costs incurred by the other Party in connection
with such requested cooperation. Because ChemoCentryx owns the ChemoCentryx Patents, its assistance will be particularly important if VIT is required to enforce any ChemoCentryx Patents against a Third Party. 

10.8 Infringement of Third Party Rights. Each Party shall promptly notify the other in writing of any allegation by a
Third Party that the Commercialization, manufacture, or Development of the Product infringes or may infringe any Patent or other right of by a Third Party. If a Third Party asserts that any of its Patents or other rights are infringed by the
manufacture, Commercialization or Development by VIT or its Affiliates or Sublicensees of the Product in the Territory, VIT shall have the right but not the obligation to defend against any such assertions. In the event that VIT elects not to defend
against such Third Party claims within one hundred twenty (120) days of learning of same, ChemoCentryx shall have the right, but not the obligation, to defend against such an action. In any event, the other Party shall cooperate fully and shall
provide full access to documents, information and witnesses as reasonably requested by the Party defending such action. The Party defending the action will reimburse all Third Party costs incurred in connection with such requested cooperation.
Because ChemoCentryx has developed the Compound and Product, its assistance will be particularly important if a Third Party alleges that VIT is infringing a Patent or other right of such Third Party. 

10.9 Consent for Settlement. Neither Party shall unilaterally enter into any settlement or compromise of any action or
proceeding under this Article 10 that would in any manner alter, diminish, or be in derogation of the other Party’s rights under this Agreement without the prior written consent of such other Party, which shall not be unreasonably
withheld. 
 10.10 ChemoCentryx Controlled Patents Outside the Territory. For clarity, ChemoCentryx reserves all rights to prepare,
file, prosecute (including any interferences, reissue proceedings, and reexaminations), maintain, defend, and enforce all ChemoCentryx Patents outside the Territory (other than Joint Patents). 

10.11 ChemoCentryx Trademarks. All packaging, promotional materials, package inserts, and labeling for the Product in the
Field in the Territory shall bear one or more house Trademarks chosen and owned by ChemoCentryx, including the ChemoCentryx name and logo set forth in an exhibit to the Letter Agreement (each, a “ChemoCentryx Trademark”).
ChemoCentryx or its Affiliates shall own all right, title, and interest in and to all ChemoCentryx Trademarks, all corresponding trademark applications and registrations thereof, and all common law rights thereto. ChemoCentryx shall have sole
control over the registration, prosecution, maintenance, enforcement and defense of the ChemoCentryx Trademarks. All goodwill of the business associated with or symbolized by the ChemoCentryx Trademarks shall inure to the benefit of ChemoCentryx.
VIT acknowledges ChemoCentryx’s exclusive ownership of the ChemoCentryx Trademarks and agrees not to take any action inconsistent with such ownership. VIT shall provide ChemoCentryx with samples in English of any core advertising and
promotional materials that incorporate the ChemoCentryx Trademarks, and samples of local adaptations of such core materials in the Major Market Countries, for informational purposes only, prior to distributing such materials for use, but will not be
required to provide samples of local adaptations of any such materials outside the Major Market Countries, provided that VIT shall ensure that all local adaptations and translations are consistent with the core materials to the extent permitted
under Applicable Laws. VIT shall comply with reasonable policies provided by ChemoCentryx from time to time to maintain the goodwill and value of the ChemoCentryx Trademarks. VIT shall not, and shall cause its Affiliates not to, (i) use, seek
to 

  
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register, or otherwise claim rights in any Trademark that is confusingly similar to, misleading or deceptive with respect to, or that materially dilutes, any of the ChemoCentryx Trademarks, or
(ii) knowingly do, cause to be done, or knowingly omit to do any act, the doing, causing or omitting of which endangers, undermines, impairs, destroys or similarly affects, in any material respect, the validity or strength of any of the
ChemoCentryx Trademarks (including any registration or pending registration application relating thereto) or the value of the goodwill pertaining to any of the ChemoCentryx Trademarks. 

10.12 Product Trademarks. 

(a) Global Trademarks. It is the Parties’ intent to maintain consistent global branding for the Product to the extent permitted by
Applicable Laws. To the extent such consistent global branding is permitted under Applicable Laws, ChemoCentryx shall own all Trademarks related to the Product and associated domain names (collectively, the “Global Trademark”).
Subject to consultation with VIT through the JCC, ChemoCentryx shall be responsible for selecting, registering, prosecuting, and maintaining the Global Trademark worldwide at its sole cost and expense. ChemoCentryx shall also select two back-up Global Trademarks in the Territory. ChemoCentryx or its Affiliates shall own all right, title, and interest in and to all Global Trademarks, all corresponding trademark applications and registrations
thereof, and all common law rights thereto. All goodwill of the business associated with or symbolized by the Global Trademarks shall inure to the benefit of ChemoCentryx. VIT acknowledges ChemoCentryx exclusive ownership of the Global Trademarks
and agrees not to take any action inconsistent with such ownership. ChemoCentryx will be responsible for any guidelines applicable to the use of Global Trademarks. 

(b) Local Trademarks. If any Global Trademark is not available for use and registration in connection with the Product in the Territory
due to a rejection by a Governmental Authority, actual or threatened opposition, cancellation or litigation as to use and/or registration by a Third Party, or a determination by the JSC that use of the Global Trademark is likely to cause confusion
with another’s Trademark, VIT shall have the right to select and use an alternate Trademark (and associated domain names), such selection subject to ChemoCentryx’s prior written consent, which shall not be unreasonably withheld or delayed,
and shall develop, search, file, register, maintain, defend and enforce such alternate Trademark (and associated domain names) at VIT’s sole expense (each, a “Local Trademark”). The Parties may decide together at a later stage
to abandon Local Trademarks in certain countries if such Trademarks are no longer required. 
 (c) Use of Global
Trademarks. To the extent that a Global Trademark is permitted under Applicable Laws, VIT shall promote, market, sell, offer for sale, import, distribute and otherwise commercialize the Product in the Field in the Territory only under the
Global Trademarks. VIT shall provide ChemoCentryx with samples of any core advertising and promotional materials that incorporate the Global Trademarks in English, and samples of local adaptations of such core materials in the Major Market
Countries, for informational purposes only, prior to distributing such materials for use, but will not be required to provide samples of local adaptations of any such materials outside the Major Market Countries, provided that VIT shall ensure that
all local adaptations and translations are consistent with the core materials to the extent permitted under Applicable Laws. VIT shall comply with reasonable policies provided by ChemoCentryx from time to time to maintain the goodwill and value of
the Global Trademarks. VIT shall not, and shall cause its Affiliates not to, (i) use, seek to register, or otherwise claim rights in the Territory in any Trademark that is confusingly similar to, misleading or deceptive with respect to, or that
materially dilutes, any of the Global Trademarks, or (ii) knowingly do, cause to be done, or knowingly omit to do any act, the doing, causing or omitting of which endangers, undermines, impairs, destroys or similarly affects, in any material
respect, the validity or strength of any of the Global Trademarks (including any registration or pending registration application relating thereto) or the value of the goodwill pertaining to any of the Global Trademarks. 

(d) Enforcement of Trademarks. ChemoCentryx shall have the first right, but not the obligation, at ChemoCentryx’s expense,
to enforce and defend the Global Trademarks in the Territory, including (i) defending against any alleged, threatened or actual claim by a Third Party that the use of the Global Trademark in the

  
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Territory infringes, dilutes or misappropriates any Trademark of that Third Party or constitutes unfair trade practices, or any other claims that may be brought by a Third Party against a Party
in connection with the use of or relating to the Global Trademarks in the Territory with respect to the Product and (ii) taking such action as ChemoCentryx deems necessary against a Third Party based on any alleged, threatened or actual
infringement, dilution or misappropriation of, or unfair trade practices or any other like offense relating to, the Global Trademarks in the Territory by a Third Party. If ChemoCentryx elects not to enforce or defend the Global Trademarks in any
such instance, then ChemoCentryx shall promptly so notify VIT and VIT shall have the right, but not the obligation, to do so at VIT’s sole expense. Each Party shall provide to the other Party all reasonable assistance requested by such first
Party in connection with any such action, claim or suit under this Section 10.12(d), including allowing such first Party access to such other Party’s documents and to such other Party’s personnel who may have possession of relevant
information. 
 10.13 Trademark Licenses. 

(a) Global Trademarks. Subject to the terms and conditions of this Agreement, ChemoCentryx hereby grants to VIT an exclusive,
royalty-free, limited license under the Global Trademarks solely to promote, market, sell, offer for sale, import and distribute the Product in Field in the Territory in accordance with the terms of this Agreement. 

(b) ChemoCentryx Trademarks. Subject to the terms and conditions of this Agreement, ChemoCentryx hereby grants to VIT a non-exclusive, royalty-free, limited license under the ChemoCentryx Trademarks solely to promote, market, sell, offer for sale, import and distribute the Product in Field in the Territory in accordance with the
terms of this Agreement. 
  

	11.	REPRESENTATIONS AND WARRANTIES 

 11.1
Mutual Representations and Warranties. Each Party represents and warrants to the other that, as of the Effective Date: (a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation or
formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof, (b) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and
the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate or partnership action, (c) this Agreement is legally binding upon it, enforceable in accordance with its terms, and does
not conflict with any agreement, instrument or understanding, oral or written, to which it is a Party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having
jurisdiction over it, and (d) it has the right to grant the licenses granted by it under this Agreement. 
 11.2 Mutual
Covenants. 
 (a) Employees, Consultants and Contractors. Each Party covenants that it has obtained or will obtain written
agreements from each of its employees, consultants and contractors who perform Development activities pursuant to this Agreement, which agreements will obligate such persons to obligations of confidentiality and
non-use and to assign Inventions in a manner consistent with the provisions of this Agreement. 

(b) Debarment. Each Party represents, warrants and covenants to the other Party that it is not debarred or disqualified under the U.S.
Federal Food, Drug and Cosmetic Act, as may be amended, or comparable laws in any country or jurisdiction other than the U.S., and it does not, and will not during the Term, employ or use the services of any person who is debarred or disqualified,
in connection with activities relating to any Compound or Product. In the event that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing services to such Party,
including the Party itself or its Affiliates or ChemoCentryx Collaborators or Sublicensees, that directly or indirectly relate to activities contemplated by this Agreement, such Party shall immediately notify the other Party in writing and such
Party shall cease employing, contracting with, or retaining any such person to perform any such services. 

  
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 (c) Compliance. Each Party covenants as follows: 

(i) In the performance of its obligations under this Agreement, such Party shall comply and shall cause its and its Affiliates’
employees and contractors to comply with all Applicable Laws, rules and regulations. 
 (ii) Such Party and its and its
Affiliates’ employees and contractors shall not, in connection with the performance of their respective obligations under this Agreement, directly or indirectly through Third Parties, pay, promise or offer to pay, or authorize the payment of,
any money or give any promise or offer to give, or authorize the giving of anything of value to a public official or entity or other person for purpose of obtaining or retaining business for or with, or directing business to, any person, including,
without limitation, either Party (and each Party represents and warrants that as of the Effective Date, such Party, and to its Knowledge, its and its Affiliates’ employees and contractors, have not directly or indirectly promised, offered or
provided any corrupt payment, gratuity, emolument, bribe, kickback, illicit gift or hospitality or other illegal or unethical benefit to a public official or entity or any other person in connection with the performance of such Party’s
obligations under this Agreement, and each Party covenants that it and its Affiliates’ employees and contractors shall not, directly or indirectly, engage in any of the foregoing). 

(iii) Such Party and its Affiliates, and their respective employees and contractors, in connection with the performance of their
respective obligations under this Agreement, shall not cause such other Party’s Indemnitees to be in violation of the FCPA, Export Control Laws, or any other Applicable Laws, rules or regulations or otherwise cause any reputational harm to such
other Party. 
 (iv) Such Party shall promptly notify the other Party if such Party has any information or suspicion that there may
be a violation of the FCPA, Export Control Laws, or any other Applicable Laws, rules or regulations in connection with the performance of this Agreement or the Development, manufacture or Commercialization of the Product. 

(v) In connection with the performance of its obligations under this Agreement, such Party shall comply and shall cause its and its
Affiliates’ employees and contractors to comply with such Party’s own anti-corruption and anti-bribery policy, a copy of which will be provided to the other Party upon request. 

(vi) The other Party will have the right, upon reasonable prior written notice and during such Party’s regular business hours, to
audit such Party’s books and records in the event that a suspected violation of any of the representations, warranties or covenants in this Section 11.2(c) needs to be investigated. 

(vii) In the event that such Party has violated or has been suspected of violating any of the representations, warranties or covenants
in this Section 11.2(c), such Party will cause its or its Affiliates’ personnel or others working under its direction or control to submit to periodic training that such Party will provide on anti-corruption law compliance. 

(viii) Such Party will, at the other Party’s request, annually certify to such other Party in writing such Party’s
compliance, in connection with the performance of such Party’s obligations under this Agreement, with the representations, warranties or covenants in Section 11.2(c). 

(ix) Each Party shall have the right to suspend or terminate this Agreement in its entirety if there is a credible finding of a
Governmental Authority, after a reasonable investigation, that the other Party, in connection with its performance under this Agreement, has violated the FCPA. 

11.3 Additional ChemoCentryx Representations, Warranties and Covenants. ChemoCentryx represents, warrants and covenants, as applicable,
to VIT that, as of the Effective Date: 
 (a) The Letter Agreement lists all Patents Controlled by ChemoCentryx or any of its
Affiliates in the Territory as of the Effective Date that claim the composition of matter, method of manufacture or method of use of the Product and the Compound; 

  
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 (b) All of the Patents listed in the Letter Agreement that are issued Patents are in full
force and effect, and all applicable filing, maintenance and other fees required to be paid to a patent office with respect to the Patents listed in the Letter Agreement have been timely paid; 

(c) ChemoCentryx has not received any written notice from a Third Party that the Development of any Compound or Product conducted by
ChemoCentryx prior to the Effective Date has infringed, or that any Development or Commercialization of any Compound or Product will infringe, any Patents of any Third Party; 

(d) except as provided in Section 2.4(b), ChemoCentryx has not as of the Effective Date granted any right to any Third Party under the
ChemoCentryx Technology that would conflict with the rights granted to VIT hereunder; 
 (e) to ChemoCentryx’s Knowledge, no
claim or action has been brought or threatened by any Third Party alleging that the ChemoCentryx Patents are invalid or unenforceable, and no ChemoCentryx Patent is the subject of any litigation, interference, post-grant review, opposition,
cancellation or other proceeding challenging the validity or enforceability of the ChemoCentryx Patents; 
 (f) to
ChemoCentryx’s Knowledge, the Development, Commercialization, and manufacture of the Compound in the Field in the Territory does not infringe any issued Patents of any Third Party; 

(g) to ChemoCentryx’s Knowledge, no Third Party is infringing or misappropriating, or has infringed or misappropriated, the
ChemoCentryx Technology in the Territory; 
 (h) to ChemoCentryx’s Knowledge, no Third Party has brought an action or proceeding
challenging the inventorship or ownership of the ChemoCentryx Patents; 
 (i) to ChemoCentryx’s Knowledge, all Patent priority
rights have been properly claimed by ChemoCentryx with respect to the ChemoCentryx Patents, and all ChemoCentryx Patents have been assigned to ChemoCentryx; 

(j) ChemoCentryx exclusively owns the ChemoCentryx Patents, free and clear of any liens, mortgages, security interests or other similar
encumbrances; 
 (k) except as provided in Section 2.4(b), ChemoCentryx will not, during the Term, grant any right to any Third Party
under the ChemoCentryx Technology (including the Joint Technology) that would interfere with the rights granted hereunder. 
 For purposes
of Section 11.3(f), patent applications will be presumed to have been issued as patents with the published claims. 
 11.4 Additional VIT
Representations, Warranties and Covenants. VIT represents, warrants and covenants to ChemoCentryx that, as of the Effective Date, VIT has not granted, and will not grant during the Term, any right to any Third Party under the VIT Technology that
would conflict with the rights granted to ChemoCentryx hereunder. 
 11.5 Disclaimer. Except as expressly set forth in
this Agreement, THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS PROVIDED BY EACH PARTY HEREUNDER ARE PROVIDED “AS IS” AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF
DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO. Without limiting the
foregoing, (a) neither Party represents or warrants that any data obtained from conducting clinical trials in one country or jurisdiction will comply with the laws and regulations of any other country or jurisdiction, and (b) neither Party
represents or warrants the success of any study or test conducted by it pursuant to this Agreement or the safety or usefulness for any purpose of the technology it provides hereunder. 

  
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	12.	INDEMNIFICATION 

 12.1 Indemnification by ChemoCentryx.
ChemoCentryx hereby agrees to defend, indemnify and hold harmless VIT, VIT’s Affiliates and any Sublicensees and their respective directors, officers, employees and agents (each, an “VIT Indemnitee”) from and against any and
all liabilities, expenses and losses, including reasonable legal expenses and attorneys’ fees (“Losses”), to which any VIT Indemnitee may become subject as a result of any alleged claim, claim, demand, action or other
proceeding by any Third Party to the extent such Losses arise out of: (a) the Development, use, handling, storage, sale or other disposition of any Compound or Product by ChemoCentryx or its Affiliates or ChemoCentryx Collaborators,
(b) the negligence or willful misconduct of any ChemoCentryx Indemnitee, or (c) the breach by ChemoCentryx of any warranty, representation, covenant or agreement made by ChemoCentryx in this Agreement; except, in each case (a)–(c), to
the extent such Losses arise out of the negligence or willful misconduct of any VIT Indemnitee or the breach by VIT of any warranty, representation, covenant or agreement made by VIT in this Agreement or the Supply Agreement. 

12.2 Indemnification by VIT. VIT hereby agrees to defend, indemnify and hold harmless ChemoCentryx, its Affiliates and the ChemoCentryx
Collaborators and their respective directors, officers, employees and agents (each, a “ChemoCentryx Indemnitee”) from and against any and all Losses to which any ChemoCentryx Indemnitee may become subject as a result of any alleged
claim, claim, demand, action or other proceeding by any Third Party to the extent such Losses arise out of: (a) the Development, use, handling, storage, sale or other disposition of any Compound or Product by VIT or its Affiliates or
Sublicensees, (b) the negligence or willful misconduct of any VIT Indemnitee, or (c) the breach by VIT of any warranty, representation, covenant or agreement made by VIT in this Agreement; except, in each case (a)–(c), to the extent
such Losses arise out of the negligence or willful misconduct of any ChemoCentryx Indemnitee or the breach by ChemoCentryx of any warranty, representation, covenant or agreement made by ChemoCentryx in this Agreement or the Supply Agreement. 

12.3 Procedure. A party that intends to claim indemnification under this Article 12 (the “Indemnitee”)
shall promptly notify the indemnifying Party (the “Indemnitor”) in writing of any Third Party claim, demand, action or other proceeding (each, a “Claim”) in respect of which the Indemnitee intends to claim such
indemnification, and the Indemnitor shall have sole control of the defense or settlement thereof. The Indemnitee may participate at its expense in the Indemnitor’s defense of and settlement negotiations for any Claim with counsel of the
Indemnitee’s own selection. The indemnity arrangement in this Article 12 shall not apply to amounts paid in settlement of any action with respect to a Claim, if such settlement is effected without the consent of the Indemnitor, which
consent shall not be withheld or delayed unreasonably. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any action with respect to a Third Party Claim shall only relieve the Indemnitor of its
indemnification obligations under this Article 12 if and to the extent the Indemnitor is actually prejudiced thereby. The Indemnitee shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any action with
respect to a Claim covered by this indemnification. 
 12.4 Insurance. Each Party, at its own expense, shall maintain product
liability and other appropriate insurance (or self-insure) in an amount consistent with sound business practice and reasonable in light of its obligations under this Agreement during the Term. Each Party shall provide a certificate of insurance (or
evidence of self-insurance) evidencing such coverage to the other Party upon request. 
  

	13.	CONFIDENTIALITY 

 13.1 Confidential Information. Except to
the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, the Parties agree that, during the Term and for ten (10) years thereafter, the receiving Party shall keep confidential and shall not publish or
otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement any Confidential Information of the other Party 

  
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under to this Agreement, and both Parties shall keep confidential and, subject to Sections 13.2 and 13.3 and 13.5, shall not publish or otherwise disclose the terms of this Agreement. Each
Party may use the other Party’s Confidential Information only to the extent required to accomplish the purposes of this Agreement, including exercising its rights or performing its obligations. Each Party will use at least the same standard of
care as it uses to protect proprietary or confidential information of its own (but no less than reasonable care) to ensure that its employees, agents, consultants, contractors and other representatives do not disclose or make any unauthorized use of
the Confidential Information of the other Party. Each Party will promptly notify the other upon discovery of any unauthorized use or disclosure of the Confidential Information of the other Party. 

13.2 Exceptions. The obligations of confidentiality and restriction on use under Section 13.1 will not apply to any
information that the receiving Party can prove by competent written evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the receiving Party, generally known or available to the public; (b) is known
by the receiving Party at the time of receiving such information, other than by previous disclosure of the disclosing Party, or its Affiliates, employees, agents, consultants, or contractors; (c) is hereafter furnished to the receiving Party
without restriction by a Third Party who has no obligation of confidentiality or limitations on use with respect thereto, as a matter of right; or (d) is independently discovered or developed by the receiving Party without the use of
Confidential Information belonging to the disclosing Party. 
 13.3 Authorized Disclosure. Each Party may disclose
Confidential Information belonging to the other Party as expressly permitted by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances: 

(a) filing, prosecuting, or maintaining Patents as permitted by this Agreement; 

(b) regulatory filings for the Product that such Party has a license or right to Develop hereunder in a given country or jurisdiction;

 (c) prosecuting or defending litigation as permitted by this Agreement; 

(d) complying with applicable court orders or governmental regulations; and 

(e) disclosure to its and its Affiliates’ employees, consultants, contractors and agents, to ChemoCentryx Collaborators (in the
case of ChemoCentryx) and to Sublicensees (in the case of VIT), in each case on a need-to-know basis in connection with the Development, manufacture and
Commercialization of Compounds and the Product in accordance with the terms of this Agreement and the Supply Agreement, in each case under written obligations of confidentiality and non-use at least as
stringent as those herein; and 
 (f) disclosure to potential and actual investors, acquirors, licensees and other financial or
commercial partners solely for the purpose of evaluating or carrying out an actual or potential investment, acquisition or collaboration, in each case under written obligations of confidentiality and non-use
at least as stringent as those herein. 
 Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s
Confidential Information pursuant to Section 13.3(c) or (d), it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use efforts to secure confidential treatment of such Confidential
Information at least as diligent as such Party would use to protect its own confidential information, but in no event less than reasonable efforts. In any event, the Parties agree to take all reasonable action to avoid disclosure of Confidential
Information hereunder. Any information disclosed pursuant to Section 13.3(c) or (d) shall remain Confidential Information and subject to the restrictions set forth in this Agreement, including the foregoing provisions of this Article 13. 

13.4 Publications. Each Party shall have the right to review and comment on any material proposed for disclosure or
publication by the other Party regarding results of and other information regarding the other Party’s 

  
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Development activities with respect to the Product, whether by oral presentation, poster, manuscript or abstract. Before any such material is submitted for publication or presentation of any such
material is made, each Party shall deliver a complete copy to the other Party at least thirty (30) days prior to submitting the material to a publisher, in the case of manuscripts, and seven (7) days prior to submission or other
disclosure, in the case of oral presentations, posters and abstracts. Each Party shall review any such material and give its comments to the other Party within the applicable review period (i.e., thirty (30) or seven (7) days of
receipt of the material, as applicable). Each Party shall comply with the other Party’s request to delete references to its Confidential Information in any such material and agrees to delay any submission for publication or other public
disclosure for a period of up to an additional thirty (30) days for the purpose of preparing and filing appropriate patent applications. 

13.5 Publicity; Public Disclosures. The Parties agree to issue a joint press release substantially in a form agreed by the
Parties prior to the Effective Date, on or as promptly as practicable following, the Effective Date. It is understood that each Party may desire or be required to issue subsequent press releases relating to this Agreement or activities hereunder.
The Parties agree to consult with each other reasonably and in good faith with respect to the text and timing of such press releases prior to the issuance thereof, to the extent practicable, provided that a Party may not unreasonably withhold,
condition or delay consent to such releases, and that either Party may issue such press releases or make such disclosures to the SEC or other applicable agency as it determines, based on advice of counsel, are reasonably necessary to comply with
laws or regulations or for appropriate market disclosure. Each Party shall provide the other Party with advance notice of legally required disclosures to the extent practicable. The Parties will consult with each other on the provisions of this
Agreement to be redacted in any filings made by a Party with the SEC or as otherwise required by Applicable Laws; provided that each Party shall have the right to make any such filing as it reasonably determines necessary under Applicable Laws. In
addition, following the initial joint press release announcing this Agreement, either Party shall be free to disclose, without the other Party’s prior written consent, the existence of this Agreement, the identity of the other Party and those
terms of the Agreement that have already been publicly disclosed in accordance herewith. 
 13.6 Prior Confidentiality Agreement. As
of the Effective Date, the terms of this Article 13 shall supersede any prior non-disclosure, secrecy or confidentiality agreement between the Parties (or their Affiliates) relating to the subject of this
Agreement, including the Confidentiality Agreement. Any information disclosed pursuant to any such prior agreement that relates to the Compound or Product or the transaction under this Agreement shall be deemed Confidential Information for purposes
of this Agreement. 
 13.7 Equitable Relief. Given the nature of the Confidential Information and the competitive
damage that a Party would suffer upon unauthorized disclosure, use or transfer of its Confidential Information to any Third Party, the Parties agree that monetary damages may not be a sufficient remedy for any breach of this Article 13. In addition
to all other remedies, a Party shall be entitled to seek specific performance and injunctive and other equitable relief as a remedy for any breach or threatened breach of this Article 13. 

 

	14.	TERM AND TERMINATION 

 14.1
Term. This Agreement shall commence on the Effective Date and, unless terminated earlier as provided in this Article 14 or by mutual written agreement of the Parties, shall continue until the expiration of the last Royalty Term in
the Territory (the “Term”). 
 14.2 Termination by Mutual Agreement. The Parties may terminate this Agreement by
mutual written agreement if the Parties determine mutually and in good faith that continued Development or Commercialization of the Product in the Territory would not be in the best interest of patient welfare, based on the evaluation of safety
issues and recommendations of a Regulatory Authority or independent data monitoring committee. 

  
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 14.3 Termination for Cause. 

(a) Material Breach. Each Party shall have the right to terminate this Agreement in its entirety upon written notice to the
other Party if such other Party materially breaches this Agreement and has not cured such breach within sixty (60) days (thirty (30) days with respect to any payment breach) after notice of such breach from the non-breaching Party; provided, however, that if any breach (other than a payment breach) is not reasonably curable within sixty (60) days and if the breaching Party has provided a cure plan reasonably
acceptable to the other Party during such sixty (60)-day period and is making a bona fide effort to cure such breach by diligently implementing such plan, such cure period will be extended for a time period to
be agreed by both Parties (but in no event more than an additional sixty (60) days) in order to permit the breaching Party a reasonable period of time to cure such breach in accordance with such plan. In the event of a material breach by VIT
that results primarily and originally from a breach by a Sublicensee of its sublicense agreement, if the Sublicensee fails to cure the breach within the above cure period, ChemoCentryx shall not have the right to terminate this Agreement if VIT
terminates such sublicense agreement by providing written notice of termination prior to the end of such cure period and such sublicense agreement actually terminates. 

(b) Bankruptcy. Each Party shall have the right to terminate this Agreement in its entirety upon written notice to the other
Party if such other Party makes a general assignment for the benefit of creditors, files an insolvency petition in bankruptcy, 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, commences under the laws of any jurisdiction any proceeding involving its insolvency, bankruptcy, reorganization, adjustment of debt, dissolution, liquidation or any other similar proceeding for the
release of financially distressed debtors or becomes a party to any proceeding or action of the type described above and such proceeding is not dismissed within sixty (60) days after the commencement thereof. 

14.4 Termination for Patent Challenge. ChemoCentryx shall have the right to terminate this Agreement in its entirety upon
written notice to VIT if VIT or any of its Affiliates or Sublicensees directly, or indirectly through any Third Party, commences any interference or opposition proceeding with respect to, challenges the validity or enforceability of, or opposes any
extension of or the grant of a supplementary protection certificate with respect to, any ChemoCentryx Patent; provided, however, ChemoCentryx shall not have a right to terminate if the challenge is brought by a Sublicensee, either directly or
indirectly through any Third Party, and VIT or the Affiliate, as the case may be, terminates such Sublicensee’s sublicense rights hereunder within thirty (30) days after becoming aware of such challenge. ChemoCentryx will not have the
foregoing right to terminate this Agreement if ChemoCentryx or its Affiliates or sublicensees, either directly or indirectly through a Third Party, commence any action or proceeding alleging that VIT, its Affiliates or Sublicensees infringe any
ChemoCentryx Patents and such challenge is instituted as a counterclaim to such action. 
 14.5 Termination by VIT at Will.
VIT shall have the right to terminate this Agreement for any reason or for no reason upon one hundred eighty (180) days’ written notice to ChemoCentryx, such termination to be effective no earlier than the second anniversary of the
Effective Date. 
 14.6 Effects of Expiration. 

(a) Licenses. Upon expiration (but not termination) of this Agreement, VIT’s licenses under Section 2.1 (but not
Section 10.13(a)) will become non-exclusive, sublicenseable, perpetual, fully paid-up, and royalty-free). 

(b) Global Trademarks. Upon expiration (but not termination) of this Agreement, if VIT is then using a Global Trademark, the exclusive
license under Section 10.13(a) will remain in effect but will become royalty-bearing, and VIT shall pay ChemoCentryx a royalty of [***] of annual Net Sales of the Product in the Territory 

 

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in consideration for the exclusive use of the Global Trademark in the Territory. The Parties will promptly after the effective date of expiration enter into a trademark license agreement
providing for such license and the payment terms thereof. 
 (c) Supply. In the event that ChemoCentryx is supplying Bulk Drug
Product or API to VIT upon expiration (but not termination) of this Agreement, then, to ensure continuity of supply, ChemoCentryx shall continue to supply VIT under the terms of the Supply Agreement until such time that (i) VIT has established
itself or a CMO as a separate supplier, or (ii) the Parties have agreed to terms for ChemoCentryx’s continued supply of API or Bulk Drug Product to VIT after the expiration of this Agreement, which terms shall apply from the date of
expiration, but in any event shall not be obligated to supply Product for more than six (6) months after the date of expiration. 

14.7 Effects of Termination. Upon any termination of this Agreement by either Party pursuant to Section 14.3, 14.4 or 14.5,
or by the Parties pursuant to Section 14.2, the following will apply: 
 (a) Termination of Licenses and Other Rights. All
licenses granted to VIT will automatically terminate, and all other rights and obligations of the Parties under this Agreement will terminate on the effective date of termination; provided that if this Agreement is terminated by ChemoCentryx
pursuant to Section 14.3(a) or 14.3(b), any sublicense granted to a Sublicensee that is not in breach under the applicable sublicense (and whose actions or omissions did not result in a breach by VIT giving rise to ChemoCentryx’s right of
termination) will continue as a direct license from ChemoCentryx so long as the Sublicensee makes all payments to ChemoCentryx required under Section 8.4. 

(b) Regulatory Filings. Unless this Agreement is terminated by VIT under Section 14.3(a), VIT shall: (i) to the extent not
previously provided to ChemoCentryx, deliver to ChemoCentryx true, correct and complete copies of all Regulatory Filings (including Regulatory Approvals) for the Product in the Field in the Territory, and provide to ChemoCentryx all VIT Know-How not previously disclosed to ChemoCentryx; (ii) and hereby does, effective upon such termination, transfer and assign, or cause to be transferred or assigned, to ChemoCentryx or its designee (or to the
extent not so assignable, take all reasonable actions to make available to ChemoCentryx or its designee the benefits of) all Regulatory Filings (including Regulatory Approvals) for the Product in the Field in the Territory, whether held in the name
of VIT or its Affiliate or Sublicensee; and (iii) take such other actions and execute such other instruments, assignments and documents as may be necessary to effect, evidence, register and record the transfer, assignment or other conveyance of
rights under this Section 14.7(b) to ChemoCentryx. Any activities undertaken by VIT under this Section 14.7(b) will be at ChemoCentryx’s expense. 

(c) VIT Technology. Unless this Agreement is terminated by VIT under Section 14.3(a), VIT hereby grants to ChemoCentryx, effective upon
such termination, a non-exclusive, royalty-free, fully-paid, perpetual, irrevocable, sublicenseable (through multiple tiers) license under the VIT Technology to Develop, make, have made, import, offer for
sale, sell and otherwise Commercialize Compounds and the Product in and outside the Territory. 
 (d) Marks. VIT shall, and hereby
does, effective on such termination, assign to ChemoCentryx all of VIT’s and its Affiliates’ right, title and interest in and to any and all Local Trademarks used by VIT and its Affiliates in the Territory, including all goodwill therein,
and VIT shall promptly take such actions and execute such instruments, assignments and documents as may be necessary to effect, evidence, register and record such assignment, at ChemoCentryx’s cost. 

(e) Wind-Down. VIT shall, as directed by ChemoCentryx, either wind-down any ongoing Development activities of VIT and its
Affiliates and Sublicensees with respect to the Product in the Field in the Territory in an orderly fashion or promptly transfer such Development activities to ChemoCentryx or its designee, in compliance with all Applicable Laws. 

  
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 (f) Transition Assistance. Unless this Agreement is terminated by VIT under Section
14.3(a), VIT shall provide reasonable consultation and assistance for the purpose of transferring or transitioning to ChemoCentryx all VIT Know-How not already in ChemoCentryx’s possession and, at
ChemoCentryx’s request, all then-existing commercial arrangements relating specifically to any Compound or Product that VIT is able, using Commercially Reasonable Efforts, to transfer or transition to ChemoCentryx, in each case, to the extent
reasonably necessary or useful for ChemoCentryx to continue Developing, manufacturing, or Commercializing the Product in the Territory. The foregoing shall include transferring, upon request of ChemoCentryx, any agreements with Third Party suppliers
or vendors that specifically cover the supply or sale of any Compound or Product in the Territory; provided that if any such contract between VIT and a Third Party is not assignable to ChemoCentryx (whether by such contract’s terms or because
such contract does not relate specifically to any Compound or Product) but is otherwise reasonably necessary or useful for ChemoCentryx to commence Developing, manufacturing, or Commercializing the Product in the Territory, or if VIT manufactures
the Product itself (and thus there is no contract to assign), then VIT shall reasonably cooperate with ChemoCentryx to negotiate for the continuation of services or supply from such entity, or VIT shall supply such Compound or Product, as
applicable, to ChemoCentryx for a reasonable period (not to exceed twelve (12) months) until ChemoCentryx establishes an alternate, validated source of such services or supply of finished, packaged, labeled Product for the Territory.
ChemoCentryx shall pay VIT for such supply from VIT at a price equal to VIT’s cost. VIT shall provide such assistance at no cost to ChemoCentryx for a period of twelve (12) months after termination, if such termination occurred after First
Commercial Sale in the Territory, and otherwise for a period of six (6) months after termination, and thereafter ChemoCentryx shall reimburse VIT’s reasonable internal and Third Party costs to conduct such transition from and after the
effective date of termination. 
 (g) Remaining Inventories. If ChemoCentryx terminates this Agreement under Section 14.3(a)
or Section 14.3(b), or if VIT terminates this Agreement under Section 14.5, or if the Parties terminate this Agreement under Section 14.2, then unless, at ChemoCentryx’s option, ChemoCentryx repurchases any remaining inventory at the
invoice price plus the costs of shipping any remaining inventory, which it shall have the right to do, VIT, its Affiliates or their respective Sublicensees shall be permitted to sell, subject to the payment of applicable royalties and Milestone
Payments due under this Agreement, any Product in inventory (including completion for sale of any work in progress) over the twelve (12) month period following termination. ChemoCentryx shall notify VIT within thirty (30) days after the
date of termination whether ChemoCentryx elects to exercise such right. If VIT terminates this Agreement under Section 14.3(a) or Section 14.3(b), VIT, its Affiliates or their respective Sublicensees shall be permitted to sell, subject to the
payment of applicable royalties due under this Agreement, any Product in inventory (including completion for sale of any work in progress) over the twelve (12) month period following termination. 

14.8 Confidential Information. Upon expiration or termination of this Agreement in its entirety, except to the extent that a
Party obtains or retains the right to use the other Party’s Confidential Information, each Party shall promptly return to the other Party, or delete or destroy, all relevant records and materials in such Party’s possession or control
containing Confidential Information of the other Party; provided that such Party may keep one copy of such materials for archival purposes only subject to continuing confidentiality obligations. All VIT
Know-How assigned to ChemoCentryx after the Term will be deemed ChemoCentryx’s Confidential Information and no longer VIT’s Confidential Information. 

14.9 Survival. Expiration or termination of this Agreement shall not relieve the Parties of any obligation or right accruing
prior to such expiration or termination. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following provisions of this Agreement shall survive expiration or termination of this Agreement:
Sections 9.3, 9.4, 9.5, 10.2, 10.4, 11.5, 14.6, 14.7, 14.8, 14.9, 14.10 and 14.11 and Articles 12, 13, 15 and 16. 
 14.10
Exercise of Right to Terminate. The use by either Party hereto of a termination right provided for under this Agreement shall not give rise to the payment of damages or any other form of compensation or relief to the other Party
with respect thereto; provided, however, that termination of this Agreement shall not preclude either Party from claiming any other damages, compensation or relief that it may be entitled to upon such termination. 

  
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 14.11 Damages; Relief. Subject to Section 14.10, termination of this
Agreement shall not preclude either Party from claiming any other damages, compensation or relief that it may be entitled to upon such termination. 

14.12 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by one Party to the other
Party are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws, licenses of right to “intellectual property” as defined
under Section 101 of the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws. The Parties agree that a Party that is a licensee of such rights under this Agreement will retain and may fully exercise all of
its rights and elections under the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against a Party to this
Agreement under the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws, the other Party will be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all
embodiments of such intellectual property, and same, if not already in its possession, will be promptly delivered to it (a) upon any such commencement of a bankruptcy or insolvency proceeding upon its written request therefor, unless the
bankrupt Party elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under (a) above, following the rejection of this Agreement by or on behalf of the bankrupt Party upon written request
therefor by the other Party. 
  

	15.	DISPUTE RESOLUTION 

 15.1 Objective. The Parties
recognize that disputes as to matters arising under or relating to this Agreement or either Party’s rights and obligations hereunder may arise from time to time. It is the objective of the Parties to establish procedures to facilitate the
resolution of such disputes in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in this Article 15 to resolve any such dispute if and
when it arises. 
 15.2 Resolution by Executive Officers. Except as otherwise provided in Article 3, if an unresolved dispute
as to matters arising under or relating to this Agreement or either Party’s rights and obligations hereunder arises, either Party may refer such dispute to the Executive Officers, who shall meet in person or by telephone within thirty
(30) days after such referral to attempt in good faith to resolve such dispute. If such matter cannot be resolved by discussion of such officers within such thirty (30)-day period, or such other time
period as the Parties may agree to in writing, such dispute shall be resolved in accordance with Section 15.3. 
 15.3
Arbitration. 
 (a) If the Parties do not resolve a dispute as provided in Section 15.2, and a Party wishes to pursue
the matter, each such dispute that is not an Excluded Claim (defined below) shall be resolved by binding arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce (“ICC”) as then in effect (the
“ICC Rules”), which ICC Rules are deemed to be incorporated by reference into this clause and judgment on the arbitration award may be entered in any court having jurisdiction thereof. The decision rendered in any such arbitration
will be final and not appealable. If either Party intends to commence binding arbitration of such dispute, such Party will provide written notice to the other Party informing the other Party of such intention and the issues to be resolved. Within
thirty (30) days after the receipt of such notice, the other Party may, by written notice to the Party initiating binding arbitration, add additional issues to be resolved. 

(b) The arbitration shall be conducted by a panel of three (3) arbitrators appointed in accordance with the ICC Rules, none of
whom shall be a current or former employee or director, or a then-current stockholder, of either Party, their respective Affiliates or any Sublicensee. The place of arbitration shall be New York, New York, and all proceedings and communications
shall be in English. 
 (c) It is the intention of the Parties that discovery, although permitted as described herein, will be
limited except in exceptional circumstances. The arbitrators will permit such limited discovery necessary for an 

  
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understanding of any legitimate issue raised in the arbitration, including the production of documents. No later than thirty (30) days after selection of the arbitrators, the Parties and
their representatives shall hold a preliminary meeting with the arbitrators, to mutually agree upon and thereafter follow procedures seeking to assure that the arbitration will be concluded within six (6) months from such meeting. Failing any
such mutual agreement, the arbitrators will design and the Parties shall follow procedures to such effect. 
 (d) Either Party may
apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either Party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction
any injunctive or provisional relief necessary to protect the rights or property of that Party pending the arbitration award. The arbitrators shall have no authority to award punitive or any other
non-compensatory damages, except as may be permitted by Section 16.12. The arbitrators shall have the power to order that all or part of the legal or other costs incurred by a Party in connection with the
arbitration be paid by the other Party. Each Party shall bear an equal share of the arbitrators’ and any administrative fees of arbitration. 

(e) Except to the extent necessary to confirm or enforce an award or as may be required by Applicable Law, neither a Party nor an
arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based
on the dispute, controversy or claim would be barred by the applicable New York statute of limitations. 
 (f) As used in this
Section, the term “Excluded Claim” means a dispute, controversy or claim that concerns (i) the validity, enforceability or infringement of a patent, trademark or copyright; or (ii) any antitrust, anti-monopoly, or
competition law or regulation, whether or not statutory. 
 15.4 Expert Arbitrators if no JSC Consensus on Certain Matters.

 (a) If [ ***], the Parties are obligated to submit a disputed matter to arbitration under this Section 15.4 pursuant to
Section 3.4(c)(i), then unless the Parties otherwise agree, the Parties shall, within thirty (30) days after the end of the thirty (30)-day period after the matter is first referred to the Executive
Officers for resolution, with respect to VIT’s objection to a Development Plan amendment because VIT reasonably believes that such amendment would materially adversely affect the safety and efficacy profile of the Product in the Territory, or
that a proposed Additional Indication satisfies the Additional Indication Rejection Condition, mutually select a 
 panel of three (3) independent
scientific experts having substantial relevant experience with respect to the development of pharmaceutical products, and failing such mutual agreement during such time frame, either Party may ask the American Arbitration Association to promptly
appoint the experts on behalf of the Parties) (the “Expert Arbitrators”). Both Parties shall submit their respective proposals with respect to such Development Plan amendment and arguments with respect to its effect on the safety
and efficacy profile of the Product in the Territory, or on whether the Additional Indication satisfies the Additional Indication Rejection Condition, to the Expert Arbitrators within three (3) Business Days of learning of such Expert
Arbitrators’ appointment, either through agreement of the Parties or by the American Arbitration Association. If a Party fails to submit a proposal within such timeframe, then the proposal of the submitting Party shall prevail. 

(b) Each Party shall have ten (10) Business Days from receipt of the other Party’s submission to the Expert Arbitrators to
submit a written response to such proposal. A hearing with the Parties and the Expert Arbitrators shall take place over no more than two (2) Business Days and shall commence no later than ten (10) days after submission of the written
responses to each other and the Expert Arbitrators. Each Party shall have a reasonable period of time, to be determined by the Expert Arbitrators (which period of time shall be sufficient for the Expert Arbitrators to fully understand the proposals,
responses and the relative merits thereof), to argue for its proposal at the hearing with the Expert Arbitrators. The Expert Arbitrators shall have the right to 

 

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meet thereafter with the Parties together, as necessary to make a determination. The Expert Arbitrators shall, within five (5) Business Days after completion of the hearing, or such longer
period as the Parties may agree, make a final and binding determination as to whether the proposed Development Plan amendment is reasonably likely to materially adversely affect the safety and efficacy profile of the Product in the Territory or on
whether the Additional Indication satisfies the Additional Indication Rejection Condition. Such determination shall be deemed to be the consensus of the JSC. The Parties acknowledge and agree that the rendering of a determination by the Expert
Arbitrators shall be deemed effective at the time its determination is made, irrespective of the time when a formal written statement of the Expert Arbitrators’ opinion with respect to such matter, or the basis of its determination, is
released, if at all. At any time prior to the determination, either Party may accept the other Party’s position on any unresolved issue. The Parties shall inform the Expert Arbitrators of such accepted position and in such event such position
will be deemed part of the final resolution of the matter in dispute and no longer subject to arbitration. The Expert Arbitrators’ decision shall take into account customary and commercially reasonable industry practices for the conduct of
development and other activities in compliance with Applicable Law. Each Party shall bear its own costs and expenses (including legal fees and expenses) relating to the arbitration proceeding. Any fees, costs, expenses or other amounts payable to
the Expert Arbitrators in connection with any arbitration pursuant to this Section 15.4 shall be borne equally by the Parties. 
  

	16.	GENERAL PROVISIONS 

 16.1 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to any rules of conflict of laws. 

16.2 Entire Agreement; Modification. This Agreement, together with the Letter Agreement and Supply Agreement, is both a
final expression of the Parties’ agreement and a complete and exclusive statement with respect to all of its terms. This Agreement supersedes all prior and contemporaneous agreements and communications, whether oral, written or otherwise,
concerning any and all matters contained herein. This Agreement may only be modified or supplemented in a writing expressly stated for such purpose and signed by the Parties to this Agreement. 

16.3 Relationship Between the Parties. The Parties’ relationship, as established by this Agreement, is solely that of
independent contractors. This Agreement does not create any partnership, joint venture or similar business relationship between the Parties. Neither Party is a legal representative of the other Party, and neither Party can assume or create any
obligation, representation, warranty or guarantee, express or implied, on behalf of the other Party for any purpose whatsoever. 
 16.4
Non-Waiver. The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this Agreement shall neither impair that
provision or right nor constitute a waiver of that provision or right, in whole or in part, in that instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular matter
and, if applicable, for a particular period of time and shall be signed by such Party. 
 16.5 Assignment. Except as
expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably
withheld); provided, however, that either Party may assign or otherwise transfer this Agreement and its rights and obligations hereunder without the other Party’s consent: 

(a) in connection with the transfer or sale of all or substantially all of the business or assets of such Party relating to the Product
to a Third Party, whether by merger, consolidation, divesture, restructure, sale of stock, sale of assets or otherwise, provided that in the event of any such transaction (whether this Agreement is actually assigned or is assumed by the acquiring
Party by operation of law (e.g., in the context of a reverse triangular merger)), intellectual property rights of the acquiring Party to such transaction (if other than one of the Parties to this Agreement) shall not be included in the
technology licensed hereunder; and 

  
 56 

 (b) to an Affiliate, provided that in each such case the assigning Party shall remain
liable and responsible to the non-assigning Party hereto for the performance and observance of all such duties and obligations by such Affiliate or other entity. 

The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the
Parties specified above, and the name of a Party appearing herein will be deemed to include the name of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this section. Any assignment not in
accordance with this Section 16.5 shall be null and void. 
 16.6 Severability. If, for any reason, any part of
this Agreement is adjudicated invalid, unenforceable or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any
remaining portions of this Agreement. All remaining portions shall remain in full force and effect as if the original Agreement had been executed without the invalidated, unenforceable or illegal part. 

16.7 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, by
(a) air mail (postage prepaid) requiring return receipt, (b) overnight courier, or (c) facsimile confirmed thereafter by any of the foregoing, to the Party to be notified at its address(es) given below, or at any address such Party
may designate by prior written notice to the other in accordance with this Section 16.7. Notice shall be deemed sufficiently given for all purposes upon the earliest of: (i) the date of actual receipt; (ii) if air mailed, five
(5) days after the date of postmark; (iii) if delivered by overnight courier, the next day the overnight courier regularly makes deliveries or (iv) if sent by facsimile, the date of confirmation of receipt if during the
recipient’s normal business hours, otherwise the next Business Day. 
 If to VIT, notices must be addressed to: 

Vifor (International) Ltd. 

Rechenstrasse 37, 9014 St. Gallen, Switzerland 

Attention: Chief Executive Officer 

Facsimile: +41 58 851 80 01 
 with a copy to:

 Vifor (International) Ltd. 

Rechenstrasse 37, 9014 St. Gallen, Switzerland 

Facsimile: +41 58 851 80 01 

Attention:  Group General Counsel 
 If to
ChemoCentryx, notices must be addressed to: 
 ChemoCentryx, Inc. 

850 Maude Avenue 
 Mountain View,
CA 94043 
 USA 

Attn:    Chief Executive Officer 

Fax:    
+1-650-210-2910 
 with a copy to:

 Cooley LLP4401 Eastgate Mall 

San Diego, CA 92121-1909 

USAAttn:    L. Kay Chandler 

Fax:             +1-858-550-6420 

  
 57 

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

16.9 Standstill Agreement. During the Term and, in the case of early termination of this Agreement as provided in
Section 14, and for three (3) months after such termination (the “Standstill Period”), unless specifically invited in writing by the board of directors of ChemoCentryx, except pursuant to the terms of this Agreement,
neither VIT nor any of its Representatives will, in any manner, directly or indirectly, without the prior express written consent of ChemoCentryx: 

(a) make, effect, initiate, directly participate in or cause (i) any acquisition of beneficial ownership of any outstanding shares
of common stock or other securities of ChemoCentryx or any Affiliate of ChemoCentryx with the power to vote in the election of directors or any securities convertible into or exercisable or exchangeable into such securities of ChemoCentryx or any
Affiliate of ChemoCentryx (“Voting Securities”), in the case of a Representative (excluding an Affiliate) authorized to act on behalf of VIT for such purpose, (ii) any acquisition of any assets of ChemoCentryx or any assets of
any Affiliate of ChemoCentryx, (iii) any tender offer, exchange offer, merger, business combination, recapitalization, restructuring, liquidation, dissolution or extraordinary transaction involving ChemoCentryx or any Affiliate of ChemoCentryx,
or involving any securities or assets of ChemoCentryx or any securities or assets of any Affiliate of ChemoCentryx, or (iv) any “solicitation” of “proxies” (as those terms are used in the proxy rules of the SEC) or consents
with respect to any Voting Securities; provided that nothing in this Section 16.9(a) shall preclude any activities of VIT or its Representatives with respect to the grant by ChemoCentryx or any Affiliate of ChemoCentryx of any license, or the
supply by ChemoCentryx or any subsidiary of ChemoCentryx of any products, in each case to VIT or any of its Affiliates as contemplated by this Agreement; 

(b) form, join or participate in a “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as
amended) with respect to the beneficial ownership of any Voting Securities of ChemoCentryx; 
 (c) act, alone or in concert with
others, to seek to control the management, board of directors or policies of ChemoCentryx; 
 (d) seek to call any meeting of the
stockholders of ChemoCentryx or propose or nominate for election to ChemoCentryx’s board of directors any person whose nomination has not been approved by a majority of ChemoCentryx’s board of directors; 

(e) publicly or otherwise propose the taking of any action referred to in Section 16.9(a), (b), (c) or (d); 

(f) assist, induce, encourage, enter into any discussions, negotiations, arrangements, or agreements with, or otherwise act in concert
with any Third Party relating to any of the foregoing; or 
 (g) request or propose (in any manner that would reasonably be likely to
cause ChemoCentryx to disclose publicly) that ChemoCentryx or any of ChemoCentryx’s Representatives amend, waive or consider the amendment or waiver of any provision set forth in this Section 16.9, in the case of a Representative
(excluding an Affiliate) authorized to act on behalf of VIT for such purpose. 

  
 58 

 For purposes of this Agreement, a Party’s “Representatives” will be deemed to include each
person or entity that is or becomes (1) an Affiliate of such Party, or (2) an officer, director, employee, partner, attorney, advisor, accountant, agent or representative of such Party or of any of such Party’s Affiliates, providing
such person or entity authorized by such Party. 
 Notwithstanding the foregoing, this Section 16.9 shall no longer apply
(i) during a period commencing with ChemoCentryx’s announcement in a filing with the SEC or a press release that (A) it is seeking a purchaser for itself or all or substantially all of its assets or (B) it is otherwise exploring
strategic options in this regard, and ending with ChemoCentryx’s announcement in a filing with the SEC or a press release that is terminating such search or exploration; (ii) during the period beginning with the commencement by a Third
Party of a publicly-announced tender or exchange offer for more than fifty percent (50%) of the voting power of the outstanding Voting Securities of ChemoCentryx, and ending with the termination by such Third Party of such tender or exchange offer;
or (iii) if ChemoCentryx announces in a filing with the SEC or a press release a transaction, or an intention to effect any transaction, which would result in (A) the sale by ChemoCentryx or one or more subsidiaries of assets representing
fifty percent (50%) or more of the consolidated assets of ChemoCentryx; or (B) the common shareholders of ChemoCentryx immediately prior to such transaction owning less than fifty percent (50%) of the outstanding common stock of the acquiring
entity or, in case of a merger transaction, the surviving corporation (or, if the surviving corporation is an Affiliate of a parent company, the parent company); provided that, in the case of clause (ii) VIT has not directly or indirectly taken
any action prohibited under this Section 16.9. 
 16.10 Interpretation. The headings of clauses contained in this Agreement
preceding the text of the sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction. All
references in this Agreement to the singular shall include the plural where applicable. Unless otherwise specified, references in this Agreement to any Article shall include all Sections, subsections and paragraphs in such Article, references to any
Section shall include all subsections and paragraphs in such Section, and references in this Agreement to any subsection shall include all paragraphs in such subsection. The word “including” and similar words means including without
limitation. The word “or” means “and/or” unless the context dictates otherwise because the subject of the conjunction are mutually exclusive. The words “herein,” “hereof” and “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision. All references to days in this Agreement mean calendar days, unless otherwise specified. Ambiguities and uncertainties in this
Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared in the English language and the English language shall
control its interpretation. In addition, all notices required or permitted to be given hereunder, and all written, electronic, oral or other communications between the Parties regarding this Agreement shall be in the English language. 

16.11 Counterparts; Electronic or Facsimile Signatures. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute one instrument. This Agreement may be executed and delivered electronically or by facsimile and upon such delivery such electronic or facsimile signature will be deemed
to have the same effect as if the original signature had been delivered to the other Party. 
 16.12 Limitation of Liability.
EXCEPT FOR LIABILITY FOR BREACH OF ARTICLE 13, NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER;
provided, however, that this Section 16.12 shall not be construed to limit either Party’s indemnification obligations under Article 12. 

{SIGNATURE PAGE FOLLOWS} 

  
 59 

 IN WITNESS WHEREOF, the Parties hereto have
caused this COLLABORATION AND LICENSE AGREEMENT to be executed and entered into by their duly authorized representatives as of the Effective Date. 

 

									
	 CHEMOCENTRYX,
INC.
	 		 	 VIFOR (INTERNATIONAL)
LTD.

			
	 By: /s/ Thomas J. Schall,
Ph.D.                                

 
	 		 	 By: /s/ Dr. Christoph
Springer                                  

 

	Name: Thomas J. Schall, Ph.D.	 		 	Name: Dr. Christoph Springer
	 Title: Chairman of the Board, President

          and Chief Executive Officer
	 		 	 Title: Global Head Business Development and

          Licensing

  

			
	 By:
  
	 	 /s/ Dr. Oliver P. Kronenberg

 

	Name:	 	Dr. Oliver P. Kronenberg
	Title:	 	Group General Counsel

  
 Signature Page to
Collaboration and License Agreement 

 Schedule 6.3 

Diligence Countries 
 Austria 

Belgium 
 Netherlands 

Sweden 
 Finland 

Denmark 
 Norway 

Iceland 
 Portugal 

Greece 
 Egypt 

South Africa 
 Argentina 

Chile 

 Exhibit 8.4(a) 

Quarterly Royalty Calculation Example if Both Sets of Royalty Rates Apply 

If royalties are payable on Net Sales in a country in which the Product is approved only for Orphan Indications and on Net Sales in a country in which the
Product is approved for Orphan Indications and for CKD, royalties will be calculated as shown in the table below: 
  

													
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 [***] 

 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Exhibit 8.4(c) 

Quarterly Royalty Reduction Calculation Example 

An example of the royalty calculation pursuant to this Exhibit 8.4(c) for Net Sales of the Product in Orphan Indications in a country for the third quarter,
assuming that the royalty reduction of Section 8.4(c) first applies to the Net Sales of the Product in the country in the third quarter, is as follows: 
  

											
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]
	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 [***] 
 [***]: 

[***] 
 [***] 

[***]: 
 [***] 

[***] 
 [***] 

[***]: 
 [***] 

[***] 
 [***] 

[***]. 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

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