Document:

EXHIBIT 10.1

 

AMENDED AND RESTATED

 

CONTRIBUTION AGREEMENT

 

THIS AMENDED AND RESTATED CONTRIBUTION AGREEMENT (this “Agreement”) is made and entered into as of August 5, 2013, but effective as of June 10, 2013, by and between Synergy Pharmaceuticals Inc., a Delaware corporation (“Parent”), and ContraVir Pharmaceuticals, Inc., a Delaware corporation (the “Company”).  Certain capitalized terms used but not otherwise defined herein are intended to have the meanings given to them in EXHIBIT A attached hereto.

 

RECITALS

 

WHEREAS, Parent and Company are parties to that certain contribution agreement, dated June 10, 2013 (the “Existing Agreement”);

 

WHEREAS, pursuant to the Existing Agreement, Parent transferred to the Company the business being conducted by Parent consisting of the research, development, product design and related activities of Parent relating solely to the research, development, product design and related activities of FV-100, the valyl ester pro-drug of Cf1743, a bicyclic nucleoside analogue (collectively, the “Business”) by effecting the contribution to the Company of all of the Acquired Assets (as defined below) in exchange for the: (i) issuance to Parent of 9,000,000 shares of the common stock, par value $0.001 per share of the Company (the “Common Stock”), representing 100% of the outstanding shares of Common Stock as of immediately following such issuance; and (ii) assumption by the Company of the Assumed Liabilities (as defined below) (collectively, the “Transaction”); and

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, Parent and Company hereby agree that the Existing Agreement is amended and restated in its entirety as follows:

 

ARTICLE I
 CONTRIBUTION

 

SECTION 1.01.  Contribution.

 

(a)                                 Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Parent shall contribute, transfer, convey and deliver to the Company, and the Company shall acquire and accept from Parent, all the right, title and interest of Parent in, to and under the Acquired Assets.

 

(b)                                 In consideration of the contribution, transfer, conveyance and delivery by Parent of the Acquired Assets, the Company shall: (i) issue to Parent 9,000,000 shares of Common Stock, representing 100% of the outstanding shares of Common Stock as of immediately following such issuance; and (ii) assume the Assumed Liabilities.

 

 

SECTION 1.02.  Transfer of Assets.

 

(a)                                 The term “Acquired Assets” means all of Parent’s right, title and interest in, to and under those certain assets identified below (which the parties hereto acknowledge and agree shall include all BMS Acquired Assets but shall not include any Excluded Assets):

 

(i)                                    the following (collectively, the “Transferred Intellectual Property”):

 

(A)                               the patents, patent applications and statutory invention registrations of Parent identified in Section 1.02(a)(i)(A) of the Parent Disclosure Schedule, together with any reissues, divisions, continuations, continuations-in-part, extensions, provisional or supplemental protection certificates, renewals and reexaminations thereof (collectively, the “Transferred Patents”);

 

(B)                               the trademark registrations, trademark applications, service mark registrations, service mark applications and domain name registrations of Parent identified in Section 1.02(a)(i)(B) of the Parent Disclosure Schedule, together with all extensions and renewals thereof and all goodwill associated therewith;

 

(C)                               the copyright registrations of Parent identified in Section 1.02(a)(i)(C) of the Parent Disclosure Schedule, together with all extensions and renewals thereof; and

 

(D)                               all Product Formulae and Manufacturing Knowhow of Parent (collectively, the “Technology”) that are exclusively related to the Product, in each case to the extent transferable in light of legal, contractual and practical considerations;

 

provided, however, that the parties acknowledge and agree that the Transferred Intellectual Property shall: (i) include all assets defined as “Transferred  Intellectual Property” in the BMS Purchase Agreement; but (ii) not include any Excluded Intellectual Property;

 

(ii)                                all raw materials (including all bulk active pharmaceutical ingredients for the Product), works-in-progress, components, supplies and other inventories (including items in transit, on consignment, or covered by open purchase orders or in the possession of any third party) used or held for use by Parent solely in, or arise solely out of, the conduct of the Business on the Closing Date, to the extent transferable in light of legal, contractual and practical considerations (collectively, the “Transferred Inventory”); provided, however, that the parties acknowledge and agree that the Transferred Intellectual Property shall: (i) include all assets defined as “Transferred  Inventory” in the BMS Purchase Agreement; but (ii) not include any Excluded Intellectual Property;

 

(iii)                            all contracts, leases, subleases, indentures, licenses, agreements, commitments and all other legally binding arrangements (including binding purchase orders outstanding as of the Closing Date), whether written or oral (“Contracts”), to which Parent is a party or by which any of the Acquired Assets is bound, that are used solely in, or related solely to, the conduct of the Business, including the BMS Purchase Agreement and the Contracts set forth in Section 4.06 of the Parent Disclosure Schedule, and in each case to the extent transferable in light of legal, contractual and practical considerations (collectively, the “Transferred Contracts”); provided, however, that that the parties acknowledge and agree that the Transferred Contracts shall: (i) include all Contracts defined as “Transferred  Contracts” in the BMS Purchase Agreement; but (ii) not include any Excluded Contracts;

 

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(iv)                             all licenses, permits, authorizations and approvals (including NDAs, BLAs and MAAs, if any) from any Governmental Entity (other than Environmental Permits) (“Permits”) of Parent that are used solely in the conduct of the Business or related solely to any of the Acquired Assets, including the Permits identified in Section 1.02(a)(iv) of the Parent Disclosure Schedule, to the extent transferable in light of legal, contractual and practical considerations (collectively, the “Transferred Permits”); provided, however, that the parties acknowledge and agree that the Transferred Permits shall: (i) include all Permits defined as “Transferred  Permits” in the BMS Purchase Agreement; but (ii) not include any Excluded Permits;

 

(v)                                 all Environmental Permits of Parent that are used solely in the conduct of the Business, including the Environmental Permits identified in Section 1.02(a)(v) of the Parent Disclosure Schedule (collectively, the “Transferred Environmental Permits”); provided, however, that the parties acknowledge and agree that the Transferred Environmental Permits shall: (i) include all Environmental Permits defined as “Transferred  Environmental Permits” in the BMS Purchase Agreement; but (ii) not include any Excluded Environmental Permits;

 

(vi)                             all books and records (or portions of books and records), including laboratory books, and preclinical and clinical studies lists (in all cases, in any form or medium) (“Records”), of Parent that relate solely to, or that arise solely out of, the conduct of the Business, in each case in existence on the Closing Date and within the possession and control of Parent and to the extent transferable in light of legal, contractual and practical considerations (collectively, the “Transferred Records”);  provided, however, that the parties acknowledge and agree that the Transferred Records shall: (i) include all Records defined as “Transferred  Records” in the BMS Purchase Agreement; but (ii) not include any Excluded Records;

 

(vii)                         all proprietary rights of Parent to the information, materials, data and work product proprietary to Parent in respect of research and development activities and preclinical and clinical trials conducted or being conducted solely for use in connection with the conduct of the Business, in each case to the extent transferable in light of legal, contractual and practical considerations; and

 

(viii)                     all tangible personal property and interests therein, including equipment and furnishings (“Personal Property”) of Parent listed in Section 1.02(a)(viii) of the Parent Disclosure Schedule (collectively, the “Transferred Personal Property”);  provided, however, that the parties acknowledge and agree that the Transferred Personal Property shall include all Personal Property defined as “Transferred  Personal Property” in the BMS Purchase Agreement.

 

(b)                                 The term “Excluded Assets” means:

 

(i)                                    all cash and cash equivalents of Parent;

 

(ii)                                all Accounts Receivable;

 

(iii)                            (A) all intellectual property of Parent, other than the Transferred Intellectual Property, including the intellectual property identified in Section 1.02(b)(iii) of the Parent Disclosure Schedule and (B) all Technology of Parent other than the Technology included in the Transferred Intellectual Property, including all Product Formulae, Manufacturing Knowhow and packaging specifications which are not exclusively related to the Product (collectively, the “Excluded Intellectual Property”);

 

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(iv)                             all raw materials, work-in-process, finished goods, supplies, parts, spare parts and other inventories of Parent other than the Transferred Inventory, including the items identified in Section 1.02(b)(iv) of the Parent Disclosure Schedule (collectively, the “Excluded Inventory”);

 

(v)                                 all credits, deferred charges, and prepaid items of Parent (collectively, the “Excluded Miscellaneous Rights”);

 

(vi)                             all Contracts, including the Contracts identified in Section 1.02(b)(vi) of the Parent Disclosure Schedule, to which Parent is a party other than the Transferred Contracts described in Section 1.02(a)(iii) (collectively, the “Excluded Contracts”);

 

(vii)                         all Permits of Parent other than the Transferred Permits (collectively, the ‘‘Excluded Permits”) and all Environmental Permits of Parent other than the Transferred Environmental Permits (collectively, the “Excluded Environmental Permits”);

 

(viii)                     all of the following: (A) any and all books and records prepared and maintained by Parent, including financial records, laboratory books, batch records and stability studies, that do not relate exclusively to the Product, (B) any and all Tax records that relate to Taxes that constitute Excluded Tax Liabilities, (C) any and all records to the extent related to any Excluded Assets or Excluded Liability, (D) any and all books and records prepared in connection with the Transaction including bids received from other parties and analyses relating to the Product, and (E) any and all books and records, files, correspondence or other Records of Parent or its Affiliates other than the Transferred Records (collectively, the “Excluded Records”);

 

(ix)                             all rights, claims and credits of Parent to the extent relating to any Excluded Asset or any Excluded Liability, including any such items arising under insurance policies and all guarantees, warranties, indemnities and similar rights in favor of Parent in respect of any other Excluded Asset or any Excluded Liability;

 

(x)                                 any refund or credit of Taxes attributable to any Excluded Tax Liability;

 

(xi)                             all insurance policies and insurance contracts insuring the Product or the Acquired Assets, together with any claim, action or other right Parent might have for insurance coverage under any past and present policies and insurance contracts insuring the Product or the Acquired Assets, in each case including any proceeds received from any such policy or contract prior to, on or after the Closing Date;

 

(xii)                         all rights of Parent under this Agreement, the Other Transaction Documents and the other agreements and instruments executed and delivered in connection with this Agreement;

 

(xiii)                     all land, buildings, improvements and fixtures thereon owned or leased by Parent, including the leaseholds, sub-leaseholds and other interests in real property listed in Section 1.02(b)(xiii) of the Parent Disclosure Schedule;

 

(xiv)                      all tangible personal property and other fixed assets and interests therein, including all equipment, furnishings, furniture and fixtures, owned or leased by Parent, including the tangible personal property and other fixed assets and interests therein, including all equipment, furnishings, furniture and fixtures listed in Section 1.02(b)(xiv) of the Parent Disclosure Schedule, and any warranty rights applicable to such tangible personal property, fixed assets and equipment other than the Transferred Personal Property (collectively, the “Excluded Personal Property”); and

 

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(xv)                          except to the extent identified in a subsection of Section 1.02(a) of the Parent Disclosure Schedule as included in the Acquired Assets, all other properties, assets, goodwill and rights of Parent of whatever kind and nature, real, personal or mixed, tangible or intangible, that are not used, held for use or intended to be used exclusively in connection with, or that do not arise exclusively out of, the Product or the Acquired Assets.

 

SECTION 1.03.  Assumed Liabilities.

 

(a)                                 Upon the terms and subject to the conditions of this Agreement, the Company  shall assume, effective as of 12:00:01 a.m. on the Closing Date, and from and after the Closing the Company shall pay, perform and discharge when due, all of the following liabilities, obligations and commitments (“Liabilities”) of Parent (which the parties hereto acknowledge and agree shall include all BMS Assumed Liabilities but shall not include any Excluded Liabilities) (the “Assumed Liabilities”);

 

(i)                                    all Accounts Payable, accrued expenses and other current liabilities arising out of or relating to the Product, the Acquired Assets or the Business arising on or after the Closing Date;

 

(ii)                                all Liabilities in respect of any lawsuits, claims, actions or proceedings arising out of or relating to the manufacture, production, marketing, commercialization, distribution or sale of the Product or the ownership, sale, lease or use of any of the Acquired Assets prior to, on or after the Closing Date;

 

(iii)                            all Liabilities for warranty claims and product liability or similar claims, including all suits, actions or proceedings relating to any such Liabilities, arising out of or relating to the Product) whether arising prior to, on or after the Closing Date;

 

(iv)                             all Liabilities for Taxes arising out of or relating to or in respect of the Product or any Acquired Asset for any Post-Closing Tax Period, other than any Excluded Tax Liabilities;

 

(v)                                 all Liabilities for transfer, documentary, sales, use, registration, value added and other similar Taxes and related amounts (including any penalties, interest and additions to Tax) incurred in connection with this Agreement, any of the Other Transaction Documents or the transactions contemplated hereby and thereby (“Transfer Taxes”);

 

(vi)                             all Environmental Liabilities to the extent arising out of or relating to the conduct of the Business or the Acquired Assets or the ownership, sale or lease of any of the Acquired Assets, whether arising prior to, on or after the Closing Date;

 

(vii)                         all Liabilities under or otherwise to the extent arising out of or relating to the Transferred Permits, whether arising prior to, on or after the Closing Date; and

 

(viii)                     all other Liabilities of Parent of whatever kind and nature, primary or secondary, direct or indirect, absolute or contingent, known or unknown, whether or not accrued, arising out of or relating to the conduct of the Business, the Product or Acquired Assets or the ownership, sale or lease of any of the Acquired Assets, whether arising prior to, on or after the Closing Date, including all Liabilities arising under the BMS Purchase Agreement and any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity.

 

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(b)                                 Notwithstanding any other provision of this Agreement, the Company shall not assume any Excluded Liability, each of which shall be retained and paid, performed and discharged when due by Parent.  The term “Excluded Liability” means:

 

(i)                                    all Liabilities, to the extent related to or arising out of any Excluded Asset;

 

(ii)                                any Tax payable with respect to any business, asset, property or operation of Parent (including any Taxes relating to or arising out of the Acquired Assets) for any Pre-Closing Tax Period, other than any Tax for which the Company is responsible pursuant to Section 8.04 (“Excluded Tax Liability”); and

 

(iii)                            all Accounts Payable other than the accounts payable, accrued expenses and other current liabilities assumed pursuant to Section 1.03(a)(i).

 

(c)                                  Each of Parent’s and the Company’s obligations under this Section 1.03 will not be subject to offset or reduction by reason of any actual or alleged breach of any representation, warranty, covenant or agreement contained in this Agreement or any Other Transaction Document or any right or alleged right to indemnification hereunder.

 

SECTION 1.04.  Risk of Loss.  Until the Closing, any loss of or damage to the Acquired Assets from fire, casualty or any other occurrence shall be the sole responsibility of Parent.  On the Closing Date, title to the Acquired Assets shall be transferred to the Company and the Company shall thereafter bear all risk of loss associated with the Acquired Assets and be solely responsible for procuring adequate insurance to protect the Acquired Assets against any such loss; provided, however, that the Company’s responsibility under this Section 1.04 is not contingent on the Company’s ability to procure adequate insurance.

 

SECTION 1.05.  Consents of Third Parties.

 

(a)                                 Notwithstanding anything in this Agreement to the contrary, this Agreement shall not constitute an agreement to assign any asset (including any Contract or Permit) or any claim, right or benefit arising under or resulting from any such asset (including any Contract or Permit), claim, right or benefit arising under or resulting from such asset (including any Contract or Permit) if the assignment or transfer thereof, without the consent of a third party, would constitute a breach or other contravention of the rights of such third party, would be ineffective with respect to any party to an agreement concerning such asset (including any Contract or Permit), claim, right or benefit, or, upon assignment or transfer, would in any way adversely affect the rights of Parent or, upon transfer, the Company.  If any transfer or assignment by Parent to, or any assumption by the Company of, any interest in, or liability, obligation or commitment under, any asset (including any Contract or Permit), or any claim, right or benefit requires the consent of a third party, then such transfer or assumption shall be made subject to such consent being obtained.

 

(b)                                 If any such consent is not obtained prior to the Closing, Parent and the Company shall cooperate (each at their own expense) in any lawful and reasonable arrangement reasonably proposed by the Company under which the Company shall obtain the economic claims, rights and benefits under the asset (including any Contract or Permit) or related claim, right or benefit with respect to which the consent has not been obtained in accordance with this Agreement.  Such reasonable arrangement may include: (i) the subcontracting, sublicensing or subleasing to the Company of any and all rights of Parent against the other party to such third-party agreement arising out of a breach or cancellation thereof by the other party; and (ii) the enforcement by Parent of such rights.

 

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(c)                                  Notwithstanding that the laptops, desktops and other computer hardware included as part of the Transferred Personal Property have (and will at closing have) installed on them certain Parent and third party operating systems and software, the Company hereby acknowledges and agrees that the Acquired Assets do not include ownership of, or any licenses or other rights to use, any such operating systems or software, and that Parent has not and does not intend to complete a software license or other transfer with respect to any such operating systems or software.  The Company further agrees that it shall be fully responsible for obtaining any and all licenses or other rights required to continue to use such operating systems and software, and to otherwise comply with all Applicable Laws, in each case from and after the Closing Date.

 

SECTION 1.06.  Refunds and Remittances.

 

(a)                                 After the Closing, if Parent receives: (i) any refund or other amount which is an Acquired Asset or is otherwise properly due and owing to the Company in accordance with the terms of this Agreement; or (ii) any refund or other amount which is related to claims or other matters for which the Company is responsible hereunder, and which amount is not an Excluded Asset, or is otherwise properly due and owing to the Company in accordance with the terms of this Agreement, Parent promptly shall remit, or shall cause to be remitted, such amount to the Company at the address set forth in Section 11.06.

 

(b)                                 After the Closing, if the Company receives: (i) any refund or other amount which is an Excluded Asset or is otherwise properly due and owing to Parent in accordance with the terms of this Agreement; or (ii) any refund or other amount which is related to claims or other matters for which Parent is responsible hereunder, and which amount is not an Acquired Asset, or is otherwise properly due and owing to Parent in accordance with the terms of this Agreement, the Company promptly shall remit, or shall cause to be remitted, such amount to Parent at the address set forth in Section 11.06.

 

ARTICLE II
  CLOSING

 

SECTION 2.01.  Closing.

 

(a)                                 The closing of the Transaction (the “Closing”) shall take place on the date hereof and shall be held at the offices of Parent located at 420 Lexington Avenue, Suite 2012, New York, NY 10170.  The date on which the Closing shall occur is hereinafter referred to as the “Closing Date”.  For purposes of this Agreement, the Closing shall be deemed effective at 12:00:01 a.m. on the Closing Date.

 

(b)                                 At the Closing, the Company shall deliver to Parent:

 

(i)                                    a stock certificate representing the shares of Common Stock to be issued to Parent pursuant to Section 1.01(b);

 

(ii)                                the Assumption Agreement and such other instruments of assumption and such other instruments and documents as Parent may reasonably request to effect or evidence the acquisition of the Acquired Assets and the assumption of the Assumed Liabilities;

 

(iii)                            an executed counterpart of the IP Assignment Documents with respect to the Transferred Intellectual Property; and

 

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(iv)                             the certificate required to be delivered by the Company under Section 3.02(a) duly executed by an authorized officer of the Company.

 

(c)                                  At the Closing, Parent shall deliver to the Company;

 

(i)                                    the Bill of Sale and such other instruments and documents as the Company may reasonably request to effect or evidence the transfer to the Company of the Acquired Assets;

 

(ii)                                an executed counterpart of the IP Assignment Documents with respect to the Transferred Intellectual Property; and

 

(iii)                            the certificate required to be delivered by Parent under Section 3.01(a) duly executed by an authorized officer of Parent.

 

ARTICLE III
  CONDITIONS TO CLOSING

 

SECTION 3.01.  Conditions to Obligations of the Company.  The obligation of the Company to effect the Transaction is subject to the satisfaction (or written waiver by the Company) as of the Closing of the following conditions:

 

(a)                                 The representations and warranties of Parent made in this Agreement shall be true and correct in all material respects as of the time of the Closing as though made as of such time, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and Parent shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by Parent by the time of the Closing.  Parent shall have delivered to the Company a certificate dated as of the Closing Date and signed by an authorized officer of Parent confirming the foregoing.

 

(b)                                 No statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction or other order enacted, entered, promulgated, enforced or issued by any federal, state or local government or any court of competent jurisdiction, administrative or regulatory agency or commission or other governmental authority or instrumentality, including the FDA, the EMEA or any successor agency thereto which has the responsibility over the development and commercialization of the Product (a “Governmental Entity”), or other legal restraint or prohibition shall be in effect preventing the Transaction.

 

(c)                                  Other Transaction Documents.  Parent shall have executed and delivered to the Company the Other Transaction Documents to which Parent is a party.

 

SECTION 3.02.  Conditions to Obligation of Parent.  The obligation of Parent to effect the Transaction is subject to the satisfaction (or written waiver by Parent) as of the Closing of the following conditions:

 

(a)                                 The representations and warranties of the Company made in this Agreement shall be true and correct in all material respects as of the time of the Closing as though made as of such time, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and the Company shall have performed or complied in all material respects with all obligations and

 

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covenants required by this Agreement to be performed or complied with by the Company by the time of the Closing.  The Company shall have delivered to Parent a certificate dated the Closing Date and signed by an authorized officer of the Company confirming the foregoing.

 

(b)                                 No statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction or other order enacted, entered, promulgated, enforced or issued by any Governmental Entity, or other legal restraint or prohibition shall be in effect preventing the Transaction.

 

(c)                                  The Company shall have executed and delivered to Parent the Other Transaction Documents to which the Company is a party.

 

SECTION 3.03.  Frustration of Closing Conditions.  Neither the Company nor Parent may rely on the failure of any condition set forth in this Article III to be satisfied if such failure was caused by such party’s failure to act in good faith or to use its best efforts to cause the Closing to occur, as required by Section 8.02.

 

ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF PARENT

 

Except as set forth in Parent Disclosure Schedule attached hereto (the “Parent Disclosure Schedule”), Parent hereby represents and warrants to the Company as follows:

 

SECTION 4.01.  Authority.  Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.  Parent has all requisite corporate power and authority to enter into this Agreement and to enter into the Other Transaction Documents to which it is, or is specified to be, a party and to consummate the transactions contemplated hereby and thereby.  All corporate acts and other proceedings required to be taken by Parent to authorize the execution, delivery and performance of this Agreement and the Other Transaction Documents to which it is, or is specified to be, a party and to consummate the transactions contemplated hereby and thereby have been duly and properly taken.  This Agreement has been duly executed and delivered by Parent and, assuming this Agreement has been duly authorized, executed and delivered by the Company, constitutes, and the Other Transaction Documents on the Closing Date will be duly executed and delivered by Parent, and upon the due authorization, execution and delivery by each other party to the Other Transaction Documents will constitute, a legal, valid and binding obligation of Parent, enforceable against Parent in accordance with its and their terms, subject, as to enforcement, to applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting creditors’ rights generally and to general equitable principles.

 

SECTION 4.02.  No Conflicts; Consents.

 

(a)                                 The execution and delivery of this Agreement by Parent do not, and the execution and delivery of the Other Transaction Documents to which it is, or is specified to be, a party by Parent will not, and the consummation of the transactions contemplated hereby and thereby and compliance with the terms and conditions hereof and thereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or loss of a material benefit under, or result in the creation of any liens, claims, encumbrances, security interests, options, charges or restrictions of any kind (“Liens”) upon any of the Acquired Assets under, any provision of: (i) its certificate of incorporation or bylaws; (ii) any Contract to which Parent is a party or by which any of its properties or assets are bound; or (iii) any judgment, order, or decree, or, subject to the matters referred to in paragraph

 

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(b) below, Applicable Law, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect.

 

(b)                                 To the knowledge of Parent, no material consent, approval, license, permit, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required to be obtained or made by or with respect to Parent in connection with the execution, delivery and performance of this Agreement, the Other Transaction Documents or the consummation of the transactions contemplated hereby or thereby other than: (i) those that may be required solely by reason of the Company’s (as opposed to any other third party’s) participation in the transactions contemplated hereby or by the Other Transaction Documents; and (ii) such consents, approvals, licenses, permits, orders, authorizations, registrations, declarations and filings the absence of which, or the failure to make or obtain which, individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect.

 

SECTION 4.03.  Taxes.

 

(a)                                 For purposes of this Agreement: (i) “Tax” or “Taxes” shall mean all federal, state, local and foreign taxes and similar assessments (other than Transfer Taxes), including all interest, penalties and additions imposed with respect to such amounts; (ii) “Pre-Closing Tax Period” shall mean all taxable periods ending on or before the Closing Date and the portion ending on the Closing Date of any taxable period that includes (but does not end on) the Closing Date; and (iii) “Post-Closing Tax Period” shall mean all taxable periods beginning and ending after the Closing Date and the portion beginning on the day after the Closing Date of any Straddle Period.

 

(b)                                 No material Tax liens have been filed and no material claims are being asserted in writing with respect to any Taxes due with respect to the Acquired Assets.

 

SECTION 4.04.  Good and Valid Title.  Parent has, or as of the Closing Date will have, good and valid title to all material Acquired Assets (other than Transferred Inventory covered by open purchase orders), in each case free and clear of all Liens, except: (i) such as are set forth in Section 4.04 of the Parent Disclosure Schedule; (ii) mechanics’, carriers’, workmen’s, repairmen’s or other like Liens arising or incurred in the ordinary course of business or Liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business and Liens for Taxes and other governmental charges which are not due and payable or which may thereafter be paid without penalty; and (iii) other imperfections of title or encumbrances, if any, which do not, individually or in the aggregate, materially impair the continued use and operation of the Acquired Assets to which they relate (the Liens described in clauses (i), (ii) and (iii) above are hereinafter referred to collectively as “Permitted Liens”).  This Section 4.04 does not relate to Intellectual Property or Contracts, such items being the subjects of Section 4.05 and Section 4.06, respectively.

 

SECTION 4.05.  Intellectual Property.

 

(a)                                 Parent owns, or as of the Closing Date will own, free and clear of all Liens (except to the extent the Transferred Intellectual Property may be licensed from third parties), the material Transferred Intellectual Property, and the consummation of Transaction will not conflict with, alter or impair any such rights in any material respect.  The Transferred Intellectual Property constitutes all of the Intellectual Property owned by or in-licensed by Parent relating solely to the Product.  As of the date of this Agreement, no claims are pending or, to the knowledge of Parent, threatened in writing against Parent by any person with respect to the ownership, validity or enforceability of any material Transferred Intellectual Property.

 

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(b)                                 Parent has not granted any material options, licenses or agreements relating to the Transferred Intellectual Property, except non-exclusive implied licenses to end-users in the ordinary course of business.  To the knowledge of Parent, Parent is not as of the date hereof bound by or a party to any material options, licenses or agreements of any kind constituting part of the Acquired Assets relating to the intellectual property of any other person, except for agreements relating to computer software licensed to Parent or its Affiliates in the ordinary course of business.

 

(c)                                  To the knowledge of Parent, there are no patents, patent applications or statutory registrations of Parent which were owned by Inhibitex as of closing date of the acquisition of Inhibitex by BMS (i.e., February 13, 2012) and relate solely to the Product which are not included as part of the Transferred Patents.

 

SECTION 4.06.  Contracts.

 

(a)                                 Section 4.06 of the Disclosure Schedule sets forth each Transferred Contract that is or contains:

 

(i)                                    a covenant by Parent not to compete (other than pursuant to any radius restriction contained in any lease, reciprocal easement or development, construction, operating or similar agreement) or other covenant restricting the research, development, manufacture, marketing or distribution of the Product that materially impairs the such activities as the Business is currently conducted;

 

(ii)                                an agreement, contract or other arrangement with Parent; provided, however, that the foregoing shall be deemed not to include any Other Transaction Document or any agreement, contract or other arrangement that will expire or be terminated at or prior to Closing;

 

(iii)                            (A) a continuing contract for the future purchase of materials, supplies or equipment (other than purchase contracts and orders for inventory in the ordinary course of business consistent with past practice); (B) a management, service, consulting or other similar type of contract (other than contracts for services in the ordinary course of business); or (C) an advertising agreement or arrangement, in any such case which has an aggregate future liability to any person in excess of $100,000 and is not terminable by Parent by notice of not more than one hundred and eighty (180) days for a cost of less than $100,000;

 

(iv)                             a material license, option or other agreement relating in whole or in part to the Transferred Intellectual Property (including any license or other agreement under which Parent is licensee or licensor of any such Transferred Intellectual Property); or

 

(v)                                 any other agreement, contract, lease, license, commitment or instrument to which Parent is a party and by or to which any of the Product or the Acquired Assets or Business is bound by or subject to, in each case which has an aggregate future liability to any person in excess of $100,000 and is not terminable by Parent by notice of not more than one hundred and eighty (180) days for a cost of less than $100,000.

 

(b)                                 Except as set forth in Section 4.06 of the Parent Disclosure Schedule, each Transferred Contract set forth in Section 4.06 of the Parent Disclosure Schedule is valid, binding and in full force and effect and, to the knowledge of Parent, is enforceable by Parent in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws affecting creditors’ rights generally, general principles of equity and the discretion of courts in granting equitable remedies and except to the extent that the failure of a Transferred Contract to be valid,

 

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binding and in full force and effect would not be reasonably likely to have a Material Adverse Effect.  Parent has performed in all material respects all material obligations required to be performed by it to date under the Transferred Contracts and is not (with or without the lapse of time or the giving of notice, or both) in breach or default in any material respect thereunder and, to the knowledge of Parent, no other party to any of the Transferred Contracts set forth in Section 4.06 of the Parent Disclosure Schedule, as of the date of this Agreement, is (with or without the lapse of time or the giving of notice, or both) in breach or default in any material respect thereunder, except to the extent that such breach or default would not be reasonably likely to have a Material Adverse Effect.

 

SECTION 4.07.  Transferred Permits.  During the past three (3) years, Parent has not received written notice of any suit, action or proceeding relating to the revocation or modification of any Transferred Permit the loss of which, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.

 

SECTION 4.08.  Litigation.  To the knowledge of Parent, there are no lawsuits or claims pending as of the date of this Agreement, with respect to which Parent has been contacted in writing by counsel for the plaintiff or claimant, against any Acquired Asset and which: (i) involve an uninsured claim of, or which involve an uninsured unspecified amount which would reasonably be expected to result in a liability of, more than $100,000; (ii) seek any material injunctive relief; or (iii) seek any legal restraint on or prohibition against the Transaction.  To the knowledge of Parent, as of the date of this Agreement, Parent is not a party or subject to or in default under any material judgment, order, injunction or decree of any Governmental Entity or arbitration tribunal applicable to the Product or any material Acquired Asset.

 

SECTION 4.09.  Compliance with Applicable Laws.  To the knowledge of Parent, Parent is in compliance in all material respects with all applicable statutes, laws, ordinances, rules, orders and regulations of any Governmental Entity (“Applicable Laws”), including those relating to occupational health and safety, except for instances of noncompliance that, individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect.  Parent has not received during the two (2) years prior to the date hereof any written communication from a Governmental Entity that alleges that Parent is in violation of any Applicable Laws except for any such violations that, individually or in the aggregate, would not be reasonably likely to have a Material Adverse Effect.  This Section 4.09 does not relate to matters with respect to Taxes, which are the subject of Section 4.03, or environmental matters, which are the subject of Section 4.10.

 

SECTION 4.10.  Environmental Matters.  To the knowledge of Parent: (i) Parent (in each case solely to the extent related to the Business or the Acquired Assets) and the Acquired Assets are in compliance with all applicable Environmental Laws; (ii) Parent has not received prior to the date hereof, any written communication from a Governmental Entity that alleges that Parent is in violation of any applicable Environmental Law in connection with the conduct of the Business, the substance of which communication has not been resolved, or that it is a potentially responsible party under the Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”) (in each case, solely to the extent related to the Business or Acquired Assets); and (iii) there are no pending or, to the knowledge of Parent, threatened lawsuits, actions, arbitrations, claims, complaints or other proceedings against Parent relating to non-compliance with applicable Environmental Laws, to exposure to Hazardous Materials or to a Release of Hazardous Material (in each case, solely to the extent related to the Business or the Acquired Assets).  Except as specifically provided in Section 4.02, the representations and warranties made in this Section 4.10 are Parent’s exclusive representations and warranties relating to environmental matters.

 

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SECTION 4.11.  Absence of Changes or Events.  Subject to the matters set forth in the Parent Disclosure Schedule, including Section 4.11 thereof, since August 17, 2012, there has not been any event, occurrence or development that has resulted in a Material Adverse Effect.  The Company acknowledges that there has been and will continue to be a disruption to the conduct of the Business as a result of the announcement by Parent of its intention to sell the Product and the Acquired Assets and as a result of the execution and delivery of this Agreement and the consummation of the Transaction, and the Company agrees that such disruptions do not and shall not constitute a breach of this Section 4.11 or of Section 5.02.

 

SECTION 4.12.  Accredited Investor.  Parent is an “accredited investor” within the meaning of Rule 501, as presently in effect, of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”).

 

SECTION 4.13.  DISCLAIMER.  THE COMPANY ACKNOWLEDGES THAT EXCEPT AS SET FORTH IN THIS ARTICLE IV, NEITHER PARENT NOR ANY OTHER PERSON HAS MADE ANY REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED, AS TO THE ACQUIRED ASSETS, THE PRODUCT, ANY OTHER ASPECT OF THE BUSINESS, OR THE ACCURACY AND COMPLETENESS OF ANY INFORMATION REGARDING THE ACQUIRED ASSETS FURNISHED OR MADE AVAILABLE TO THE COMPANY AND ITS REPRESENTATIVES AND THE COMPANY HAS NOT RELIED ON ANY REPRESENTATION FROM PARENT OR ANY OTHER PERSON WITH RESPECT TO THE ACQUIRED ASSETS, THE PRODUCT, ANY ASPECT OF THE BUSINESS, OR THE ACCURACY OR COMPLETENESS OF ANY INFORMATION REGARDING THE ACQUIRED ASSETS FURNISHED OR MADE AVAILABLE TO THE COMPANY AND ITS REPRESENTATIVES IN DETERMINING TO ENTER INTO THIS AGREEMENT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE IV.  THE COMPANY ACKNOWLEDGES THAT SHOULD THE CLOSING OCCUR, THE COMPANY SHALL ACQUIRE THE ACQUIRED ASSETS WITHOUT ANY REPRESENTATION AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IN AN “AS IS” CONDITION AND ON A “WHERE IS” BASIS AND THE COMPANY SHALL BEAR THE ECONOMIC AND LEGAL RISKS THAT ANY CONVEYANCE SHALL PROVE TO BE INSUFFICIENT TO VEST IN THE COMPANY GOOD AND MARKETABLE TITLE, FREE AND CLEAR OF ANY LIENS, THAT ANY NECESSARY CONSENTS OR GOVERNMENTAL APPROVALS ARE NOT OBTAINED AND THAT ANY REQUIREMENTS OF APPLICABLE LAWS OR JUDGMENTS ARE NOT COMPLIED WITH.

 

ARTICLE V
  COVENANTS OF PARENT

 

Parent covenants and agrees as follows:

 

SECTION 5.01.  Access.  From the date hereof to the Closing, Parent shall give the Company and its representatives, employees, counsel and accountants reasonable access, during normal business hours and upon reasonable advance notice, to the Acquired Assets; provided, however, that such access: (i) does not unreasonably disrupt the normal operations of Parent; (ii) would not be reasonably expected to violate any attorney-client privilege of Parent or violate any Applicable Law; and (iii) would not reasonably be expected to breach any duty of confidentiality owed to any person whether the duty arises contractually, statutorily or otherwise.

 

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SECTION 5.02.  Ordinary Conduct.

 

(a)                                 From the date hereof until the Closing, Parent shall cause the distribution and sale of the Product to be conducted in all material respects in the ordinary course in substantially the same manner as conducted as of the date hereof and shall make all reasonable efforts consistent with current practices to preserve the relationships with customers, suppliers, distributors and others with whom Parent has a material business relationship with respect to the Product.

 

(b)                                 From the date hereof until the Closing, Parent shall not do any of the following in connection with the Acquired Assets without the prior written consent of the Company:

 

(i)                                    permit, allow or suffer any Acquired Asset to become subjected to any Lien of any nature whatsoever which would have been required to be set forth in Section 4.04 or 4.05 of the Parent Disclosure Schedule if it existed on the date of this Agreement;

 

(ii)                                sell, lease or otherwise dispose of any Acquired Assets which are material, individually or in the aggregate, to the Product, except for sales of raw materials, work-in-process, finished goods, supplies and other inventories in the ordinary course of business;

 

(iii)                            terminate, modify or amend in any material respect any Transferred Contract or Transferred Permit; or

 

(iv)                             agree, whether in writing or otherwise, to do any of the foregoing

 

SECTION 5.03.  Transferred Intellectual Property.  Parent shall make no filings with any Governmental Entity relating to the Transferred Intellectual Property, nor grant or attempt to grant any material options, licenses or agreements relating to the Transferred Intellectual Property.

 

ARTICLE VI
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company hereby represents and warrants to Parent as follows:

 

SECTION 6.01.  Authority.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.  The Company has all requisite corporate power and authority to enter into this Agreement and the Other Transaction Documents to which it is, or is specified to be, a party and to consummate the transactions contemplated hereby and thereby.  All corporate acts and other proceedings required to be taken by the Company to authorize the execution, delivery and performance of this Agreement and the Other Transaction Documents to which it is, or is specified to be, a party and to consummate the transactions contemplated hereby and thereby have been duly and properly taken.  This Agreement has been duly executed and delivered by the Company and, assuming this Agreement has been duly authorized, executed and delivered by Parent, constitutes, and the Other Transaction Documents on the Closing Date will be duly executed by the Company, and upon the due authorization, execution and delivery by each other party to the Other Transaction Documents, will constitute, a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its and their terms, subject, as to enforcement, to applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting creditors’ rights generally and to general equitable principles.

 

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SECTION 6.02.  No Conflicts; Consents.

 

(a)                                 The execution and delivery of this Agreement by the Company does not, and the execution and delivery by the Company of each Other Transaction Document to which it is, or is specified to be, a party will not, and the consummation of the transactions contemplated hereby and thereby and compliance with the terms hereof and thereof will not, conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a material benefit under, or result in the creation of any Lien upon any of the properties, or assets of the Company under, any provision of: (i) its certificate of incorporation or bylaws, (ii) any Contract to which the Company is a party or by which any of its properties or assets are bound or (iii) any judgment, order, or decree, or, subject to the matters referred to in paragraph (b) below, Applicable Law, other than, in the case of clauses (ii) and (iii) above, any such items that, individually or in the aggregate, would not be reasonably likely to have a material adverse effect on the ability of the Company to consummate the Transaction.

 

(b)                                 To the knowledge of the Company, no consent, approval, license, permit, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required to be obtained or made by or with respect to the Company in connection with the execution, delivery and performance of this Agreement, the Other Transaction Documents or the consummation of the transactions contemplated hereby or thereby, other than: (i) those that may be required solely by reason of Parent’s (as opposed to any other third party’s) participation in the transactions contemplated hereby or by the Other Transaction Documents; and (ii) such consents, approvals, licenses, permits, orders, authorizations, registrations, declarations and filings the absence of which, or the failure to make which, individually or in the aggregate, would not be reasonably likely to have a material adverse effect on the ability of the Company to consummate the Transaction.

 

SECTION 6.03.  Actions and Proceedings.  There are no: (i) outstanding judgments, orders, injunctions or decrees of any Governmental Entity or arbitration tribunal against the Company; (ii) lawsuits, actions or proceedings pending or, to the knowledge of the Company, threatened against the Company; or (iii) investigations by any Governmental Entity which are pending or, to the knowledge of the Company, threatened against the Company, which, in the case of each of clauses (i), (ii) and (iii), have had or would be reasonably likely to have a material adverse effect on the ability of the Company to consummate the Transaction.

 

SECTION 6.04.  Valid Issuance.  The shares of Common Stock that are being issued to Parent hereunder, when sold, issued and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable, and will be free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws.

 

SECTION 6.05.  Offering.  Assuming the accuracy of the representations and warranties of Parent contained in Article IV, the offer, sale and issuance of the shares of Common Stock being issued to Parent hereunder are and will be exempt from the registration and prospectus delivery requirements of the Securities Act, and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws.

 

SECTION 6.06.  No Knowledge of Misrepresentation or Omission.  The Company has no knowledge that any of the representations and warranties of Parent made in this Agreement or any

 

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Other Transaction Document qualified as to materiality are not true and correct, or that those not so qualified are not true and correct in all material respects, and the Company has no knowledge of any material errors in, or material omissions from, any section of the Parent Disclosure Schedule.

 

ARTICLE VII
  COVENANTS OF THE COMPANY

 

The Company covenants and agrees as follows:

 

SECTION 7.01.  No Additional Representations.  The Company acknowledges that it and its representatives have received or been afforded the opportunity to review prior to the date hereof all written materials which Parent was required to deliver or make available, as the case may be, to the Company pursuant to this Agreement on or prior to the date hereof.  The Company acknowledges that it and its representatives have been permitted full and complete access to the books and records, facilities, equipment, Contracts and other properties and assets of Parent to the extent relating to the Product or the Acquired Assets that it and its representatives have desired or requested to see and/or review, and that it and its representatives have had a full opportunity to meet with the officers and employees of Parent to discuss the Product, the Acquired Assets and the Assumed Liabilities.  The Company acknowledges that neither Parent nor any other person has made any representation or warranty, expressed or implied, as to the accuracy or completeness of any information regarding the Acquired Assets or the Assumed Liabilities furnished or made available to the Company and its representatives, except as expressly set forth in this Agreement or the Parent Disclosure Schedule, and neither Parent nor any other person shall have or be subject to any liability to the Company or any other person resulting from the distribution to the Company, or the Company’s use of, any such information.

 

SECTION 7.02.  Advice to Parent.  The Company shall promptly advise Parent orally and in writing of any change or event occurring between the date of this Agreement and the Closing Date which the Company believes would be reasonably likely to have a material adverse effect on the ability of the Company to consummate the Transaction.

 

SECTION 7.03.  Acknowledgement of Assignment.  The execution and delivery of this Agreement by the Company constitutes an agreement by the Company to be bound by the terms and conditions of that certain Patent and Technology License Agreement, dated as of February 2, 2005, between University College Cardiff Consultants Limited and Contravir Research Incorporated (FV-100), as amended March 27, 2007, in accordance with Section 12.1 thereof.

 

ARTICLE VIII
  MUTUAL COVENANTS

 

SECTION 8.01.  Consents.  The Company acknowledges that certain consents and waivers with respect to the Transaction may be required from parties to the Transferred Contracts and issuers of the Transferred Permits in order to transfer such Transferred Contracts or Transferred Permits to the Company and that such consents and waivers have not been obtained.  The Company agrees that, except for the provision of Section 1.05(b), Parent shall not have any liability or obligation whatsoever to the Company arising out of or relating to the failure to obtain any consents or waivers that may be required in connection with the Transaction or because of the termination of any Transferred Contract or Transferred Permit as a result thereof.  The Company further agrees that no representation, warranty, covenant or agreement of Parent contained herein shall be breached or deemed breached, and no condition shall be deemed not satisfied, as a result of: (i) the failure to obtain any such consent or waiver; (ii) any such termination; or (iii) any lawsuit, action, proceeding or investigation

 

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commenced or threatened by or on behalf of any person arising out of or relating to the failure to obtain any such consent or waiver or any such termination.  Prior to the Closing, Parent shall cooperate with the Company, upon the request of the Company, in any reasonable manner in connection with the Company obtaining any such consents and waivers; provided, however, that such cooperation shall not include any requirement of Parent  to expend money, commence, defend or participate in any litigation, incur any obligation in favor of, or offer or grant any accommodation (financial or otherwise) to, any third party.

 

SECTION 8.02.  Cooperation.

 

(a)                                 The Company and Parent shall cooperate with each other, and shall cause their respective officers, employees, agents, auditors and representatives to cooperate with each other, for a period of sixty (60) days after the Closing to ensure the orderly transition of the Product and the Acquired Assets from Parent to the Company and to minimize any disruption to the respective businesses of Parent and the Company that might result from the Transaction.  After the Closing, upon reasonable written notice, the Company and Parent shall furnish or cause to be furnished to each other and their employees, counsel, auditors and representatives reasonable access, during normal business hours, to such information and assistance relating to the Product and the Acquired Assets as is reasonably necessary for financial reporting and accounting matters, the preparation and filing of any Tax returns, reports or forms or the defense of any Tax claim or assessment.  The obligation to cooperate pursuant to the preceding sentence insofar as it concerns Taxes shall terminate at the time the relevant applicable statute of limitations expires (giving effect to any extension thereof).  Each party shall reimburse the other for reasonable out-of-pocket costs and expenses incurred in assisting the other pursuant to this Section 8.02.  Neither party shall be required by this Section 8.02 to take any action that would unreasonably interfere with the conduct of its business or unreasonably disrupt its normal operations.

 

(b)                                 From time to time, as and when requested by either party hereto, the other party shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions (subject to the provisions of Sections 8.01 and 8.02), as such other party may reasonably deem necessary or desirable to consummate the transactions contemplated by this Agreement.

 

SECTION 8.03.  Publicity.  Parent and the Company agree that no public release or announcement concerning the Transaction shall be issued by either party or its Affiliates without the prior written consent of the other party (which consent shall not be unreasonably withheld), except as such release or announcement may be required by Applicable Law or the rules or regulations of any United States or foreign securities exchange to which such party is subject, in which case the party required to make the release or announcement shall allow the other party reasonable time to comment on such release or announcement in advance of such issuance.

 

SECTION 8.04.  Tax Covenants.

 

(a)                                 All Transfer Taxes and any filing or recording fees applicable to the Transaction shall be paid by the Company.  Each party shall use reasonable efforts to avail itself of any available exemptions from any such Taxes or fees, and to cooperate with the other party in providing any information and documentation that may be necessary to obtain such exemptions.

 

(b)                                 Parent shall be entitled to any refunds or credits of Taxes relating to any Excluded Tax Liability.  The Company shall be entitled to any refunds or credits of Taxes relating to the Acquired Assets, other than any such refunds or credits of Taxes relating to any Excluded Tax Liability.

 

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(c)                                  Any value-added, goods and services, stamp duties, ad valorem and similar Taxes shall be allocated between portions of a tax period that includes (but does not end on) the Closing Date (a “Straddle Period”) in the following manner: (i) in the case of a Tax imposed in respect of property and that applies ratably to a Straddle Period, the amount of Tax allocable to a portion of the Straddle Period shall be the total amount of such Tax for the period in question multiplied by a fraction, the numerator of which is the total number of days in such portion of such Straddle Period and the denominator of which is the total number of days in such Straddle Period; and (ii) in the case of sales, value added and similar transaction-based Taxes (other than Transfer Taxes), such Taxes shall be allocated to the portion of the Straddle Period in which the relevant transaction occurred.

 

SECTION 8.05.  Recordation of Transfer of Intellectual Property.  The Company shall be responsible, at its sole cost and expense, for all applicable recordations of the assignment of the Transferred Intellectual Property.

 

SECTION 8.06.  Retention of Certain Records.  Parent may retain all Records prepared in connection with the Transaction, and such Records shall be Excluded Records for all purposes hereunder.

 

ARTICLE IX
  INDEMNIFICATION

 

SECTION 9.01.  Indemnification by Parent.  From and after the Closing, Parent shall indemnify the Company and its Affiliates and each of their respective officers, directors, employees, agents and representatives against and hold them harmless from any loss, liability, claim, damage or expense (including reasonable legal fees and expenses) (“Losses”) suffered or incurred by any such indemnified party to the extent arising from: (i) any breach of any representation or warranty of Parent contained in Sections 4.01, 4.02, 4.04 or 4.05 of this Agreement which survives the Closing; and (ii) any breach of any covenant of Parent contained in this Agreement requiring performance after the Closing Date.  Notwithstanding the forgoing: (a) Parent shall not have any liability under clauses (i) or (ii) of this Section 9.01 unless the aggregate of all Losses for which Parent would be liable, but for this clause (a), exceeds on a cumulative basis an amount equal to $50,000, and then only to the extent of any such excess; (b) Parent shall not have any liability under clause (i) of this Section 9.01 for any individual item (or series of related items) where the Losses relating thereto are less than $10,000 and such items shall not be aggregated for purposes of the foregoing clause (a) of this Section 9.01; (c) Parent shall not have any liability under clauses (i) or (ii) of this Section 9.01 for any breach of a representation or warranty if the Company had knowledge of such breach at the time of the Closing and such breach would have given rise to a failure to be satisfied of the condition to the Company’s obligations set forth in Section 3.01(a); (d) Parent’s liability under clauses (i) and (ii) of this Section 9.01 shall in no event exceed $50,000; and (e) Parent shall not have any liability under this Section 9.01 to the extent the liability or obligation arises as a result of (x) any action taken or omitted to be taken by the Company or any of its Affiliates or (y) any breach of a representation or warranty that is covered by a certificate delivered pursuant to Section 3.01(a) except to the extent Parent had knowledge that such representation or warranty was not true and correct in all material respects when made.

 

SECTION 9.02.  Indemnification by the Company.  From and after the Closing, the Company shall indemnify Parent and its Affiliates and each of their respective officers, directors, employees, agents and representatives against and hold them harmless from any Losses suffered or incurred by any such indemnified party to the extent arising from: (i) any breach of any representation or warranty of the Company which survives the Closing contained in this Agreement; (ii) any breach of any covenant of the Company contained in this Agreement requiring performance after the Closing

 

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Date; (iii) any Assumed Liability; and (iv) any claim arising from the Company’s operations of the Business subsequent to Closing.

 

SECTION 9.03.  Limitations on Liability; Cooperation.

 

(a)                                 Notwithstanding any provision herein, neither Parent nor the Company shall in any event be liable to the other party or its Affiliates, officers, directors, employees, agents or representatives on account of any indemnity obligation set forth in Section 9.01 or Section 9.02 for any indirect, consequential, special, incidental or punitive damages (including lost profits, loss of use, damage to goodwill or loss of business).

 

(b)                                 The Company and Parent shall cooperate with each other with respect to resolving any claim or liability with respect to which one party is obligated to indemnify the other party hereunder including by making commercially reasonable efforts to mitigate or resolve any such claim or liability.

 

(c)                                  The Company acknowledges and agrees that: (i) other than the representations and warranties of Parent specifically contained in this Agreement, there are no representations or warranties of Parent, or any other person either expressed or implied with respect to the Transaction, the Product, the Acquired Assets or the Assumed Liabilities; and (ii) it shall have no claim or right to indemnification pursuant to Section 9.01 with respect to any information, documents or materials (other than this Agreement and the Parent Disclosure Schedule) furnished by Parent or any of its officers, directors, employees, agents or advisors to the Company and its representatives.

 

(d)                                 The Company further acknowledges and agrees that, should the Closing occur, its sole and exclusive remedy with respect to any and all claims relating to this Agreement, any Other Transaction Document, the Transaction, any document or certificate delivered in connection herewith, the Product, the Acquired Assets and the Assumed Liabilities or any federal, state, local or foreign statute, law, ordinance, rule or regulation or otherwise (other than claims of, or causes of action arising from, fraud) shall be pursuant to the indemnification provisions set forth in this Article IX.  In furtherance of the foregoing, the Company hereby waives, from and after the Closing, to the fullest extent permitted under Applicable Law, any and all rights, claims and causes of action (other than claims of, or causes of action arising from, fraud) it or any of its Affiliates may have against Parent arising under or based upon this Agreement, any Other Transaction Document, the Transaction, any document or certificate delivered in connection herewith, the Product, the Acquired Assets and the Assumed Liabilities or any federal, state, local or foreign statute, law, ordinance, rule or regulation or otherwise (except pursuant to the indemnification provisions set forth in this Article IX).

 

SECTION 9.04.  Losses Net of Insurance, etc.  The amount of any Losses for which indemnification is provided under this Article IX shall be net of any amounts recovered or recoverable by the indemnified party under insurance policies with respect to such Losses and shall be reduced to take account of any net Tax benefit (including as a result of any basis adjustment) actually realized by the indemnified party arising from the incurrence or payment of any such Loss.  In computing the amount of any such Tax benefit, the indemnified party shall be deemed to recognize all other items of income, gain, loss, deduction or credit before recognizing any item arising from the incurrence or payment of any indemnified Losses.

 

SECTION 9.05.  Termination of Indemnification.

 

(a)                                 The obligations to indemnify and hold harmless a party hereto pursuant to: (i) Sections 9.0l(i) and 9.02(i) shall terminate when the applicable representation or warranty terminates

 

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pursuant to paragraph (b) below; and (ii) the other clauses of Sections 9.01 and 9.02 shall not terminate; provided, however, that as to clause (i) of this sentence such obligations to indemnify and hold harmless shall not terminate with respect to any item as to which the person to be indemnified or the related party thereto shall have, before the expiration of the applicable period, previously made a claim by delivering a notice of such claim (stating in reasonable detail the basis of such claim) to the indemnifying party.

 

(b)                                 The representations and warranties in this Agreement shall survive the Closing solely for purposes of Sections 9.01 and 9.02 and shall terminate at the close of business on August 17, 2013.

 

SECTION 9.06.  Procedures Relating to Indemnification for Third Party Claims.

 

(a)                                 In order for a party to be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim or demand made by any person against the indemnified party (a “Third Party Claim”), such indemnified party must notify the indemnifying party in writing, and in reasonable detail, of the Third Party Claim within ten (10) business days after receipt by such indemnified party of written notice of the Third Party Claim; provided, however, that failure to give such notification shall not affect the indemnification provided hereunder except to the extent the indemnifying party shall have been prejudiced as a result of such failure (except that the indemnifying party shall not be liable for any expenses incurred during the period in which the indemnified party failed to give such notice).  Thereafter, the indemnified party shall deliver to the indemnifying party, promptly after the indemnified party’s receipt thereof, copies of all notices and documents (including court papers) received by the indemnified party relating to the Third Party Claim.

 

(b)                                 If a Third Party Claim is made against an indemnified party, the indemnifying party shall be entitled to participate in the defense thereof and, if it so chooses, to assume the defense thereof with counsel selected by the indemnifying party; provided, however, that such counsel is not reasonably objected to by the indemnified party.  Should the indemnifying party so elect to assume the defense of a Third Party Claim, the indemnifying party shall not be liable to the indemnified party for legal expenses subsequently incurred by the indemnified party in connection with the defense thereof.  If the indemnifying party assumes such defense, the indemnified party shall have the right to participate in the defense thereof and to employ counsel (not reasonably objected to by the indemnifying party), at its own expense, separate from the counsel employed by the indemnifying party, it being understood that the indemnifying party shall control such defense.  The indemnifying party shall be liable for the fees and expenses of counsel employed by the indemnified party for any period during which the indemnifying party has failed to assume the defense thereof (other than during the period prior to the time the indemnified party shall have given notice of the Third Party Claim as provided above).

 

(c)                                  If the indemnifying party so elects to assume the defense of any Third Party Claim, all of the indemnified parties shall cooperate with the indemnifying party in the defense or prosecution thereof.  Such cooperation shall include the retention and (upon the indemnifying party’s request) the provision to the indemnifying party of records and information which are reasonably relevant to such Third Party Claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  Whether or not the indemnifying party shall have assumed the defense of a Third Party Claim, the indemnified party shall not admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the indemnifying party’s prior written consent (which consent shall not be unreasonably withheld).

 

SECTION 9.07.  Procedures Related to Indemnification for Other Claims.  In the event any indemnified party should have a claim against any indemnifying party under Section 9.01 or 9.02 that does not involve a Third Party Claim being asserted against or sought to be collected from such

 

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indemnified party, the indemnified party shall deliver notice of such claim with reasonable promptness to the indemnifying party.  The failure by any indemnified party to so notify the indemnifying party shall not relieve the indemnifying party from any liability which it may have to such indemnified party under Section 9.01 or 9.02, except to the extent that the indemnifying party demonstrates that it has been materially prejudiced by such failure.  If the indemnifying party disputes its liability with respect to such claim, the indemnifying party and the indemnified party shall proceed in good faith to negotiate a resolution of such dispute and, if not resolved through negotiations, such dispute shall be resolved by litigation in an appropriate court of competent jurisdiction.

 

ARTICLE X
  TERMINATION

 

SECTION 10.01.  Termination.  This Agreement may be terminated and the Transaction may be abandoned at any time prior to the Closing by:

 

(a)                                 mutual written consent of Parent and the Company;

 

(b)                                 Parent, if any of the conditions set forth in Section 3.02 shall have become incapable of fulfillment, and shall not have been waived by Parent;

 

(c)                                  the Company, if any of the conditions set forth in Section 3.01 shall have become incapable of fulfillment, and shall not have been waived by the Company; or

 

(d)                                 either party hereto, if the Closing does not occur on or prior to June 30, 2013;

 

(e)                                  either party hereto, in the event of the institution against the other party of any proceeding under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar Applicable Law affecting the rights of creditors generally, which proceeding is not dismissed within thirty (30) days of filing, or the institution by the other party of any proceeding under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar Applicable Law affecting the rights of creditors generally or the making by the other party of a composition or an assignment or trust mortgage for the benefit of creditors;

 

provided, however, that the party seeking termination pursuant to clause (b), (c) or (d) is not in breach in any material respect of any of its representations, warranties, covenants or agreements contained in this Agreement.

 

SECTION 10.02.  Return of Confidential Information.  If this Agreement is terminated as provided herein, the Company shall return to Parent all documents and other material received by the Company, its Affiliates and their respective representatives from Parent, its Affiliates or their respective representatives relating to the transactions contemplated hereby and by the Other Transaction Documents, whether so obtained before or after the execution hereof.

 

SECTION 10.03.  Consequences of Termination.  In the event of the termination of this Agreement by Parent or the Company pursuant to this Article X, written notice thereof shall forthwith be given to the other party and this Agreement shall be terminated, without further action by either party.  If this Agreement is terminated as described in this Article X, this Agreement shall become void and of no further force or effect, except for the provisions of: (i) Section 8.03 relating to publicity; (ii) this Article X; (iii) Section 11.03 relating to certain expenses; (iv) Section 11.04 relating to attorney fees and expenses; and  (v) Section 11.10 relating to finder’s fees and broker’s fees.

 

21

 

Nothing in this Article X shall be deemed to release either party from any liability for any intentional and material breach by such party of the terms and provisions of this Agreement prior to such termination or to impair the right of either party to compel specific performance by the other party of its obligations under this Agreement.

 

ARTICLE XI
  MISCELLANEOUS

 

SECTION 11.01.  Assignment.  This Agreement and the rights and obligations hereunder shall not be assignable or transferable by the Company or Parent (including by operation of law in connection with a merger, consolidation or sale of substantially all the assets of the Company or Parent) without the prior written consent of the other party hereto; provided, however, the Company may assign its rights and obligations hereunder to any transferee of all or substantially all of the assets of the Company that relate to the Product pursuant to a merger, consolidation or otherwise, to the extent that the transferee assumes in writing all of the obligations of the Company that relate to the Product under this Agreement, in each case without the consent of Parent.  Any attempted assignment in violation of this Section 11.01 shall be void.

 

SECTION 11.02.  No Third-Party Beneficiaries.  This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein expressed or implied shall give or be construed to give to any person, other than the parties hereto and such assigns, any legal or equitable rights hereunder.

 

SECTION 11.03.  Expenses.  Whether or not the Transaction is consummated, and except as otherwise specifically provided in this Agreement, all costs and expenses incurred in connection with this Agreement and the Transaction shall be paid by the party incurring such costs or expenses.

 

SECTION 11.04.  Attorney Fees.  A party in breach of this Agreement shall, on demand, indemnify and hold harmless the other party for and against all reasonable out-of-pocket expenses, including legal fees, incurred by such other party by reason of the enforcement and protection of its rights under this Agreement.  The payment of such expenses is in addition to any other relief to which such other party may be entitled.

 

SECTION 11.05.  Amendments.  This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties hereto.  By an instrument in writing, the Company, on the one hand, or Parent, on the other hand, may waive compliance by the other with any term or provision of this Agreement that such other party was or is obligated to comply with or perform.

 

SECTION 11.06.  Notices.  All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by prepaid telex, cable or telecopy or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service and shall be deemed given when so delivered by hand or facsimile, or if mailed, three days after mailing (one business day in the case of overnight mail or overnight courier service), as follows:

 

(a)                                 if to Parent,

 

Synergy Pharmaceuticals Inc.
 420 Lexington Avenue, Suite 2012

 

22

 

New York, New York 10170
 Telephone:  (212) 297-0020
 Facsimile:  (212) 297-0019

Attention:  Gary Jacob

 

with a copy to:

 

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, New York 10006

Telephone:  (212) 930-9700

Facsimile:  (212) 930-9725

Attention:  Jeffrey J. Fessler, Esq.

 

(b)                                 if to the Company,

 

ContraVir Pharmaceuticals, Inc.
 420 Lexington Avenue, Suite 2012
 New York, New York 10170
 Telephone:  (212) 297-0020
 Facsimile:  (212) 297-0019
 Attention: Bernard S. Denoyer

 

SECTION 11.07.  Interpretation; Exhibits, Schedules.  The definitions of the terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise: (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth therein); (ii) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof; (iii) all references herein to Articles, Sections, Appendices, Exhibits or Schedules shall be construed to refer to Articles, Sections, Appendices, Exhibits and Schedules of this Agreement; and (iv) the headings contained in this Agreement, the Parent Disclosure Schedule, other Schedules or any Appendix or Exhibit are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Any matter set forth in any provision, subprovision, section or subsection of the Parent Disclosure Schedule shall be deemed set forth for all purposes of the Parent Disclosure Schedule to the extent relevant and reasonably apparent.  The Parent Disclosure Schedule, all other Schedules and all Appendices and Exhibits annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein.  Any capitalized terms used in the Parent Disclosure Schedule, any other Schedule or any Appendix or Exhibit annexed hereto but not otherwise defined therein, shall have the meaning as defined in this Agreement.  In the event of an ambiguity or a question of intent or interpretation, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

23

 

SECTION 11.08.  Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the other party.  The exchange of copes of this Agreement or amendments thereto and of signature pages by facsimile or email transmission in portable digital format (or similar format) shall constitute effective execution and delivery of such instrument(s) as to the parties and may be used in lieu of the original Agreement or amendment for all purposes.  Signatures of the parties transmitted by facsimile or by email transmission in portable digital format (or similar format) shall be deemed to be their original signatures for all purposes.

 

SECTION 11.09.  Entire Agreement.  This Agreement, together with the Other Transaction Documents, contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter.  Neither party shall be liable or bound to any other party in any manner by any representations, warranties or covenants relating to such subject matter except as specifically set forth herein or therein.

 

SECTION 11.10.  Fees.  The Company hereby represents and warrants that no brokers or finders that have acted for the Company in connection with this Agreement or the Transaction or that may be entitled to any brokerage fee, finder’s fee or commission in respect thereof.

 

SECTION 11.11.  Severability.  If any provision of this Agreement (or any portion thereof) or the application of any such provision (or any portion thereof) to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof (or the remaining portion thereof) or the application of such provision to any other persons or circumstances.

 

SECTION 11.12.  Consent to Jurisdiction.  Each of the Company and Parent irrevocably submits to the exclusive jurisdiction of: (i) the Supreme Court of the State of New York, New York County; and (ii) the United States District Court for the Southern District of New York, for the purposes of any suit, action or other proceeding arising out of this Agreement, the Other Transaction Documents or any transaction contemplated hereby or thereby.  Each of the Company and Parent agrees to commence any such action, suit or proceeding either in the United States District Court for the Southern District of New York or if such suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the Supreme Court of the State of New York, New York County.  Each of the Company and Parent further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective address(es) set forth above shall be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has submitted to jurisdiction in this Section 11.12.  Each of the Company and Parent irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement, the Other Transaction Documents or the transactions contemplated hereby or thereby in: (a) the Supreme Court of the State of New York, New York County; or (b) the United States District Court for the Southern District of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

 

SECTION 11.13.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT,

 

24

 

THE OTHER TRANSACTION DOCUMENTS OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HERETO: (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER; AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.13.

 

SECTION 11.14.  Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed entirely within such state, without regard to the conflicts of law principles of such state.

 

[Remainder of page intentionally left blank; signature page follows.]

 

25

 

IN WITNESS WHEREOF, Parent and the Company have caused their duly authorized representatives to executed this Agreement as of the date first written above.

 

	
 
    	
SYNERGY PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gary S. Jacob
    
	
 
    	
 
    	
Name:
    	
Gary S. Jacob
    
	
 
    	
 
    	
Title:
    	
President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CONTRAVIR PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bernard F. Denoyer
    
	
 
    	
 
    	
Name:
    	
Bernard F. Denoyer
    
	
 
    	
 
    	
Title:
    	
Chief Financial Officer
    

 

26

 

EXHIBIT A

 

CERTAIN DEFINITIONS

 

“Accounts Payable” means all accounts payable and liabilities, obligations and commitments, regardless of when asserted, billed or imposed, of Parent as of the end of the day immediately prior to the Closing Date.

 

“Accounts Receivable” means all accounts receivable, notes receivable and other indebtedness due and owed by any third party to Parent as of the end of the day immediately prior to the Closing Date, including all trade accounts receivable representing amounts receivable in respect of goods shipped, products sold or services rendered prior to the day immediately prior to the Closing Date and the full benefit of any security for such accounts or debts.

 

“Affiliate” means, with respect to any specified person, any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person; and for the purposes of this definition, “control” when used with respect to any specified person means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Assumption Agreement” means the assumption agreement to be executed by the Company to evidence its assumption of the Assumed Liabilities.

 

“Bill of Sale” means a bill of sale and assignment with respect to the Acquired Assets.

 

“BLA” means a Biologic License Application, as defined in the United States Federal Food, Drug and Cosmetics Act and the regulations promulgated thereunder.

 

“business day” means any day, other than a Saturday or Sunday, on which commercial banks are not required or authorized to close in the City of New York.

 

“Dollars” or “$” means lawful money of the United States of America.

 

“Environmental Law” means any statutes, laws, ordinances, rules, orders and regulations of any Governmental Entity relating to pollution, protection of the environment or human health or the preservation or restoration of natural resources.

 

“Environmental Liability” means any Liability, loss, demand, claim or cost, contingent or otherwise (including any Liability for judgments, orders, damages, costs of investigation, remediation or monitoring, medical monitoring, natural resources damages, fines, penalties, professional fees, or settlements), and relating to, arising under or resulting from: (i) any actual or alleged (a) compliance or noncompliance with any Environmental Law or Environmental Permit, (b) generation, use, storage, management, treatment, transportation or disposal of any Hazardous Material or (c) presence, release or threatened release of, or exposure to, any Hazardous Material; or (ii) any contract, agreement, or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental Permit” means any certificate, consent, permit, license, registration, approval or other authorization issued under or pursuant to Environmental Laws or otherwise relating to the use, emission or discharge of Hazardous Materials.

 

27

 

“GAAP” means generally accepted accounting principles in the United States.

 

“Hazardous Material” means any hazardous, toxic or deleterious chemical, material, substance or waste, including radioactive, explosive, medical or biohazardous materials or wastes, petroleum and its byproducts and distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, or urea formaldehyde foam insulation.

 

“IP Assignment Documents” means with respect to any Transferred Intellectual Property, intellectual property (patent, trademark, copyright and domain name assignments, as applicable) assignments of such Transferred Intellectual Property.

 

“MAA” means a Marketing Authorization Application filed with the applicable Governmental Entity in the European Union for authorization to market and sell a drug or medicine for human patients.

 

“Manufacturing Knowhow” means knowhow, technology, data, designs, process and methods relating to the manufacture and production of the Product.

 

“Material Adverse Effect” means any change, effect, event or occurrence or state of facts that individually or taken together with other changes, effects, events or occurrences or state of facts: (i) is, or would reasonably be expected to be, materially adverse to the Business, the Product and the Acquired Assets, taken as a whole; or (ii) would prevent or materially impede, interfere with, hinder or delay the consummation by Parent of the Transaction, other than, with respect to any change, effect, event or occurrence or state of facts having the results described in the foregoing clause (i), any change, effect, event or occurrence or state of facts relating to (A) economic, financial market or geographical conditions in general (including national or international conditions), (B) changes in Applicable Law or GAAP or other applicable accounting regulations or principles or interpretations thereof, (C) changes in conditions generally affecting the pharmaceutical or biotechnology industries, (D) the announcement of this Agreement and the Transaction and the performance of and compliance with the terms of this Agreement, (E) any acts or omissions of Parent taken after the date of this Agreement with the prior written consent of the Company pursuant to Section 5.02, (F) any changes in global or national political conditions, (G) any outbreak or escalation of hostilities, any occurrence or threat of acts commonly referred to as terrorist attacks or any armed hostilities associated therewith and any national or international calamity or emergency or any escalation thereof or (H) any of the matters described in Section 4.11 of the Parent Disclosure Schedule.

 

“NDA” means a new drug application for a drug filed in accordance with 21 C.F.R. Part 314, and all supplements filed pursuant to the requirements of the FDA, including all documents, data and other information concerning the applicable drug which are necessary for FDA approval to market such drug in the United States, and any equivalent application submitted to any other health authority.

 

“Other Transaction Documents” means: (i) the Bill of Sale; (ii) the Assumption Agreement; and (iii) the IP Assignment Documents.

 

“person” means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other entity.

 

“Product Formulae” means the specific percentages and specifications for the mixing and preparation of the ingredients used in the manufacture of the Product, taken as a whole and not in part.  For the avoidance of doubt: (i) the Product Formulae does not include Manufacturing Knowhow associated with the manufacture of the Product to which such Product Formulae relates; and (ii) does not

 

28

 

refer separately to a particular ingredient or specification or combination of ingredients and/or specifications that do not comprise the entire, specific Product Formulae.

 

“subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person or by another subsidiary of such person.

 

“United States” means the United States of America, including its territories and possessions (excluding all military bases and other military installations outside of the continental United States, Alaska, Hawaii and Washington, D.C.).

 

*                                         *                                         *

 

29Exhibit 10.2

 

AMENDED AND RESTATED

SHARED SERVICES AGREEMENT

 

This Amended and Restated Shared Services Agreement, dated as of August 5, 2013, but effective as of May 15, 2013 (the “Effective Date”), is by and between ContraVir Pharmaceuticals, Inc., a Delaware corporation (“ContraVir”), and Synergy Pharmaceuticals Inc., a Delaware corporation (“Synergy”). ContraVir and Synergy are sometimes referred to herein separately as a “Party” and together as the “Parties”.

 

RECITALS

 

WHEREAS, ContraVir and Synergy are parties to that certain shared services agreement, dated July 8, 2013, but effective as of May 16, 2013 (the “Existing Agreement”);

 

WHEREAS, pursuant to the Existing Agreement, Synergy agreed to directly or indirectly provides certain administrative, legal, tax, financial, information technology and other services to ContraVir;

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, and for other valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, Synergy and ContraVir hereby agree that the Existing Agreement is amended and restated in its entirety as follows:

 

ARTICLE I.

DEFINITIONS

 

Section 1.01 Definitions. As used in this Agreement, the following terms have the following meanings, applicable both to the singular and the plural forms of the terms described. All capitalized terms not otherwise defined herein shall have the meaning set forth in the Master Separation Agreement.

 

“Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal, other than any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation relating to taxes.

 

“Additional Services” has the meaning set forth in Section 2.02.

 

“Affiliate” means any entity that directly or indirectly owns, is owned by, or is under the common ownership with a Party, at any time during the term of this Agreement. “Owns”, “owned” or “ownership” means direct or indirect possession of more than fifty percent (50%) of the votes of holders of a corporation’s voting securities, or a comparable equity or other ownership interest in any other type of entity; provided that for the purposes of this Agreement, Synergy and its Affiliates shall not constitute Affiliates of ContraVir or its Affiliates, and vice-versa.

 

“Agreement” means this Shared Services Agreement, together with the schedules and exhibits

 

 

hereto, as the same may be amended and supplemented from time to time in accordance with the provisions hereof.

 

“Change of Control” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock, by contract or otherwise) of in excess of 50% of the voting securities of either Party, (b) either Party merges into or consolidates with any other Person, or any Person merges into or consolidates with either Party and, after giving effect to such transaction, the stockholders of either Party immediately prior to such transaction own less than 50% of the aggregate voting power of such Party or the successor entity of such transaction, or (c) either Party sells or transfers all or substantially all of its assets to another Person and the stockholders of such Party immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction. For purposes of this definition, (i) no effect shall be given to the proviso to the definition of “Affiliate” set forth herein and (ii) the distribution of any ContraVir securities by Synergy on or after the date hereof shall not constitute a “Change of Control” under the terms and conditions of this Agreement.

 

“Code” means the Internal Revenue Code of 1986 (or any successor statute), as amended from time to time, and the regulations promulgated thereunder.

 

“Contract” means any contract, agreement, lease, license, sales order, purchase order, instrument or other commitment that is binding on any Person or any part of such Person’s property under applicable law.

 

“ContraVir” has the meaning set forth in the preamble to this Agreement.

 

“ContraVir Business” means the business presently conducted by ContraVir as of the Effective Date.

 

“ContraVir Covered Parties” has the meaning set forth in Section 3.01.

 

“ContraVir Entities” means ContraVir Pharmaceuticals, Inc. and its Subsidiaries, from time to time, and “ContraVir Entity” means any one of the ContraVir Entities.

 

“ContraVir Indemnified Person” means each of the ContraVir Entities and their respective directors, officers, agents, employees, and Subcontractors.

 

“ContraVir Personnel” means any Synergy employee, agent or Subcontractor providing the Synergy Services.

 

“Distribution” means a distribution by Synergy of common stock (and preferred stock, if any) of ContraVir or common stock (and preferred stock, if any) of a Person that is a successor to ContraVir, which distribution is to holders of common stock of Synergy.

 

“Distribution Date” means the date on which a Distribution occurs.

 

“Effective Date” has the meaning set forth in the preamble to this Agreement.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

2

 

“Force Majeure” has the meaning set forth in Section 9.05(a).

 

“Governmental Authority” means any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority.

 

“Initial Term” has the meaning set forth in Section 8.01.

 

“Insurance Policies” means insurance policies pursuant to which a Person makes a true risk transfer to an insurer.

 

“Insurance Proceeds” means those monies paid from one of the Synergy Insurance Policies.

 

“Insurance Transition Period” has the meaning set forth in Section 3.01.

 

“Laws” has the meaning set forth in Section 4.06(a).

 

“Lease” or “Leases” has the meaning set forth in Section 4.01(a).

 

“Leased Premises” has the meaning set forth in Section 4.01(a).

 

“Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured, liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any Contract or tort based on negligence or strict liability) and whether or not the same would be required by generally accepted principles and accounting policies to be reflected in financial statements or disclosed in the notes thereto.

 

“License” has the meaning set forth in Section 4.01(a).

 

“License Area” or “License Areas” has the meaning set forth in Section 4.01(a).

 

“License Commencement Date” has the meaning set forth in Section 4.02(a).

 

“License Expiration Date” has the meaning set forth in Section 4.02(a).

 

“License Period” has the meaning set forth in Section 4.02(a).

 

“Loss” and “Losses” mean any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims, payments, fines, interest, costs and expenses (including, without limitation, the costs and expenses of any and all Actions and demands, assessments, judgments, settlements and compromises relating thereto and the costs and expenses of attorneys’, accountants’, consultants’ and other professionals’ fees and expenses incurred in the investigation or defense thereof or the enforcement of rights hereunder), including direct, consequential and punitive damages.

 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement.

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof.

 

3

 

“Personal Information” has the meaning set forth in Section 2.05.

 

“Premises” has the meaning set forth in Section 4.01(a).

 

“Renewal Term” has the meaning set forth in Section 7.01.

 

“Schedule 4.01” means the schedule attached hereto, as amended from time to time, which lists the Leased Premises of Synergy.

 

“Subcontractor” has the meaning set forth in Section 8.04.

 

“Subsidiary” of any Person means a corporation, limited liability company, joint venture, partnership, trust, association or other entity in which such Person: (1) beneficially owns, either directly or indirectly, more than fifty percent (50%) of (A) the total combined voting power of all classes of voting securities of such entity, (B) the total combined equity interests, or (C) the capital or profits interest, in the case of a partnership; or (2) otherwise has the power to vote, either directly or indirectly, sufficient securities to elect a majority of the board of directors or similar governing body. In the case of ContraVir, “Subsidiary” means any Subsidiary existing as of the Effective Date or that may be formed or acquired subsequent to the Effective Date, so long as, in either case, such entity remains a Subsidiary of ContraVir.

 

“Synergy” has the meaning set forth in the preamble to this Agreement.

 

“Synergy Entities” means Synergy and its Subsidiaries (other than ContraVir), and “Synergy Entity” means any one of the Synergy Entities in place on the Effective Date and any entity which becomes a Subsidiary of Synergy thereafter.

 

“Synergy Indemnified Person” has the meaning set forth in Section 6.02(a).

 

“Synergy Insurance Policy” or “Synergy Insurance Policies” has the meaning set forth in Section 3.01.

 

“Synergy Personnel” means any Synergy employee, agent or Subcontractor providing the Synergy Services.

 

“Synergy Services” means the various administrative, financial (including internal audit and payroll functions), legal, tax, insurance, facility, information technology and other services to be provided by, or on behalf of, Synergy or its Subsidiaries to ContraVir and its Subsidiaries as described in this Agreement, together with any Licenses or Additional Services provided by, or on behalf of, the Synergy Entities pursuant to this Agreement.

 

“Systems” has the meaning set forth in Section 2.04.

 

Section 1.02 Internal References. Unless the context indicates otherwise, references to Articles, Sections and paragraphs shall refer to the corresponding Articles, Sections and paragraphs in this Agreement, references to exhibits or schedules shall refer to the corresponding exhibits or schedules in this Agreement, and references to the Parties shall mean the Parties to this Agreement.

 

4

 

ARTICLE II.

PURCHASE AND SALE OF SERVICES

 

Section 2.01 Purchase and Sale of Synergy Services.

 

(a) Subject to the terms and conditions of this Agreement and in consideration of the costs for the Synergy Services described below, Synergy agrees to provide or cause to be provided to ContraVir and its Subsidiaries, and ContraVir agrees to purchase from Synergy, the Synergy Services, until such Synergy Services are terminated in accordance with the provisions hereof.

 

(b) The Parties acknowledge and agree that (i) the Synergy Services to be provided, or caused to be provided, by Synergy under this Agreement shall, at ContraVir’s request, be provided directly to ContraVir or its Subsidiaries and (ii) Synergy may satisfy its obligation to provide or to procure the Synergy Services hereunder by causing one or more of its Subsidiaries to provide or to procure such services. With respect to the Synergy Services provided to, or procured on behalf of, any ContraVir Subsidiary, ContraVir agrees to pay on behalf of such Subsidiary all amounts payable by or in respect of such Synergy Services pursuant to this Agreement, including Section 5.03 hereof.

 

Section 2.02 Additional Services. In addition to the Synergy Services to be provided or procured in accordance with Section 2.01, if requested by ContraVir, and to the extent that Synergy and ContraVir may mutually agree in writing, Synergy shall provide or cause to be provided additional services to ContraVir (“Additional Services”). The scope of any such Additional Services, as well as the costs and other terms and conditions applicable to such Additional Services, shall be as mutually agreed by Synergy and ContraVir prior to the provision of such Additional Services.

 

Section 2.03 General Standard of Synergy Service. Except as otherwise agreed to in writing by the Parties or as described in this Agreement, the Parties agree that the nature, quality, degree of skill and standard of care applicable to the delivery of the Synergy Services hereunder, and the skill levels of the Synergy Personnel providing such Synergy Services, shall be substantially the same as or consistent with those which Synergy exercises or employs in providing similar services provided within or to any Synergy Entity. Notwithstanding the foregoing, if there is an increase in the complexity of a Synergy Service (whether as a result of increased quantity or quality, changing frequency or regulatory requirements or otherwise), ContraVir acknowledges and agrees that such Synergy Service may not be provided within the same amount of time as it had previously taken during such period, and, in such a case, Synergy shall use commercially reasonable efforts to provide such Synergy Service in a timely manner. Notwithstanding anything herein to the contrary, the Synergy Services are to be provided in a manner that does not disparately treat ContraVir (or its Subsidiaries or its or their personnel or business) as compared to Synergy’s treatment of itself (or its Subsidiaries or its or their personnel or business) when it is providing such Synergy Service.

 

Section 2.04 IT Systems. While using or accessing any computers, systems, software, networks, information technology or related infrastructure or equipment (including any data stored thereon or transmitted thereby) (“Systems”) of Synergy (whether or not such use or access is provided as a Synergy Service), ContraVir shall, and shall cause each of its Subsidiaries and their respective ContraVir Personnel to, adhere in all respects to Synergy’s processes, policies and procedures (including any of the foregoing with respect to Confidential Information, data, communications and system privacy, operation, security and proper use) as in effect on the Effective Date or as communicated or otherwise made available to ContraVir from time to time in writing.

 

Section 2.05 Privacy Laws and Personal Information. In connection with the performance or receipt of the Synergy Services under this Agreement, the Parties acknowledge and agree that each Party

 

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and their Subsidiaries are or may be subject to laws and regulations governing the privacy and security of personal or personally identifiable information and related records of their employees, investors, customers and prospective customers (“Personal Information”). Accordingly, each Party, on behalf of itself and its Subsidiaries, agrees to and shall (i) ensure that its employees, agents, and Subcontractors, including third party service providers, cooperate with each other with respect to their obligations under such applicable privacy laws and regulations, and (ii) comply with all provisions of such applicable privacy laws and regulations, in each case relating to the collection, storage, use, processing, disclosure or disposal of Personal Information provided to or accessible by a Party, their Subsidiaries and their respective employees, agents, and Subcontractors in the course of performing under this Agreement. For the avoidance of doubt, all Personal Information shall also be protected as Confidential Information to the extent such treatment provides further protection to the information against unauthorized use or disclosure.

 

ARTICLE III.

INSURANCE MATTERS

 

Section 3.01 ContraVir Insurance Coverage During Transition Period. Throughout the period beginning on the Effective Date and ending upon the first to occur of the Distribution Date, the termination or expiration of this Agreement in accordance with ARTICLE VII  hereof, or such other date as may be required by applicable laws (the “Insurance Transition Period”), Synergy shall continue to maintain at its own cost insurance coverage under Insurance Policies that cover and are for the benefit of the ContraVir Entities and their respective directors, officers and employees (the “ContraVir Covered Parties”) at the same levels that Synergy maintains such coverage for itself and the other Synergy Entities and their respective directors, officers and employees, including policies providing coverage for commercial general liability, statutory workers’ compensation, employer’s liability insurance, comprehensive automobile liability, property, and professional services liability (i.e., errors and omissions) (collectively, the “Synergy Insurance Policies”). The ContraVir Entities’ pro rata portion of all costs and expenses associated with the Synergy Insurance Policies shall be calculated in accordance with the allocation methodology described in Section 5.01.

 

Section 3.02 Cooperation; Payment of Insurance Proceeds to ContraVir; Agreement Not to Release Carriers. Each Party shall share such information as is reasonably necessary in order to permit the other Party to manage and conduct its insurance matters in an orderly fashion. Synergy, at the request of ContraVir, shall cooperate with and use its commercially reasonable efforts to assist ContraVir in recovering any Insurance Proceeds for claims relating to the ContraVir Business, the assets or liabilities of ContraVir, whether such claims arise under any Contract or agreement, by operation of law or otherwise, existing or arising from any past acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed before the Effective Date, on the Effective Date or during the Insurance Transition Period, and Synergy shall promptly pay any such recovered Insurance Proceeds to ContraVir. Neither Synergy nor ContraVir, nor any of their respective

 

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Subsidiaries, shall take any action which would intentionally jeopardize or otherwise interfere with the other Party’s ability to collect any Insurance Proceeds. Except as otherwise contemplated by this Agreement or any other agreement between the Parties with effect from and after the Effective Date, ContraVir shall not (and shall ensure that no affiliate of ContraVir shall) provide any insurance carrier with a release, or amend, modify or waive any rights under any such policy or agreement, if such release, amendment, modification or waiver would adversely affect any rights or potential rights of Synergy (or its Subsidiaries) thereunder. However, no right or obligation of either Party arising solely in connection with the recovery or collection of Insurance Proceeds or the provision to any insurance carrier of a release, amendment, modification or waiver of rights pursuant to this Section 3.02 shall (A) preclude any Synergy Entity or any ContraVir Entity from presenting any claim or from exhausting any policy limit, (B) except as otherwise required under the terms of this Agreement, require any Synergy Entity or any ContraVir Entity to pay any premium or other amount or to incur any Liability, or (C) except as otherwise required under the terms of this Agreement, require any Synergy Entity or ContraVir Entity to renew, extend or continue any policy in force.

 

Section 3.03 ContraVir Insurance Coverage After the Insurance Transition Period. After the expiration of the Insurance Transition Period, ContraVir shall be responsible for obtaining and maintaining Insurance Policies in respect of the ContraVir Entities’ risk of loss and such insurance arrangements shall be separate and apart from the Synergy Insurance Policies; provided that nothing herein shall be deemed to be a relinquishment of any rights of a ContraVir Covered Party under any Synergy Insurance Policies written on an occurrence basis issued prior to the termination of the Insurance Transition Period.

 

Section 3.04 Cooperation. Synergy and ContraVir shall cooperate with each other in all respects, and shall execute any additional documents which are reasonably necessary, to effectuate the provisions of this ARTICLE III.

 

Section 3.05 No Assignment or Waiver. This Agreement shall not be considered as an attempted assignment of any policy of insurance or as a contract of insurance and shall not be construed to waive any right or remedy of any Synergy Entity in respect of any Insurance Policy or any other contract or policy of insurance.

 

ARTICLE IV.

REAL ESTATE MATTERS

 

Section 4.01 Real Estate License.

 

(a) Synergy by certain lease agreements (the “Leases” and individually “Lease”), leases those certain spaces and is the current holder of the leasehold estates created thereby as described on Schedule 4.01 annexed hereto and incorporated herein (the “Leased Premises”). Synergy hereby grants to ContraVir a license (the “License”) to use and occupy those certain Leased Premises (collectively, the “Premises”) in which the ContraVir Business may be operated from time to time as designated in writing by the Parties, which writing shall be incorporated by reference herein (each space to be referred to herein as a “ License Area “ and collectively the “License Areas”), each of which is located in the Premises and rights of access thereto for the purposes hereinafter provided along with the right to use all equipment, furniture and fixtures, including communications and information systems office equipment, cabling and appurtenant items that are owned by Synergy and located in the License Areas as of the License Commencement Date

 

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(as such term is defined in Section 4.02 below), for the applicable License Period (as such term is defined in Section 4.02 below). In connection with its use of each License Area and to the extent applicable, ContraVir shall also have the non-exclusive right to use (i) in common with Synergy and the other occupants of the building in which the Premises are located, the common areas outside the Premises that Synergy has the right to use, and (ii) in common with the Synergy and the other occupants of the Premises, the hallways, stairways, elevators, restrooms, kitchens, break rooms, photocopy rooms, facsimile rooms, conference rooms and other areas of the Premises (including the equipment and supplies located therein) that may be reasonably necessary for ContraVir’s use of the Premises, except those areas that Synergy may reasonably designate as private.

 

(b) ContraVir has inspected and is familiar with the License Areas and accepts same and the contents thereof in their “as is” condition as of the License Commencement Date. Synergy shall not be required to perform any work or furnish any materials in order to prepare the License Areas for ContraVir’s occupancy.

 

Section 4.02 License Period.

 

(a) The License Period (the “License Period”) for each License Area shall commence on the date hereof (the “License Commencement Date”) and, subject to the provisions of subparagraphs (b) and (c) below (as and to the extent applicable), shall expire (subject to sooner termination as hereinafter provided) at 11:59 P.M. on the date (the “License Expiration Date”) that is the termination date under this Agreement or, with respect to any Leased Premises, any earlier date that is one (1) day prior to the expiration date of the term of the Lease covering the related License Area, unless sooner terminated pursuant to any term or provision hereof or pursuant to law.

 

(b) In the event the term of a Lease covering a License Area shall sooner terminate in accordance with the provisions thereof (e.g., by reason of casualty or condemnation, and the landlord under the Lease shall exercise a right of termination contained in the Lease, or Synergy, as the tenant thereunder shall exercise a right of termination thereunder), the License Period for the License Area shall automatically terminate on the date of such termination of such Lease. Synergy shall give ContraVir reasonable prior notice of any such termination.

 

Section 4.03 License Fee. ContraVir shall pay a license fee for the License Areas at rates to be calculated in accordance with the allocation methodology described in Section 6.01, which fee shall be paid in accordance with Section 6.03.

 

Section 4.04 Services. ContraVir acknowledges that, in some of locations of the License Areas, a third-party landlord provides services to such locations. Synergy shall reasonably cooperate with ContraVir so as to enable ContraVir to obtain such services, but the foregoing shall not require Synergy to institute any action or proceeding against a landlord. To the extent that any service to a License Area has been supplied directly by Synergy, then Synergy shall continue to provide such services to such License Area during the related License Period and ContraVir shall be responsible for its pro rata share of Synergy’s out-of-pocket costs in connection therewith. Synergy shall provide such services to such License Area in substantially the same manner and quality as Synergy has provided the same to the License Area prior to the License Commencement Date or in substantially the same manner and quality as Synergy provides such services to itself. Synergy hereby grants to ContraVir the right to receive all of the services and benefits with respect to the License Areas which are to be provided by the related landlord under the Leases. Notwithstanding the foregoing, although the Parties contemplate that the landlords will,

 

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in fact, perform their obligations under the Leases, in the event of any default or failure of such performance by any of the landlords, Synergy will, upon the specific written request of ContraVir, make demand upon such landlord(s) to perform its obligations under the related Lease.

 

Section 4.05 Uses. ContraVir shall use and occupy a License Area for any purpose permitted under applicable laws and governmental regulations and, with respect to the Leased Premises, as permitted as a permitted use under the related Lease or subleases, and for no other purpose except as may be reasonably agreed upon in writing by Synergy and ContraVir. Nothing in this paragraph shall require ContraVir to use and occupy a License Area, except to the extent Synergy is required to use or occupy same under the terms of the related Lease.

 

Section 4.06 Compliance with Law; Observance of Lease Provisions.

 

(a) ContraVir shall promptly comply with all present and future applicable laws and regulations of all state, Federal, municipal and local governments, departments, commissions and boards and any direction of any public officer pursuant to law, and all orders, rules and regulations of any Board of Fire Underwriters or any similar body (all of the foregoing being hereinafter collectively referred to as “ Laws “) having jurisdiction which shall impose any violation, order or duty upon Synergy or any landlord of Synergy with respect to the related License Area, to the extent only, however, that such compliance (i) relates to ContraVir’s manner of use of the related License Area as opposed to the mere use for the purposes herein permitted, and (ii) with respect to the Leased Premises, is required of the tenant under the related Lease. To the extent that ContraVir is not required to comply with any Laws pursuant to this subparagraph (a) above with respect to a License Area, Synergy shall comply with such Laws applicable to the related License Area or, if applicable, Synergy shall exercise reasonable efforts to require its third-party landlord to comply with such Laws (to the extent such compliance is the obligation of such landlord under the terms of the related Lease to Synergy). ContraVir shall not violate applicable provisions of any Lease governing the manner of use of the related License Area, the use of building elevators, building common areas, and similar provisions, so as not to cause a default thereunder.

 

(b) To the extent required under a Lease, Synergy shall obtain the consent of the related landlord for ContraVir to license the related License Area. This License is subject to, and ContraVir accepts this License subject to, all the terms, covenants, provisions, conditions and agreements contained in the Leases and the matters to which the related landlords are subject and subordinate, all of which are made a part of this Agreement as though fully set forth herein as if ContraVir were the Tenant named therein and Synergy were the landlord named therein. This License shall also be subject to, and ContraVir accepts this License also subject to, any amendments and supplements to the Leases hereafter made between any landlord and Synergy provided the same do not limit the rights or expand the obligations of ContraVir hereunder in any material respect without ContraVir’s consent (not to be unreasonably withheld). ContraVir covenants and agrees (i) to perform, observe and be bound by each and every covenant, condition and provision of the Leases as applicable to the related License Area (including the building rules and regulations) and (ii) that ContraVir will not do or cause to be done or suffer or permit its agents or employees to do any act or thing to be done which would or might cause the landlord or the rights of Synergy as tenant thereunder to any Lease be cancelled, terminated or forfeited or make Synergy liable for any damages, claim or penalty. Synergy (A) will not do or cause to be done or suffer or permit any act or thing to be done which would or might cause a Lease or the rights of ContraVir thereunder (through this Agreement) to be cancelled, terminated or forfeited or make ContraVir liable for damages, claims or penalty, (B) will not voluntarily terminate a Lease without the prior consent of ContraVir, which consent shall not be unreasonably withheld, and (C) shall deliver to ContraVir promptly upon receipt or delivery

 

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copies of all default notices under a Lease sent or received by Synergy.

 

Section 4.07 Repairs. ContraVir, throughout the License Period, shall take good care of the License Areas and the fixtures and appurtenances therein and, if applicable, as required of the tenant pursuant to the terms of the related Leases. Synergy shall make, or exercise reasonable efforts to cause to be made by such related landlord responsible for such repairs, all necessary structural and other repairs (for which ContraVir is not responsible pursuant to the provisions hereof) to the License Area.

 

Section 4.08 Damage and Destruction.

 

(a) Neither Synergy nor ContraVir shall have any responsibility to each other in the event of any damage to or theft of any equipment or property of the other Party unless required pursuant to the terms of  Section 4.09  or ARTICLE VII, and the Party incurring such loss shall look to its own insurance coverage, if any, for recovery in the event of any such damage, loss or theft (which, in the case of ContraVir, if such event occurs during the Insurance Transition Period, such insurance coverage shall mean the Synergy Insurance Policies).

 

(b) If a License Area is destroyed or damaged by fire or other casualty, the license fee as to such License Area shall abate (entirely if all or substantially all of the License Area is damaged and rendered untenantable and proportionately if only a portion of the License Area is damaged and rendered untenantable, except, with respect to the Leased Premises, in both cases only to the extent that Synergy’s rent under the related Lease is also abated) from the date of the casualty to the date by which Synergy (or a landlord under a related Lease) shall have repaired and restored the License Area or damaged portion thereof (but not ContraVir’s property and equipment therein) to substantially the same condition it was in prior to the occurrence of such casualty. In the event that any substantial portion of any License Area is rendered untenantable by casualty for a period in excess of four (4) months, or if the casualty occurs in the last year prior to the License Expiration Date for any License Area, then ContraVir may terminate the License with respect to such License Area. With respect to the Leased Premises, if the casualty or damage occasioned to the License Area, or to the Premises covered by a related Lease of which the damaged License Area forms a part, shall be so extensive as to entitle either or both of the landlord and Synergy to terminate the Lease, and either such landlord or Synergy shall terminate the Lease therefor in accordance with the terms thereof, then this Agreement with respect to such License Area shall automatically terminate on the Lease termination date, as provided in Section 4.02(b) hereof.

 

Section 4.09 Insurance/Indemnity.

 

(a) Upon the expiration of the Insurance Transition Period, ContraVir shall obtain and maintain in full force and effect throughout the related License Periods with respect to the related License Area the insurance (other than property insurance as to alterations in the Premises or equipment owned by Synergy in the Premises, which insurance Synergy shall carry) required to be maintained by Synergy under any related Lease. Upon request by Synergy, if ContraVir carries such insurance separate from Synergy, ContraVir shall provide evidence of such insurance to Synergy in accordance with the requirements of any such related Lease.

 

(b) With respect to each Leased Premises, ContraVir shall owe the same indemnification obligations to Synergy as set forth in the Lease covering the License Area as if the words “Owner” or “Landlord” and “Tenant “or “Lessee” or words of similar import, wherever the same appear in the related Lease pertaining to indemnification were construed to mean, respectively, “Synergy” and “ContraVir”.

 

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With respect to all Owned Premises and with respect to any Leased Premises where the related Lease is silent on the indemnification obligations running from the “Tenant” to “Landlord”, then for the related License Area, ContraVir shall indemnify, defend and hold each Synergy Indemnified Person harmless from and shall defend each Synergy Indemnified Person against all claims made or judicial or administrative actions filed which allege that any Synergy Indemnified Person is liable to the claimant (other than to the extent caused by or arising from a Synergy Indemnified Person’s gross negligence or willful misconduct) by reason of (i) any injury to or death of any person, or damage to or loss of property, or any other thing occurring on or about the License Area or the Premises, or in any manner growing out of, resulting from or connected with the use, condition or occupancy of, the License Area or the Premises, if caused by any negligent act or willful misconduct of ContraVir or its agents, partners, contractors, employees, permitted assignees, licensees, sublessees, invitees or any other person or entity for whose conduct ContraVir is legally responsible, (ii) violation by ContraVir of any contract or agreement to which ContraVir is a party in each case affecting the License Area or the occupancy or use thereof by ContraVir and (iii) violation of or failure to observe or perform any condition, provision or agreement of this ARTICLE IV on ContraVir’s part to be observed or performed hereunder. Synergy shall similarly indemnify, defend and hold each ContraVir Indemnified Person harmless from and shall defend each ContraVir Indemnified Person against all claims made or judicial or administrative actions filed which allege that any ContraVir Indemnified Person is liable to the claimant (other than to the extent caused by or arising from a ContraVir Indemnified Person’s negligence or willful misconduct) by reason of (i) any injury to or death of any person, or damage to or loss of property, or any other thing occurring on or about the Premises, or in any manner growing out of, resulting from or connected with the use, condition or occupancy of, the Premises, if caused by any negligent act or willful misconduct of Synergy or its agents, partners, contractors, employees, permitted assignees, licensees, sublessees, invitees or any other person or entity for whose conduct Synergy is legally responsible (other than ContraVir), (ii) violation by Synergy of any contract or agreement to which Synergy is a party in each case affecting the Premises or the occupancy or use thereof by Synergy and (iii) violation of or failure to observe or perform any condition, provision or agreement of this ARTICLE IV on Synergy’s part to be observed or performed hereunder. In addition, and to the extent applicable, if Synergy is the beneficiary of an indemnity or release from the landlord under a Lease, Synergy shall use commercially reasonable efforts to similarly indemnify or release ContraVir, to the extent Synergy actually receives the benefit of such indemnity or release.

 

(c) Solely with respect to real estate matters governed by this ARTICLE IV, in the event of a conflict between, on the one hand, this Section 4.09, and, on the other hand, Section 6.03, the provisions of this Section 4.09 shall prevail. Notwithstanding the foregoing, the remaining provisions of ARTICLE VI shall remain in full force and effect with respect to the real estate matters governed by this  ARTICLE IV.

 

Section 4.10 Assignment; Sublicensing. The License granted hereby is personal to ContraVir and shall not be assigned nor shall ContraVir sublicense or otherwise permit or suffer the occupancy of any/all License Area(s) by any third party without first obtaining the prior written consent of Synergy.

 

Section 4.11 Alterations; Restoration. No alterations may be made by ContraVir to the License Areas without first obtaining (A) the prior written consent of Synergy, and (B) if required by a related Lease, the prior written consent of the related landlord of such Lease (which Synergy shall request from such landlord). Synergy, at the time of giving any such consent to any alterations by ContraVir, shall notify ContraVir if any such alterations must be removed and the License Areas restored, at the expiration

 

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or sooner termination of the applicable License Period. If Synergy employs Synergy Personnel at the License Areas, Synergy will reasonably cooperate with ContraVir to coordinate such requested alternations. Any costs associated with making such alterations, including construction or increased operating costs, shall be borne by ContraVir.

 

Section 4.12 Quiet Enjoyment. Synergy covenants and agrees that, so long as ContraVir shall pay the license fee described in Section 4.03 as and when due and in accordance with Section 5.03 and shall otherwise fully, faithfully and timely observe and perform within applicable notice and cure periods the agreements, covenants and conditions of this Agreement on its part to be observed and performed with respect to the related License Area, ContraVir shall and may peaceably and quietly have, hold and enjoy the related License Area for the related License Period, as same may be extended, without disturbance, hindrance, ejection or molestation by or from Synergy (subject, however, to the provisions hereof) or any one claiming by, through or under Synergy. Synergy may relocate ContraVir to any License Area upon reasonable prior written notice to ContraVir;  provided (i) Synergy pays for all reasonable relocation costs and expenses of ContraVir, and (ii) if the License Area is relocated to another building more than twenty-five (25) miles away from the existing License Area, ContraVir may elect to terminate the License with respect to such License Area and shall have up to ninety (90) days from the date of the relocation notice to find alternative premises to occupy. ContraVir shall abide by the building rules and regulations applicable to the buildings within which any License Area is located, which may be amended or modified by Synergy from time to time in its reasonable discretion.

 

Section 4.13 Surrender. On the related License Expiration Dates or sooner termination of the License with respect to the related License Area, ContraVir, if requested by Synergy or required by the restoration terms of a related Lease which would be applicable to the related License Area, shall restore the related portion of the License Area to the condition existing on the License Commencement Date insofar as the installations and alterations were made by or on behalf of ContraVir, ordinary wear and tear, fire and other casualty excepted (or if not so requested by Synergy, shall restore the related License Area only insofar as installations and alterations were made by or on behalf of ContraVir (or any assignee or Subsidiary of ContraVir), to the condition required by such restoration provisions of a related Lease) and otherwise comply with the surrender provisions of the Lease to the extent applicable to the License Area. Notwithstanding anything to the contrary contained herein, in no event shall ContraVir have any obligation to restore a License Area to the condition such space was in on the License Commencement Date to the extent such restoration related to an alteration which was made to such space prior to the License Commencement Date.

 

Section 4.14 Subordination. The License granted herein is subject and subordinate to all ground and underlying leases affecting the real property of which the License Areas form a part and to all mortgages which may now or hereafter affect such leases or such real property.

 

Section 4.15 Warranties. EXCEPT AS SET FORTH IN THIS AGREEMENT, THE PARTIES DO NOT MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LICENSE AREAS, INCLUDING THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

Section 4.16 Inability To Perform. Neither Party shall be responsible for delays in the performance of its obligations caused by events beyond that Party’s reasonable control, including, but not limited to, acts of God.

 

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Section 4.17 Good Faith. The License Areas are of such configuration and are not of such size as to justify, in either case, in the opinion of the Parties, entering into formal leases and/or subleases covering each of the License Area. The Parties have therefore entered into this Agreement which, the Parties recognize, is not dispositive of all matters and issues that may arise during the License Period with respect to the License Area. As and when issues and matters arise during the course of the License Period that are not definitively controlled by the provisions of this Agreement or any related Lease, the Parties shall act reasonably and in good faith endeavor to adjust and resolve such issues and matters.

 

Section 4.18 Site Specific Agreements. The Parties shall execute or cause their applicable subsidiaries to execute any additional agreements as may be reasonably necessary to effectuate the intent of this ARTICLE IV.

 

Section 4.19 Cooperation. Should the Parties desire to license, sublease, or enter into any other office sharing agreement with each other for spaces and locations not set forth on Schedule 4.01, or to renew any license and consequently the related underlying Lease for any space or location set forth on Schedule 4.01, then the Parties agree to cooperate with each other and to provide reasonable assistance to each other in identifying new spaces and entering into new leases, subleases, or other agreements, as applicable, with landlords and other related third parties as well as to cooperate and work with one another to reach mutually acceptable terms and provisions for any license, sublease or related agreement between each other; provided  that any such new or renewed arrangement between the Parties shall be subject to Synergy’s approval. This Section 4.19 shall survive the term of this Agreement.

 

ARTICLE V.

LABORATORY AND OTHER EXPENSES

 

Section 5.01 Laboratory Services During Laboratory Transition Period. Throughout the period beginning on the Effective Date and ending upon the first to occur the termination or expiration of this Agreement in accordance with ARTICLE VIII hereof, or such other date as may be required by applicable laws (the “Laboratory Transition Period”), Synergy shall make available to ContraVir Synergy’s laboratories and/or cause to make Synergy Personnel available for the purpose of testing required for pre-clinical development or clinical development related to the ContraVir Business (“Laboratory Services”).  All services performed by Synergy’s Personnel shall be subject to the provisions of Section 2.03 above.

 

Section 5.03 Laboratory Services After the Laboratory Transition Period. After the expiration of the Laboratory Transition Period, ContraVir shall be responsible for obtaining any laboratory services required for pre-clinical development or clinical development related to the ContraVir Business.

 

Section 5.03 Cooperation. Synergy and ContraVir shall cooperate with each other in all respects, and shall execute any additional documents which are reasonably necessary, to effectuate the provisions of this ARTICLE V.

 

ARTICLE VI.

SERVICE COSTS; OTHER CHARGES

 

Section 6.01 Costs for Synergy Services.

 

(a) Each Synergy Service and Laboratory Services will be provided at the price calculated in

 

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accordance with the methodology described in this Section 6.01, which prices will be reviewed on an annual basis at least thirty (30) days prior to the end of each of Synergy’s fiscal years commencing with the Synergy fiscal year ending December 31, 2013. In the event of a material change in the level of service for any Synergy Service or Laboratory Service prior to the termination of such Synergy Services and/or Laboratory Service pursuant to the terms of this Agreement, the Parties will work together in good faith to recalculate the price for such Synergy Service and/or Laboratory Service.

 

(b) ContraVir will generally be allocated certain costs based on the ContraVir Business’s revenues, headcount or other mutually agreed to statistics (relative to aggregate revenues, headcount or other statistics), as agreed upon by the Parties, and calculated in a manner consistent with practices between the Parties, as such practices may be changed from time to time by the Parties. Notwithstanding the foregoing, certain third party costs will be charged directly to ContraVir, as agreed upon by the Parties.

 

(c) No later than 90 days prior to the end of the Initial Term and 45 days prior to the end of any Renewal Term, the Parties shall commence discussions to determine the appropriate level of service and cost for each Synergy Service to be provided in the subsequent Renewal Term based on a good faith review of the Synergy Services and levels of service provided in the then-current term and a good faith estimate of ContraVir’s future service requirements.

 

Section 6.02 Payment.

 

(a) Charges for Synergy Services and/or Laboratory Services shall be invoiced quarterly in arrears by Synergy, within ten (10) business days after the end of the applicable quarter. Each invoice shall be directed to the Chief Financial Officer of ContraVir or such other person designated in writing from time to time by ContraVir’s Chief Financial Officer. Each such invoice shall be payable in accordance with Section 6.03; provided that if ContraVir, in good faith, disputes any invoiced charge, payment of such charge may be made only after mutual resolution of such dispute. ContraVir agrees to notify Synergy promptly, and in no event later than thirty (30) days following receipt of an invoice, of any disputed charge. Notwithstanding the foregoing, in no event will any delay of payment relating to disputed charges affect the timely payment of undisputed charges in accordance with this Section 6.02(a) .

 

(b) During the term of this Agreement, Synergy shall keep such books, records and accounts as are reasonably necessary to verify the calculation of the fees and related expense for all Synergy Services and/or Laboratory Services provided hereunder. Synergy shall provide documentation supporting any amounts invoiced by Synergy pursuant to this Section 6.02 as ContraVir may from time to time reasonably request. ContraVir shall have the right to review such books, records and accounts of Synergy with respect to the provision of the Synergy Services at any time upon reasonable notice, and ContraVir agrees to conduct any such review in a manner so as not to unreasonably interfere with the normal business operations of Synergy.

 

Section 6.03 Payments under this Agreement. For purposes of this Agreement, and solely with respect to periods prior to the Distribution Date, any “payment” by ContraVir to Synergy pursuant to this Agreement shall be treated as having been made upon an offset of intercompany account(s) of amounts otherwise owing by Synergy to ContraVir in accordance with the Parties’ general practice of offsetting intercompany account(s); provided  that ContraVir provides prompt notice of such offset to Synergy with sufficient detail of the intercompany account(s) being offset. All payments shall be made to Synergy within the time prescribed for payment in this Agreement, or if no period is prescribed, within ten (10) days after delivery of written notice of payment owing together with a computation of the amounts

 

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due.

 

Section 6.04 Responsibility for Synergy Personnel. All Synergy Personnel employed by Synergy in connection with its rendering of the Synergy Services will be Synergy’s employees, agents, or Subcontractors, as the case may be. Synergy will have the sole and exclusive responsibility for all such personnel, will supervise such Synergy Personnel, and will cause such personnel to cooperate with ContraVir in performance of the Synergy Services in accordance with the terms and conditions of ARTICLE II ,  ARTICLE III ,  ARTICLE IV,  ARTICLE V  and ARTICLE VII. Synergy will pay, and be solely responsible for the payment of, any and all wages, salaries, or other compensation or benefits payable to such Synergy Personnel, plus any and all premiums, contributions and taxes for workers’ compensation insurance, unemployment compensation, disability insurance, FICA, payroll, and all similar provisions now or hereafter imposed by any Governmental Authority with respect to, or measured by, wages, salaries, or other compensation paid or to be paid, or benefits provided or to be provided, by Synergy to any Synergy Personnel. No person providing Synergy Services to ContraVir pursuant to the terms of this Agreement shall be deemed to be, or shall have any rights as, an employee of ContraVir.

 

ARTICLE VII.

WARRANTY DISCLAIMER, LIMITATION OF LIABILITY AND INDEMNIFICATION

 

Section 7.01 No Warranty. The Parties both acknowledge and agree that Synergy has agreed to provide or cause to be provided the Synergy Services and/or Laboratory Services hereunder as an accommodation to ContraVir. EXCEPT FOR THE LIMITED REPRESENTATIONS OF THE PARTIES SET FORTH IN SECTION 9.14  BELOW, NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED (INCLUDING WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO ANY REPRESENTATION OR DESCRIPTION), ARE MADE BY SYNERGY OR ANY SYNERGY ENTITY WITH RESPECT TO THE PROVISION OF THE SYNERGY SERVICES AND/OR LABORATORY SERVICES UNDER THIS AGREEMENT AND, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL SUCH REPRESENTATIONS OR WARRANTIES ARE HEREBY WAIVED AND DISCLAIMED.

 

Section 7.02 Limitation of Liability - Synergy.

 

(a) ContraVir agrees that none of the Synergy Entities and their respective directors, officers, Subcontractors and employees (each of the Synergy Entities and their respective directors, officers, Subcontractors and employees, a “Synergy Indemnified Person”) shall have any Liability, whether direct or indirect, in contract or tort or otherwise, to ContraVir or any ContraVir Entity or any other Person under the control of ContraVir or any ContraVir Entity for or in connection with the Synergy Services and/or Laboratory Services rendered or to be rendered or granted or to be granted into by any Synergy Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any Synergy Indemnified Person’s actions or inactions in connection with any Synergy Services or such transactions, except for any Liabilities resulting from (i) any material breach of this Agreement on the part of any Synergy Indemnified Person; or (ii) the gross negligence, bad faith or willful misconduct of any Synergy Indemnified Person in connection with this Agreement.

 

(b) None of the Synergy Entities shall have any Liability to ContraVir or any other Person for failure to perform Synergy’s obligations under this Agreement or otherwise, where such failure to perform

 

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similarly affects the Synergy Entities receiving the same or similar services and does not have a disproportionately adverse effect on ContraVir; provided, however, the provisions of this  Section 7.02(b)  shall not relieve any Synergy Entity from any Liability resulting from such Entity’s failure to maintain the Synergy Insurance Policies pursuant to the terms of this Agreement.

 

(c) In addition to the foregoing, ContraVir agrees that, in all circumstances, it shall use commercially reasonable efforts to mitigate and otherwise minimize damages to ContraVir, whether direct or indirect, due to, resulting from or arising in connection with any failure by Synergy to comply fully with Synergy’s obligations under this Agreement.

 

Section 7.03 Indemnification by Synergy. Except as otherwise provided in this Agreement, Synergy shall, for itself and as agent for each Synergy Entity, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless each ContraVir Indemnified Person from and against, and shall reimburse such ContraVir Indemnified Person with respect to, any and all Losses that any third party seeks to impose upon the ContraVir Indemnified Person, or which are imposed upon the ContraVir Indemnified Person, and that, following the Effective Date, relate to, arise or result from, any of the following items (without duplication):

 

(a) any material breach by any Synergy Entity of this Agreement; and

 

(b) the gross negligence, bad faith or willful misconduct of any Synergy Indemnified Person in connection with the Synergy Services rendered or to be rendered by, or granted or to be granted by any Synergy Indemnified Person pursuant to this Agreement or the transactions contemplated by this Agreement.

 

In the event that any Synergy Entity makes a payment to a ContraVir Indemnified Person hereunder, and such ContraVir Indemnified Person subsequently diminishes the Loss on account of which such payment was made, either directly or through a third-party recovery (other than a recovery indirectly from ContraVir), ContraVir will promptly repay (or will cause such ContraVir Indemnified Person to promptly repay) such Synergy Entity the amount by which the payment made by such Synergy Entity exceeds the actual cost of the associated indemnified Loss.

 

Notwithstanding the foregoing, the provisions of this Section 7.03 shall terminate immediately upon a Change of Control.

 

Section 7.04 Disclaimer of Damages. IN NO EVENT SHALL ANY SYNERGY ENTITY BE LIABLE TO ANY CONTRAVIR ENTITY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;  PROVIDED ,  HOWEVER , THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EACH PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES AS SET FORTH IN THIS AGREEMENT OR IN ANY INTERCOMPANY AGREEMENT.

 

Section 7.05.  Procedure for Claims. Each indemnified Party agrees to give the indemnifying Party prompt written notice of any Loss or discovery of fact upon which such indemnified Party intends to base a request for indemnification under this Article VII. Each Party shall furnish promptly to the other

 

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copies of all papers and official documents received in respect of any Loss. The indemnifying Party shall have the sole right to defend, settle, or otherwise dispose of such Loss, on such terms as the indemnifying Party, in its sole discretion, shall deem appropriate. The indemnifying Party shall obtain the written consent of the indemnified Party, which shall not be unreasonably withheld or delayed, prior to ceasing to defend, settling or otherwise disposing of any loss if as a result thereof the indemnified Party would become subject to injunctive or other equitable relief or any remedy other than the payment of money, which payment would be the responsibility of the indemnifying Party. The indemnifying Party shall not be liable for any settlement or other disposition of a loss by the indemnified Party which is reached without the written consent of the indemnifying Party. The reasonable costs and expenses, including reasonable fees and disbursements of counsel incurred by any indemnified Party in cooperating with the indemnifying Party in its defense of a loss, shall be reimbursed on a quarterly basis by the indemnifying Party, without prejudice to the indemnifying Party’s right to contest the indemnified Party’s right to indemnification and subject to refund in the event the indemnifying Party is ultimately held not to be obligated to indemnify the indemnified Party.

 

ARTICLE VIII.

TERM AND TERMINATION

 

Section 8.01 Term. Except as otherwise provided herein, or as otherwise agreed in writing by the Parties, (a) this Agreement shall have an initial term from the Effective Date through the Distribution Date (the “Initial Term”), and will be renewed automatically thereafter for successive three (3) month terms (each, a “Renewal Term”) with respect to any Synergy Services then in effect, unless either Party elects not to renew this Agreement or any specific Service provided hereunder by notice in writing to the other Party not less than forty-five (45) days prior to the end of any term, and (b) Synergy’s obligation to provide, grant or procure, and ContraVir’s right to purchase or continue to benefit from, a Synergy Service shall cease as of the applicable date set forth in the schedules attached hereto, as applicable, or the applicable date set forth in any arrangement between the Parties pursuant to which such Synergy Services are provided or such earlier date determined in accordance with Section 8.02 .

 

Section 8.02 Termination.

 

(a) The Parties may by mutual agreement from time to time terminate this Agreement with respect to one or more of the Synergy Services and/or Laboratory Services, in whole or in part.

 

(b) ContraVir may terminate any Synergy Services and/or Laboratory Services at any time (i) upon at least thirty (30) days prior written notice of such termination by ContraVir to Synergy, effective as of such 30th day, or (ii) if Synergy shall have failed to perform any of its material obligations under this Agreement relating to such Synergy Service, ContraVir shall have notified Synergy in writing of such failure, and such failure shall have continued for a period of at least thirty (30) days after receipt by Synergy of written notice of such failure from ContraVir, effective as of such thirtieth day.

 

(c) Subject to the provisions of Section 8.02(d) and Section 8.03, Synergy may terminate any Synergy Service at any time if ContraVir shall have failed to perform any of its material obligations under this Agreement, Synergy shall have notified ContraVir in writing of such failure, and such failure shall have continued for a period of at least thirty (30) days after receipt by ContraVir of written notice of such failure from Synergy, effective as of such thirtieth (30th ) day.

 

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(d)                  If a Party undergoes a Change of Control, this Agreement shall automatically terminate without further notice to either Party.

 

(e) Upon any termination of this Agreement by Synergy, including any determination by Synergy to not renew this Agreement pursuant to Section 7.01 above (other than a termination as a result of a default by ContraVir), each License shall continue for a period of up to ninety (90) days to allow ContraVir to find alternative premises to occupy. ContraVir shall pay any costs incurred by Synergy arising from Synergy’s provision of adequate physical and information technology separation and segregation during such ninety (90) day transition period.

 

Section 8.03 Termination of ARTICLE III. Notwithstanding anything to the contrary contained in this ARTICLE VIII:

 

(a) The provisions of ARTICLE III shall continue with respect to each applicable Synergy Insurance Policy, for such period of time following the date upon which the Synergy Entities hold shares of ContraVir common stock representing less than a majority of the total outstanding shares of ContraVir common stock as is permitted in the applicable insurance policy but, in no event, for more than ninety (90) days; and

 

(b) Synergy’s obligation to maintain the Synergy Insurance Policies for the ContraVir Entities, and, except as provided in Section 8.04 below, ContraVir’s obligation to pay or reimburse Synergy, as the case may be, for the expenses resulting from such Synergy Insurance Policies shall cease as of the applicable date determined in accordance with this Section 8.03; provided, however, nothing in this  Section 8.03 shall eliminate Insurance Coverage for a claim pending as of the date of termination until such time as replacement coverage has been obtained. Synergy shall provide ContraVir with prior written notice of termination of Insurance Coverage pursuant to this Section 9.03 as soon as reasonably practical after Synergy’s determination of the date upon which the Synergy Entities hold shares of ContraVir common stock representing less than a majority of the total outstanding shares of ContraVir common stock.

 

Section 8.04 Effect of Termination.

 

(a) Other than as required by law or Section 8.03 above, upon the effective date of the termination of (1) any Synergy Service and/or Laboratory Services (excluding any service relating to the Synergy Insurance Policies) pursuant to Section 8.02 , (2) any Synergy Service and/or Laboratory Services relating to the Synergy Insurance Policies pursuant to Section 8.03 , or (3) upon termination of this Agreement in accordance with its terms, Synergy shall have no further obligation to provide such terminated Synergy Service and/or Laboratory Services (or any Synergy Service, in the case of termination of this Agreement), and ContraVir shall have no obligation to pay any fees relating to such terminated Synergy Services and/or Laboratory Services (or to make any other payments hereunder, in the case of termination of this Agreement); provided that, notwithstanding such termination:

 

(i) ContraVir shall remain liable to Synergy for any fees owed and payable in respect of the Synergy Services provided prior to the effective date of such termination;

 

(ii) Synergy shall continue to charge ContraVir for administrative and program costs relating to benefits paid after but incurred prior to the termination of any Synergy Service;

 

(iii) ContraVir shall be obligated to pay such expenses in accordance with the terms of this Agreement; provided further that (A) Synergy makes commercially reasonable efforts to obtain available

 

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refunds of such costs and (B) if Synergy obtains a refund of any such costs already paid by ContraVir, Synergy shall return such portion of the costs to ContraVir; and

 

(iv) in the event of the termination of any License pursuant to Section 8.02(d), Synergy shall be obligated to continue to provide such License to ContraVir for a period of up to ninety (90) days and ContraVir shall be obligated to continue to pay any applicable license fees to Synergy for that same time period.

 

(b) Following termination of this Agreement with respect to any Synergy Service, the Parties agree to cooperate with each other in providing for an orderly transition of such Synergy Service to ContraVir or to a successor service provider as designated by ContraVir. In the event of any termination with respect to one or more, but less than all, of the Synergy Services described herein, this Agreement will continue in full force and effect with respect to any Synergy Services not so terminated. The provisions of ARTICLE VII , ARTICLE VIII , and ARTICLE IX shall survive the termination this Agreement.

 

(c) Notwithstanding anything to the contrary in this Agreement, upon a termination of this Agreement pursuant to Section 8.02(d), Synergy shall have no further liability under this Agreement and shall not be required to perform any obligations hereunder, including, but not limited to, any Synergy Service or Laboratory Service, or make any payment pursuant to this Agreement.

 

ARTICLE VIII.

MISCELLANEOUS

 

Section 9.01 Ownership.

 

(a) This Agreement and the performance of the Synergy Services and/or Laboratory Services hereunder will not affect the ownership of any assets or responsibility for any liabilities allocated in any of the other Intercompany Agreements. Neither Party will gain, by virtue of this Agreement or the Synergy Services provided hereunder, by implication or otherwise, any rights of ownership of any property or intellectual property rights owned by the other Party or such other Party’s Subsidiaries.

 

(b) ContraVir shall own all property or intellectual property rights assigned to ContraVir pursuant to the Intercompany Agreements, as well as any changes, additions or improvements thereto made by Synergy solely on behalf of ContraVir in the performance of the Synergy Services, including the granting of the Licenses. In addition, ContraVir will own any data with respect to ContraVir or the ContraVir Business to the extent such data is developed by Synergy solely on behalf of ContraVir or the ContraVir Business. To the extent that data provided by ContraVir to Synergy is owned by ContraVir and such data is processed or used by Synergy in performance of the Synergy Services and/or Laboratory Services, such data and any modifications to that data shall remain the property of ContraVir. The provisions of this Section 9.01(b) do not grant ContraVir any rights to any data concerning Synergy, any other Synergy Entity or Synergy’s business.

 

Section 9.02 No Agency. Nothing in this Agreement shall (i) constitute or be deemed to constitute a partnership or joint venture between or among the Parties hereto or their respective Subsidiaries, or (ii) create an agency or employment relationship between or among the Parties, in either case, for any purpose whatsoever. Neither Party hereto nor its Subsidiaries shall have authority or power to bind the other Party hereto or its Subsidiaries or to contract in the name of, or create a Liability against, the other Party hereto or such other Party’s Subsidiaries in any way or for any purpose.

 

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Section 9.03 Subcontractors. In connection with the Synergy Services, Synergy may hire or engage one or more third-party subcontractors (each, a “Subcontractor”) to perform all or any of its obligations under this Agreement; provided  that, subject to Section 6.01 , Synergy shall pay for all fees due each such Subcontractor and shall in all cases remain primarily responsible for all obligations undertaken by each such Subcontractor on Synergy’s behalf pursuant to the terms of this Agreement with respect to the scope, quality, degree of skill and nature of the Synergy Services provided hereunder. Synergy’s hiring of any Subcontractors pursuant to this Section 9.03 shall be conducted consistently with Synergy’s current practice of hiring independent contractors.

 

Section 9.04 Force Majeure.

 

(a) For purposes of this Section 9.04, “Force Majeure” means an event beyond the control of either Party, which by its nature could not have been foreseen by such Party, or, if it could have been foreseen, was unavoidable, and includes without limitation, acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) and failure of energy sources.

 

(b) Continued performance of a Synergy Service and/or Laboratory Services may be suspended immediately to the extent caused by Force Majeure. Synergy will give prompt notice to ContraVir of the occurrence of the event giving rise to the suspension and of its nature and anticipated duration. The Parties shall cooperate with each other to find alternative means and methods for the provision of the suspended Synergy Service and/or Laboratory Services. Notwithstanding anything to the contrary contained herein, if the performance of a Synergy Service and/or Laboratory Services is suspended due to Force Majeure for a period exceeding thirty (30) days, ContraVir shall have the right to terminate this Agreement with respect to such Synergy Service and/or Laboratory Services upon delivery of written notice to Synergy. Such termination shall be effective immediately. No charges will be incurred with respect to a Synergy Service and/or Laboratory Services for any time period during which the provision of such Synergy Service has been suspended or terminated pursuant to this Section 9.04.

 

(c) Without limiting the generality of Section 6.01, neither Party shall be under any liability for failure to fulfill any obligation under this Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of Force Majeure.

 

Section 9.05 Entire Agreement. This Agreement and any exhibits or schedules attached hereto or thereto, and the Insurance Policies referred to herein, constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof.

 

Section 9.06 Governing Law and Jurisdiction. This Agreement, including the validity hereof and the rights and obligations of the Parties hereunder, shall be construed in accordance with and shall be governed by the laws of the State of New York applicable to contracts made and to be performed entirely in such State (without giving effect to the conflicts of laws provisions thereof).

 

Section 9.07 Amendment. This Agreement and any schedule may be amended at any time after

 

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such date by mutual written consent of Synergy and ContraVir evidenced by an instrument in writing signed on behalf of each of the Parties. In the event Synergy requests that ContraVir provides certain services to Synergy at a future date, and to the extent that the Parties mutually agree with respect to the provision of such services, the Parties shall execute a supplement to this Agreement setting forth the terms and conditions of such services to be provided to Synergy by ContraVir, including a description of any related fees.

 

Section 9.08 Notices. Notices, offers, requests or other communications required or permitted to be given by either Party pursuant to the terms of this Agreement shall be given in writing to the respective Parties to the following addresses:

 

If to Synergy or Synergy Entity, to:

 

Synergy Pharmaceuticals Inc.

420 Lexington Avenue, Suite 1609

New York, New York 10174

Attention: Secretary

Facsimile: (212) 297-0019

 

If to ContraVir or a ContraVir Entity, to:

 

ContraVir Pharmaceuticals, Inc.

420 Lexington Avenue, Suite 1609

New York, New York 10174

Attention: Secretary

Facsimile: (212) 297-0019

 

or to such other address or facsimile number as the Party to whom notice is given may have previously furnished to the other in writing as provided herein. Any notice involving non-performance, termination, or renewal shall be sent by hand delivery, recognized overnight courier or, within the United States, may also be sent via certified mail, return receipt requested. All other notices may also be sent by facsimile or email, confirmed by first class mail. All notices shall be deemed to have been given when received, if hand delivered; when transmitted, if transmitted by facsimile, email or similar electronic transmission method; one working day after it is sent, if sent by recognized overnight courier; and three days after it is postmarked, if mailed first class mail or certified mail, return receipt requested, with postage prepaid.

 

Section 9.09 Counterparts. This Agreement, including the Intercompany Agreements and the exhibits and schedules hereto and thereto and the other documents referred to herein or therein, may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

Section 9.10 Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each Synergy Entity and each ContraVir Entity. Neither Party may assign this Agreement or any rights

 

21

 

or obligations hereunder, without the prior written consent of the other Party, and any such assignment shall be void; provided , however , either Party may assign this Agreement to a successor entity formed solely in connection with such Party’s reincorporation in another jurisdiction or into another business form.

 

Section 9.11 Severability. If any term or other provision of this Agreement or the schedules or exhibits attached hereto (or Insurance Policies described herein) is determined by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.

 

Section 9.12 Failure or Indulgence not Waiver; Remedies Cumulative. No failure or delay on the part of either Party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the schedules or any exhibits attached hereto (or the Insurance Policies described herein) are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

Section 9.13 Authority. Each of the Parties represents to the other Party that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

 

Section 9.14 Specific Performance. The Parties hereto agree that irreparable damage would occur in the event that any provision of this Agreement was not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance of the terms hereof, without the necessity of proving irreparable damage or posting a bond, in addition to any other remedy at law or equity.

 

Section 9.15 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this Agreement.

 

Section 9.16 Interpretation. The headings contained in this Agreement, in any exhibit or schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 9.17 Conflicting Agreements. In the event of conflict between this Agreement and any other agreement executed on or prior to the Effective Date in connection with the subject matter hereof, the provisions of this Agreement shall prevail.

 

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Section 9.18 Third Party Beneficiaries. Except as specifically set forth in this Agreement, none of the provisions of this Agreement shall be for the benefit of or enforceable by any third party, including any creditor of any Person. No such third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any claim in respect of any liability (or otherwise) against either Party hereto.

 

Section 9.19 Incorporation by Reference. All schedules to this Agreement are incorporated herein by reference and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any schedule but not otherwise defined therein shall have the meaning as defined in this Agreement.

 

Section 9.20 Relationship of Parties. The status of the Parties under this Agreement shall be that of independent contractors. Neither Party shall have the right to enter into any agreements on behalf of the other Party, nor shall it represent to any person that it has any such right or authority. Nothing in this Agreement shall be construed as establishing a partnership or joint venture relationship between the Parties. Neither Party shall have authority to enter into contracts or binding commitments in the name or on behalf of the other Party. Neither Party will use the other Party’s logo or marks without prior written approval, and then such use shall be only for the benefit of the other Party and at the direction of the other Party. Neither Party shall be, nor represent itself as being, an agent of the other Party, and shall not be, nor represent itself as being, authorized to bind the other Party. Each Party agrees, acknowledges and understands that neither it nor its employees or agents shall have the status of an employee of the other Party and shall not participate in any employee benefit plans or group insurance plans or programs (including, but not limited to salary, bonus or incentive plans, stock option or purchase plans, or plans pertaining to retirement, deferred savings, disability, medical or dental), even if it is considered eligible to participate pursuant to the terms such plans. In addition, each Party understands and agrees that consistent with its independent contractor status, neither it nor its employees or agents will apply for any of the other Party’s government-sponsored benefits intended only for employees, including, but not limited to, unemployment benefits. Such Party’s exclusion from benefit programs maintained by the other Party is a material component of this Agreement. To the extent a Party or its employees or agents may become eligible for any benefit programs maintained by the other Party (regardless of timing or reason for eligibility), such Party hereby waives its right to participate in the programs. Each Party shall defend, indemnify and hold the other Party harmless from any and all claims made by its personnel on account of an alleged failure by the other Party to satisfy any tax or withholding obligations.

 

Section 9.21  Compliance with Laws. Each Party will comply with all applicable laws, rules, ordinances and regulations of any governmental entity or regulatory agency governing the actions to be taken and provided hereunder. Neither Party will take any action in violation of any applicable law, rule, ordinance or regulation that could result in liability being imposed on the other Party.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have signed this Amended and Restated Shared Services Agreement by their duly authorized representatives as of the date first set forth above.

 

	
 
    	
 
    
	
 
    	
SYNERGY PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gary S. Jacob
    
	
 
    	
Name:
    	
Gary   S. Jacob
    
	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CONTRAVIR PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bernard S. Denoyer
    
	
 
    	
Name:
    	
Bernard   S. Denoyer
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
				

 

[Signature Page to Amended and Restated Shared Services Agreement]

 

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