Document:

Employment Agreement - Wade

    Exhibit
      10.5

     

     

    AMENDED
      AND RESTATED

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    This
      AGREEMENT is made and entered into as of the 28nd day of June 2005, by
      INTERNATIONAL MICROCOMPUTER SOFTWARE, INC., a California corporation having
      its
      principal place of business at 100 Rowland Way, Novato, California 94945 (the
      “Company”) and MARTIN R. WADE, III, residing at 19 Roland Drive, Short Hills,
      New Jersey 07078 (“Executive”).

     

    WITNESSETH

     

    WHEREAS,
      the
      Company desires to engage for itself the experience, abilities and service
      of
      Executive in principal executive capacities, and Executive desires to be so
      engaged, upon the terms and conditions specified herein;

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants, terms and conditions
      hereinafter set forth, and for other good and valuable consideration, receipt
      of
      which is specifically acknowledged, the parties hereto hereby agree as
      follows:

     

    1. Employment
      - The
      Company hereby employs Executive, and Executive hereby accepts such employment
      from the Company, to serve as the Chief Executive Officer of the Company in
      accordance with the terms of this Agreement.

     

    2. Executive’s
      Duties - 

     

    (a) The
      Company hereby agrees to employ Executive, and Executive agrees faithfully
      and
      to the best of his ability, in the position of Chief Executive Officer, to
      discharge the duties of said office, which shall include general and active
      management and supervision of the Company, identifying, evaluating and executing
      acquisitions and strategic investments, analyzing new business ventures and
      negotiating strategic alliances, and performance of such other duties and
      services of an executive, administrative and managerial nature as shall be
      specified and designated from time to time by the Board of Directors of the
      Company in connection with the business and activities of the
      Company.

     

    (b) Executive
      agrees to devote his best efforts, energy and skill to the performance of his
      duties described in Section 2(a) of this Agreement; provided, however, that
      Executive may engage in consulting activities for other entities, including
      sitting on the Boards of Directors of other companies, with the prior written
      consent of the Company’s Board of Directors, which consent may not be
      unreasonably withheld.

     

    (c) Executive
      agrees to observe and comply with all rules, regulations, policies and practices
      adopted by the Company, either orally or in
      writing, both as they now exist and as they may be adopted or modified from
      time
      to time.

     

    (d) Notwithstanding
      anything herein contained to the contrary, it is expressly understood and agreed
      that Executive is able, and permitted, to perform his duties under this
      Agreement without moving his principal residence to California. Executive’s good
      faith judgment as to the amount of time he is required to be present in the
      Company’s facilities to carry out and effectively fulfill his duties and
      obligations herunder shall be determinative on that issue.

     

    
      
         

      

      
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    3. Term
      -
      The
      term of this Agreement shall be for a period of thirty-six (36) months
      commencing on June 28, 2005 and ending on June 27, 2008 (the “Initial Term”) and
      shall automatically extend for additional one-year periods (each, an “Extended
      Term”) unless the Company gives Executive notice (the “Non-Renewal Notice”), not
      fewer than 60 days prior to the end of the then current term that the Agreement
      will not be so extended.

     

    4. Compensation
      - The
      Company shall pay Executive a base annual salary of $225,000 in equal monthly
      installments. The Compensation Committee of the Company's Board of Directors
      shall determine any increases in Executive's base annual salary in its sole
      discretion based on the Company's performance under the Company's annual
      plan.

     

    Further,
      during the first two years of his employment, Executive shall also earn a cash
      bonus for the sale of either House Plans or IMSI’s software business (and
      together, the “Legacy Assets”) of (i) $100,000 if such net Legacy Assets sale
      price is greater than $2,000,000, but less than $5,000,000, and (ii) 2.0% of
      such net Legacy Assets sale price, if such net Legacy Assets sale price is
      greater than $5,000,000. Payment to Executive of cash bonuses from Legacy Assets
      sales shall be made within 15 days of such sales. 

     

    5.
       Termination
      -

     

    (a) The
      Company may terminate employment under this Agreement for Cause, as defined
      in
      Section 5(b)(i). This Agreement shall also terminate upon Executive's death
      or,
      to the extent permitted under the law, Disability as defined in Section
      6(a).

     

    (b) For
      purposes of this Agreement, the following terms shall be defined as
      follows:

     

    (i) “Cause”
      shall mean termination by the Company of Executive’s employment by the Company
      for reasons of Executive’s conviction of a felony involving moral turpitude,
      persistent dishonesty or fraud, persistent willful breaches of the material
      terms of this Agreement, habitual neglect of the duties which he is required
      to
      perform hereunder, or performance of consulting services not permitted as
      provided in Section 2(b).

     

    (ii) “Notice
      of Termination” - Shall mean a notice to be given to Executive if the Company
      terminates Executive’s Employment for any reason, which notice shall be in
      writing and shall set
      forth
      the basis for and the effective date of such termination.

     

    
      
        6.
          Compensation
          Upon Termination by Company or During Disability - 

      

    

     

    (a) During
      any period that Executive fails to perform his duties under this Agreement
      as a
      result of circumstances under which Executive's physical or mental condition
      renders him unable to perform his duties and such inability continues for in
      excess of ninety (90) consecutive or one hundred eighty (180) non-consecutive
      calendar days in any consecutive twelve-month period (such circumstances
      referred to herein as “Disability”), Executive's benefits shall be determined in
      accordance with the Company's long-term disability plan, if any, then in effect,
      provided that in all events Executive shall continue to be provided all salary
      and benefits hereunder during any elimination or waiting period under any such
      plan.

     

    (b) If
      the
      Company terminates Executive’s Employment for Cause, the Company shall
      pay
      Executive's compensation under this Agreement through the date of termination
      at
      the rate in effect at the time Notice of Termination is given, and the Company
      shall have no further obligation to Executive under this Agreement except in
      respect of the Executive's bonus rights specified in Section 4, to the extent
      such rights are vested prior to the date the Notice of Termination is given.
      If
      Executive’s Employment terminates by reason of Executive’s death or Disability,
      the Company shall pay Executive's full base annual salary to Executive or
      Executive’s beneficiaries or estate, as appropriate, through the period ending
      six (6) months after the date of termination at the rate in effect at the time
      of Executive's death or commencement of Disability, as the case may be, and
      the
      Company shall have no further obligation under this Agreement except in respect
      of the Executive's bonus rights specified in Section 4, to the extent such
      rights are vested prior to the date the Notice of Termination is given.,

     

    
      
         

      

      
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    (c) If
      the
      Company terminates this Agreement other than for (i) Cause or

     

    (ii)
      death or Disability, then Executive shall be entitled to the benefits provided
      below:

     

    (i) The
      Company shall pay Executive’s full base annual salary to Executive through the
      date of termination, and on a monthly basis for the remainder of the Term of
      this Agreement; and

     

    (ii) Executive
      shall be entitled to receive any bonus as specified in Section 4 for the
      remainder of the Term of this Agreement

     

    The
      provisions set forth in 6(c)(i) and 6(c)(ii) above shall terminate upon
      Executive’s acceptance of employment at salary and cash bonus compensation
      levels comparable to that set forth in this Agreement..

     

    7. Executive's
      Rights Under Certain Plans: Reimbursement for Expenses
      - The
      Company agrees that nothing contained herein is intended to or shall be deemed
      to be granted to Executive in lieu of any rights and privileges which Executive
      shall be entitled to as an employee of the Company under any retirement,
      pension, insurance, hospitalization, medical, disability or other plan which
      may
      now or hereafter be in effect and generally applicable to executives of the
      Company, it being understood that Executive shall have the right and privilege
      to participate in each such plan or benefit to the extent he is eligible
      pursuant to the terms of the plan or benefit. Executive shall be entitled to
      incur on behalf of the Company reasonable and necessary expenses in connection
      with the performance of
      his
      duties, and the Company shall pay for or reimburse Executive for all such
      expenses upon presentation of proper receipts, subject to such policies as
      the
      Company may from time to time establish for its employees and
      executives.

     

    8. Vacation-Executive
      shall accrue paid vacation time of two (2) weeks, three (3) weeks, and four
      (4)
      weeks during the first, second and third year (and thereafter) of his
      employment, respectively, subject to the Company's standard vacation policy
      for executives.

     

    9.
       Protection
      of the Company's Interest

     

    (a) Proprietary
      and Confidential Information
      -
      Executive acknowledges that while he performs services hereunder, he will
      receive, will have access to, and become acquainted with information and
      materials setting forth the Company's Confidential Information (as defined
      below). Executive hereby agrees that all such Confidential Information is the
      sole and exclusive property of the Company, and that, during the term of this
      Agreement and continuing thereafter, Executive will not use or disclose any
      such
      information other than in the course of performing his duties under this
      Agreement or as authorized in writing by the Company. Executive further agrees
      that upon expiration or termination of this Agreement, Executive shall not
      take
      or use any such information or materials of the Company except as specifically
      provided in Section 9(c) hereinbelow. Executive further agrees that, upon
      termination of his services with the Company, all such information or materials
      then in Executive's possession, whether prepared by him or others will be left
      with the Company. For purposes of this Section 9, “Confidential Information”
      means information disclosed to Executive, not generally known in the industry
      in
      which the Company is or may become engaged, about the Company's products,
      processes, services, suppliers, vendors, customers, employees, marketing plans
      and strategies, contracts, licenses, disputes, financial projections, partners,
      joint ventures and affiliates.

     

    
      
         

      

      
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    (b) Notwithstanding
      anything to the contrary set forth in this Section 9, if any provision of this
      Section 9, or the application thereof to any circumstance, is held invalid
      for
      any reason whatsoever, such invalid provision shall be
      severable and such invalidity shall not affect any other provision of this
      Section 9, or the application thereof to any other circumstance, which can
      be
      given effect without such invalid provision or application.

     

    (c) With
      respect to all Inventions (as hereinafter defined) made or conceived by
      Executive, whether or not during the hours of Executive’s services, or with the
      use of the Company’s and/or its affiliates’ facilities, materials, or personnel,
      either solely or jointly with others, during the term of this Agreement, and
      without royalty or any other consideration, the following shall
      apply:

     

    (i) Reports
      -
      Executive shall inform the Company promptly and fully of such Inventions by
      a
      written report, setting forth in detail the structures, procedures and
      methodology employed and the results achieved.

     

    (ii) Assignment
      -
      Executive hereby assigns and agrees to assign to the Company all of his right,
      title and interest to Executive’s Inventions and to all proprietary rights of
      every kind and nature therein, based thereon, or related thereto, including,
      but
      not limited to, applications for United States and foreign letters patent and
      resulting letters patent, trademarks and copyrights. This assignment provision
      shall not apply to an invention that qualifies fully under the provisions of
      California Labor Code Section 2870, which is set forth in Exhibit A attached
      hereto and incorporated herein.

     

    (iii) Patents
      - At the
      Company’s request and expense, Executive shall execute such documents as the
      Company deems necessary to vest in the Company sole and exclusive title to
      or
      otherwise to secure and protect the Company's rights in such Inventions and
      in
      all related trademarks, copyrights and/or patent
      rights and Executive shall provide such assistance as may be
      deemed
      necessary by the Company to apply for, defend or enforce any United States
      and
      foreign, patents, trademarks or copyrights based upon or related to such
      Inventions, as well as all reissues, renewals and extensions
      thereof.

     

    (iv) “Inventions”
      - mean
      all inventions, improvements and trade secrets, whether or not patentable or
      otherwise protectable, that Executive conceives, develops, or reduces to
      practice, alone or jointly with others, which relate to any present or
      prospective activities of the Company and/or its affiliates, including, but
      not
      limited to, devices, processes, methods, formulae, techniques, modifications
      and
      improvements to the Inventions.

     

    (v) Non-Exclusive
      License
      - In the
      event that the Company terminates Executive’s services other than
      for Cause,
      then Executive shall have hereby a royalty free, transferable, non-exclusive,
      perpetual license with respect to all Inventions assigned, licensed or developed
      by Executive to the Company during the term of this Agreement and Executive
      shall have the right to retain any Confidential Information with respect to
      such
      Inventions.

     

    (d) Executive
      acknowledges and agrees that a violation of this Section 9 of this Agreement
      shall cause irreparable harm to the Company and that the Company shall be
      entitled to specific performance of this Agreement or an injunction without
      proof of special damages, together with the costs and reasonable attorneys'
      fees
      incurred by the Company in enforcing its rights under this Section 9. Further,
      Executive acknowledges that the restrictions and agreements set forth in this
      Section 9 are in addition to, and are not intended to limit or diminish in
      any
      way, any other restrictions or remedies of law or contract, and that the Company
      shall be entitled, in addition to any other right and remedy available to it
      at
      law or in equity, to an injunction enjoining or restraining Executive from
      any
      violation or threatened violation of this Section 9, and Executive hereby
      consents to the issuance of such injunction without bond or other
      security.

     

    
      
         

      

      
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    (e) The
      provisions of this Section 9 of this Agreement shall survive the termination
      of
      Executive's retention hereunder- and continue to be binding upon Executive
      for a
      period of two years following the date of termination of Executive’s
      employment.

     

    10.
       No
      Unfair Competition
      -
      Executive will not, at any time while he is an employee of the Company, either
      directly or indirectly through any corporation, partnership, association, sole
      proprietorship or other entity, engage in, with or for any enterprise,
      institution, whether or not for profit, business, or company, competitive with
      the business (as identified herein) of the Company as such business may be
      conducted on the date thereof as a creditor, guarantor or financial backer,
      stockholder, director, officer, consultant, advisor, employee, member, inventor,
      producer, or otherwise; provided that an investment by Executive, his spouse
      or
      his children or other affiliate representing not more than five (5%) percent
      of
      the total equity of such entity shall be permitted. For purposes of this Section
      10, the business of the Company shall be limited to publishing or reselling
      of
      software and providing content or services over the Internet and wireless
      communications. For a period of one (1) year following the termination of his
      employment, Executive agrees that he will not solicit or hire, either as an
      employee or independent contractor, any employee of the Company or its
      affiliates or any person who had been an employee of the Company or its
      affiliates within one year prior to such solicitation or
      engagement.

     

    11. Offering
      Allocation
      - In the
      event that the Company files a registration statement under the Securities
      Act
      of 1933, as amended (the “Securities Act”) for the sale of shares of the
      Company’s common stock to the public, then the Company shall, if the Company has
      established a directed share or similar program to enable a class of persons
      to
      purchase, on a pro
      rata
      basis a
      portion of the common stock so offered, include Executive in such class of
      persons.

     

    12. Board
      Seat
      - The
      Company shall use its best efforts to cause the nomination and election of
      Executive to the Board of Directors of the Company so long as Executive remains
      employed as the Chief Executive Officer of the Company.

     

    13. Entire
      Agreement
      - This
      Agreement supersedes and cancels any and all prior agreements between the
      parties hereto, express or implied, relating to the subject matter hereof.
      This
      Agreement sets forth the entire agreement between the parties hereto. It may
      not
      be changed, altered, modified or amended except in a writing signed by both
      parties.

     

    14. Non-Waiver
      - The
      failure or refusal of either party to insist upon the strict performance of
      any
      provision of this Agreement or to exercise any right in any one or more
      instances or circumstances shall not be construed as a waiver or relinquishment
      of such provision or right, nor shall such failure or refusal be deemed a custom
      or practice contrary to such provision or right.

     

    15. Non-Assignment
      -
      Executive shall have no right to delegate any of the duties created by this
      Agreement, and any delegation or attempted delegation of Executive duties,
      shall
      be null and void. In all other respects, this Agreement shall be binding upon
      and shall inure to the benefit of the parties hereto and their respective heirs,
      beneficiaries, personal representatives, successors, permitted assigns, officers
      and directors.

     

    16. Severability
      - If any
      paragraph, term or provision of this Agreement shall be held or determined
      to be
      unenforceable, the balance of this Agreement shall nevertheless continue in
      fall
      force and effect unaffected by such holding or determination. In addition,
      in
      any such event, the parties agree that it is their intention and agreement
      that
      any such paragraph, term or provision which is held or determined to be
      unenforceable as written shall nonetheless be enforced and binding to the
      fullest extent permitted by law as though such paragraph, term or provision
      has
      been written in such a manner and to such an extent as to be enforceable under
      the circumstances. Without limitation of the foregoing, with respect to any
      restrictive covenant contained herein, if it is determined that any such
      provision is excessive as to duration or scope, it is intended that it
      nonetheless be enforced for such shorter duration or with such narrower scope
      as
      will render it enforceable.

     

    
      
         

      

      
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    17. Notices
      - All
      notices hereunder shall be in writing. Notices may be delivered personally,
      or
      by mail Postage prepaid, to the respective addresses noted above.

     

    18. Governing
      Law
      - The
      laws of the State of California shall govern this Agreement which is executed
      and to be performed in the State of California. The parties agree that Marin
      County, California shall be the proper venue for any actions or proceedings
      relating to disputes arising out of this Agreement.

     

    19.
       Captions
      and Titles
      -
      Captions and titles have been used in this Agreement only for convenience,
      and
      in no way define, limit, or describe the meaning of this Agreement or any part
      thereof.

     

    20. Executive’s
      Representations and Warranties
      -
      Executive represents and warrants that he has returned to or left with his
      former employer all of the former employer's property and confidential
      proprietary material and that he will not disclose to the Company, or use during
      his employment by the Company, any of his previous employer's trade secrets
      and
      confidential proprietary information. Executive further represents
      and warrants that neither the execution of this Agreement, nor employment with
      the Company, nor performance of the duties required hereby will violate any
      obligations of Executive to any former employer or breach any agreement to
      keep
      in confidence information acquired by him before his employment by the Company,
      and that he has not entered into, and will not enter into any agreement, either
      written or oral, that conflicts with this Agreement. Executive understands
      and
      agrees that the representations and warranties set forth in this paragraph
      are
      material inducements upon which the Company has relied in entering into this
      Agreement.

     

    21. Special
      Indemnity
      - The
      Company hereby agrees to hold harmless and indemnify Executive to the full
      extent authorized or permitted by law, as such may be amended from time to
      time,
      and by the Articles of Incorporation and Bylaws of the Company, as such may
      be
      amended. The Company shall purchase and maintain a policy or policies of
      directors' and officers' liability insurance ("D & O Insurance") to cover
      liabilities which may be incurred by its officers or directors in the
      performance of their obligations to the Company, and the Company shall include
      Executive within such policy. Executive agrees not to serve on any Boards of
      Directors unless appropriate D&O Insurance is obtained for Executive by each
      company requesting such services.

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Amended and
      Restated Executive Employment Agreement this 22nd day of June,
      2005.

     

    
      	
               

              International
                Microcomputer Software, Inc.

               

               

              /s/
                BRUCE GALLOWAY

              Bruce
                Galloway, Chairman

               

            	
               

               

               

               

              /s/
                MARTIN WADE III

              Martin
                R. Wade

               

            

    

     

     

    
      
         

      

      
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    EXHIBIT
      A

     

     

    Employment
      agreements; assignment of rights

     

    (a) Any
      provision in an employment agreement which provides that an employee shall
      assign, or offer to assign, any of his or her rights in an invention to his
      or
      her employer shall not apply to an invention that the employee developed
      entirely on his or her own time without using the employer’s equipment,
      supplies, facilities, or trade secret information except for those inventions
      that either:

     

    
      	 	
              (1)

            	
              Relate
                at the time of conception or reduction to practice of the invention
                to the
                employer’s business, or actual or demonstrably anticipated research or
                development or the employer; or

            

    

    
      	 	
              (2)

            	
              Result
                from any work performed by the employee for the
                employer.

            

    

     

    (b) To
      the
      extent a provision in an employment agreement purports to require an employee
      to
      assign an invention otherwise excluded from being required to be assigned under
      subdivision (a), the provision is against the public policy of this state and
      is
      unenforceable.

     

     

    98EX-10.0

ASSET PURCHASE AGREEMENT

FOR

THE ASSETS RELATING TO

CERTAIN PRODUCTS

by and among

NOVAVAX, INC.,

FIELDING PHARMACEUTICAL COMPANY

and

PHARMELLE, LLC

1

Date: September 22, 2005TABLE OF CONTENTS

	 	 	 
	ARTICLE 1 CONVEYANCE OF ASSETS; OTHER AGREEMENTS
	1.01	 	Assets to be Conveyed
	1.02	 	Excluded Assets
	1.03	 	Purchase Price
	1.04	 	Payment
	1.05	 	Delivery of Inventory and Other Tangible Assets; Vehicle Transfer
	1.06	 	Closing
	1.07	 	Delivery of Documents
	1.08	 	Conveyance of Assets and Inventory
	1.09	 	Scope of PHARMELLE’s Rights
	
 
	 	 
	1.10

	 	Taxes
	
 
	 	 
	1.11

	 	Assumed Liabilities
	
 
	 	 
	1.12

	 	Access to Information
	
 
	 	 
	1.13

	 	Asset Transfer
	
 
	 	 

	 	 	 
	ARTICLE 2 ACCOUNTS RECEIVABLE AND RETURNED GOODS

	 
	 	 
	 

	 
	 	 
	2.01

	 	Pre-Closing Accounts Receivable
	
 
	 	 
	2.02

	 	Post-Closing Accounts Receivable
	
 
	 	 
	2.03

	 	Returned Goods
	
 
	 	 

	 	 	 
	ARTICLE 3 REGULATORY MATTERS

	 
	 	 
	 

	 
	 	 
	3.01

	 	Filings with FDA Regarding Transfer of NDAs
	
 
	 	 
	3.02

	 	Responsibility for the Products
	
 
	 	 
	3.03

	 	FDA Annual Reports and Adverse Event Report
	
 
	 	 
	3.04

	 	Regulatory and Medical Affairs
	
 
	 	 
	3.05

	 	Rebates for Amounts Paid under Government Programs
	
 
	 	 

	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES

	 
	 	 
	 

	 
	 	 
	4.01

	 	Representations and Warranties of NOVAVAX
	
 
	 	 
	4.02

	 	Representations and Warranties of PHARMELLE
	
 
	 	 
	4.03

	 	Survival of Representations and Warranties
	
 
	 	 
	4.04

	 	Certain Limitations
	
 
	 	 

	 	 	 
	ARTICLE 5 INDEMNIFICATION

	 
	 	 
	 

	 
	 	 
	5.01

	 	Indemnification by NOVAVAX
	
 
	 	 
	5.02

	 	Indemnification by PHARMELLE
	
 
	 	 
	5.03

	 	Payments
	
 
	 	 
	5.04

	 	Conduct of Litigation
	
 
	 	 
	5.05

	 	Exclusive Remedy
	
 
	 	 

	 	 	 
	ARTICLE 6 MISCELLANEOUS
	6.01	 	Entire Agreement
	6.02	 	Counterparts
	6.03	 	Brokerage and Other Commissions
	6.04	 	Notices
	6.05	 	Assignment
	6.06	 	Governing Law
	6.07	 	Headings
	6.08	 	Expenses
	6.09	 	Successors and Assigns
	
 
	 	 
	6.10

	 	Agreement to Take Necessary and Desirable Actions
	
 
	 	 
	6.11

	 	No Implied Waiver
	
 
	 	 
	6.12

	 	Force Majeure
	
 
	 	 
	6.13

	 	Confidentiality; No Disparagement
	
 
	 	 
	6.14

	 	Relationship
	
 
	 	 
	6.15

	 	Severability
	
 
	 	 
	6.16

	 	Press Release
	
 
	 	 
	6.17

	 	Affiliates
	
 
	 	 
	6.18

	 	Waiver of Bulk Sales
	
 
	 	 
	6.19

	 	Exhibits and Schedules
	
 
	 	 
	6.20

	 	Interpretation
	
 
	 	 
	6.21

	 	Arbitration
	
 
	 	 

	 	 	 
	SCHEDULES

	 	

	 

	 	

	Schedule 1.01(a)

Schedule 1.01(b)

Schedule 1.01(d)

Schedule 1.01(e)

Schedule 1.04

Schedule 1.09

	 	Trademarks and Tradenames

NDA

Primary Products with respect to which Inventory is to be Assigned

Assumed Contracts

Wiring Instructions

AVC Products

	 	 	 
	NOVAVAX AND FIELDING DISCLOSURE SCHEDULES

	 
	 	 
	 

	 
	 	 
	Schedule 4.01(d)

Schedule 4.01(e)

Schedule 4.01(k)

Schedule 4.01(n)

	 	Consents

Liens

Facilities and Manufacturing

Suppliers

EXHIBITS

Exhibit A – Bill of Sale and Assignment

Exhibit B – FIELDING Trademark Assignment

Exhibit C – NOVAVAX Trademark Assignment

2

Exhibit D – Assumption AgreementASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”), is dated and entered into as of September
22, 2005, by and among NOVAVAX, INC., a corporation organized and existing under the laws of the
State of Delaware with a principal place of business at 508 Lapp Road, Malvern, Pennsylvania 19355
(“NOVAVAX”), FIELDING PHARMACEUTICAL COMPANY, a corporation organized and existing under the laws
of the State of Delaware and a wholly-owned subsidiary of NOVAVAX (“FIELDING”), and PHARMELLE, LLC,
a limited liability company organized and existing under the laws of the State of Missouri with a
principal place of business at 170 S Wm Dillard Drive, Building 3, Suite 109, Gilbert, Arizona
85233 (“PHARMELLE”).

W I T N E S S E T H:

WHEREAS, NOVAVAX and FIELDING desire to sell to PHARMELLE, and PHARMELLE desires to purchase
from NOVAVAX and FIELDING, assets relating to certain pharmaceutical products known as AVC,
NovaNatal and NovaStart (together, the “Primary Products”) and assets relating to certain
formerly-marketed products known as Vitelle, Nestabs, Gerimed, Irospan and Nesentials (together
with the Primary Products, the “Products”) of NOVAVAX and FIELDING, on the terms and subject to the
conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth
and other good and valuable consideration, the receipt and legal sufficiency of which are hereby
mutually acknowledged, the parties, intending to be legally bound, hereby covenant, contract, and
agree as follows:

ARTICLE 1 

CONVEYANCE OF ASSETS; OTHER AGREEMENTS

1.01 Assets to be Conveyed.

On the Closing Date (as defined in Section 1.06 below), and subject to the terms and
conditions of this Agreement (including, without limitation, the provisions of Section 1.09
hereof), NOVAVAX and FIELDING will sell, assign, convey, transfer, and deliver to PHARMELLE, and
PHARMELLE will purchase and accept from NOVAVAX and FIELDING, the following:

(a) All of NOVAVAX’s and FIELDING’s right, title, and interest in and to the trademarks and
tradenames set forth on Schedule 1.01(a) attached hereto (together, the “Trademarks and
Tradenames”), subject to any geographic restrictions set forth on such Schedule, together with the
goodwill of the business symbolized by such Trademarks and Tradenames;

(b) Subject to the provisions of this Agreement and to any geographic restrictions set forth
on the Schedule referred to herein, all of NOVAVAX’s right, title, and interest in and to the new
drug application set forth on Schedule 1.01(b) attached hereto (the “NDA”), including
supplements, records, and reports as required to be kept under 21 C.F.R. §314.81 (or under any
successor or comparable regulation), whether issued or pending, together with correspondence to or
from the U.S. Food and Drug Administration (the “FDA”), which relate exclusively to the Products;

(c) All of NOVAVAX’s and FIELDING’s right, title, and interest in and to the tradedress, if
any, associated with the Products, subject to any geographic restrictions set forth on Schedule
1.01(a) and excluding any corporate or division name of NOVAVAX or any of its Affiliates (as
defined in Section 6.17 below), any logo of NOVAVAX or any of its Affiliates, and any trademark or
tradename (other than the Trademarks and Tradenames) of NOVAVAX or any of its Affiliates;

(d) All existing inventory of the Primary Products as set forth on Schedule 1.01(d)
attached hereto, subject to the delivery restrictions set forth therein and in Section 1.05(a)
below and to the extent not sold prior to the Closing Date, including any finished goods inventory,
raw materials owned by NOVAVAX and sample product inventory (together, the “Inventory”);

(e) All of NOVAVAX’S and FIELDING’s right, title and interest in and to the contracts set
forth on Schedule 1.01(e) (together, the “Assumed Contracts”);

(f) Customer lists and market research information regarding the Primary Products;

(g) Historical sales results for the Primary Products as measured by factory sales and
prescription data;

(h) Supplier lists for products and components for the Primary Products;

(i) All training materials regarding the Primary Products;

(j) Current and historical sales literature, proof sources and promotional items for the
Primary Products;

(k) All items relating to telesales for the Primary Products to allow for the continuation of
existing programs;

(l) Sales force alignment data and source information for the Primary Products;

(m) Sales force mapping and targeting information, to include existing computer software, for
the Primary Products;

(n) Links/URLs and software to maintain the existing sales management website for the Primary
Products;

(o) Subject to the delivery restrictions set forth in Section 1.05(c) below, all of NOVAVAX’s
right, title, and interest in and to the vehicles set forth on Schedule 1.01(o) attached
hereto; and

(p) To the extent possible after good faith effort by NOVAVAX, all items, materials and the
like of the nature described in clauses (f) through (n) for all Products other than the Primary
Products.

All of the assets described in Sections 1.01(a) — (p) are hereinafter sometimes referred to
together as the “Assets.” This Agreement shall not constitute an agreement to assign any Asset
(including any Assumed Contract), or any claim or right arising thereunder if an attempted
assignment thereof, without consent of a third party, would constitute a breach or other
contravention of any agreement with respect to such Asset. NOVAVAX, FIELDING and PHARMELLE will
each use commercially reasonable efforts (but without any payment of money by NOVAVAX or FIELDING
other than out-of-pocket legal expenses) to obtain the consent of the other party or parties to any
such Asset (including any Assumed Contract) or any claim or right arising thereunder for the
assignment thereof to PHARMELLE. If such consent is not obtained, or if an attempted assignment of
any such Asset (including any Assumed Contract) or claim or right would be ineffective or would
adversely affect the rights of PHARMELLE thereunder so that PHARMELLE would not in fact receive all
such rights, PHARMELLE shall not, except as provided in this sentence, assume liabilities or
obligations with respect thereto, and the parties will cooperate in a mutually agreeable
arrangement under which PHARMELLE would obtain the benefits and assume the obligations thereunder
in accordance with this Agreement, which arrangement may include, without limitation,
subcontracting, sublicensing or subleasing to PHARMELLE, or under which NOVAVAX or FIELDING would
enforce for the benefit of PHARMELLE with PHARMELLE assuming NOVAVAX’s or FIELDING’s obligations,
as applicable, any and all rights of NOVAVAX or FIELDING against a third party. NOVAVAX or
FIELDING, as applicable, will promptly pay to PHARMELLE when received all monies received by such
party under or with respect to any Asset (including any Assumed Contract) or any claim or right or
any benefit arising thereunder, except to the extent the same represents an excluded asset as
contemplated by Section 1.02 below.

1.02 Excluded Assets .

The parties hereby expressly acknowledge that PHARMELLE is not purchasing and shall not
acquire any assets or rights of NOVAVAX or FIELDING other than the Assets, including but not
limited to any right, title or interest in, to or under ESTRASORB®,
ANDROSORB® and Gynodiol®.

3

1.03 Purchase Price.

(a) The purchase price for the Assets (the “Purchase Price”) shall be Two Million Five Hundred
Thousand Dollars ($2,500,000), payable as set forth in Section 1.04 below, and certain royalty
payments pursuant to clause (b) of this Section 1.03. The parties agree and acknowledge that
$100,000 of the Purchase Price (the “Deposit”) has been deposited by PHARMELLE into an escrow
account maintained by West Land Title Company (the “Escrow Agent”), Escrow Account No. 05-06815-19,
at Marshall & Ilsley Bank.

(b) In addition to the amount set forth in Section 1.03(a) above, PHARMELLE agrees to pay
NOVAVAX royalties on the AVC Products (as defined in Section 1.09 below), for the five year period
commencing on the Closing Date and ending on the fifth anniversary thereof, in the amount of 35% of
annual Net Sales of AVC Products between $1,175,000 and $2,200,000 and 25% of annual Net Sales of
AVC Products in excess of $2,200,000. For example, if annual Net Sales for calendar year 2007 are
$2,300,000, payment shall be made in the amount of $358,750 for the amount of such sales between
$1,175,000 and $2,200,000 ($2,200,000 — $1,175,000 = $1,025,000 * .35 = $358,750) and $25,000 for
the amount in excess of $2,200,000 ($2,300,000 — $2,200,000 = $100,000 *.25 = $25,000), for
aggregate royalty payments to NOVAVAX of $383,750 for such year. Royalty payments will be payable
quarterly based on regular calendar quarter-end dates (i.e., December 31, March 31, June 30 and
September 30, provided that the first quarter for which payments shall be made shall
include the stub period between the Closing Date and October 1, 2005) in arrears, commencing
December 31, 2005, no later than the last day of each month following the end of a quarter.
PHARMELLE shall be obligated to pay 50% of the amount due for the first quarter of each payment
year, 50% of the amount due for the second quarter of each payment year, 100% of the amount due for
the third quarter of each payment year, and 100% of the amount due for the fourth quarter of each
payment year, with a true-up at the end of each such year. For purposes of this Agreement, Net
Sales shall mean sales of the AVC Products after deductions for discounts and credits for refunds
and returns and rebates (which rebates shall include those related to sales and usage such as
Medicaid rebates, forced or mandated wholesaler/distributor rebates, and rebates to other
governmental agencies or purchasing associations), but freight charges from PHARMELLE’s warehouse
shall not be deducted from Net Sales.

(c) NOVAVAX shall have the right to review and/or audit PHARMELLE’s books and records in any
manner relevant to the determination of the royalty at any time during the five-year term set forth
above or within one year following its receipt of the final royalty payment, and PHARMELLE shall
fully cooperate in the conduct of any such review or audit. Any such review or audit shall be
conducted at NOVAVAX’s sole expense, and shall be done upon reasonable notice and during normal
business hours at the place of business where the business records in question have been
historically kept. If any such review or audit shall disclose errors which, in the aggregate,
result in an understatement of NOVAVAX’s royalty by five percent or more, then PHARMELLE shall
reimburse direct and reasonable out-of-pocket fees and expenses (including accounting and legal
fees) incurred by NOVAVAX in connection with the review or audit and shall further reimburse
NOVAVAX for the amount of such understatement, plus interest at the then-prevailing prime interest
rate.

1.04 Payment.

At the Closing (as defined in Section1.06 below), PHARMELLE will pay the Purchase Price (not
including any royalty payments) as follows:

(a) $2,400,000.00 shall be paid to NOVAVAX by wire transfer of immediately available funds to
the account specified in Schedule 1.04 attached hereto; and

(b) written instructions will be delivered by PHARMELLE to the Escrow Agent authorizing the
Escrow Agent to release the Deposit to NOVAVAX.

1.05 Delivery of Inventory and Other Tangible Assets; Vehicle Transfer.

(a) Inventory. As contemplated by Section 1.01(d) above, on the Closing Date, NOVAVAX
will sell, assign, convey, and transfer to PHARMELLE, and PHARMELLE will purchase and accept from
NOVAVAX, the Inventory. NOVAVAX will provide to PHARMELLE at the Closing evidence reasonably
acceptable to PHARMELLE that NOVAVAX has deposited the Inventory with a common carrier designated
by PHARMELLE and arranged for delivery thereof to PHARMELLE (which evidence shall include an
inventory sheet); provided, however, that PHARMELLE agrees and acknowledges that
certain raw materials held by Napp Laboratories, LLC constituting the Inventory, as set forth on
Schedule 1.01(d), will not be delivered to PHARMELLE as contemplated by the preceding
sentence but rather will be delivered to KING (as defined in Section 1.09 below) for production and
thereafter delivered by KING to PHARMELLE. All Inventory will be shipped at PHARMELLE’S expense to
PHARMELLE’S facilities in Gilbert, Arizona or such other location(s) as the parties may mutually
agree via the common carrier mentioned in the preceding sentence, which shall have been designated
in advance in writing by PHARMELLE. NOVAVAX shall bear the risk of loss to the Inventory until the
Inventory has been delivered to the carrier designated by PHARMELLE. Thereafter, PHARMELLE shall
bear the risk of loss to the Inventory.

(b) Other Tangible Assets. The tangible Assets, other than the Inventory and other
than as set forth in subsection (c) below, to be sold, assigned, conveyed, and transferred
hereunder to PHARMELLE shall be deposited by NOVAVAX on the Closing Date with a common carrier
designated in writing in advance by PHARMELLE for delivery thereof to PHARMELLE, and NOVAVAX will
provide to PHARMELLE at the Closing evidence reasonably acceptable to PHARMELLE that NOVAVAX has so
deposited such other tangible Assets (which evidence shall include an inventory sheet). All such
other tangible Assets will be shipped at PHARMELLE’S expense to its principal place of business in
Gilbert, Arizona at the address set forth in the introduction to this Agreement or such other
location(s) as the parties may mutually agree via the common carrier mentioned in the preceding
sentence. NOVAVAX shall bear the risk of loss to the other tangible Assets until such Assets have
been delivered to the carrier designated by PHARMELLE. Thereafter, PHARMELLE shall bear the risk
of loss to such other tangible Assets.

(c) Vehicle Transfer. PHARMELLE acknowledges and agrees that the vehicles identified
on Schedule 1.01(o) attached hereto to be transferred by NOVAVAX to PHARMELLE shall not be
transferred at Closing. NOVAVAX agrees to purchase such vehicles from the current owners and,
promptly after such purchase, shall deliver (which delivery shall occur no more than 90 days
following the Closing Date) such vehicles to PHARMELLE at PHARMELLE’S expense to its principal
place of business in Gilbert, Arizona at the address set forth in the introduction to this
Agreement or such other location(s) as the parties may mutually agree. NOVAVAX shall bear the risk
of loss to the vehicles until such vehicles have been delivered to PHARMELLE.

1.06 Closing.

The closing of the transactions contemplated by this Agreement (the “Closing”) shall take
place simultaneously with the execution of this Agreement (the date of the Closing, the “Closing
Date”) as described herein.

1.07 Delivery of Documents.

(a) Subject to the terms and conditions of this Agreement, NOVAVAX and/or FIELDING, as
indicated, will deliver to PHARMELLE at the Closing (unless otherwise specified):

(i) An irrevocable bill of sale and assignment agreement duly executed by authorized officers
of each of NOVAVAX and FIELDING in the form of Exhibit A hereto (the “Bill of Sale”);

(ii) A trademark assignment agreement duly executed by an authorized officer of FIELDING in
favor of PHARMELLE in the form of Exhibit B hereto (the “Fielding Trademark Assignment”);

(iii) A trademark assignment agreement duly executed by an authorized officer of NOVAVAX in
favor of PHARMELLE in the form of Exhibit C hereto (the “NOVAVAX Trademark Assignment”);

(iv) An assumption agreement duly executed by authorized officers of each of NOVAVAX and
FIELDING in the form of Exhibit D hereto (the “Assumption Agreement”);

(v) A complete copy of the NDA at Closing, plus the materials described in Section 1.01(b) in
accordance with a time frame and in a manner reasonably acceptable to the parties, but in no event
later than 30 business days after the Closing Date;

(vi) A copy of the information required by the FDA pursuant to 21 C.F.R. § 314.72 or any
successor or comparable regulation to effect the transfer of the NDA from NOVAVAX to PHARMELLE;

(vii) A copy of the FDA Annual Reports and Adverse Event Report (both as defined in Section
3.03 below);

(viii) Certificates, duly executed by authorized officers of each of NOVAVAX and FIELDING, (1)
attaching good standing certificates of NOVAVAX and FIELDING issued by the Secretary of State of
the State of Delaware as of dates not more than 10 days prior to the Closing Date, (2) attaching
copies of the resolutions of the governing bodies of NOVAVAX and FIELDING, approving the
transactions contemplated hereby, as in effect on the Closing Date, and (3) certifying as to the
incumbency, and specimen signatures, of the officers of NOVAVAX and FIELDING whose signatures
appear on this Agreement and any of the agreements, instruments, certificates and other documents
to be delivered in connection herewith; and

(ix) Written consents from the third parties whose consent is required for the assignment to
and assumption by PHARMELLE of the Assumed Contracts.

(b) Subject to the terms and conditions of this Agreement, PHARMELLE will deliver to NOVAVAX
at the Closing:

(i) The cash portion of the Purchase Price, less the Deposit and excluding the royalty
payments as provided in Section 1.04(a);

(ii) Written instructions to the Escrow Agent authorizing and directing the immediate release
of the Deposit to NOVAVAX;

(iii) The Assumption Agreement duly executed by an authorized officer of PHARMELLE;

(iv) A copy of the information required by the FDA pursuant to 21 C.F.R. § 314.72 or any
successor or comparable regulation to effect the transfer of the NDA from NOVAVAX to PHARMELLE; and

(v) A certificate, duly executed by an authorized officer of PHARMELLE, (1) attaching a good
standing certificate of PHARMELLE issued by the Secretary of State of the State of Missouri as of a
date not more than 10 days prior to the Closing Date, (2) attaching copies of the resolutions of
the governing body of PHARMELLE, approving the transactions contemplated hereby, as in effect on
the Closing Date, and (3) certifying as to the incumbency, and specimen signatures, of the officers
of PHARMELLE whose signatures appear on this Agreement and any of the agreements, instruments,
certificates and other documents to be delivered in connection herewith.

1.08 Conveyance of Assets and Inventory.

NOVAVAX and FIELDING agree to transfer and convey good and marketable title to the Assets
(including the Inventory) to PHARMELLE free and clear of all liens, claims, charges, encumbrances,
or restrictions except as set forth in Section 1.09 below.

1.09 Scope of PHARMELLE’S Rights.

(a) PHARMELLE hereby acknowledges and agrees that, notwithstanding anything to the contrary
set forth in this Agreement, NOVAVAX is transferring to PHARMELLE, with respect to the Products set
forth on Schedule 1.09 attached hereto (the “AVC Products”), the right to manufacture,
market, sell and distribute the AVC Products only in the United States, its territories and
possessions (the “AVC Territory”). PHARMELLE hereby acknowledges and agrees that King
Pharmaceuticals, Inc. (“KING”) retains the right to manufacture and market such products in and
outside the AVC Territory, and sell and distribute such products outside the AVC Territory, as well
as pharmaceutical products that are equivalent or substantially equivalent to such products.
PHARMELLE hereby acknowledges that KING and its Affiliates are also at all times permitted to ship,
deliver and distribute the AVC Products to other parties within the AVC Territory for purposes of
having such other parties distribute the AVC Products outside the AVC Territory. PHARMELLE further
acknowledges and agrees that KING and its Affiliates shall be entitled to use the tradenames
associated with the AVC Products to the extent necessary to fulfill KING’s obligations under
applicable laws or regulations and in connection with the exercise of the rights reserved by KING
and its Affiliates described in this Section 1.09(a).

(b) The parties acknowledge that the Inventory purchased under this Agreement and the Products
to be supplied may contain packaging and labeling with the names, logos, and trademarks of NOVAVAX
and its Affiliates (the “NOVAVAX Packaging Materials”). PHARMELLE may distribute and sell such
Inventory and Products with the NOVAVAX Packaging Materials for so long and until such Inventory is
depleted and such Products are sold; provided that PHARMELLE shall not, and shall have no
right to, use such names, logos, or tradenames for any other purpose and shall acquire no right,
title, or interest in or to such names, logos, and tradenames.

(c) Notwithstanding Section 1.09(b) above, PHARMELLE shall use its reasonable best efforts to
make all necessary arrangements as soon as possible following the Closing so that PHARMELLE will
ship all Products (other than the Inventory) without the use of any NOVAVAX Packaging Materials,
including obtaining all necessary packaging and labeling materials to do so and related regulatory
approvals. Notwithstanding the foregoing, PHARMELLE hereby acknowledges and agrees that all
Products manufactured and produced commencing the Closing Date shall be packaged, labeled and sold
with PHARMELLE packaging materials.

1.10 Taxes.

Each of the parties shall be responsible for and shall promptly pay all federal, state, and
local transfer, sales, and other taxes, if any, levied or imposed upon such party as a result of
the transactions contemplated by this Agreement.

1.11 Assumed Liabilities. 

On the Closing Date, and subject to the terms and conditions of this Agreement, PHARMELLE
shall assume and become liable only for (a) those liabilities and obligations arising after the
Closing Date in connection with the performance by PHARMELLE of the Assumed Contracts (subject to
the last paragraph of Section 1.01 hereof), (b) those liabilities and obligations arising after the
Closing Date in connection with Products sold by PHARMELLE after the Closing Date or the operation
of the business relating to such Products or the Assets after such date, including but not limited
to any product liability claims associated with such Products, and (c) all liability and
responsibility for returns of the Products made after the Closing Date, regardless of when such
products were produced, manufactured or sold.

1.12 Access to Information.

(a) For a period of one year after the Closing, NOVAVAX agrees to cooperate with PHARMELLE and
to grant to PHARMELLE and its employees, attorneys, accountants, officers, representatives, and
agents, during normal business hours and upon ten days’ advance notice, reasonable access to
NOVAVAX’s management personnel and to the records relating to the Products (including, without
limitation, the NDA) and to permit copying at PHARMELLE’S expense of documents relating to the
Assets for the purposes of (i) any financial reporting or tax matters (including, without
limitation, any financial and tax audits, tax contests, tax examination, preparation of any
PHARMELLE tax returns or financial records) relating to the Products; (ii) any claims or litigation
involving PHARMELLE and the Assets relating to the Products; (iii) any investigation of PHARMELLE
being conducted by any federal, state, or local governmental authority relating to the Products;
(iv) any matter relating to any indemnification or representation or warranty or any other term of
this Agreement; or (v) any similar or related matter. NOVAVAX shall maintain all such records and
documents in the United States and shall not destroy or dispose of any such records and documents
without the prior written consent of PHARMELLE. PHARMELLE shall use its reasonable efforts to
ensure that its access to and requests for records and documents pursuant to this Section 1.12(a)
are conducted so as not to interfere with the normal and ordinary operation of NOVAVAX’s business.
PHARMELLE acknowledges that the records and documents made available to PHARMELLE by NOVAVAX shall
be governed by the confidentiality provisions of Section 6.13(a) herein.

(b) For a period of one year after the Closing, PHARMELLE agrees to cooperate with NOVAVAX and
to grant to NOVAVAX and its employees, attorneys, accountants, officers, representatives, and
agents, during normal business hours and upon ten days’ advance notice, reasonable access to
PHARMELLE’s management personnel and to the records relating to the Products during the period the
Assets were owned by NOVAVAX (including, without limitation, the NDA) and to permit copying at
NOVAVAX’s expense of documents relating to the Assets during the period the Assets were owned by
NOVAVAX for the purposes of (i) any financial reporting or tax matters (including, without
limitation, any financial and tax audits, tax contests, tax examination, preparation of any NOVAVAX
tax returns or financial records) relating to the Products; (ii) any claims or litigation involving
NOVAVAX and the Assets relating to the Products; (iii) any investigation of NOVAVAX being conducted
by any federal, state, or local governmental authority relating to the Products; (iv) any matter
relating to any indemnification or representation or warranty or any other term of this Agreement;
or (v) any similar or related matter. PHARMELLE shall maintain all such records and documents in
the United States and shall not destroy or dispose of any such records and documents without the
prior written consent of NOVAVAX. NOVAVAX shall use its reasonable efforts to ensure that its
access to and requests for records and documents pursuant to this Section 1.12(b) are conducted so
as not to interfere with the normal and ordinary operation of PHARMELLE’s business. NOVAVAX
acknowledges that the records and documents made available to NOVAVAX by PHARMELLE shall be
governed by the confidentiality provisions of Section 6.13(a) herein.

1.13 Asset Transfer.

The parties acknowledge and agree that (a) the transactions contemplated hereby are not done
with intent to hinder, delay or defraud any past or future creditor of any party, (b) the parties
are, and have negotiated and arrived at the agreements set forth herein, at arms’ length in all
respects, and (c) the consideration to be paid for the Assets to be sold and assigned hereunder
constitutes reasonably equivalent value therefor.

ARTICLE 2

ACCOUNTS RECEIVABLE AND RETURNED GOODS

2.01 Pre-Closing Accounts Receivable.

The parties agree that any accounts receivable or invoices arising out of sales of the
Products by or on behalf of NOVAVAX on or prior to 12:01 a.m. (E.S.T.) on the Closing Date shall
inure to the benefit of NOVAVAX.

2.02 Post-Closing Accounts Receivable.

The parties agree that any accounts receivable or invoices arising out of sales of the
Products by or on behalf of PHARMELLE after 12:01 a.m. (E.S.T.) on the Closing Date shall inure to
the benefit of PHARMELLE. Without derogating from the foregoing, NOVAVAX agrees that it shall
continue to take orders for the Products for 30 days following the Closing Date. Such orders shall
be reported by NOVAVAX to PHARMELLE promptly after receipt and in no event more than two business
days after such orders are received via facsimile to PHARMELLE at facsimile number (480) 926-5665.
NOVAVAX and PHARMELLE agree to determine promptly after the Closing a mutually agreeable reporting
procedure to communicate the information required by this Section 2.02.

2.03 Returned Goods.

The parties agree that as of and immediately following the Closing Date, PHARMELLE shall be
responsible for handling returns of all Products, whenever sold, that are returned by customers for
credit after the Closing Date. PHARMELLE will be financially responsible for returns of all
Products with a debit memo date or return authorization request date that is nine or fewer days
prior to, or any time after, the Closing Date. NOVAVAX will be financially responsible for returns
of all Products with a debit memo date or return authorization request date that is ten or more
days prior to the Closing Date. PHARMELLE shall handle such returns in accordance with its
then-applicable returned goods policy. NOVAVAX agrees to provide PHARMELLE with any information
reasonably requested by PHARMELLE from time to time regarding NOVAVAX’s selling prices for the
Products in order to assist PHARMELLE in its determination of the amount PHARMELLE must reimburse
customers for returned Products. Such information shall be provided by NOVAVAX to PHARMELLE
promptly, and in any event within ten days after PHARMELLE’s written request therefor. In the event
that following the Closing Date any returns are delivered to NOVAVAX, PHARMELLE shall promptly
reimburse the returning party for such returns upon delivery by NOVAVAX to PHARMELLE of
documentation reasonably acceptable to PHARMELLE establishing such returns.

ARTICLE 3

REGULATORY MATTERS

3.01 Filings with FDA Regarding Transfer of the NDA.

At the Closing, the parties shall file with the FDA the information required pursuant to 21
C.F.R. § 314.72, or any successor or comparable regulation, regarding the transfer of the NDA from
NOVAVAX to PHARMELLE. NOVAVAX shall file the information required of a former owner, and PHARMELLE
shall file the information required of a new owner. The parties also agree to use their best
efforts to take any and all other actions required by the FDA, or other necessary governmental
agencies, if any, to effect the transfer of the NDA from NOVAVAX to PHARMELLE. NOVAVAX may retain
an archival copy of the NDA, including supplements and records that are required to be kept under
21 C.F.R. § 314.81, and NOVAVAX shall treat such archived copies as confidential information of
PHARMELLE governed by the confidentiality provisions of Section 6.13(a) herein.

3.02 Responsibility for the Products.

(a) After the Closing, PHARMELLE shall assume all regulatory responsibilities permitted or
required by applicable laws and regulations to be assumed by PHARMELLE, reporting and otherwise, in
connection with the Assets, Products and the NDA, including but not limited to responsibility for
reporting any adverse drug experiences in connection with the Products, and responsibility for
compliance with all laws and regulations, including the Prescription Drug Marketing Act of 1987, as
the same may be amended from time to time.

(b) For a period of one year after the Closing, PHARMELLE and its Affiliates agree promptly to
submit to NOVAVAX all adverse drug experience information or customer complaints brought to the
attention of PHARMELLE or its Affiliates in respect of the Products, as well as any material events
and matters concerning or affecting the safety or efficacy of the Products. For a period of one
year after the Closing, NOVAVAX and its Affiliates agree promptly to submit to PHARMELLE all
adverse drug experience information or customer complaints brought to the attention of NOVAVAX or
its Affiliates in respect of the Products, as well as any material events and matters concerning or
affecting the safety or efficacy of the Products. NOVAVAX and PHARMELLE agree to determine
promptly after Closing a mutually agreeable reporting procedure to communicate the information
required by this Section 3.02(b).

(c) After the Closing, PHARMELLE shall assume all responsibility for any and all FDA fee
obligations for holders or owners of approved new drug applications and approved, marketed
prescription drug products relating to the Products, including, but not limited to, those defined
under the Prescription Drug User Fee Act of 1992, as the same may be amended from time to time.

(d) Promptly after the Closing, PHARMELLE shall submit all “Changes Being Effected in Thirty
Days” (“CBE 30”) filings with the FDA as may be required in connection with the transactions
contemplated by this Agreement. NOVAVAX shall provide PHARMELLE with all information applicable to
NOVAVAX that is necessary to include in such CBE 30 filings promptly upon PHARMELLE’s request.

(e) Promptly after the Closing, PHARMELLE shall take all actions necessary or required under
applicable laws, rules and regulations to reflect that the Assets are owned by PHARMELLE and that
PHARMELLE has responsibility therefor.

(f) After the Closing, NOVAVAX shall direct all complaints or inquiries concerning the
Products to PHARMELLE at facsimile number (480) 926-5665.

3.03 FDA Annual Reports and Adverse Event Report.

At the Closing, NOVAVAX shall provide PHARMELLE with (a) a copy of the annual reports provided
by NOVAVAX to the FDA for the calendar years 2003 and 2004 (the “FDA Annual Reports”) and (b) a
report listing in reasonable detail any and all adverse drug experiences and/or customer complaints
brought to the attention of NOVAVAX or its Affiliates in respect of the Products during the 12
month period prior to the Closing Date, as well as any material events and matters concerning or
affecting the safety or efficacy of the Products known to NOVAVAX or its Affiliates prior to the
Closing Date (the “Adverse Events Report”).

3.04 Regulatory and Medical Affairs.

Upon the reasonable advance request of PHARMELLE, NOVAVAX may in its sole discretion agree to
provide PHARMELLE with services relating to medical and regulatory affairs concerning the Products,
at PHARMELLE’S expense, for three months following the Closing Date, the cost and nature of which
shall be mutually agreed upon by the parties.

3.05 Rebates for Amounts Paid under Government Programs.

PHARMELLE shall reimburse NOVAVAX for all rebates NOVAVAX is obligated to pay pursuant to any
government rebate program for amounts charged to NOVAVAX’S NDC codes for the Products with respect
to sales of the Products after the Closing Date. All payments due under this Section 3.05 shall be
made promptly to NOVAVAX upon submission to PHARMELLE of invoices that describe the requested
payments in reasonable detail, but in no event later than 30 days after the date of such invoices.
PHARMELLE shall obtain new NDC codes for the Products as soon as practicable after the Closing
Date. In the event PHARMELLE disputes an amount owed under a government rebate program, NOVAVAX
shall promptly provide to PHARMELLE copies of any documents and records evidencing original rebate
claims and any resubmissions of such claims and data relating to unit rebate calculations in order
to enable PHARMELLE to resolve such disputed amount.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

4.01 Representations and Warranties of NOVAVAX.

NOVAVAX and FIELDING, as applicable, make the following representations and warranties to and
for the benefit of PHARMELLE. The phrase “to the knowledge of NOVAVAX and/or FIELDING” or any
substantially equivalent phrase, as used in this Article 4, shall mean to the actual knowledge of
the officers and directors of NOVAVAX or FIELDING.

(a) Organization and Standing. Each of NOVAVAX and FIELDING is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware.

(b) Power and Authority. Each of NOVAVAX and FIELDING has all requisite corporate
power and authority to execute, deliver, and perform this Agreement and the other agreements and
instruments (together, such other agreements and instruments are referred to herein as the
“Transaction Documents”) to be executed and delivered by such party pursuant hereto and to
consummate the transactions contemplated herein and therein. The execution, delivery, and
performance of this Agreement and of the Transaction Documents to be executed and delivered by each
of NOVAVAX and FIELDING pursuant hereto do not, and the consummation of the transactions
contemplated hereby and thereby and compliance with the terms, conditions and provisions hereof and
thereof will not, violate or conflict with any provisions of such party’s organizational documents
(as the same have been amended and restated from time to time), any law, statute, regulation or
rule applicable to such party, or any material agreement, contract, mortgage, lease, license,
instrument, order, judgment, or decree to which such party is a party or by which it is bound,
except where such violation or conflict would not have a material adverse effect on the Assets or
such party’s compliance with and performance under the terms of this Agreement or the Transaction
Documents to which it is a party.

(c) Corporate Action; Binding Effect. Each of NOVAVAX and FIELDING has duly and
properly taken all action required by law, its organizational documents, or otherwise, to authorize
the execution, delivery, and performance by it of this Agreement and the Transaction Documents to
be executed and delivered by such party pursuant hereto and the consummation of transactions
contemplated hereby and thereby. This Agreement has been duly executed and delivered by each of
NOVAVAX and FIELDING and constitutes, and the Transaction Documents to which each of NOVAVAX and
FIELDING is a party when duly executed and delivered by NOVAVAX and FIELDING, as applicable, will
constitute, legal, valid, and binding obligations of NOVAVAX and FIELDING, as applicable,
enforceable against each such party in accordance with their respective terms, except as
enforcement may be affected by bankruptcy, insolvency, or other similar laws relating to or
affecting generally the enforcement of creditors’ rights and by general principles of equity.

(d) Consents. No consent or approval of, or filing with or notice to, any federal,
state, or local governmental or regulatory authority, agency, or department or any other person not
a party to this Agreement is required or necessary to be obtained by NOVAVAX or FIELDING or on
their behalf in connection with the execution, delivery, and performance of this Agreement or the
Transaction Documents to which they are a party or to consummate the transactions contemplated
hereby or thereby, except as contemplated by Section 3.01 hereof or as disclosed in Schedule
4.01(d) attached hereto. A true and correct copy of each Assumed Contract is attached to
Schedule 4.01(d), and a true and correct copy of the requisite third-party consent to each
such contract is also attached thereto.

(e) Ownership of Assets; Sufficiency. Except as disclosed in Schedule 4.01(e)
attached hereto, each of NOVAVAX and FIELDING has good and marketable title to the Assets, free and
clear of all liens, claims, charges, or encumbrances, except for liens for taxes not yet due and
payable. The Assets include all assets of NOVAVAX and FIELDING primarily related to the Products
and the business of NOVAVAX and FIELDING with respect to the Products.

(f) Litigation or Disputes. There is no claim, outstanding commitment to any
governmental regulatory agency, action, suit, proceeding, investigation, or arbitration pending or,
to NOVAVAX’s knowledge, threatened against NOVAVAX or FIELDING relating to the Assets and, to
NOVAVAX’s knowledge, no event has occurred nor does any condition exist on the basis of which any
such proceeding would reasonably be expected to be instituted with any substantial chance of
recovery, and neither NOVAVAX nor FIELDING is in violation of or in default with respect to any
applicable law, rule, regulation, judgment, order, writ, injunction, award, or decree of any
arbitrator, court, or administrative body, the result of any of which, either individually or
cumulatively, would have a materially adverse effect on the Assets or NOVAVAX’s or FIELDING’s
compliance with and performance under the terms of this Agreement or the Transaction Documents to
which it is a party.

(g) Tradenames; Intellectual Property. Schedule 1.01(a) attached hereto is a
true and correct list of all Trademarks and Tradenames owned and/or used by NOVAVAX and FIELDING in
the manufacture, marketing, and sale of the Products. There are no registered trademarks used or
held by NOVAVAX or FIELDING for use in connection with or otherwise necessary for the conduct of
NOVAVAX’s or FIELDING’s business as now conducted with respect to the Products except as set forth
on Schedule 1.01(a). Subject to the restrictions set forth on Schedule 1.01(a)
attached hereto and in Section 1.09 above, NOVAVAX and FIELDING, taken together, have all right,
title and interest in the Trademarks and Tradenames and tradedress in the United States without
infringing on the rights of any third party. To the knowledge of NOVAVAX and FIELDING, neither
NOVAVAX nor FIELDING is infringing on or violating any patent, trademark, service mark, tradename
or copyright of any third party with respect to the Assets, and neither NOVAVAX nor FIELDING has
received any notice of (and is not aware of any reasonable basis for) any claim that any of the
Assets infringe on any intellectual property rights of any other party. There is no claim, action,
suit, or proceeding, pending or, to the knowledge of NOVAVAX or FIELDING, threatened alleging that
the use by NOVAVAX or FIELDING of the Trademarks and Tradenames or tradedress infringes any patents
or other intellectual property rights of third parties, nor does NOVAVAX or FIELDING have any
knowledge of any reasonable basis for such a claim, action, suit or proceeding. Neither NOVAVAX
nor FIELDING has executed or granted to any third party any license, sublicense, or contract
covering the Trademarks and Tradenames or tradedress.

(h) Compliance With Law and Necessary Permits. Each of NOVAVAX and FIELDING has
conducted its operations in connection with the manufacture and sale of the Products in material
compliance with all applicable federal, state, and local laws and regulations, including FDA
regulations, and neither NOVAVAX nor FIELDING has received written notice of a violation or alleged
violation of any such law or regulation. Each of NOVAVAX and FIELDING possesses all material
approvals, consents, licenses, and permits required for the conduct of its business as now
conducted for the Products.

(i) Warranty and Disclaimer of Warranties Regarding Inventory. NOVAVAX warrants that
the Inventory was manufactured in material conformity with the applicable specifications for the
Products and in accordance with current good manufacturing practices in effect at the time of
manufacture. NOVAVAX further warrants that the Inventory, when delivered to PHARMELLE, will not be
(i) adulterated or misbranded within the meaning of the United States Federal Food, Drug and
Cosmetic Act, as amended (the “FD&C Act”) or (ii) an article that may not be introduced into
interstate commerce under the provisions of Sections 404 or 505 of the FD&C Act. WITH RESPECT TO
THE INVENTORY, NOVAVAX MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED, AND SPECIFICALLY MAKES NO
WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.

(j) Recalls or Withdrawals. During the period commencing on January 1, 2005 and
ending on the date hereof, there have been no: (i) Products which have been recalled or withdrawn
by NOVAVAX or its Affiliates (whether voluntarily or otherwise) or (ii) proceedings brought against
NOVAVAX or its Affiliates (whether such proceedings have since been completed or remain pending)
seeking the recall, withdrawal, or seizure of any of the Products or seeking to enjoin NOVAVAX or
any of its Affiliates from distributing such Products.

(k) Facilities and Manufacturing. Except as set forth on Schedule 4.01(k)
attached hereto, and only to the extent it could have a material adverse effect on the Assets or
NOVAVAX’s or FIELDING’s performance hereunder or under any of the Transaction Documents to which it
is a party, during the period commencing on January 1, 2005 and ending on the date hereof, with
respect only to the Products, neither NOVAVAX nor FIELDING has received or been subject to: (i)
any FDA Form 483’s relative to the Products; (ii) any FDA Notices of Adverse Findings relative to
the Products; or (iii) warning letters or other correspondence from the FDA or any other
governmental officials or agencies concerning the Products in which the FDA or other such
governmental officials or agencies asserted that, or questioned whether, the operations of NOVAVAX
or FIELDING were not in compliance with applicable law, regulations, rules, or guidelines.

(l) Conduct of Business. Since January 1, 2005, NOVAVAX has conducted its business
relating to the Products in the ordinary course of its business in all material respects. Without
limiting the generality of the foregoing, since that date, NOVAVAX has not (i) sold, lease,
transferred or assigned any material assets relating to the Products outside the ordinary course of
business, (ii) entered into any material agreement, contract, lease or license relating to the
Products outside the ordinary course of business, (iii) imposed any lien, claim, charge,
encumbrance, or restriction on any of the Assets, or (iv) suffered any material damage, destruction
or loss (whether or not covered by insurance) with respect to any of the Assets.

(m) Absence of Undisclosed Liabilities. To the knowledge of NOVAVAX and FIELDING,
neither NOVAVAX nor FIELDING has any liabilities with respect to the Products or the Assets of any
nature, whether accrued, absolute, contingent or otherwise, asserted or unasserted, known or
unknown, that will become the obligation of PHARMELLE as a consequence of the transactions
contemplated by this Agreement or the Transaction Documents to which NOVAVAX or FIELDING is a
party, except for liabilities expressly described as being assumed by PHARMELLE pursuant to this
Agreement and such Transaction Documents.

(n) Suppliers. Schedule 4.01(n) lists all suppliers to which NOVAVAX made
payments during calendar year 2004 in relation to the Products, or has made or expects to make
payments in relation to the Products during calendar year 2005, in excess of $10,000. NOVAVAX has
no information which might reasonably indicate that any of the suppliers listed on Schedule
4.01(n) intend to cease selling to or dealing with NOVAVAX or the manufacturer of the Products,
nor has any information been brought to NOVAVAX’s attention which might reasonably lead it to
believe any such supplier intends to alter in any material respect the amount of such sales or the
extent of dealings in relation to the Products or would alter in any material respect such sales or
dealings in the event of the consummation of the transactions contemplated by this Agreement or the
Transaction Documents. NOVAVAX has no information which might reasonably indicate, nor has any
information been brought to NOVAVAX’s attention which might reasonably lead it to believe, that any
supplier will not be able to fulfill outstanding or currently anticipated purchase orders placed by
NOVAVAX.

(o) Assumed Contracts. With respect to each of the Assumed Contracts, to the
knowledge of NOVAVAX and FIELDING, (i) each such contract is legal, valid, binding and in full
force and effect, (ii) no party to any such contract is in material breach or default thereof, and
no event has occurred which with notice or lapse of time or both would constitute a material breach
or default, and (iii) no party to any such contract has repudiated any material provision, or
provided notice of termination, thereof.

4.02 Representations and Warranties of PHARMELLE.

PHARMELLE makes the following representations and warranties to and for the benefit of
NOVAVAX.

(a) Organization and Standing. PHARMELLE is a limited liability company duly formed,
validly existing and in good standing under the laws of the State of Missouri.

(b) Power and Authority. PHARMELLE has all requisite power and authority to execute,
deliver, and perform this Agreement and the Transaction Documents to be executed and delivered by
it pursuant hereto and to consummate the transactions contemplated herein and therein. The
execution, delivery, and performance of this Agreement by PHARMELLE and of the Transaction
Documents to be executed and delivered by PHARMELLE do not, and the consummation of the
transactions contemplated hereby and thereby and compliance with the terms, conditions and
provisions hereof and thereof will not, violate or conflict with any provision of PHARMELLE’s
organizational documents, any law, statute, regulation or rule applicable to PHARMELLE, or any
agreement, contract, mortgage, lease, license, instrument, order, judgment, or decree to which
PHARMELLE is a party or by which PHARMELLE is bound.

(c) Corporate Action; Binding Effect. PHARMELLE has duly and properly taken all
action required by law, its organizational documents, or otherwise, to authorize the execution,
delivery, and performance by it of this Agreement and the Transaction Documents to be executed by
it pursuant hereto and the consummation of the transactions contemplated hereby and thereby. This
Agreement has been duly executed and delivered by PHARMELLE and constitutes, and the Transaction
Documents to which it is a party when duly executed and delivered by PHARMELLE will constitute,
legal, valid, and binding obligations of PHARMELLE enforceable against it in accordance with their
respective terms, except as enforcement may be affected by bankruptcy, insolvency, or other similar
laws relating to or affecting generally the enforcement of creditors’ rights and by general
principles of equity.

(d) Consents. No consent or approval of, or filing with or notice to, any federal,
state, or local governmental or regulatory authority, agency, or department or any other person not
a party to this Agreement is required or necessary to be obtained by PHARMELLE or on its behalf in
connection with the execution, delivery, and performance of this Agreement or the Transaction
Documents to which it is a party or to consummate the transactions contemplated hereby or thereby,
except as contemplated by Section 3.01 hereof.

4.03 Survival of Representations and Warranties.

The representations, warranties, and indemnities of the parties contained herein shall survive
the Closing Date and continue in full force and effect for a period of one year, except that (a)
the representations and warranties set forth in Section 4.01(e) pertaining to ownership of the
Assets and Sections 4.01(b) and 4.01(c) relating to authorization shall survive until 30 days past
the statute of limitations applicable thereto, and (b) in any case, liability with respect to any
representation, warranty, covenant or obligation as to which a claim, or notice of a proposed
claim, is made in writing in accordance with Article 5 on or before the expiration of the
applicable survival period shall continue until finally determined and paid.

4.04 Certain Limitations.

(a) NOVAVAX does not make any representation or warranty as to the business prospects of the
Products. PHARMELLE has conducted its own thorough due diligence review and analysis, as it deemed
necessary and appropriate, of the Assets and of the business prospects of the Products. PHARMELLE
is not relying on any representations or warranties from NOVAVAX as to the business prospects of
the Products, or any other representations or warranties except those set forth herein.

(b) PHARMELLE acknowledges and agrees that NOVAVAX does not manufacture, package or test the
Products and is dependent upon third parties for manufacturing, packaging and testing of the
Products. PHARMELLE acknowledges and agrees that NOVAVAX does not guarantee or warrant that any
such third party will continue to manufacture, package or test the Products and/or supply the
Products, and that there is no guarantee of a continued or uninterrupted supply of Products.

ARTICLE 5

INDEMNIFICATION

5.01 Indemnification by NOVAVAX.

(a) NOVAVAX shall indemnify, defend, and hold harmless PHARMELLE from and against and
compensate PHARMELLE for any and all demands, claims, actions, causes of action, assessments,
judgments, deficiencies, damages, losses, liabilities, and expenses of any nature whatsoever
(including, without limitation, reasonable attorneys’ fees and expenses) (together, the
“Indemnified Amounts”) arising out of, in whole or in part, (i) any misrepresentation or breach of
any representation, warranty, covenant, or agreement made or to be performed by NOVAVAX or FIELDING
or any non-fulfillment of any obligation of NOVAVAX or FIELDING pursuant to this Agreement or the
Transaction Documents to which it is a party, (ii) any claim (including, without limitation, a
claim based on contract, warranty or tort) arising out of the sale of any Products sold, or the
operation of the business of NOVAVAX or FIELDING relating to the Products, on or prior to the
Closing Date; and (iii) any liability of NOVAVAX or FIELDING not assumed by PHARMELLE hereunder or
under any of the Transaction Documents to which it is a party.

(b) In the event of indemnification by NOVAVAX pursuant to Section 5.01(a), NOVAVAX shall not
have any obligation to indemnify PHARMELLE from and against any Indemnified Amounts: (i) until and
only to the extent that PHARMELLE has incurred Indemnified Amounts in excess of a Twenty Five
Thousand Dollar ($25,000) deductible, and (ii) to the extent the Indemnified Amounts PHARMELLE has
incurred exceed a Five Hundred Thousand Dollar ($500,000) aggregate ceiling (after which point
NOVAVAX will have no obligation to indemnify PHARMELLE from and against further such Indemnified
Amounts), provided, however, that such ceiling shall not apply in the case of fraud
or willful misrepresentation.

(c) NOVAVAX shall not be liable under this Section 5.01 for any settlement effected without
its consent of any claim, litigation, or proceeding in respect of which indemnity may be sought
hereunder, which consent shall not unreasonably be withheld.

5.02 Indemnification by PHARMELLE .

(a) PHARMELLE shall indemnify, defend, and hold harmless NOVAVAX from and against and
compensate NOVAVAX for any and all Indemnified Amounts arising out of, in whole or in part, (i) any
misrepresentation or breach of any representation, warranty, covenant, or agreement made or to be
performed by PHARMELLE or any non-fulfillment of any obligation of PHARMELLE pursuant to this
Agreement or the Transaction Documents to which it is a party; (ii) any claim (including, without
limitation, a claim based on contract, warranty or tort) arising out of the sale of any Products
sold, or the operation of the business of PHARMELLE relating to the Products, after the Closing
Date; and (iii) any liability expressly assumed by PHARMELLE hereunder or under the Transaction
Documents to which it is a party.

(b) In the event of indemnification by PHARMELLE pursuant to Section 5.02(a), PHARMELLE shall
not have any obligation to indemnify NOVAVAX from and against any Indemnified Amounts: (i) until
and only to the extent that NOVAVAX has incurred Indemnified Amounts in excess of a Twenty Five
Thousand Dollar ($25,000) deductible, and (ii) to the extent the Indemnified Amounts NOVAVAX has
incurred exceed a Five Hundred Thousand Dollar ($500,000) aggregate ceiling (after which point
PHARMELLE will have no obligation to indemnify NOVAVAX from and against further such Indemnified
Amounts), provided, however, that such ceiling shall not apply in the case of fraud
or willful misrepresentation.

(c) PHARMELLE shall not be liable under this Section 5.02 for any settlement effected without
its consent of any claim, litigation or proceeding in respect of which indemnity may be sought
hereunder, which consent shall not unreasonably be withheld.

5.03 Payments.

All amounts payable under this Article 5 shall be paid promptly after receipt by the
indemnifying party of written notice from the indemnified party stating that such Indemnified
Amounts have been incurred, the amount thereof and of the related indemnity payment and
substantiation of such amount and such indemnity payment; provided, however, any
disputed amounts shall be due and payable promptly after such amounts are finally determined to be
owing by the indemnifying party to the indemnified party.

5.04 Conduct of Litigation.

Each party indemnified under the provisions of this Agreement, upon receipt of written notice
of any claim or the service of a summons or other initial legal process upon it in any action
instituted against it, in respect of the agreements contained in this Agreement, shall promptly
give written notice of such claim, or the commencement of such action, or threat thereof, to the
party from whom indemnity shall be sought hereunder; provided, however, that the
failure to provide such notice within a reasonable period of time shall not relieve the
indemnifying party of any of its obligations hereunder except to the extent the indemnifying party
is prejudiced by such failure. Each indemnifying party shall be entitled at its own expense to
participate in the defense of such claim or action, or, if it shall elect, to assume such defense,
in which event such defense shall be conducted by counsel chosen by such indemnifying party, which
counsel may be any counsel reasonably satisfactory to the indemnified party against whom such claim
is asserted or who shall be the defendant in such action, and such indemnified party shall bear all
fees and expenses of any additional counsel retained by it or them. The indemnifying party shall
provide the indemnified person with such additional information and opportunity for consultation as
may reasonably be requested by it. The indemnified party shall render all assistance as the
indemnifying party shall reasonably request in the defense of any such action. Notwithstanding the
foregoing, if the named parties in such action (including impleaded parties) include the
indemnified and the indemnifying parties, and the indemnified party shall have been advised by
counsel that there may be a conflict between the positions of the indemnifying party and the
indemnified party in conducting the defense of such action or that there are legal defenses
available to such indemnified party different from or in addition to those available to the
indemnifying party, then counsel for the indemnified party shall be entitled, if the indemnified
party so elects, to conduct the defense to the extent reasonably determined by such counsel to be
necessary to protect the interests of the indemnified party, at the expense of the indemnifying
party, if it is determined by agreement of the indemnifying party and the indemnified party or by a
court of competent jurisdiction that the indemnified party is entitled to indemnification hereunder
for the Indemnified Amounts giving rise to such action; provided that the indemnifying
party shall be obligated to pay for only one counsel for all indemnified parties. If the
indemnifying party shall elect not to assume the defense of such claim or action, such indemnifying
party shall reimburse such indemnified party for the reasonable fees and expenses of any counsel
retained by it, and shall be bound by the results obtained by the indemnified party in respect of
such claim or action if it is determined by agreement of the indemnifying party and the indemnified
party or by a court of competent jurisdiction that the indemnified party is entitled to
indemnification hereunder for the Indemnified Amounts giving rise to such action; provided,
however, that no such claim or action shall be settled without the written consent of the
indemnifying party, which consent shall not be unreasonably withheld or delayed.

5.05 Exclusive Remedy. The parties acknowledge and agree that the foregoing
indemnification provisions in this Article 5 shall be the exclusive remedy of the parties with
respect to the Assets, the Products, and the transactions contemplated by this Agreement, except in
the event of fraud of willful misrepresentation and except that the parties may seek equitable
relief to enforce any post-closing covenant set forth herein or otherwise as would be permitted
under Section 6.21(d) hereof.

ARTICLE 6

MISCELLANEOUS

6.01 Entire Agreement.

This Agreement (including the Exhibits and Schedules hereto) and the Transaction Documents
constitute the entire agreement between the parties with respect to the subject matter hereof and
thereof and supersede all prior agreements and understandings, both written and oral, between the
parties with respect to the subject matter hereof and thereof. This Agreement or any provision
hereof cannot be amended, changed, supplemented, or waived except in a writing signed by each of
the parties hereto.

6.02 Counterparts.

This Agreement and any amendment or supplement hereto may be executed in two or more
counterparts, each of which shall be deemed to be an original, and all of which taken together
shall constitute one and the same instrument.

6.03 Brokerage and Other Commissions.

The parties each represent and warrant to the other that all negotiations relative to this
Agreement and the transactions contemplated hereby have been carried on by each directly with the
other without intervention of any broker, finder, or other intermediary and that, subject to the
provisions of Article 5, each indemnifies the other and holds it harmless against any claim against
the other for brokerage or other commissions relating to this Agreement or to the transactions
contemplated hereby by any person claiming to have been engaged as a broker or finder by the
indemnifying party.

6.04 Notices.

All notices and other communications required or permitted under this Agreement shall be in
writing and shall be delivered personally or sent by: (a) registered or certified mail, return
receipt requested; (b) a nationally-recognized courier service guaranteeing next-day delivery,
charges prepaid; or (c) facsimile (with the original promptly sent in any of the foregoing
manners). Any such notices shall be addressed to the receiving party at such party’s address set
forth below, or at such other address as may from time to time be furnished by similar notice by
either party.

If to NOVAVAX or FIELDING:

Novavax, Inc.

508 Lapp Road

Malvern, Pennsylvania 19355

Attn: Chief Executive Officer

Facsimile: (484) 913-0152

With a copy to:

White White & Van Etten LLP

55 Cambridge Parkway

Cambridge, Massachusetts 02142

Attn: David A. White

Facsimile: (617) 225-0205

	 	 	 
	If to PHARMELLE:

	 	Pharmelle, LLC

170 S Wm Dillard Drive

Building 3, Suite 109

Gilbert, Arizona 85233

Attn: Joseph D. Ducharme

Facsimile: (480) 926-5665
	 
	 	 
	
 
	 	With a copy to:
	
 
	 	 

Bryan Cave LLP

Two North Central Avenue

Suite 2200

Phoenix, Arizona 85004-4406

Attn: Christopher A. Lause

Facsimile: (602) 716-8466

Any such notice or communication shall be effective upon such personal delivery or delivery by
such courier, upon transmission by facsimile, or three days after it is sent by such registered or
certified mail, as the case may be. Copies shall be sent in the same manner as originals.

6.05 Assignment.

NOVAVAX and FIELDING, on the one hand, and PHARMELLE, on the other hand, may not assign their
rights or obligations under this Agreement without the prior written consent of the other;
provided, however, that either may assign its rights and obligations under this
Agreement, without the prior written consent of the other, to an Affiliate. Any purported
assignment without a required consent shall be void. Any permitted assignee shall assume all
obligations of its assignor under this Agreement. No assignment shall relieve any party of its
responsibility for the performance of any obligation under this Agreement.

6.06 Governing Law.

This Agreement shall be construed and governed in all respects under and in accordance with
the laws of the State of Delaware, without regard to such jurisdiction’s choice or conflicts of law
principles.

6.07 Headings.

The table of contents and all headings used in this Agreement are for convenience of reference
only and shall not affect the interpretation of this Agreement.

6.08 Expenses.

Each party shall be responsible and shall bear all of such party’s own costs and expenses
(including any broker’s or finder’s fees and the expenses of its Representatives, as defined in
Section 6.13(a) below) incurred at any time in connection with the pursuit and consummation of the
transactions contemplated by this Agreement.

6.09 Successors and Assigns.

This Agreement shall be binding upon and shall inure to the benefit of the parties and their
respective successors and permitted assigns.

6.10 Agreement to Take Necessary and Desirable Actions.

The parties each agree to execute and deliver such other documents, certificates, agreements,
and other writings and to take such other actions as may be reasonably necessary in order to
consummate or implement expeditiously the transactions contemplated by this Agreement.

6.11 No Implied Waiver.

No failure or delay on the part of the parties hereto to exercise any right, power, or
privilege hereunder or under any instrument executed pursuant hereto shall operate as a waiver; nor
shall any single or partial exercise of any right, power, or privilege preclude any other or
further exercise thereof or the exercise of any other right, power, or privilege. All rights and
remedies granted herein shall be cumulative (except where expressly stated otherwise) and in
addition to other rights and remedies to which the parties may be entitled at law or in equity.

6.12 Force Majeure.

Any delay in the performance of any of the obligations of either party hereto (except the
payment of money owed) shall not be considered a breach of this Agreement and the time required for
performance shall be extended for a period equal to the period of such delay, provided that
such delay is due to acts of God, weather, fire, explosion; invasion, riot or other civil unrest;
governmental laws, orders, restrictions, actions, embargoes or blockades; national or regional
emergency, injunction, strikes, lock-outs, labor trouble or other industrial disturbances;
inability to obtain or interruption of materials, labor, containers, fuel or transportation; or any
other cause beyond the control of the affected party. The party so affected shall give prompt
notice to the other party of such cause and shall use its reasonable efforts to relieve the effect
of such cause as rapidly as possible.

6.13 Confidentiality; No Disparagement.

The parties hereby agree and acknowledge that any information furnished by the other party in
connection with this Agreement shall be kept strictly confidential and shall not be disclosed to
any other party or used for any purpose other than for the evaluation of and negotiation towards
this Agreement, and each such party shall cause its respective affiliates, directors, officers,
members, employees, advisors, and agents (a party’s “Representatives”) to keep such information
strictly confidential and not to use or disclose such information except as permitted hereby,
provided that a party may disclose such information to those of its Representatives who
have a business need to know such information solely for the purpose of investigating, negotiating
and consummating the purchase and sale of the Assets. Each party agrees to be responsible for any
breach of this Section 6.13(a) by any of such party’s Representatives. Information shall not be
considered confidential under this Section 6.13(a) if (i) it was rightfully in the receiving
party’s possession before receipt from the disclosing party; (ii) it is or becomes a matter of
public knowledge through no fault of the receiving party or its Representatives; (iii) it is
rightfully received by the receiving party from a source not having a duty of confidentiality to
the disclosing party; or (iv) it is independently developed or arrived at by the receiving party
without reliance on or reference to any confidential information. This Section 6.13(a) shall not
prohibit either party from complying with disclosure requirements imposed by law. If a party is
required by law to make any disclosure of confidential information of the other party, it shall
notify the other party, stating the nature of the applicable legal requirement, and, if possible,
the time and place that the disclosure will be made so that the party that furnished such
confidential information may seek a protective order or take other action to limit or prevent such
disclosure. The party required to make such disclosure shall have no obligation to contest or
resist the legal obligation to make such disclosure. NOVAVAX and FIELDING acknowledge that their
confidentiality obligations hereunder extend, for a period of five years after the Closing Date, to
require that they treat confidentially and do not use for any purpose (other than as may be
required to comply with any applicable regulatory or legal requirements) all confidential
information included in or regarding the Assets, liabilities and obligations sold, assigned and
transferred to and assumed by PHARMELLE hereunder.

6.14 Relationship.

Nothing in this Agreement shall be deemed to create an agency, joint venture, partnership, or
similar relationship between NOVAVAX and PHARMELLE.

6.15 Severability.

In case any provision of this Agreement shall be held to be invalid, illegal, or
unenforceable, the validity, legality, or enforceability of the remaining provisions hereof will
not in any way be affected or impaired thereby.

6.16 Press Release.

So long as this Agreement is in effect, neither of the parties hereto, nor their Affiliates,
shall issue or cause the dissemination of any press release or other announcement with respect to
this Agreement or the transactions contemplated hereby without consulting with and obtaining the
consent of the other party, which shall not be unreasonably withheld; provided,
however, that such consent shall not be required where such release or announcement is
required by applicable law or legal process. On the Closing Date, the parties shall issue a joint
press release regarding the sale of the Assets, and NOVAVAX shall, in cooperation with PHARMELLE,
inform any customer who places a purchase order with NOVAVAX for the Products that the Assets have
been sold to PHARMELLE.

6.17 Affiliates.

As used in this Agreement, “Affiliate” shall mean any corporation or non-corporate entity that
controls, is controlled by, or is under common control with the party. A corporation or
non-corporate entity shall be regarded as in control of another corporation if it owns or directly
or indirectly controls at least fifty percent (50%) of the voting stock of the other corporation or
(a) in the absence of the ownership of at least of fifty percent (50%) of the voting stock of a
corporation or (b) in the case of a non-corporate entity, the power to direct or cause the
direction of the management and policies of such corporation or non-corporate entity, as
applicable.

4

6.18 Waiver of Bulk Sales.

The parties waive compliance with any bulk sales law or similar law in connection with the
consummation of the transactions contemplated hereby.

6.19 Exhibits and Schedules.

All Exhibits and Schedules referred to herein form an integral part of this Agreement and are
incorporated into this Agreement by reference.

6.20 Interpretation.

The parties hereto acknowledge and agree that: (a) each party and its Representatives have
reviewed and negotiated the terms and provisions of this Agreement and have contributed to its
revision; and (b) the terms and provisions of this Agreement shall be construed fairly as to each
party hereto and not in favor of or against either party regardless of which party was generally
responsible for the preparation or drafting of this Agreement.

6.21 Arbitration.

(a) Arbitration of Dispute. Any dispute or controversy arising under this agreement,
which is unable to be resolved by good faith negotiations among the parties (NOVAVAX and FIELDING
shall constitute a single “party” for purposes of this Section 6.21), shall be determined and
resolved by binding arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”) in effect on the date the arbitration is commenced. In the event
of any inconsistency between such rules and the terms of this Agreement, this Agreement shall
supersede the rules of the AAA. Judgment on any award rendered in the arbitration may be entered
in any court having jurisdiction and shall be final, binding and non-appealable and conclusive.
The AAA shall have jurisdiction over the parties to this Agreement for purposes of the arbitration.
The provisions of this Agreement pertaining to arbitration shall be binding upon the heirs,
successors, assigns, personal representatives and bankruptcy trustees of the parties hereto. Any
arbitration shall be conducted in (or as close as possible to) the city and state of the principal
place of business of the party not demanding that arbitration be commenced.

(b) Arbitration Procedure. The AAA shall administer the arbitration. The AAA shall
appoint a single arbitrator (the “Arbitrator”) to conduct the arbitration from its regularly
maintained list of commercial arbitrators. The arbitration shall occur within 30 days of the AAA’s
receipt of a demand for arbitration in accordance with this Agreement. Not more than 20 days after
its appointment, the Arbitrator shall conduct a preliminary hearing in accordance with AAA
guidelines. Not less than five days prior to the preliminary hearing, all parties to the
arbitration shall serve upon the other parties a written list of witnesses and exhibits to be used
at the arbitration hearing. Except for good cause shown, no witness or exhibit may be utilized at
the arbitration other than those set forth on such lists. The Arbitrator shall issue a final award
not more than 14 days following the conclusion of the hearing. The Arbitrator shall have the power
to hear and decide, by documents only or with a hearing (at the Arbitrator’s sole discretion), any
pre-hearing motions in the nature of pre-trial motions to dismiss or for summary judgment.

(c) Fees and Expenses. Each party in the arbitration shall initially bear its own
attorneys’ fees and costs of arbitration. The non-prevailing party in the proceeding shall be
ordered to pay, and shall have ultimate responsibility for, all of the Arbitrator’s fees and the
fees of the AAA and to reimburse the prevailing party for its attorneys’ fees, expert witness fees
and costs, and all such fees and costs shall be included in the judgment to be entered against the
non-prevailing party.

(d) Right to Seek Injunctive Relief. Notwithstanding this Section 6.21, either party
may seek preliminary injunctive relief if, in its judgment, such action is necessary to avoid
irreparable damage during the pendency of the arbitration procedures. Each of the parties
acknowledges and agrees that the other party would be damaged irreparably in the event this
Agreement is not performed in accordance with its terms or otherwise is breached or violated.
Accordingly, each of the parties agrees that, without posting bond or other undertaking, the other
party will be entitled to an injunction or injunctions to prevent breaches or violations of the
provisions of this Agreement and to enforce specifically this Agreement and the terms and
provisions hereof.

[Signature page follows.]

5

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above
written.

NOVAVAX, INC.

By:      

Name:      

Title:      

FIELDING PHARMACEUTICAL COMPANY

By:      

Name:      

Title:      

PHARMELLE, LLC

By:      

Name:      

6

Title: _____________________________________EXHIBIT A

BILL OF SALE AND ASSIGNMENT

7

EXHIBIT B

FIELDING TRADEMARK ASSIGNMENT

8

EXHIBIT C

NOVAVAX TRADEMARK ASSIGNMENT

9

EXHIBIT D

ASSUMPTION AGREEMENT

10

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