Document:

Exhibit 10.2

 

EXECUTION COPY

CONFIDENTIAL

 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

Exclusive
Channel Collaboration Agreement

 

This
Exclusive Channel Collaboration Agreement (the “Agreement”) is made and entered into effective as
of March 29, 2013 (the “Effective Date”) by and between Intrexon
Corporation, a Virginia corporation with offices at 20358 Seneca Meadows Parkway, Germantown, MD 20876 (“Intrexon”),
and Ampliphi Biosciences Corporation, a Washington corporation having
a place of business at 800 E. Leigh St., Suite 54, Richmond, VA, 23219 (“Ampliphi”). Intrexon and Ampliphi
may be referred to herein individually as a “Party”, and collectively as the “Parties.”

 

Recitals

 

Whereas,
Intrexon has expertise in and owns or controls proprietary technology relating to the identification, design and production of
genetically modified cells and DNA vectors, and the control of peptide expression; and

 

Whereas,
Ampliphi now desires to become Intrexon’s exclusive channel collaborator with respect to such technology for the purpose
of developing the Bacteriophage Program (as defined herein), and Intrexon is willing to appoint Ampliphi as its exclusive channel
collaborator in the Field (as defined herein, and subject to amendments to the definition as permitted herein) under the terms
and conditions of this Agreement.

 

Now
Therefore, in consideration of the foregoing and the covenants and promises contained herein, the Parties agree
as follows:

 

ARTICLE 1 

 

Definitions

 

As used in this Agreement, the following
capitalized terms shall have the following meanings:

 

1.1 “Affiliate”
means, with respect to a particular Party, any other person or entity that directly or indirectly controls, is controlled by, or
is in common control with such Party. As used in this Section 1.1, the term “controls” (with correlative meanings
for the terms “controlled by” and “under common control with”) means the ownership, directly or indirectly,
of more than fifty percent (50%) of the voting securities or other ownership interest of an entity, or the possession, directly
or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities,
by contract, or otherwise. Notwithstanding the foregoing, Third Security shall be deemed not to be an Affiliate of Intrexon, and
neither Party shall be deemed to be an Affiliate of the other Party. In addition, any other person, corporation, partnership, or
other entity that would be an Affiliate of Intrexon solely because it and Intrexon are under common control by Randal J. Kirk or
by investment funds managed by Third Security or an affiliate of Third Security shall also be deemed not to be an Affiliate of
Intrexon.

 

1.2 “Ampliphi Indemnitees”
has the meaning set forth in Section 9.1.

 

    	 

    	 

    

 

EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.3 “Ampliphi Product”
means any product in the Field that is created, produced, developed, or identified in whole or in part during the Term through
use or practice of Intrexon Channel Technology, Intrexon IP, or the Intrexon Materials.

 

1.4 “Ampliphi Program Patent”
has the meaning set forth in Section 6.2(b).

 

1.5 “Ampliphi Termination
IP” means all Patents or other intellectual property that Ampliphi or any of its Affiliates Controls as of the Effective
Date or during the Term that cover, or is otherwise necessary or useful for, the development, manufacture or Commercialization
of a Reverted Product or necessary or useful for Intrexon to operate in the Field.

 

1.6 “Applicable Laws”
has the meaning set forth in Section 8.2(d)(xii).

 

1.7 “Authorizations”
has the meaning set forth in Section 8.2(d)(xii).

 

1.8 “Bacteriophage Program”
has the meaning set forth in Section 2.1(a).

 

1.9 “CC” has
the meaning set forth in Section 2.2(b).

 

1.10 “Channel-Related Program
IP” has the meaning set forth in Section 6.1(c).

 

1.11 “Claims”
has the meaning set forth in Section 9.1.

 

1.12 “CMCC” has
the meaning set forth in Section 2.2(b).

 

1.13 “Committees”
has the meaning set forth in Section 2.2(a).

 

1.14 “Commercialize”
or “Commercialization” means any activities directed to marketing, promoting, distributing, importing for sale,
offering to sell and/or selling Ampliphi Products.

 

1.15 “Commercial Sale”
means for a given product and country the sale for value of that product by a Party (or, as the case may be, by an Affiliate or
permitted sublicensee of a Party), to a Third Party after regulatory approval (if necessary) has been obtained for such product
in such country.

 

1.16 “Complementary In-Licensed
Third Party IP” has the meaning set forth in Section 3.8(a).

 

1.17 “Confidential Information”
means each Party’s confidential Information, disclosed pursuant to this Agreement or any other confidentiality agreement
between the Parties, regardless of whether in oral, written, graphic or electronic form.

 

1.18 “Control”
means, with respect to Information, a Patent or other intellectual property right, that a Party owns or has a license from a Third
Party to such right and has the ability to grant a license or sublicense as provided for in this Agreement under such right without
violating the terms of any agreement or other arrangement with any Third Party.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.19 “Diligent Efforts”
means, with respect to a Party’s obligation under this Agreement, the level of efforts and resources reasonably required
to diligently develop, manufacture, and/or Commercialize (as applicable) an Ampliphi Product in a sustained manner, consistent
with the efforts and resources a similarly situated company working in the Field would typically devote to a product of similar
potential, taking into account all relevant factors including market potential, profit potential, strategic value and/or proprietary
protection, competition, regulatory risk and manufacturing feasibility, all based on market conditions then prevailing. With respect
to a particular task or obligation, Diligent Efforts requires that the applicable Party promptly assign responsibility for such
task and consistently make and implement decisions and allocate resources designed to advance progress with respect to such task
or obligation.

 

1.20 “Equity Agreement”
has the meaning set forth in Section 5.1.

 

1.21 “Excess Product Liability
Costs” has the meaning set forth in Section 9.3.

 

1.22 “Executive Officer”
means : (a) the Chief Executive Officer of the applicable Party, or (b) another senior executive officer of such Party
who has been duly appointed by the Chief Executive Officer to act as the representative of the Party to resolve, as the case may
be, (i) a Committee dispute, provided that such appointed officer is not a member of the applicable Committee and occupies
a position senior to the positions occupied by the applicable Party’s members of the applicable Committee, or (ii) a
dispute described in Section 11.1.

 

1.23 “FDA” has
the meaning set forth in Section 8.2(d)(xii).

 

1.24 “Field”
means genetically modified bacteriophages using synthetic biology, and the production of bacteriophages using synthetic biology,
for bacteriophage-containing human therapeutics for use (i) in the treatment of bacterial infections associated with acute
and chronic wounds, and (ii) the treatment of acute and chronic Pseudomonas aeruginosa lung infections, and (iii) the
treatment of infections of Clostridium difficile. For clarity, the Field does not include the development or production
of bacteriophage-containing human therapeutics in which the only bacteriophages included in such therapeutic are (A) not genetically
modified, (B) not developed, selected or produced through the use of Intrexon IP, and (C) not developed or selected without
the use of synthetic biology technology (such as in the case of bacteriophages selected through screening libraries, evolutionary
selection, from the environment or other techniques that do not involve recombinant manipulation techniques).

 

1.25 “Field Infringement”
has the meaning set forth in Section 6.3(b).

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.26 “Fully Loaded Cost” means the direct
cost of the applicable good, product or service plus indirect charges and overheads reasonably allocable to the provision of such
good, product or service in accordance with US GAAP. Subject to the approval of a project and its associated budget by the JSC
and the terms of Sections 4.6 and 4.7 (as appropriate), Intrexon will bill for its internal direct costs incurred through the
use of annualized standard full-time equivalents; such rate shall be based upon the actual fully loaded costs of those personnel
directly involved in the provision of such good, product or service. Intrexon may, from time to time, adjust such full-time equivalent
rate based on changes to its actual fully loaded costs and will review the accuracy of its full-time equivalent rate at least
quarterly. Intrexon shall provide Ampliphi with reasonable documentation indicating the basis for any direct and indirect charges,
any allocable overhead, and any such adjustment in full-time equivalent rate.

 

1.27 “In-Licensed Program
IP” has the meaning set forth in Section 3.9(a).

 

1.28 “Information”
means information, results and data of any type whatsoever, in any tangible or intangible form whatsoever, including without limitation,
databases, inventions, practices, methods, techniques, specifications, formulations, formulae, knowledge, know-how, skill, experience,
test data including pharmacological, biological, chemical, biochemical, toxicological and regulatory test data, analytical and
quality control data, stability data, studies and procedures, and patent and other legal information or descriptions.

 

1.29 “Infringement”
has the meaning set forth in Section 6.3(a).

 

1.30 “Intrexon Channel
Technology” means Intrexon’s current and future technology directed towards the design, identification, culturing,
and/or production of genetically modified cells, including without limitation the technology embodied in the Intrexon Materials
and the Intrexon IP, and specifically including without limitation the following of Intrexon’s platform areas and capabilities:
(1) UltraVector®, (2) LEAPTM, (3) DNA and RNA MOD engineering, (4) protein engineering,
(5) transcription control chemistry, (6) genome engineering, and (7) cell system engineering.

 

1.31 “Intrexon Indemnitees”
has the meaning set forth in Section 9.2.

 

1.32 “Intrexon IP”
means the Intrexon Patents and Intrexon Know-How.

 

1.33 “Intrexon Know-How”
means all Information (other than Intrexon Patents) that (a) is Controlled by Intrexon as of the Effective Date or during
the Term and (b) is reasonably required or useful for Ampliphi to conduct the Bacteriophage Program. For the avoidance of
doubt, the Intrexon Know-How shall include any Information (other than Intrexon Patents) in the Channel-Related Program IP.

 

1.34 “Intrexon Materials”
means the genetic code and associated amino acids and gene constructs, in each case that are Controlled by Intrexon, used alone
or in combination and such other proprietary reagents and biological materials including but not limited to plasmid vectors, virus
stocks, cells and cell lines, antibodies, and ligand-related chemistry, in each case that are reasonably required or provided to
Ampliphi by or on behalf of Intrexon to conduct the Bacteriophage Program.

 

1.35 “Intrexon Patents”
means all Patents that (a) are Controlled by Intrexon as of the Effective Date or during the Term; and (b) are reasonably
required or useful for Ampliphi to conduct the Bacteriophage Program. For the avoidance of doubt, the Intrexon Patents shall include
any Patent in the Channel-Related Program IP.

 

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EXECUTION COPY

CONFIDENTIAL 

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.36 “Intrexon Trademarks”
means those trademarks related to the Intrexon Channel Technology that are established from time to time by Intrexon for use across
its channel partnerships or collaborations.

 

1.37 “Inventions”
has the meaning set forth in Section 6.1(b).

 

1.38 “IPC” has
the meaning set forth in Section 2.2(b).

 

1.39 “JSC” has
the meaning set forth in Section 2.2(b).

 

1.40 “Losses”
has the meaning set forth in Section 9.1.

 

1.41 “Net Sales”
means, with respect to any Ampliphi Product, the net sales of such Ampliphi Product by Ampliphi or an Affiliate of Ampliphi (including
without limitation net sales of Ampliphi Product to a non-Affiliate sublicensee but not including net sales by such non-Affiliate
sublicensee), as determined in accordance with US GAAP.

 

1.42 “Patents”
means (a) all patents and patent applications (including provisional applications), (b) any substitutions, divisions,
continuations, continuations-in-part, reissues, renewals, registrations, requests for continued examination, confirmations, re-examinations,
extensions, supplementary protection certificates and the like of the foregoing, and (c) any foreign or international equivalents
of any of the foregoing.

 

1.43 “Product-Specific
Program Patent” means any issued Intrexon Patent where all the claims are directed to Inventions that relate solely to
Ampliphi Products and where all such claims do not do not relate to applications beyond the Field. In the event of a disagreement
between the Parties as to whether a particular Intrexon Patent is or is not a Product-Specific Program Patent, the Parties shall
seek to resolve the issue through discussions at the IPC, provided that if the Parties are unable to resolve the disagreement,
the issue shall be submitted to arbitration pursuant to Section 11.2. Any Intrexon Patent that is subject to such a dispute
shall be deemed not to be a Product-Specific Program Patent unless and until (a) Intrexon agrees in writing that such Patent
is a Product-Specific Program Patent or (b) an arbitrator or arbitration panel determines, pursuant to Article 11, that such
Intrexon Patent is a Product-Specific Program Patent.

 

1.44 “Proposed Terms”
has the meaning set forth in Section 11.2.

 

1.45 “Prosecuting Party”
has the meaning set forth in Section 6.2(c).

 

1.46 “RC” has
the meaning set forth in Section 2.2(b).

 

1.47 “Recovery”
has the meaning set forth in Section 6.3(f).

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.48 “Reserved ECC Field”
means genetically engineered bacteriophages for, and the production of bacteriophages using synthetic biology for, bacteriophage-containing
veterinary therapeutics for use in the treatment of bacterial infections.

 

1.49 “Retained Product”
has the meaning set forth in Section 10.4(a).

 

1.50 “Reverted Product”
has the meaning set forth in Section 10.4(c).

 

1.51 “SEC” means
the United States Securities and Exchange Commission.

 

1.52 “Sublicensing Revenue”
means any cash consideration, or the cash equivalent value of non-cash consideration, regardless of whether in the form of upfront
payments, milestones, or royalties, actually received by Ampliphi or its Affiliate from a Third Party in consideration for a grant
of a sublicense under the Intrexon IP or any rights to develop or Commercialize Ampliphi Products, but excluding: (a) any
amounts paid as bona fide reimbursement or prepayment for research and development costs to the extent incurred following such
grant; (b) bona fide loans or any payments in consideration for a grant of equity of Ampliphi to the extent that such consideration
is equal to or less than fair market value (i.e. any amounts in excess of fair market value shall be Sublicensing Revenue); and
(c) amounts received from sublicensees in respect of any Ampliphi Product sales that are included in the calculation of royalty
payments made to Intrexon under Section 5.4(a).

 

1.53 “Superior Therapy”
means a therapy in the Field that, based on the data then available, (a) demonstrably appears to offer either superior efficacy
or safety or significantly lower cost of therapy, as compared with both (i) those therapies that are marketed (either by Ampliphi
or others) at such time for the indication or, as evidenced to Intrexon by Ampliphi, have been in human clinical trials for the
same indication by Third Parties, and (ii) those therapies that are being actively developed by Ampliphi for such indication
or known by Ampliphi to be or have been in human clinical trials for the same indication by others; (b) demonstrably appears
to represent a substantial improvement over such existing therapies; and (c) has intellectual property protection and a regulatory
approval pathway that, in each case, would not present a significant barrier to commercial development.

 

1.54 “Supplemental In-Licensed
Third Party IP” has the meaning set forth in Section 3.8(a).

 

1.55 “Support Memorandum”
has the meaning set forth in Section 11.2.

 

1.56 “Technology Access
Fee” for the purposes of this Agreement has the meaning as set forth in Section 5.1.

 

1.57 “Term” has
the meaning set forth in Section 10.1.

 

1.58 “Territory”
means the world.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

1.59 “Third Party” means
any individual or entity other than the Parties or their respective Affiliates.

 

1.60 “Third Security”
means Third Security, LLC.

 

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

 

ARTICLE 2 

 

Scope
Of Channel Collaboration; Management

 

2.1 Scope. 

 

(a) Generally. The general purpose
of the channel collaboration described in this Agreement will be to use the Intrexon Channel Technology to research, develop and
Commercialize Ampliphi Products for use in the Field (collectively, the “Bacteriophage Program”). As provided
below, the JSC shall establish, monitor, and govern projects for the Bacteriophage Program. Either Party may propose potential
projects in the Field for review and consideration by the JSC.

 

(b) Reservation of Bactgeriophage Veterninary
Applications. Intrexon and Ampliphi desire to provide a limited time period for the Parties after the Effecive Date to consider
entering into a second exclusive channel collaboration agreement pertaining to certain veterinary applications in the Reserved
Field. For a time period of one year immediately following the Effective Date, neither Intrexon nor its Affiliates shall make the
Intrexon Channel Technology or Intrexon Materials available to any Third Party for the purpose of developing or Commercializing
products in the Reserved Field, and neither Intrexon nor any Affiliate shall pursue (either by itself or with a Third Party or
Affiliate) the Commercialization of any product for purpose of commercial use or sale in the Reserved Field. For clarity, nothing
in the preceding sentence, however, shall prevent Intrexon from performing general research and development that may be applicable
to the Reserved Field. During the one-year period following the Effective Date, Intrexon will not propose, negotiate, or enter
into any collaboration or Commercialization agreement with a Third Party within the Reserved Field, and will, at Ampliphi’s
request, enter into negotiations directed toward the execution of a second exlcusive channel collaboration between the parties,
which second exclusive channel collaboration will be directed to the Reserved Field (or a subset of the Reserved Field as mutually
agreed by the Parties). The terms of this second exclusive channel collaboration agreement will be subject to good faith negotiation
of the parties with respect to any terms relating to consideration (up-front, milestones, and royalty payments) that will be due
to Intrexon, the scope of exclusive field within the Reserved Field, and the relative rights of the Parties to continue products
following any termination, but otherwise will contain similar terms, rights and obligations of the parties as set forth herein.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

2.2 Committees.

 

(a) Generally. The Parties desire
to establish several committees (collectively, “Committees”) to oversee the Bacteriophage Program and to facilitate
communications between the Parties with respect thereto. Each of such Committees shall have the responsibilities and authority
allocated to it in this Article 2. Each of the Committees shall have the obligation to exercise its authority consistent with the
respective purpose for such Committee as stated herein and any such decisions shall be made in good faith.

 

(b) Formation and Purpose. Promptly
following the Effective Date, the Parties shall confer and then create the JSC and the IPC, and, optionally, create one or more
of the other Committees listed in the chart below. Each Committee shall have the purpose indicated in the chart. To the extent
that after conferring both Parties agree to not create a Committee (other than the JSC and the IPC), the creation of such Committee
shall be deferred until one Party informs the other Party of its then desire to create the so-deferred Committee, at which point
the Parties will thereafter promptly create the so-deferred Committee.

 

	
        Committee
	 	
        Purpose

	Joint Steering Committee (“JSC”)	 	Establish projects for the Bacteriophage Program and establish the priorities, as well as approve budgets for such projects. Approve all subcommittee projects and plans (except for decisions of the IPC). The JSC shall establish budgets not less than on a quarterly basis.
	 	 
	Chemistry, Manufacturing and Controls Committee (“CMCC”)	 	Establish project plans and review and approve activities and budgets for chemistry, manufacturing, and controls under the Bacteriophage Program.
	 	 
	Regulatory Committee (“RC”)	 	Review and approve all research and development plans and projects, including clinical projects, associated with any necessary regulatory approvals, all associated publications, and all regulatory filings and correspondence relating to gaining regulatory approval for new Ampliphi Products under the Bacteriophage Program; and review and approve itemized budgets with respect to the foregoing.
	 	 
	Commercialization Committee (“CC”)	 	Establish project plans and review and approve activities and budgets for Commercialization activities under the Bacteriophage Program.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

	
        Committee
	 	
        Purpose

	Intellectual Property Committee (“IPC”)	 	Evaluate all intellectual property issues in connection with the Bacteriophage Program; review and approve itemized budgets with respect to the foregoing.

 

2.3 General Committee Membership and
Procedure. 

 

(a) Membership. For each Committee,
each Party shall designate an equal number of representatives (not to exceed three (3) for each Party) with appropriate expertise
to serve as members of such Committee. For the JSC, the representatives must all be employees of such Party or an Affiliate of
such Party. For Committees other than the JSC, the representatives must all be employees of such Party or an Affiliate of such
Party, with the caveat that each Party may designate for each such other Committee up to one (1) representative who is not
an employee if : (i) such non-employee representative agrees in writing to be bound to the terms of this Agreement for the
treatment and ownership of Confidential Information and Inventions of the Parties, and (ii) the other Party consents to the
designation of such non-employee representative, which consent shall not be unreasonably withheld. For purposes of this Section 2.3,
employees of Third Security may, at Intrexon’s election, serve as members of a Committee as if they were employees of Intrexon.
Each representative as qualified above may serve on more than one (1) Committee as appropriate in view of the individual’s
expertise. Each Party may replace its Committee representatives at any time upon written notice to the other Party, provided that
any replacement shall be qualified as set forth above. Each Committee shall have a chairperson; the chairperson of each committee
shall serve for a two-year term and the right to designate which representative to the Committee will act as chairperson shall
alternate between the Parties, with Ampliphi selecting the chairperson first for the JSC, RC and CC, and Intrexon selecting the
chairperson first for the CMCC and IPC. The chairperson of each Committee shall be responsible for calling meetings, preparing
and circulating an agenda in advance of each meeting of such Committee, and preparing and issuing minutes of each meeting within
fifteen (15) days thereafter.

 

(b) Meetings. Each Committee shall
hold meetings at such times as it elects to do so, but in no event shall such meetings be held less frequently than once every
six (6) months, with the caveat that both Parties may agree to suspend activities of a given Committee other than the JSC
until such time as one Party informs the other Party of its then desire to reactivate the so-suspended Committee, at which point
the Parties will thereafter schedule and hold the next meeting for the reactivated Committee within one (1) month. Meetings
of any Committee may be held in person or by means of telecommunication (telephone, video, or web conferences). To the extent that
a Committee holds any meetings in person, the Parties will alternate in designating the location for such in-person meetings, with
Ampliphi selecting the first meeting location for each Committee. A reasonable number of additional representatives of a Party
may attend meetings of a Committee in a non-voting capacity. Each Party shall be responsible for all of its own expenses of participating
in any Committee excepting that an Intrexon employee or agent serving on a Committee shall not
prevent Intrexon from recouping the Fully Loaded Costs otherwise derived from the labor of that employee or agent in the course
of providing manufacturing or support services as set forth in Sections 4.6 and 4.7 below.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(c) Meeting Agendas. Each Party
will disclose to the other proposed agenda items along with appropriate information at least three (3) business days in advance
of each meeting of the applicable Committee; provided, that a Party may provide its agenda items to the other Party within a lesser
period of time in advance of the meeting, or may propose that there not be a specific agenda for a particular meeting, so long
as such other Party consents to such later addition of such agenda items or the absence of a specific agenda for such Committee
meeting.

 

(d) Limitations of Committee Powers.
Each Committee shall have only such powers as are specifically delegated to it hereunder or from time to time as agreed to in writing
by the mutual consent of the Parties and shall not be a substitute for the rights of the Parties. Without limiting the generality
of the foregoing, no Committee shall have any power to amend this Agreement. Any amendment to the terms and conditions of this
Agreement shall be implemented pursuant to Section 12.7 below.

 

2.4 Committee Decision-Making. If
a Committee is unable to reach unanimous consent on a particular matter within thirty (30) days of its initial consideration
of such matter, then either Party may provide written notice of such dispute to the Executive Officer of the other Party. The Executive
Officers of each of the Parties will meet at least once in person or by means of telecommunication (telephone, video, or web conferences)
to discuss the dispute and use their good faith efforts to resolve the dispute within thirty (30) days after submission of
such dispute to the Executive Officers. If any such dispute is not resolved by the Executive Officers within thirty (30) days
after submission of such dispute to such Executive Officers, then the Executive Officer of the Party specified in the applicable
subsection below shall have the authority to finally resolve such dispute acting in good faith.

 

(a) Casting Vote at JSC. If a dispute
at the JSC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Ampliphi shall have the authority
to finally resolve such dispute.

 

(b) Casting Vote at CMCC. If a
dispute at the CMCC is not resolved pursuant to Section 2.4 above, then (i) in the case of any disputes relating to the
Intrexon Materials, the manufacture of an Ampliphi Product through the use of Intrexon Channel Technology or Intrexon IP, or the
manufacturing of other components of Ampliphi Products contracted for or manufactured by Intrexon or reasonable controls regarding
the dissemination of Intrexon Technology, Intrexon IP or Intrexon Materials, the Executive Officer of Intrexon shall have the authority
to finally resolve such dispute; and (ii) in the case of any other disputes, the Executive Officer of Ampliphi shall have
the authority to finally resolve such dispute.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(c) Casting Vote at RC. If a dispute
at the RC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Ampliphi shall have the authority to
finally resolve such dispute.

 

(d) Casting Vote at CC. If a dispute
at the CC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Ampliphi shall have the authority to
finally resolve such dispute.

 

(e) Casting Vote at IPC. If a dispute
at the IPC is not resolved pursuant to Section 2.4 above, then the Executive Officer of Intrexon shall have the authority
to finally resolve such dispute, provided that such authority shall be shared by the Parties with respect to Product-Specific Program
Patents (i.e., neither Party shall have the casting vote on such matters, and any such disputes shall be resolved pursuant to Article
11).

 

(f) Other Committees. If any additional
Committee or subcommittee other than those set forth in Section 2.2(b) is formed, then the Parties shall, at the time of such
formation, agree on which Party shall have the authority to finally resolve a dispute that is not resolved pursuant to Section 2.4
above.

 

(g) Restrictions. Neither Party
shall exercise its right to finally resolve a dispute at a Committee in accordance with this Section 2.4 in a manner that
(i) excuses such Party from any of its obligations specifically enumerated under this Agreement; (ii) expands the obligations
of the other Party under this Agreement; (iii) negates any consent rights or other rights specifically allocated to the other
Party under this Agreement; (iv) purports to resolve any dispute involving the breach or alleged breach of this Agreement;
(v) resolves a matter if the provisions of this Agreement specify that mutual agreement is required for such matter; or (vi) would
require the other Party to perform any act that is inconsistent with applicable law.

 

ARTICLE 3 

 

License Grants

 

3.1 Licenses to Ampliphi. 

 

(a) Subject to the terms and conditions
of this Agreement, Intrexon hereby grants to Ampliphi a license under the Intrexon IP to research, develop, use, import, make,
have made, sell, and offer for sale Ampliphi Products in the Field in the Territory. Such license shall be exclusive (even as to
Intrexon) with respect to any development, selling, offering for sale or other Commercialization of Ampliphi Products in the Field
in the Territory, and shall be otherwise non-exclusive.

 

(b) Subject to the terms and conditions
of this Agreement, Intrexon hereby grants to Ampliphi a non-exclusive, royalty-free license to use and display the Intrexon Trademarks,
solely in connection with the Commercialization of Ampliphi Products in the promotional materials, packaging, and labeling for
Ampliphi Products, as provided under and in accordance with Section 4.9.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

3.2 Sublicensing. Except as provided
in this Section 3.2, Ampliphi shall not sublicense the rights granted under Section 3.1 to any Third Party, or transfer
the Intrexon Materials to any Third Party, or otherwise grant any Third Party the right to research, develop, use, or Commercialize
Ampliphi Products or use or display the Intrexon Trademarks, in each case except with Intrexon’s written consent, which written
consent may be withheld in Intrexon’s sole discretion. Notwithstanding the foregoing, Ampliphi shall have a limited right
to sublicense under the circumstances described in Sections 3.2(a), 3.2(b) and 3.2(c).

 

(a) Ampliphi may transfer, to the
extent reasonably necessary and after providing Intrexon with reasonable advance notice thereof, Intrexon Materials that are or
express Ampliphi Products to a Third Party contractor performing contract manufacturing, fill, and/or finish responsibilities for
Ampliphi Products, and may in connection therewith grant limited sublicenses necessary to enable such Third Party to perform such
activities. If Ampliphi transfers any Intrexon Materials under this Section 3.2(a), Ampliphi will remain obligated to ensure
that the rights of Intrexon in and to the Intrexon Materials and Intrexon IP and under the provisions of Articles 6 and 7 of this
Agreement are not violated by any such Third Party contractor.

 

(b) Ampliphi may, with Intrexon’s
written consent, which consent shall not be unreasonably withheld or delayed, sublicense the rights granted under Section 3.1
to an Affiliate, or transfer the Intrexon Materials to an Affiliate, or grant an Affiliate the right to display the Intrexon Trademarks.
In the event that Intrexon consents to any such grant or transfer to an Affiliate, Ampliphi shall remain responsible for, and be
guarantor of, the performance by any such Affiliate and shall cause such Affiliate to comply with the provisions of this Agreement
in connection with such performance (as though such Affiliate were Ampliphi), including any payment obligations owed to Intrexon
hereunder.

 

(c) Ampliphi may, upon approval
of the JSC and with Intrexon’s written consent, which consent shall not be unreasonably withheld or delayed, sublicense the
rights granted under Section 3.1 to a Third-Party, or transfer the Intrexon Materials to a Third Party, in each case who is
providing services to Ampliphi in connection with Ampliphi’s exercise of rights under this Agreement, provided that such
sublicense or use of Intrexon Materials shall be limited to those rights or uses necessary for such Third Party to provide such
services. In the event that Intrexon consents to any such grant or transfer to such a Third Party, Ampliphi shall remain responsible
for the performance by any such Third Party and shall cause such Third Party to comply with the provisions of this Agreement in
connection with such performance (as though such Third Party were Ampliphi).

 

3.3 Limitation on Sublicensees.
None of the enforcement rights under the Intrexon Patents that are granted to Ampliphi pursuant to Section 6.3 shall be transferred
to, or exercised by, a sublicensee except with Intrexon’s prior written consent, which may be withheld in Intrexon’s
sole discretion.

 

3.4 No Non-Permitted Use. Ampliphi
hereby covenants that it shall not, nor shall it permit any Affiliate or, if applicable, (sub)licensee, to use or practice, directly
or indirectly, any Intrexon IP, Intrexon Channel Technology, or Intrexon Materials for any purposes other than those expressly
permitted by this Agreement.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

3.5 Exclusivity. Neither Intrexon
nor its Affiliates shall make the Intrexon Channel Technology or Intrexon Materials available to any Third Party for the purpose
of developing or Commercializing products in the Field (except as set forth in Section 3.2), and neither Intrexon nor any
Affiliate shall pursue (either by itself or with a Third Party or Affiliate) the research, development or Commercialization of
any product for purpose of commercial use or sale in the Field, outside of the Bacteriophage Program. Further, neither Ampliphi
nor its Affiliates shall pursue (either by itself or with a Third Party or Affiliate) outside of the Bacteriophage Program the
research, development or Commercialization of any product for purpose of commercial use or sale in the Field. For clarity, the
foregoing sentence shall not restrict Ampliphi’s rights to research, develop or Commercialize any bacteriophage therapeutic
product in which the only bacteriophages included in such therapeutic are developed, selected, or produced without the use of synthetic
DNA technology, including bacteriophages selected through screening libraries, evolutionary selection or other techniques that
do not involve the direct manipulation of nucleic acid sequences.

 

3.6 No Prohibition on Intrexon.
Except as explicitly set forth in Sections 2.1(b), 3.1 and 3.5, nothing in this Agreement shall prevent Intrexon from practicing
or using the Intrexon Materials, Intrexon Channel Technology, and Intrexon IP for any purpose, and to grant to Third Parties the
right to do the same. Without limiting the generality of the foregoing, Ampliphi acknowledges that, except as set forth in Section 2.1(b)
with respect to the Reserved Field, Intrexon has all rights, in Intrexon’s sole discretion, to use or make the Intrexon Materials,
Intrexon Channel Technology (including any genetic materials used in an Ampliphi Product), and Intrexon IP available to Third Party
channel partners or collaborators for use in fields outside the Field.

 

3.7 Rights to Regulatory Data. Ampliphi
shall own and control all regulatory trial data and regulatory filings relating to Commercialization of Ampliphi Products (except
to the extent such become Reverted Products). Ampliphi shall provide to Intrexon at Intrexon’s request full copies of all
trial data and reports, regulatory filings, and communications from regulatory authorities that relate specifically and solely
to Ampliphi Products. To the extent that there exist any trial data and reports, regulatory filings, and communications from regulatory
authorities owned by Ampliphi that relate both to Ampliphi Products and other products produced by Ampliphi outside the Field or
outside the Bacteriophage Program, upon Intrexon’s request Ampliphi shall provide to Intrexon copies of the portions of such
data, reports, filings, and communications that relate to Ampliphi Products, provided any such materials shall be Confidential
Information of Ampliphi (except to the extent such become Reverted Products). Subject to its ongoing obligations of exclusivity
under Section 3.5, Intrexon shall be permitted, directly or in conjunction with or through partners or other channel collaborators,
to reference this data, reports, filings, and communications relating to Ampliphi Products in regulatory filings made to obtain
regulatory approval for products for use in fields outside the Field. Intrexon shall have the right to use any such information
in developing and Commercializing products outside the Field and to license any Third Parties to do so. Notwithstanding the provisions
of this Section 3.7, Intrexon shall not, outside of the Bacteriophage Program, utilize any Ampliphi trial data or reports
in support of obtaining regulatory approval for a product for use in the Field.

 

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Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

3.8 Third Party Licenses. 

 

(a) [*****] shall obtain [*****]
any licenses from Third Parties that are required in order to practice the Intrexon Channel Technology in the Field where the licensed
intellectual property is reasonably necessary for Intrexon to conduct genetic and cell engineering and related analytic activities
under JSC established plans for the Bacteriophage Program (but specifically excluding intellectual property directed to any specific
target genes, methods of treatment or therapy, cell lines, active pharmaceutical ingredients, delivery or packaging methods or
apparatuses, or processes or methods for commercially manufacturing Ampliphi Products) (“Supplemental In-Licensed Third
Party IP”). Other than with respect to Supplemental In-Licensed Third Party IP, [*****] shall be solely responsible for
obtaining [*****] any licenses from Third Parties that [*****] determines, in its sole discretion, are required in order to lawfully
make, use, sell, offer for sale, or import Ampliphi Products (“Complementary In-Licensed Third Party IP”). Supplemental
In-Licensed Third Party IP and Complementary In-Licensed Third Party IP are collectively referred to as “In-Licensed Program
IP”.

 

(b) In the event that either Party
desires to license from a Third Party any Supplemental In-Licensed Third Party IP or Complementary In-Licensed Third Party IP,
such Party shall so notify the other Party, and the IPC shall discuss such In-Licensed Program IP and its applicability to the
Ampliphi Products and to the Field. As provided above in Section 3.8(a), [*****] shall have the sole right and responsibility
to pursue a license under Supplemental In-Licensed Third Party IP, and [*****] hereby covenants that it shall not itself directly
license such Supplemental In-Licensed Third Party IP at any time, provided that [*****] may (but shall not be obligated
to) obtain such a license directly if the Third Party owner or licensee of such Supplemental In-Licensed Third Party IP brings
an infringement action against [*****] or its Affiliates or threatens to bring such action (to the extent such threats would reasonably
be considered to subject the Third Party owner or licensee to declaratory judgment jurisdiction) and, after written notice to [*****]
of such action, [*****] fails to obtain a license to such Supplemental In-Licensed Third Party IP using Diligent Efforts within
ninety (90) days after such notice. Following the IPC’s discussion of any Complementary In-Licensed Third Party IP,
subject to Section 3.8(c), [*****] shall have the right to pursue a license under Complementary In-Licensed Third Party IP
[*****]. For the avoidance of doubt, [*****] may at any time obtain a license under Complementary In-Licensed Third Party IP outside
the Field [*****] provided that if [*****] decides to seek to obtain such a license, it shall use reasonable efforts to
coordinate its licensing activities in this regard with [*****].

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(c) [*****] shall provide the proposed
terms of any license under Complementary In-Licensed Third Party IP and the final version of the definitive license agreement for
any Complementary In-Licensed Third Party IP to the IPC for review and discussion prior to signing, and shall consider [*****]
comments thereto in good faith. To the extent that [*****] obtains a license under Supplemental In-Licensed Third Party IP, [*****]
shall provide the final version of the definitive license agreement for such Supplemental In-Licensed Third Party IP to the IPC. If [*****] acquires rights
under any In-Licensed Program IP outside the Field, it will do so on a non-exclusive basis unless it obtains the prior written
consent of [*****] for such license outside the Field to be exclusive. Notwithstanding the foregoing sentence, [*****] shall have
the right to acquire exclusive rights to Supplemental In-Licensed Third Party IP outside the Field if (i) such rights outside
the Field are limited specifically to non-genetically modified bacteriophages and, (ii) [*****] provides [*****] with thirty
days notice prior to execution of any such exclusive rights to Supplemental In-Licensed Third Party IP. Any Party that is pursuing
a license to any In-Licensed Program IP with respect to the Field under this Section 3.8 shall keep the other Party reasonably
informed of the status of any negotiations relating thereto. For purposes of clarity, (i) any costs incurred by [*****] in
obtaining and maintaining licenses to Supplemental In-Licensed Third Party IP shall be borne solely by [*****], and (ii) any
costs incurred by [*****] in obtaining and maintaining licenses to Complementary In-Licensed Third Party IP (and, to the limited
extent provided in subsection (b), Supplemental In-Licensed Third Party IP) shall be borne solely by [*****].

 

(d) For any Third Party license
under which Ampliphi or its Affiliates obtain a license under Patents claiming inventions or know-how specific to or used or incorporated
into the development, manufacture, and/or Commercialization of Ampliphi Products, Ampliphi shall use commercially reasonable efforts
to ensure that Ampliphi will have the ability, pursuant to Section 10.4(h), to assign such agreement to Intrexon or grant
a sublicense to Intrexon thereunder (having the scope set forth in Section 10.4(h)).

 

(e) The licenses granted to Ampliphi
under Section 3.1 may include sublicenses under Intrexon IP that has been licensed to Intrexon by one or more Third Parties.
Any such sublicenses are subject to the terms and conditions set forth in the applicable upstream license agreement, subject to
the cost allocation set forth in Section 3.8(c), provided that Intrexon shall either provide unredacted copies of such
upstream license agreements to Ampliphi or shall disclose in writing to Ampliphi all of such terms and conditions that are applicable
to Ampliphi. Ampliphi shall not be responsible for complying with any provisions of such upstream license agreements unless, and
to the extent that, such provisions have been disclosed to Ampliphi as provided in the preceding sentence.

 

(f) If either Party receives notice
from a Third Party concerning activities of a Party taken in conjunction with performance of obligations under this Agreement,
which notice alleges infringement by a Party of, or offers license under, Patents or other intellectual property rights owned or
controlled by that Third Party, the receiving Party shall inform the other party thereof within five (5) business days.

 

3.9 Licenses to Intrexon. Subject
to the terms and conditions of this Agreement, Ampliphi hereby grants to Intrexon a non-exclusive, worldwide, fully-paid, royalty-free
license, under any applicable Patents or other intellectual property Controlled by Ampliphi or its Affiliates, solely to the extent
necessary for Intrexon to conduct those responsibilities assigned to it under this Agreement, which license shall be sublicensable
solely to Intrexon’s Affiliates or to any Intrexon subcontractors as permitted in accord with Section 4.6 or as otherwise
permitted to be used by Intrexon in conjunction with support services under Section 4.7 (subject to JSC research plan approval).

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

3.10 Restrictions Relating to Intrexon
Materials. Ampliphi and its permitted sublicensees shall use the Intrexon Materials solely for purposes of the Bacteriophage
Program and not for any other purpose without the prior written consent of Intrexon. With respect to the Intrexon Materials comprising
Intrexon’s vector assembly technology, Ampliphi shall not, and shall ensure that Ampliphi personnel and permitted sublicensees
do not, except as otherwise permitted in this Agreement (a) distribute, sell, lend or otherwise transfer such Intrexon Materials
to any Third Party; (b) co-mingle such Intrexon Materials with any other proprietary biological or chemical materials without
Intrexon’s written consent; or (c) analyze such Intrexon Materials or in any way attempt to reverse engineer or sequence
such Intrexon Materials.

 

ARTICLE 4 

 

Other Rights And Obligations

 

4.1 Development and Commercialization.
Subject to Sections 4.6 and 4.7, Ampliphi shall be solely responsible for the development and Commercialization of Ampliphi Products.
Ampliphi shall be responsible for all costs incurred in connection with the Bacteriophage Program except that Intrexon shall be
responsible for the following: (a) costs of establishing manufacturing capabilities and facilities in connection with Intrexon’s
manufacturing obligation under Section 4.6 (provided, however, that Intrexon may include an allocable portion of such costs,
through depreciation and amortization, when calculating the Fully Loaded Cost of manufacturing an Ampliphi Product, to the extent
such allocation, depreciation, and amortization is permitted by US GAAP, it being recognized that the majority of non-facilities
scale-up costs cannot be capitalized and amortized under US GAAP); (b) costs of basic research with respect to the Intrexon
Channel Technology and Intrexon Materials (i.e., platform improvements) but, for clarity, excluding research described in Section 4.7
or research requested by the JSC for the development of an Ampliphi Product (which research costs shall be reimbursed by Ampliphi);
(c) [*****]; and (d) costs of filing, prosecution and maintenance of Intrexon Patents. The costs encompassed within clause
(a) of the previous sentence shall include the scale-up of Intrexon Materials for generating data for regulatory approval
submissions and Commercialization of Ampliphi Products undertaken pursuant to Section 4.6, which shall be at Intrexon’s
cost whether it elects to conduct such efforts internally or through Third Party contractors retained by either Intrexon or Ampliphi
(with Intrexon’s consent).

 

4.2 Transfer of Technology and Information.
The JSC shall develop a plan and protocol for each project and timing for the transfer of relevant data and materials between the
Parties.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

4.3 Information and Reporting. Ampliphi will keep
Intrexon informed about Ampliphi’s efforts to develop and Commercialize Ampliphi Products, including reasonable and
accurate summaries of Ampliphi’s (and its Affiliates’ and, if applicable, (sub)licensees’) development
plans (as updated), including regulatory plans, marketing plans (as updated), progress towards meeting the goals and
milestones in such plans and explanations of any material deviations, significant developments in the development and/or
Commercialization of the Ampliphi Products, including initiation or completion of a regulatory trial, submission of a United
States or international regulatory filing, receipt of a response to such United States or international regulatory filing,
product safety event, receipt of Regulatory Approval, or commercial launch, and manufacturing costs and pricing information.
As set forth in Section 3.7 above, Ampliphi shall also provide to Intrexon copies of all final regulatory trial
protocols and reports, and regulatory correspondence and filings generated by Ampliphi as soon as practical after they become
available. Intrexon will keep Ampliphi informed about Intrexon’s efforts (a) to establish manufacturing
capabilities and facilities for Ampliphi Products (and Intrexon Materials relevant thereto) and otherwise perform its
manufacturing responsibilities under Section 4.6 and (b) to undertake discovery-stage research for the
Bacteriophage Program with respect to the Intrexon Channel Technology and Intrexon Materials. Unless otherwise
provided herein or directed by the JSC in accord with Section 4.2 above, such disclosures by Ampliphi and Intrexon will
be coordinated by the JSC and made in connection with JSC meetings at least once every six (6) months while Ampliphi
Products are being developed or Commercialized anywhere in the world, and shall be reflected in the minutes of such
meetings.

 

4.4 Regulatory Matters. At all times
after the Effective Date, Ampliphi shall own and maintain, at its own cost, all regulatory filings and regulatory approvals for
Ampliphi Products that Ampliphi is developing or Commercializing pursuant to this Agreement. As such, Ampliphi shall be responsible
for reporting all adverse events related to such Ampliphi Products to the appropriate regulatory authorities in the relevant countries,
in accordance with the applicable laws and regulations of such countries. To the extent that Intrexon will itself develop, or in
collaboration with other third parties develop, Intrexon Materials outside of the Field, Intrexon may request that Ampliphi and
Intrexon establish and execute a separate safety data exchange agreement, which agreement will address and govern the timely exchange
of safety information generated by Ampliphi, Intrexon, and relevant third parties with respect to specific Intrexon Materials.

 

4.5 Diligence. 

 

(a) Ampliphi shall use, and shall
require its sublicensees to use, Diligent Efforts to develop and Commercialize Ampliphi Products.

 

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Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(b) Without limiting the
generality of the foregoing, Intrexon may, from time to time, notify Ampliphi that it believes it has identified a Superior
Therapy, and in such case Intrexon shall provide to Ampliphi its then-available information about such therapy and reasonable
written support for its conclusion that the therapy constitutes a Superior Therapy. Ampliphi shall have the following
obligations with respect to such proposed Superior Therapy: (i) within sixty (60) days after such notification,
Ampliphi shall prepare and deliver to the JSC for review and approval a development plan detailing how Ampliphi will pursue
the Superior Therapy (including a proposed budget), provided that if Amplphi reasonably requests supplemental information in
support of the determination that the proposed Ampliphi Product is a Superior Therapy, such period shall be extended to sixty
(60) days after Ampliphi receives such supplemental inforation; (ii) Ampliphi shall revise the development plan as
directed by the JSC; and (iii) following approval of the development plan by the JSC, Ampliphi shall use Diligent
Efforts to pursue the development of the Superior Therapy under the Bacteriophage Program in accordance with such development
plan. If Ampliphi fails to comply with the foregoing obligations, or if Ampliphi unreasonably exercises its casting vote at
the JSC to either (x) prevent the approval of a development plan for a Superior Therapy; (y) delay such approval
more than sixty (60) days after delivery of the development plan to the JSC; or (z) approve a development plan that
is insufficient in view of the nature and magnitude of the opportunity presented by the Superior Therapy, then Intrexon shall
have the termination right set forth in Section 10.2(c) (subject to the limitation set forth therein). For clarity, any
dispute arising under this 4.5, including any dispute as to whether a proposed project constitutes a Superior Therapy (as
with any other dispute under this Agreement) shall be subject to dispute resolution in accordance with Article 11.

 

(c) The activities of Ampliphi’s
Affiliates and any permitted sublicensees shall be attributed to Ampliphi for the purposes of evaluating Ampliphi’s fulfillment
of the obligations set forth in this Section 4.5.

 

4.6 Manufacturing. Intrexon shall
have the option and, in the event it so elects, shall use Diligent Efforts, to perform any manufacturing activities in connection
with the Bacteriophage Program that relate to the Intrexon Materials, including through the use of a suitable Third Party contract
manufacturer. To the extent that Intrexon so elects, Intrexon may request that Ampliphi and Intrexon establish and execute a separate
manufacturing and supply agreement, which agreement will establish and govern the production, quality assurance, and regulatory
activities associated with manufacture of Intrexon Materials. Except as provided in Section 4.1, any manufacturing undertaken
by Intrexon pursuant to the preceding sentence shall be performed in exchange for cash payments equal to Intrexon’s Fully
Loaded Cost in connection with such manufacturing, on terms to be negotiated by the Parties in good faith. In the event that Intrexon
does not manufacture Intrexon Materials or bulk quantities of other components of Ampliphi Products, then Intrexon shall provide
to Ampliphi or a contract manufacturer selected by Ampliphi and approved by Intrexon all Information Controlled by Intrexon that
is (a) related to the manufacturing of such Intrexon Materials or bulk qualities of other components of Ampliphi Products
for use in the Field and (b) reasonably necessary to enable Ampliphi or such contract manufacturer (as appropriate) for the
sole purpose of manufacturing such Intrexon Materials or bulk quantities of other components of Ampliphi Products. The costs and
expenses incurred by Intrexon in carrying out such transfer shall be borne by Intrexon. Any manufacturing Information transferred
hereunder to Ampliphi or its contract manufacturer shall not be further transferred to any Third Party, including any sublicensee
of Ampliphi, or any Ampliphi Affiliate without the prior written consent of Intrexon; provided, however, that Intrexon shall not
unreasonably withhold such consent if necessary to permit Ampliphi to switch manufacturers.

 

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Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

4.7 Support Services. The JSC will meet promptly
following the Effective Date and establish a plan under which Intrexon will provide support services to Ampliphi for the
research and development of Ampliphi Products under the Bacteriophage Program, which initial plan may be amended from time to
time by the JSC. Ampliphi will compensate Intrexon for such support services with cash payments equal to Intrexon’s
Fully Loaded Cost in connection with such services. Additionally, from time to time, on an ongoing basis, Ampliphi shall
request, or Intrexon may propose, that Intrexon perform certain additional support services with respect to researching and
developing new Ampliphi Products or improving the manufacturing or processing methods for any existing Ampliphi Products. To
the extent that the Parties mutually agree that Intrexon should perform such additional services, the Parties shall negotiate
in good faith the terms under which services would be performed, it being understood that Intrexon would be compensated for
such services by cash payments equal to Intrexon’s Fully Loaded Cost in connection with such services.

 

4.8 Compliance with Law. Each Party
shall comply, and shall ensure that its Affiliates, (sub)licensees and Third Party contractors comply, with all applicable laws,
regulations, and guidelines applicable to the Bacteriophage Program, including without limitation those relating to the transport,
storage, and handling of Intrexon Materials and Ampliphi Products.

 

4.9 Trademarks and Patent Marking. To
the extent permitted by applicable law and regulations, Ampliphi shall ensure that the packaging, promotional materials, and labeling
for Ampliphi Products, as appropriate, shall carry the applicable Intrexon Trademark(s), subject to Ampliphi’s reasonable
approval of the size, position, and location thereof. Consistent with the U.S. patent laws, Ampliphi shall ensure that Ampliphi
Products, or their respective packaging or accompanying literature as appropriate, bear applicable and appropriate patent markings
for Intrexon Patent numbers. Ampliphi shall provide Intrexon with copies of any materials containing the Intrexon Trademarks or
patent markings prior to using or disseminating such materials, in order to obtain Intrexon’s approval thereof. Ampliphi’s
use of the Intrexon Trademarks and patent markings shall be subject to prior review and approval of the IPC. Ampliphi acknowledges
Intrexon’s sole ownership of the Intrexon Trademarks and agrees not to take any action inconsistent with such ownership.
Ampliphi covenants that it shall not use any trademark confusingly similar to any Intrexon Trademarks in connection with any products
(including any Ampliphi Product). From time to time during the Term, Intrexon shall have the right to obtain from Ampliphi samples
of Ampliphi Product sold by Ampliphi or its Affiliates or sublicensees, or other items which reflect public uses of the Intrexon
Trademarks or patent markings, for the purpose of inspecting the quality of such Ampliphi Products, the use of the Intrexon Trademarks,
or the accuracy of the patent markings. In the event that Intrexon inspects under this Section 4.9, Intrexon shall notify
the result of such inspection to Ampliphi in writing thereafter. Ampliphi shall comply with reasonable policies provided by Intrexon
from time-to-time to maintain the goodwill and value of the Intrexon Trademarks.

  

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

ARTICLE 5 

 

Compensation

 

5.1 Technology Access Fee. In partial
consideration for Ampliphi’s appointment as an exclusive channel collaborator in the Field and the other rights granted to
Ampliphi hereunder, Ampliphi shall issue to Intrexon, as an access fee
for commercial license rights to the Intrexon IP granted under Section 3.1, certain equity interests in Ampliphi (each, a
“Technology Access Fee”) in accordance with the terms and conditions of the Stock Issuance Agreement of even
date herewith (collectively, the “Equity Agreement”). As set forth in the Equity Agreement, the Technology Access
Fee will be that number of shares of Ampliphi common stock having a value equaling $3,000,000 (the number of shares to be calculated
according to the terms of the Equity Agreement), and such shares issuance will occur contemporaneously with the execution of this
Agreement and the Equity Agreement. Provided that all closing conditions for the Technology Access Fee Shares (as defined in the
Equity Agreement) that are within the reasonable control of Intrexon have been satisfied or waived, the issuance of the Technology
Access Fee Shares (as set forth in the Equity Agreement) is a condition subsequent to the effectiveness of this Agreement. 

 

5.2 Commercialization Milestones.
Upon the attainment of certain milestone events by an Ampliphi Product (whether such attainment is achieved by Ampliphi, an Affiliate
of Ampliphi, or sublicensee of Ampliphi), Ampliphi has agreed to make certain milestone payments to Intrexon as generally set forth
below in Sections 5.2(a) and 5.2(b), which payments (subject to the terms and conditions of the Equity Agreement) shall be either
in cash or in Ampliphi common stock at Ampliphi’s sole discretion.

 

(a) Clinical Milestone. Within
thirty (30) days of the achievement of the Phase II Milestone Event (as defined in the Equity Agreement), Ampliphi will pay
to Intrexon, according to the timelines and procedures set forth in the Equity Agreement, one of the following: (i) [*****]
in cash, or (ii) the Phase II Milestone Shares (as defined in the Equity Agreement).

 

(b) Approval Milestone. Within
thirty (30) days of the achievement of the Approval Milestone Event (as defined in the Equity Agreement), Ampliphi will pay
to Intrexon, according to the timelines and procedures set forth in the Equity Agreement, one of the following: (i) [*****]
in cash, or (ii) the Approval Milestone Shares (as defined in the Equity Agreement).

 

5.3 Equity Agreement Controls. All
issuances of equity interests to Intrexon shall be in accordance with the terms and conditions of the Equity Agreement, which Equity
Agreement shall control to the extent they may conflict with Sections 5.1 or 5.2 of this Agreement.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

5.4 Royalties. 

 

(a) No later than thirty
(30) days after each calendar quarter in which there are positive Net Sales arising from the sale of any Ampliphi
Product in the Field in the Territory, Ampliphi shall pay to Intrexon on an Ampliphi Product-by-Ampliphi Product basis a
[*****] royalty on the first fifty million dollars ($50M) of annual Net Sales (cumulative worldwide for all Ampliphi
Products), an [*****] royalty on the portion of annual Net Sales (cumulative worldwide for all Ampliphi Products) exceeding
fifty million dollars ($50M) up to and including one hundred million dollars ($100M) of annual Net Sales (cumulative
worldwide for all Ampliphi Products), a [*****] royalty on the portion of annual Net Sales exceeding one hundred million
dollars ($100M) up to and including two-hundred million dollars ($200M) of annual Net Sales (cumulative worldwide for all
Ampliphi Products), and a [*****] royalty on the portion of annual Net Sales exceeding two-hundred million dollars ($200M) of
annual Net Sales (cumulative worldwide for all Ampliphi Products). Commencing with the Effective Date, in the event that are
negative Net Sales for a particular Ampliphi Product in any calendar quarter, neither Ampliphi nor Intrexon shall owe any
payments hereunder with respect to such Ampliphi Product.

 

(b) No later than thirty (30) days
after each calendar quarter in which Ampliphi or any Ampliphi Affiliate receives Sublicensing Revenue, Ampliphi shall pay to Intrexon
[*****] of such Sublicensing Revenue.

 

5.5 Method of Payment. Payments
due to Intrexon under this Agreement shall be paid in United States dollars by wire transfer to a bank in the United States designated
in writing by Intrexon. All references to “dollars” or “$” herein shall refer to United States dollars.

 

5.6 Payment Reports and Records Retention.
Within thirty (30) days after the end of each calendar quarter during which Net Sales have been generated, during which Sublicensing
Revenue has been received, or during which a negative Net Sales has occurred, Ampliphi shall deliver to Intrexon a written report
that shall contain at a minimum for the applicable calendar quarter:

 

(a) gross sales of each Ampliphi
Product on a country-by-country basis;

 

(b) itemized calculation of Net
Sales, showing all applicable deductions;

 

(c) itemized calculation of any
payment due under Section 5.4(b), including an identification of the Ampliphi Product involved, the quantity so used, the
prevailing market price being used by Ampliphi, and an indication of how Ampliphi determined such prevailing market price;

 

(d) itemized calculation of Sublicensing
Revenue;

 

(e) the amount of any negative
Net Sales for the applicable calendar quarter;

 

(f) the amount of the payment (if
any) due pursuant to each of Sections 5.4(a) and 5.4(b);

 

(g) the amount of taxes, if any,
withheld to comply with any applicable law; and

 

(h) the exchange rates used in
any of the foregoing calculations.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

For three (3) years after each sale or other commercial
use of Ampliphi Product, or after incurring any component item Ampliphi incorporated into its calculation of Net Sales or Sublicensing
Revenues, or otherwise impacting Ampliphi’s calculations with regard to payments made to Intrexon in accord with Section 5.4(a)
or 5.4(b), Ampliphi shall keep (and shall ensure that its Affiliates and, if applicable, (sub)licensees shall keep) complete and
accurate records of such sales, commercial use, or component item in sufficient detail to confirm the accuracy of the payment calculations
hereunder.

 

5.7 Audits. 

 

(a) Upon the written request of
Intrexon, Ampliphi shall permit an independent certified public accounting firm of internationally recognized standing selected
by Intrexon, and reasonably acceptable to Ampliphi, to have access to and to review, during normal business hours and upon no less
than thirty (30) days prior written notice, the applicable records of Ampliphi and its Affiliates to verify the accuracy and
timeliness of the reports and payments made by Ampliphi under this Agreement. Such review may cover the records for sales made
in any calendar year ending not more than three (3) years prior to the date of such request. The accounting firm shall disclose
to both Parties whether the royalty reports and/or know-how reports conform to the provisions of this Agreement and/or US GAAP,
as applicable, and the specific details concerning any discrepancies. Such audit may not be conducted more than once in any calendar
year.

 

(b) If such accounting firm concludes
that additional amounts were owed during such period, Ampliphi shall pay additional amounts, with interest from the date originally
due as set forth in Section 5.9, within thirty (30) days of receipt of the accounting firm’s written report. If
the amount of the underpayment is greater than five percent (5%) of the total amount actually owed for the period audited,
then Ampliphi shall in addition reimburse Intrexon for all costs related to such audit; otherwise, Intrexon shall pay all costs
of the audit. In the event of overpayment, any amount of such overpayment shall be fully creditable against amounts payable for
the immediately succeeding calendar quarter(s).

 

(c) Intrexon shall (i) treat
all information that it receives under this Section 5.7 in accordance with the confidentiality provisions of Article 7 and
(ii) cause its accounting firm to enter into an acceptable confidentiality agreement with Ampliphi obligating such firm to
retain all such financial information in confidence pursuant to such confidentiality agreement, in each case except to the extent
necessary for Intrexon to enforce its rights under this Agreement.

 

5.8 Taxes. The Parties will cooperate
in good faith to obtain the benefit of any relevant tax treaties to minimize as far as reasonably possible any taxes which may
be levied on any amounts payable hereunder. Ampliphi shall deduct or withhold from any payments any taxes that it is required by
applicable law to deduct or withhold. Notwithstanding the foregoing, if Intrexon is entitled under any applicable tax treaty to
a reduction of the rate of, or the elimination of, applicable withholding tax, it may deliver to Ampliphi or the appropriate governmental
authority (with the assistance of Ampliphi to the extent that this is reasonably required and is expressly requested in writing)
the prescribed forms necessary to reduce the applicable rate of withholding or to relieve Ampliphi of its
obligation to withhold tax, and Ampliphi shall apply the reduced rate of withholding tax, or dispense with withholding tax, as
the case may be, provided that Ampliphi has received evidence of Intrexon’s delivery of all applicable forms (and, if necessary,
its receipt of appropriate governmental authorization) at least fifteen (15) days prior to the time that the payment is due.
If, in accordance with the foregoing, Ampliphi withholds any amount, it shall make timely payment to the proper taxing authority
of the withheld amount, and send to Intrexon proof of such payment within forty-five (45) days following that latter payment.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

5.9 Late Payments. Any amount owed
by Ampliphi to Intrexon under this Agreement that is not paid within the applicable time period set forth herein shall accrue interest
at the lower of (a) two percent (2%) per month, compounded, or (b) the highest rate permitted under applicable law.

 

ARTICLE 6 

 

Intellectual Property

 

6.1 Ownership. 

 

(a) Subject to the license granted
under Section 3.1, all rights in the Intrexon IP shall remain with Intrexon.

 

(b) Ampliphi and/or Intrexon may
solely or jointly conceive, reduce to practice or develop discoveries, inventions, processes, techniques, and other technology,
whether or not patentable, in the course of performing the Bacteriophage Program (collectively “Inventions”).
Each Party shall promptly provide the other Party with a detailed written description of any such Inventions that relate to the
Field. Inventorship shall be determined in accordance with United States patent laws.

 

(c) Intrexon shall solely own all
right, title and interest in all Inventions made with, using, or otherwise incorporating Intrexon Channel Technology, together
with all Patent rights and other intellectual property rights therein (the “Channel-Related Program IP”). Ampliphi
hereby assigns all of its right, title and interest in and to the Channel-Related Program IP to Intrexon. Ampliphi agrees to execute
such documents and perform such other acts as Intrexon may reasonably request to obtain, perfect and enforce its rights to the
Channel-Related Program IP and the assignment thereof.

 

(d) Notwithstanding anything to
the contrary in this Agreement, any discovery, invention, process, technique, or other technology, whether or not patentable, that
is conceived, reduced to practice or developed by Ampliphi solely or jointly through the use of the Intrexon Channel Technology,
Intrexon IP, or Intrexon Materials in breach of the terms and conditions of this Agreement, together with all patent rights and
other intellectual property rights therein, shall be solely owned by Intrexon and shall be included in the Channel-Related Program
IP.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(e) All Information regarding Channel-Related
Program IP shall be Confidential Information of Intrexon. Ampliphi shall be under appropriate written agreements with each of its
employees, contractors, or agents working on the Bacteriophage Program, pursuant to which such person shall grant all rights in
the Inventions to Ampliphi (so that Ampliphi may convey certain of such rights to Intrexon, as provided herein) and agree to protect
all Confidential Information relating to the Bacteriophage Program.

 

6.2 Patent Prosecution. 

 

(a) Intrexon shall have the sole
right, but not the obligation, to (i) conduct and control the filing, prosecution and maintenance of the Intrexon Patents,
and (ii) conduct and control the filing, prosecution, and maintenance of any applications for patent term extension and/or
supplementary protection certificates that may be available as a result of the regulatory approval of any Ampliphi Product. At
the reasonable request of Intrexon, Ampliphi shall cooperate with Intrexon in connection with such filing, prosecution, and maintenance,
at Intrexon’s expense. Under no circumstances shall Ampliphi (A) file, attempt to file, or assist anyone else in filing,
or attempting to file, any Patent application, either in the United States or elsewhere, that claims or uses or purports to claim
or use or relies for support upon an Invention owned by Intrexon, or (B) use, attempt to use, or assist anyone else in using
or attempting to use, the Intrexon Know-How, Intrexon Materials, or any Confidential Information of Intrexon to support the filing
of a Patent application, either in the United States or elsewhere, that contains claims directed to the Intrexon IP, Intrexon Materials,
or the Intrexon Channel Technology, or (C) without prior approval of the IPC, file, attempt to file, or assist anyone else
in filing, or attempting to file, any application for patent term extension or supplementary protection certificate, either in
the United States or elsewhere, that relies upon the regulatory approval of an Ampliphi Product.

 

(b) Ampliphi shall have the sole
right, but not the obligation, to conduct and control the filing, prosecution and maintenance of any Patents claiming Inventions
that are owned by Ampliphi or its Affiliates and not assigned to Intrexon under Section 6.1(c) (“Ampliphi Program
Patents”). At the reasonable request of Ampliphi, Intrexon shall cooperate with Ampliphi in connection with such filing,
prosecution, and maintenance, at Ampliphi’s expense.

 

(c) As used in this Section, “Prosecuting
Party” means Intrexon in the case of Intrexon Patents and Ampliphi in the case of Ampliphi Program Patents. The Prosecuting
Party shall be entitled to use patent counsel selected by it and reasonably acceptable to the non-Prosecuting Party (including
in-house patent counsel as well as outside patent counsel) for the prosecution of the Intrexon Patents and Ampliphi Program Patents,
as applicable. The Prosecuting Party shall:

 

(i) regularly provide the other Party
in advance with reasonable information relating to the Prosecuting Party’s prosecution of Patents hereunder, including by
providing copies of substantive communications, notices and actions submitted to or received from the relevant patent authorities
and copies of drafts of filings and correspondence that the Prosecuting Party proposes to submit to such patent authorities
(it being understood that, to the extent that any such information is readily accessible to the public, the Prosecuting Party may,
in lieu of directly providing copies of such information to such other Party, provide such other Party with sufficient information
that will permit such other Party to access such information itself directly);

 

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to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(ii) consider in good faith and consult
with the non-Prosecuting Party regarding its timely comments with respect to the same; provided, however, that if, within fifteen
(15) days after providing any documents to the non-Prosecuting Party for comment, the Prosecuting Party does not receive any
written communication from the non-Prosecuting Party indicating that it has or may have comments on such document, the Prosecuting
Party shall be entitled to assume that the non-Prosecuting Party has no comments thereon;

 

(iii) consult with the non-Prosecuting
Party before taking any action that would reasonably be expected to have a material adverse impact on the scope of claims within
the Intrexon Patents and Ampliphi Program Patents, as applicable.

 

6.3 Infringement of Patents by Third
Parties. 

 

(a) Except as expressly provided
in the remainder of this Section 6.3, Intrexon shall have the sole right to take appropriate action against any person or
entity directly or indirectly infringing any Intrexon Patent (or asserting that an Intrexon Patent is invalid or unenforceable)
(collectively, “Infringement”), either by settlement or lawsuit or other appropriate action.

 

(b) Notwithstanding the foregoing,
Ampliphi shall have the first right, but not the obligation, to take appropriate action to enforce Product-Specific Program Patents
against any Infringement that involves a commercially material amount of allegedly infringing activities in the Field (“Field
Infringement”), either by settlement or lawsuit or other appropriate action. If Ampliphi exercises the foregoing right,
Intrexon agrees to be named in any such action if required. If Ampliphi fails to take the appropriate steps to enforce Product-Specific
Program Patents against any Field Infringement within one hundred eighty (180) days of the date one Party has provided notice
to the other Party pursuant to Section 6.3(g) of such Field Infringement, then Intrexon shall have the right (but not the
obligation), at its own expense, to enforce Product-Specific Program Patents against such Field Infringement, either by settlement
or lawsuit or other appropriate action.

 

(c) With respect to any Field Infringement
that cannot reasonably be abated through the enforcement of Product-Specific Program Patents pursuant to Section 6.3(b) but
can reasonably be abated through the enforcement of Intrexon Patent(s) (other than the Product-Specific Program Patents), Intrexon
shall be obligated to choose one of the following courses of action: (i) enforce one or more of the applicable Intrexon Patent(s)
in a commercially reasonable manner against such Field Infringement, or (ii) [*****]. To the extent Ampliphi shall be entitled
to a share of the Recovery a set forth in Section 6.3(f), Intrexon and Ampliphi shall bear the costs and expenses of such
enforcement equally. The determination of which Intrexon Patent(s) to assert shall be made by Intrexon in its sole discretion; provided,
however, that Intrexon shall consult in good faith with Ampliphi on such determination. For the avoidance of doubt, Intrexon has
no obligations under this Agreement to enforce any Intrexon Patents against, or otherwise abate, any Infringement that is not a
Field Infringement.

 

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Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(d) In the event a Party pursues
an action under this Section 6.3, the other Party shall reasonably cooperate with the enforcing Party with respect to the
investigation and prosecution of any alleged, threatened, or actual Infringement, at the enforcing Party’s expense (except
with respect to an action under Section 6.3(c), where all costs and expenses will be shared equally in accordance with terms
thereof).

 

(e) Ampliphi shall not settle or
otherwise compromise any action under this Section 6.3 in a way that diminishes the rights or interests of Intrexon outside
the Field or adversely affects any Intrexon Patent without Intrexon’s prior written consent, which consent shall not be unreasonably
withheld. Intrexon shall not settle or otherwise compromise any action under this Section 6.3 in a way that diminishes the
rights or interests of Ampliphi in the Field or adversely affects any Intrexon Patent with respect to the Field without Ampliphi’s
prior written consent, which consent shall not be unreasonably withheld.

 

(f) Except as otherwise agreed
to by the Parties in writing, any settlements, damages or other monetary awards recovered pursuant to a suit, proceeding, or action
brought pursuant to Section 6.3 will be allocated first to the costs and expenses of the Party controlling such action, and
second, to the costs and expenses (if any) of the other Party (to the extent not otherwise reimbursed), and any remaining amounts
(the “Recovery”) will be shared by the Parties as follows: In any action initiated by Intrexon pursuant to Section 6.3(a)
that does not involve Field Infringement, or in any action initiated by Intrexon pursuant to Section 6.3(b), Intrexon shall
retain one hundred percent (100%) of any Recovery. In any action initiated by Ampliphi pursuant to Section 6.3(b), Ampliphi
shall retain one hundred percent (100%) of any Recovery, but such Recovery shall be shared with Intrexon as Net Sales. In
any action initiated by Intrexon or Ampliphi pursuant to Section 6.3(c), the Parties shall share the Recovery equally, and
such Recovery shall not be deemed to constitute Sublicensing Revenue.

 

(g) Ampliphi shall promptly notify
Intrexon in writing of any suspected, alleged, threatened, or actual Infringement of which it becomes aware, and Intrexon shall
promptly notify Ampliphi in writing of any suspected, alleged, threatened, or actual Field Infringement of which it becomes aware.

 

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

ARTICLE 7 

 

Confidentiality

 

7.1 Confidentiality. Except to the
extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, each Party agrees that it shall keep
confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement
any Confidential Information disclosed to it by the other Party pursuant to this Agreement, except to the extent that the receiving
Party can demonstrate by competent evidence that specific Confidential Information:

 

(a) was already known to the receiving
Party and can be demonstrated by written records, other than under an obligation of confidentiality, at the time of disclosure
by the other Party;

 

(b) was generally available to
the public or otherwise part of the public domain at the time of its disclosure to the receiving Party;

 

(c) became generally available
to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving
Party in breach of this Agreement;

 

(d) was disclosed to the receiving
Party, other than under an obligation of confidentiality to a Third Party, by a Third Party who had no obligation to the disclosing
Party not to disclose such information to others; or

 

(e) was independently discovered
or developed by the receiving Party without the use of Confidential Information belonging to the disclosing Party, as documented
by the receiving Party’s written records.

 

The foregoing non-use and non-disclosure
obligation shall continue (i) indefinitely, for all Confidential Information that qualifies as a trade secret under applicable
law; or (ii) for the Term of this Agreement and for seven (7) years thereafter, in all other cases.

 

7.2 Authorized Disclosure. Notwithstanding
the limitations in this Article 7, either Party may disclose the Confidential Information belonging to the other Party to the extent
such disclosure is reasonably necessary in the following instances:

 

(a) complying with applicable laws
or regulations or valid court orders, provided that the Party making such disclosure provides the other Party with reasonable
prior written notice of such request or demand for disclosure and makes a reasonable effort to obtain, or to assist the other Party
in obtaining, a protective order preventing or limiting the disclosure and/or requiring that the terms and conditions of this Agreement
be used only for the purposes for which the law or regulation required, or for which the order was issued;

 

(b) to regulatory authorities in
order to seek or obtain approval to conduct regulatory trials, or to gain regulatory approval, of Ampliphi Products or any products
being developed by Intrexon or its other licensees and/or channel partners or collaborators, provided that the Party making such
disclosure (i) provides the other Party with reasonable opportunity to review any such disclosure in advance and to suggest
redactions or other means of limiting the disclosure of such other Party’s Confidential Information and (ii) does not
unreasonably reject any such suggestions;

 

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to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(c) disclosure to investors and
potential investors, acquirers, or merger candidates who agree to maintain the confidentiality of such information, provided
that such disclosure is used solely for the purpose of evaluating such investment, acquisition, or merger (as the case may
be);

 

(d) disclosure on a need-to-know
basis to Affiliates, licensees, sublicensees, employees, consultants or agents (such as CROs) who agree to be bound by obligations
of confidentiality and non-use at least equivalent in scope to those set forth in this Article 7; and

 

(e) disclosure of the terms of
this Agreement by Intrexon to collaborators and other channel partners or collaborators who agree to be bound by obligations of
confidentiality and non-use at least equivalent in scope to those set forth in this Article 7.

 

7.3 Publicity; Publications. The
Parties agree that the public announcement of the execution of this Agreement shall be substantially in the form of a press release
and/or the filing of a Form 8-K by Ampliphi, which shall be mutually agreed to by the Parties. Each Party will provide the other
Party with the opportunity to review and comment, prior to submission or presentation, on external reports, publications and presentations
(e.g., press releases, reports to government agencies, abstracts, posters, manuscripts and oral presentations) that refer to the
Bacteriophage Program or programs that are approved by the JSC. For such reports, publications, and presentations, the disclosing
Party will provide the other Party at least fifteen (15) calendar days for review of the proposed submission or presentation.
In the case of a Form 8-K filing, such shall be provided to Intrexon by Ampliphi as soon as practicable prior to filing. For reports
and manuscripts, the disclosing Party will provide the other Party at least thirty (30) days for review of the report or manuscript.
The presenting Party will act in good faith to incorporate the comments of the other Party and shall, in any event, redact any
Confidential Information of the other Party and cooperate with the other Party to postpone such submissions or presentations if
necessary to provide the other Party with sufficient time to prepare and file any related Patent applications before the submission
or presentation occurs, as appropriate.

 

7.4 Terms of the Agreement. Each
Party shall treat the terms of this Agreement as the Confidential Information of other Party, subject to the exceptions set forth
in Section 7.2. Notwithstanding the foregoing, each Party acknowledges that the other Party may be obligated to file a copy
of this Agreement with the SEC, either as of the Effective Date or at some point during the Term. Each Party shall be entitled
to make such a required filing, provided that it requests confidential treatment of certain commercial terms and sensitive technical
terms hereof to the extent such confidential treatment is reasonably available to it. In the event of any such filing, the filing
Party shall provide the other Party with a copy of the Agreement marked to show provisions for which the filing Party intends to
seek confidential treatment and shall reasonably consider and incorporate the other Party’s comments thereon to the extent
consistent with the legal requirements governing redaction of information from material agreements that must be publicly filed.
The other Party shall promptly provide any such comments.

  

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CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

7.5 Proprietary Information and Operational
Audits. 

 

(a) For the purpose of confirming
compliance with the Field-limited licenses granted in Article 3, the diligence obligations of Article 4, and the confidentiality
obligations under Article 7, Ampliphi acknowledges that Intrexon’s authorized representative(s), during regular business
hours may (i) examine and inspect Ampliphi’s facilities and (ii) inspect all data and work products relating to
this Agreement, subject to restrictions imposed by applicable laws. Any examination or inspection hereunder shall require five
(5) business days written notice from Intrexon to Ampliphi. Ampliphi will make itself and the pertinent employees and/or agents
available, on a reasonable basis, to Intrexon for the aforementioned compliance review.

 

(b) For the purpose of confirming
compliance with the diligence obligations of Section 4.5, and the confidentiality obligations under Article 7, Intrexon acknowledges
that Ampliphi authorized representative(s), during regular business hours may (i) examine and inspect Intrexon’s facilities
and (ii) inspect all data and work products relating to this Agreement. Any examination or inspection hereunder shall require
five (5) business days written notice from Ampliphi to Intrexon. Intrexon will make itself and the pertinent employees and/or
agents available, on a reasonable basis, to Ampliphi for the aforementioned compliance review.

 

(c) In view of the Intrexon Confidential
Information, Intrexon Know-How, and Intrexon Materials transferred to Ampliphi hereunder, Intrexon from time-to-time, but no more
than quarterly, may request that Ampliphi confirm the status of the Intrexon Materials at Ampliphi (i.e. how much used, how much
shipped, to whom and any unused amounts destroyed (by whom, when) as well as any amounts returned to Intrexon or destroyed). Within
ten (10) business days of Ampliphi’s receipt of any such written request, Ampliphi shall provide the written report
to Intrexon.

 

7.6 Intrexon Commitment. Intrexon
shall use reasonable efforts to obtain an agreement with its other licensees and channel partners or collaborators to enable Ampliphi
to disclose confidential information of such licensees and channel partners or collaborators to regulatory authorities in order
to seek or obtain approval to conduct regulatory trials, or to gain regulatory approval of, Ampliphi Products, in a manner consistent
with the provisions of Section 7.2(b).

 

ARTICLE 8 

 

Representations And Warranties 

 

8.1 Representations and Warranties of
Ampliphi. Ampliphi hereby represents and warrants to Intrexon that, as of the Effective Date:

 

(a) Corporate Power. Ampliphi is
duly organized and validly existing under the laws of Washington and has full corporate power and authority to enter into this
Agreement and to carry out the provisions hereof.

 

(b) Due Authorization. Ampliphi
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person executing this
Agreement on Ampliphi’s behalf has been duly authorized to do so by all requisite corporate action.

 

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Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

(c) Binding Agreement. This Agreement
is a legal and valid obligation binding upon Ampliphi and enforceable in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’
rights, and subject to general equity principles and to limitations on availability of equitable relief, including specific performance.
The execution, delivery and performance of this Agreement by Ampliphi does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound. Ampliphi is aware of no action, suit or inquiry or investigation
instituted by any governmental agency which questions or threatens the validity of this Agreement.

 

8.2 Representations and Warranties of
Intrexon. Intrexon hereby represents and warrants to Ampliphi that, as of the Effective Date:

 

(a) Corporate Power. Intrexon is
duly organized and validly existing under the laws of Virginia and has full corporate power and authority to enter into this Agreement
and to carry out the provisions hereof.

 

(b) Due Authorization. Intrexon
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person executing this
Agreement on Intrexon’s behalf has been duly authorized to do so by all requisite corporate action.

 

(c) Binding Agreement. This Agreement
is a legal and valid obligation binding upon Intrexon and enforceable in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting creditors’
rights, and subject to general equity principles and to limitations on availability of equitable relief, including specific performance.
The execution, delivery and performance of this Agreement by Intrexon does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound. Intrexon is aware of no action, suit or inquiry or investigation
instituted by any governmental agency which questions or threatens the validity of this Agreement.

 

(d) Additional Intellectual Property
Representations. 

 

(i) Intrexon possesses sufficient rights
to enable Intrexon to grant all rights and licenses it purports to grant to Ampliphi with respect to the Intrexon Patents under
this Agreement;

 

(ii) The Intrexon Patents existing as
of the Effective Date constitute all of the Patents Controlled by Intrexon as of such date that are necessary for the development,
manufacture and Commercialization of Ampliphi Products;

 

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this document has been filed separately with the Securities and Exchange Commission.

 

(iii) Intrexon has not granted, and during
the Term Intrexon will not grant, any right or license, to any Third Party under the Intrexon IP that conflicts with the rights
or licenses granted or to be granted to Ampliphi hereunder;

 

(iv) There is no pending litigation, and
Intrexon has not received any written notice of any claims or litigation, seeking to invalidate or otherwise challenge the Intrexon
Patents or Intrexon’s rights therein;

 

(v) None of the Intrexon Patents is subject
to any pending re-examination, opposition, interference or litigation proceedings;

 

(vi) All of the Intrexon Patents have
been filed and prosecuted in accordance with all applicable laws and have been maintained, with all applicable fees with respect
thereto (to the extent such fees have come due) having been paid;

 

(vii) Intrexon has entered into agreements
with each of its current and former officers, employees and consultants involved in research and development work, including development
of Intrexon’s products and technology providing Intrexon, to the extent permitted by law, with title and ownership to patents,
patent applications, trade secrets and inventions conceived, developed, reduced to practice by such person, solely or jointly with
other of such persons, during the period of employment or contract by Intrexon (except where the failure to have entered into such
an agreement would not have a material adverse effect on the rights granted to Ampliphi herein), and Intrexon is not aware that
any of its employees or consultants is in material violation thereof;

 

(viii) To Intrexon’s knowledge,
there is no infringement, misappropriation or violation by third parties of any Intrexon Channel Technology or Intrexon IP in the
Field;

 

(ix) There is no pending or, to Intrexon’s
knowledge, threatened action, suit, proceeding or claim by others against Intrexon that Intrexon infringes, misappropriates or
otherwise violates any intellectual property or other proprietary rights of others in connection with the use of the Intrexon Channel
Technology or Intrexon IP, and Intrexon has not received any written notice of such claim;

 

(x) To Intrexon’s knowledge, no
employee of Intrexon is the subject of any claim or proceeding involving a violation of any term of any employment contract, patent
disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, non-disclosure agreement
or any restrictive covenant to or with a former employer (A) where the basis of such violation relates to such employee’s
employment with Intrexon or actions undertaken by the employee while employed with Intrexon and (B) where such violation is
relevant to the use of the Intrexon Channel Technology in the Field;

 

(xi) None of the Intrexon Patents owned
by Intrexon or its Affiliates, and, to Intrexon’s knowledge, the Intrexon Patents licensed to Intrexon or its Affiliates,
have been adjudged invalid or unenforceable by a court of competent jurisdiction or applicable government agency, in whole or in part, and there is no pending
or, to Intrexon’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of
any such Intrexon Patents; and

 

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(xii) Except as otherwise disclosed in
writing to Ampliphi, Intrexon: (A) is in material compliance with all statutes, rules or regulations applicable to the ownership,
testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale,
storage, import, export or disposal of any product that is under development, manufactured or distributed by Intrexon in the Field
(“Applicable Laws”); (B) has not received any FDA Form 483, notice of adverse finding, warning letter,
untitled letter or other correspondence or notice from the United States Food and Drug Administration (the “FDA”)
or any other federal, state, local or foreign governmental or regulatory authority alleging or asserting material noncompliance
with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations, permits and supplements or amendments
thereto required by any such Applicable Laws (“Authorizations”), which would, individually or in the aggregate,
result in a material adverse effect; (C) possesses all material Authorizations necessary for the operation of its business
as described in the Field and such Authorizations are valid and in full force and effect and Intrexon is not in material violation
of any term of any such Authorizations; and (D) since January 1, 2011, (1) has not received notice of any claim,
action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other federal, state,
local or foreign governmental or regulatory authority or third party alleging that any product operation or activity is in material
violation of any Applicable Laws or Authorizations and has no knowledge that the FDA or any other federal, state, local or foreign
governmental or regulatory authority or third party is considering any such claim, litigation, arbitration, action, suit investigation
or proceeding; (2) has not received notice that the FDA or any other federal, state, local or foreign governmental or regulatory
authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any material Authorizations and has
no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority is considering such
action; (3) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records,
claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such reports,
documents, forms, notices, applications, records, claims, submissions and supplements or amendments were materially complete and
correct on the date filed (or were corrected or supplemented by a subsequent submission); and (4) has not, either voluntarily
or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal
or replacement, safety alert, post sale warning, letters to customers, or other notice or action relating to the alleged lack of
safety or efficacy of any product or any alleged product defect or violation and, to Intrexon’s knowledge, no third party
has initiated, conducted or intends to initiate any such notice or action.

 

except, in each of (ix) through (xii), for any instances
which would not, individually or in the aggregate, result in a material adverse effect on the rights granted to Ampliphi hereunder
or Intrexon’s ability to perform its obligations hereunder.

 

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8.3 Warranty Disclaimer. EXCEPT
FOR THE EXPRESS WARRANTIES PROVIDED IN THIS ARTICLE 8 OR IN THE EQUITY AGREEMENT, EACH PARTY HEREBY DISCLAIMS ANY AND ALL OTHER
WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, OR NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES.

 

ARTICLE 9 

 

Indemnification

 

9.1 Indemnification by Intrexon.
Intrexon agrees to indemnify, hold harmless, and defend Ampliphi and its Affiliates and their respective directors, officers, employees,
and agents (collectively, the “Ampliphi Indemnitees”) from and against any and all liabilities, damages, costs,
expenses, or losses (including reasonable legal expenses and attorneys’ fees) (collectively, “Losses”)
resulting from any claims, suits, actions, demands, or other proceedings brought by a Third Party (collectively, “Claims”)
to the extent arising from (a) the gross negligence or willful misconduct of Intrexon or any of its Affiliates, or their respective
employees or agents, (b) the use, handling, storage or transport of Intrexon Materials by or on behalf of Intrexon or its
Affiliates, licensees (other than Ampliphi) or sublicensees; or (c) breach by Intrexon of any representation, warranty or
covenant in this Agreement. Notwithstanding the foregoing, Intrexon shall not have any obligation to indemnify the Ampliphi Indemnitees
to the extent that a Claim arises from (i) the gross negligence or willful misconduct of Ampliphi or any of its Affiliates,
licensees, or sublicensees, or their respective employees or agents; or (ii) a breach by Ampliphi of a representation, warranty,
or covenant of this Agreement.

 

9.2 Indemnification by Ampliphi.
Ampliphi agrees to indemnify, hold harmless, and defend Intrexon, its Affiliates and Third Security, and their respective directors,
officers, employees, and agents (and any Third Parties which have licensed to Intrexon intellectual property rights within Intrexon
IP on or prior to the Effective Date, to the extent required by the relevant upstream license agreement) (collectively, the “Intrexon
Indemnitees”) from and against any Losses resulting from Claims, to the extent arising from any of the following: (a) the
gross negligence or willful misconduct of Ampliphi or any of its Affiliates or their respective employees or agents; (b) the
use, handling, storage, or transport of Intrexon Materials by or on behalf of Ampliphi or its Affiliates, licensees, or sublicensees;
(c) breach by Ampliphi of any material representation, warranty or covenant in this Agreement; or (d) the design, development,
manufacture, regulatory approval, handling, storage, transport, distribution, sale or other disposition of any Ampliphi Product
by or on behalf of Ampliphi or its Affiliates, licensees, or sublicensees. Notwithstanding the foregoing, Ampliphi shall not have
any obligation to indemnify the Intrexon Indemnitees to the extent that a Claim arises from (i) the gross negligence or willful
misconduct of Intrexon or any of its Affiliates, or their respective employees or agents; or (ii) a breach by Intrexon of
a representation, warranty, or covenant of this Agreement.

 

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9.3 Product Liability Claims. Notwithstanding
the provisions of Section 9.2, any Losses arising out of any Third Party claim, suit, action, proceeding, liability or obligation
involving any actual or alleged death or bodily injury arising out of or resulting from the development, manufacture or Commercialization
of any Ampliphi Products for use or sale in the Field, to the extent that such Losses exceed the amount (if any) covered by the
applicable Party’s product liability insurance (“Excess Product Liability Costs”), shall be paid by [*****],
except to the extent such Losses arise out of any Third-Party Claim based on the gross negligence or willful misconduct of a Party,
its Affiliates, or its Affiliates’ sublicensees, or any of the respective officers, directors, employees and agents of each
of the foregoing entities, in the performance of obligations or exercise of rights under this Agreement.

 

9.4 Control of Defense. As a condition
precedent to any indemnification obligations hereunder, any entity entitled to indemnification under this Article 9 shall give
written notice to the indemnifying Party of any Claims that may be subject to indemnification, promptly after learning of such
Claim. If such Claim falls within the scope of the indemnification obligations of this Article 9, then the indemnifying Party shall
assume the defense of such Claim with counsel reasonably satisfactory to the indemnified Party. The indemnified Party shall cooperate
with the indemnifying Party in such defense. The indemnified Party may, at its option and expense, be represented by counsel of
its choice in any action or proceeding with respect to such Claim. The indemnifying Party shall not be liable for any litigation
costs or expenses incurred by the indemnified Party without the indemnifying Party’s written consent, such consent not to
be unreasonably withheld. The indemnifying Party shall not settle any such Claim if such settlement (a) does not fully and
unconditionally release the indemnified Party from all liability relating thereto or (b) adversely impacts the exercise of
the rights granted to the indemnified Party under this Agreement, unless the indemnified Party otherwise agrees in writing.

 

9.5 Insurance. Immediately prior
to, and during marketing of Ampliphi Products, Ampliphi shall maintain in effect and good standing a product liability insurance
policy issued by a reputable insurance company in amounts considered standard for the industry. Immediately prior to, and during
the conduct of any regulatory trials, Ampliphi shall maintain in effect and good standing a regulatory trials liability insurance
policy issued by a reputable insurance company in amounts considered standard for the industry. At Intrexon’s reasonable
request, Ampliphi shall provide Intrexon with all details regarding such policies, including without limitation copies of the applicable
liability insurance contracts. Ampliphi shall use reasonable efforts to include Intrexon as an additional insured on any such policies.

 

ARTICLE 10 

 

Term;
Termination

 

10.1 Term. The term of this Agreement
shall commence upon the Effective Date and shall continue until terminated pursuant to Section 10.2 or 10.3 (the “Term”).

 

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10.2 Termination for Material Breach;
Termination Under Section 4.5(b) 

 

(a) Either Party shall have the
right to terminate this Agreement upon written notice to the other Party if the other Party commits any material breach of this
Agreement that such breaching Party fails to cure within sixty (60) days following written notice from the nonbreaching Party
specifying such breach; provided, however, that if Ampliphi commits any breach of the provisions of Section 4.10 of this Agreement,
Intrexon shall have the right to terminate this Agreement if Ampliphi fails after notice from Intrexon to cure such breach within
thirty (30) days following written notice thereof.

 

(b) Intrexon shall have the right
to terminate this Agreement, at its sole discretion, if any necessary shareholder, member, exchange, and/or board of director approvals
of Ampliphi have not been obtained, and the Technology Access Fee Shares (as defined in the Equity Agreement) have not been issued,
within the time frames set forth in the Equity Agreement.

 

(c) Intrexon shall have the right
to terminate this Agreement under the circumstances set forth in Section 4.5(b) upon written notice to Ampliphi, such termination
to become effective sixty (60) days following such written notice unless Ampliphi remedies the circumstances giving rise to
such termination within such sixty (60) day period.

 

(d) Intrexon shall have the right
to terminate this Agreement should Ampliphi execute any purported assignment of this Agreement contrary to the prohibitions in
Section 12.8, such termination occurring upon Intrexon providing written notice to Ampliphi and becoming effective immediately
upon such written notice.

 

10.3 Termination by Ampliphi. Ampliphi
shall have the right to voluntarily terminate this Agreement in its entirety upon ninety (90) days written notice to Intrexon
at any time.

 

10.4 Effect of Termination. In the
event of termination of this Agreement pursuant to Section 10.2 or Section 10.3, the following shall apply:

 

(a) Retained Products. Ampliphi
shall be permitted to continue the development and Commercialization in the Field of any product resulting from the Bacteriophage
Program that, at the time of termination, satisfies at least one of the following criteria (a “Retained Product”):

 

(i) the particular product is an Ampliphi
Product that is being sold by Ampliphi (or, as may be permitted under this Agreement, its Affiliates and, if applicable, (sub)licensees)
triggering royalty payments therefor under Section 5.4(a) or (b) of this Agreement,

 

(ii) the particular product is an Ampliphi
Product that has received regulatory approval,

 

(iii) the particular product is an Ampliphi
Product that is the subject of an application for regulatory approval in the Field that is pending before the applicable regulatory
authority;

 

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(iv) the particular product is an Ampliphi
Product that is the subject of an ongoing or completed phase 2 or phase 3 clinical trial in the Field; or

 

(v) in the event of termination by Ampliphi
pursuant to Section 10.2, the particular product is an Ampliphi Product that is the subject of an effective investigational
new drug application with the FDA, or is an Ampliphi Product for which Ampliphi has commenced at least one JSC-authorized in
vivo good laboratory practices animal study that is expected to be used for filing an investigational new drug application
for such Ampliphi Product.

 

Such right to continue development and Commercialization shall
be subject to Ampliphi’s full compliance with the payment provisions in Article 5, a continuing obligation for Ampliphi to
use in accord with Sections 4.5(a) and 4.5(c) Diligent Efforts to develop and Commercialize any Retained Products, and all other
provisions of this Agreement that survive termination.

 

(b) Termination of Licenses. Except
as necessary for Ampliphi to continue to obtain regulatory approval for, develop, use, manufacture and Commercialize the Retained
Products in the Field as permitted by Section 10.4(a), all rights and licenses granted by Intrexon to Ampliphi under this
Agreement shall terminate and shall revert to Intrexon without further action by either Intrexon or Ampliphi. Ampliphi’s
license with respect to Retained Products shall be exclusive or non-exclusive, as the case may be, on the same terms as set forth
in Section 3.1.

 

(c) Reverted Products. All Ampliphi
Products other than the Retained Products shall be referred to herein as the “Reverted Products.” Ampliphi shall
immediately cease, and shall cause its Affiliates and, if applicable, (sub)licensees to immediately cease, all development and
Commercialization of the Reverted Products, and Ampliphi shall not use or practice, nor shall it cause or permit any of its Affiliates
or, if applicable, (sub)licensees to use or practice, directly or indirectly, any Intrexon IP with respect to the Reverted Products.
Ampliphi shall immediately discontinue making any representation regarding its status as a licensee or channel collaborator of
Intrexon with respect to the Reverted Products.

 

(d) Intrexon Materials. Ampliphi
shall promptly return, or at Intrexon’s request, destroy, any Intrexon Materials in Ampliphi’s possession or control
at the time of termination other than any Intrexon Materials necessary for the continued development, regulatory approval, use,
manufacture and Commercialization of the Retained Products in the Field.

 

(e) Licenses to Intrexon. Ampliphi
is automatically deemed to grant to Intrexon a worldwide, fully paid, royalty-free, exclusive (even as to Ampliphi and its Affiliates),
irrevocable, license (with full rights to sublicense) under the Ampliphi Termination IP, to make, have made, import, use, offer
for sale and sell Reverted Products and to use the Intrexon Channel Technology, the Intrexon Materials, and/or the Intrexon IP
in the Field, subject to any exclusive rights held by Ampliphi in Reverted Products pursuant to Section 10.4(c). The Parties
shall also take such actions and execute such other instruments and documents as may be reasonably necessary to document such license
to Intrexon.

 

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(f) Regulatory Filings. Ampliphi
shall promptly assign to Intrexon, and will provide full copies of, all regulatory approvals and regulatory filings that relate
specifically and solely to Reverted Products. Ampliphi shall also take such actions and execute such other instruments, assignments
and documents as may be necessary to effect the transfer of rights thereunder to Intrexon. To the extent that there exist any regulatory
approvals and regulatory filings that relate both to Reverted Products and other products, Ampliphi shall provide copies of the
portions of such regulatory filings that relate to Reverted Products and shall reasonably cooperate to assist Intrexon in obtaining
the benefits of such regulatory approvals with respect to the Reverted Products.

 

(g) Data Disclosure. Ampliphi shall
provide to Intrexon copies of the relevant portions of all material reports and data, including regulatory trial data and reports,
obtained or generated by or on behalf of Ampliphi or its Affiliates to the extent that they relate to Reverted Products, within
sixty (60) days of such termination unless otherwise agreed, and Intrexon shall have the right to use any such Information
in developing and Commercializing Reverted Products and to license any Third Parties to do so.

 

(h) Third Party Licenses. At Intrexon’s
request, Ampliphi shall promptly provide to Intrexon copies of all Third Party agreements under which Ampliphi or its Affiliates
obtained a license under Patents claiming inventions or know-how specific to or used or incorporated into the development, manufacture
and/or Commercialization of the Reverted Products. At Intrexon’s request such that Intrexon may Commercialize the Reverted
Products, Ampliphi shall promptly work with Intrexon to either, as appropriate (i) assign to Intrexon the Third Party agreement(s),
or (ii) grant a sublicense (with an appropriate scope) to Intrexon under the Third Party agreement(s). Thereafter Intrexon
shall be fully responsible for all obligations due for its actions under the sublicensed or assigned Third Party agreements. Notwithstanding
the above, if Intrexon does not wish to assume any financial or other obligations associated with a particular Third Party agreement
identified to Intrexon under this Section 10.4(h), then Intrexon shall so notify Ampliphi and Ampliphi shall not make such
assignment or grant such sublicense (or cause it to be made or granted).

 

(i) Remaining Materials. At the
request of Intrexon, Ampliphi shall transfer to Intrexon all quantities of Reverted Product (including final products or work-in-process)
in the possession of Ampliphi or its Affiliates. Ampliphi shall transfer to Intrexon all such quantities of Reverted Products without
charge, except that Intrexon shall pay the reasonable costs of shipping.

 

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(j) Third Party Vendors. At
Intrexon’s request, Ampliphi shall promptly provide to Intrexon copies of all agreements between Ampliphi or its
Affiliates and Third Party suppliers, vendors, or distributors that relate to the supply, sale, or distribution of Reverted
Products in the Territory. At Intrexon’s request, Ampliphi shall promptly: (i) with respect to such Third Party
agreements relating solely to the applicable Reverted Products and permitting assignment, immediately assign (or cause to be
assigned), such agreements to Intrexon, and (ii) with respect to all other such Third Party agreements, Ampliphi shall
reasonably cooperate to assist Intrexon in obtaining the benefits of such agreements. Ampliphi shall be liable for any costs
associated with assigning a Third Party agreement to Intrexon or otherwise obtaining the benefits of such agreement for
Intrexon, to the extent such costs are directly related to Ampliphi’s breach. For the avoidance of doubt, Intrexon
shall have no obligation to assume any of Ampliphi’s obligations under any Third Party agreement.

 

(k) Commercialization. Intrexon
shall have the right to develop and Commercialize the Reverted Products itself or with one or more Third Parties, and shall have
the right, without obligation to Ampliphi, to take any such actions in connection with such activities as Intrexon (or its designee),
at its discretion, deems appropriate.

 

(l) Confidential Information. Each
Party shall promptly return, or at the other Party’s request destroy, any Confidential Information of the other Party in
such Party’s possession or control at the time of termination; provided, however, that each Party shall be permitted to retain
(i) a single copy of each item of Confidential Information of the other Party in its confidential legal files for the sole
purpose of monitoring and enforcing its compliance with Article 7, (ii) Confidential Information of the other Party that is
maintained as archive copies on the recipient Party’s disaster recovery and/or information technology backup systems, or
(iii) Confidential Information of the other Party necessary to exercise such Party’s rights in Retained Products (in
the case of Ampliphi) or Reverted Products (in the case of Intrexon). The recipient of Confidential Information shall continue
to be bound by the terms and conditions of this Agreement with respect to any such Confidential Information retained in accordance
with this Section 10.4(l).

 

10.5 Surviving Obligations. Termination
or expiration of this Agreement shall not affect any rights of either Party arising out of any event or occurrence prior to termination,
including, without limitation, any obligation of Ampliphi to pay any amount which became due and payable under the terms and conditions
of this Agreement prior to expiration or such termination. The following portions of this Agreement shall survive termination or
expiration of this Agreement: Sections 3.1 (as applicable with respect to 10.4(b)), 5.6 through 5.8, 6.1, 6.2 (with subsection
(c) surviving only to the extent relating to Intrexon Patents that are relevant to Retained Products that, to Intrexon’s
knowledge, are being developed or Commercialized at such time, if any), 7.1, 7.2, 7.4, 7.5, 10.4, and 10.5; Articles 9, 11, and
12; and any relevant definitions in Article 1. Further, Article 7 and Sections 4.5(a), 4.5(c), 5.2 through 5.9, and 9.5 will survive
termination of this Agreement to the extent there are applicable Retained Products.

 

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ARTICLE 11 

 

Dispute Resolution 

 

11.1 Disputes. It is the
objective of the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an
expedient manner by mutual cooperation and without resort to litigation. In the event of any disputes, controversies or
differences which may arise between the Parties out of or in relation to or in connection with this Agreement, including,
without limitation, any alleged failure to perform, or breach, of this Agreement, or any issue relating to the interpretation
or application of this Agreement, then upon the request of either Party by written notice, the Parties agree to meet and
discuss in good faith a possible resolution thereof, which good faith efforts shall include at least one in-person meeting
between the Executive Officers of each Party. If the matter is not resolved within thirty (30) days following the
written request for discussions, either Party may then invoke the provisions of Section 11.2.

 

11.2 Arbitration. Any dispute, controversy,
difference or claim which may arise between the Parties, out of or in relation to or in connection with this Agreement (including,
without limitation, arising out of or relating to the validity, construction, interpretation, enforceability, breach, performance,
application or termination of this Agreement) that is not resolved pursuant to Section 11.1 shall, subject to Section 11.10,
be settled by binding “baseball arbitration” as follows. Either Party, following the end of the thirty (30) day
period referenced in Section 11.1, may refer such issue to arbitration by submitting a written notice of such request to the
other Party, with the arbitration to be held in the state where the other Party’s principal office is located (or some other
place as may be mutually agreed by the Parties). Promptly following receipt of such notice, the Parties shall meet and discuss
in good faith and seek to agree on an arbitrator to resolve the issue, which arbitrator shall be neutral and independent of both
Parties and all of their respective Affiliates, shall have significant experience and expertise in licensing and partnering agreements
in the pharmaceutical and biotechnology industries, and shall have some experience in mediating or arbitrating issues relating
to such agreements. If the Parties cannot agree on a single arbitrator within fifteen (15) days of request by a Party for
arbitration, then each Party shall select an arbitrator meeting the foregoing criteria and the two (2) arbitrators so selected
shall select within ten (10) days of their appointment a third arbitrator meeting the foregoing criteria. Within fifteen (15) days
after an arbitrator(s) is selected (in the case of the three-person panel, when the third arbitrator is selected), each Party will
deliver to both the arbitrator(s) and the other Party a detailed written proposal setting forth its proposed terms for the resolution
for the matter at issue (the “Proposed Terms” of the Party) and a memorandum (the “Support Memorandum”)
in support thereof. The Parties will also provide the arbitrator(s) a copy of this Agreement, as it may be amended at such time.
Within fifteen (15) days after receipt of the other Party’s Proposed Terms and Support Memorandum, each Party may submit
to the arbitrator(s) (with a copy to the other Party) a response to the other Party’s Support Memorandum. Neither Party may
have any other communications (either written or oral) with the arbitrator(s) other than for the sole purpose of engaging the arbitrator
or as expressly permitted in this Section 11.2; provided that, the arbitrator(s) may convene a hearing if the arbitrator(s)
so chooses to ask questions of the Parties and hear oral argument and discussion regarding each Party’s Proposed Terms. Within
sixty (60) days after the arbitrator’s appointment, the arbitrator(s) will select one of the two Proposed Terms (without
modification) provided by the Parties that he or she believes is most consistent with the intention underlying and agreed principles
set forth in this Agreement. The decision of the arbitrator(s) shall be final, binding, and unappealable. For clarity, the arbitrator(s)
must select as the only method to resolve the matter at issue one of the two sets of Proposed Terms, and may not combine elements
of both Proposed Terms or award any other relief or take any other action.

 

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11.3 Governing Law. This Agreement
shall be governed by and construed under the substantive laws of the State of New York, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another
jurisdiction.

 

11.4 Award. Any award to be paid
by one Party to the other Party as determined by the arbitrator(s) as set forth above under Section 11.2 shall be promptly
paid in United States dollars free of any tax, deduction or offset; and any costs, fees or taxes incident to enforcing the award
shall, to the maximum extent permitted by law, be charged against the losing Party. Each Party agrees to abide by the award rendered
in any arbitration conducted pursuant to this Article 11, and agrees that, subject to the United States Federal Arbitration Act,
9 U.S.C. §§ 1-16, judgment may be entered upon the final award in any United States District Court located in New York
and that other courts may award full faith and credit to such judgment in order to enforce such award. The award shall include
interest from the date of any damages incurred for breach of the Agreement, and from the date of the award until paid in full,
at a rate fixed by the arbitrator(s). With respect to money damages, nothing contained herein shall be construed to permit the
arbitrator(s) or any court or any other forum to award consequential, incidental, special, punitive or exemplary damages. By entering
into this agreement to arbitrate, the Parties expressly waive any claim for consequential, incidental, special, punitive or exemplary
damages. The only damages recoverable under this Agreement are direct compensatory damages.

 

11.5 Costs. Each Party shall bear
its own legal fees. The arbitrator(s) shall assess his or her costs, fees and expenses against the Party losing the arbitration.

 

11.6 Injunctive Relief. Nothing
in this Article 11 will preclude either Party from seeking equitable relief or interim or provisional relief from a court of competent
jurisdiction, including a temporary restraining order, preliminary injunction or other interim equitable relief, concerning a dispute
either prior to or during any arbitration if necessary to protect the interests of such Party or to preserve the status quo pending
the arbitration proceeding. Specifically, the Parties agree that a material breach by either Party of its obligations in Section 3.5
or Article 7 of this Agreement may cause irreparable harm to the other Party, for which damages may not be an adequate remedy.
Therefore, in addition to its rights and remedies otherwise available at law, including, without limitation, the recovery of damages
for breach of this Agreement, upon an adequate showing of material breach of such Section 3.5 or Article 7, and without further
proof of irreparable harm other than this acknowledgement, such non-breaching Party shall be entitled to seek (a) immediate
equitable relief, specifically including, but not limited to, both interim and permanent restraining orders and injunctions, without
bond, and (b) such other and further equitable relief as the court may deem proper under the circumstances. For the avoidance
of doubt, nothing in this Section 11.6 shall otherwise limit a breaching Party’s opportunity to cure a material breach
as permitted in accordance with Section 10.2.

 

11.7 Confidentiality. The arbitration
proceeding shall be confidential and the arbitrator(s) shall issue appropriate protective orders to safeguard each Party’s
Confidential Information. Except as required by law, no Party shall make (or instruct the arbitrator(s) to make) any public announcement
with respect to the proceedings or decision of the arbitrator(s) without prior written consent of the other Party. The existence
of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator(s), except
as required in connection with the enforcement of such award or as otherwise required by applicable law.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

11.8 Survivability. Any duty to
arbitrate under this Agreement shall remain in effect and be enforceable after termination of this Agreement for any reason.

 

11.9 Jurisdiction. For the purposes
of this Article 11, the Parties acknowledge their diversity and agree to accept the jurisdiction of any United States District
Court located in New York for the purposes of enforcing or appealing any awards entered pursuant to this Article 11 and for enforcing
the agreements reflected in this Article 11 and agree not to commence any action, suit or proceeding related thereto except in
such courts.

 

11.10 Patent Disputes. Notwithstanding
any other provisions of this Article 11, and subject to the provisions of Section 6.2, any dispute, controversy or claim relating
to the scope, validity, enforceability or infringement of any Intrexon Patents shall be submitted to a court of competent jurisdiction
in the country in which such Patent was filed or granted.

 

ARTICLE 12 

 

General Provisions 

 

12.1 Use of Name. No right, express
or implied, is granted by this Agreement to either Party to use in any manner the name of the other or any other trade name or
trademark of the other in connection with the performance of this Agreement, except that (a) either Party may use the name
of the other Party as required by regulations and in press releases accompanying quarterly and annual earnings reports approved
by the issuer’s Board of Directors, and (b) Ampliphi may use the Intrexon Trademarks in accord with licenses and restrictions
set forth herein.

 

12.2 LIMITATION OF LIABILITY. NEITHER
PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING
TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING
IN THIS PARAGRAPH IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER ARTICLE 9, OR DAMAGES
AVAILABLE FOR BREACHES OF THE OBLIGATIONS SET FORTH IN ARTICLE 7.

 

12.3 Independent Parties. The Parties
are not employees or legal representatives of the other Party for any purpose. Neither Party shall have the authority to enter
into any contracts in the name of or on behalf of the other Party. This Agreement shall not constitute, create, or in any way be
interpreted as a joint venture, partnership, or business organization of any kind.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

12.4 Notice. All notices, including
notices of address change, required or permitted to be given under this Agreement shall be in writing and deemed to have been given
when delivered if personally delivered or sent by facsimile (provided that the party providing such notice promptly confirms receipt
of such transmission with the other party by telephone), on the business day after dispatch if sent by a nationally-recognized
overnight courier and on the third business day following the date of mailing if sent by certified mail, postage prepaid, return
receipt requested. All such communications shall be sent to the address or facsimile number set forth below (or any updated addresses
or facsimile number communicated to the other Party in writing):

 

	If to Intrexon:	 	
        Intrexon Corporation

        20358 Seneca Meadows Parkway

        Germantown, MD 20876

        Attention: President, Human Therapeutics Division

        Fax: (301) 556-9901

	 	 
	with a copy to:	 	
        Intrexon Corporation

        20358 Seneca Meadows Parkway

        Germantown, MD 20876

        Attention: Legal Department

        Fax: (301) 556-9902

	 	 
	If to Ampliphi:	 	
        Ampliphi Biosciences

        800 E. Leigh St., Suite 54

        Richmond, VA 23219

        Attention: Chief Executive Officer

        Fax:                     

 

12.5 Severability. In the event
any provision of this Agreement is held to be invalid or unenforceable, the valid or enforceable portion thereof and the remaining
provisions of this Agreement will remain in full force and effect.

 

12.6 Waiver. Any waiver (express
or implied) by either Party of any breach of this Agreement shall not constitute a waiver of any other or subsequent breach.

 

12.7 Entire Agreement; Amendment.
This Agreement, including any exhibits attached hereto, constitute the entire, final, complete and exclusive agreement between
the Parties and supersede all previous agreements or representations, written or oral, with respect to the subject matter of this
Agreement (including any prior confidentiality agreement between the Parties). All information of Intrexon or Ampliphi to be kept
confidential by the other Party under any prior confidentiality agreement, as of the Effective Date, shall be maintained as Confidential
Information by such other Party under the obligations set forth in Article 7 of this Agreement. This Agreement may not be modified
or amended except in a writing signed by a duly authorized representative of each Party.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

12.8 Non-assignability; Binding on Successors.
Any attempted assignment of the rights or delegation of the obligations under this Agreement shall be void without the prior written
consent of the non-assigning or non-delegating Party; provided, however, that either Party may assign its rights or delegate its
obligations under this Agreement without such consent (a) to an Affiliate of such Party or (b) to its successor in interest
in connection with any merger, acquisition, consolidation, corporate reorganization, or similar transaction, or sale of all or
substantially all of its assets, provided that such assignee agrees in writing to assume and be bound by the assignor’s obligations
under this Agreement. This Agreement shall be binding upon, and inure to the benefit of, the successors, executors, heirs, representatives,
administrators and permitted assigns of the Parties. Notwithstanding the foregoing, in the event that either Party assigns this
Agreement to its successor in interest by way of merger, acquisition, consolidation, corporate reorganization, or similar transaction,
or sale of all or substantially all of its assets (whether this Agreement is actually assigned or is assumed by such successor
in interest or its affiliate by operation of law (e.g., in the context of a reverse triangular merger)), the intellectual property
rights of such successor in interest or any of its Affiliates other than those licensed in this Agreement shall be automatically
excluded from the rights licensed to the other Party under this Agreement.

 

12.9 Force Majeure. Neither Party
shall be liable to the other for its failure to perform any of its obligations under this Agreement, except for payment obligations,
during any period in which such performance is delayed because rendered impracticable or impossible due to circumstances beyond
its reasonable control, including without limitation earthquakes, governmental regulation, fire, flood, labor difficulties, civil
disorder, acts of terrorism and acts of God, provided that the Party experiencing the delay promptly notifies the other Party of
the delay.

 

12.10 No Other Licenses. Neither
Party grants to the other Party any rights or licenses in or to any intellectual property, whether by implication, estoppel, or
otherwise, except to the extent expressly provided for under this Agreement.

 

12.11 Non-Solicitation. During the
Term and for a period of one (1) year following the end of the Term, neither Ampliphi nor Intrexon may directly or indirectly
solicit in order to offer to employ, engage in any discussion regarding employment with, or hire any employee of the other Party
or an individual who was employed by the other party within one (1) year prior to such solicitation, discussion, or hire,
without the prior approval of such other Party. General employment solicitations or advertisements shall not be considered direct
or indirect solicitations, and are not prohibited under this Agreement.

 

12.12 Legal Compliance. The Parties
shall review in good faith and cooperate in taking such actions to ensure compliance of this Agreement with all applicable laws.

 

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EXECUTION COPY

CONFIDENTIAL

Portions herein identified by [*****] have been omitted pursuant
to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. A complete copy of
this document has been filed separately with the Securities and Exchange Commission.

 

12.13 Counterparts. This Agreement
may be executed in any number of counterparts (including by facsimile, PDF, or other means of electronic communication), each of
which taken together will constitute one and the same instrument, and any of the Parties hereto may execute this Agreement by signing
any such counterpart.

 

[Remainder of page intentionally left
blank.] 

 

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CONFIDENTIAL

 

In
Witness Whereof, the Parties hereto have duly executed this Exclusive Channel Collaboration Agreement.

 

	Intrexon Corporation	 	Ampliphi Biosciences Corporation
	 	 	 	 	 
	By:	/s/ Jayson Rieger	 	By:	/s/ Philip Young
	 	 	 	 	 
	Name:	Jayson M. Rieger, Ph.D.	 	Name:	Philip Young
	 	 	 	 	 
	Title:	President of Human Therapeutics Division and

 Senior Vice President	 	Title:	CEO

 

SIGNATURE PAGE FOR EXCLUSIVE CHANNEL COLLABORATION
AGREEMENTExhibit 10.3

 

EXECUTION COPY

 

STOCK
ISSUANCE AGREEMENT

 

This
Agreement (“Agreement”) is made and entered into as of March 29, 2013 (the “Effective Date”),
by and among AmpliPhi Biosciences Corporation, a Washington corporation (the “Company”), and Intrexon Corporation,
a Virginia corporation (“Intrexon”).

 

A.           Concurrently
with the execution of this Agreement, the Company is entering into an Exclusive Channel Collaboration Agreement with Intrexon (the
“Channel Agreement”), pursuant to which Intrexon is licensing the rights to certain technology to the Company;
and

 

B.           In
partial consideration of Intrexon’s license to the Company under the Channel Agreement, the Company has agreed to issue to
Intrexon certain shares of the Company’s common stock, par value $0.01 per share, (the “Common Stock”)
in accordance with the terms and conditions of this Agreement.

 

AGREEMENT

 

In consideration of
the mutual covenants contained in this Agreement and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Company and Intrexon hereby agree as follows:

 

sECTION
1.   Authorization
of Issuance of Shares.

 

1.1           Technology
Access Fees. Subject to the terms and conditions of this Agreement, the Company has agreed to pay a Technology Access
Fee (as defined in the Channel Agreement) valued at three million dollars ($3,000,000) to Intrexon, which Technology Access Fee
may be paid either in cash or Company’s Common Stock at Company’s sole discretion. Payment for the Technology Access
Fee will be made at the Closing (as hereinafter defined) in accord with this Section 1.1. Company, in its discretion, shall either
(i) pay to Intrexon three million dollars ($3,000,000) cash at the Technology Access Fee Closing (as defined below), or (ii) pay
Intrexon at the Technology Access Fee Closing the Technology Access Fee due by issuing to Intrexon twenty-four million (24,000,000)
shares of Common Stock of Company (the “Technology Access Fee Shares”) in accord with this Section 1.1.

 

1.2           Milestones.
Subject to the terms and conditions of this Agreement and the Channel Agreement, upon the attainment of certain commercialization
milestones as for each AmpliPhi Product (as that term is defined in the Channel Agreement) developed under the Channel Agreement
that reach such milestones, the Company has agreed under Section 5.2 of the Channel Agreement to make milestone payments (each,
whether in cash or equity, a “Milestone Payment” and together “Milestone Payments”). The
Milestone Payments set forth below in Sections 1.2(a) and 1.2(b) are payable to Intrexon either in cash or in shares of Common
Stock on certain dates following achievement of certain Milestone Events (as defined below).

 

(a)          Upon
the dosing of the first patient in the first Phase II clinical study for an AmpliPhi Product (the “Phase II Milestone
Event”), Company will pay to Intrexon either (i) two and one-half million dollars ($2,500,000) in cash, or (ii) that
number of shares of Common Stock (the “Phase II Milestone Shares”) having a fair market value equaling two and
one-half million dollars ($2,500,000) where such fair market value for this Section 1.2(a) is determined as set forth in Section
1.2(c).

 

    	1.

    	 

    

 

(b)          Upon
the first to occur of either the first commercial sale of each AmpliPhi Product in the Unites States or the European Union, or
the granting of the regulatory approval of that AmpliPhi Product in the Unites States or in the European Union (both as applicable,
the “Approval Milestone Event”), Company will pay to Intrexon either (i) five million dollars ($5,000,000) in
cash, or (ii) that number of shares of Common Stock (the “Approval Milestone Shares”) having a fair market value
of five million dollars ($5,000,000) where such fair market value is determined as set forth in Section 1.2(c).

 

(c)          The
fair market value used for the determination of the number of shares of Common Stock that will comprise the Phase II Milestone
Shares or the Approval Milestone Shares shall be determined using published market data as the volume-weighted average price for
a share of Common Stock over the ten (10) trading days immediately preceding the date of public announcement of the respective
Milestone Event (as defined below).

 

(d)          The
Approval Milestone Shares and the Phase II Milestone Shares shall collectively be the “Milestone Shares.” The
number of shares of Common Stock to be issued under each of subsections (a) and (b) of this Section 1.2 shall be rounded down to
the nearest whole share. The event giving rise to an issuance of shares under subsections (a) and (b) of this Section 1.2 shall
each be a “Milestone Event” and together, the “Milestone Events.” The respective Milestone
Payments for each of the Milestone Shares shall be due within thirty days following the date of the occurrence of its related Milestone
Event.

 

1.3           Capital
Adjustments. If after the date of a Milestone Event but prior to payment of Milestone Shares (i) the outstanding shares of
the Company’s Common Stock shall be subdivided or split into a greater number of shares or a dividend in Common Stock shall
be paid in respect of such Common Stock or (ii) the outstanding shares of Common Stock are combined, then all share quantities
in this Agreement not yet issued shall be appropriately adjusted to reflect such stock split, stock dividend or conjunction. Nothing
contained in this Section 1.3 or elsewhere in this Agreement will prevent or prohibit the dilution of Intrexon’s ownership
interest in the Company or grant to Intrexon any preemptive rights.

 

1.4           Company
Sale. In the event that the Company consummates a Company Sale (as defined below) prior to any one of the Subsequent Closings
(as defined below), and the Channel Agreement is transferred or assigned to the buyer or assigned to the buyer in connection with
such Company Sale, the Company and Intrexon agree that payments under Section 1.2 of this Agreement shall be payable only in cash
following the Company Sale.

 

sECTION
2.   Closing and Delivery 

 

2.1           Sale
and Purchase Price of Shares. Subject to the terms and conditions of this Agreement and in reliance upon the representations,
warranties and agreements contained herein, the Company will issue and sell to Intrexon, and Intrexon will purchase from the Company,
if the Company has not elected to make the respective payments cash, at each of the Technology Access Fee Closing and the Milestone
Closings (as hereinafter defined), with the applicable number of shares being set forth above in Sections 1.1 and 1.2. The Parties
agree that the consideration received by the Company hereunder shall be the execution and delivery by Intrexon of the Channel Agreement
which consideration is at least equal to the par value of the shares issued or issuable under this Agreement.

 

    	2.

    	 

    

 

2.2           Closings.
The closings of the purchase and sale of the shares to be issued pursuant to this Agreement shall be held at the office of Morrison
& Foerster LLP, 755 Page Mill Road, Palo Alto, CA 94304-1018 or at such other place as the Company and Intrexon may agree,
as follows:

 

(a)          the
closing of the purchase and sale of the Technology Access Fee Shares, or the payment of the appropriate alternative cash payment,
will occur, subject to the conditions set forth in Section 8.1 hereof and applicable to the Technology Access Fee Closing, on a
date to be agreed upon by Intrexon and the Company, which date in any event must be in advance of the deadlines of Section 5.1(a)
of the Channel Agreement (the “Technology Access Fee Closing”); and

 

(b)          the
closing of the purchase and sale of each occurrence of Milestone Shares or the payment of each Milestone Payment in cash will occur,
subject to the conditions set forth in Section 8.2 hereof and applicable to the Milestone Closing, on the earlier of (i) the thirtieth
(30th) day following the occurrence of the respective Milestone Event, and (ii) such other date as Intrexon and the
Company may agree (each, a “Milestone Closing”).

 

The Technology Access Fee Closing and the
Milestone Closings may be collectively herein referred to as the “Closings” and each individually as a “Closing”.
Further, each of the Milestones Closings alternatively may be herein referred to collectively as the “Subsequent Closings”
and individually as a “Subsequent Closing”.

 

2.3           Delivery
of the Shares. Promptly following a Closing at which shares are issued to Intrexon, the Company shall deliver to Intrexon a
certificate representing the number of shares purchased at such Closing, registered in the name of Intrexon.

 

sECTION
3.   Representations
and Warranties of the Company.

 

Subject to and except
as set forth in the Disclosure Schedule which is arranged in sections corresponding to the sub-section numbered provisions contained
below in this Section, the Company hereby represents and warrants to, and covenants with, Intrexon as of the date hereof as follows:

 

3.1           Organization,
Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws
of the State of Washington and has the requisite corporate power to own, lease and operate its properties and assets and to conduct
its business as it is now being conducted. The Company does not have any subsidiaries other than Special Phage Holdings Pty Ltd.
and Biocontrol Ltd. The Company is qualified to do business as a foreign corporation and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification necessary, except for any jurisdiction(s)
(alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For the purposes of
this Agreement, “Material Adverse Effect” means any effect on the business, operations, properties or financial
condition of the Company that is material and adverse to the Company, taken as a whole, and any condition, circumstance or situation
that would prohibit the Company from entering into and performing any of its obligations hereunder.

 

    	3.

    	 

    

 

3.2          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement and to issue
and sell the shares in accordance with the terms hereof. The execution, delivery and performance of this Agreement by the Company
and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate
action, and no further consent or authorization of the Company, its board of directors or stockholders is required, except pursuant
to Section 8. When executed and delivered by the Company, this Agreement shall constitute a valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. The Company’s
board of directors, at a meeting duly called and held, adopted resolutions approving the transactions contemplated hereby, including
the issuance of the Technology Access Fee Shares and the Milestone Shares issuable upon occurrence of the various Milestone Events
in a manner consistent with and that meets the requirements of Washington law.

 

3.3          Capitalization.

 

(a)          The
authorized capital stock of the Company consists of 445,000,000 shares of Common Stock and 180,000 shares of Series A Participating
Cumulative Preferred Stock (the “Series A Preferred Stock”). As of the date hereof (1) 66,906,524 shares of
Common Stock are issued and outstanding, (2) no shares of Preferred Stock are outstanding, (3) no shares of Common Stock are held
by the Company in its treasury, (4) 20,000,000 shares of Common Stock are held in escrow pursuant to the terms of share purchase
and escrow agreements between the Company and Special Phage Holdings Pty Ltd., (8,000,000 to satisfy potential warranty claims
by the Company under the transaction documents and the remaining 12,000,000 shares to be held pending completion of certain milestones)
(the “SPH Shares”) (5) 13,634,619 shares of Common Stock are reserved for issuance pursuant to warrants (the
“Warrants”), (6) 16,156,131 shares are reserved for issuance pursuant to stock options issues under the Company’s
current stock option plans (the “Stock Options”) and (7) $5,160,353 (including principal and accrued interest
as of March 21, 2013) of convertible promissory notes of the Company (the “Convertible Promissory Notes” are
outstanding. Except for the foregoing Common Stock, Series A Preferred Stock, the Warrants, the SPH Shares, the Stock Options,
the Convertible Promissory Notes and as disclosed in Schedule 3.3(a), as of the date hereof, no shares of capital stock or other
equity or voting securities of Company are issued, reserved for issuance or outstanding and there exist no outstanding options
to purchase shares of the Common Stock, rights (including conversion or preemptive rights and rights of first refusal or similar
rights) or agreements, orally or in writing, to purchase or otherwise acquire from the Company any shares of capital stock or any
securities convertible into or exchangeable for shares of Company capital stock. All outstanding shares of capital stock and other
equity or voting securities of the Company (including the Warrants, SPH Shares and Stock Options) are, and all shares which may
be issued pursuant thereto will be, when issued in accordance with the terms and conditions of their authorizing documents, duly
authorized, validly issued, fully paid and non-assessable and not subject to or issued in violation of any preemptive right, purchase
option, call option, right of first refusal, preemptive right, subscription right or any similar right. Other than the Convertible
Promissory Notes, there are no outstanding bonds, debentures, notes or other indebtedness or securities of the Company having the
right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which any Company
stockholder may vote. All of the issued and outstanding shares of Company capital stock were offered, issued, sold and delivered
by the Company in compliance with all applicable state and federal laws concerning the issuance of securities. Further, none of
such shares were issued in violation of any preemptive rights.

 

    	4.

    	 

    

 

(b)          There
are no outstanding rights, commitments or contracts of any kind obligating the Company to repurchase, redeem or otherwise acquire
any shares of capital stock or other equity or voting securities of the Company. As of the date hereof, there are no Contracts
of any character (contingent or otherwise) pursuant to which any Person is or may be entitled to cause the Company to file a registration
statement under the Securities Act, or which otherwise relate to the registration of any securities of the Company. Other than
as set forth on Schedule 3.3(b), there are no voting trusts, proxies, anti-takeover plans or other contracts of any character to
which the Company is a party or by which it is bound or to which any of the Company’s stockholders is a party or by which
any of them is bound, in each case, with respect to the issuance, holding, acquisition, voting or disposition of any shares of
capital stock of the Company. Other than as set forth on Schedule 3.3(b), the Company does not own, directly or indirectly, any
capital stock, security or other ownership or equity interest in any Person.

 

(c)          The
shares to be issued and sold hereunder have been duly authorized by all necessary corporate action and, when paid for and issued
in accordance with the terms hereof, will be validly issued, fully paid and nonassessable. In addition, such shares will be free
and clear of all liens, claims, charges, security interests or agreements, pledges, assignments, covenants, restrictions or other
encumbrances created by, or imposed by, the Company (collectively, “Encumbrances”) and rights of refusal of
any kind imposed by the Company (other than restrictions on transfer under applicable securities laws) and the holder of such shares
shall be entitled to all rights accorded to a holder of Common Stock.

 

3.4           No
Conflicts; Governmental Approvals. The execution, delivery and performance of the Agreement by the Company and the consummation
by the Company of the transactions contemplated hereby do not and will not (i) violate any provision of the Company’s Articles
of Incorporation or Bylaws, each as amended to date, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party or by which the Company’s properties or assets are bound, or (iii) result in a violation
of any federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, except for
such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in
the aggregate, have a Material Adverse Effect. The Company is not required under federal, state, foreign or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under this Agreement or issue and sell the shares
in accordance with the terms hereof (other than any filings, consents and approvals which may be required to be made by the Company
under applicable state and federal securities laws, rules or regulations prior to or subsequent to the Closing).

 

    	5.

    	 

    

 

3.5           Financial
Statements. For purposes of this Agreement, “Financial Statements” means the audited balance sheet of the
Company as of December 31, 2011 (the “Financial Statement Date”), the audited statement of income and retained
earnings and unaudited statement of cash flows of the Company for the year ended on the Financial Statement Date, and the unaudited
balance sheet, statement of income and retained earnings, and statement of cash flows of the Company for the year ended December
31, 2012. An accurate copy of the Financial Statements have been provided to Intrexon. Such Financial Statements fairly present
in all material respects the financial position of the Company as of the dates thereof and the results of operations and cash flows
for the periods then ended (subject to normal year-end adjustments). Such Financial Statements were prepared in accordance with
generally accepted accounting principles. Since the Financial Statement Date, the Company has not incurred any liabilities or obligations
(whether absolute, accrued, fixed, contingent, liquidated, unliquidated or otherwise and whether due or to become due) of any nature,
except liabilities, obligations or contingencies (i) which were incurred after the Financial Statement Date in the ordinary course
of business consistent with past practices under any contract, commitment or agreement specifically disclosed in the Schedules
or not required to be disclosed thereon because of the term or amount involved or otherwise, (ii) which were incurred as a result
of the transactions described herein, or (iii) which would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect on the Company. The Company has timely filed all forms, reports and other documents material to the business
of the Company required to be filed prior to the date hereof with any governmental authority.

 

3.6           Internal
Controls. The Company has established and maintains a system of internal accounting controls sufficient to provide reasonable
assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
in the United States and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

3.7           [Reserved].

 

3.8           No
Material Adverse Change. Except as disclosed in Schedule 3.8, since the Financial Statement Date, the Company has not (i) experienced
or suffered any Material Adverse Effect, (ii) incurred any material liabilities, obligations, claims or losses (whether liquidated
or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those incurred in the ordinary course
of the Company’s business or (iii) declared, made or paid any dividend or distribution of any kind on its capital stock.

 

    	6.

    	 

    

 

3.9           Litigation.
No action, suit, proceeding or investigation is currently pending or, to the knowledge of the Company, has been threatened in writing
against the Company that: (i) concerns or questions the validity of this Agreement; (ii) concerns or questions the right of the
Company to enter into this Agreement; or (iii) is reasonably likely to have a Material Adverse Effect. The Company is neither a
party to nor subject to the provisions of any material order, writ, injunction, judgment or decree of any court or government agency
or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company
intends to initiate that would have a Material Adverse Effect.

 

3.10         Compliance.
Except for defaults or violations which are not reasonably likely to have a Material Adverse Effect, the Company is not (i) in
default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both,
would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or
that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws, applicable to its business,
except in each case for such defaults or violations as would not have a Material Adverse Effect.

 

3.11         Intellectual
Property

 

 (a)          The
Company has entered into agreements with each of its current and former officers, employees and consultants involved in research
and development work, including development of the Company’s products and technology providing the Company, to the extent
permitted by law, with title and ownership to patents, patent applications, trade secrets and inventions conceived, developed,
reduced to practice by such person, solely or jointly with other of such persons, during the period of employment by the Company
except where the failure to have entered into such an agreement would not have a Material Adverse Effect. The Company is not aware
that any of its employees or consultants is in material violation thereof.

 

 (b)          To
the Company’s knowledge, the Company owns or possesses adequate rights to use all, if any, trademarks, service marks, trade
names, domain names, copyrights, patents, patent applications, inventions, know how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures), and other intellectual property rights (“Intellectual
Property”) as are necessary for the conduct of its business. In addition, (i) to the knowledge of the Company, there
is no infringement, misappropriation or violation by third parties of any such Intellectual Property; (ii) there is no pending
or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others against the Company challenging the
Company’s rights in or to any such Intellectual Property; (iii) the Intellectual Property owned by the Company and,
to the knowledge of the Company, the Intellectual Property licensed to the Company has not been adjudged invalid or unenforceable
by a court of competent jurisdiction or applicable government agency, in whole or in part, and there is no pending or, to the knowledge
of the Company, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual
Property; (iv) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others
against the Company that the Company infringes, misappropriates or otherwise violates any Intellectual Property or other proprietary
rights of others, and the Company has not received any written notice of such claim; and (v) to the Company’s knowledge,
no employee of the Company is the subject of any claim or proceeding involving a violation of any term of any employment contract,
patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure
agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s
employment with the Company or actions undertaken by the employee while employed with the Company, in each of (i) through (v),
for any instances which would not, individually or in the aggregate, result in a Material Adverse Effect.

 

    	7.

    	 

    

 

3.12         FDA
Compliance.

 

 (a)          The
Company: (i) is in material compliance with all statutes, rules or regulations applicable to the ownership, testing, development,
manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export
or disposal of any product that is under development, manufactured or distributed by the Company (“Applicable Laws”);
(ii) has not received any FDA Form 483, notice of adverse finding, warning letter, untitled letter or other correspondence or notice
from the U.S. Food and Drug Administration (the “FDA”) or any other federal, state, local or foreign governmental
or regulatory authority alleging or asserting material noncompliance with any Applicable Laws or any licenses, certificates, approvals,
clearances, authorizations, permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”),
which would not, individually or in the aggregate, result in a Material Adverse Effect; (iii) possesses all material Authorizations
necessary for the operation of its business and such Authorizations are valid and in full force and effect and the Company is not
in material violation of any term of any such Authorizations; and (iv) since December 31, 2011: (A) has not received notice of
any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from the FDA or any other
federal, state, local or foreign governmental or regulatory authority or third party alleging that any product operation or activity
is in material violation of any Applicable Laws or Authorizations and the Company has no knowledge that the FDA or any other federal,
state, local or foreign governmental or regulatory authority or third party is considering any such claim, litigation, arbitration,
action, suit, investigation or proceeding; (B) has not received notice that the FDA or any other federal, state, local or foreign
governmental or regulatory authority has taken, is taking or intends to take action to limit, suspend, modify or revoke any material
Authorizations and has no knowledge that the FDA or any other federal, state, local or foreign governmental or regulatory authority
is considering such action; (C) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications,
records, claims, submissions and supplements or amendments as required by any Applicable Laws or Authorizations and that all such
reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments were materially complete
and correct on the date filed (or were corrected or supplemented by a subsequent submission); and (D) has not, either voluntarily
or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal
or replacement, safety alert, post sale warning, “dear doctor” letter, or other notice or action relating to the alleged
lack of safety or efficacy of any product or any alleged product defect or violation and, to the Company’s knowledge, no
third party has initiated, conducted or intends to initiate any such notice or action.

 

    	8.

    	 

    

 

(b)          
Since January 1, 2009, the Company has not received any notices or correspondence from the FDA or any other federal, state,
local or foreign governmental or regulatory authority requiring the termination, suspension or material modification of any studies,
tests or preclinical or clinical trials conducted by or on behalf of the Company.

 

3.13        General
Healthcare Regulatory Compliance.

 

(a)          As
used in this subsection:

 

(i)          “Governmental
Entity” means any national, federal, state, county, municipal, local or foreign government, or any political subdivision,
court, body, agency or regulatory authority thereof, and any Person exercising executive, legislative, judicial, regulatory, taxing
or administrative functions of or pertaining to any of the foregoing.

 

(ii)         “Law”
means any federal, state, local, national or foreign law, statute, code, ordinance, rule, regulation, order, judgment, writ, stipulation,
award, injunction, decree or arbitration award or finding.

 

(b)          The
Company has not committed any act, made any statement or failed to make any statement that would reasonably be expected to provide
a basis for the FDA or any other Governmental Entity to invoke its policy with respect to “Fraud, Untrue Statements of Material
Facts, Bribery, and Illegal Gratuities”, or similar policies, set forth in any applicable Laws. Neither the Company, nor,
to the knowledge of the Company, any of its officers, key employees or agents has been convicted of any crime or engaged in any
conduct that has resulted, or would reasonably be expected to result, in debarment under applicable Law, including, without limitation,
21 U.S.C. Section 335a. No claims, actions, proceedings or investigations that would reasonably be expected to result in such a
material debarment or exclusion are pending, or to the knowledge of the Company, threatened, against the Company or any of its
respective officers, employees or agents.

 

(c)          Each
of the Company and, to its knowledge, its directors, officers, employees, and agents (while acting in such capacity) is, and at
all times has been, in material compliance with all health care Laws applicable to the Company or by which any of its properties,
businesses, products or other assets is bound or affected, including, without limitation, the federal Anti-kickback Statute (42
U.S.C. § 1320a-7b(b)), the Anti-Inducement Law (42 U.S.C. § 1320a-7a(a)(5)), the civil False Claims Act (31 U.S.C.
§§ 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the Health Insurance Portability
and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.), the exclusion laws (42 U.S.C. § 1320a-7), the Food Drug and
Cosmetic Act (21 U.S.C. §§ 301 et seq.) (collectively, “Health Care Laws”). The Company has not received
any notification, correspondence or any other written or oral communication from any Governmental Entity, including, without limitation,
the FDA, the Centers for Medicare and Medicaid Services, and the Department of Health and Human Services Office of Inspector General,
of potential or actual material non-compliance by, or liability of, the Company under any Health Care Laws.

 

    	9.

    	 

    

 

 (d)          The
Company is not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar
agreements with or imposed by any Governmental Entity.

 

3.14         Application
of Takeover Protections. The issuance of the shares hereunder and Intrexon’s ownership thereof is not prohibited by the
business combination statutes of the state of Washington. The Company has not adopted any stockholder rights plan, “poison
pill” or similar arrangement that would trigger any right, obligation or event as a result of the issuance of such shares
and Intrexon’s ownership of such shares and there are no similar anti-takeover provisions under the Company's charter documents.

 

3.15         Private
Placement. Neither the Company nor its Affiliates, nor any Person acting on its or their behalf, (i) has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act of 1933 and the rules
and regulations promulgated thereunder (together, the “Securities Act”)) in connection with the offer or sale
of the shares hereunder, (ii) has, directly or indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under any circumstances that would require registration of the sale and issuance by the Company of the Technology
Access Fee Shares and the Milestone Shares under the Securities Act or (iii) has issued any shares of Common Stock or shares of
any series of preferred stock or other securities or instruments convertible into, exchangeable for or otherwise entitling the
holder thereof to acquire shares of Common Stock which would be integrated with the sale of the Shares to Intrexon for purposes
of the Securities Act or of any applicable stockholder approval provisions, including, without limitation, under the rules and
regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated,
nor will the Company or any of its subsidiaries or affiliates take any action or steps that would require registration of any of
the Shares under the Securities Act or cause the offering of the Shares to be integrated with other offerings. Assuming the accuracy
of the representations and warranties of Intrexon, the offer and sale of the Shares by the Company to Intrexon pursuant to this
Agreement will be exempt from the registration requirements of the Securities Act.

 

3.16         No
Manipulation of Stock. The Company has not taken and will not, in violation of applicable law, take, any action outside
the ordinary course of business designed to or that might reasonably be expected to cause or result in unlawful manipulation of
the price of the Common Stock.

 

3.17         Brokers.
Neither the Company nor any of the officers, directors or employees of the Company has employed any broker or finder in connection
with the transaction contemplated by this Agreement. The Company shall indemnify Intrexon from and against any broker’s,
finder’s or agent’s fees for which the Company is responsible.

 

sECTION
4.   Representations, Warranties and Covenants of Intrexon.

 

Intrexon hereby represents
and warrants to, and covenants with, the Company as of the date hereof as follows:

 

    	10.

    	 

    

 

4.1           Purchaser
Sophistication. Intrexon (a) is knowledgeable, sophisticated and experienced in making, and is qualified to make decisions
with respect to, investments in shares presenting an investment decision like that involved in the purchase of the shares, including
investments in securities issued by the Company and investments in comparable companies, and has requested, received, reviewed
and considered all information it deemed relevant in making an informed decision to purchase the shares; (b) Intrexon, in connection
with its decision to purchase the shares, relied only upon the Financial Statements, publicly available information, and the representations
and warranties of the Company contained herein; (c) Intrexon is an "accredited investor" pursuant to Rule 501 of Regulation
D under the Securities Act; (d) Intrexon is acquiring the shares for its own account for investment only and with no present intention
of distributing any of such shares or any arrangement or understanding with any other persons regarding the distribution of such
shares; (e) Intrexon has not been organized, reorganized or recapitalized specifically for the purpose of investing in the shares;
(f) Intrexon will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers
to buy, purchase or otherwise acquire to take a pledge of) any of the shares except in compliance with the Securities Act and applicable
state securities laws; (g) Intrexon understands that the shares are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of the Securities Act and state securities laws, and that the Company is relying upon the truth
and accuracy of, and Intrexon’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of Intrexon set forth herein in order to determine the availability of such exemptions and the eligibility of Intrexon to acquire
the shares; (h) Intrexon understands that its investment in the shares involves a significant degree of risk, including a risk
of total loss of Intrexon’s investment (provided that such acknowledgment in no way diminishes the representations, warranties
and covenants made by the Company hereunder); and (i) Intrexon understands that no United States federal or state agency or any
other government or governmental agency has passed upon or made any recommendation or endorsement of the shares.

 

4.2           Authorization
and Power. Intrexon has the requisite power and authority to enter into and perform this Agreement and to purchase the shares
being sold to it hereunder. The execution, delivery and performance of this Agreement by Intrexon and the consummation by it of
the transactions contemplated hereby have been duly authorized by all necessary corporate action, and no further consent or authorization
of Intrexon or its board of directors or stockholders is required. When executed and delivered by Intrexon, this Agreement shall
constitute a valid and binding obligation of Intrexon enforceable against Intrexon in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership
or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable
principles of general application.

 

    	11.

    	 

    

 

4.3           No
Conflict. The execution, delivery and performance of this Agreement by Intrexon and the consummation by Intrexon of the transactions
contemplated hereby do not and will not (i) violate any provision of Intrexon’s charter or organizational documents, (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture,
note, bond, license, lease agreement, instrument or obligation to which Intrexon is a party or by which Intrexon’s properties
or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations) applicable to Intrexon or by which any property or asset
of Intrexon are bound or affected, except, in all cases, other than violations (with respect to federal and state securities laws)
above, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually
or in the aggregate, materially and adversely affect Intrexon’s ability to perform its obligations under the Agreement.

 

4.4           Restricted
Shares. Intrexon acknowledges that the Technology Access Fee Shares and the Milestone Shares are restricted securities and
must be held indefinitely unless subsequently registered under the Securities Act or the Company receives an opinion of counsel
reasonably satisfactory to the Company that such registration is not required.

 

4.5           Ownership
of Common Stock. As of the date hereof, excluding the shares, Intrexon and its Affiliates beneficially own no shares of Common
Stock of the Company.

 

4.6           Stock
Legends. Intrexon acknowledges that certificates evidencing the shares shall bear a restrictive legend in substantially the
following form (and including related stock transfer instructions and record notations):

 

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY.

 

    	12.

    	 

    

 

sECTION
5.   Registration
and Indemnifications. 

 

5.1           Piggyback
Registration Rights. If, at any time, the Company proposes to file a registration statement under the Securities Act or any
other rule or regulation applying to the registration of the Company’s securities, other than a registration relating solely
to employee benefit plans or Rule 145 transactions, with respect to an underwritten offering for its own account of any class of
securities of the Company (a “Registration Statement”), then each such time, the Company shall give written
notice of such intention to file a Registration Statement (a “Piggyback Notice”) to Intrexon at least five (5)
days before the anticipated filing date. The Piggyback Notice shall describe the number of shares to be registered and the intended
method of distribution and offer Intrexon the opportunity to register pursuant to such Registration Statement such shares held
by Intrexon (the “Registrable Shares”) as Intrexon may request in writing to the Company within five (5) days
after the date Intrexon first received the Piggyback Notice (a “Piggyback Registration”). The Piggyback Registration
rights shall be subject ratably to potential underwriter’s limitations set forth herein. The Company shall take all reasonable
steps to include in the Registration Statement the Registrable Shares which the Company has been so requested to register by Intrexon.
The Company shall be entitled to suspend or withdraw a Registration Statement prior to its becoming effective. If the managing
underwriter with respect to such an offering advises the Company in writing that the inclusion of all or any portion of the Registrable
Shares which Intrexon has requested to be included in the Registration Statement would materially jeopardize the success of the
offering, then the Company shall be required to include in the underwriting only that number of Registrable Shares which the underwriter
advises the Company in writing may be sold without materially jeopardizing the offering. If Intrexon disapproves of the terms of
any such underwriting, it may elect to withdraw its Registrable Shares from such offering by written notice to the Company and
the underwriter. Intrexon also agrees to be subject to any lock-up agreements reasonably requested by a managing underwriter so
long as the Company shares held by the Company’s largest shareholder other than Intrexon are also subject to a similar lock-up
agreement. The Company shall not grant registration rights to any other holder or prospective holder of its securities in connection
with a private placement of the Company’s equity securities unless, (i) all shares of Common Stock held by Intrexon are,
at the time of such private placement, included on a Registration Statement, or (ii) the Company agrees, in connection with such
private placement, to grant Intrexon the right to include on any registration statement under the Securities Act pursuant to which
such other holder or prospective holder’s Common Stock is registered a number of Intrexon’s Registrable Shares equal
to one half of the number of shares of Common Stock to be registered on behalf of the other holder or prospective holder. Notwithstanding
the foregoing, for a period of one (1) year following the Effective Date, the Registrable Shares may be ratably or completely excluded
by the Company at the Company’s discretion from the Company’s initial public offering on form S-1 occurring after the
date hereof.

 

5.2           Registration
Expenses. All reasonable fees and expenses incident to the performance of or compliance with this Agreement by the Company,
except as and to the extent specified in this Section 5, shall be borne by the Company whether or not the Registration Statement
is filed or becomes effective and whether or not any shares are sold pursuant to the Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (A) with respect to filings required to be made with each securities exchange or market on which
shares are listed, (B) with respect to filings required to be made with the Financial Industry Regulatory Authority or other regulatory
institution and (C) in compliance with state or local securities or Blue Sky laws, (ii) messenger, telephone and delivery expenses,
(iii) fees and disbursements of counsel for the Company, (iv) Securities Act liability insurance, if the Company so desires such
insurance, and (v) fees and expenses of all other persons or entities retained by the Company in connection with the consummation
of the transactions contemplated by this Section 5, including, without limitation, the Company’s independent public accountants.

 

    	13.

    	 

    

 

5.3           Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless Intrexon,
its permitted assignees, officers, directors, agents, Affiliates (as that term is defined in the Channel Agreement) and employees,
to the fullest extent permitted by applicable law, from and against any and all claims, losses, damages, liabilities, penalties,
judgments, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) (collectively, “Losses”),
arising out of or relating to any untrue or alleged untrue statement of a material fact contained in a Registration Statement or
arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in the light of the circumstances
under which they were made) not misleading, except (i) to the extent that such untrue statements or omissions are based upon information
furnished to the Company by Intrexon expressly for use in the Registration Statement; (ii) as a result of the failure of such indemnitee
to deliver a prospectus, as amended or supplemented, to a purchaser in connection with an offer or sale; or (iii) the use by the
indemnitee of an outdated or defective prospectus after the Company has notified Intrexon in writing that the prospectus is outdated
or defective, but only if and to the extent that following such receipt the misstatement or omission giving rise to such Loss would
have been corrected; provided, however, that the indemnity agreement contained in this Section 5.3 shall not apply to amounts paid
in settlement of any Losses if such settlement is effected without the prior written consent of the Company, which consent shall
not be unreasonably withheld.

 

5.4           Indemnification
by Intrexon. Intrexon shall indemnify and hold harmless the Company, its directors, officers, agents and employees to the fullest
extent permitted by applicable law, from and against all Losses, as incurred, arising out of or relating to any untrue or alleged
untrue statement of a material fact contained in a Registration Statement or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus
or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent that such untrue
statement or omission is contained in or omitted from any information regarding Intrexon furnished in writing to the Company by
Intrexon expressly for use in therein, and that such information was reasonably relied upon by the Company for use therein, or
to the extent that such information relates to Intrexon or Intrexon’s proposed method of distribution of shares and was furnished
in writing by Intrexon expressly for use therein. Notwithstanding anything to the contrary contained herein, in no event shall
the liability of Intrexon under this Section 5.4 exceed the net proceeds to Intrexon as a result of the sale of shares pursuant
to a Registration Statement in connection with which the untrue or alleged untrue statement or material omission was provided.

 

sECTION
6.   Survival of Representations, Warranties and Agreements.

 

Notwithstanding any
investigation made by any party to this Agreement, all representations and warranties made by the Company and Intrexon herein shall
survive the execution of this Agreement and the issuance and sale to Intrexon of the shares and shall terminate two years after
the Technology Access Fee Closing, provided, however, the representations and warranties in Sections 3.1, 3.2, 3.3, 4.1, 4.3, 4.4,
4.5 and 4.6 shall survive for so long as Intrexon continues to hold any of the shares issued hereunder.

 

sECTION
7.   Covenants.

 

7.1          Notifications.

 

(a)          During
the period prior to the Technology Access Fee Closing, the Company will promptly advise Intrexon in writing of (i) any Material
Adverse Effect, or (ii) any notice or other communication from any third person or entity alleging that the consent of the third
person is required in connection with the transactions contemplated by this Agreement.

 

    	14.

    	 

    

 

 (b)          During
the period prior to each of the Milestone Closings, each party shall promptly notify the other of any action, suit or proceeding
that is instituted or specifically threatened in writing against such party to restrain, prohibit or otherwise challenge the legality
of any transaction contemplated by this Agreement.

 

 (c)          Any
(i) information received by Intrexon pursuant to this Section 7.1 and (ii) non-public information received by Intrexon pursuant
to Section 7.7 hereof shall be considered “Confidential Information” as such term is defined in the Channel Agreement
and Intrexon agrees to treat such information in accordance with the provisions of Article 7 of the Channel Agreement.

 

7.2           Reasonable
Best Efforts. Each party will use its reasonable best efforts to satisfy in a timely fashion each of the conditions to be satisfied
by it under Section 8 of this Agreement.

 

7.3           Press
Release. The Company and Intrexon shall work together to draft and issue a press release in form acceptable to each of the
Company and Intrexon announcing the transaction contemplated by this Agreement and the Channel Agreement which release shall be
issued within fifteen (15) days following the Effective Date (unless otherwise agreed upon by the parties).

 

7.4           Approval.
In each case where the Company determines that the approval of Company investors or any exchange or other listing upon which the
Common Stock may be listed is required for the issuance of Common Stock to Intrexon, the Company shall use commercially reasonable
efforts to secure such approval as promptly as possible. In the event, notwithstanding the foregoing obligation, the Company is
unable to secure the approval with respect to the issuance of any shares to be issued hereunder, the Company shall negotiate the
terms of an alternate form of consideration of equivalent value to such unissued shares.

 

7.5           No
Poison Pill. The Company will not adopt any stockholder rights plan, “poison pill” or similar arrangement, or adopt
any anti-takeover provisions under its Charter documents, that would trigger any right, obligation or event as a result of the
issuance of the shares hereunder to Intrexon.

 

7.6           Intrexon
Proposals. The Company further agrees that nothing herein shall limit the ability of Intrexon to confidentially propose to
the executive management of the Company and its board of directors, and/or advocate for, any transaction between the Company and
any third party unaffiliated with Intrexon or its Affiliates

 

7.7           Reporting
Compliance. During the Term of the Channel Agreement (as defined in the Channel Agreement), in the event that Intrexon
notifies the Company that Intrexon has reasonably concluded, after consultation with its outside advisors, that Intrexon will have
to consolidate the Company’s financial statements with its own, for so long as Intrexon reasonably believes that such consolidation
is necessary, the Company shall comply with the following additional obligations:

 

    	15.

    	 

    

 

(a)          The
Company shall maintain at its principal place of business or, upon notice to Intrexon, at such other place as the Company shall
determine:

 

(i)          a
copy of the Company’s certificate of incorporation or organizational document and all amendments thereto, together with executed
copies of any powers of attorney pursuant to which any amendment has been executed;

 

(ii)         a
copy of this Agreement;

 

(iii)        a
copy of the Company’s federal, state, and local income tax returns and reports, if any; and

 

(iv)        minutes
of meetings of the Company’s board of directors and shareholders or actions by written consent in lieu thereof, redacted
as necessary by the Company to exclude any sensitive or confidential information that Intrexon, by operation of law or contractual
stipulation, is not permitted to receive.

 

(b)          The
Company shall keep its books and records consistent with US GAAP.

 

(c)          Intrexon
at its own expense and upon reasonable notice, may examine any information it may reasonably request (including, to the extent
the Company has the right to provide such, the work papers of the Company’s internal and independent auditors) and make copies
of and abstracts from the financial and operating records and books of account of the Company, and discuss the affairs, finances
and accounts of the Company with the Company and independent auditors of the Company, all at such reasonable times and as often
as Intrexon or any agents or representatives of Intrexon may reasonably request. The rights granted pursuant to this Section 7.7(c)
are expressly subject to compliance by Intrexon with the safety, security and confidentiality procedures and guidelines of the
Company, as such procedures and guidelines may be established from time to time.

 

(d)          As
soon as available but no later than ninety (90) days after the end of each fiscal year, the Company shall cause to be prepared
and Intrexon to be furnished with an audited balance sheet as of the last day of such fiscal year and an audited income statement,
a statement of stockholders’ equity and statement of cash flows for the Company for such fiscal year and notes associated
with each, in each case prepared in accordance with US GAAP, together with a report of the Company’s independent auditor
that such statements have been prepared in accordance with US GAAP and present fairly, in all material respects, the financial
position, results of operations and cash flows of the Company.

 

(e)          As
soon as available but no later than forty five (45) days after the end of each calendar quarter, the Company shall furnish the
following to Intrexon an unaudited balance sheet as of the last day of such period, and an unaudited income statement, a statement
of cash flows and a statement of stockholders’ equity for the Company for such period, in each case prepared in accordance
with US GAAP.

 

    	16.

    	 

    

 

(f)          As
requested by Intrexon on no more than a quarterly basis, the Company shall deliver a certificate, executed by the Executive Officer
of the Company, certifying on behalf of the Company the following: The Company maintains accurate books and records reflecting
its assets and liabilities and maintains proper and adequate internal accounting controls that provide assurance that (1) transactions
are executed with management’s authorization; (2) transactions are recorded as necessary to permit preparation of the consolidated
financial statements of the Company and to maintain accountability for the Company’s consolidated assets; (3) access to the
assets of the Company is permitted only in accordance with management’s authorization; (4) the reporting of assets of the
Company is compared with existing assets at regular intervals; and (5) accounts, notes and other receivables and inventory are
recorded accurately, and proper and adequate procedures are implemented to effect the collection of accounts, notes and other receivables
on a current and timely basis.

 

(g)          The
Company shall promptly prepare and furnish to Intrexon any information, whether written or oral, requested by Intrexon that is
reasonably necessary for purposes of Intrexon’s ongoing compliance with applicable law

 

(h)          From
the time that the Company becomes a reporting company subject to the Securities Exchange Act of 1934, the Company may satisfy the
requirements under subsections (a)(i), (a)(ii), (d), (e) and (f) of this Section 7.7 by filing its quarterly and annual reports
with the Securities and Exchange Commission.

 

7.8          Modification
of Deadlines. The parties agree that the delivery deadlines in Section 7.7 will be modified to the extent necessary to ensure
that such deliverables are provided by the Company no less than thirty (30) days prior to the date necessary for Intrexon to meet
any disclosure obligation under rules or regulations to which Intrexon may be or become subject from time to time. Intrexon will
provide the Company with notice as promptly as practicable regarding any changes in Intrexon’s disclosure obligations that
would require a change in delivery deadlines or cure periods under this Section 7.7.

 

sECTION
8.   Conditions to Closing.

 

8.1          The
obligation hereunder of the Company to issue and sell shares to Intrexon at each Closing is subject to the satisfaction or waiver,
at or before the Closing of the conditions set forth below. These conditions are for the Company’s sole benefit and may be
waived by the Company at any time in its sole discretion.

 

(a)          Accuracy
of Intrexon’s Representations and Warranties. The representations and warranties of Intrexon shall be true and correct
as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that
are expressly made as of a particular date, which shall be true and correct as of such date.

 

(b)          No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

(c)          Performance
by Intrexon. Intrexon shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied by Intrexon at or prior to the Closing Date.

 

    	17.

    	 

    

 

(d)          Channel
Partnership Agreement. The Channel Agreement shall have been entered into by the Company and Intrexon and shall be in full
force and effect.

 

(e)          No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened in writing against Intrexon or any of
the officers, directors or Affiliates of Intrexon seeking to restrain, prevent or change the transactions contemplated by this
Agreement, or seeking damages in connection with such transactions.

 

(f)          Officer’s
Certificate. On each Closing, Intrexon shall have delivered to the Company a certificate signed by its Chief Financial Officer
or Secretary on behalf of Intrexon, dated as of such Closing, confirming on behalf of Intrexon the conditions precedent set forth
in paragraphs (a), (b), (c) and (e) of this Section 8.1 as of such Closing; provided, however, if the Company has elected to make
the Milestone Cash Payment, the officer’s certificate to be delivered at the Milestone Closing by Intrexon will address only
the conditions precedent set forth in paragraphs (b) and (e) of this Section 8.1.

 

8.2          The
obligation hereunder of Intrexon to receive shares and consummate the transactions contemplated by this Agreement, other than the
payment by the Company of cash in lieu of issuance of any of the Technology Access Fee Shares or in lieu of the Milestone Shares,
is subject to the satisfaction or waiver, at or before each Closing, of each of the conditions set forth below. These conditions
are for Intrexon’s sole benefit and may be waived by Intrexon at any time in its sole discretion. For clarity, neither the
satisfaction nor the waiver of any of the events, circumstances, deliveries or conditions set forth below is a condition precedent
to the obligation of Intrexon to accept the any cash payments in lieu of the Company’s issuing the Milestone Shares or the
Technology Access Fee Shares to Intrexon.

 

(a)          Accuracy
of the Company’s Representations and Warranties. Each of the representations and warranties of the Company in this Agreement
shall be true and correct as of the Closing Date, except for representations and warranties that speak as of a particular date,
which shall be true and correct as of such date. 

 

(b)          Performance
by the Company. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing
Date.

 

(c)          Channel
Partnership Agreement. The Channel Agreement shall have been entered into by the Company and Intrexon and shall be in full
force and effect.

 

(d)          No
Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

 

(e)          No
Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any governmental authority shall have been
commenced, and no investigation by any governmental authority shall have been threatened in writing against the Company or any
of the officers, directors or Affiliates of the Company seeking to restrain, prevent or change the transactions contemplated by
this Agreement, or seeking damages in connection with such transactions..

 

    	18.

    	 

    

 

(f)          No
Material Adverse Effect. Since the date of this Agreement, there shall not have occurred any Material Adverse Effect.

 

(g)          Approvals.
Any requisite shareholder, board, or exchange approvals relating to the issuance of the Common Stock as set forth herein have been
obtained in advance by Company.

 

(h)          Officer’s
Certificate. On each Closing, the Company shall have delivered to Intrexon a certificate signed by its Chief Financial Officer
or Secretary on behalf of the Company (the “Officer’s Certificate”), dated as of such Closing, confirming
on behalf of the Company the conditions precedent set forth in paragraphs (a), (b), (d), (e), (f) and (g) of this Section 8.2 as
of such Closing, and attaching and certifying a copy of the resolutions of the Company’s board of directors referred to in
the last sentence of Section 3.2.

 

sECTION
9.   Notices.

 

All notices or other communications which
are required or permitted hereunder shall be in writing and addressed as follows:

 

	If to the Company:	AmpliPhi Biosciences Corporation
	 	800 E. Leigh St., Suite 54
	 	Richmond, VA 23219
	 	Attention:  Chief Executive Officer
	 	Fax No.:  (804) 828-8566

 

	If to Intrexon:	Intrexon Corporation
	 	20358 Seneca Meadows Parkway
	 	Germantown, MD 20876
	 	Attention: Legal Department
	 	Fax No.:  (301) 556-9902

 

or to such other address as the party to
whom notice is to be given may have furnished to the other party in writing in accordance herewith. Any such communication shall
be deemed to have been given when delivered if personally delivered or sent by facsimile (provided that the party providing such
notice promptly confirms receipt of such transmission with the other party by telephone), on the business day after dispatch if
sent by a nationally-recognized overnight courier and on the third business day following the date of mailing if sent by certified
mail, postage prepaid, return receipt requested.

 

    	19.

    	 

    

 

sECTION
10.   Miscellaneous.

 

10.1         Fees
and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and
all other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement.

 

10.2         Waivers
and Amendments. Neither this Agreement nor any provision hereof may be changed, waived, discharged, terminated, modified or
amended except upon the written consent of the parties hereto.

 

10.3         Headings.
The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement.

 

10.4         Severability.
If any provision hereof should be held invalid, illegal or unenforceable in any respect, then, to the fullest extent permitted
by law, (a) all other provisions hereof shall remain in full force and effect and shall be liberally construed in order to carry
out the intentions of the Parties as nearly as may be possible and (b) the parties shall use their best efforts to replace the
invalid, illegal or unenforceable provision(s) with valid, legal and enforceable provision(s) which, insofar as practical, implement
the purposes of such provision(s) in this Agreement.

 

10.5         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York as applied to contracts
entered into and performed entirely in the State of New York by New York residents, without regard to conflicts of law principles.

 

10.6         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed
by each party hereto and delivered to the other parties.

 

10.7         Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the parties hereto, provided that Intrexon shall not assign
its rights or obligations hereunder unless Intrexon assigns such rights in whole and not in part to an assignee of such rights
and obligations which shall agree in writing with the Company to be bound by this Agreement.

 

10.8         No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

10.9         Expenses.
Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance
of this Agreement.

 

10.10       Entire
Agreement. This Agreement (including the Disclosure Schedule), the Channel Agreement, and other documents delivered pursuant
hereto and thereto, including the exhibits, constitute the full and entire understanding and agreement between the parties with
regard to the subjects hereof and thereof.

 

    	20.

    	 

    

 

10.11         Publicity.
Except as otherwise provided herein or in the Channel Agreement, no party shall issue any press releases or otherwise make any
public statement with respect to the transactions contemplated by this Agreement without the prior written consent of the other
party, except as may be required by applicable law or regulations, in which case such party shall provide the other parties with
reasonable notice of such publicity and/or opportunity to review such disclosure.

 

10.12         Waiver
of Rule of Construction. Each Party has had the opportunity to consult with counsel in connection with the review, drafting
and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement shall be construed
against the drafting Party shall not apply.

 

10.13         Further
Assurances. From and after the date of this Agreement, upon the reasonable request of Intrexon or the Company, the Company
and Intrexon shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable
to confirm and carry out and to effectuate fully the intent and purposes of this Agreement.

 

10.14         Company
Sale. For purposes of this Agreement, a “Company Sale” shall mean the sale of the Company, whether
in a single transaction or in a series of related transactions that are consummated contemporaneously (or consummated pursuant
to contemporaneous agreements), to one or more unaffiliated third parties on an arm’s-length basis, pursuant to
which such unaffiliated third party or parties acquires (i) (whether by merger, consolidation, sale or transfer
of capital stock, recapitalization, or otherwise) more than fifty percent (50%) of the Company's Common Stock or (ii)
all or substantially all of the assets of the Company determined on a consolidated basis.

 

[Remainder of page intentionally left blank.]

 

    	21.

    	 

    

 

In
Witness Whereof, the parties hereto have caused this Stock Issuance Agreement to be executed by their duly authorized
representatives as of the day and year first above written.

 

	 	AMPLIPHI BIOSCIENCES CORPORATION	 
	 	 	 
	 	By:	       	 
	 	Name:	 
	 	Title:	 
	 	 	 	 
	 	INTREXON CORPORATION	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:

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