Master Alliance Provisions Guide (MAPGuide)

Funder Development Partnering Agreement

  • Equitable Access | Ensuring continuity

9. Conditions Precedent and Funder step-in Rights

9.1 Funder Step-in Rights and Conditions Precedent. Funder shall not be entitled to Develop, Market or otherwise exploit Product whether itself or through third parties unless and until one or more of the events set out below occurs:

9.1.1. the Partner materially fails to Develop the Product in accordance with the Development Plan except where the Parties agree such failure is due to reasonable scientific, safety or regulatory issues;

9.1.2. the Partner fails to use Reasonable Efforts to satisfy any Milestone by the relevant Milestone Date;

9.1.3. the Partner notifies Funder that it has elected either not to (i) Develop the Product for use in the Field or (ii) Market Product for use in the Field in one or more countries or regions in the Affected Territory; [“Field” means the disease area relevant for the project.]

9.1.4. the occurrence of any of the events set out in Clauses 15.2 or 15.3 (or both);

9.1.5 in the event of an Outbreak or Increased Outbreak Preparation Need, and (i) the Partner informs Funder that it will not be able to manufacture or deploy the Product in appropriate timescales and quantities or at a cost appropriate to the Outbreak or Increased Outbreak Preparation Need; or (ii) in Funder’s reasonable judgement, the Partner cannot or will not take all necessary steps in a timely manner to manufacture or deploy the Product in quantities and at a cost appropriate to the Outbreak or Increased Outbreak Preparation Need.

9.1.6. if Funder opts to exercise its step-in rights in either of the events set out in Clause 8.2 and 8.3; (each a “Condition Precedent” and together, the “Conditions Precedent”).

9.2. Effects of the occurrence of one or more Conditions Precedent. On the occurrence of one or more of the Conditions Precedent:

9.2.1. Funder shall notify the Partner in writing of the occurrence of one or more Conditions Precedent;

9.2.2. Funder may exercise the rights granted under the Licences;

9.2.3. Funder shall have the discretion to make any and all decisions in relation to the Development and Marketing of the Product in the Field for use in the Affected Territory and if so instructed by Funder in writing, the Partner shall cease Developing and Marketing Product.

9.2.4. The Partner shall use all reasonable endeavours to give assistance to Funder (or its nominees) in relation to the Development and Marketing of the Product for use in the Affected Territory including: i. assisting in the transfer to Funder or its nominee Existing Data, Data, Materials, Confidential Information and Regulatory Filings (including the Master File) necessary or desirable for the Funder or its nominee to conduct such Development and Marketing of the Product in the Field for use in the Affected Territory; and ii. executing any necessary documents.

9.2.5. Funder shall have the right to take all such action as it shall consider necessary or appropriate at its discretion and expense to bring or defend an action on behalf of the Partner. The Partner shall (at the Partner’s cost) provide all reasonable assistance to Funder as Funder may request in relation to such action, including granting Funder the right to bring an action in the name of the Partner if necessary.

9.2.6. The Escrow Materials shall be released immediately to Funder or its nominee.

9.3 Development and Use Licenses. The Partner hereby grants to Funder with effect from the Effective Date and for all rights, data and materials not in existence at the Effective Date, shall grant on their creation:

9.3.1. a non-exclusive, irrevocable, worldwide, royalty-free licence, under the Foreground Intellectual Property with the right to grant sublicences to (i) Develop the Product worldwide for use in the Field, (ii) Manufacture the Product worldwide for use in the Field and (iii) Market the Product in the Field for use in the Affected Territory; and

9.3.2. a non-exclusive, irrevocable, worldwide, royalty-free licence, with the right to grant sublicenses under Background Intellectual Property to (i) Develop the Product worldwide for use in the Field, (ii) Manufacture the Product worldwide for use in the Field and (iii) Market the Product in the Field for use in the Affected Territory; and

9.3.3. a non-exclusive, irrevocable, worldwide, royalty-free licence, with the right to grant sub licences to use the Existing Data, the Data, Confidential Information, Regulatory Filings, Master File and Materials to (i) Develop the Product worldwide for use in the Field, (ii) Manufacture the Product worldwide for use in the Field and (iii) Market the Product in the Field for use in the Affected Territory (defined as “the geographic area of any country (i) where there is an Outbreak or (ii) for which there is an Increased Outbreak Preparation Need or (iii) the Parties otherwise agree in writing and in each case, including healthcare workers providing healthcare in such a country regardless of their home country”); and

9.3.4. where the Condition Precedent is also a breach of this Agreement by Partner, the licence granted under Clause 9.3.1 shall be an exclusive, irrevocable, worldwide, royalty-free licence;

(together, the “Licences”); provided however that Funder may not exercise the rights granted under the Licences unless and until the occurrence of one or more Conditions Precedent.

9.4 Escrow. The Partner shall as soon as reasonably practical after the Effective Date, establish escrow arrangements with a mutually agreed third party escrow agent (the “Escrow Agent”) upon terms which are acceptable to Funder (acting reasonably), pursuant to an escrow agreement entered into by the Escrow Agent, the Partner and Funder. Such escrow agreement shall allow Funder access to Confidential Information, Existing Data, Data, Materials and Regulatory Filings, including the Master File, and any supporting data for the Background Intellectual Property and Foreground Intellectual Property relating to Product in the Field for use in the Affected Territory as necessary or useful for the Development and Marketing of the Product in the Field for use in the Affected Territory by Funder or a third party. The escrow arrangements may extend, as necessary and appropriate to biological materials, cell-lines, software, source code for manufacturing processes, assays, most up to date pathogen samples and the like. The Partner shall make ensure that all materials required to be placed in escrow are in escrow and complete and up to date at the time Partner requests any Milestone Payment from Funder. Funder shall only be able to access the escrow with the consent of the Partner or if any of the events described in Clause 9.1 have occurred.