ADVANCE PURCHASE AGREEMENT (“APA”) FOR THE PRODUCTION, PURCHASE AND SUPPLY OF A COVID-19 VACCINE IN THE EUROPEAN UNION

*           Ref. Ares(2020)4440071 - 26/08/2020 SENSITIVE RELEASABLE TO: Need to know basis ADVANCE PURCHASE AGREEMENT (“APA”) FOR THE PRODUCTION, PURCHASE AND SUPPLY OF A COVID-19 VACCINE IN THE EUROPEAN UNION This Advance Purchase Agreement (this “Agreement”) for the production, purchase and supply of the ChAdOx1 nCov-19 vaccine (“Vaccine”) in the European Union (the “EU”) is entered into as of 27 August 2020 (the “Effective Date”), by the following parties: - the European Commission having a business address of rue de la Loi 200, 1049 Brussels (Belgium) (the “Commission” or “Contracting Authority”) acting on behalf and in the name of the member states of the European Union (each a “Member State”). - and AstraZeneca AB, a party incorporated in Sweden having a business address of KVARNBERGAG 16, 151 85 SÖDERTÄLJE (“AstraZeneca”, the “contractor”). The Commission, the Participating Member States and AstraZeneca may each be referred to herein individually as a “Party” and collectively as the “Parties.” WHEREAS, by Decision C(2020) 4192 final of 18 June 2020, the Commission approved the agreement with Member States on procuring Covid-19 vaccines on behalf of the Member States (“the Decision”). This agreement is based on Article 4, paragraph 5, point (b) of Regulation (EU) 2016/369 of 15 March 2016 on the provision of emergency support 1 within the Union (“the ESI Regulation”) which provides that the Commission may grant emergency support in the form of procurement on behalf of the Member States based on an agreement between the Commission and Member States. In order to implement such action, the Commission has offered to run a single central procurement procedure on behalf of Member States, with a view to signing EU-level advanced purchase agreements with various vaccine manufacturers. WHEREAS, according to Article 4 of the agreement between the Commission and the Member States, as annexed to the Decision, where the Commission intends to conclude an APA containing an obligation to acquire Vaccine Doses, it shall inform the Member States of such intention and the detailed terms. In case a Member State does not agree with the conclusion of an APA containing an obligation to acquire Vaccine Doses or its terms, it has the right to opt out by explicit notification to the Commission within five working days after the Commission has communicated its intention to conclude the APA. All Member States not having opted out within the period of five (5) working days are deemed to have authorised the Commission to negotiate and conclude the APA with the vaccine manufacturer in their name and on their behalf and become thus by operation of law Participating Member States. WHEREAS, the present APA contains obligations to acquire Vaccine Doses. 1 OJ L 70, 16.3.2016, p.1, as amended by Council Regulation (EU) 2020/521 of 14 April 2020 activating the emergency support under Regulation (EU) 2016/369, and amending its provisions taking into account the COVID‐ 19 outbreak, OJ L 117, 15.4.2020, p. 3. 1
* SENSITIVE RELEASABLE TO: Need to know basis WHEREAS, consequently, the Commission can only conclude the APA in the name and on behalf of Participating Member States by signing it with the company concerned once the opt out period has lapsed. WHEREAS, according to Article 5 of the agreement between the Commission and the Member States, once concluded, the terms of the APA shall be legally binding on the Member States, except for those who have exercised their right to opt out. Those Member States for which the agreement has become legally binding are set out in Schedule B (the “Participating Member States”). WHEREAS, to combat the current COVID-19 global pandemic (the “COVID Pandemic”), AstraZeneca has partnered with Oxford University to rapidly clinically evaluate and scale-up global manufacturing of the Vaccine. WHEREAS, AstraZeneca has accelerated its manufacturing scale-up concurrently with its conduct of global clinical trials to ensure the broadest possible availability of the Vaccine, as quickly as possible. WHEREAS, as part of that scale-up, AstraZeneca has committed to use its Best Reasonable Efforts (as defined below) to build capacity to manufacture 300 million Doses of the Vaccine, at no profit and no loss to AstraZeneca, at the total cost currently estimated to be Euros for distribution within the EU                                     (the “Initial Europe Doses”), with an option for the Commission, acting on behalf of the Participating Member States, to order an additional 100 million Doses (the “Optional Doses”). WHEREAS, AstraZeneca will supply the Initial Europe Doses to the Participating Member States according to the terms of this Agreement. WHEREAS, each Participating Member State must execute and deliver an Order Form in the form of Exhibit A (an “Order Form”) with the information relevant to such member state filled in. WHEREAS the present Agreement has been awarded to AstraZeneca by decision C(2020) 5707 of 14 August 2020 resulting from the negotiated procedure n° SANTE/2020/C3/037. NOW THEREFORE, in consideration of the mutual promises and covenants set forth below and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the Parties hereby agree as follows: 1.       Definitions. When used in this Agreement, the following capitalized terms shall have the meanings set forth in this Article 1. 1.1.     “Accounting Standards” means International Financial Reporting Standards (IFRS). 1.2.     “Additional Doses” has the meaning given in Section 5.3. 2
* SENSITIVE RELEASABLE TO: Need to know basis 1.3.      “Affiliate” means, with respect to a Party, any Person that Controls, is Controlled by or is under common Control with such Party. 1.4.      “Agreement” has the meaning given in the preamble, namely the Advance Purchase Agreement. 1.5.      “Alliance Manager” has the meaning given in Section 2.3. 1.6.      “Applicable Law” means any law or statute, any rule or regulation (including written governmental interpretations thereof, the guidance related thereto, or the application thereof) issued by a Governmental Authority or Regulatory Authority and any judicial, governmental, or administrative order, judgment, decree, or ruling, in each case as applicable to the subject matter and the parties at issue. 1.7.      “AstraZeneca” has the meaning given in the preamble. 1.8.      “AZ Exchange Rate” has the meaning given in Section 1.15. 1.9.      “Best Reasonable Efforts” means (a) in the case of AstraZeneca, the activities and degree of effort that a company of similar size with a similarly-sized infrastructure and similar resources as AstraZeneca would undertake or use in the development and manufacture of a Vaccine at the relevant stage of development or commercialization having regard to the urgent need for a Vaccine to end a global pandemic which is resulting in serious public health issues, restrictions on personal freedoms and economic impact, across the world but taking into account efficacy and safety; and (b) in the case of the Commission and the Participating Member States, the activities and degree of effort that governments would undertake or use in supporting their contractor in the development of the Vaccine having regard to the urgent need for a Vaccine to end a global pandemic which is resulting in serious public health issues, restrictions on personal freedoms and economic impact, across the world. 1.10.     “Binding Allocation” has the meaning given in Section 8.3. 1.11.     “CMOs” means contract manufacturing organizations. 1.12.     “Commission” has the meaning given in the preamble. 1.13.     “Confidential Information” has the meaning given in Section 16.1. 1.14.     “Control” means: (i) to possess, directly or indirectly, the power to direct the management or policies of a Person, whether through ownership of voting securities or by contract relating to voting rights or corporate governance, or (ii) to own, directly or indirectly, fifty percent (50%) or more of the outstanding voting securities or other ownership interest of such Person, or (iii) in the case of a partnership, control of the general partner, and “Controls” and “Controlled” shall be construed accordingly. 3
* SENSITIVE RELEASABLE TO: Need to know basis 1.15.     “Cost of Goods”       means the fully burdened aggregate reasonable direct and indirect costs and expenses incurred by AstraZeneca to manufacture the Vaccine Doses, consisting of: (a) direct labor costs (salaries, wages, employee benefits, overtime costs and shift premiums); (b) direct materials (including raw materials and intermediates and interim packaging) costs; (c) a fair and reasonable allocation of operating costs of facilities and equipment (including start up and cleaning costs of production), including an allocation of the cost of idle capacity at relevant manufacturing sites, in each case, calculated b... (d) quality, release and in-process control costs; (e) charges for reasonable spoilage, scrap or rework costs; (f) amounts (without mark-up) that are paid to a third party, in connection with their manufacture of the Vaccine or any component thereof including any costs associated with technology transfer and/or establishment of manufacturing capacity; (g) the reasonable allocation of facility overhead, both fixed and variable, to such manufacturing operation (including the allocable costs of administrators and managers overseeing manufacturing and production) maintenance, engineering, safety, finan... (h) any non-refundable or non-creditable Indirect Taxes, customs and excise duties, or similar Taxes; and (i) any royalties paid or payable to third parties in connection with the exploitation of the Vaccine, such royalties to be calculated as a percentage of the costs described in (a) through (h) above. . 4
* SENSITIVE RELEASABLE TO: Need to know basis (a) costs and expenses for pharmacovigilance directly incurred for, or fairly allocable to, the                                                                                  Vaccine; (b) regulatory filing fees for the Vaccine and other regulatory costs and expenses directly      incurred    for,     or     fairly      allocable     to,     the      Vaccine; (c) supporting functions and the cost of working capital directly incurred for, or fairly allocable                to,                the                  Vaccine;                 and (d) any other costs and expenses directly incurred for, or fairly allocable to, the Vaccine (e.g., legal, finance, reporting, compliance and executive management oversight). (a) costs related to the operation of the facility incurred while using the facility to manufacture                                   other                                 products; (b) industrial operations-related corporate costs (such as but not limited to corporate projects,                                strategic                                  analysis); (c) any refundable or creditable Indirect Taxes, customs and excise duties, or similar Taxes (d)         storage        and          distribution          of        the          Vaccine; (e)      destruction     for      any     material        produced      at      risk;     and (f) costs and expenses directly incurred for, or fairly allocable to, post-launch safety and risk management studies for the Vaccine. 1.16.     “COVID Pandemic” has the meaning given in the recitals. 1.17.     “Defect” means the characteristic of a product that does not provide the safety which a person is entitled to expect taking all circumstances into account, including: (a) the presentation of the product; (b) the use to which it could reasonably be expected that the product would be put; and (c) the time when the product was put into circulation, in each case as such term is interpreted consistently with the term “defective” under Article 6 of the EU Product Liability Directive 85/374/EEC. 5
* SENSITIVE RELEASABLE TO: Need to know basis 1.18.     “Disclosing Party” has the meaning given in Section 16.1(b). 1.19.     “Distribution Hubs” has the meaning given in Section 8.1. 10 1.20.     “Dose” means approximately 5.0 x 10 virus particles/dose in no more than 0.5m1 with the understanding that the final commercial dose and dose volume will be informed by the data emerging from the clinical development program and the optimization of the manufacturing process. 1.21.     “Effective Date” has the meaning given in the preamble. 1.22.     “EMA” means European Medicines Agency. 1.23.     “Executive Officer” means, with respect to AstraZeneca, its EVP Europe and, with respect to the Commission, the Director-General of the Directorate General Health and Food Safety (DG SANTE). 1.24.     “Fill/Finish/Packaging Costs” has the meaning given in Schedule A. 1.25.     “Funding” has the meaning given in Section 7.1. 1.26.     “Good Manufacturing Practices” means the current practices for manufacture required by the standards, rules, principles and guidelines set out in Directive 2001/83/EC (as amended by Directive 2004/27/EC), Directive 2003/94/EC and EudraLex - Volume 4 of the Rules Governing Medicinal Products in the EU entitled “EU Guidelines to Good Manufacturing Practice Medicinal Products for Human and Veterinary Use”. 1.27.     “Governmental Authority” means any court, agency, department, authority or other instrumentality of any nation, supranational body, state, county, city or other political subdivision. 1.28.     “Indemnified Persons” has the meaning given in Section 14.1. 1.29.     “Indemnifying Party” has the meaning given in Section 14.2. 1.30.     “Indirect Taxes” means value added, sales, consumption, goods and services taxes or other similar Taxes required by Applicable Laws to be disclosed as a separate item on the relevant invoice. 1.31.     “Initial Europe Doses” has the meaning given in the recitals. 1.32.     “Initial Funding” has the meaning given in Section 7.2. 1.33.     “Know-How” means (a) inventions, technical information, know-how, show- how, data (including physical data, chemical data, toxicology data, animal data, raw data, clinical data, and analytical and quality control data), formulae, assays, sequences, discoveries, procedures, processes, practices, protocols, methods, techniques, results of experimentation, knowledge, trade secrets, designs, skill, experience; and/or (b) any 6
* SENSITIVE RELEASABLE TO: Need to know basis information embodied in compounds, compositions, materials (including chemical or biological materials), formulations, dosage regimens, apparatus, devices, specifications, samples, works, regulatory documentation and submissions pertaining to, or made in association with, filings with any Regulatory Authority. 1.34.     “Losses” has the meaning given in Section 14.1. 1.35.     “Order Form” has the meaning given in Section 3.1. 1.36.      “OMCL” means Official Medicines Control Laboratories. 1.37.     “Optional Doses” has the meaning given in Section 5.2. 1.38.     “Participating Member States” has the meaning given in the preamble. 1.39.     “Person” means any individual, sole proprietorship, partnership, limited partnership, limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization (whether or not having a separate legal personality), including a government or political subdivision or department or agency of a government. 1.40.     “Phase I/II Trial Results” has the meaning given in Section 4.2(a). 1.41.     “Price Per Dose” has the meaning given in Section 7.4(a). 1.42.     “Receiving Party” has the meaning given in Section 16.1(b). 1.43.      “Regulatory Authority” means the European Medicines Agency (EMA) or any other Governmental Authority regulating the conduct, manufacture, market approval, sale, distribution or use of the Vaccine within the EU. 1.44.     “Related Persons” means spouses, heirs, children (whether natural or adopted), descendants, successors and assigns, estates, or legal representatives, executors, administrators or any other person or entity representing the rights of the injured person or any of the foregoing. 1.45.     “Representative” has the meaning given in Section 2.2. 1.46.     “Tax” means any form of tax or taxation, levy, duty, charge, social security, charge, contribution, or withholding of whatever nature (including any related fine, penalty, surcharge or interest) imposed by, or payable to, a Tax authority. 1.47.     “Tender Specifications” has the meaning given in Section 18.9. 1.48.      “Third Party Claim” has the meaning given in Section 14.2. 1.49.     “Upfront Costs” has the meaning given in Schedule A. 7
* SENSITIVE RELEASABLE TO: Need to know basis 1.50.     “Vaccine” has the meaning given in the recitals. 1.51.     “Vaccine IP Rights” has the meaning given in Section 11.1. “Willful Misconduct” means an act or omission taken (a) intentionally to 1.52. achieve a wrongful purpose; (b) knowingly without legal or factual justification; and (c) in disregard of a known or obvious risk that is so great as to make it highly prob... Each of the foregoing conditions must be proven with clear and convincing evidence. 2.       Roles of the Parties 2.1. The Commission: For the purpose of this Agreement, the Commission hereby represents and warrants that as a result of the Decision, it has the power and authority to act on behalf and in the name of the Participating Member States, in accordance with the terms set forth in this Agreement, for the following subjects: (a) Development of the Vaccine as described in Section 4; (b) Funding process as described in Section 7, except for the payments resulting from the obligations assumed directly by the Participating Member States as described in Sections 7.3 and 7.4. (c) Audit of costs, as described in Section 7.6. (d) Allocation, as described in Section 8.3. (e) Any other subject not specifically attributed to the Participating Member States according to Section 2.2. In all dealings concerning those subjects, the Commission represents and warrants that it has full power and authority to: (i) execute, deliver, and receive on behalf of the Participating Member States all notices, requests and other communications hereunder; (ii) act as the point of contact for the Participating Member States; (iii) facilitate communications between the Parties for the purposes of this Agreement; and (iv) take such other administrative actions on their behalf in connection with this Agreement as the Commission and the Participating Member States deem appropriate. In all dealings concerning those subjects, the Commission agrees on behalf of itself and the Participating Member States that AstraZeneca shall be entitled to act and rely upon any statement, request, notice or agreement made or given by the Commission. Subject to each Participating Member State being bound by Section 16 of this Agreement, the Commission may share with the Participating Member States all information, documentation, data and other materials received from AstraZeneca. 8
* SENSITIVE RELEASABLE TO: Need to know basis 2.2.      The Participating Member States. For the purpose of this Agreement, each Participating Member State shall designate a representative (each, a “Representative”) concerning the following subjects of this Agreement: (a) Manufacturing and supply as described in Section 5.4. (b) Payments resulting from the obligations assumed by the Participating Member States as described in Sections 7.3 and 7.4. (c) Orders and delivery of the Vaccine Doses to the Distribution Hubs as described in Section 8.1. (d) Distribution of the Vaccine Doses as described in Section 8.3. (e) Indemnification as described in Section 14. (f) Release; Limitation of Liability; Disclaimer of Warranties as described in Section 15. In all dealings concerning those subjects, each Participating Member State hereby represents and warrants that its Representative will have full power to execute, deliver, and receive on such Participating Member State’s behalf all notices, requests and other communications and each Participating Member State agrees that AstraZeneca shall be entitled to act and rely upon any statement, request, notice or agreement made or given by such Representative. Each Participating Member State shall have the right, power and authority to replace such Representative upon written notice to AstraZeneca stating that such prior Representative is being replaced and providing the name and relevant contact information for the replacing Representative. Each Participating Member State shall bear the costs of its respective Representative. 2.3.      Alliance Manager. Promptly after the Effective Date, the Commission and AstraZeneca shall each appoint one Person who shall oversee contact between the Commission, on the one hand, and AstraZeneca, on the other hand, and such appointed Persons shall have such other responsibilities as the Parties may agree in writing after the Effective Date (each appointed Person, an “Alliance Manager”). The Alliance Manager appointed by the Commission will act as a point of contact for the various Participating Member States for activities related to this Agreement, including to share information received from AstraZeneca that is intended to be shared with the Participating Member States. The Alliance Managers shall work together to manage and facilitate communications between the Commission and AstraZeneca under this Agreement, and shall meet monthly to perform their responsibilities in accordance with the terms of this Agreement, including the resolution of issues between the Commission and AstraZeneca that arise in connection with this Agreement. The Alliance Managers shall not have final decision-making authority with respect to any matter under this Agreement. Each of the Commission and AstraZeneca may replace its Alliance Manager at any time by seven (7) days’ prior notice in writing to the other 9
* SENSITIVE RELEASABLE TO: Need to know basis Party. The Commission and AstraZeneca shall each bear the costs of its Alliance Manager. 3.   Subject matter 3.1.      Order Form (a) Attached as Exhibit A to this Agreement is an Order Form which has been negotiated on behalf of the Member States by the Commission. In order to maintain the right to purchases Doses of Vaccine as contemplated by this Agreement, an EU Member State must execute and deliver an Order Form in the form of Exhibit A with the information relevant to such member state filled in. (b) The Parties acknowledge and agree that the Order Form is an essential and important part of this Agreement and AstraZeneca has entered into this Agreement in reliance on Member States executing such Order Forms as contemplated hereby. Such Order Forms have to be entered into by each of the Participating Member States within 10 working days following the delivery by the Commission of the Binding Allocation according to Section 8.3 (a). If an EU Member State does not execute and deliver an Order Form within such deadline, such Member State shall not be eligible to receive any portion of the Initial Europe Doses, the Optional Doses and the Additional Doses under this Agreement and shall not be entitled to any benefit of this Agreement. 4.   Development. 4.1.      Development. As between the Parties, AstraZeneca shall have the sole right and responsibility for all aspects relating to the research and development of the Vaccine with the goal of establishing a Vaccine that is safe and efficacious for manufacture and sale as contemplated by this Agreement. 4.2.      Reporting. (a) Along with its offer, AstraZeneca has provided to the Commission reports of the interim and final results of the Oxford University-sponsored Phase I/II clinical study of the Vaccine (the “Phase I/II Trial Results”) from Oxford University. AstraZeneca shall provide to the Commission (i) key updates on development of the Vaccine project, including regulatory matters relevant to the Vaccine; and (ii) updates on progress, challenges and opportunities on establishment of the supply chain for the Vaccine. Notwithstanding the foregoing, in no event shall AstraZeneca be obligated to disclose Vaccine development project results or other information concerning development of the Vaccine that AstraZeneca is not legally or contractually permitted to share, including such information which AstraZeneca may be required to first disclose to Oxford University. In the event that AstraZeneca is not legally or contractually permitted to share such information, AstraZeneca shall explain the basis upon which it is not permitted to share such information and provide relevant evidence to the extent legally or contractually permissible. 10