As of December 26, 2016, the Amended and Restated Collaborative Research and License Agreement, dated June 14, 2011 (the "Restated Agreement"), by and among pSivida Corp., pSivida US, Inc., pSiMedica Limited (collectively, the "Company") and Pfizer Inc. ("Pfizer") automatically terminated pursuant to the terms thereof. As previously disclosed, the Restated Agreement amended and restated the Collaborative Research and License Agreement, dated as of April 3, 2007, between the Company and Pfizer (the "Original Agreement"). Under the Restated Agreement, the Company granted Pfizer an exclusive option under various circumstances to a license to develop and commercialize worldwide a sustained release bioerodible implant designed to deliver latanoprost by subconjunctival injection (the "Product") for ophthalmic diseases in humans other than Uveitis. In exchange, the Company was entitled to consideration of up to $168.8 million plus royalties, regained all rights to its intellectual property in ophthalmic applications previously included in the Original Agreement other than pursuant to the Restated Agreement and had rights to develop and commercialize the Product if Pfizer were to not exercise its option to do so. In June 2011, Pfizer paid the Company $2.3 million as an upfront payment. Pursuant to Section 3.3 of the Restated Agreement, the Company is permitted to elect to cease development of the Product at any time after June 14, 2012 but prior to completion of Phase II clinical trials for the Product, upon providing notice to Pfizer of such election (the "Cessation Notice"), at which time the Company would have no further obligations with respect to the Product under the Restated Agreement. After receipt of the Cessation Notice, Pfizer has the right to elect to solely fund further development and commercialization of the Product, provided that Pfizer is required to make such election and notify the Company (the "Funding Option Notice") no later than sixty days after receiving the Cessation Notice. In the event Pfizer does not submit a Funding Option Notice with respect to the Product within the sixty-day election period, then the Restated Agreement automatically terminates at the end of the sixty-day election period. After such termination, the Company would have the right, alone or with or through other persons with rights to Pfizer intellectual property necessary to develop, manufacture and commercialize the Product. Notwithstanding the foregoing, if the Company provides the Cessation Notice but does not actually cease all development activities with respect to the Product for at least one year, then the automatic termination would be null and void and the Restated Agreement would remain in effect. The Company delivered the Cessation Notice to Pfizer on October 27, 2016. Pursuant to the Restated Agreement, Pfizer had until December 26, 2016 to deliver a Funding Option Notice to the Company. Pfizer did not provide the Funding Option Notice as of December 26, 2016 and therefore, subject to the limited exception, the Restated Agreement automatically terminated as of such date.