17.	Subsequent Events

In January 2016 the Company entered into a Collaboration and License Agreement (the “License Agreement”) with Nestec Ltd. (“NHS”) for the development and commercialization of certain of the Company’s product candidates in development for the treatment and management of CDI and IBD, including ulcerative colitis and Crohn’s disease. NHS is a related party to the Company since an affiliate of NHS is one of the Company’s stockholders.

The License Agreement will support the development of the Company’s portfolio of products for CDI and IBD in markets outside of the United States and Canada (the “Licensed Territory”) and is expected to provide financial support for the Company’s ongoing research and development. The Company has retained full commercial rights to the Company’s entire portfolio of product candidates with respect to the United States and Canada.

Under the License Agreement, the Company granted to NHS (i) an exclusive, royalty-bearing license to develop and commercialize, in the Licensed Territory, certain products based on the Company’s microbiome technology that are being developed for the treatment of CDI and IBD, including SER-109, SER-262, SER-287 and SER-301 (collectively, the “NHS Collaboration Products”) and (ii) a non-exclusive license to develop, make and export NHS Collaboration Products worldwide solely for the commercialization in the Licensed Territory.

In exchange for the license, NHS is obligated to pay the Company an upfront cash payment of $120,000, which the Company received in February 2016. NHS has also agreed to pay the Company tiered royalties, at percentages ranging from the high single digits to high teens, of net sales of NHS Collaboration Products in the Licensed Territory. Additionally, NHS has agreed to pay the Company up to $660,000 for the achievement of certain development and regulatory milestones and up to an aggregate of $1,125,000 for the achievement of certain commercial milestones related to the sales of NHS Collaboration Products.