Exhibit 10.67
Execution Version
Confidential
AMENDMENT TO COLLABORATION AND LICENSE AGREEMENT
     This Amendment to Collaboration and License Agreement (the “Amendment”),
effective as of November 27, 2006, 5 p.m. Eastern Standard Time (the “Amendment
Effective Date”), is made by and between Cytokinetics, Inc., a Delaware
corporation (“CK”) and Glaxo Group Limited, a United Kingdom corporation (“GSK”)
(each a “Party;” together the “Parties”).
BACKGROUND
     A. CK and GSK have entered into that certain Collaboration and License
Agreement by and between the Parties dated June 20, 2001, as amended (the
“Agreement”); and
     B. The Parties wish to further amend the Agreement in order to modify the
rights and obligations of the Parties under the Agreement, all on the terms and
conditions set forth below.
     NOW, THEREFORE, for and in consideration of the covenants, conditions and
undertakings hereinafter set forth, the Parties agree to amend the Agreement as
follows:
     1. Definitions. As used in this Amendment, the following terms shall have
the indicated meanings:
          (a) Terms from the Agreement. All capitalized terms not defined herein
shall have the meaning ascribed to them in the Agreement, except to the extent
otherwise expressly set forth in this Amendment.
          (b) “Additional Indication” shall mean any indication, dosing schedule
or combination regimen for a KSP Product that is determined from or evaluated in
connection with the conduct of the CK Clinical Studies, other than an Enhanced
Indication.
          (c) “Assigned Patents” shall mean all Patents (including GSK and its
Affiliates’ interest in jointly owned Patents) that claim any CK Target, CK
Compound and/or CK Product (including any target, compound and/or product that
was a Collaboration Target, Development Compound or Licensed Product prior to
the Amendment Effective Date) or that claim the development, composition,
making, use or any portion thereof, in each case to the extent that the claimed
subject matter of which was conceived or created by or under authority of GSK or
any of its Affiliates; and all related documentation. Without limiting the
foregoing, the Assigned Patents include, to the extent claiming the subject
matter described in the previous sentence: (i) all Patents related to KSP, any
Compound inhibiting KSP, or any KSP Product (including SB-992 or SB-921), and
(ii) all Patents which claim subject matter that is or was (A) identified as
reasonably necessary for the discovery, development, manufacture, use or sale of
any CK Compound, CK Target or CK Product (including any compound, target or
product that was a Compound, Development Compound, Collaboration Target, or
Licensed Product prior to the Amendment Effective Date), (B) used or applied by
or under authority of GSK or its Affiliate at least in part to any CK Compound,
CK Product or CK Target, each as contemplated in Section 1.32 of the Agreement,
or (iii) within the scope of Section 1.13 or 1.53 of the Agreement. The

 

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Assigned Patents existing as of the Amendment Effective Date include those
Patents set forth in Appendix IV attached hereto and incorporated herein.
Notwithstanding the foregoing, Assigned Patents shall not include any Patents
that claim CENP-E or any Compound, Development Compound or Licensed Product
being developed by GSK that inhibits CENP-E, including, without limitation,
GSK’s Development Compound, GSK-923295.
          (d) “CK Clinical Studies” shall mean clinical studies for a KSP
Product conducted by or on behalf of CK, including such non-clinical studies as
CK determines are [***] to support such clinical studies.
          (e) “Enhanced Indication” shall mean any indication, dosing schedule
or combination regimen for a KSP Product that (i) was evaluated in a Phase [***]
trial conducted by or on behalf of GSK prior to the Amendment Effective Date and
(ii) is further evaluated in connection with the conduct of the CK Clinical
Studies.
          (f) “Final Study Report” shall have the meaning ascribed in Appendix I
hereto.
          (g) “GSK Option” shall have the meaning set forth in Section 18 of
this Amendment.
          (h) “GSK-Ongoing Study” shall have the meaning set forth in Section
8(a) of this Amendment.
          (i) “GSK-Sponsored Studies” shall mean all clinical studies that have
been sponsored by GSK or any of its Affiliates in connection with the Agreement,
or otherwise in respect to SB-921 and/or SB-992, that were initiated by or under
authority of GSK or its Affiliates prior to the Amendment Effective Date.
          (j) “June 2006 Amendment” shall mean the letter amendment to the
Agreement, dated June 16, 2006, that was entered into by and between CK and GSK.
          (k) “KSP Product” shall mean any CK Product that includes a CK
Compound that meets the Compound Criteria for KSP (including any CK Product that
includes SB-921 or SB-992).
          (l) “[***]” shall mean any [***] that uses an inhibitor of a CK Target
for [***] applications, including [***].
          (m) “Optioned Product(s)” shall have the meaning set forth in Section
18(c) of this Amendment.
          (n) “September 2005 Amendment” shall mean that certain Amendment to
Collaboration and License Agreement, dated September 21, 2005 that was entered
into by and between CK and GSK.
          (o) “SB-921” shall mean the Development Compound designated by GSK as
SB-743921.
 

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          (p) “SB-921 Product” means a KSP Product incorporating SB-921.
          (q) “SB-992” shall mean the Development Compound designated by GSK
SB-715992 and also known as ispinesib.
          (r) “SB-992 Product” means a KSP Product incorporating SB-992.
          (s) “SB-992 [***]” shall have the meaning set forth in Section 11 of
this Amendment.
          (t) “Third Party-Sponsored Study(ies)” shall have the meaning set
forth in Section 8(e) of this Amendment.
     2. Designation of Mitotic Kinesin Targets as CK Targets. Notwithstanding
anything to the contrary in the Agreement, all Mitotic Kinesin Targets
(including all Mitotic Kinesin Targets previously designated as Collaboration
Targets, i.e., KSP, [***] and [***]) are hereby deemed, and shall be deemed, to
be CK Targets under the Agreement, with the sole exception of CENP-E. The
Mitotic Kinesin Targets (including previous Collaboration Targets) designated as
CK Targets as of the Amendment Effective Date are set forth in Appendix V of
this Amendment, attached hereto and incorporated herein. Except as expressly
provided to the contrary in this Amendment, the terms and conditions of the
Agreement shall apply to all CK Targets designated as such under this Section 2
in the same manner as if the Mitotic Kinesin Targets each became a CK Target
under Section 2.7 of the Agreement.
     3. Designation of CK Compounds. The Parties hereby designate, and CK shall
hereafter designate, all Compounds that meet the Compound Criteria with respect
to any CK Target as CK Compounds, including all such Compounds previously
designated as Development Compounds against such CK Targets (i.e., SB-921 and
SB-992) and including all Compounds that meet the requirements of Section 1.5(a)
of the Agreement.
     4. Collaboration Targets; CENP-E; Unselected Targets. The Mitotic Kinesin
Target CENP-E remains a Collaboration Target and a Lead Target under the
Agreement as of the Amendment Effective Date and shall be subject to all of the
terms and conditions of the Agreement and this Amendment, including those that
may cause CENP-E to become a CK Target. No Mitotic Kinesin Target shall at any
time be considered a Collaboration Target or Lead Target, except for CENP-E and,
if GSK exercises the GSK Option in accordance with this Amendment, KSP. No
target shall be considered an Unselected Target at any time.
5. Research Program.
          (a) Research Term. The terms of the June 2006 Amendment which provide
that the Research Term is extended only with regard to CENP-E shall be
interpreted to mean that the Research Term shall be extended until June 19, 2007
for all purposes under the Agreement, except that the scope of the ongoing
Research Program is and shall be restricted only to the Collaboration Target,
CENP-E, as more particularly set forth in this Amendment. The Research Term for
CENP-E shall be considered for all purposes under the Agreement to end on
June 19, 2007, unless further extended under Section 2.8 of the Agreement, but
in all cases subject to the terms and conditions of the Agreement and this
Amendment. Notwithstanding the foregoing, (i)
 

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the Exclusivity Period under Section 4.1.1 for Compounds, Development Compounds
and Licensed Products directed to CK Targets other than CENP-E shall end on
[***], subject to Section 24 below with regard to KSP and SB-992 and SB-921; and
(ii) the Exclusivity Period under Section 4.1.2 with respect to all Mitotic
Kinesin Targets other than KSP and CENP-E shall end on [***], subject to
Section 24 below.
          (b) Limited Scope. Notwithstanding the extension of the Research Term
for CENP-E as described in Section 5(a) of this Amendment, the Research Program
ended as of June 19, 2006 with respect to, and shall exclude, all Mitotic
Kinesin Targets, other than CENP-E. Notwithstanding anything to the contrary,
there shall be no extensions of the Research Program under the terms of the
Agreement, as amended by this Amendment, other than for CENP-E.
     6. Independent Development by CK. Notwithstanding anything else to the
contrary in the Agreement, CK shall have the exclusive right to control, at its
sole discretion and expense, all further research, development, manufacturing,
and commercialization of the CK Targets, CK Compounds and CK Products (including
KSP Products) (itself and through Third Parties) without further obligation to
GSK, except subject to (i) the GSK Option set forth in this Amendment and
(ii) the obligation to pay royalties to GSK pursuant to Section 4.7 of the
Agreement on CK Products, including KSP Products. Accordingly, all references in
the September 2005 Amendment to the CK Subfield, and any other limitations in
the Agreement on research, development, manufacture or commercialization by CK
(itself or through Third Parties) of CK Targets, CK Compounds and CK Products
are hereby terminated and deleted. Such research, development, manufacture and
commercialization by and under authority of CK shall not be considered part of,
and shall not be subject to the terms and conditions applicable to, the
collaboration under the Agreement, except pursuant to the GSK Option. For
purposes of this Section 6 and the other terms of the Agreement, the term “CK
Product” shall be deemed to include [***] that include a CK Compound.
     7. Joint Development Committee.
          (a) The JDC established pursuant to Section 2.1.1 of the
September 2005 Amendment is hereby dissolved. Sections 2.1.1 and 2.1.2 of the
September 2005 Amendment are hereby deleted from the Agreement, and shall have
no further force or effect, provided that CK shall provide quarterly updates
relating to SB-921 Products and SB-992 Products through the Project Team for
GSK-923295, or to another team of individuals designated by GSK with similar
functional responsibilities, unless and until the GSK Option expires.
          (b) If GSK exercises the GSK Option: (i) unless the JDC has previously
been established for CENP-E in accordance with the terms of Section 3.5 of the
Agreement, the Parties shall establish the JDC for the Optioned Products,
(ii) with respect to Optioned Products, the JDC shall have the rights,
responsibilities and obligations as set forth in Section 2.1.1 of the
September 2005 Amendment; (iii) [***] shall have the right to [***] on all
matters relating to any [***] for an Optioned Product or otherwise relating to
the [***] or [***] of any Optioned Product for any [***]; (iii) [***] shall have
the right to [***] on matters relating to the [***] or [***] of Optioned
Products for any [***]; and (iv) [***] shall have the right to [***] on matters
relating to the [***] or [***]of Optioned Products for any [***] other than
[***] or [***]. This
 

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Section 7(b) shall not modify the operation of Section 3.5 of the Agreement with
regard to CENP-E.
     8. GSK-Sponsored Studies; Third Party-Sponsored Studies.
          (a) GSK shall not [***], and represents and warrants that it has not
[***], any [***] in any study for SB-992 or SB-921 [***], including those
studies for SB-992 and SB-921 that were ongoing as of [***] (each, a
“GSK-Ongoing Study”). After the Amendment Effective Date, GSK shall keep CK
fully and promptly informed regarding the progress and results of the
GSK-Ongoing Studies. After the Amendment Effective Date, GSK shall provide CK
with copies of any [***] from [***] regarding any GSK-Ongoing Study promptly
upon receipt. GSK shall use [***] efforts to complete the GSK-Ongoing Studies
and the collection of data and Final Study Report for each such GSK-Ongoing
Study.
          (b) GSK shall continue to maintain the IND for SB-992 and SB-921
(i.e., IND [***] with an initial filing date of [***] for SB-992 and IND [***]
with an initial filing date of [***] for SB-921) until each such IND is
transferred to CK as set forth herein. GSK shall use [***] efforts to complete
and file the Annual Report for IND [***] in accordance with the timings as
required by law for filing of such Annual Report. After GSK files the Annual
Report for IND [***] due following the Amendment Effective Date, GSK shall
transfer IND [***] and IND [***] to CK. Prior to transfer of each IND, GSK shall
allow, and hereby authorizes, CK to cross reference such IND. Concurrent with
its [***] for IND [***] to [***], GSK shall provide [***] thereof to CK.
          (c) After the Amendment Effective Date, GSK agrees to complete the
Final Study Reports for the GSK-Ongoing Studies for SB-992 and SB-921 within
[***] ([***]) [***] following [***] for the relevant GSK-Ongoing Study. If all
data from the GSK-Ongoing Study for SB-921 has been collected by GSK and the
Final Study Report for such study completed prior to the date that GSK transfers
IND [***] to CK, GSK shall file the Final Study Report for such study with the
FDA. If such Final Study Report is not completed before the transfer of IND
[***], GSK shall complete the Final Study Report and submit it to CK for filing
with the FDA. GSK shall complete the Final Study Reports for the GSK-Ongoing
Studies for SB-992 and submit it to CK for filing with the FDA. Prior to
finalization of each Final Study Report for the GSK-Ongoing Studies, GSK shall
provide CK with [***] and provide CK [***] thereon; provided, however, that GSK
shall have [***] in finalizing any Final Study Report. After transfer of the
INDs for SB-992 and SB-921 to CK, CK shall have responsibility for such INDs,
shall file the Annual Report for IND [***] with the FDA and shall undertake and
fulfill all obligations imposed on holders of INDs under law with respect to IND
[***] and IND [***], including filing all reports that may be due in connection
with such INDs, other than as set forth above.
          (d) After the Amendment Effective Date, GSK shall complete and publish
manuscripts for GSK-Sponsored Studies, [***], [***] after the Amendment
Effective Date; provided, however, that GSK shall not publish any manuscript
until after CK has had [***] to review and comment on the manuscript. GSK shall
[***] CK’s [***] with respect thereto, consistent with prior practice between
GSK and CK regarding publication of manuscripts for SB-992 and SB-921.
 

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          (e) After the Amendment Effective Date, GSK and its Affiliates shall
not conduct or have conducted under their respective authority any clinical
activities with regard to SB-992 or SB-921, other than GSK’s activities in
accordance with the foregoing for SB-992 and SB-921 under the GSK-Ongoing
Studies.
           (f) After the Amendment Effective Date, CK shall be responsible, at
its expense, for providing any materials or services (e.g., [***], [***], [***],
[***] or [***], etc.) to Third Parties to the extent required by the terms of
any Third Party Agreements that GSK assigns to CK pursuant to this Amendment, in
each case to the extent necessary to enable such Third Parties to complete their
studies with respect to SB-992 or SB-921, as applicable (the “Third
Party-Sponsored Studies”). For clarity, CK does not assume any responsibility,
liability, or other Losses arising out of any activities or obligations in
connection with such Third Party-Sponsored Studies or Third Party Agreements to
the extent that the activities occurred, or if the obligation matured, prior to
the time at which the particular agreement is assigned to CK, including Losses
arising out of any failure to comply with any Third Party Agreements that
occurred prior to the date of assignment of the particular Third Party Agreement
to CK, except to the extent CK would have had responsibility therefor prior to
such assignment. All such Losses shall be within the scope of GSK’s obligation
to indemnify, defend and hold harmless under Section 10.2.1 of the Agreement.
Similarly, to the extent of CK’s obligation to indemnify under Section 10.2.2 of
the Agreement, CK shall remain obligated to indemnify GSK with respect to
activities under the Third Party Agreements that occur after the Third Party
Agreement has been assigned to CK after the Amendment Effective Date. CK shall
have no responsibility for any materials or services which GSK was required, but
failed, to provide prior to the Amendment Effective Date under such Third Party
Agreements. GSK shall retain responsibility for providing such materials and
services.
     9. Transition and Information Exchange.
          (a) Section 4.4.2 of the Agreement shall continue to apply with
respect to all CK Targets, CK Compounds and CK Products, including the KSP
Products. Without limiting the foregoing, as set forth in Section 4.4.2 of the
Agreement, commencing upon the Amendment Effective Date with respect to all CK
Targets, CK Compounds and CK Products designated as such under this Amendment,
GSK shall cooperate fully with CK to provide CK with all Licensed Technology and
Information to which CK has a right or license under the Agreement and which is
necessary or useful for CK to further research, develop, produce or otherwise
exploit any such CK Target, CK Compound, or CK Product. Such cooperation shall
include (i) the reasonable disclosure of all such Information, to the extent
such Information is not within the possession or control of CK (including,
without limitation, [***] (including with respect to the [***])); (ii) transfer
of [***] and [***] of [***] and [***] (to the extent such [***] were [***], or
[***], by GSK with respect to the CK Compound or CK Product and excluding the
GSK [***] and [***] with other products); (iii) [***] (including transfer of the
[***] for the [***] in accordance with Section [***] of this Amendment);
(iv) transfer of [***], and [***] such materials were [***] by GSK with respect
to CK Compounds, CK Products or CK Targets; and (v) to the extent reasonably
transferable and specifically developed or used in connection with any CK
Product, CK Compound or CK Target, transfer of [***], all to the extent that
such material is not in the possession of CK, and such other disclosures and
transfers as are reasonably necessary or useful
 

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for CK to exercise its full rights with respect to such CK Product, CK Target or
CK Compound granted to CK under the Agreement. In particular and without
limiting the foregoing, GSK shall provide to CK the Information, materials and
assistance described on Appendix I, attached hereto and incorporated herein,
with respect to SB-992 and SB-921, to the extent such Information and materials
(i) were not previously supplied to CK for SB-921 under the September 2005
Amendment, (ii) are not otherwise in the current possession of CK, and
(iii) other than the Final Study Reports for the GSK-Ongoing Studies for SB-992
and SB-921, exist at the time of the Amendment Effective Date and are in GSK’s
possession or control. All Information described in this Section 9(a) shall be
delivered to CK after the Amendment Effective Date within [***] ([***]) [***]
after CK’s written request, except to the extent that GSK has obtained CK’s
written agreement to a longer period of time when delivery is not possible
within such [***] ([***]) [***] period, such agreement not to be unreasonably
withheld. Except as set forth in Section 8 of this Amendment, nothing in this
Section or this Amendment shall obligate GSK to update or complete materials
provided to CK under this Amendment.
          (b) Without limiting the foregoing, GSK shall also provide CK with
such assistance as CK reasonably requests from time to time to assist CK in
[***] and [***] the Information and materials provided by GSK.
          (c) In accordance with Section 4.4.2 of the Agreement, CK shall [***]
GSK’s [***] with respect to all activities, materials and assistance provided by
GSK to CK under Section 4.4.2 of the Agreement and this Section 9. GSK shall
provide [***] to CK of such [***] after they are [***], which CK shall [***]
within [***] of receipt of such [***] from GSK.
     10. Generic and Brand Names. GSK shall transfer sponsorship and ownership
to CK of all of GSK’s generic names and brand names for SB-992 and SB-921,
including all goodwill associated therewith, promptly after the Amendment
Effective Date, excluding GSK’s general corporate trade marks, trade dress and
logo used for its products generally. CK shall have the right to use the
numerical compound identifier originally designated by GSK for SB-992 and
SB-921, that is, SB-715992 and SB-743921, for any CK Product.
 

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     11. [***] of SB-992.
          (a) GSK shall provide to CK, at GSK’s expense, the [***] of SB-992
[***] and [***] in GSK’s [***], including [***], as of the [***], excluding any
[***] of SB-992 [***] by GSK for any [***] for SB-992 (the “SB-992 [***]”). GSK
represents and warrants that, to its knowledge, the SB-992 [***] of [***] is
[***], the SB-992 [***] of [***] is [***] in [***], and the SB-992 [***] of
[***] is [***]. GSK represents and warrants, to its knowledge, that the SB-992
[***] also includes [***] of [***] which shall be [***] by GSK promptly
following the Amendment Effective Date. GSK shall [***] the SB-992 [***] to CK’s
[***] as soon as practicable following the Amendment Effective Date, but in no
event later than [***] ([***]) [***] after the Amendment Effective Date.
          (b) CK shall be responsible, at its cost, for [***] and [***] (itself
or through [***]) CK’s requirements for SB-992 [***] and [***] in [***] of the
SB-992 [***] provided by GSK. GSK shall provide CK with such assistance,
documentation, and Information as is reasonably requested by CK in connection
with [***] the SB-992 [***] to CK and CK or [***] of SB-992 [***] and [***],
including documentation, such as, but not limited to, [***]. CK shall be
responsible, at its expense: (i) for any [***] of SB-992 [***] that [***],
including [***] to GSK for [***] with respect to [***] under Section [***] of
this Amendment to the extent set forth in Section 4.4.2 of the Agreement; and
(ii) for [***] and [***] of [***] SB-992 [***] that have been [***] to CK under
this Section 11.
          (c) To the extent Losses arise out of any [***] of the SB-992 [***] to
[***] with [***], other [***] or [***], any [***], or other [***] to the [***],
or [***] of the SB-992 [***] for [***] in [***] shall be deemed to be within the
scope of GSK’s obligation to indemnify CK under Section 10.2.1 of the Agreement.
CK shall be responsible for any Losses arising out of the [***] by CK or [***]
of any SB-992 [***] and [***] in [***] of the SB-992 [***] and shall have no
right to indemnity from GSK for such Losses under Section 10.2.1 of the
Agreement.
     12. [***] Studies. Subject to [***] by CK in accordance with Section 4.4.2
of the Agreement, GSK shall [***] studies for [***] of [***] and [***] of SB-921
and SB-992 and shall [***] to CK all [***] and [***] from time to time as such
[***] become available and as CK otherwise requests.
 

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     13. Third Party Agreements.
          (a) GSK represents and warrants to CK, as of the Amendment Effective
Date and to its knowledge, that it has granted no right or license or interest
to any Third Party under the Assigned Patents or other intellectual property
rights of GSK prior to the Amendment Effective Date that would conflict or
interfere with CK’s ability to develop and commercialize SB-992 or SB-921 after
the Amendment Effective Date.
          (b) Promptly after the Amendment Effective Date, to the extent it has
not already done so prior to such date and to the extent it is not prohibited by
the terms of the agreement from doing so, GSK shall endeavor to provide CK with
copies of [***] agreements (or copies of agreement templates) between GSK and
Third Parties under which activities solely for SB-992 or SB-921 are ongoing or
have occurred as of the Amendment Effective Date, including GSK’s agreement with
the National Cancer Institute (each, a “Third Party Agreement”). The list of
such Third Party Agreements which have been provided by GSK as of the Amendment
Effective Date is set forth in Appendix VI, attached hereto and incorporated
herein.
          (c) Promptly after the Amendment Effective Date, GSK shall assign to
CK all Third Party Agreements relating solely to SB-992 or SB-921 that have not
terminated as of the Amendment Effective Date to the extent CK requests and GSK
is not prohibited by the terms of the particular Third Party Agreement, or
applicable law, from doing so. GSK shall have no obligation to disclose or to
assign to CK any Third Party Agreement pursuant to which activities for GSK
products other than SB-992 or SB-921 are to be or have been performed. GSK shall
further be under no obligation to obtain the consent of any Third Party to the
assignment of any Third Party Agreement which requires consent to assign, except
that GSK shall use [***] efforts, and cooperate, as CK requests, to seek and
obtain any consent, substitution, approval, and amendment required to transfer,
or to novate, as desired by CK, any and all Third Party Agreements and rights
and obligations thereunder. Without limiting the foregoing, GSK shall use [***]
efforts to promptly [***] with the [***] relating to SB-992 [***] and [***] the
[***] to permit GSK to assign such agreement to CK.
          (d) With respect to each Third Party Agreement that is not assigned or
otherwise transferred to CK under Section 11(c) or that has not already
terminated (“Unassigned Agreements”), GSK shall terminate the Third Party
Agreement as CK requests or allow such Unassigned Agreement to terminate of its
own accord in its entirety if the Unassigned Agreement relates solely to SB-992
or SB-921. If the Unassigned Agreement relates to GSK products other than SB-992
or SB-921, GSK shall have no obligation to terminate the Unassigned Agreement.
Alternatively or additionally, to the extent not prohibited by applicable law,
GSK shall use [***] efforts to hold such Unassigned Agreements, as of and from
the Amendment Effective Date, in trust for CK and all covenants,
responsibilities, and obligations thereunder shall be performed, and all rights
and licenses thereunder shall be exercised, solely for the benefit of CK. GSK
shall take or cause to be taken such actions in GSK’s name or otherwise as CK
may reasonably request so as to provide CK with the benefits of the Unassigned
Agreements to the extent they relate to SB-992 or SB-921, including, without
limitation,
 

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instructing the Third Party to the Unassigned Agreement to perform all of its
obligations solely for the benefit of CK with respect to any obligations
pertaining to SB-992 or SB-921.
          (e) Commencing as of the Amendment Effective Date, all obligations
under the Third Party Agreements (except for the Unassigned Agreements) to
assign, license or otherwise transfer to GSK or its Affiliate any right, title
or interest in or to any Patent or other intellectual property rights relating
to SB-992 or SB-921 shall be deemed to be obligations to assign, license and
otherwise transfer such right, title or interest to CK. With regard to each
Unassigned Agreement, unless and until the Unassigned Agreement is transferred
to CK or terminated, GSK and its Affiliates shall notify CK of any assignment of
Patents or other intellectual property relating to SB-992 or SB-921 to GSK or
its Affiliate, and GSK and the Affiliate shall assign to CK, as CK requests, all
right, title, and interest in and to all Patents and other intellectual property
relating to SB-992 or SB-921 that is assigned to GSK or the Affiliate under the
Unassigned Agreement. All Information disclosed to GSK or its Affiliate under
any Third Party Agreement relating to a SB-992 or SB-921 is hereby deemed to be
the Confidential Information of CK under the Agreement. Without limiting the
foregoing, all Patents relating to SB-992 or SB-921 to which any right, title or
interest has been or is assigned to GSK under or as a result of any Third Party
Agreement, including any joint interest with CK, are hereby deemed to be within
the Assigned Patents that are assigned to CK under Section 14 of this Amendment.
Additionally, GSK hereby authorizes, and shall authorize as CK requests, each
Third Party to a Third Party Agreement to disclose to CK all confidential
information relating to SB-992 or SB-921 that may be, or may have been,
disclosed or produced under the Third Party Agreements. All Information and
technology related to SB-992 or SB-921 that CK receives from Third Parties in
connection with the Third Party Agreements that is not owned by CK in accordance
with the foregoing shall be deemed licensed to CK under the Agreement to the
same extent as each of the Collaboration Technology and Post-Collaboration
Technology.
          (f) Neither the foregoing, nor any assignment of a Third Party
Agreement to CK, shall transfer to CK responsibility or liability for any
breaches, obligations or Losses arising out of any activities that occurred, or
obligations that accrued or matured, prior to the date on which the particular
Third Party Agreement was assigned to CK after the Amendment Effective Date.
From and after the date of assignment of any Third Party Agreement to CK, CK
shall be solely responsible for all obligations under such Third Party Agreement
after the date of assignment and shall have all responsibility and liability for
any breaches, obligations and Losses to the extent arising out of any activities
occurring under an assigned Third Party Agreement after the date of its
assignment to CK. CK shall indemnify GSK for any Losses to the extent arising
out of such Third Party Agreements from and after the date assigned in
accordance with Section 10.2.2.
     14. Assigned Patents.
          (a) GSK hereby assigns, and shall assign promptly, to CK all Assigned
Patents. CK shall [***] for its [***] that [***] to effect such assignment,
including any [***] of [***], within [***] ([***]) [***] of [***] of an [***].
Upon such assignment, CK or its designee shall control in their sole discretion,
the Prosecution and Maintenance and enforcement of the Assigned Patents, and all
other Patents based upon or that claim priority to an Assigned Patent, at its
sole cost and expense. For a period of [***] ([***]) [***] after the Amendment
 

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Effective Date, GSK, at GSK’s cost, shall provide reasonable assistance to CK
with respect to the Prosecution and Maintenance of all such Assigned Patents.
          (b) If GSK exercises the GSK Option, CK shall license to GSK, in
accordance with Section 5.2 of the Agreement, all Assigned Patents for Optioned
Products (including Assigned Patents claiming KSP for purposes thereof), in
addition to the other licenses granted by CK to GSK under Section 5.2.1 of the
Agreement, on exercise of the GSK Option, and GSK and CK shall cooperate with
respect to the Prosecution and Maintenance and enforcement of all such Assigned
Patents in accordance with the provisions in Article 8 of the Agreement. As
provided in Section 19, if GSK exercises the GSK Option, GSK shall reimburse CK
[***]% of the [***] Patent Costs of the Assigned Patents for the Optioned
Product(s), as incurred by CK after the Amendment Effective Date, subject to the
cap set forth in Section 19(a)(ii). In addition, GSK shall reimburse CK [***]
percent ([***]%) of the costs of [***] related to the Optioned Products as
incurred by CK after the Amendment Effective Date, subject to the cap set forth
in Section 19(a)(ii).
          (c) If, after the Amendment Effective Date and prior to expiration of
GSK Option, CK intends to [***] or [***], CK shall notify GSK of such intention
at least [***] ([***]) [***] prior to the date upon which [***] or [***] (or
such shorter period as [***] ([***]) [***]), and GSK shall thereupon have the
right, but not the obligation, to [***] of such [***] at its own expense with
[***] of its [***]. At GSK’s request, CK shall [***], at GSK’s expense, any
[***] that CK [***] or [***] without [***]. For clarity, all [***] to GSK shall
[***] to CK under the Agreement, and subject to the [***] to CK, to the same
extent [***] and [***] to CK under each of the Collaboration Technology and
Post-Collaboration Technology.
     15. [***] to GSK. Subject to the terms and conditions of the Agreement, CK
[***] to GSK a [***] and [***] to permit GSK to [***] and any [***] by GSK [***]
thereto for the [***], and [***] and/or [***] shall not include any [***] and/or
[***]. All [***] and [***] under this Section 15 shall [***], and have no [***]
or [***], upon [***] or [***] of the [***].
     16. Joint Commercialization Committee. The Joint Commercialization
Committee’s oversight and responsibility under the Agreement shall be limited to
(i) Licensed Products that contain a Development Compound that meets the
Compound Criteria for CENP-E and (ii) if GSK has exercised the GSK Option in
accordance with this Agreement, the Optioned Products. Such oversight and
responsibility shall apply only during those periods of time in which CENP-E or
KSP, as the case may be, is a Collaboration Target under the Agreement.
     17. Adverse Event Reporting. Promptly following the Amendment Effective
Date, the Parties shall execute a “Safety Data Exchange Agreement” to coordinate
the submission of serious adverse event (SAE) reports and routine adverse event
(AE) reports to local regulatory authorities to the extent applicable for SB-992
and SB-921 and as required by applicable law. In addition, promptly after the
Amendment Effective Date, GSK shall provide [***] for SB-992 and SB-921 to CK.
 

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     18. GSK Option.
          (a) GSK hereby waives all rights under Section 4.5 of the Agreement
and all of CK’s obligations under Section 4.6 of the Agreement. In particular,
Sections 4.5 and 4.6 of the Agreement are hereby terminated and shall have no
further force or effect. In lieu of such rights and obligations, and replacing
the GSK [***] Option set forth in Section 2.3 of the September 2005 Amendment,
CK hereby grants to GSK an option to reinstate SB-992 Products and/or SB-921
Products as Licensed Products under the Agreement as follows (the “GSK Option”):
          (b) CK shall notify GSK in writing of [***] (for [***], substantially
in accordance with the [***] set forth in Appendix VII, attached hereto and
incorporated herein, and for which [***] in accordance with the applicable
[***]) from the [***] for [***] under the CK Clinical Studies (“[***] Notice”).
CK shall include with the [***] Notice a copy of [***] for the [***] on [***] as
part of the CK Clinical Studies. If CK does not [***] for [***] conducted under
the CK Clinical Studies, CK shall notify GSK in writing of the [***] (for [***]
and for which [***]) from the [***] for [***] under the CK Clinical Studies, and
such notice shall be a [***] Notice pursuant to this Section 18(b). Upon receipt
of the [***] Notice, GSK shall have the option to conduct all further
development (including Later Stage Development) and commercialization of SB-992
Products and/or SB-921 Products for all indications, subject to CK’s Co-Funding
Option in Section 3.4 of the Agreement and CK’s Co-Promotion Option in
Section 7.4 of the Agreement. Following delivery of a [***] Notice to GSK, CK
shall provide such information and data owned by CK that has been generated in
or for such [***] and all other data from CK’s [***]of such KSP Product, to the
extent such information and data has not been previously provided to GSK, as GSK
may reasonably request to enable GSK to make an informed decision whether to
exercise the GSK Option. Nothing in this Section 18 shall be construed to
require CK to perform, continue or complete any studies or analysis.
          (c) GSK shall have [***] ([***]) [***] from receipt by GSK of the
[***] Notice to exercise the GSK Option or to notify CK that it does not wish to
exercise the GSK Option (“GSK Option Period”). To exercise the GSK Option, GSK
shall provide, at any time prior to the expiration of the GSK Option Period,
written notice to CK specifying that GSK agrees to conduct all further
development (including Later Stage Development) and commercialization of:
(i) all SB-992 Products only; (ii) all SB-921 Products only; or (iii) all SB-992
Products and SB-921 Products. Such notice shall specify whether GSK is
exercising the GSK Option with respect to SB-992 Products only, SB-921 Products
only, or both SB-992 Products and SB-921 Products, and the KSP Products so
specified shall be deemed “Optioned Products”. Such development and
commercialization shall be conducted in accordance with the terms and conditions
of the Agreement that are applicable to Collaboration Targets, Development
Compounds and Licensed Products, subject to the terms of this Amendment.
          (d) If GSK elects not, or otherwise fails, to exercise the GSK Option
during the GSK Option Period, then the GSK Option shall expire with respect to
all KSP Products, effective on the earlier of: (i) the date of GSK’s notice to
CK that it will not exercise the GSK Option; and (ii) the last day of the GSK
Option Period. Prior to receipt of a [***] Notice, GSK shall have the right to
notify CK that it wishes to exercise the GSK Option or to notify CK that it has
declined its rights under the GSK Option. If GSK so notifies CK that it has
declined its
 

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rights under the GSK Option, the GSK Option shall expire on the date of such
notification to CK. If CK, for any reason, fails to provide GSK with a [***]
Notice in accordance with Section 18(b), the GSK Option shall expire on [***],
if it has not earlier expired under the terms of this Section.
          (e) Notwithstanding anything to the contrary, the GSK Option shall not
be triggered by any [***], or [***], [***] concerning the use of any inhibitor
of KSP in [***] for [***] applications, including [***]. [***] that include an
Optioned Product that inhibits KSP for [***] applications, including [***],
shall be considered included in the Collaboration, however, if GSK otherwise
exercises the GSK Option in accordance with the terms of this Amendment.
          (f) For as long as the GSK Option remains in effect, CK shall use
[***] efforts to develop SB-992 Products and SB-921 Products, subject to the
following: CK shall have the right to [***] or [***] or [***] or [***], and CK’s
decision to do so shall not be [***] under this Section 18(f) or otherwise under
this Amendment or the Agreement.
     19. Effect of Exercise of GSK Option.
          (a) If GSK exercises the GSK Option during the GSK Option Period with
regard to one or both of SB-992 Products and SB-921 Products, then:
               (i) the Optioned Product(s) shall become Licensed Products,
subject to all terms of the Agreement, but with the modified economics described
in this Amendment;
               (ii) GSK shall reimburse CK for: (a) all [***] costs incurred by
CK in connection with the development of the Optioned Product(s), other than
[***] costs (together with an additional [***] percent ([***]%) premium of such
costs); (b) any [***] costs incurred by CK for the Optioned Product(s); (c) the
[***] Patent Costs for the Assigned Patents [***] KSP and the Optioned
Product(s); and (d) [***] percent ([***]%) of the costs of [***] relating to the
Optioned Products, all to the extent not previously reimbursed by GSK and each
as incurred by CK after the Amendment Effective Date. The total of the amounts
in (a) and (b) shall be capped at a maximum of US$[***], and the total of the
amounts in (c) and (d) shall be capped at US$[***]. The cap on the amounts in
(a) and (b) shall not apply to the [***] percent ([***]%) premium referenced in
(a). The costs which GSK reimburses shall include, without limitation, those
costs set forth as [***] in Section [***] of the Agreement. In no case will the
total amount to be reimbursed by GSK under this Section exceed $[***];
               (iii) GSK shall pay to CK, with respect to such Licensed
Products, the milestones described on Appendix II of this Amendment, attached
hereto and incorporated herein, and royalties described in Appendix III of this
Amendment, attached hereto and incorporated herein, and Sections 3.2 and 3.3 of
the September 2005 Amendment are hereby deleted in their entirety; and
               (iv) the Parties shall form the JDC (unless already formed, as
described in Section 7 above) for the Optioned Products.
                    In addition to the above effects, CK shall have the right to
continue any ongoing CK Clinical Studies for any Optioned Products, and GSK
shall reimburse CK for
 

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[***]% of the [***] costs incurred by CK in connection with such studies after
the date of GSK’s exercise of the GSK Option.
          (b) For clarity, on exercise of the GSK Option, KSP shall be deemed a
Collaboration Target, subject to all applicable provisions of the Agreement,
including all diligence and payment obligations, subject to Sections 19(d) and
24(d).
          (c) If GSK exercises the GSK Option with respect to SB-992 Products
only or SB-921 Products only, as provided in Section 18, (i) GSK shall have no
right to develop and commercialize any KSP Products which are not Optioned
Products, (ii) GSK shall have no obligation to reimburse CK’s expenses under
this Section 19 for any KSP Products which are not Optioned Products, and (iii)
without limiting anything herein or in the Agreement, CK shall have all rights
to develop and commercialize any KSP Products which are not Optioned Products,
subject to payment to GSK of the royalty under Section 20 of this Amendment on
sales of such KSP Products.
          (d) If GSK exercises the GSK Option with respect to both SB-992
Products and SB-921 Products and reimburses CK in accordance with
Section 19(a)(ii) above, GSK shall have the right to [***] or [***], and [***]
or [***], and GSK’s decision to do so shall not be [***] under the Agreement or
this Amendment.
          (e) If GSK exercises the GSK Option, prior to any payment to CK under
Section 19(a)(ii) above, GSK shall have the right to audit the costs incurred by
CK for the Optioned Products, but not with respect any other KSP Products.
 

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     20. Other Royalties and Milestones. The terms in the Agreement requiring
GSK to pay royalties and milestones with regard to Licensed Products directed
toward CENP-E shall continue to apply in accordance with their terms.
Section 4.7 of the Agreement requiring CK to pay royalties to GSK on sales of CK
Products shall continue to apply in accordance with its terms. GSK and CK agree
that, if GSK does not exercise the GSK Option with regard to a KSP Product, the
royalty payable by CK to GSK under Section 4.7.1 for any CK Product
incorporating SB-992 shall be [***]% and for any CK Product incorporating SB-921
shall be [***]%.
     21. Development Plans for KSP Products. The JDC shall generate and approve
a Development Plan for the Optioned Products within [***] ([***]) [***] of GSK’s
exercise of the GSK Option.
     22. CK Co-Funding Option. Upon and after GSK’s exercise of the GSK Option
in accordance with this Amendment, all Optioned Products shall be subject to the
Co-Funding Option under Section 3.4 of the Agreement, and CK shall have the
right to exercise the Co-Funding Option with respect to each Optioned Product
pursuant to and in accordance with the terms set forth therein except that, for
each such Optioned Product, CK shall have the right to exercise the Co-Funding
Option by providing written notice thereof to GSK anytime prior to the end of
the [***]-[***] period following the JDC’s approval of the Development Plan for
such Optioned Product as described in Section 21 above.
     23. Failure to Exercise GSK Option. If GSK elects not, or otherwise fails,
to exercise the GSK Option with respect to a KSP Product or if CK fails to
provide a [***] Notice in accordance with Section 18(b) above, then (i) GSK
shall have no rights or obligations with respect to the development or
commercialization of such KSP Product, and (ii) CK’s exclusive rights under
Section 6 of this Amendment, at its sole discretion and expense, to conduct all
further research, development, manufacturing and commercialization of any such
KSP Product (itself and through Third Parties) without further obligation to
GSK, other than payment of the applicable royalties pursuant to Section 20 above
and Section 4.7 of the Agreement shall remain in effect.
     24. Exclusivity.
          (a) After the Amendment Effective Date, Section 4.1.1 and
Section 4.1.2 of the Agreement shall apply only to: (i) CK Targets other than
KSP; (ii) CK Products directed to CK Targets other than KSP; and (iii) CENP-E
and Compounds, Development Compounds and Licensed Products directed to CENP-E.
Section 4.1.3 shall continue in full force and effect.
          (b) For as long as the GSK Option is in effect and subject to the
grant-back license to GSK in Section 15 of this Amendment, neither GSK nor its
Affiliates shall:
               (i) conduct any research or development regarding KSP or any
inhibitor thereof or any chemical or biological entity directed thereto; or
               (ii) make, have made, use, sell, offer to sell, import or
otherwise commercialize any products inhibiting the biological activity of KSP,
and shall not authorize,
 

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fund or assist any other party in undertaking any activity described in
subclause (b)(i) or (ii) of this Section 24.
          (c) If GSK declines or otherwise fails to exercise the GSK Option, for
a period of [***] ([***]) [***] after expiration of the GSK Option in accordance
with Section 18(d), neither GSK nor its Affiliates shall [***]; provided,
however, if CK [***] or [***], [***] shall not be considered for purposes of the
[***] restriction above; and further provided, that such restriction shall not
apply if CK (i) [***] or (ii) [***] (except in connection with the [***],
whether by [***] or otherwise).
          (d) Extensions under Section 4.2.2 (excluding 4.2.2(e)) of the
Agreement shall be available only based upon the Collaboration Target CENP-E,
and the restrictions imposed on CK in Section 4.2.3 of the Agreement shall be
limited to CENP-E, including in the event KSP is deemed a Collaboration Target
based on exercise of the GSK Option.
          (e) Sections 4.2.1 and 4.3 of the Agreement shall continue to apply in
accordance with their terms, un-amended, only with respect to CENP-E and no
other CK Target, including KSP.
     25. Deletion of [***] and [***] Provisions. All provisions relating to
[***] and [***], including in its entirety Section 2.6.4 of the Agreement, are
hereby deleted from the Agreement and shall have no further force or effect,
except the terms in Section 9.5 of the Agreement which indicate that CK’s
disclosure is not restricted in connection with activities pertaining to [***]
or [***] and Section 4.7.2 of the Agreement.
     26. Termination of Other Terms. Sections 2.7, 2.8.2, 3.1.1, 3.1.2,
4.2.2(e), 4.5, 4.6 and the last sentence in Section 1.8 of the Agreement are
hereby deleted in their entirety, and shall have no further force or effect.
Additionally, except with respect to CENP-E, CK and GSK shall have no further
obligations under Section 2.1(b) of the Agreement. CK shall have no further
obligation or responsibility under Sections 9.4 and 12.1.2 of the Agreement,
except that Sections 9.4 and 12.1.2 of the Agreement shall apply to CK with
regard to: (i) Development Compounds and Licensed Products that are directed
toward CENP-E; (ii) Optioned Products for so long as such Optioned Products
remain Licensed Products; (iii) to the extent set forth in Section 8(d) of this
Amendment; and (iv) with respect to any publication or press release which
includes information about the GSK Ongoing Studies for SB-992 or SB-921.
     27. Consequences of Termination . Subject to the changes made by this
Amendment, the Agreement shall continue to govern the consequences of
termination of the Agreement in its entirety and on a Licensed
Product-by-Licensed Product basis.
     28. Other Provisions of Agreement Continuing. Except as expressly amended
by this Amendment, all other terms and conditions of the Agreement shall
continue in full force and effect. The September 2005 Amendment shall continue
in full force and effect, except to the extent provisions of the September 2005
Amendment are expressly deleted or supplanted by this Amendment. In particular,
Section 2.8 of the September 2005 Amendment shall continue in full force and
effect.
 

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     29. Further Assurances. On and after the Amendment Effective Date, upon the
reasonable request of CK, GSK shall use [***] efforts to prepare, execute and
deliver such other and further agreements, instruments and certificates as may
be reasonably necessary or appropriate in order to effectuate the purposes and
intent of this Amendment and to consummate the transactions contemplated hereby.
GSK acknowledges that such actions may include, without limitation, executing
instruments, conveyances, declarations, oaths and the like, for Assigned Patents
and other intellectual property which is being transferred to CK pursuant to
this Amendment.
     30. Article and Section Headings, Language and Construction. The Section
headings contained in this Amendment are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Amendment. The words
“hereof,” “herein” and “hereunder” and other words of similar import refer to
this Amendment as a whole and not to any subdivision contained in this
Amendment. The words “include” and “including” when used herein are not
exclusive and mean “include, without limitation” and “including, without
limitation,” respectively. This Amendment has been negotiated by the Parties and
their respective counsel. Accordingly, this Amendment will be interpreted fairly
in accordance with its terms and without any strict construction in favor of or
against either Party.
     31. Miscellaneous. Articles and Sections 9, 10.1, 12.1, 12.4, 12.6, 12.7,
12.8, 12.9, 12.10, 12.11, 12.12 and 12.13 of the Agreement, and Section 4.1 of
the September 2005 Amendment, shall apply to this Amendment in the same manner
as they apply to the Agreement or the September 2005 Amendment, as the case may
be, and in each case as specifically modified by this Amendment. For clarity,
Section 12.10 of the Agreement shall be considered to refer to the Agreement, as
amended by this Amendment. Each Party shall have the right to assign this
Amendment to an entity to which the Agreement is assigned in accordance with its
terms. All transfers in violation of the foregoing shall be void. Neither Party
relied upon any representations or warranties by the other in deciding whether
or not to enter into this Amendment.
[INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the Parties have executed this Amendment in duplicate
originals by their duly authorized representatives as of the date and year first
above written.

                  Cytokinetics, Inc.       Glaxo Group Limited,             a
GlaxoSmithKline corporation
 
               
By:
  /s/ Robert I. Blum       By:   /s/ Paul Williamson
 
               
 
               

Name:
 

Robert I. Blum        Name:   Paul Williamson 
For and on behalf of
Edinburgh Pharmaceutical Industries Limited
 
               
 
               
Title:
  President        Title:   Corporate Director 
 
               
 
               
Date:
  11/22/2006        Date:   21 November 2006
 
               

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APPENDIX I
INFORMATION, MATERIALS AND ASSISTANCE

•   [***];   •   [***];   •   [***];   •   [***];   •   [***];   •   [***]
(each, a “Final Study Report”). Each Final Study Report shall include [***];   •
  [***];   •   [***]; and   •   [***].

 

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APPENDIX II
MILESTONES FOR OPTIONED PRODUCTS

                                                                      Additional
  Enhanced                             Indication   Indication MILESTONE  
[***]#   [***]#   [***]   Amount   Amount
1. [***]
  $ [***]       [***]       [***]       [***]       [***]  
2. [***]
  $ [***]       [***]       [***]       [***]       [***]  
3. [***]
  $ [***] *     [***]     $ [***] ***   $ [***]       [***]  
4. [***]
  $ [***] *     [***]     $ [***] ***   $ [***]     $ [***]  
5. [***]
  $ [***] *     [***]     $ [***] ***   $ [***]     $ [***]  
6. [***]
  $ [***] *   $ [***] **   $ [***] ***   $ [***]     $ [***]  
7. [***]
  $ [***] *   $ [***] **   $ [***] ***   $ [***]     $ [***]  

Development Milestones
     # For clarity, each of “[***] ,” “[***]” and “[***]” include any Licensed
Product (including any Optioned Product whether for an Additional Indication,
Enhanced Indication or otherwise).
     *  For each Optioned Product, if such Optioned Product is [***] to achieve
any one of Development Milestones 3 – 7 (each, as described in the table above)
and:
     (i) if such Optioned Product is for an Additional Indication, then GSK
shall pay to CK the corresponding amounts set forth in the column “[***]” and
the column “Additional Indication Amount” in the table above; and
     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall
pay to CK the corresponding amounts set forth in the column “[***]” and the
column “Enhanced Indication Amount” in the table above.
     ** For each Optioned Product, if such Optioned Product is [***] to achieve
any one of Development Milestones 3 – 7 (i.e., it is [***]to achieve such
Development Milestone) and:
     (i) if such Optioned Product is for an Additional Indication, then GSK
shall pay to CK the corresponding amounts set forth in the column “[***]” and
the column “Additional Indication Amount” in the table above; and
     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall
pay to CK the corresponding amounts set forth in the column “[***]” and the
column “Enhanced Indication Amount” in the table above.
     *** For each Optioned Product, if such Optioned Product is [***] to achieve
any one of Development Milestones 3 – 7 and:
 

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     (i) if such Optioned Product is for an Additional Indication, then GSK
shall pay to CK the corresponding amounts set forth in the column “[***]” and
the column “Additional Indication Amount” in the table above; and
     (ii) if such Optioned Product is for an Enhanced Indication, then GSK shall
pay to CK the corresponding amounts set forth in the column “[***]” and the
column “Enhanced Indication Amount” in the table above.
     **** No Development Milestones are payable on any Optioned Product for
which GSK has not exercised the GSK Option.
 

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Appendix III
Royalties For Optioned Products
     For each Optioned Product that is not a Co-Funded Product:

      Total Annual Net Sales   Royalty
Less than $ [***]
  [***]%
Between $ [***] and $ [***]
  [***]%
Greater than $ [***]
  [***]%

     For each Optioned Product that is a Co-Funded Product, if CK elected to
fund the Later Stage Development Costs therefor at a CK Percentage of
[***]percent( [***] %):

      Total Annual Net Sales   Royalty
Less than $ [***]
  [***]%
Between $ [***] and $ [***]
  [***]%
Greater than $ [***]
  [***]%

     For each Optioned Product that is a Co-Funded Product, if CK elected to
fund the Later Stage Development Costs therefor at a CK Percentage of
[***]percent( [***] %):

      Total Annual Net Sales   Royalty
Less than $ [***]
  [***]%
Between $ [***] and $ [***]
  [***]%
Greater than $ [***]
  [***]%

 

*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

22

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APPENDIX IV*
ASSIGNED PATENTS
     *Tentative Draft; To be confirmed by CK patent counsel and GSK patent
counsel promptly after Amendment Effective Date

                  REF. NO.   APPLN. NO.   FILING DATE
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    [***]       [***]  

 

*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

23

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

24

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

25

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

26

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

27

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

28

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

29

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                  REF. NO.   APPLN. NO.   FILING DATE
[***]
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*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

30

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APPENDIX V
CK TARGETS
KSP
[***]
 

*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

31

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APPENDIX VI
CK-GSK THIRD PARTY AGREEMENTS
Agreements provided to CK prior to Amendment Effective Date
A. Terminated Agreements not to be Assigned

1.   [***]   2.   [***]   3.   [***]   4.   [***]

B. Other Agreements not to be Assigned (involving other GSK compounds in
addition to SB-992 and SB-921)
[***]
C. Ongoing Agreements to be Assigned

1.   [***]

 

*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

32

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APPENDIX VII
[***] NOTICE – [***]
[ATTACHED]
[***]
 

*   Certain information on this page has been omitted and filed separately with
the commission. Confidential treatment has been requested with respect to the
omitted portions.

33