TABLE OF CONTENTSPageARTICLE I
DEFINITIONSSECTION 1.01.
Definitions
1ARTICLE II
DEVELOPMENTSECTION 2.01.
DevelopmentSECTION 2.02
Drug Approval Applications
9SECTION 2.03.
Costs of Development
9SECTION 2.04.
Right to Engage Third Parties
9SECTION 2.05.
Schering Portfolio
9ARTICLE III
LICENSESSECTION 3.01.
Patent License to Schering
9SECTION 3.02.
Patent and Trademark License to Alliance
10SECTION 3.03.
Third Party Technology
10ARTICLE IV
COMMERCIALIZATIONSECTION 4.01.
Marketing
11SECTION 4.02.
Tax Considerations
11ARTICLE V
ROYALTIESSECTION 5.01.
Schering Product Royalties
12SECTION 5.02.
Alliance Royalties
14SECTION 5.03.
Royalty Reports and Payments
16SECTION 5.04.
Payments; Interest
16SECTION 5.05.
Taxes
16SECTION 5.06.
Payments to or Reports by Affiliates
16SECTION 5.07.
Payment Currency
17ARTICLE VI
MANUFACTURE AND SUPPLYSECTION 6.01.
Manufacture and Supply by Alliance
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CONFIDENTIAL TREATMENTSECTION 6.02.
Regulatory Approval for Manufacturing
17SECTION 6.03.
Step-in Right of Schering
18SECTION 6.04.
Technology and Know-How Transfer
18SECTION 6.05.
Regulatory Approval
18SECTION 6.06.
DMF
19SECTION 6.07.
Acceptance and Pricing
19SECTION 6.08.
Competitive Cost of Goods
19SECTION 6.09.
Packaging
19ARTICLE VII
CONFIDENTIALITYSECTION 7.01.
Confidentiality; Exceptions
20SECTION 7.02.
Authorized Disclosure
20SECTION 7.03.
Survival
21SECTION 7.04.
Termination of Prior Agreement
21SECTION 7.05.
Publications
21SECTION 7.06.
Publicity Review
21ARTICLE VIII
OWNERSHIP OF INTELLECTUAL PROPERTY AND PATENT RIGHTSSECTION 8.01.
Ownership
22SECTION 8.02.
Patent Filings
22SECTION 8.03.
Third Party Patent Rights
22SECTION 8.04.
Enforcement Rights
22SECTION 8.05.
Defense and Settlement of Third Party Claims
23SECTION 8.06.
Patent Expenses
23SECTION 8.07.
Trademarks
23ARTICLE IX
REPRESENTATIONS AND WARRANTIESSECTION 9.01.
Representations and Warranties
23SECTION 9.02.
Performance by Affiliates
24ARTICLE X
INFORMATION AND REPORTSSECTION 10.01.
Information and Reports During Development and Commercialization
24SECTION 10.02.
Adverse Drug Experiences
25SECTION 10.03.
Records of Revenues and Expenses
25SECTION 10.04.
Applicability
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CONFIDENTIAL TREATMENTARTICLE XI
TERM AND TERMINATIONSECTION 11.01.
Term
27SECTION 11.02.
Termination
27SECTION 11.03.
Surviving Rights
29ARTICLE XII
INDEMNIFICATIONSECTION 12.01.
Indemnification
29ARTICLE XII
MISCELLANEOUSSECTION 13.01.
Assignment
30SECTION 13.02.
Retained Rights
30SECTION 13.03.
Force Majeure
30SECTION 13.04.
Further Actions
31SECTION 13.05.
No Trademark Rights
31SECTION 13.06.
Notices
31SECTION 13.07.
Waiver
32SECTION 13.08.
Severability
32SECTION 13.09.
Ambiguities
32SECTION 13.10.
Governing Law
32SECTION 13.11.
Headings
32SECTION 13.12.
Counterparts
32SECTION 13.13.
Entire Agreement; Amendments
32SECTION 13.14.
Expenses
33SECTION 13.15.
Independent Contractors
33SECTION 13.16.
Use of Names
33EXHIBITSEXHIBIT A
Determination of Certain Accounting TermsEXHIBIT B
Alliance PatentsEXHIBIT C
Alliance HI PatentsEXHIBIT D
Schering HI Patents









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Category
Total Net Sales/Year($ millions)
Royalty Percentage(% of Net Sales)
Maximum Payment
(% of Net Sales) (Section 5.01(a)(ii))
Royalty Average(% of Net Sales) (Section 5.01(a)(iv))1.
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responsible and of adverse drug event information for the Product. At the option of the requesting Party, such data shall be provided in a computer readable format by the providing Party, to the extent available, which shall also assist in the transfer and validation of such data to the receiving Party. Without limitation of the foregoing, each Party shall supply to the other practice or as a specific request) for purposes of compliance with regulatory requirements.









































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(a)
If to Alliance:Alliance Pharmaceutical Corp.
3040 Science Park Road
San Diego, CA 92121
Attention: President
Telecopy: (619) 558-5161With a copy to:Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, NY 10038-4982
Attention: Melvin Epstein
Telecopy: (212) 806-6006(b)
If to Schering:Schering AG
13342 Berlin
Germany
Attention: Legal Department
Telecopy: ++49+ 30-4681 4086With a copy to:Schering AG
13342 Berlin
Germany
Attention: SBU Diagnostics & Radiopharmaceuticals
Telecopy: ++49+ 30-4681 6736










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ALLIANCE PHARMACEUTICAL CORPBy:Name:Title





SCHERING AKTIENGESELLSCHAFTBy:Name: Hans-Michael RookTitle:   Head of SBU DG & RP







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By:Name: Dr. Thomas FritzschTitle:   Licensing and CooperationsDG & RP
 
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INT. NO.

INT. NO.*

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