EXHIBIT 10.2

CONFIDENTIAL TREATMENT
REQUEST

RESEARCH COLLABORATION
AND LICENSE AGREEMENT
by and between
ASTRAZENECA AB
and
PALATIN TECHNOLOGIES, INC.

INFORMATION MARKED " *** " IS OMITTED
AND FILED SEPARATELY WITHTHE SECURITIES AND EXCHANGE COMMISSION UNDER RULE 24b-2

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TABLE OF CONTENTS

`PAGE

1.  Definitions...............................................................5
...
2.  Construction.............................................................18

3.  The Research Collaboration...............................................18

4.  Management of the Research Collaboration.................................23

5.  Reports..................................................................31

6.  Development Project......................................................31

7.  Ownership and Grant of Rights............................................33

8.  Confirmatory Patent Licenses.............................................39

9.  Research Funding.........................................................39

10.  Consideration...........................................................41

11.  Royalty Payments and Other Payment-Related Provisions...................45

12.  Taxes...................................................................51

13.  Confidentiality and Non-Disclosure......................................52

14.  Trademarks..............................................................57

15.  Patent Prosecution and Defence..........................................58

16.  Enforcement of Patents..................................................61

17.  Potential Third Party Rights............................................64

18.  Representations and Warranties..........................................68

19.  Indemnification and Insurance...........................................74

20.  Term and Termination....................................................78

21.  Force Majeure...........................................................87

22.  Assignment..............................................................88

23.  Severability............................................................89

24.  Governing Law and Dispute Resolution....................................90

25.  Interpretation of Certain Evidence......................................91

26.  Notices.................................................................91

27.  Relationship of the Parties.............................................92

28.  Entire Agreement........................................................93`

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`29.  English Language........................................................93

30.  Amendment...............................................................93

31.  Waiver and Non-Exclusion of Remedies....................................93

32.  No Benefit to Third Parties.............................................94

33.  Equitable Relief........................................................94

34.  Further Assurance.......................................................94

35.  Expenses................................................................95

36.  Counterparts............................................................95`

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RESEARCH COLLABORATION
AND LICENSE AGREEMENT

This Research Collaboration and
License Agreement (this Agreement) is made effective as of the 30th day of
January 2007 (the Effective Date), by and between

|(1) | ASTRAZENECA AB, a company incorporated in Sweden under no. 556011-7482 with
   offices at S-151 85 Södertälje, Sweden (AstraZeneca); and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(2) | PALATIN TECHNOLOGIES, INC., a Delaware corporation with its principal place of
   business at 4-C Cedar Brook Drive, Cranbury, New Jersey 08512
   (Palatin).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Recitals

|(A) | WHEREAS, Palatin is engaged in research regarding modulation of the activity of
   the MC4 receptor, including regulation of appetite for treatment of obesity,
   diabetes and related metabolic syndrome; and
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|(B) | WHEREAS, AstraZeneca and its Affiliates (as defined below) have specialised
   experience in, among other things, the research, development, manufacturing and
   commercialisation of pharmaceutical compounds worldwide; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(C) | WHEREAS, the Parties wish to engage in a research collaboration utilising the
   Parties respective knowledge, skills and proprietary technology to develop
   the Agreement Compounds (as defined below) *** (as specified below and in the
   Research Plan) and up to selection of Candidate Drug (as defined below) for ***;
   and
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|(D) | WHEREAS, the Parties wish AstraZeneca to be responsible, as a general matter,
   for all other aspects of the development and commercialisation of the Agreement
   Compounds and Licensed Products (as defined below); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(E) | WHEREAS, the Parties wish to collaborate as set forth above and Palatin desires
   to grant a licence to AstraZeneca, and AstraZeneca desires to take a licence, to
   develop and commercialise the above-mentioned Agreement Compounds and Licensed
   Products in accordance with the terms and conditions set forth below.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Agreement

NOW, THEREFORE, in consideration of
the mutual covenants contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties,
intending to be legally bound, agree as follows:

1. Definitions

| | Unless
otherwise specifically provided in this Agreement, the following terms have the following
meanings:
| | ----------------------------------------------------------------------------------------------------------

|1.1. |  | AAALAC means the Association for the Assessment and
     Accreditation of Laboratory Animal Care.
|---- |  | ---------------------------------------------------------------------------------------------------

|1.2. |  | Additional Indication means an indication other than such
     ***.
|---- |  | ---------------------------------------------------------------------

|1.3. |  | Affiliate means, with respect to a Person, any Person that
     Controls, is Controlled by or is under common Control with such first Person.
     For purposes of this definition only, Control means (a) 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 (b) to own, directly or
     indirectly, more than fifty percent (50%) of the outstanding voting securities
     or other ownership interest of such Person.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.4. |  | Agreement has the meaning set forth in the preamble of this
     agreement.
|---- |  | -----------------------------------------------------------------------------

|1.5. |  | Agreement Compounds means the Compound and the Collaboration
     Compound.
|---- |  | -----------------------------------------------------------------------------

|1.6. |  | Annual Net Sales means the Net Sales made during a given
     Calendar Year.
|---- |  | ------------------------------------------------------------------------------

|1.7. |  | Applicable Law means the applicable laws, rules and
     regulations, including any rules, regulations, guidelines or other requirements
     of the Health Authorities, that may be in effect from time to time in the
     Territory.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.8. |  | AstraZeneca Background Technologies means any (a)
     Information, discovery, invention, products, cultures, biological materials and
     other materials and compositions (including Collaboration Materials provided by
     AstraZeneca to Palatin hereunder), owned or Controlled independent of this
     Agreement by AstraZeneca or its Affiliates at the Effective Date or during the
     Collaboration Term and introduced at its sole discretion to Palatin under the
     Research Collaboration by AstraZeneca or its Affiliates and (b) IP Protection
     Rights pertaining to any of the foregoing.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.9. |  | AstraZeneca Improvements means all Results that constitute
     Improvements to the AstraZeneca Background Technologies.
|---- |  | --------------------------------------------------------------------------------------------------------------------------

|1.10. |  | AstraZeneca Information has the meaning set forth in Section
     13.1.2.
|----- |  | ---------------------------------------------------------------------------

|1.11. |  | AstraZeneca Patents means Patents with respect to AstraZeneca
     Improvements.
|----- |  | ----------------------------------------------------------------------------------

|1.12. |  | AstraZeneca Principal Scientists means the principal
     scientists designated by AstraZeneca to be responsible for all Research
     Collaboration activities undertaken by AstraZeneca and serving as the primary
     contacts for Palatin on all matters related to the Research Collaboration. The
     AstraZeneca Principal Scientists are listed in Schedule 1.12 hereto.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.13. |  | AstraZeneca Product Data has the meaning set forth in Section
     20.7.1.
|----- |  | ----------------------------------------------------------------------------

|1.14. |  | Calendar Quarter means each successive period of three (3)
     calendar months commencing on 1st January, 1st April, 1st July and 1st October.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|1.15. |  | Calendar Year means each successive period of twelve (12)
     calendar months commencing on 1st January
|----- |  | ----------------------------------------------------------------------------------------------------------

|1.16. |  | Candidate Drug or CD means an Agreement
     Compound selected by AstraZeneca in its sole discretion as a candidate for
     clinical development.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

|1.17. |  | Change of Corporate Control means the occurrence of any of
     the following:
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| |  | (a) |  | any
merger, consolidation or sale or transfer of all or substantially all of the
     assets, or other similar transaction to which Palatin is a party
unless,      following such transaction or transactions, (i) the
individuals and entities who      were the beneficial owners of the
outstanding voting securities of Palatin      immediately prior to such
transaction beneficially own, directly or indirectly,      at least fifty
percent (50%) of the combined voting power of the then      outstanding
voting securities entitled to vote generally in the election of
     directors or similar governing persons of the corporation or other
entity      resulting from such transaction (Successor) in
substantially the      same proportions as their ownership immediately
prior to such transaction of      such outstanding voting securities, and
(ii) at least fifty percent (50%) of the      members of the Board of
Directors or similar governing body of the Successor      were members of
the Board of Directors of Palatin at the time of the execution      of the
initial agreement, or the action of the Board of Directors of Palatin,
     providing for such transaction.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | (b) |  | any
transaction or series of related transactions in which any      person,
as such term is used in Sections 13(d) and 14(d) of the      Securities
and Exchange Act of 1934, as amended (the Exchange Act),
     together with any of such persons affiliates or
     associates, as such terms are used in the Exchange Act,
become the      beneficial owner of fifty percent (50%) or more of the
combined voting power of      the outstanding securities of Palatin.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.18. |  | Collaboration Compound means any compound, other than a
     Compound, and any of its metabolites, salts, crystalline forms, esters, free
     acid forms, free base forms, pro-drug forms, racemates and all optically active
     forms thereof that are selected by means of ***.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.19. |  | Collaboration Management Committee or CMC means
     the joint committee established by the Parties pursuant to Article 4.1.1.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

|1.20. |  | Collaboration Materials means any compounds, cells, cell
     lines, DNA and RNA molecules, plasmids, proteins, crystals, coordinates,
     antibodies, antibody coding DNA sequences, antibody coding expression vectors
     and antibody expressing transfected cell lines and other materials and any
     replications of any of the foregoing, that one Party provides to the other Party
     to enable such Party to perform work under the Research Collaboration; provided,
     however, that Collaboration Materials shall exclude all
     Collaboration Results.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.21. |  | Collaboration Patent means Patents with respect to
     Collaboration Results.
|----- |  | --------------------------------------------------------------------------------

|1.22. |  | Collaboration Results means Results that are discovered,
     conceived, reduced to practice or otherwise generated through work performed,
     jointly or by either Party, under the Research Collaboration, provided, however,
     that Collaboration Results shall exclude all AstraZeneca Improvements other than
     as provided in the last sentence of Section 1.18.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.23. |  | Collaboration Term has the meaning specified in Section 20.2.
|----- |  | ---------------------------------------------------------------

|1.24. |  | Collaboration Year means the twelve-month period starting on
     the Effective Date and any immediately subsequent twelve-month period.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------

|1.25. |  | Combination Product means a Product that contains an
     Agreement Compound together with one or more other active ingredient(s) that are
     sold either as a fixed dose or as separate doses in a single package.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.26. |  | Commercially Reasonable Efforts means, with respect to the
     research, development, Manufacture or commercialisation of an Agreement Compound
     or Licensed Product, as the case may be, efforts and resources used by
     AstraZeneca for its own compounds or products with similar commercial and
     scientific potential at a similar stage in their lifecycle, taking into
     consideration their safety and efficacy, their cost to develop, the
     competitiveness of alternative products and the nature and extent of their
     market exclusivity (including Patent coverage and regulatory exclusivity), the
     likelihood of regulatory approval, their estimated overall profitability,
     including the amounts of marketing and promotional expenditures with respect to
     the Licensed Products and Competing Products and all other relevant factors.
     Commercially Reasonable Efforts shall be determined on a market-by-market basis
     for each Agreement Compound and each Licensed Product, as applicable; provided,
     however, that should what would otherwise constitute Commercially Reasonable
     Efforts with respect to an individual market conflict with, or otherwise not
     constitute, Commercially Reasonable Efforts with respect to a group of markets
     out of which such individual market is a part then Commercially Reasonable
     Efforts shall be determined for such group of markets as a whole.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.27. |  | Competing Product has the meaning set forth in Section
     11.5.1.
|----- |  | ---------------------------------------------------------------------

|1.28. |  | Compound means compounds covered or claimed by the Licensed
     Patents.
|----- |  | ---------------------------------------------------------------------------

|1.29. |  | Confidential Information has the meaning set forth in Section
     13.1.1.
|----- |  | ----------------------------------------------------------------------------

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|1.30. |  | Control means, with respect to any item of Information,
     Patent or other IP Protection Right, possession of the right, whether directly
     or indirectly, and whether by ownership, license or otherwise, to assign, or
     grant a license, sublicense or other right to or under, such information, Patent
     or other IP Protection Right as provided for herein without violating the terms
     of any agreement or other arrangement with any Third Party.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.31. |  | Defending Party has the meaning set forth in Section 17.4.
|----- |  | ------------------------------------------------------------

|1.32. |  | Development Project means any activities under this Agreement
     by or on behalf of AstraZeneca or its Affiliates outside of the Research
     Collaboration with the aim of developing one or more Licensed Products.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.33. |  | Development Report has the meaning set forth in Section 6.3.
|----- |  | --------------------------------------------------------------

|1.34. |  | Development Results means any and all Results not
     constituting Collaboration Results or AstraZeneca Improvements.
|----- |  | ------------------------------------------------------------------------------------------------------------------------

|1.35. |  | Disclosing Party has the meaning set forth in Section 13.1.1.
|----- |  | ---------------------------------------------------------------

|1.36. |  | Distributor has the meaning set forth in Section 7.8.
|----- |  | -------------------------------------------------------

|1.37. |  | Effective Date means the date as set forth in the preamble to
     this Agreement.
|----- |  | ------------------------------------------------------------------------------------

|1.38. |  | Europe means the European Economic Area as it may be
     constituted from time to time.
|----- |  | ------------------------------------------------------------------------------------------

|1.39. |  | Exploit means to make, have made, import, use, sell, or offer
     for sale, including to research, develop, register, modify, enhance, improve,
     Manufacture, have Manufactured, hold/keep (whether for disposal or otherwise),
     formulate, optimise, have used, export, transport, distribute, promote, market
     or have sold or otherwise dispose or offer to dispose of, a product or process.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.40. |  | Exploitation means the act of Exploiting a product or
     process.
|----- |  | ---------------------------------------------------------------------

|1.41. |  | FDA means the United States Food and Drug Administration and
     any successor agency thereto.
|----- |  | -------------------------------------------------------------------------------------------------

|1.42. |  | First Commercial Sale means the first sale for monetary value
     for use or consumption by the general public of a Licensed Product in any
     country in the Territory after Health Registration Approval for the sale of such
     Licensed Product has been obtained in such country. For the avoidance of doubt,
     sales prior to receipt of all Health Registration Approvals necessary to
     commence regular commercial sales, such as so-called treatment IND
     sales, named patient sales and compassionate use
     sales, shall not be construed as a First Commercial Sale.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.43. |  | Force Majeure has the meaning set forth in Section 21.1.
|----- |  | ----------------------------------------------------------

|1.44. |  | Force Majeure Party means a Party prevented or delayed in its
     performance under this Agreement by an event of Force Majeure.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------

|1.45. |  | FTE means the equivalent of one (1) researcher being at least
     a graduate or a similarly qualified employee of Palatin having the requisite
     skills to fulfill Palatins obligations under this Agreement and devoting
     the equivalent hours of a full time employee. For purposes of this Agreement,
     full time shall *** per Calendar Year as determined in accordance
     with Palatins regular project hour reporting system. An FTE shall be an
     employee of Palatin or a permitted subcontractor pursuant to Section 3.3.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.46. |  | FTE Rate means the price of one (1) FTE per single Calendar
     Year. The FTE Rate shall be ***. The FTE Rate reflects the fully burdened costs
     for an FTE. AstraZeneca shall not be responsible for any Palatin ***, incurred
     in pursuit of the Research Collaboration and the consultation services rendered
     by Palatin under this Agreement, above and beyond the FTE Rate, or for ***.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.47. |  | Grant-Back Patents has the meaning set forth in Section
     20.7.2.
|----- |  | ----------------------------------------------------------------------

|1.48. |  | Health Authority means any applicable supra-national,
     federal, national, regional, state, provincial or local regulatory agency,
     department, bureau, commission, council or other government entity regulating or
     otherwise exercising authority with respect to the Exploitation of Agreement
     Compounds or Licensed Products in the Territory
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.49. |  | Health Registration Approval means, with respect to a country
     in the Territory, any and all approvals, licenses, registrations or
     authorisations of any Health Authority necessary to commercially distribute,
     sell or market a Licensed Product in such country, including, where applicable,
     (a) pricing and reimbursement approval in such country, (b) pre- and
     post-approval marketing authorisations (including any prerequisite Manufacturing
     approval or authorisation related thereto), (c) labelling approval and (d)
     technical, medical and scientific licenses.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.50. |  | Improvements means any improvements, adaptations,
     modifications or upgrading, and any IP Protection Rights related thereto.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

|1.51. |  | ICC has the meaning set forth in Section 24.2.
|----- |  | ------------------------------------------------

|1.52. |  | Information Forum or IF has the meaning
     set forth in Section 4.3.2.
|----- |  | ----------------------------------------------------------------------------

|1.53. |  | ***.
|----- |  | ----

|1.54. |  | IND means an investigational new drug application filed with
     the FDA for authorisation to commence human clinical trials in the U.S., and its
     equivalent in other countries or regulatory jurisdictions in the Territory.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.55. |  | Indemnification Claim Notice has the meaning set forth in
     Section 19.3.
|----- |  | ------------------------------------------------------------------------------

|1.56. |  | Indemnified Party means a Party, its Affiliates or its or
     their respective directors, officers, employees and agents designated under
     Section 19.1 or 19.2, as applicable, seeking to recover a Loss under such
     applicable Section.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.57. |  | Indemnifying Party means a Party from whom recovery of a Loss
     is sought under Section 19.1 or 19.2.
|----- |  | ----------------------------------------------------------------------------------------------------------

|1.58. |  | Indemnitee has the meaning set forth in Section 19.3.
|----- |  | -------------------------------------------------------

|1.59. |  | Indirect Taxes means value added taxes, sales taxes,
     consumption taxes and other similar taxes.
|----- |  | ------------------------------------------------------------------------------------------------------

|1.60. |  | Information means all technical, scientific and other
     know-how and information, trade secrets, knowledge, technology, means, methods,
     processes, practices, formulae, instructions, skills, techniques, procedures,
     experiences, ideas, technical assistance, designs, drawings, assembly
     procedures, computer programs, apparatuses, specifications, data, results and
     other material, including: the process and results of high-throughput screening,
     gene expression, genomics, proteomics and other drug discovery and development
     technology; biological, chemical, pharmacological, toxicological,
     pharmaceutical, physical and analytical, pre-clinical, clinical, safety,
     manufacturing and quality control data and information, including study designs
     and protocols; assays and biological methodology; Manufacturing and quality
     control procedures and data, including test procedures; and synthesis,
     purification and isolation techniques, (whether or not confidential,
     proprietary, patented or patentable) in written, electronic or any other form
     now known or hereafter developed, but excluding the Regulatory Documentation.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.61. |  | Infringement Suit has the meaning set forth in Section 17.4.
|----- |  | --------------------------------------------------------------

|1.62. |  | IP has the meaning set forth in Section 20.10.
|----- |  | ------------------------------------------------

|1.63. |  | IP Protection Rights means any and all legal means of
     establishing rights in and to ideas, inventions, discoveries, know-how, data,
     databases, documentation, reports, materials, writings, designs, computer
     software, processes, principles, methods, techniques and other information,
     including Patents, trade marks, service marks, trade names, registered designs,
     design rights, copyrights (including rights in computer software and database
     rights) and any rights or property similar to any of the foregoing in any part
     of the world, whether registered or not, together with the right to apply for
     the registration of any such rights.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.64. |  | Joint Executive Committee or JEC means the
     joint committee established by the Parties pursuant to Section 4.2.1.
|----- |  | -------------------------------------------------------------------------------------------------------------------------

|1.65. |  | Key Personnel has the meaning set forth in Section 3.2.
|----- |  | ---------------------------------------------------------

|1.66. |  | Knowledge means a Partys and its Affiliates
     understanding in good faith of the relevant facts and information resulting from
     the reasonable conduct of its business affairs, but without the requirement of
     performing an investigation with respect to any such facts and information.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.67. |  | License has the meaning set forth in Section 7.5.
|----- |  | ---------------------------------------------------

|1.68. |  | *** Patents means (a) all patents and patent applications set
     forth in Schedule 1.68 and (b) any Patents with respect to such patents
     and patent applications.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.69. |  | Licensed Field means the palliative, prophylactic or
     therapeutic treatment of mammalian, including human, obesity, diabetes and
     related metabolic syndrome by use of (a) a Compound, other than such Compound
     mentioned under (b), which binds to the melanocortin-4 receptor or the
     melanocortin-3 receptor; or (b) a Compound which binds to the melanocortin-4
     receptor and is effective for palliative, prophylactic or therapeutic treatment
     of any mammalian, including human, disease, syndrome or condition as a result of
     such binding to the melanocortin-4 receptor, but specifically excluding from
     either of the foregoing ***.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|1.70. |  | Licensed Improvement means any Improvement with respect to an
     Agreement Compound or Licensed Product or relating to the Exploitation thereof
     Controlled by Palatin or its Affiliates, not constituting a Development Result,
     whether or not patentable, that is conceived, reduced to practice, developed or
     discovered or otherwise made outside the Research Collaboration during the term
     of this Agreement by or on behalf of Palatin or its Affiliates or by the Parties
     or their respective Affiliates jointly, or their respective employees and agents
     (whether alone or jointly with others), or otherwise Controlled by Palatin or
     its Affiliates at any time prior to and at the Effective Date or during any
     period in which AstraZeneca owes royalties to Palatin pursuant to Section 11.7,
     and which AstraZeneca has not rejected pursuant to Section 7.4.1.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.71. |  | Licensed Know-How means the Information set out and described
     in Schedule 1.71 and ***, but excluding any Information to the extent
     covered or claimed by the Licensed Patents.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.72. |  | ***.
|----- |  | ----

|1.73. |  | Licensed Patents means the *** Patents and *** and any
     Patents claiming or covering any Licensed Improvement.
|----- |  | --------------------------------------------------------------------------------------------------------------------

|1.74. |  | Licensed Products means the Products and the Combination
     Products.
|----- |  | -------------------------------------------------------------------------

|1.75. |  | Losses means any and all direct or indirect liability,
     damage, loss or expense, including interest, penalties and reasonable
     lawyers fees and disbursements. In calculating Losses, the duty to
     mitigate on the part of the Party suffering the Loss shall be taken into
     account.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.76. |  | Major Markets means (a) ***, (b) ***, or (c) ***.
|----- |  | ---------------------------------------------------

|1.77. |  | Manufacture and Manufacturing means, with
     respect to a product or compound, the synthesis, manufacturing, processing,
     formulating, packaging, labelling, holding and quality control testing of such
     product or compound.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.78. |  | Net Sales means the gross invoiced amount on sales of the
     Licensed Products by AstraZeneca and its Affiliates to Third Parties (including
     Distributors) after deduction of:
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | (a) |  | normal
and customary trade, quantity or prompt settlement discounts (including
     chargebacks and allowances) actually allowed;
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | amounts
*** or *** by reason of *** determined by AstraZeneca or its Affiliates
     in good faith and not inconsistent with standard industry practice;
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) |  | ***
similar payments made with respect to *** such as, by way of illustration
     and not in limitation of the Parties rights hereunder, ***;
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) |  | ***;
| |  | --- |  | ----

| |  | (e) |  | ***;
| |  | --- |  | ----

| |  | (f) |  | any
other deductions that are consistent with generally-accepted accounting
     principles, or in the case of non-United States sales, other
applicable      accounting standards ; and
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (g) |  | as
an allowance for *** percent (***) of the amount arrived at after application
     of the provisions of items (a) to (f) above.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------

| | Net
Sales shall be calculated using AstraZenecas internal systems, which systems are
externally audited, used to report such sales as adjusted for any of items (a) to (g)
above not taken into account in such systems. Deductions pursuant to subsection (d) above
shall be taken in the Calendar Quarter in which such sales are no longer recorded as a
receivable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.79. |  | Non-Defending Party has the meaning set forth in Section
     17.4.
|----- |  | ---------------------------------------------------------------------

|1.80. |  | Palatin Principal Scientists has the meaning set forth in
     Section 3.2.
|----- |  | -----------------------------------------------------------------------------

|1.81. |  | Parties means AstraZeneca and Palatin and Party
     means either of AstraZeneca or Palatin.
|----- |  | ------------------------------------------------------------------------------------------------

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|1.82. |  | Patents means (a) all national, regional and international
     patents and patent applications, including provisional patent applications, (b)
     all patent applications filed either from such patents, patent applications or
     provisional applications or from an application claiming priority from either of
     these, including divisionals, continuations, continuations-in-part,
     provisionals, converted provisionals, and continued prosecution applications,
     (c) any and all patents that have issued or in the future issue from the
     foregoing patent applications ((a) and (b)), including utility models, petty
     patents and design patents and certificates of invention, (d) any and all
     extensions or restorations by existing or future extension or restoration
     mechanisms, including revalidations, reissues, re-examinations and extensions
     (including any supplementary protection certificates and the like) of the
     foregoing patents or patent applications ((a), (b) and (c)), and (e) any similar
     rights, including so-called pipeline protection, or any importation,
     revalidation, confirmation or introduction patent or registration patent or
     patent of additions to any such foregoing patent applications and patents.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.83. |  | Payments has the meaning set forth in Section 12.1.
|----- |  | -----------------------------------------------------

|1.84. |  | Person means an 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, including a
     government or political subdivision, department or agency of a government.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.85. |  | Phase I Clinical Trial means a clinical study performed in
     healthy subjects or patients starting with first single dose to man to study the
     safety and tolerability and/or pharmacokinetic and/or pharmacodynamic properties
     of a Candidate Drug.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.86. |  | Phase II Clinical Trial means a clinical study performed in
     patients in order to define the optimal dose range for a Phase III Clinical
     Trial.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|1.87. |  | Phase III Clinical Trial means a large scale, multicenter,
     human clinical trial (excluding dose ranging studies) to be conducted in a
     number of patients estimated to be sufficient to primarily establish efficacy of
     a Licensed Product in the claim of e.g. obesity or diabetes or any other claimed
     major medical indication and at a standard suitable to obtain a Health
     Registration Approval in a Major Market.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.88. |  | Product means any product in a form suitable for applications
     for human, veterinary or agricultural use that contains an Agreement Compound as
     the sole active ingredient.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.89. |  | Receiving Party has the meaning set forth in Section 13.1.1.
|----- |  | --------------------------------------------------------------

15

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|1.90. |  | Regulatory Documentation means all applications,
     registrations, licenses, authorisations and approvals (including all Health
     Registration Approvals), all correspondence submitted to or received from Health
     Authorities (including minutes and official contact reports relating to any
     communications with any Health Authority) and all supporting documents and all
     clinical studies and tests, relating to any Agreement Compounds or Licensed
     Products, and all data contained in any of the foregoing, including all IND
     applications, Health Registration Approvals, regulatory drug lists, advertising
     and promotion documents, adverse event files and complaint files.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.91. |  | Research Collaboration means the research collaboration
     described in the Research Plans. For the avoidance of doubt, any research or
     development concerning the Agreement Compounds or the Licensed Products beyond
     the Research Collaboration will be part of the Development Project.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.92. |  | Research Plan means the Discovery Research Plan, attached
     hereto as Schedule 1.92,outlining the Research Collaboration and
     each Partys undertakings and obligations, including ***, in relation
     thereto as they may be amended from time to time in accordance with Section
     4.1.2.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.93. |  | Results means ideas, inventions, discoveries, know-how, data,
     documentation, reports, materials, writings, designs, computer software,
     processes, principles, methods, techniques and other information, recorded in
     any form, that are discovered, conceived, reduced to practice or otherwise
     generated through work performed under or in connection with this Agreement by
     either Party or by the Parties jointly, and any IP Protection Rights pertaining
     to any of the foregoing.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.94. |  | ***.
|----- |  | ----

|1.95. |  | Sublicensee has the meaning set forth in Section 7.7.
|----- |  | -------------------------------------------------------

|1.96. |  | Term means the period beginning on the Effective Date and
     continuing until the earlier of the date upon which this Agreement expires by
     its terms or is terminated in accordance with Article 20.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.97. |  | ***.
|----- |  | ----

16

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|1.98. |  | Third Party means any Person not including the Parties, the
     Parties respective Affiliates or the Sublicensees.
|----- |  | ----------------------------------------------------------------------------------------------------------------------

|1.99. |  | Third Party Claim has the meaning set forth in Section 19.1.
|----- |  | --------------------------------------------------------------

|1.100. |  | Trademark means any word, name, symbol, colour, designation
     or device or any combination thereof for use in the course of trade, including
     any trademark, trade dress, brand mark, trade name, brand name, logo or business
     symbol used by AstraZeneca in connection with the Licensed Products.
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.101. |  | Triggering Event has the meaning set forth in Section 17.1.
|------ |  | -------------------------------------------------------------

|1.102. |  | United States or U.S. means the United
     States of America, including its territories, possessions and Puerto Rico.
|------ |  | --------------------------------------------------------------------------------------------------------------------------

|1.103. |  | Valid Claim shall mean, with respect to a Licensed Product in
     a particular country, any claim of a Licensed Patent or Collaboration Patent
     that claims the Agreement Compound included in such Licensed Product as a
     composition of matter and either:
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) |  | with
respect to a granted and unexpired Licensed Patent or Collaboration Patent
     in such country, that (i) has not been held permanently revoked,
unenforceable      or invalid by a decision of a court or other
governmental agency of competent      jurisdiction, which decision is
unappealable or unappealed within the time      allowed for appeal, and
(ii) has not been abandoned, disclaimed, denied or      admitted to be
invalid or unenforceable through reissue or disclaimer or      otherwise;
or
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | with
respect to a pending Licensed Patent or Collaboration Patent application
     that was filed and is being prosecuted in good faith and has not been
abandoned      or finally disallowed without the possibility of appeal or
re-filing of the      application, provided that such claim has not been
pending for more than ***      years.
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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|2. |  | Construction
|-- |  | ------------

| | Except
where the context requires otherwise, whenever used the singular includes the plural, the
plural includes the singular, the use of any gender is applicable to all genders and the
word or has the inclusive meaning represented by the phrase
and/or. Whenever this Agreement refers to a number of days, unless otherwise
specified, such number refers to calendar days. The headings of this Agreement are for
convenience of reference only and do not define, describe, extend or limit the scope or
intent of this Agreement or the scope or intent of any provision contained in this
Agreement. The term including or includes as used in this
Agreement means including, without limiting the generality of any description preceding
such term. The wording of this Agreement shall be deemed to be the wording mutually chosen
by the Parties and no rule of strict construction shall be applied against any Party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | The
Research Collaboration
|-- |  | --------------------------

|3.1. |  | Conduct
of Research Collaboration. During the Collaboration Term and    under the
direction and supervision of the CMC, each Party shall (a) perform or
    cause to be performed its obligations under the Research Plan in good
scientific    manner and in compliance in all relevant material aspects with
all Applicable    Law, including, as required by the Research Plan, good
laboratory practices,    good manufacturing practice and good clinical
practices, (b) allocate sufficient    time, effort, equipment and skilled
personnel to complete such activities    successfully and promptly and (c)
insofar as the activities involve the use of    animals by Palatin, Palatin
shall conduct activities in accordance with the    AAALAC standards and
AstraZeneca International Policy on Animal Care and Use,    attached hereto
as Schedule 3.1, to the extent stricter than the AAALAC    standards.
Following the Effective Date, the Parties shall promptly commence the
    Research Collaboration.
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2. |  | Facilities
and Key Personnel. Palatin shall provide facilities, equipment    and
manpower that are reasonably necessary to carry out the work undertaken by
    Palatin under the Research Collaboration at Palatins facilities at
the    address set forth in the preamble to this Agreement or at such other
facilities    as set out in the Research Plan. The principal scientists
designated by Palatin    (the Palatin Principal Scientists)
shall be responsible for    all Research Collaboration activities undertaken
by Palatin and shall supervise    the work of all personnel engaged by
Palatin in the Research Collaboration. The    Palatin Principal Scientists
shall serve as the primary contact for AstraZeneca    on all matters
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| | related
to the Discovery Research Plan and the Development    Research Plan,
respectively. The Palatin Principal Scientists and other    scientific and
technical personnel of Palatin considered by AstraZeneca to be of    key
importance for the conduct of the Research Collaboration (the Key
    Personnel), and the minimum amount of time that they each will
devote    to the Research Collaboration, are listed on Schedule3.2 hereto.
    Palatin shall not substitute persons for the Key Personnel or materially
reduce    the time commitment of any Key Personnel to the Research
Collaboration without    the prior written approval of AstraZeneca. In the
event that any Key Personnel    are no longer employed by Palatin or are
otherwise incapable of performing their    obligations under this Agreement
(e.g., become disabled), the Parties shall meet    and discuss in good faith
how best to proceed. Notwithstanding the foregoing,    Palatin shall continue
to be responsible for performing the activities    undertaken by it under the
Research Collaboration and any consent or agreement    by AstraZeneca
pursuant to this Section 3.2 shall not be deemed to be a waiver    of any
right or remedy AstraZeneca may have in relation to any failure by    Palatin
to conduct such activities.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3. |  | Subcontracting. Palatin shall be solely responsible for successfully
    completing its activities set forth in the Research Plan. Palatin shall conduct
    and carry out all activities provided for under the Research Collaboration
    through its employees at the site identified under Section 3.2 unless and only
    to the extent AstraZeneca consents in writing to Palatin engaging a
    subcontractor to carry out a portion of such activities. Any such permitted
    subcontract shall be subject to the applicable terms and conditions of this
    Agreement, including Articles 7 and 13, and, upon AstraZenecas request,
    Palatin shall require each such subcontractor to enter into an undertaking,
    pursuant to which the terms and conditions of this Agreement shall apply
    directly between such subcontractor and AstraZeneca, prior to disclosing to such
    subcontractor any of AstraZenecas Confidential Information; provided,
    however, that Palatin shall remain ultimately responsible for the performance of
    its obligations under this Agreement. Any fees or costs due any such
    subcontractor shall be at the sole expense of Palatin, unless otherwise agreed
    upon in writing.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

19

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|3.4. |  | Collaboration Materials and Information Transfer
|---- |  | ------------------------------------------------

|3.4.1. |  | Palatin shall, and shall cause its Affiliates, without additional compensation
    and at Palatins sole expense, to provide to AstraZeneca copies of any
    Licensed Know-How which could be reasonably considered material to the Research
    Collaboration, not previously provided to AstraZeneca, promptly after the
    Effective Date. Upon AstraZenecas request to Palatin, Palatin shall
    promptly provide to AstraZeneca any copies of additional Licensed Know-How and
    originals of Licensed Know-How in those cases where AstraZeneca has a need for
    the same in connection with the filing and prosecution of patents.
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4.2. |  | Upon the identification of hits through screening of ***, Palatin shall promptly
    take all steps reasonably necessary to ensure that information with regard to
    such compound is not made available or accessible to any Third Party, including
    by ***.
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4.3. |  | During the Research Collaboration each Party shall, and shall cause its
    Affiliates, in accordance with the criteria and mechanisms established by the
    CMC, disclose and make available to the other Party, in whatever form such Party
    may reasonably request, all Collaboration Results promptly upon the earlier of
    the conception or reduction to practice, discovery, development or making of
    such Collaboration Results.
|------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4.4. |  | Each Party shall, and shall cause its Affiliates to, in accordance with the
    criteria and mechanisms established by the CMC, disclose and make available to
    the other Party, in whatever form such Party may reasonably request, all
    Collaboration Material promptly upon the Effective Date or upon the earlier of
    the conception or reduction to practice, discovery, development or making of
    such Collaboration Material; provided, however, that notwithstanding the
    foregoing, AstraZeneca shall only be required to provide or disclose to Palatin
    such Collaboration Materials and other information as it determines, in its sole
    discretion, is reasonably necessary for Palatin to perform its activities under
    the Research Collaboration and AstraZeneca retains the right, in its reasonable
    discretion, to withdraw any such Collaboration Material information from the
    Research Collaboration upon written notice to Palatin.
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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|3.5. |  | Cooperation. Each Party shall cooperate with any and all reasonable
    requests for assistance from the other Party with respect to the activities
    under the Research Collaboration, including by making its employees, consultants
    and other scientific staff available upon reasonable notice during normal
    business hours at their respective places of employment to consult with such
    other Party on issues arising in connection with the Research Collaboration.
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.6. |  | Regulatory Records. Palatin and AstraZeneca each shall maintain, or cause
    to be maintained, records of its respective activities under the Research
    Collaboration in sufficient detail and in good scientific manner appropriate for
    patent and regulatory purposes, which shall be complete and accurate and shall
    fully and properly reflect all work done and results achieved in the performance
    of its respective activities under the Research Collaboration, and which shall
    be retained by such Party for at least *** years after the termination of the
    Research Collaboration, or for such longer period as may be required by
    Applicable Law; provided always that before destroying any such record upon
    expiration of such period Palatin shall offer AstraZeneca in writing to transfer
    such record to AstraZeneca and shall, should AstraZeneca declare in writing that
    it wishes to have such record transferred, transfer it to AstraZeneca, at
    AstraZenecas cost, without unreasonable delay. Each Party shall have the
    right, during normal business hours and upon reasonable notice, to inspect and
    copy any such records.
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.7. |  | Additional Undertakings of Palatin.
|---- |  | -----------------------------------

|3.7.1. |  | During the Collaboration Term and for a period of *** year thereafter, Palatin
    covenants that it and its Affiliates shall not (a) conduct any research or
    activity for or on behalf of any Third Party that is aimed at or has as its goal
    or intent discovering, identifying, Exploiting or otherwise commercialising
    products for the treatment of ***, or (b) grant any license or other rights to
    any Person to utilise any intellectual property Controlled by Palatin or its
    Affiliates for the purpose of discovering, identifying, Exploiting or otherwise
    commercialising products for the treatment of ***.
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21

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| | Palatin
does hereby grant, and shall cause its Affiliates and its and their employees and
researchers to grant, to AstraZeneca and its Affiliates the first opportunity to obtain a
worldwide, exclusive license under the results that are discovered, conceived, reduced to
practice or otherwise generated through and under Palatins research work for the
treatment of *** to develop, make, use, sell, offer for sale and import any inventions
claimed or otherwise included therein and to otherwise use such results for all purposes.
For the avoidance of doubt, what is stated in the preceding sentence shall be entirely
without prejudice to the rights that AstraZeneca has licensed under Section 7.5 and
otherwise under this Agreement, and to Palatins undertakings in Sections 3.7.2 and
7.5 and otherwise under this Agreement. Palatin shall and shall cause its Affiliates and
its and their researchers, as applicable, to negotiate with AstraZeneca in good faith to
determine the terms of any such exclusive license agreement. If, after good faith
negotiations, the Parties fail to execute such exclusive license agreement within ***
year after the Collaboration Term, Palatin will be free to license such results to any
Person on terms no less advantageous to Palatin than those last offered to AstraZeneca.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.7.2. |  | For the avoidance of doubt, during the Term of this Agreement Palatin covenants
    that it and its Affiliates shall not (a) subject to the retained right pursuant
    to Section 7.5 for Palatin to carry out its obligations under the Research
    Collaboration, conduct any research or activity that is aimed at or has as its
    goal or intent discovering, identifying, Exploiting or otherwise commercialising
    Licensed Products for use in the Licensed Field or (b) grant any license or
    other rights to any Person, other than AstraZeneca and its Affiliates hereunder,
    to utilise any intellectual property Controlled by Palatin or its Affiliates for
    the purpose of discovering, identifying, Exploiting or otherwise commercialising
    Licensed Products for use in the Licensed Field.
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.7.3. |  | The Parties acknowledge that all restrictions contained in this Section 3.7 are
    reasonable, valid and necessary for the adequate protection of the Licensed
    Product business and that AstraZeneca would not have entered in this Agreement
    without the protection afforded it by this Section 3.7.
|------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22

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|3.8. |  | Selection of Candidate Drug. For the avoidance of doubt, the Parties
    acknowledge and agree that AstraZeneca shall have the right in its sole
    discretion at any time during or after the Collaboration Term, irrespective of
    whether any compound has already been selected for further optimisation or as a
    CD and whether or not any such compound or CD has failed in research, clinical
    development or on the market, to select any Agreement Compound for optimisation
    or clinical development. AstraZeneca shall without delay notify the CMC of any
    such selections or, if such selections are made after the Collaboration Term,
    AstraZeneca shall similarly notify Palatin.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Management
of the Research Collaboration
|-- |  | ----------------------------------------

| | 4.1. |  | Collaboration
Management Committees.
| | ---- |  | ------------------------------------

| |  | 4.1.1. |  | Responsibilities
of the CMC. The Parties shall establish a Collaboration     Management Committee
consisting of Palatin and AstraZeneca representatives to     oversee the initiation,
planning and performance of the activities under the     Research Collaboration. In
particular, the responsibilities of the CMC shall     include: (a) establishing
reporting criteria and mechanisms for making     Collaboration Results and other
materials available to the other Party; (b)     establishing prioritisation criteria
for specific components under the Research     Collaboration, including setting
proposed dates for experimental initiation and     completion of each stage of the
Research Collaboration; (c) determining within     *** of the completion of each
stage of the Research Collaboration whether the     completion thereof has been
successful and deciding whether or not to continue     the Research Collaboration
into the next stage (i.e., making stop/go     decisions); (d) monitoring
workflow, including experimental sample     transfer, sample analysis and data
quality control, data analysis and     summarisation, software installation (access),
training and maintenance; (e)     monitoring of sample throughput, and overall
Research Collaboration progress;     (f) to the extent permitted by the Research
Plan, assigning tasks and     responsibilities taking into account each Partys
respective specific     capabilities and expertise in order to avoid duplication and
enhance efficiency     and synergies; (g) monitoring timely execution of the Research
Collaboration,     including compliance with timelines; (h) deciding whether or not
to provide     Third Parties with any material and (i) reviewing and approving any
amendments     to the Research Plan, which to the extent they place additional
financial     responsibilities on Palatin shall require the express written consent
of     Palatin.
| |  | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | 4.1.2. |  | Research
Plan. The Parties acknowledge and agree that (a) the Research     Plan attached
hereto as of the Effective Date set forth the goals and objectives     of the
Research Collaboration and the broad terms of the Parties    respective
undertakings to achieve those goals and objectives and (b) the     funding of FTEs
provided for under Section 9.1 and contracted items and costs     identified in the
Research Plan represent AstraZenecas total financial     obligation for all
services to be rendered and expenses to be incurred by or on     behalf of Palatin as
necessary to achieve the goals and objectives of the     Research Collaboration. The
Parties further acknowledge and agree that the     Research Plan will be amended by
the CMC from time to time during the     Collaboration Term for each stage of the
Research Collaboration to identify and     define the specific undertakings of the
Parties required to implement the     Research Collaboration.
| |  | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.1.3. |  | Formation
of CMC. The CMC shall consist of *** with the requisite     experience and
seniority to enable them to make decisions on behalf of the     Parties with respect
to the Research Collaboration, with equal numbers appointed     by the respective
Party, which shall include the Palatin Principal Scientists     and the AstraZeneca
Principal Scientists. AstraZeneca shall appoint the chairman     of the CMC and
Palatin shall appoint the secretary of the CMC; provided, however     that none of
the AstraZeneca Principal Scientists or the Palatin Principal     Scientists shall
act as chairman or secretary of the CMC. Each Party shall have     the right to
replace its CMC representatives upon written notice to the other     Party, provided
that any such substitute representative shall have substantially     the equivalent
experience and seniority as the representative that such person     replaces.
| |  | ------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.1.4. |  | Disputes.
The CMC shall endeavour to reach consensus on all matters     brought before it with
each Party having a single vote, irrespective of the     number of representatives
actually in attendance at a meeting; provided,     however, that in the event the CMC
is unable to resolve an outstanding matter     before it, such matter shall be
resolved by the JEC.
| |  | ------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

24

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| |  | 4.1.5. |  | Meetings.
The CMC shall meet at least quarterly and more frequently when     required. Regular
quarterly meetings shall be scheduled on a recurring schedule     to be established
by the CMC, or at such other mutually agreeable times no less     than three (3)
months in advance, except for the initial meeting of the CMC,     which shall be at a
mutually agreeable time and place. Any such regular meeting     falling on a holiday
when commercial banks are closed in any of Great Britain,     Sweden or the United
States shall be postponed until the next succeeding day     when commercial banks are
open for business in all three jurisdictions. The     meetings shall be held by means
of teleconference or videoconference or, when     held in person, at AstraZeneca ABs
facilities in Mölndal, Sweden, or     at other locations *** mutually agreed
upon by the Parties. Subject to Section     4.1.6, a quorum of the CMC shall exist
whenever there is present at a meeting     each of the Palatin Principal Scientists
and the AstraZeneca Principal     Scientists. In addition, the CMC may act without a
formal meeting by a written     memorandum signed by the chairman and the secretary
of the CMC. Whenever any     action by the CMC is required hereunder during a time
period in which the CMC is     not scheduled to meet, either of the chairman and the
secretary shall have the     right to call a special meeting or the chairman and the
secretary may jointly     cause the CMC to take the action without a meeting in the
applicable time     period. Any such special meetings shall be held at places and on
dates selected     by the chairman and the secretary.
| |  | ------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.1.6. |  | Quorum.
Notwithstanding what is stated in Section 4.1.5, the chairman of     the CMC may call
for a meeting to be held on a business day when commercial     banks are open for
business in Great Britain, Sweden and the United States by     notifying Palatin no
later than *** in advance of a meeting of the CMC of the     exact date, time and
location for the meeting. Provided that (i) such notice has     been timely issued
and that the meeting is held on the date, time and place so     indicated, or (ii)
Palatin confirms that it has been properly notified about the     meeting, quorum
shall be considered constituted at that meeting unless all     members of one Party
fail to attend the meeting because of illness, where no     substitution could be
reasonably arranged, breakdown in general communications,     travel difficulties
beyond the reasonable control of such Party, or by other     similar reasons. For the
purpose of agreeing that Palatin has been properly     notified of the meeting in the
case under (ii), attendance to a meeting without     express objection thereto shall
be sufficient.
| |  | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

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| |  | 4.1.7. |  | Expenses.
Palatin and AstraZeneca each shall bear all expenses of its     respective CMC
members related to such members participation on the CMC     and attendance at
CMC meetings.
| |  | ------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.1.8. |  | Minutes.
The CMC shall keep accurate minutes of its deliberations, which     minutes shall
record all proposed decisions and all actions recommended or     taken, Research
Collaboration progress reports provided to the CMC pursuant to     Section 5.1 and
Collaboration Results generated of interest. In particular CDs     nominated by
AstraZeneca during the Collaboration Term shall be recorded in the     minutes of the
CMC. Drafts of minutes shall be delivered to the chairman and the     secretary of
the CMC within *** after the respective meeting. The Parties, on an     alternating
basis, shall prepare and circulate the draft minutes. Draft minutes     shall be
edited by the chairman and the secretary of the CMC and shall be issued     in final
form only with the approval and agreement of the chairman and the     secretary of
the CMC, such issuance not subject to final determination by the     JEC in the event
of a dispute.
| |  | ------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2. |  | Joint
Executive Committee.
| | ---- |  | --------------------------

| |  | 4.2.1. |  | Formation
of the JEC. The Parties shall establish one Joint Executive     Committee (the
JEC) to resolve any outstanding matter before the CMC     that the CMC is
unable to resolve. The JEC shall consist of four (4) members     with equal numbers
appointed by each Party with the requisite experience and     seniority to enable
them to resolve any matter brought before them and make any     necessary decisions
on behalf of the Parties with respect to any such matter.     Furthermore, the JEC
shall include a Co Chair to be designated by each Party.     None of the Parties
representatives in the CMC shall be members of the JEC. Each     Party shall have the
right to replace its respective JEC representatives upon     written notice to the
other Party, provided that any such substitute     representative shall have
substantially the equivalent experience and seniority     as the representative that
such person replaces.
| |  | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26

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| |  | 4.2.2. |  | Meetings.
The JEC shall meet within *** from when a matter in dispute is     first brought to
the attention of the JEC by the CMC and when otherwise required     for the purpose
of the Research Collaboration. The JEC shall meet at least once     every Calendar
Year, on a date agreed by the Parties. The meetings shall be held     by means of
teleconference or videoconference or, when held in person, at     AstraZeneca ABs
facilities in Mölndal, Sweden, or at other locations     *** mutually agreed
upon by the Parties. Subject to what is stated in Section     4.2.3, a quorum of the
JEC shall exist whenever there is present at a meeting     each of the Co-Chairs or
their respective designees. The JEC shall endeavour to     reach consensus on all
matters brought before it with each Party having a single     vote, irrespective of
the number of representatives actually in attendance at a     meeting.
| |  | ------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.2.3. |  | Quorum.
Notwithstanding what is stated in Section 4.2.2, the Co-Chair of     AstraZeneca may
call for a meeting by notifying Palatin no later than thirty     (30) days in advance
of a meeting of the JEC of the exact date, time and     location for the meeting.
Provided that (i) such notice has been timely issued     and that the meeting is held
on the date, time and place so indicated, or (ii)     that Palatin confirms that it
has been properly notified about the meeting,     quorum shall be considered
constituted at that meeting unless all members of one     Party fail to attend the
meeting because of illness, where no substitution could     be reasonably arranged,
breakdown in general communications, travel difficulties     beyond the reasonable
control of such Party, or by other similar reasons. No     meeting shall be called
for a day on which the commercial banks are closed in     any of Great Britain,
Sweden or the United States. For the purpose of agreeing     that Palatin has been
properly notified of the meeting in the case under (ii),     attendance to a meeting
without express objection thereto shall be sufficient.
| |  | ------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27

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| |  | 4.2.4. |  | Decision-making.
Any final decision mutually agreed to by the JEC shall     be in writing and shall be
conclusive and binding on the Parties. If such     resolution regarding the Research
Collaboration is unattainable by the JEC ***     from the date the matter in dispute
is first brought to the attention of the     JEC, the dispute shall be resolved ***;
provided, however, that, subject to     Section 4.1.2, if the matter in dispute would
result in additional expense being     incurred ***.
| |  | ------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.2.5. |  | Expenses.
Palatin and AstraZeneca each shall bear all expenses of its JEC     members related
to such members participation on the JEC and attendance at     JEC meetings.
| |  | ------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.2.6. |  | Minutes.
The JEC shall keep accurate minutes of its deliberations, which     minutes shall
record all proposed decisions and all actions recommended or     taken. Drafts of
minutes shall be delivered to the Co Chairs of the JEC within     *** after the
respective meeting. The Parties, on an alternating basis, shall     prepare and
circulate the draft minutes. Draft minutes shall be edited by the     Co-Chairs and
shall be issued in final form only with the approval and agreement     of the
Co-Chairs.
| |  | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3. |  | Upon
Expiration or Termination of the Collaboration Term. Upon expiration     or
termination of the Collaboration Term the following shall apply:
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.3.1. |  | Dissolution
of the CMC and the JEC. The CMC and the JEC shall be     dissolved and Palatin
shall provide AstraZeneca with consultation services,     including reviewing and
contributing to proposed publications concerning the     Agreement Compounds or
Licensed Products, as AstraZeneca may reasonably request     for the Development
Project, including by making Palatins employees,     consultants and other
scientific staff available upon reasonable notice during     normal business hours to
consult with AstraZeneca on issues arising during the     Development Project, or in
connection with Exploitation of Agreement Compounds,     Licensed Products or
Results. AstraZeneca shall reimburse Palatin for     out-of-pocket costs incurred in
connection with such consultation services and     should the time devoted by Palatin
to such services exceed *** in any Calendar     Year, AstraZeneca shall compensate
Palatin for any additional agreed upon ***.     Prior to performing services in
excess of the *** allotment, Palatin shall     notify AstraZeneca in writing that the
said allotment has been utilised. For     purposes of this Section 4.3.1, the daily
FTE rate shall be determined by     dividing the FTE Rate by ***.
| |  | ------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

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| |  | 4.3.2. |  | The
Parties shall establish an Information Forum (the IF),
    consisting of *** with equal numbers appointed by each Party for the purpose of
    AstraZeneca gaining from the experience and expertise of Palatin and for keeping
    Palatin updated on AstraZenecas activities in the Development Project. The
    IF shall meet annually on dates mutually agreed by the Parties at a location
    suitable to both parties or by teleconference, videoconference or by other
    jointly suitable means. Palatin and AstraZeneca each shall bear all expenses of
    its IF members related to such members participation on the IF and
    attendance at IF meetings.
| |  | ------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.3.3. |  | Palatin
shall cease any and all use of the Licensed Know How useful in the     Licensed
Field, the Collaboration Results, the AstraZeneca Background     Technologies, the
AstraZeneca Improvements and any other AstraZeneca     Confidential Information.
| |  | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.3.4. |  | Palatin
shall deliver or return, as applicable, all data, files, records and     other
materials in its possession or control containing or comprising all     AstraZeneca
Background Technologies, AstraZeneca Improvements and     AstraZenecas
Confidential Information (except one copy of     AstraZenecas Confidential
Information which may be retained by Palatin     solely for archival purposes).
| |  | ------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.3.5. |  | Palatins
obligation under Sections 4.3.1 through 4.3.4 shall, in addition     to, and without
limiting, what is stated therein, apply to each separate     Agreement Compound, when
the Research Collaboration has been completed for such     Agreement Compound, in
which situation such obligations shall refer to such     individual Agreement
Compound or Licensed Improvement thereon.
| |  | ------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.4. |  | Transfer
upon Termination of the Collaboration Term.
| | ---- |  | ----------------------------------------------------

| | Upon
expiration or termination of the Collaboration Term the following shall apply:
| | -----------------------------------------------------------------------------------

29

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| |  | 4.4.1. |  | Palatin
shall, and shall cause its Affiliates to, without additional   compensation, disclose
and make available to AstraZeneca, to the extent not done   so already, in whatever
form AstraZeneca may reasonably request, Regulatory   Documentation, copies of
Licensed Know-How, Collaboration Results and any other   Information claimed or
covered by any Collaboration Patent or Licensed Patent or   otherwise relating,
directly or indirectly, to any Agreement Compound, Licensed   Product or Licensed
Improvement, and thereafter and throughout the term of the   Agreement immediately
upon the earlier of the development, making, conception or   reduction to practice of
each such Regulatory Documentation, Licensed Know-How   or other Information.
| |  | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.4.2. |  | Palatins
obligation under Section 4.4.1 and under Section 4.4.4 shall, in   addition to, and
without limiting what is stated therein, apply to each separate   Agreement Compound
in which situation such obligations shall refer to such   Regulatory Documentation,
Licensed Know-How, Collaboration Results and   Information relating directly or
indirectly to that particular Agreement   Compound or Licensed Improvement thereon.
| |  | ------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.4.3. |  | Palatin
warrants that it will perform a reasonably diligent search for Licensed   Know-How and
Regulatory Documentation relevant to the safety, efficacy and   Exploitation of
Agreement Compounds and Licensed Products in existence as of the   termination or
expiration of the Collaboration Term and that all such located   Licensed Know-How and
Regulatory Documentation will be disclosed to AstraZeneca   upon termination or
expiration of the Collaboration Term.
| |  | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 4.4.4. |  | Palatin,
***, will provide AstraZeneca with all reasonable assistance required   in order to
transfer the Licensed Know-How to AstraZeneca in a timely manner   following
termination or expiration of the Collaboration Term. Without prejudice   to the
generality of the foregoing, if visits of Palatins representatives   to
AstraZenecas facilities are reasonably requested by AstraZeneca for   purposes
of transferring the Licensed Know-How to AstraZeneca or for purposes of   AstraZeneca
acquiring expertise on the practical application of the Licensed   Know-How or
assisting on issues arising during such Exploitation, Palatin will   send appropriate
representatives to AstraZenecas facilities, provided that   AstraZeneca shall
***.
| |  | ------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30

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|5. | Reports
|-- | -------

|5.1. | Research Collaboration Progress Reports. No later than *** prior to each
   quarterly meeting of the CMC, each Party shall provide the CMC with a detailed
   written progress report containing specifications and other information on all
   Collaboration Results generated and not previously reported to the CMC. The CMC
   may provide further instructions on the timing and content of these reports.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.2. | Copyrights. Copyrights to reports provided for hereunder are part of the
   Results. Neither Party shall, without the prior written approval of the other
   Party, attribute to the other Party any abstract or interpretation of any such
   report for sales or promotion purposes.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Development Project
|-- | -------------------

|6.1. | Diligence Obligations.
|---- | ----------------------

|6.1.1. | AstraZeneca undertakes to use Commercially Reasonable Efforts at its own cost
   and expense to develop a Licensed Product and to conduct all development
   necessary to obtain Health Registration Approvals for a Licensed Product for use
   in humans in each country listed in the definition of the Major Markets and
   throughout the Territory.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.1.2. | AstraZeneca undertakes to use Commercially Reasonable Efforts to commercialise a
   Licensed Product for use in humans in each of the Major Markets and throughout
   the Territory; provided, however, that such obligations are expressly
   conditioned upon Palatin and its Affiliates performing their respective
   obligations hereunder, including the completion of the activities under the
   Research Collaboration and the information disclosure requirements pursuant to
   Section 3.4, and such obligations of AstraZeneca shall be delayed or suspended
   to the extent any such condition causes a delay; and provided further, for the
   avoidance of doubt, that AstraZeneca shall not be obligated to obtain Health
   Registration Approval for, or commercialise, more than one Licensed Product in
   any Major Market and throughout the Territory. In the event that AstraZeneca
   decides to discontinue the development or commercialisation of a Licensed
   Product in favour of another Licensed Product, its obligations under this
   Section 6.1.2. shall cease with respect to such initial Licensed Product in
   favour of such other Licensed Product. AstraZeneca shall perform its obligation
   under this Section 6.1.2 in good scientific manner and in compliance in all
   material respects with all Applicable Law.
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

31

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|6.1.3. | Should the use by AstraZeneca of its Commercially Reasonable Efforts have as a
   consequence that AstraZeneca would be obligated to carry out some or all of the
   activities provided for in Section 6.1.1 or 6.1.2 in a country *** then
   AstraZeneca shall, notwithstanding what is stated in Sections 6.1.1 and 6.1.2
   and following consultation with Palatin, be allowed to ***.
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.1.4. | Upon satisfaction of its obligations under Sections 6.1.1 and 6.1.2, AstraZeneca
   shall be deemed to have satisfied all diligence obligations owed to Palatin
   hereunder, with respect to the Exploitation of the Agreement Compounds, Licensed
   Products or Collaboration Results, and shall have no other obligation, express
   or implied, to Exploit the Agreement Compounds, Licensed Products or
   Collaboration Results.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2. | Breach of Diligence Obligations.
|---- | --------------------------------

|6.2.1. | Notification and Meeting. If AstraZeneca is in material breach of its
   obligations under Section 6.1, then Palatin shall so notify AstraZeneca and the
   Parties shall meet within *** after such notice to discuss in good faith
   AstraZenecas development and commercialisation plans with respect to the
   Agreement Compound and Licensed Product.
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2.2. | Right of Termination. If, after such good faith discussions mentioned in
   Section 6.2.1, (a) AstraZeneca is in breach of its obligations under Section
   6.1, and (b) AstraZeneca does not take reasonable steps designed to rectify such
   breach within *** of meeting with Palatin pursuant to Section 6.2.1 (or, if such
   failure cannot be rectified within such *** period, if AstraZeneca does not
   commence actions to rectify such breach within such period and thereafter
   diligently pursues such actions), Palatin may exercise its right of termination
   provided under Section 20.5.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

32

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|6.3. | Reporting. Following termination or expiration of the Research
   Collaboration AstraZeneca shall provide Palatin in reasonable connection with
   the meetings in the IF with a semi-annual report on the development of Licensed
   Products in the Territory (the Development Report) in order
   to keep Palatin informed of its progress. Such report shall cover, in relation
   to Agreement Compounds and Licensed Products, general information on
   AstraZenecas development activities in the previous ***, a summary of the
   activities planned in the next *** and a timetable of planned submissions for
   Health Registration Approvals. If and when a Health Registration Approval is
   obtained in any country of the Territory, AstraZeneca shall promptly inform
   Palatin thereof.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Ownership and Grant of Rights
|-- | -----------------------------

|7.1. | Ownership of Collaboration Results and Development Results. AstraZeneca
   shall exclusively own all Collaboration Results and Development Results, for the
   avoidance of doubt including any Collaboration Compounds. Palatin shall promptly
   disclose to AstraZeneca in writing the development, making, conception or
   reduction to practice of any Collaboration Results and Development Results and
   shall, and does hereby, assign, and shall cause its Affiliates and its and their
   employees and agents, as applicable, to so assign, to AstraZeneca, without
   additional compensation, such right, title and interest in and to any such
   results. Assignment and transfer of all Collaboration Results and Development
   Results shall occur instantly and automatically upon the development, making,
   conception or reduction to practice of such results and technologies, as the
   case may be, and shall not require any further deeds or documents to be
   exchanged between the Parties.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.2. | AstraZeneca Improvements. AstraZeneca shall exclusively own all
   AstraZeneca Improvements and AstraZeneca Patents. Palatin shall promptly
   disclose to AstraZeneca in writing the development, making, conception or
   reduction to practice of any Results that constitute AstraZeneca Improvements,
   and shall, and does hereby, assign, and shall cause its Affiliates and its and
   their employees and agents, as applicable, to so assign, to AstraZeneca, without
   additional compensation, such right, title and interest in and to any such
   Results. Assignment and transfer of all such Results shall occur instantly and
   automatically upon the development, making, conception or reduction to practice
   of such Results, as the case may be, and shall not require any further deeds or
   documents to be exchanged between the Parties.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

33

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|7.3. | Ownership of Collaboration Patents.
|---- | -----------------------------------

|7.3.1. | For the avoidance of doubt, AstraZeneca shall exclusively own all Collaboration
   Patents, provided that, in the sole discretion of AstraZeneca title to any
   Collaboration Patents developed, made, conceived, reduced to practice or
   otherwise generated through work performed under the Research Collaboration or
   in connection with this Agreement by Palatin or by the Parties jointly may be
   partially or wholly in Palatin, in which event Palatin shall, and does hereby,
   grant to AstraZeneca a perpetual, exclusive (including with regard to Palatin
   and its Affiliates), right and license in the Territory, with the right to grant
   sublicenses, under Palatins right, title and interest in and to the
   Collaboration Patents and Collaboration Compounds and Improvements thereto.
   Palatin shall, and does hereby, assign, and shall cause its Affiliates and its
   and their employees and agents, as applicable, to so assign to AstraZeneca (or
   its designee), without additional compensation, such right, title and interest
   in and to any such Collaboration Patents.
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.3.2. | ***.
|------ | ----

|7.4. | Improvements outside the Research Collaboration.
|---- | ------------------------------------------------

|7.4.1. | Palatin shall without delay disclose to AstraZeneca any Licensed Improvements
   Controlled by Palatin or its Affiliates during any period in which AstraZeneca
   owes royalties to Palatin pursuant to Section 11.1 and provide AstraZeneca with
   all relevant Information and materials with respect to such Licensed
   Improvements. AstraZeneca shall have the right, at any time, to reject any such
   Licensed Improvement on written notice to Palatin, in which event, this
   Agreement shall cease to apply to such Licensed Improvement.
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

34

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|7.4.2. | All Licensed Improvements shall automatically be included within the scope of
   this Agreement, subject to AstraZenecas right to reject any such Licensed
   Improvement pursuant to Section 7.4.1. Any Information with respect to such
   Licensed Improvements that is not covered or claimed by a Patent and *** shall
   be considered Licensed Know-How. Any Patents to the extent covering Licensed
   Improvements shall be considered Licensed Patents.
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.5. | License Grants by Palatin to AstraZeneca.
|---- | -----------------------------------------

|7.5.1. | Palatin hereby grants to AstraZeneca a perpetual, exclusive (including with
   regard to Palatin and its Affiliates), subject to a retained right thereto for
   the sole purpose of Palatin carrying out its obligations under the Research
   Collaboration, right and license in the Territory, with the right to grant
   sublicenses, under Palatins right, title and interest in and to the
   Compounds, the Licensed Products, the Licensed Patents, the Licensed Know-How
   and the Licensed Improvements to use and otherwise Exploit the Compounds, the
   Licensed Products, the Licensed Patents, the Licensed Know-How and the Licensed
   Improvements for use within the Licensed Field (the License).
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.5.2. | Prior to initiation of any research or development program outside the Licensed
   Field by Palatin ***, will be utilized, Palatin will ***.
|------ | --------------------------------------------------------------------------------------------------------------------------------------------

|7.5.3. | Notwithstanding any other provision herein, Palatin may not, directly or through
   any Third Party, use or otherwise Exploit any Compound or Licensed Product used
   or useful in the Licensed Field, other than in carrying out its obligations
   under the Research Collaboration.
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.6. | License Grants to Palatin. AstraZeneca hereby grants to Palatin a
   non-exclusive right and license, without the right to grant sublicenses, under
   AstraZenecas rights, titles, and interests in and to the AstraZeneca
   Background Technologies, the AstraZeneca Improvements, the AstraZeneca Patents,
   the Collaboration Patents and the Collaboration Results that are disclosed or
   otherwise provided by AstraZeneca to, or discovered by, Palatin during the
   Collaboration Term (a) for the purpose of Palatin performing the Research
   Collaboration during the Collaboration Term solely to the extent required for
   such purpose, and (b) to use and otherwise Exploit such AstraZeneca Background
   Technologies and AstraZeneca Improvements as necessary or useful to exercise
   Palatins rights under the grant under (a).
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

35

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|7.7. | Sublicenses. AstraZeneca shall have the right to grant licenses or
   sublicenses, through multiple tiers of licensees, under the licenses granted, or
   under AstraZenecas rights pursuant to Section 7.3, to its Affiliates and
   to any other Persons in the Territory or in any country of the Territory. Where
   AstraZeneca grants such a license or sublicense to a Person other than to an
   Affiliate of AstraZeneca, and such Person is not a Distributor, such Person
   shall be a Sublicensee for purposes of this Agreement. AstraZeneca
   shall ensure that all Persons to which it grants licenses or sublicenses will
   comply with all terms and conditions of this Agreement and AstraZeneca shall
   remain liable for any breach of this Agreement by a Sublicensee. AstraZeneca
   shall provide notice of the granting of any license or sublicense hereunder
   promptly following the making of such grant. Such notice shall identify the
   Sublicensee, the territory of the license or sublicense and a copy of those
   provisions of the license or sublicense that relate to performance of this
   Agreement.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.8. | Distributorships. AstraZeneca shall have the right, in its sole
   discretion, to appoint its Affiliates, and AstraZeneca and its Affiliates shall
   have the right, in their sole discretion, to appoint any other Persons, in the
   Territory or in any country of the Territory, to distribute, market and sell the
   Licensed Products (with or without packaging rights), in circumstances where the
   Person purchases its requirements of Licensed Products from AstraZeneca or its
   Affiliates but does not otherwise make any royalty or other payment to
   AstraZeneca with respect to its IP Protection Rights. Where AstraZeneca or its
   Affiliates appoints such a Person that is not an Affiliate of AstraZeneca, that
   Person shall be a Distributor for purposes of this Agreement. The
   term packaging rights in this Section 7.8 shall mean the right for
   the Distributor to package Licensed Products supplied in unpackaged bulk form
   into individual ready-for-sale packs.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.9. | Co-Promotion Rights. For the avoidance of doubt, AstraZeneca and its
   Affiliates shall have the right, in their sole discretion, to co-promote the
   Licensed Products with any other Person, or to appoint one or more Third Parties
   to promote the Licensed Products without AstraZeneca carrying out any promotion
   in all or any part of the Territory.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

36

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|7.10. | Covenant Not to Sue. Neither Palatin nor any of its Affiliates shall
   ever, anywhere in the world, institute or prosecute (or in any way aid any Third
   Party in instituting or prosecuting), at law or in equity, any claim, demand,
   action or cause of action for damages, costs, expenses or compensation, or for
   an enjoinment, injunction, or any other equitable remedy, against AstraZeneca,
   its Affiliates, Sublicensees, suppliers, Distributors, vendors or customers
   alleging the infringement by AstraZeneca in its Exploitation of the Compounds,
   the Licensed Patents, the Licensed Know-How, the Licensed Improvements, the
   Collaboration Compounds, the Collaboration Patents or the Licensed Products or
   of any Patent that claims an invention that is based on, derived from or
   otherwise relates to the Results and is Controlled by Palatin or its Affiliates,
   so long as such Exploitation is in accordance with this Agreement. In
   Palatins or its Affiliates agreements with any licensees, assignees
   or transferees of such Patent, Palatin or its Affiliate, as applicable, shall
   ***. Palatin and its Affiliates will take all reasonable action (including
   signing required documents) and offer full cooperation to allow AstraZeneca to
   ***, to the extent permitted by Applicable Law.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.11. | No Conflicts. Within the scope of the Research Collaboration, and to the
   extent Applicable Law permits Palatin to conduct research and development
   activities with respect to Agreement Compounds or Licensed Products
   notwithstanding the exclusive license grants to AstraZeneca under Section 7.5,
   Palatin agrees that neither it nor its Affiliates will publish or present any
   material or file any Patent applications with respect to such activities without
   the consent of AstraZeneca.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.12. | Exclusivity Term. AstraZenecas exclusive position granted by
   Section 7.5 shall expire with respect to each separate Licensed Product, on a
   country-by-country basis, on the date when AstraZenecas obligation to pay
   royalties with respect to such Licensed Product pursuant to this Agreement
   expires. Upon expiration of the royalty term set forth in Section 11.7 with
   respect to a Licensed Product in a country, AstraZenecas license with
   respect to such Licensed Product in such country shall become non-exclusive,
   fully paid-up, perpetual and irrevocable and the Net Sales of such Licensed
   Product in such country shall be excluded from the royalty calculations in
   Section 11.1 (including the thresholds and ceilings) or 11.4, as applicable.
   AstraZeneca and its Affiliates and Sublicensees following such expiration shall
   be allowed to continue Exploiting such Licensed Product and using all Licensed
   Know How, Licensed Patents in the Licensed Field, Licensed Improvements and
   Collaboration Results in connection therewith on a non-exclusive basis in such
   country with no further consideration to Palatin.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

37

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|7.13. | Collaboration Materials. The Parties agree that: (a) all Collaboration
   Materials provided by one Party to the other (including compounds) shall be used
   by the receiving Party (i) solely for the activities under the Research
   Collaboration as provided in the Research Plan, or (ii) in the case of
   AstraZeneca as the receiving Party, in the Exploitation of the Agreement
   Compounds and Licensed Products, and (iii) in either case, in material
   compliance with all Applicable Law; (b) subject to what is stated in Article 18,
   all such Collaboration Materials shall be provided without any warranties,
   express or implied; (c) the Party providing such Collaboration Materials shall
   obtain (or cause its Third Party collaborators to obtain or certify that they
   have obtained) all appropriate and required consents from the source of such
   Collaboration Materials; (d) Collaboration Materials provided by one Party to
   the other Party shall not be made available by such other Party to any Third
   Party except as expressly provided in the Research Plan or as necessary or
   useful for the Exploitation of the Agreement Compounds or Licensed Products by
   AstraZeneca, unless the prior written consent of the Party providing such
   Collaboration Materials is first obtained; and (e) subject to the license grants
   and assignments in the other provisions of this Article 7 and other provisions
   in this Agreement, as between the Parties, all right, title and interest in and
   to the Collaboration Materials shall be, and remain, vested in the Party that
   provided such Collaboration Materials.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.14. | Regulatory Documentation. All INDs and regulatory filings shall be ***.
   Furthermore, in the event that in response to the submission of an IND, the
   Regulatory Authority poses questions to *** or otherwise requires additional
   data, *** shall cooperate to meet and confer as required to formulate an action
   plan in response to such request. *** may from time to time during the Term of
   this Agreement reasonably request *** to make, at ***, applications for an IND
   or other regulatory approvals whether in *** or in *** or any of its *** name
   and *** undertakes to comply with any such reasonable request. Without
   exception, *** will, as between *** and ***, be the owner of any Regulatory
   Documentation relating to any applications for an IND or regulatory approvals
   (including IND applications and approvals). *** shall upon the request by ***
   promptly transfer any IND and Regulatory Documentation to ***.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38

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|8. | Confirmatory Patent Licenses
|-- | ----------------------------

| | Palatin
shall if requested to do so by AstraZeneca promptly enter into confirmatory license
agreements in the form or substantially in the form set out in Schedule 8 for
purposes of recording the licenses granted under this Agreement with such patent offices
in the Territory as AstraZeneca considers appropriate. Until the execution of any such
confirmatory licenses, so far as may be legally possible, Palatin and AstraZeneca shall
have the same rights and be under the same obligations to each other in all respects as if
the said confirmatory licenses had been executed.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | Research Funding
|-- | ----------------

|9.1. | Funding. Each Party shall assume responsibility for *** for the Research
   Collaboration, except that AstraZeneca shall provide ***.
|---- | -------------------------------------------------------------------------------------------------------------------------------------

|9.2. | Invoices. Within *** after the end of each Calendar Quarter, Palatin
   shall invoice AstraZeneca for amounts due to Palatin from AstraZeneca pursuant
   to Section 9.1 based on the ***, approved by AstraZeneca, for the ensuing
   Calendar Quarter. Each invoice shall be sent to AstraZeneca AB, AstraZeneca
   R&D Mölndal, Finance / Accounting, SE-431 83 Mölndal, Sweden with
   the attention of *** or such other individual that AstraZeneca may designate by
   providing Palatin written notice (provided, however, that the attention of ***
   or such other individual designated by AstraZeneca should not be included in the
   address section of the invoice) and shall be accompanied by a forecast *** to be
   provided by Palatin in the Research Collaboration during such ensuing Calendar
   Quarter and a report from *** costs spent in relation to the Research
   Collaboration during the immediately preceding Calendar Quarter, if any. No
   later than thirty (30) days after the end of each Collaboration Year Palatin
   shall send a report relating to the FTEs provided by Palatin and budgeted and
   approved Third Party costs paid by Palatin to the Research Collaboration during
   such Collaboration Year. Without prejudice to any other remedy available to
   AstraZeneca, any amount paid by AstraZeneca for which Palatin has not provided
   the corresponding number of FTEs or paid budgeted and approved Third Party Costs
   during such Collaboration Year may be deducted by AstraZeneca from subsequent
   payments to be made by AstraZeneca to Palatin for FTE funding hereunder and, if
   necessary to recover the amount, from milestone payments and royalty payments.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

39

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| | Each
invoice shall be payable to Palatin within *** after receipt by ***, or such other
individual designated by AstraZeneca, at AstraZeneca AB, AstraZeneca R&D Mölndal,
Finance / Accounting, SE-431 83, Mölndal, Sweden, of a correct invoice with
supporting documentation. Payment shall be made to such bank account as Palatin shall have
notified AstraZeneca in writing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3. |  | Records Retention; Audit.
|---- |  | -------------------------

|9.3.1. |  | Palatin shall keep or cause to be kept accurate records or books of account in
    accordance with applicable generally accepted accounting principles that, in
    reasonable detail, fairly reflect the reimbursable FTEs. Such books and records
    shall include attendance records (specifically including name and hours for each
    attendee), records of the allocation of FTEs to the Research Collaboration, and
    the accomplishment of activities measured against the Research Plan, and shall
    be maintained by Palatin for *** following the end of the Calendar Year to which
    they pertain or such longer period of time required by Applicable Law.
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3.2. |  | Upon the written request *** shall permit a certified public accountant or a
    person possessing similar professional status and associated with an independent
    accounting firm reasonably acceptable to the Parties to inspect during regular
    business hours and no more than once a year and going back *** after receipt of
    the respective invoice and report pursuant to Section 9.2, all or any part of
    *** necessary to verify such invoices and reports. The accounting firm shall
    enter into appropriate obligations with *** to treat all information it receives
    during its inspection in confidence. The accounting firm shall disclose to ***
    only whether such invoices and reports are correct and details concerning any
    discrepancies, but no other information shall be disclosed to ***. The charges
    of the accounting firm shall be paid by ***, except that if the FTEs allocated
    were less than *** of what was required from Palatin during the period under
    review or if otherwise the reimbursable Research Collaboration expenses have
    been overstated by more than ***, the charges shall be ***. Any failure by
    AstraZeneca to exercise its right under this Section 9.3.2 *** shall constitute
    a waiver by AstraZeneca of its right to later object to any invoice submitted by
    Palatin under this Agreement during such Calendar Year.
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

40

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|10. |  | Consideration
|--- |  | -------------

|10.1. |  | Total Obligation. The milestone payments and royalty payments payable by
    AstraZeneca to Palatin pursuant to this Article 10 and Article 11, together with
    the funding to be provided by AstraZeneca to Palatin pursuant to Article 9,
    represent all of AstraZenecas financial obligations to Palatin hereunder
    and Palatin shall not be entitled to any additional compensation or remuneration
    from AstraZeneca under this Agreement. In consideration of the licenses and
    other rights granted by Palatin to AstraZeneca herein and subject to the terms
    and conditions of this Agreement, AstraZeneca shall make the following payments
    to Palatin:
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.1.1. |  | Initial Investment Fee. AstraZeneca shall pay to Palatin ten million U.S.
    Dollars ($10,000,000) within *** of the Effective Date.
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------

|10.1.2. |  | Development Milestones. Within *** days of achievement of each respective
    milestone as described in this Section 10.1.2 for the first Agreement Compound
    or Licensed Product, whichever is applicable, to meet such milestone,
    AstraZeneca shall, after receipt of an invoice, in each case, make the
    corresponding payment to Palatin.
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | 10.1.2.1 |  | ***
Agreement Compounds or Licensed Product.
| |  | -------- |  | --------------------------------------------

| |  |  | A) |  | Development
Milestones for *** Agreement Compounds
| |  |  | -- |  | --------------------------------------------------

| |  |  |  | i) | ***
U.S. Dollars ***; or | 
| |  |  |  | -- | ------------------------ | 

| |  |  |  | ii) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ---- | ------------------------- | 

| |  |  |  | iv) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | v) | ***
U.S. Dollars ***. | 
| |  |  |  | -- | --------------------- | 

41

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| | For
the sake of clarity, with respect to the milestones set forth above in clauses (i) and
(ii) above, payment shall be made only upon the achievement of the first one of those two
milestones.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | B) |  | Regulatory
Milestones for Licensed Products
| |  |  | -- |  | -------------------------------------------

| |  |  |  | i) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | ii) | ***
U.S. Dollars ***: and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ---- | ------------------------- | 

| |  |  |  | iv) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | v) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | vi) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | vii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ---- | ------------------------- | 

| |  |  |  | viii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ----- | ------------------------- | 

| |  |  |  | ix) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | x) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | xi) | ***
U.S. Dollars ***. | 
| |  |  |  | --- | --------------------- | 

| |  |  | C) |  | Commercial
Milestones for Licensed Product on Annual Net Sales. At the   end of the Calendar
Quarter in which the Annual Net Sales of *** under a Health   Registration Approval
exceeds for the first time each respective milestone set   forth below, AstraZeneca
shall make the corresponding payment to Palatin, as   follows
| |  |  | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | i) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | ii) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***. | 
| |  |  |  | ---- | --------------------- | 

| | For the avoidance of doubt, in order to qualify for a payment under subsections (i) through
(iii) above, the Annual Net Sales may ***, but no milestone shall be payable more than
once no matter *** achieve such milestone.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

42

---

| |  | 10.1.2.2 |  | ***
Agreement Compounds or Licensed Product.
| |  | -------- |  | --------------------------------------------

| |  |  | A) |  | Development
Milestones for *** Agreement Compounds
| |  |  | -- |  | --------------------------------------------------

| |  |  |  | i) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | ii) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***. | 
| |  |  |  | ---- | --------------------- | 

| |  |  | B) |  | Regulatory
Milestones for *** Licensed Products
| |  |  | -- |  | -----------------------------------------------

| |  |  |  | i) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | ii) | ***
U.S. Dollars ***: and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ---- | ------------------------- | 

| |  |  |  | iv) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | v) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | vi) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | vii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ---- | ------------------------- | 

| |  |  |  | viii) | ***
U.S. Dollars ***; and | 
| |  |  |  | ----- | ------------------------- | 

| |  |  |  | ix) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | x) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | xi) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

|10.1.3. |  | Commercial Milestones on Aggregate Net Sales. At the end of the Calendar
    Quarter in which the cumulative Net Sales of a Licensed Product under a Health
    Registration Approval exceeds for the first time each respective milestone set
    forth below, AstraZeneca shall make the corresponding payment to Palatin, as
    follows.
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

43

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| |  |  |  | i) | ***
U.S. Dollars ***; and | 
| |  |  |  | -- | ------------------------- | 

| |  |  |  | ii) | ***
U.S. Dollars ***; and | 
| |  |  |  | --- | ------------------------- | 

| |  |  |  | iii) | ***
U.S. Dollars ***. | 
| |  |  |  | ---- | --------------------- | 

| | For
the avoidance of doubt, in order to qualify for a payment under subsections (i) through
(iii) above, the Net Sales shall emanate from any Licensed Product, but no milestone is
payable more than once no matter how many Licensed Products achieve such milestone.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2. | Milestone Payments.
|----- | -------------------

|10.2.1. | If a milestone payment set forth under Section 10.1.2.1 (A) or (B), i.e. for ***
   Agreement Compounds or Licensed Products, has been made or is due by
   AstraZeneca, the corresponding milestone payment set forth under Section
   10.1.2.2, i.e. for *** Agreement Compounds or Licensed Products, shall be
   reduced with the sum already paid or due to be paid for such *** Agreement
   Compound or Licensed Product, whichever is applicable. For example and the sake
   of clarity, if AstraZeneca has paid *** as a development milestone for ***
   Agreement Compounds regarding *** shall be deducted from the development
   milestone regarding the *** Agreement Compound and AstraZeneca shall pay ***
   under Section 10.1.2.2 A) ii). Further, if a milestone payment set forth under
   ***, has been made or is due by AstraZeneca, the milestone payments set forth
   under Section 10.1.2.2, i.e. for *** Agreement Compounds or Licensed Products,
   shall be reduced with the sum already paid or due to be paid for such ***
   Agreement Compound or Licensed Product.
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2.2. | Each of the payments set forth in Sections 10.1.2 and 10.1.3 shall be made by
   AstraZeneca no more than once under this Agreement, collectively amounting to an
   aggregate maximum amount of U.S. $300,000,000 for an *** Agreement Compound or
   Licensed Product, or, in case the payment under Section 10.1.2.1(A)(ii) becomes
   payable, *** less, or U.S.$ 300,000,000 for an *** Agreement Compound or
   Licensed Product, irrespective of the number of CDs, Agreement Compounds and
   Licensed Compounds that have achieved the milestone events set forth in Section
   10.1, or the number of countries or Major Markets in which such milestone events
   have been achieved.
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

44

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|10.3. | Diagnostic or Veterinary Products. AstraZeneca shall not be required to
   make milestone payments in respect of products that have applications only as
   diagnostic tools (with no associated medical therapy or prophylaxis use) or for
   veterinary or agricultural use, other than as provided in Section 11.2.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | Royalty Payments and Other Payment-Related Provisions
|--- | -----------------------------------------------------

|11.1. | Royalties. AstraZeneca shall pay Palatin, with respect to each Licensed
   Product, the following running royalties on the Annual Net Sales of Licensed
   Products (provided that calculations for the Combination Products are to be made
   in accordance with the formula set out in Section 11.3 and provided further that
   calculations for Sublicensee income are to be made in accordance with Section
   11.4):
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.1.1. |  | ***
on the portion of Annual Net Sales not exceeding ***; and
| | ------- |  | -------------------------------------------------------------

| | 11.1.2. |  | ***
on the portion of Annual Net Sales ***; and
| | ------- |  | -----------------------------------------------

| | 11.1.3. |  | ***
on the portion of Annual Net Sales ***; and
| | ------- |  | -----------------------------------------------

| | 11.1.4. |  | ***
on the portion of Annual Net Sales ***; and
| | ------- |  | -----------------------------------------------

| | 11.1.5. |  | ***
on the portion of Annual Net Sales ***; and
| | ------- |  | -----------------------------------------------

| | 11.1.6. |  | ***
on the portion of Annual Net Sales ***.
| | ------- |  | -------------------------------------------

| | The
calculation of royalties under this Section 11.1 shall be ***. Thus, if AstraZeneca sells
more than one Licensed Product in the Territory, ***.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

45

---

|11.2. | Diagnostic or Veterinary Products. The royalties in Section 11.1 shall
   not apply to Net Sales for diagnostic, veterinary or agricultural use. Further,
   Net Sales shall not include Licensed Products that are used (a) in animals or
   (b) solely for screening patients who have been diagnosed with a disease, state
   or condition for eligibility to be treated for such disease, state or condition
   with a Licensed Product or for monitoring patients who are or have been treated
   with a Licensed Product. In the event that AstraZeneca develops a Licensed
   Product for commercial diagnostic or veterinary or agricultural purposes, the
   Parties shall negotiate *** adjustment to such milestones and royalties for the
   sale of such Licensed Product that reflects the commercial potential of such
   Licensed Product and standard commercial terms in the industry for diagnostic,
   veterinary or agricultural products, as applicable.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.3. | Combination Products. With respect to Combination Products, the Net Sales
   used for the calculation of the milestones under Sections 10.1.2.1 C) and
   10.1.3, and the royalties under this Section 11.1 shall be determined as
   follows:
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | A   xA + B | Net Sales of the Combination Product, where:
| | ---------- | --------------------------------------------

| | A = | *** of the Product, containing the ***, in the given country.
| | --- | -------------------------------------------------------------

| | B = | *** of the ready-for-sale form of a product containing the ***, in
the given country.
| | --- | -------------------------------------------------------------------------------------

| | In
the event, however, that if, in a specific country, (a) the other therapeutically active
ingredient(s) in such Combination Product are not sold separately in such country, Net
Sales shall be adjusted by multiplying *** of such Combination Product by the fraction
A/C, where C is the ***, and (b) if a Product containing such Agreement Compound(s) is not
sold separately, Net Sales shall be calculated by multiplying actual Net Sales of such
Combination Product by the fraction C-B/C, where B is the *** and C is the ***. The
standard sales price for the Product containing such Agreement Compound(s) and for each
other active ingredient shall be for a quantity comparable to that used in such
Combination Product and of the same class, purity and potency. If, in a specific country,
both a Product containing the Agreement Compound(s) and a product containing the other
active ingredients in such Combination Product are not sold separately, *** shall be
negotiated by the Parties in good faith based upon the costs, overhead and profit as are
then incurred for such Combination Product and all products then being *** and having an
*** to such Product or such other active ingredients, as applicable. If, in a specific
country, the foregoing calculations do not fairly represent the *** included in a
Combination Product, the allocation of Net Sales for such Combination Product shall be
negotiated by the Parties in good faith.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

46

---

|11.4. | Sublicensees. In the event that AstraZeneca receives royalties from
   Sublicensees with respect to sales of Licensed Product by Sublicensees to Third
   Parties for ***, AstraZeneca shall nonetheless pay royalties to Palatin based on
   the Net Sales of each such Sublicensee as if such Net Sales were made by
   AstraZeneca. For all other countries, such royalty income of AstraZeneca shall
   be *** of any upfront payment, license fees or milestone payments or other
   similar revenue or payments made to AstraZeneca or its Affiliates in connection
   with each sublicense with respect to the Licensed Product for ***, shall be
   included in the Net Sales and royalties shall be paid thereon, without regard to
   whether any First Commercial Sale of a Licensed Product has yet occurred, and
   without triggering the royalty term set forth in Section 11.7, unless, for the
   avoidance of doubt, such royalty term would have become triggered anyway
   pursuant to the terms of this Agreement.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.5. | Reduction of Royalty.
|----- | ---------------------

| | 11.5.1. |  | Competition.
| | ------- |  | ------------

| |  | (a) |  | In
the event that, in a country in the Territory, generic competition, not
   expressly authorized by AstraZeneca, with respect to a Licensed Product occurs
   by products having the same active compound as the Agreement Compound included
   in such Licensed Product (each such product, a Competing
   Product), then for the purposes of calculating the royalties of such
   Licensed Product under Section 11.1, *** of the Net Sales in such country shall
   be disregarded, to the extent that the market share, in volume, of the
Competing   Product exceeds *** in such country.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Should
the situation contemplated in Section 11.5.1 (a) occur in a country   following
the expiration of the period stated in Section 11.7.1 (a) or 11.7.2   (a), as
applicable, for such country then for the purposes of calculating the   royalties
of such Licensed Product under Section 11.1 *** of the Net Sales in   such
country shall be disregarded.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

47

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| |  | (c) |  | The
calculation of the royalty reduction under this Section 11.5.1 shall be
   conducted separately for each Licensed Product where each separate Licensed
   Product is deemed to be all Licensed Products based on the same new chemical
   entity.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) |  | If
the number of units sold of a Competing Product represents ***, of the
   aggregate number of units sold in a Calendar Year of all products within the
   same ATC class as the Licensed Product concerned, including Licensed Products,
   in a country in the Territory as reported by IMS or any comparable reporting
   agency, then AstraZeneca shall have the right to withdraw the relevant Licensed
   Product from sale in the country, but such withdrawal shall not constitute a
   termination of AstraZenecas rights to such Licensed Products in that
   country.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5.2. |  | Compulsory
Licenses. In the event that a court or a governmental agency   of competent
jurisdiction requires AstraZeneca or an Affiliate of AstraZeneca or   a
Sublicensee to grant a compulsory license to a Third Party permitting such
   Third Party to make and sell the Licensed Product in a country in the
Territory,   then for the purposes of calculating the royalties of such Licensed
Product   under Section 11.1, any product permitted under such license shall be
*** and   Palatin shall receive royalties on any royalty income from such
compulsory   license as provided in Section 11.4.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5.3. |  | No
Valid Claim. In the event that, and in such case from and after the   date on
which, a Licensed Product is Exploited in a country and is not covered   by a Valid
Claim in such country, then for the purposes of calculating the   royalties of such
Licensed Product under Section 11.1, *** of the Net Sales in   such country shall be
disregarded; provided, however, that no Net Sales will be   disregarded under this
Section 11.5.3 for any Licensed Product in a country for   which *** of the Net Sales
are disregarded pursuant to Section 11.5.1 (a). The   calculation of the royalty ***
under this Section 11.5.3 shall be conducted   separately for each Licensed Product.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

48

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| | 11.5.4. |  | Order
of Royalty Reduction and Maximum Reduction. Any reductions set   forth in
this Section 11.5 and in Section 11.6 shall be applied to the royalty   rate
payable to Palatin under Section 11.1 in the order in which the event
   triggering such reduction occurs. Notwithstanding anything to the contrary
   herein, the maximum aggregate reduction in royalties and Net Sales in any
   Calendar Quarter shall not result *** of the royalty otherwise payable absent
   such reductions; provided, however and for the avoidance of doubt, that this
   restriction shall be applied on the aggregate royalties and Net Sales in any
   Calendar Quarter and not on a country by country basis.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.6. | Royalty Stacking.
|----- | -----------------

| | 11.6.1. |  | For
Licensed Products sold by AstraZeneca or its Affiliates to Third Parties
   (including Distributors), where the sum of royalty payments owed by AstraZeneca
   and its Affiliates to Palatin and any Third Parties exceeds *** of Net Sales
for   a given Licensed Product, the royalty rate payable to Palatin shall be ***
such   that the aggregate royalty rate payable on such Licensed Product, were all
Third   Party royalties similarly ***, does not exceed *** of Net Sales thereof.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.6.2. |  | In
the case of a Licensed Product developed or commercialised by a Sublicensee   of
AstraZeneca, where the payment of royalties by AstraZeneca to Palatin is   based
upon Net Sales of the Sublicensee, the royalty *** set forth   in
Section 11.5 and Section 11.6.1, to the extent applicable, will apply.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.7. | Royalty Term. AstraZenecas obligation to pay royalties on each
   Licensed Product shall commence, on a country-by-country basis, with respect to
   each separate Licensed Product, on the date of First Commercial Sale of such
   Licensed Product in such country. The obligation shall expire, on a
   country-by-country basis, with respect to each separate Licensed Product:
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.7.1. |  | in
the case of ***, on the later to occur of (a) the *** of the First Commercial
   Sale of the Licensed Product concerned *** and (b) the expiration date in such
   country of the *** to expire of any issued Licensed Patent or Collaboration
   Patent that includes at least one Valid Claim covering the sale of such
separate   Licensed Product in such country; or
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.7.2. |  | in
the case of ***, on the later to occur of (a) the *** of the First Commercial
   Sale of the Licensed Product concerned in such country and (b) the expiration
   date in such country of the *** to expire of any issued Licensed Patent or
   Collaboration Patent that includes at least one Valid Claim covering the sale
of   such separate Licensed Product in such country.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

49

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|11.8. | Sales Subject to Royalties. Sales between AstraZeneca, its Affiliates and
   Sublicensees shall not be subject to royalties hereunder. Royalties shall be
   calculated on AstraZenecas, its Affiliates and Sublicensees
   sale of the Licensed Products to a Third Party (including Distributors). Royalty
   shall be payable only once for a given Licensed Product. For purposes of
   determining Net Sales, the Licensed Product shall be deemed to be sold when ***
   and a sale shall not include, and no royalties shall be payable on,
   transfers by AstraZeneca, its Affiliates or Sublicensees of free samples of
   Licensed Products or *** containing Agreement Compounds or other transfers or
   dispositions for *** where AstraZeneca receives no compensation or identifiable
   benefit therefrom.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.9. | Royalty Payments. The royalties shall be calculated quarterly as of the
   last day of March, June, September and December respectively, for the Calendar
   Quarter ending on that date. AstraZeneca shall pay the royalties in conjunction
   with the delivery of a written report to Palatin within *** days after the end
   of each Calendar Quarter that shows, with respect to each country and each
   Product, the sales volume and Net Sales during such Calendar Quarter.
   Preliminary reports of Net Sales for each calendar month shall be forwarded to
   Palatin within *** days of the end of each calendar month.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.10. | Currency. All payments required under this Agreement shall be made in
   U.S. Dollars. For the purpose of computing the Net Sales of Products sold in a
   currency other than U.S. Dollars, such currency shall be converted from local
   currency to U.S. Dollars by AstraZeneca in accordance with the rates of exchange
   for the relevant month for converting such other currency into U.S. Dollars used
   by AstraZenecas internal accounting systems, which are independently
   audited on an annual basis.
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.11. | Records Retention; Audit.
|------ | -------------------------

50

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| | 11.11.1. |  | Until
the *** of the Calendar Year in which a Licensed Product is sold,   AstraZeneca
shall keep or cause to be kept accurate records or books of account   in
accordance with applicable generally accepted accounting principles showing   the
information that is necessary for the accurate determination of the   royalties
due hereunder with respect to the sale of such Licensed Product.
| | -------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.11.2. |  | Upon
the written request of Palatin, AstraZeneca shall permit a certified public
   accountant or a person possessing similar professional status and associated
   with an independent accounting firm reasonably acceptable to the Parties to
   inspect during regular business hours and no more than *** and going back no
   more than *** preceding the current year, all or any part of AstraZenecas
   records and books necessary to check the accuracy of the royalties paid. The
   accounting firm shall enter into appropriate obligations with AstraZeneca to
   treat all information it receives during its inspection in confidence. The
   accounting firm shall disclose *** only whether the royalty reports are correct
   and details concerning any discrepancies, but no other information shall be
   disclosed to ***. *** shall pay the charges of the accounting firm, except that
   if the royalties have been understated by ***, the charges shall be paid by
***.   Any failure by Palatin to exercise its right under this Section 11.11.2
with   respect to a Calendar Year within the time period allotted therefore shall
   constitute a waiver by Palatin of its right to later object to any payments
made   by AstraZeneca under this Agreement during such Calendar Year.
| | -------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.12. | Mode of Payment. All payments set forth in Articles 10 and 11 shall be
   remitted by wire transfer to the following bank account of Palatin or such other
   account as Palatin may designate in writing, pursuant to Article 26, to
   AstraZeneca:
   Palatin Technologies Inc.
   ***
|------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | Taxes
|--- |  | -----

|12.1. |  | General. The royalties, milestones and other amounts payable by
    AstraZeneca to Palatin pursuant to this Agreement (Payments) shall
    not be reduced on account of any taxes unless required by Applicable Law.
    Palatin, when receiving such Payments, shall pay any and all taxes required by
    Applicable Law that are levied on account of such Payments. If Applicable Laws
    require that taxes be withheld, AstraZeneca will (a) deduct those taxes from the
    remittable Payment, (b) pay the taxes to the proper taxing authority, and (c)
    send evidence of the obligation together with proof of payment to Palatin within
    sixty (60) days following that payment.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

51

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|12.2. |  | Indirect Taxes. Notwithstanding anything contained in Section 12.1, this
    Section 12.2 shall apply with respect to Indirect Taxes. Each of the Parties
    shall be responsible for the payment of Indirect Taxes assessed against it by
    law.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.3. |  | Imports. For the avoidance of doubt, the Parties acknowledge and agree
    that none of the milestones or royalties payable under this Agreement are
    related to the license (or right) to import or any import of Licensed Products.
    The receiving Party shall be responsible for any import clearance, including
    payment of any import duties and similar charges, in connection with any
    Licensed Products transferred to such Party under this Agreement. The Parties
    shall co-operate in accordance with Applicable Law to ensure where permissible
    no duties are paid on imported clinical products. Where duties are payable, the
    Parties shall co-operate to ensure that the Party responsible for shipping
    values the clinical product in accordance with Applicable Laws and minimises
    where permissible any such duties and related import taxes that are not
    reclaimable from the relevant authorities.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. |  | Confidentiality
and Non-Disclosure
|--- |  | ----------------------------------

|13.1. |  | General Obligations.
|----- |  | --------------------

| | 13.1.1. |  | In
this Agreement, Confidential Information shall, subject to
    Section 13.3, mean any and all data, results, know-how (including the
Licensed    Know How), plans, business information and other Information,
whether oral or in    writing or in any other form, disclosed before, on or
after the Effective Date    by one Party to the other Party, including the
terms of this Agreement. For the    avoidance of doubt, the AstraZeneca
Background Technologies and AstraZeneca    Improvements shall be deemed to
constitute Confidential Information proprietary    to AstraZeneca. At all
times during the term of this Agreement and for a period    of *** following
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

52

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| | termination
or expiration hereof, each Party (the Receiving Party) shall, and
shall cause its officers,    directors, employees, agents, Affiliates and
Sublicensees to, keep confidential    and not publish or otherwise disclose
and not use, directly or indirectly, for    any purpose, any Confidential
Information provided to it by the other Party (the    Disclosing
Party), except to the extent such disclosure or    use is expressly
permitted by the terms of this Agreement or is reasonably    necessary for
the performance of this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.1.2. |  | Palatin
recognises that by reason of AstraZenecas status as an exclusive
    licensee or owner pursuant to the grants and assignments under Article 7,
    AstraZeneca has an interest in Palatins retention in confidence of
certain    information of Palatin. Accordingly, until the expiration of
AstraZenecas    exclusive position with respect to a Licensed Product
or a Licensed Improvement    under Section 7.12, Palatin shall, and shall
cause its Affiliates and their    respective officers, directors, employees
and agents to, keep completely    confidential, and not publish or otherwise
disclose, and not use directly or    indirectly for any purpose that would
cause such publication or disclosure, any    information relating to (a) such
Licensed Product or a Licensed Improvement,    including the Agreement
Compounds included therein, the Results and any    Regulatory Documentation,
including the Health Registration Approvals with    respect thereto, or (b)
the Exploitation of such Licensed Product or Licensed    Improvement,
including development, sales or marketing plans therefore (the    AstraZeneca
Information); except to the extent (i) the    AstraZeneca
Information is in the public domain through no fault of Palatin, its
    Affiliates or any of their respective officers, directors, employees and
agents,    (ii) such disclosure or use would be permitted under Section 13.2,
or (iii) such    disclosure or use is otherwise expressly permitted by the
terms of this    Agreement or is reasonably necessary for the performance of
this Agreement. For    clarification, the disclosure by Palatin to
AstraZeneca or by AstraZeneca to    Palatin of AstraZeneca Information shall
not cause such information to cease to    be subject to the confidentiality
provisions of this Section 13.1.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.2. |  | Permitted Disclosures. Each Party may disclose Confidential Information
    to the extent that such disclosure is:
|----- |  | ------------------------------------------------------------------------------------------------------------------

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| | 13.2.1. |  | made
in response to a valid order of a court of competent jurisdiction or other
    competent authority; provided, however, that the Receiving Party shall first
    have given notice to the Disclosing Party and given the Disclosing Party a
    reasonable opportunity to quash any such order or obtain a protective order
    requiring that the Confidential Information and documents that are the subject
    of such order be held in confidence by such court or authority or, if disclosed,
    be used only for the purpose for which the order was issued; and provided
    further that if such order is not quashed or a protective order is not obtained,
    the Confidential Information disclosed in response to such court or governmental
    order shall be limited to that information that is legally required to be
    disclosed in response to such court or governmental order;
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2.2. |  | made
by AstraZeneca or its Affiliates, Distributors or Sublicensees to a Health
    Authority as may be necessary or useful in connection with any filing,
    application or request for a Health Registration Approval; provided, however,
    that reasonable measures shall be taken to assure confidential treatment of such
    information, to the extent such protection is available;
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2.3. |  | made
by the Receiving Party to a patent authority as may be necessary or useful
    for purposes of obtaining or enforcing a Patent (consistent with the terms
and    conditions of Article 15); provided, however, that reasonable measures
shall be    taken to assure confidential treatment of such information, to
the extent such    protection is available; or
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2.4. |  | otherwise
required by law, provided, however, that the Receiving Party shall (a)     provide
the Disclosing Party with reasonable advance notice of and an     opportunity to
comment on any such required disclosure, (b) if requested by the     Disclosing
Party, seek confidential treatment with respect to any such     disclosure to the
extent available, and (c) use good faith efforts to     incorporate the comments of
the Disclosing Party in any such disclosure or     request for confidential
treatment; or
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2.5. |  | made
by AstraZeneca or its Affiliates, Distributors or Sublicensees to Third
    Parties as may be reasonably necessary in connection with the Exploitation
of    the Agreement Compounds or Licensed Products as contemplated by this
Agreement,    including subcontracting or sublicensing transactions in
connection therewith.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Notwithstanding
the foregoing, in the event that either Party is required by Applicable Law or the
requirements of a national securities exchange or another similar regulatory body to
disclose this Agreement, in whole or in part, the Parties shall reasonably agree on a
redacted version of this Agreement as necessary to protect the Confidential Information of
the Parties prior to making such disclosure. The Parties shall not withhold, delay or
condition its agreement in any unreasonable manner.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.3. |  | Exclusions. Notwithstanding the foregoing, Confidential Information shall
    not include any information that:
|----- |  | ---------------------------------------------------------------------------------------------------------------

| | 13.3.1. |  | is
or hereafter becomes part of the public domain by public use, publication,
    general knowledge or the like through no wrongful act, fault or negligence
on    the part of the Receiving Party;
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3.2. |  | can
be demonstrated by documentation or other competent proof to have been in
    the Receiving Partys or its Affiliates possession prior to
    disclosure by the Disclosing Party;
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3.3. |  | is
subsequently received by the Receiving Party or its Affiliates from a Third
    Party or Sublicensee who is not bound by any obligation of confidentiality
with    respect to the said information;
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3.4. |  | is
generally made available to Third Parties by the Disclosing Party without
    restriction on disclosure; or
| | ------- |  | --------------------------------------------------------------------------------------------------------------

| | 13.3.5. |  | is
independently developed by or for the Receiving Party or its Affiliates
    without reference to the Disclosing Partys Confidential Information.
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | Specific
aspects or details of Confidential Information shall not be deemed to be within the public
domain or in the possession of the Receiving Party merely because the Confidential
Information is embraced by more general information in the public domain or in the
possession of the Receiving Party. Further, any combination of Confidential Information
shall not be considered in the public domain or in the possession of the Receiving Party
merely because individual elements of such Confidential Information are in the public
domain or in the possession of the Receiving Party unless the combination and its
principles are in the public domain or in the possession of the Receiving Party.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|13.4. |  | Publications and Presentations. The Parties acknowledge that scientific
    publications must be strictly monitored to prevent any adverse effect from
    premature publication of Results. Accordingly, Palatin shall not publish,
    present or otherwise disclose any material related to the Research Collaboration
    or the Results or the Exploitation of the Agreement Compounds or the Licensed
    Products or Improvements without the prior written consent of AstraZeneca.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.5. |  | Use of Name/Publicity
|----- |  | ---------------------

| | 13.5.1. |  | Neither
Party shall mention or otherwise use the name, insignia, symbol,
    trademark, trade name or logotype of the other Party or its Affiliates in
any    publication, press release, promotional material or other form of
publicity    without the prior written consent of the other Party (which
shall not be    unreasonably withheld or delayed), except for those
disclosures for which    consent has previously been obtained. The
restrictions imposed by this Section    13.5.1 shall not prohibit either
Party from making any disclosure identifying    the other Party that is
required by Applicable Law or the requirements of a    national securities
exchange or another similar regulatory body, provided that    any such
disclosure shall be governed by this Article 13. Further, the    restrictions
imposed on each Party under this Section 13.5 are not intended, and    shall
not be construed, to prohibit a Party from identifying the other Party in
    its internal business communications, provided that any Confidential
Information    in such communications remains subject to this Article 13.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.5.2. |  | Notwithstanding
the foregoing, AstraZeneca and its Affiliates and Sublicensees    shall have
the right to use the name of Palatin and its Affiliates to the extent
    necessary or useful in connection with the Exploitation of the Agreement
    Compounds, Licensed Products and Licensed Improvements as contemplated by
this    Agreement, including subcontracting and sublicensing transactions in
connection    therewith.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|13.6. |  | Press Release. The Parties have agreed upon the content of a press
    release which shall be issued substantially in the form attached hereto as
    Schedule 13.6, the release of which the Parties will coordinate in order to
    accomplish the same promptly upon execution and delivery of this Agreement.
    Except to the extent already disclosed in a press release or other public
    communication, no public announcement concerning this Agreement, its subject
    matter or the transactions described herein shall be made, either directly or
    indirectly, by Palatin or AstraZeneca or their respective Affiliates, except as
    may be legally required by applicable laws, regulations, judicial order, or
    required by stock exchange or quotation system rule without first obtaining the
    approval of the other Party and agreement upon the nature, text and timing of
    such announcement, which approval and agreement shall not be unreasonably
    withheld or delayed. The Party desiring to make any such voluntary public
    announcement shall provide the other Party with a written copy of the proposed
    announcement in reasonably sufficient time prior to public release to allow such
    other Party to comment upon such announcement, prior to public release. In the
    case of press releases or other public communications legally required, or
    required by stock exchange or quotation system rule, to be made, the Party
    making such press release or public announcement shall provide to the other
    Party a copy of the proposed press release or public announcement in written or
    electronic form upon such advance notice as is practicable under the
    circumstances for the purpose of allowing the notified Party to review and
    comment upon such press release or public announcement. Under such
    circumstances, the releasing Party shall not be obligated to delay making any
    such press release or public communication beyond the time when the same is
    required to be made in order to facilitate review and comment by the receiving
    Party.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. |  | Trademarks
|--- |  | ----------

|14.1. |  | AstraZeneca shall have the sole right to select Trademarks for the marketing and
    sale of the Licensed Products in the Territory. AstraZeneca shall own such
    Trademarks and all rights and goodwill with respect thereto. Palatin shall not,
    and shall cause its Affiliates not to use any trademark that is the same as or
    confusingly similar to, misleading or deceptive with respect to or that dilutes
    the Trademarks.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|15. |  | Patent
Prosecution and Defence
|--- |  | ------------------------------

|15.1. |  | Prosecution of the Licensed Patents. Subject to Section 15.2, ***, using
    legal counsel at its sole discretion, diligently file, prosecute (including any
    interferences, reissue proceedings and re-examinations) and maintain the
    Licensed Patents in the Territory, all such filing, prosecution and maintaining
    within *** reasonable discretion, and *** shall bear all costs and expenses of
    such activities, including fees and expenses paid to outside legal counsel and
    experts, direct costs of in-house counsel and filing, prosecution and
    maintenance expenses associated therewith. Without prejudice to the foregoing,
    *** shall (a) file and prosecute Patent applications to secure Patent rights for
    the Licensed Patents and such other patentable Licensed Know-How as *** may from
    time to time reasonably designate in writing, in each case in the United States
    and all other PCT member countries and in such non-PCT member countries as ***
    may from time to time reasonably designate in writing; provided, however that,
    in each such case, such *** reasonable designation shall not be decisive, and
    *** shall not have the obligation to file or prosecute such *** designated
    Patent application, if *** has a reasonable belief that the filing or
    prosecution of such Patent application mentioned in this sub-clause (a) might
    adversely impact on *** patent strategies regarding the Agreement Compounds or
    the Licensed Products or on the utilisation of the Agreement Compounds, the
    Licensed Products or the Licensed Patents hereunder, including the filing or
    prosecution of a claim which conflicts with or would otherwise undermine or
    erode a claim under the Licensed Patents in the Licensed Field, or would
    otherwise in *** reasonable judgement have a negative commercial impact on the
    Licensed Patents in the Licensed Field; and (b) upon issuance, maintain such
    Patents described under (a) in full force in such countries.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.2. |  | Cooperation
regarding the Licensed Patents. *** shall consult with *** as    to the
strategy and prosecution of Patent applications and the maintenance or
    extension of the Licensed Patents, and in the case where a Licensed Patent
    covers two or more Candidate Drugs, *** may, at its sole discretion, apply
for    coverage of such Candidate Drugs by separate patents in the countries
or    territories in which the patent application has been filed (by way of
example;    through the use of divisional patent applications). *** shall
cause its patent    attorneys/agents to consult with *** (so far as
practicable) on all important    issues relating to the filing, prosecution
(including any interferences, reissue    proceedings and
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

58

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| | re-examinations)
and maintenance of the Licensed Patents. ***    shall provide *** with
sufficient opportunity to review and comment on the    nature and text of new
or pending applications, amendments, registrations,    filing, submissions,
pleadings, responses or correspondence with any patent    authorities with
respect to the Licensed Patents and should any comment refer to    a matter
that *** in its reasonable judgment considers to be of significant
    importance for the filing, registration and prosecution of the Licensed
Patents    for use outside of the Licensed Field then *** opinion shall be
***; provided,    however that, in each such case, *** opinion shall not be
decisive, and ***    shall not be obligated to take the action requested by
***, if *** has a    reasonable belief that the requested action might
adversely impact on *** patent    strategies regarding the Agreement
Compounds or the Licensed Products or on the    utilisation of the Agreement
Compounds, the Licensed Products or the Licensed    Patents hereunder,
including the filing or prosecution of a claim which    conflicts with or
would otherwise undermine or erode a claim under the Licensed    Patents in
the Licensed Field, or would otherwise in *** reasonable judgement    have a
negative commercial impact on the Licensed Patents in the Licensed Field.
    The Parties will co-operate in gaining patent term extension(s),
restoration(s)    or the like that may be available during the Term to the
Licensed Patents in any    part of the Territory, for example under a
supplementary protection certificate    in European countries. Should in any
country any decision have to be made as to    what product or claim or
otherwise to apply for a patent term extension(s),    restoration(s) or the
like regarding which decision ***, in its reasonable    judgment, considers
to be of significant importance for the maintenance of the    protection
which the Licensed Patents are intended to provide in the Licensed    Field,
then *** opinion shall be decisive for the action to be taken. *** shall
    (a) notify *** as early as reasonably practicable in advance of all
meetings and    significant communications with any patent authorities
concerning the Licensed    Patents and shall permit *** to participate in
such meetings, (b) promptly    prepare and deliver to *** complete and
accurate minutes of any such meeting or    communications, and (c) promptly
forward to *** copies of all office actions and    material written
communications received from any patent authorities with    respect to the
Licensed Patents upon receipt therefrom.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

59

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|15.3. |  | Election not to Prosecute the Licensed Patents. If *** elects not (a) to
    pursue or continue the filing, prosecution (including any interferences, reissue
    proceedings and re-examinations) or maintenance of a Licensed Patent in a
    particular country, or (b) to take any other action with respect to a Licensed
    Patent in a particular country that is necessary or useful to establish,
    preserve or extend rights thereto, including by seeking any Patent term
    extension, restoration or the like that may be available now or in the future,
    then in each such case *** shall so notify *** in writing not less than two (2)
    months before any deadlines by which an action must be taken to establish or
    preserve any such rights in such Licensed Patent in such country. Upon receipt
    of each such notice by *** or if, at any time, *** fails to initiate any such
    action within *** days after a request by *** that it do so (or, if after
    initiating any requested action, *** at any time thereafter fails to diligently
    pursue such action), *** shall have the right, but not the obligation, through
    counsel of its choosing, to pursue the filing or registration, or support the
    continued prosecution (including any interferences, reissue proceedings and
    re-examinations) or maintenance, of such Licensed Patent at its expense in such
    country. If *** elects to pursue such filing or registration, as the case may
    be, or continue such support, then *** shall notify *** of such election.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.4. |  | Prosecution of the Collaboration Patents. *** shall have the sole right,
    but not the obligation, at its sole cost and expense, through counsel of its
    choosing, to prepare, file, obtain, prosecute (including any interferences,
    reissue proceedings and re-examinations) and maintain all Collaboration Patents
    in the Territory. *** shall have the sole right to determine in which countries
    to file, obtain, prosecute and maintain the Collaboration Patents. To the extent
    that *** is filing, obtaining, prosecuting or maintaining a Collaboration Patent
    or otherwise exercising its rights under this Article 15, neither *** nor any of
    its employees, agents or representatives shall be liable to *** in respect of
    any act, omission, default or neglect on the part of any such employee, agent or
    representative in connection with such activities. *** shall regularly confer
    with *** regarding strategies and tactics for the conduct of the foregoing
    activities. *** shall give due regard to *** views in the conduct of the
    foregoing activities; and in particular to material suggestions, which may be
    reasonably implemented provided that such suggestions are consistent with ***
    direction and strategy in filing, prosecuting or maintaining the Collaboration
    Patents or the Licensed Patents.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|15.5. |  | Cooperation regarding the Collaboration Patents. *** shall keep ***
    advised as to material developments with respect to Collaboration Patents. ***
    shall, and shall cause its Affiliates to, assist and cooperate with *** in
    filing, obtaining, prosecuting and maintaining Collaboration Patents.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.6. |  | Additional Patent Protection. At *** request and at its cost and expense,
    *** shall seek additional Patent protection for the Compounds in any part of the
    Territory, for example, by way of Patent registration, Patent of importation or
    revalidation or the like. Any Patents granted pursuant to this Section 15.6
    shall be deemed to be Licensed Patents for the purposes of this Agreement.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.7. |  | AstraZeneca Background Technologies and AstraZeneca Patents. For the
    avoidance of doubt, AstraZeneca shall have the exclusive worldwide right, at its
    own expense and sole discretion, to prepare, file, and prosecute in its own name
    any Patents or other IP Protection Rights in relation to AstraZeneca Background
    Technologies and AstraZeneca Patents.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. |  | Enforcement
of Patents
|--- |  | ----------------------

|16.1. |  | Rights and Procedures. In the event that either Party supposes that a
    Third Party or Sublicensee may be infringing any of the Collaboration Patents,
    Licensed Patents or AstraZeneca Patents, such Party shall promptly notify the
    other Party in writing, identifying the alleged infringer and the alleged
    infringement complained of and furnishing the information upon which such
    determination is based.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16.2. |  | Infringement of the Licensed Patents.
|----- |  | -------------------------------------

| | 16.2.1. |  | ***
shall have the sole right, but after notifying ***, through counsel of its
    choosing, to take any measures it deems appropriate to stop infringement
of the    Licensed Patents for use pursuant to the License, by any Third
Party or    Sublicensee in the Territory or to grant to the infringing Third
Party or    Sublicensee adequate rights and licenses necessary for continuing
such    activities.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 16.2.2. |  | Notwithstanding
what is stated in Section 16.2.1, if any Licensed Patent is    infringed by a
Third Party in any country, *** shall have the right to commence    an action
for infringement, the right to enforce any judgment thereon and shall    have
full control over the conduct of the litigation, including, subject to what
    is stated below in this Section 16.2.2, settlement of it, provided that
*** or a    *** may join the proceedings voluntarily, at *** cost and
expense, and shall    have the right to be heard and *** shall give due
regard to ***. Notwithstanding    the foregoing, *** shall not have the right
to, and shall not permit any of its    Sublicensees and shall procure such
Sublicensees not to, enter into any    settlement or consent to any claim to
the effect that any claim under, or the    patent protection otherwise
offered under, any part of the Licensed Patents    outside the Licensed Field
would be materially negatively affected, without the    prior written consent
of ***, such consent not to be unreasonably withheld.
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2.3. |  | Upon
the reasonable request by ***, *** shall give *** all reasonable
    information and assistance, including allowing *** access to *** files and
    documents and to *** personnel, including the inventors, who may have
possession    of relevant information and, if necessary for *** to prosecute
any legal action,    joining in the legal action as a party at its own cost
and expense. In the event    *** fails within *** following notice of an
infringement described in Section    16.1 to take, or notifies *** in writing
of its intent not to take, commercially    appropriate steps to remove any
infringement of the Licensed Patents that is    likely to have a material
adverse effect on the sale of the Licensed Products or    any other product
sold under the Licensed Patents, and *** has not granted the    infringing
Third Party or Sublicensee rights and licenses to continue its    otherwise
infringing activities, ***, shall have the right to do so at *** cost    and
expense; provided, however, that if *** has commenced negotiations with an
    alleged infringer for discontinuance of such infringement within such ***
    period, *** shall have an *** to conclude its negotiations before ***, may
bring    suit for such infringement, provided, however, that ***may
contribute to    the proceedings or join such proceedings voluntarily, at its
own cost and    expense, and shall have the right to be heard and *** shall,
and shall ***, give    due regard to *** views. *** shall not have the right
to, and shall not permit    any of its other licensees and shall procure such
licensees not to, enter into    any settlement or consent to any claim to the
effect that any claim under, or    the patent protection otherwise offered
under, any part of the Licensed    Patentswithin the Licensed Field
would be materially negatively    affected, without the prior written consent
of ***, such consent not to be    unreasonably withheld. Upon reasonable
request by *** and at ***, *** shall give    *** all reasonable information
and assistance in connection with such suit for    infringement.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 16.2.4. |  | ***
shall provide *** with copies of all substantive documents in relation to
    the Licensed Patents that *** receives from any patent office, including
notice    of all interferences, reissues, re-examinations, oppositions or
requests for    patent term extensions sufficiently in time prior to the
deadline for the action    to be taken.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.2.6 |  | Notwithstanding the foregoing, *** shall within *** advise *** of receipt of any notice of
(a) any certification filed under the U.S. Drug Price Competition and Patent Term
Restoration Act of 1984 (21 United States Code §355(b)(2)(A)(iv) or
(j)(2)(A)(vii)(IV)) (ANDA ACT) claiming that any Licensed Patents are
invalid or unenforceable or claiming that the Licensed Patents will not be infringed by
the Manufacture, use, marketing or sale of a product for which an application under the
ANDA ACT is filed, or (b) any equivalent or similar certification or notice in any other
jurisdiction. The Parties rights and obligations with respect to any legal action as
a result of such certification shall be as set forth in this Article 16, provided that
within *** of such notice *** shall notify *** as to whether or not it elects to prosecute
such infringement.
| | ------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16.3. | Infringement of the Collaboration Patents. *** shall have the sole right,
   but after notifying *** (if time permits), through counsel of its choosing and
   at its sole cost and expense, to take any measures it deems appropriate to stop
   infringement of the Collaboration Patents by Third Party or Sublicensee in the
   Territory or to grant to the infringing Third Party or Sublicensee adequate
   rights and licenses necessary for continuing such activities. Upon reasonable
   request by *** shall give *** all reasonable information and assistance,
   including allowing *** access to *** files and documents and to *** personnel,
   including the inventors, who may have possession of relevant information and, if
   necessary for *** to prosecute any legal action, joining in the legal action as
   a party at its own cost and expense. In the event *** fails within *** following
   notice of an infringement of the Collaboration Patents to take, or earlier
   notifies *** in writing of its intent not to take, commercially appropriate
   steps to remove any infringement of any of the Collaboration Patents that is
   likely to have a material adverse effect on the sale of the Licensed Products,
   and *** has not granted the infringing Third Party or Sublicensee rights and
   licenses to continue its otherwise infringing activities, *** shall have the
   right to do so at *** cost and expense; provided, however, that if *** has
   commenced negotiations with an alleged infringer for discontinuance of such
   infringement within such ***, *** to conclude its negotiations before *** may
   bring suit for such infringement. Upon reasonable request by *** and at *** cost
   and expense, *** shall give *** all reasonable information and assistance in
   connection with such suit for infringement.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16.4. | Recovery. Any amounts recovered by either Party pursuant to Section 16.2
   and 16.3, whether by settlement or judgment, shall be used to reimburse the
   Parties for their reasonable costs and expenses in making such recovery (which
   amounts shall be allocated pro rata if insufficient to cover the totality of
   such expenses), with any remainder being retained by or paid to *** unless and
   to the extent ***, in which event any remainder shall be retained by or paid to
   ***, and shall be deemed Net Sales for which *** shall pay *** any
   royalties that may be owed with respect to such Net Sales under Sections 11.1
   and 11.2, without regard to whether any First Commercial Sale of a Licensed
   Product has yet occurred, and without triggering the royalty term set forth in
   Section 11.7. The Party pursuing any action under Section 16.2 and 16.3 will
   bear all payments awarded against or agreed to be paid by such Party pursuant to
   such action, including any costs or expenses incurred that exceed the amounts
   recovered by such Party.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17. | Potential Third Party Rights
|--- | ----------------------------

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|17.1. | Third Party Licenses. If, in the opinion of ***, the Exploitation of the
   Agreement Compounds or Licensed Products *** infringes or misappropriates any
   Patent or any Intellectual Property Right of a Third Party in any country, such
   that *** cannot Exploit the Agreement Compounds or the Licensed Products in such
   country without infringing the Patent or Intellectual Property Right of such
   Third Party (a Triggering Event), then, *** shall have the
   first right, but not the obligation, through counsel of its choosing and at its
   sole cost and expense, to negotiate and obtain a license from such Third Party
   as necessary for *** to Exploit the Agreement Compounds and Licensed Products in
   such country. Nothing contained in this Section 17.1 shall be construed to limit
   *** right to terminate this Agreement pursuant to Section 20.4.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.2. | Invalidity or Unenforceability Defences or Actions.
|----- | ---------------------------------------------------

| | 17.2.1. |  | In
the event that a Third Party or Sublicensee asserts, as a defence or as a
   counterclaim in any infringement action under Sections 16.2 and 16.3, that any
   of the Licensed Patents or Collaboration Patents is invalid or unenforceable,
   then the Party pursuing such infringement action in accordance with Section
16.2   or 16.3 shall promptly give written notice to the other Party. Regarding
any   such defence or counterclaim under any infringement actions under Section
16.2   or 16.3, *** shall have the first right, but not the obligation, through
counsel   of its choosing and at its cost and expense subject to the credit
provisions of   Section 17.5, to respond to such defence or defend against such
counterclaim (as   applicable), including, subject to what is stated in Section
17.3, the right to   settle or otherwise compromise such claim. If *** notifies
*** in writing that   it does not wish to respond to such defence or defend
against such counterclaim   (as applicable), ***, shall, at *** sole cost and
expense, have the right to   respond to such defence or defend against such
counterclaim (as applicable);   provided, however, that *** may contribute to the
defence or defend against such   counterclaim (as applicable) or join such
defence or defend against such   counterclaim (as applicable) voluntarily, at its
own cost and expense, and shall   have the right to be heard and *** shall, and
shall procure such Third Party   having a licence from *** under the infringed or
allegedly infringed claim of   the Licensed Patents to, give due regard to *** or
such Sublicensees   views. ***, (i) shall not have the right to, and shall
not permit any of its   other licensees and shall procure such licensees not to,
enter into any   settlement or consent to any claim to the effect that any claim
under, or the   patent protection otherwise offered under, any part of the
Licensed Patents   within the Licensed Field would be materially negatively
affected, without the   prior written consent of ***, such consent not to be
unreasonably withheld; and   (ii) shall obtain the written consent of *** prior
to ceasing to defend,   settling or otherwise compromising such defence or
counterclaim.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 17.2.2. |  | Similarly,
if a *** asserts, in a declaratory judgment action or similar action   or claim filed
by such ***, that any of the Licensed Patents or Collaboration   Patents is invalid or
unenforceable, then the Party first becoming aware of such   action or claim shall
promptly give written notice to the other Party. *** shall   have the first right, but
not the obligation, through counsel of its choosing   and at its cost and expense
subject to the credit provisions of Section 17.5, to   defend against such action or
claim, including the right to settle, subject to   what is stated in Section 17.3 or
otherwise compromise such claim. If ***   notifies *** in writing that it does not
wish to respond to or defend against or   settle such action or claim, ***, shall, at
*** sole cost and expense, have the   right to defend against such action or claim;
provided, however, that   AstraZeneca or its Sublicensees may contribute to such
action or claim or join   such action or claim voluntarily, at its own cost and
expense, and shall have   the right to be heard and *** shall, and shall procure such
Third Party having a   licence from *** under the infringed or allegedly infringed
claim of the   Licensed Patents to, give due regard to *** or such Sublicensees
views.   ***, (i) shall not have the right to, and shall not permit any of its other
   licensees and shall procure such licensees not to, enter into any settlement or
   consent to any claim to the effect that any claim under, or the patent
   protection otherwise offered under, any part of the Licensed Patentswithin
the Licensed Field would be materially negatively affected, without   the prior
written consent of ***, such consent not to be unreasonably withheld;   and (ii) shall
obtain the written consent of *** prior to ceasing to defend,   settling or otherwise
compromising such defence or counterclaim.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.3. | Notwithstanding what is stated in Section 17.2, *** shall not have the right to,
   and shall not ***, enter into any settlement or consent to any claim to the
   effect that any claim under, or the patent protection otherwise offered under,
   any part of the Licensed Patents ***, without the prior written consent of ***,
   such consent not to be unreasonably withheld.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|17.4. | Third Party Litigation. In the event of any actual or threatened suit
   against ***, AstraZeneca or its Affiliates, Sublicensees, Distributors or
   customers alleging that the Exploitation of Agreement Compounds or Licensed
   Products, or that the Exploitation of the Licensed Patents or the Collaboration
   Patents, AstraZeneca Patent or AstraZeneca Background Technologies by or on
   behalf of AstraZeneca under this Agreement, infringes the Patent or other
   intellectual property rights of any Person (an Infringement
   Suit), the Party first becoming aware of such Infringement Suit shall
   promptly give written notice to the other Party. *** shall have the first right,
   but not the obligation, through counsel of its choosing and at its cost and
   expense subject to the credit provisions of Section 17.5, to assume direction
   and control of the defence of claims arising therefrom (including, subject to
   what is stated below in this Section 17.4, the right to settle such claims at
   its sole discretion). *** shall, if reasonably requested by ***, allow *** to
   join in such legal action as a party at its own expense. *** shall remain in
   full control handling such legal action. Notwithstanding the foregoing, ***
   shall not have the right to, and shall ***, enter into any settlement or
   consent to any claim to the effect that any claim under, or the patent
   protection otherwise offered under, ***, without the prior written consent of
   ***, such consent not to be unreasonably withheld. If *** notifies *** in
   writing that it does not wish to assume such direction and control, ***, shall
   have the right, but not the obligation to, at its sole cost and expense, defend
   against such claims; provided, however, that *** may contribute to or join such
   legal action voluntarily, at its own cost and expense, and shall have the right
   to be heard and *** shall, and shall procure *** to, give due regard to ***, (i)
   shall not have the right to, and shall not permit any of its other licensees and
   shall procure such licensees not to, enter into any settlement or consent to any
   claim to the effect that any claim under, or the patent protection otherwise
   offered under, any part of the Licensed Patentswithin the Licensed Field
   would be materially negatively affected, without the prior written consent of
   ***, such consent not to be unreasonably withheld; and (ii) shall obtain the
   written consent of *** prior to ceasing to defend, settling or otherwise.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|17.5. | Cooperation. The Party other than the Party defending an action or claim
   pursuant to Section 17.2 or 17.4 (the Non-Defending Party)
   will provide to the other Party (the Defending Party) all
   reasonable assistance requested by the Defending Party in connection with any
   action, claim or suit under Section 17.2 or 17.4, including allowing the
   Defending Party access to the Non-Defending Partys files and documents and
   to the Non-Defending Partys personnel, including the inventors, who may
   have possession of relevant information. In particular the Non-Defending Party
   will promptly make available to the Defending Party, free of charge, all
   information in its possession or control that it is aware will assist the
   Defending Party in responding to any such action, claim or suit under Section
   17.2 or 17.4.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.6. | Costs and Expenses. *** shall have the right to credit all (a) ***; (b)
   ***; and (c) ***; in each instance in order to secure the right to continue the
   Exploitation of the Licensed Patents and the Collaboration Patents (which
   royalties shall be subject to Section 11.6), against the *** to be paid by ***
   to *** with respect to the sale of the Licensed Product under Articles 10 and
   11. Credits not exhausted in any Calendar Quarter may *** Calendar Quarters. Any
   amounts recovered by *** in connection with any action, claim or suit under
   Section 17.2 or 17.4 shall be allocated between the Parties as provided in
   Section 16.4.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Representations and Warranties
|--- | ------------------------------

|18.1. | Palatin represents, warrants and covenants to AstraZeneca as of the Effective
   Date that:
|----- | -------------------------------------------------------------------------------------------

| | 18.1.1. |  | Palatin
is duly organized, validly existing and in good standing under the laws   of the
State of Delaware, with full corporate power and authority to execute and
   deliver this Agreement and to perform its obligations hereunder.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.2. |  | This
Agreement has been duly executed and delivered by Palatin and constitutes   the
valid and binding obligation of Palatin, enforceable against Palatin in
   accordance with its terms, subject to the effects of bankruptcy, insolvency or
   other laws of general application affecting the enforcement of creditor rights
   and judicial principles affecting the availability of specific performance and
   general principals of equity, whether enforceability is considered a proceeding
   at law or equity. The execution, delivery and performance of this Agreement
have   been duly authorized by all necessary action on the part of Palatin, its
   officers and directors on behalf of Palatin and no other corporate proceedings
   on the part of Palatin are necessary to authorize such execution, delivery and
   performance.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 18.1.3. |  | The
execution, delivery and performance of this Agreement will not result in a
   violation of, or be in conflict with, or constitute a default, under any
   agreement in existence as of the Effective Date between Palatin and Third
   Parties and that it is not party to any other agreements that limits
   AstraZenecas rights under this Agreement and Palatin will not enter into
   any agreement, whether written or oral, inconsistent with the rights and
   licenses granted hereunder.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.4. |  | Palatin
is the sole and exclusive owner of the entire right, title and interest   in the
Licensed Patents and, to its Knowledge, the Licensed Know-How, and is   entitled
to grant the licenses and the rights herein. Palatin has not placed,   and to its
Knowledge there does not exist, upon the Licensed Patents and   Licensed Know-How
any encumbrance or lien. No claim has been made to Palatin of   ownership by any
Third Party of any right or interest in or to the Licensed   Patents and Licensed
Know-How. The granting of the licenses to AstraZeneca   hereunder does not
violate any right known to Palatin of any Third Party and,   and to its
Knowledge, Palatin has obtained all necessary consents from Third   Parties in
order to allow it to enter into its obligations under this Agreement.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.5. |  | To
Palatins and its Affiliates Knowledge, the Licensed Patents are   being
diligently procured from the respective patent offices in accordance with   all
Applicable Laws. The Licensed Patents have been filed and maintained   properly and
correctly and all applicable fees have been paid on or before the   due date for
payment.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.6. |  | As
of the Effective Date, to Palatins and its Affiliates Knowledge,
   there is no actual infringement or threatened infringement of the Licensed
   Patents, Licensed Know-How or the Regulatory Documentation by any Person.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 18.1.7. |  | To
the Knowledge of Palatin and its Affiliates, the disclosing, copying, making,
   assigning, licensing or the Exploitation pursuant to this Agreement of the
   Licensed Patents or Licensed Know-How hereunder will not infringe or conflict
   with any Patent or other IP Protection Right of any Person. To the Knowledge of
   Palatin and its Affiliates, the conception, development and reduction to
   practice of the Licensed Patents and Licensed Know-How existing as of the
   Effective Date have not constituted or involved the misappropriation of trade
   secrets or other rights or property of any Person.
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.8. |  | The
Licensed Patents and the Licensed Know-How existing as of the Effective Date
   are subsisting and to Palatins Knowledge are not invalid or
unenforceable,   in whole or in part. The conception, development and reduction
to practice of   the Regulatory Documentation, the Licensed Patents and Licensed
Know-How   existing as of the Effective Date have not constituted or involved the
   misappropriation of trade secrets or other rights or property of any Person.
   There are no claims, judgments or settlements against or amounts with respect
   thereto owed by Palatin or any of its Affiliates relating to the Regulatory
   Documentation, the Licensed Patents or the Licensed Know-How. No claim or
   litigation has been brought or threatened by any Person alleging that (a) the
   Licensed Patents or the Licensed Know-How are invalid or unenforceable or (b)
   the Regulatory Documentation, the Licensed Patents or the Licensed Know-How or
   the disclosing, copying, making, assigning, licensing or Exploiting of the
   Regulatory Documentation, the Licensed Patents or the Licensed Know-How, or
   products and services embodying the Regulatory Documentation, or the Compounds
   or Licensed Products violates, infringes or otherwise conflicts or interferes
   with any intellectual property or proprietary right of any Person.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.9. |  | Palatin
shall not grant to any Third Party any right under the Licensed Patents   or the
Licensed Know-How which would mean or have as a consequence that *** in
   accordance with this Agreement.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.10. |  | In
respect of the pending United States patent applications included in the
   Licensed Patents, Palatin has presented all reasonably required prior art
   material to patentability of which it and the inventors are aware to the United
   States Patent and Trademark Office; provided, however, for the avoidance of
   doubt, that in respect of the United States patent applications *** Palatin has
   made any such disclosure regarding prior art as required by Applicable Law .
| | -------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 18.1.11. |  | The
Licensed Patents listed on *** and *** represent all Patents within   Palatins
Control relating to the Compounds as of the Effective Date.
| | -------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.12. |  | The
Licensed Know-How has been kept confidential or has been disclosed to Third
   Parties only under terms of confidentiality. To the Knowledge of Palatin and
its   Affiliates no breach of such confidentiality has been committed by any
Third   Party. For the avoidance of doubt, the *** have not, other than to the
extent   they have been part of a patent application that is in the public
domain, been   disclosed to any Third Party.
| | -------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.13. |  | Palatin
has made (and will make) available, and will assign to AstraZeneca all   of its
rights, titles and interests in and to, all Regulatory Documentation,
   including, to the extent permitted by Applicable Law, all Health Registration
   Approvals, Licensed Know-How and other Information Controlled by Palatin as of
   the Effective Date and from time to time during the Term related to the
   Agreement Compounds or Licensed Product and that all such Regulatory
   Documentation, Licensed Know-How and other Information are (and, if made
   available or assigned after the Effective Date, will be) true, complete and
   correct and that all such Regulatory Documentation, Licensed Know-How and other
   Information will be automatically included in the license granted to
AstraZeneca   under Article 7. As of the Effective Date, Palatin has prepared,
maintained and   retained all Regulatory Documentation that is required to be
maintained or   reported pursuant to and in accordance with good laboratory and
clinical   practice and Applicable Law and all such information is true, complete
and   correct and what it purports to be.
| | -------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.14. |  | Palatin
has not been debarred and is not subject to debarment and Palatin will   not use
in any capacity, in connection with the services to be performed under   this
Agreement, any Person who has been debarred pursuant to Section 306 of the
   United States Federal Food, Drug, and Cosmetic Act, or who is the subject of a
   conviction described in such section. Palatin agrees to inform AstraZeneca in
   writing immediately if it or any Person who is performing services hereunder is
   debarred or is the subject of a conviction described in Section 306, or if any
   action, suit, claim, investigation or legal or administrative proceeding is
   pending or, to Palatins or its Affiliates Knowledge, is threatened,
   relating to the debarment or conviction of Palatin or any Person performing
   services hereunder.
| | -------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 18.1.15. |  | Palatin
shall obtain from each of its Affiliates, sublicensees, employees and   agents
rights to any and all Information that relate to the Compounds, Licensed
   Products and Licensed Improvements, such that AstraZeneca shall, by virtue of
   this Agreement, receive from Palatin, without payments beyond those required by
   this Agreement, including Articles 9, 10 and 11, the licenses and other rights
   granted to AstraZeneca hereunder.
| | -------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.16. |  | True
and complete copies of all of Palatins agreements relating to the
   Licensed Patents or Compounds have been made available to AstraZeneca and are
   listed on Schedule 18.1.16. Except as identified on such Schedule
   18.1.16, each such agreement is true and complete and that none of them
have   been amended, terminated or renegotiated. Palatin is not, and to its
Knowledge   no other party to any such agreement is, in breach of or in default
under any   such agreement; and to Palatins Knowledge, no event or
circumstance has   occurred which constitutes a breach or default thereunder.
| | -------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.17. |  | Palatin
has not been involved in any *** relating to the Compound or Licensed   Patents.
| | -------- |  | ----------------------------------------------------------------------------------------

| | 18.1.18. |  | Palatin
has provided AstraZeneca in writing with of all information regarding   the
Licensed Patents, Compounds and Regulatory Documentation which AstraZeneca   has
requested. To Palatins Knowledge, the disclosed information is true   and
correct and no document provided on behalf of the Palatin contains any   untrue
statement of a relevant fact.
| | -------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.19. |  | Except
for the agreements set out in Schedule 18.1.19, Palatin has not prior to   the
Effective Date entered into any agreement, whether written or oral, with
   respect to, or otherwise assigned, transferred, licensed, conveyed or otherwise
   encumbered its right, title or interest in or to, the Licensed Patents,
Licensed   Know-How, Regulatory Documentation, Compounds or the Licensed Products
   (including by granting any covenant not to sue with respect thereto) and it
will   not enter into any such agreements or grant any such right, title or
interest to   any Person that is inconsistent with the rights and licenses
granted to   AstraZeneca under this Agreement.
| | -------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|18.2. | AstraZeneca represents, warrants and covenants to Palatin as of the Effective
   Date that:
|----- | -------------------------------------------------------------------------------------------

| | 18.2.1. |  | AstraZeneca
is duly organized, validly existing and in good standing under the   laws of
Sweden with full power and authority to execute and deliver this   Agreement and
to perform its obligations hereunder.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.2.2. |  | This
Agreement has been duly executed and delivered by AstraZeneca and   constitutes
the valid and binding obligation of AstraZeneca, enforceable against
   AstraZeneca in accordance with its terms. The execution, delivery and
   performance of this Agreement have been duly authorized by all necessary action
   on the part of AstraZeneca, its officers and directors on behalf of
AstraZeneca.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.2.3. |  | AstraZeneca
has not been debarred and is not subject to debarment and   AstraZeneca will not
use in any capacity, in connection with the services to be   performed under this
Agreement, any Person who has been debarred pursuant to   Section 306 of the
United States Federal Food, Drug, and Cosmetic Act, or who is   the subject of a
conviction described in such section. AstraZeneca agrees to   inform Palatin in
writing immediately if it or any Person who is performing   services hereunder is
debarred or is the subject of a conviction described in   Section 306, or if any
action, suit, claim, investigation or legal or   administrative proceeding is
pending or, to AstraZenecas or its   Affiliates Knowledge, is
threatened, relating to the debarment or   conviction of AstraZeneca or any
Person performing services hereunder.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|18.3. | Each Party shall comply with all laws, rules and regulations that govern the
   Partys performance under this Agreement, including all United States and
   multilateral export laws and regulations.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18.4. | Nothing in this Agreement shall be construed as a warranty or representation by
   either Party of the success of the Research Plan.
|----- | ------------------------------------------------------------------------------------------------------------------------------------

|18.5. | DISCLAIMER. OTHER THAN AS PROVIDED IN SECTION 7.13 AND THIS ARTICLE 18,
   THE PARTIES DISCLAIM ANY AND ALL WARRANTIES OF ANY KIND WITH REGARD TO THE
   LICENSED KNOW-HOW, LICENSED PATENTS, COMPOUNDS, COLLABORATION MATERIALS, THE
   ASTRAZENECA BACKGROUND TECHNOLOGIES AND THE RESULTS, WHETHER EXPRESS OR IMPLIED,
   INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
   ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | Indemnification and Insurance
|--- | -----------------------------

|19.1. | Indemnification of Palatin. In addition to any other remedy available to
   Palatin, AstraZeneca shall indemnify, defend and hold harmless Palatin, its
   Affiliates and its and their respective directors, officers and employees in
   full and on demand, from and against any and all Losses incurred by them to the
   extent resulting from or arising out or in connection with any claims made or
   suits brought by a Third Party (collectively, Third Party Claims)
   against Palatin, its Affiliates or their respective directors, officers or
   employees (a) that arise or result from any intentional misconduct or negligence
   on the part of AstraZeneca or its Affiliates or Sublicensees in performing any
   activity contemplated by this Agreement, including any Third Party Claim
   resulting from or arising out of or in connection with AstraZenecas or its
   Affiliates or Sublicensees development, manufacture, use, sale,
   storage or handling of an Agreement Compound or Licensed Product or the breach
   of any material provision of this Agreement by AstraZeneca or (b) that allege
   that the concerned Third Party has suffered personal injury or death as a result
   of a Product; provided that the foregoing indemnification shall not apply to any
   Loss to the extent such Loss is caused by the breach of this Agreement by
   Palatin or the negligence or wilful misconduct of Palatin or its Affiliates and
   their current or former employees, officers and directors.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|19.2. | Indemnification of AstraZeneca. In addition to any other remedy available
   to AstraZeneca, Palatin shall indemnify, defend and hold harmless AstraZeneca,
   its Affiliates, Distributors, Sublicensees and its and their respective
   directors, officers and employees in full and on demand, from and against any
   and all Losses incurred by them to the extent resulting from or arising out of
   or in connection with any Third Party Claims against AstraZeneca, its Affiliates
   or their respective directors, officers or employees that arise or result from
   any intentional misconduct or negligence on the part of Palatin or its
   Affiliates in performing any activity contemplated by this Agreement, or the
   breach of any material provision of this Agreement by Palatin; provided that the
   foregoing indemnification shall not apply to any Loss to the extent such Loss is
   caused by the breach of this Agreement by AstraZeneca or the negligence or
   wilful misconduct of AstraZeneca or its Affiliates and their current or former
   employees, officers and directors.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19.3. | Notice of Claim. An Indemnified Party shall give the Indemnifying Party
   prompt written notice of any Loss or discovery of fact upon which such
   Indemnified Party intends to base a request for indemnification under Section
   19.1 or 19.2 (an Indemnification Claim Notice). In no event
   shall the Indemnifying Party be liable for any Loss that results from any delay
   in providing the Indemnification Claim Notice. Each Indemnification Claim Notice
   shall contain a description of the claim and the nature and amount of the Loss
   claimed (to the extent that the nature and amount of such Loss is known at such
   time). The Indemnified Party shall furnish promptly to the Indemnifying Party
   copies of all papers and official documents received in respect of any such
   Loss. For the avoidance of doubt, all indemnification claims in respect of a
   Party, its Affiliates or their respective directors, officers, employees and
   agents (each, an Indemnitee) shall be made solely by such
   Party to this Agreement.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19.4. | Indemnification Procedures. The obligations of an Indemnifying Party
   under this Article 19 shall be governed by and contingent upon the following:
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------

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| | 19.4.1. |  | Assumption
of Defence. At its option, the Indemnifying Party may assume   the defence of
any Third Party Claim by giving written notice to the Indemnified   Party within
*** after the Indemnifying Partys receipt of an   Indemnification Claim
Notice. The assumption of the defence of a Third Party   Claim by the
Indemnifying Party shall not be construed as an acknowledgement   that the
Indemnifying Party is liable to indemnify any Indemnitee in respect of   the
Third Party Claim, nor shall it constitute a waiver by the Indemnifying   Party
of any defences it may assert against any Indemnified Partys claim   for
indemnification.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.4.2. |  | Control
of Defence. Upon the assumption of the defence of a Third Party   Claim by
the Indemnifying Party:
| | ------- |  | ----------------------------------------------------------------------------------------------------------

| |  | (a) |  | the
Indemnifying Party may appoint as lead counsel in the defence of the Third
   Party Claim any legal counsel selected by the Indemnifying Party, which shall
be   reasonably acceptable to the Indemnified Party, and
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Except
as expressly provided in Section 19.4.3, the Indemnifying Party shall not   be
liable to the Indemnified Party for any legal expenses subsequently incurred   by
such Indemnified Party or any Indemnitee in connection with the analysis,
   defence or settlement of the Third Party Claim. In the event that it is
   ultimately determined that the Indemnifying Party is not obligated to
indemnify,   defend or hold harmless an Indemnitee from and against the Third
Party Claim,   the Indemnified Party shall reimburse the Indemnifying Party for
any and all   costs and expenses (including lawyers fees and costs of suit)
and any Loss   incurred by the Indemnifying Party in its defence of the Third
Party Claim with   respect to such Indemnified Party or Indemnitee.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.4.3. |  | Right
to Participate in Defence. Without limiting Section 19.4.1 or   19.4.2, any
Indemnitee shall be entitled to participate in, but not control, the   defence of
a Third Party Claim and to retain counsel of its choice for such   purpose;
provided, however, that such retention shall be at the   Indemnitees own
expense unless, (a) the Indemnifying Party has failed to   assume the defence and
retain counsel in accordance with Section 19.4.1 (in   which case the Indemnified
Party shall control the defence), or (b) the   interests of the Indemnitee and
the Indemnifying Party with respect to such   Third Party Claim are sufficiently
adverse to prohibit the representation by the   same counsel of both parties
under Applicable Law, ethical rules or equitable   principles.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | 19.4.4. |  | Settlement.
With respect to all Losses, where the Indemnifying Party has   assumed the
defence of a Third Party Claim in accordance with Section 19.4.1,   (i) the
Indemnifying Party shall have authority to consent to the entry of any
   judgement, enter into any settlement or otherwise dispose of such Losses,
   provided that it obtains the prior written consent of the Indemnified Party,
   which consent shall not be unreasonably withheld or delayed, and (ii) no
   Indemnified Party or Indemnitee shall admit any liability with respect to, or
   settle, compromise or discharge, any such Third Party Claim without the prior
   written consent of the Indemnifying Party, which consent shall not be
   unreasonably withheld.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.4.5. |  | Cooperation.
If the Indemnifying Party chooses to defend or prosecute any   Third Party Claim,
the Indemnified Party shall, and shall cause each other   Indemnitee to,
cooperate in the defence or prosecution thereof and shall furnish   such records,
information and testimony, provide such witnesses and attend such   conferences,
discovery proceedings, hearings, trials and appeals as may be   reasonably
requested in connection therewith. Such cooperation shall include   access during
normal business hours by the Indemnifying Party to, and reasonable   retention by
the Indemnified Party of, records and information that are   reasonably relevant
to such Third Party Claim, and making the Indemnified Party,   the Indemnitees
and its and their employees and agents available on a mutually   convenient basis
to provide additional information and explanation of any   records or information
provided, and the Indemnifying Party shall reimburse the   Indemnified Party for
all of its related reasonable out-of-pocket expenses.
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.4.6. |  | Expenses.
Except as expressly provided above, the reasonable and   verifiable costs and
expenses, including fees and disbursements of counsel,   incurred by the
Indemnified Party in connection with any claim shall be   reimbursed on a
quarterly basis by the Indemnifying Party, without prejudice to   the
Indemnifying Partys right to contest the Indemnified Partys   right
to indemnification and subject to refund in the event the Indemnifying   Party is
ultimately held not to be obligated to indemnify the Indemnified Party.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|19.5. | Insurance. Each Party shall have and maintain such type and amounts of
   liability insurance as is normal and customary in the pharmaceutical industry
   generally for Persons similarly situated, and shall upon request provide the
   other Party with a copy of its policies of insurance in that regard, along with
   any amendments and revisions thereto.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | Term and Termination
|--- | --------------------

|20.1. | Term. This Agreement shall become effective on the Effective Date and
   shall continue in full force and effect, unless earlier terminated in accordance
   with this Article 20 or Section 21.4, during the Collaboration Term and
   thereafter for as long as AstraZeneca is pursuing pre-clinical research or other
   activities or clinical development of one or more Collaboration Compounds or
   commercialising Products for which royalties are owed to Palatin pursuant to
   Article 11.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.2. | Collaboration Term. The Collaboration Term shall commence on the
   Effective Date and, unless the Agreement is terminated pursuant to Sections
   20.3, 20.4, 20.5, 20.6 or 20.9 or the Research Collaboration is terminated by
   AstraZeneca pursuant to this Section 20.2, continue until expiration of ***
   Collaboration Year.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notwithstanding
what is stated in the immediately preceding paragraph, AstraZeneca may extend the
Collaboration Term, at no more than *** by one extension period at each occasion, on the
terms corresponding to those set forth in Article 9 for periods of no less than *** nor
more *** each by providing Palatin notice, specifying the duration of the period of
extension, no later than *** prior to the expiration of the *** Collaboration Year or
any subsequent period, as applicable, provided that the Parties will in good faith
renegotiate the FTE Rate for the *** to reflect
increases, if any, in relevant price indexes.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.3. | Termination by AstraZeneca. AstraZeneca shall have the right, in its sole
   discretion to terminate this Agreement in its entirety or with respect to one or
   more countries in the Territory upon *** prior written notice; provided,
   however, that during the Collaboration Term such termination shall not take
   effect until *** of the date of such notice or upon the date when the
   Collaboration Term expires (provided always that such termination does never
   take effect prior to the expiration of the thirty days notice period), whichever
   is the earlier.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | In
the event that AstraZeneca terminates this Agreement pursuant to this Section 20.3 before
the end of the Collaboration Term, AstraZeneca shall pay through the date of termination
the cost, if any, for (i) all FTEs specified in the Research Plan; and (ii) all Third
Party costs which cannot reasonably be terminated and that Palatin has committed prior to
the termination notice and which are budgeted and approved in the Research Plan; up until
such date; provided, however, that AstraZeneca shall have no obligation to make such
payment under (i) or (ii) in the event it terminates this Agreement pursuant to Section
20.5, 20.6 or 20.9.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.4. | Termination for Infringement of Third Party Rights.
|----- | ---------------------------------------------------

| | 20.4.1. |  | If
a Triggering Event occurs with respect to a country, AstraZeneca shall have   the
right upon written notice to Palatin to terminate this Agreement with   respect
to such country if at any time (a) AstraZeneca is unable to obtain such   a
license on commercially reasonable terms or (b) AstraZeneca in good faith
   believes that negotiation with a Third Party pursuant to Article 17 with
respect   to such country is not likely to result in a commercially reasonable
agreement;   provided, however, that AstraZeneca shall have the right to
terminate this   Agreement with respect to *** and   AstraZeneca shall
have the right to terminate this Agreement in its entirety if   such country is
or is in a Major Market.
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.4.2. |  | If
a Third Party institutes an Infringement Suit with respect to a country,
   AstraZeneca shall have the right upon written notice to Palatin to terminate
   this Agreement with respect to such country if (a) ***, such Infringement Suit
   is not settled, dismissed or otherwise disposed of on terms reasonably
   acceptable to AstraZeneca, or (b) AstraZeneca in good faith believes that the
   outcome of such Infringement Suit is not likely to be favourable; provided,
   however, that AstraZeneca shall have the right to terminate this Agreement with
   respect to *** and AstraZeneca shall
have   the right to terminate this Agreement in its entirety if such country is
or is   in a Major Market.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|20.5. | Termination by Either Party. In addition to any other provision of this
   Agreement expressly providing for termination of this Agreement, this Agreement
   may be terminated immediately by either Party upon notice to the other Party in
   the event of a material breach of this Agreement, and such termination may
   relate to this Agreement in its entirety, if the breach is material to the
   Agreement as a whole, or to the country or countries to which such material
   default applies, by such other Party where such breach is capable of cure and
   such breach remains uncured for *** after notice of such breach (provided that
   if such breach is capable of cure but cannot be cured within such *** period,
   and the breaching Party commences actions to cure such breach within such period
   and thereafter diligently continues such actions, the breaching Party shall have
   an additional *** to cure such breach (though this additional cure period shall
   not apply to nonpayment)); provided, however, that in the event that AstraZeneca
   is the Party in material default and the default is with respect to
   AstraZenecas failure to comply with its obligation to use Commercially
   Reasonable Efforts as required under Section 6.1 with respect to the Licensed
   Products in a particular Major Market, Palatin shall have the right to terminate
   this Agreement only after it complies with Section 6.2 and only with respect to
   such Major Market and not in its entirety; provided, however, further, that if
   AstraZeneca fails to comply with its obligations under Section 6.1 with respect
   to the Licensed Product in all Major Markets, Palatin shall have the right to
   terminate this Agreement in its entirety for the material breach of AstraZeneca.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | It
is understood that termination pursuant to this Section 20.5 shall be a remedy of last
resort and may be invoked only in the case where the breach cannot be reasonably remedied
by the payment of money damages. If either Party initiates a dispute resolution procedure
as permitted under this Agreement within *** following the receipt of written notice from
the non-breaching Party to resolve the dispute for which termination is being sought and
is diligently pursuing such procedure, including any litigation following therefrom, the
termination shall become effective only if and when allowed through such dispute
resolution procedure.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|20.6. | Change of Corporate Control. Upon a Change of Corporate Control of
   Palatin at any time during the Research Collaboration, AstraZeneca shall have
   the right to (a) terminate this Agreement in its entirety by delivering written
   notice of termination to Palatin *** after the date of such Change of Corporate
   Control; or (b) terminate only the Parties collaboration under the
   Research Collaboration with immediate effect thereby ending the Collaboration
   Term; or (c) terminate Sections 4.3.2 and 6.3 and have the IF, if established,
   dissolved. In the event AstraZeneca exercises the option under (b), AstraZeneca
   shall be under no obligation to provide Palatin with any further compensation
   pursuant to Article 9.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Following
such termination of the Collaboration Term, Palatin shall immediately assign, and shall
cause its Affiliates and its and their employees and agents, as applicable, to so assign,
to AstraZeneca, without additional compensation, such right, title and interest in and to
any Results not previously assigned to AstraZeneca as well as, for the avoidance of doubt,
any IP Protection Rights pertaining to any of the foregoing and shall immediately return
to AstraZeneca all AstraZeneca Information and all other Confidential Information of
AstraZeneca, including any and all copies thereof, and those portions of any documents,
memoranda, notes, studies, analyses or other material prepared by or on behalf of Palatin
that incorporate or are derived from such Confidential Information. For the avoidance of
doubt, in the event of such termination, Palatin shall have no further rights to use any
Results, AstraZeneca Information or other Confidential Information of AstraZeneca for any
purpose. The Agreement shall remain valid and in full force and effect in all other
respects.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Upon
the Change of Corporate Control of Palatin after the expiration of the Collaboration Term,
AstraZeneca shall have the right to exercise the option under (c) by delivering written
notice to Palatin at any time within *** after the date of such Change of Corporate
Control.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20.7.      Consequences
of Termination.

Return of Material; Termination of Rights.

| |  | (a) |  | In
the event of termination of this Agreement in its entirety by AstraZeneca
     pursuant to Section 20.3, 20.4 or 20.6, or by Palatin in the event of
a material      breach by AstraZeneca pursuant to Section 20.5: (i) all
rights and licenses      granted to AstraZeneca under this Agreement shall
terminate, (ii) each Party      shall return all data, files, records and
other
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | materials
in its possession or      control containing or comprising the other Partys
Information, or other      Confidential Information to which such first
Party does not retain rights      hereunder (except one copy of which may
be retained by the returning Party      solely for archival purposes), and
(iii) AstraZeneca shall continue to pay to      Palatin the royalties and
milestones set forth in Sections 10 and 11 in respect      of any products
based on or utilizing Collaboration Compounds, Collaboration      Patents
or Collaboration Results.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | In
the event of termination of this Agreement with respect to one or more
     countries by AstraZeneca pursuant to Section 20.3 or 20.4 , or by
Palatin in the      event of a material breach by AstraZeneca pursuant to
Section 20.5: (i) all      rights and licences granted to AstraZeneca
under this Agreement shall terminate      with respect to such country or
countries, (ii) each Party shall return all      data, files, records and
other materials in its possession or control containing      or comprising
the other Partys Information or other Confidential      Information
with respect to such country or countries to which such first Party
     does not retain rights hereunder (except one copy of which may be
retained by      the returning Party solely for archival purposes), and
(iii) AstraZeneca shall      continue to pay to Palatin the royalties and
milestones set forth in Sections 10      and 11 in respect of any products
based on or utilizing Collaboration Compounds,      Collaboration Patents
or Collaboration Results. For the avoidance of doubt,      AstraZeneca
shall have the right to retain all such Information, including
     Confidential Information, that is necessary or useful for AstraZeneca
to Exploit      Licensed Products in the Territory.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) |  | In
the event of termination by AstraZeneca pursuant to Section 20.5 of this
     Agreement in its entirety or with respect to one or more countries or
by      AstraZeneca pursuant to Section 20.9, Palatin shall deliver or
otherwise return      all data, files, records and other materials in its
possession or control      relating to the Agreement Compounds and
Licensed Product or containing or      comprising AstraZenecas
Information or other Confidential
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Information
with      respect to such country or countries regarding which the
Agreement has been      terminated (except one copy of which may be
retained by Palatin solely for      archival purposes) and, without
prejudice to any license or right granted      hereunder for any country
regarding which this Agreement remains in force, all      licenses and
other rights granted by Palatin to AstraZeneca under Article 7      shall
continue in perpetuity under financial terms to be decided in accordance
     with Article 24; provided, however, that such licences and rights
under Article      7 shall continue whether or not such decision has been
made.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.7.1. |  | Transfer
of Materials. In the event of termination of this Agreement by    (i)
AstraZeneca pursuant to Section 20.3, 20.4 or 20.6; or (ii) Palatin in the
    event of a material breach by AstraZeneca pursuant to Section 20.5; or
(iii)    Palatin pursuant to Section 20.9, (a) a copy of any and all
documentation and    data (including regulatory documentation and filings)
owned or controlled by    AstraZeneca and in tangible form at the time of
termination of the Agreement    that has been generated with respect to
Agreement Compounds, Licensed Products,    their respective Manufacture and
that which is reasonably necessary or useful to    enable Palatin to continue
to Exploit the Licensed Products (collectively, the    AstraZeneca
Product Data), shall be provided to Palatin, and    Palatin may use
such AstraZeneca Product Data at its discretion on a    non-exclusive basis,
but only to the extent reasonably necessary or useful to    enable Palatin to
continue to Exploit the Licensed Products, and (b) if such    termination
occurs after a Licensed Product has received Health Registration    Approval
(including price approval, if applicable), AstraZeneca shall, if    permitted
under local laws and regulations, promptly transfer to Palatin at    Palatins
cost and expense (except in the case of the material breach of
    AstraZeneca) any and all Health Registration Approvals obtained for the
Licensed    Products as well as any and all Regulatory Documentation and
regulatory    applications submitted to Health Authorities for the Licensed
Product, provided    that Palatin shall indemnify and hold harmless
AstraZeneca and its Affiliates,    Distributors and Sublicensees from any
Losses with respect to the use of the    AstraZeneca Product Data and the
Exploitation of
| | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | Agreement
Compounds or Licensed    Products under such Health Registration Approvals
pursuant to Article 19 and any    such AstraZeneca Product Data shall be
subject to the confidentiality    obligations set forth in Article 13.
Palatin shall pay to AstraZeneca, in    consideration for the foregoing
transfer of the AstraZeneca Product Data and, if    applicable, the Health
Registration Approvals and other Regulatory Documentation    following
termination, a *** of Net Sales (provided that, for purposes of this
    Section 20.7.1, references to AstraZeneca in such definition shall be
deemed to    be references to Palatin), subject to all offsets and reductions
hereinmutatis mutandisof each Licensed Product Exploited by or on
behalf of    Palatin, its Affiliates or sublicensees from the First
Commercial Sale of each    such Licensed Product in a country until *** of
such First Commercial Sale in    such country.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.7.2. |  | Grant
Back. In the event of termination of this Agreement in its entirety
     by AstraZeneca pursuant to Section 20.3, 20.4 or 20.6 or by Palatin
in the event      of a material breach by AstraZeneca pursuant to Section
20.5 or by Palatin      pursuant to Section 20.9, Palatin shall have the
right to elect, on written      notice to AstraZeneca, for a period of ***
from such termination, to obtain from      AstraZeneca a non-exclusive,
royalty-bearing license under any Grant-Back      Patents to the extent
reasonably necessary or useful for Palatin to continue the
     development, commercialisation and Exploitation of Agreement
Compounds and      Licensed Products as developed by AstraZeneca up to the
point of termination of      this Agreement, provided that Palatin shall
indemnify and hold harmless      AstraZeneca and its Affiliates,
Distributors and Sublicensees from any Losses      with respect to the
Exploitation of Compounds or Licensed Products under such      license
pursuant to Article 19. Palatin shall pay AstraZeneca a royalty of ***
     of Net Sales (provided that, for purposes of this Section 20.7.2,
references to      AstraZeneca in such definition shall be deemed to be
references to Palatin),      subject to all offsets and reductions herein,
mutatis mutandis, of each      Licensed Product Exploited by or on
behalf of Palatin, its Affiliates or      sublicensees from the First
Commercial Sale of each such Licensed Product in a      country until the
*** of such First Commercial Sale in such country. Palatin      shall
reimburse
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | AstraZeneca
for its reasonable costs and expenses incurred in      the filing,
prosecution and maintenance of the Grant-Back Patents incurred after
     the date of termination. For the avoidance of doubt, the rights
granted to      Palatin hereunder are restricted solely to the Agreement
Compounds and Licensed      Products and AstraZeneca does not grant any
rights whatsoever to any other      compounds or products or to any IP
Protection Rights other than to the      Grant-Back Patents as set forth
above. For purposes of this Section 20.7.2,      Grant-Back
Patents means any and all Patents owned or      otherwise
Controlled by AstraZeneca as of the effective date of such termination
     reasonably necessary or useful to Exploit the Agreement Compounds or
Licensed      Products or that claim the Agreement Compounds or Licensed
Products solely as      such Agreement Compounds or Licensed Products
exist as of the termination of      this Agreement.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.7.3. |  | Work-in-Progress.
Upon termination of this Agreement with respect to one      or more
countries by Palatin in the event of a material breach by AstraZeneca
     pursuant to Section 20.5, AstraZeneca shall be entitled during ***,
to finish      any work-in-progress and to sell any inventory of the
Licensed Product that      remains on hand as of the date of the
termination, so long as AstraZeneca pays      Palatin the royalties
applicable to said subsequent sales in accordance with the      terms and
conditions set forth in Article 11.
| | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.7.4. |  | Unauthorised
Sales. To the extent that Palatin has the right under this
     Section 20.7 to Exploit Licensed Products in one or more countries
and to the      extent permitted by law, Palatin shall have the right,
both for itself and for      its Affiliates, to Manufacture, distribute,
market, promote, offer for sale and      sell the Licensed Product only in
such countries, provided that:
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) |  | Palatin
shall not, and shall not permit its subsidiaries or authorize its other
     Affiliates or sublicensees to, engage in active sales of the Licensed
Product in      *** in which AstraZenecas exclusive license under
this Agreement has not      terminated or expired; and
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Palatin
shall not, and shall not permit or authorize its Affiliates to,
     distribute, market, promote, offer for sale or sell the Licensed
Product      directly or indirectly in *** in which AstraZenecas
exclusive license      under this Agreement has not terminated or expired.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | AstraZeneca
shall not be obligated to provide Palatin with any other IP Protection Right or services
than what is explicitly provided for under this Section 20.7.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.7.5. |  | Remedies.
Early termination of this Agreement or the Research   Collaboration by a Party
shall in no way affect or limit such Partys right   to claim against the
other Party for any damages arising out of the breach of   this Agreement.
| | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.8. | Accrued Rights and Surviving Obligations. The termination of this
   Agreement shall not relieve the Parties from performing any obligations accrued
   prior to the date this Agreement terminates. Each Partys obligations under
   Sections 3.6, 3.7.1 (to the extent that AstraZeneca terminates the
   Agreement during the Collaboration Term and provided that
   such provision shall survive for a period of one (1) year after
   such termination), 6.3, 7.1, 7.2, 7.3, 12.1, 12.2, 20.7, 20.10 and this
   Section 20.8 and Articles 1, 13, 19, 24, 25, 26, 29, 31, 32, 33 and 35 and
   Articles 10 and 11 (but only to the extent set forth in Section 20.7) shall
   survive the termination or expiration of this Agreement.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20.9. | Termination Upon Insolvency. Either Party may terminate this Agreement
   and AstraZeneca may, at its option, terminate only the Research Collaboration,
   thereby ending the Collaboration Term, if, at any time, the other Party (i)
   shall file in any court or agency pursuant to any statute or regulation of any
   state, country or jurisdiction, a petition in bankruptcy or insolvency or for
   reorganization or for an arrangement or for the appointment of a receiver or
   trustee of that Party or of its assets, or (ii) proposes a written agreement of
   composition or extension of its debts, or (iii) shall be served with an
   involuntary petition against it, filed in any insolvency proceeding, and such
   petition shall not be dismissed within sixty (60) days after the filing thereof,
   or (iv) shall propose or be a party to any dissolution or liquidation, or (v)
   shall make an assignment for the benefit of its creditors. In case AstraZeneca
   elects to terminate the Research Collaboration only AstraZeneca shall be under
   no obligation to provide Palatin with any further compensation pursuant to
   Article 9 and what is stated in Section 20.6, second paragraph, shall apply.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|20.10. | Rights in Bankruptcy. All rights and licenses granted under or pursuant
   to this Agreement by Palatin are, and shall otherwise be deemed to be, for
   purposes of Section 365(n) of the U.S. Bankruptcy Code or analogous provisions
   of Applicable Law outside the United States, licenses of right to
   intellectual property as defined under Section 101 of the U.S.
   Bankruptcy Code or analogous provisions of Applicable Law outside the United
   States (hereinafter IP). The Parties agree that AstraZeneca, as
   licensee of such rights under this Agreement, shall retain and may fully
   exercise all of its rights and elections under the U.S. Bankruptcy Code or any
   other provisions of Applicable Law outside the United States that provide
   similar protection for IP. The Parties further agree that, in the event of the
   commencement of a bankruptcy proceeding by or against Palatin under the U.S.
   Bankruptcy Code or analogous provisions of Applicable Law outside the United
   States, AstraZeneca shall be entitled to a complete duplicate of (or complete
   access to, as appropriate) any such IP and all embodiments of such IP, which, if
   not already in AstraZenecas possession, shall be promptly delivered to it
   upon AstraZenecas written request therefore.
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | Force Majeure
|--- | -------------

|21.1. | In this Agreement, Force Majeure means an event which is
   beyond a non-performing Partys reasonable control, including an act of
   God, act of the other Party, strike, lock-out or other industrial/labour dispute
   (whether involving the workforce of the Party so prevented or of any other
   Person), war, riot, civil commotion, terrorist act, malicious damage, epidemic,
   quarantine, fire, flood, storm, natural disaster or compliance with any law or
   governmental order, rule, regulation or direction (including changes in the
   requirements of the Health Authorities), whether or not it is later held to be
   invalid.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.2. | The Force Majeure Party shall, within *** of the occurrence of a Force Majeure
   event, give notice in writing to the other Party specifying the nature and
   extent of the event of Force Majeure, its anticipated duration and any action
   being taken to avoid or minimize its effect. Subject to providing such notice
   and to Section 21.1, the Force Majeure Party shall not be liable for delay in
   performance or for non-performance of its obligations under this Agreement, in
   whole or in part, nor shall the other Party have the right to terminate this
   Agreement, except as otherwise provided in this Agreement, where non-performance
   or delay in performance has resulted from an event of Force Majeure. The
   suspension of performance allowed hereunder shall be of no greater scope and no
   longer duration than is reasonably required.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|21.3. | The Force Majeure Party shall use reasonable endeavours, without being obligated
   to incur any expenditure or cost, to bring the Force Majeure event to a close or
   to find a solution by which this Agreement may be performed despite the
   continuation of the event of Force Majeure.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21.4. | If the Force Majeure Party is prevented from performing its obligations due to a
   Force Majeure event for a continuous period in excess of **** after the date of
   the occurrence of the Force Majeure event, and such failure to perform would
   constitute a material breach of this Agreement in the absence of such Force
   Majeure event, the Parties shall meet and discuss in good faith any amendments
   to this Agreement to permit the other Party to exercise its rights under this
   Agreement. If the Parties are not able to agree on such amendments within ***
   and if the suspension of performance continues, final resolution shall be
   determined by binding arbitration pursuant to Section 24.2.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | Assignment
|--- | ----------

|22.1. |  | Neither
Party may assign its rights or, except as provided in Sections 3.3, 7.7,   7.8
and 7.9, delegate its obligations under this Agreement, whether by operation   of
law or otherwise, in whole or in part without the prior written consent of   the
other Party, which consent shall not be unreasonably withheld or delayed,
   except that AstraZeneca shall always have the right, without such consent, (a)
   to perform any or all of its obligations and exercise any or all of its rights
   under this Agreement through any of its Affiliates or Sublicensees, and (b) on
   written notice to Palatin, assign any or all of its rights and delegate any or
   all of its obligations hereunder to any of its Affiliates or to any successor
in   interest (whether by merger, acquisition, asset purchase or otherwise) to
all or   substantially all of the business to which this Agreement relates. Any
permitted   successor of a Party or any permitted assignee of all of a Partys
rights   under this Agreement that has also assumed all of such Partys
obligations   hereunder in writing shall, upon any such succession or
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | assignment
and   assumption, be deemed to be a party to this Agreement as though named
herein in   substitution for the assigning Party, whereupon the assigning Party
shall cease   to be a party to this Agreement and shall cease to have any rights
or   obligations under this Agreement. All validly assigned rights of a Party
shall   inure to the benefit of and be enforceable by, and all validly delegated
   obligations of such Party shall be binding on and be enforceable against, the
   permitted successors and assigns of such Party, provided that such Party, if it
   survives, shall remain jointly and severally liable for the performance of such
   delegated obligations under this Agreement. Any attempted assignment or
   delegation in violation of this Article 22 shall be void. Notwithstanding any
   other provision of this Article 22, the terms of this Agreement may be varied,
   amended or modified or this Agreement may be suspended, cancelled or terminated
   without the consent of any assignee or delegate that is not deemed pursuant to
   the provisions of this Article 22 to have become a party to this Agreement.
   Notwithstanding anything to the contrary herein, after the Collaboration Term
   Palatin may assign its right to receive payments hereunder to any Third Party
   without the consent of AstraZeneca; provided, however and for the avoidance of
   doubt that (i) such assignee will have no further or broader rights in relation
   to AstraZeneca than Palatin would have had under this Agreement, (ii) such
   assignee will not have any rights in relation to AstraZeneca under this
   Agreement other than the right to receive payments and (iii) Palatin shall
   reimburse AstraZeneca for any increased costs that AstraZeneca may have as a
   consequence of such assignment.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23. | Severability
|--- | ------------

| | To
the fullest extent permitted by applicable law, the Parties waive any provision of law
that would render any provision of this Agreement invalid, illegal or unenforceable in any
respect. If any provision of this Agreement is held to be invalid, illegal or
unenforceable, in any respect, then such provision will be given no effect by the Parties
and shall not form part of this Agreement. To the fullest extent permitted by Applicable
Law and if the rights or obligations of any Party will not be materially and adversely
affected all other provisions of this Agreement shall remain in full force and effect, and
the Parties shall use their best efforts to negotiate a provision in replacement of the
provision held invalid, illegal or unenforceable that is consistent with Applicable Law
and achieves, as nearly as possible, the original intention of the Parties.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|24. | Governing Law and Dispute Resolution
|--- | ------------------------------------

|24.1. | Governing Law. The interpretation and construction of this Agreement
   shall be governed by the laws of the State of New York, U.S., excluding any
   conflicts or choice of law rule or principle that might otherwise refer
   construction or interpretation of this Agreement to the substantive law of
   another jurisdiction.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24.2. | Arbitration. In the event of any controversy or claim arising out of or
   relating to any provision of this Agreement, the Parties shall try to settle
   their differences amicably between themselves. Any unresolved disputes arising
   between the Parties relating to, arising out of or in any way connected with
   this Agreement or any term or condition hereof, or the performance by either
   Party of its obligations hereunder, whether during the term or after termination
   of this Agreement, shall be resolved by final and binding arbitration. Whenever
   a Party shall decide to institute arbitration proceedings, it shall give written
   notice to that effect to the other Party. Arbitration shall be held in New York,
   New York, U.S., according to the rules of the International Chamber of Commerce
   (the ICC). The arbitration will be conducted by a panel of three (3)
   arbitrators appointed in accordance with ICC rules; provided that each Party
   shall within thirty (30) calendar days after the institution of the arbitration
   proceedings appoint one arbitrator each, and such arbitrators shall select, if
   they shall agree, a third arbitrator within thirty (30) calendar days
   thereafter. If the two first arbitrators are unable to select a third arbitrator
   within such period, the third arbitrator shall be appointed in accordance with
   ICC rules. All arbitrators eligible to conduct the arbitration must agree to
   render their opinion(s) within thirty (30) calendar days of the final
   arbitration hearing. No arbitrator (nor the panel of arbitrators) shall have the
   power to award punitive damages under this Agreement and such award is expressly
   prohibited. Decisions of the arbitrators shall be confidential, final and
   binding on all of the Parties. Judgment on the award so rendered may be entered
   in a court having jurisdiction thereof. The losing Party to the arbitration (if
   any) as determined by the arbitrators shall pay the costs of arbitration. The
   proceedings, including any outcome, shall be confidential. Nothing in this
   Section 24.2 will preclude either Party from seeking equitable relief in
   accordance with Article 33 or interim or provisional relief from a court of
   competent jurisdiction, including a temporary restraining order, preliminary
   injunction or other interim equitable relief, concerning a dispute either prior
   to or during any arbitration if necessary to protect the interests of such Party
   or to preserve the status quo pending the arbitration proceeding.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

90

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|25. | Interpretation of Certain Evidence
|--- | ----------------------------------

| | Any
dispute with respect to whether a compound is a Collaboration Compound shall be subject to
the provisions of Article 24, provided that, whatever the dispute resolution proceedings
or procedures, the Parties agree that AstraZenecas internal laboratory books and
records from the relevant discovery process and its other relevant documentation (e.g.,
in-license agreements, invention disclosure documents or Patents disclosing or covering
such compound) shall provide presumptive evidence with respect to any such dispute and
Palatin shall bear the burden of proving that such documentation is not accurate.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26. | Notices
|--- | -------

|26.1. | Notice Requirements. Any notice, request, demand, waiver, consent,
   approval or other communication permitted or required under this Agreement shall
   be in writing and shall be deemed given only if delivered by hand or sent by
   facsimile transmission (with transmission confirmed) or by
   internationally-recognised overnight delivery service that maintains records of
   delivery, addressed to the Parties at their respective addresses specified in
   Section 26.2 or to such other address as the Party to whom notice is to be given
   may have provided to the other Party in accordance with this Article 26. Such
   notice shall be deemed to have been given as of the date delivered by hand or
   transmitted by facsimile (with transmission confirmed) or on the second business
   day (at the place of delivery) after deposit with an internationally-recognised
   overnight delivery service. Any notice delivered by facsimile shall be confirmed
   by a hard copy delivered as soon as practicable thereafter. This Article 26 is
   not intended to govern the day-to-day business communications necessary between
   the Parties in performing their obligations under the terms of this Agreement.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

91

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|26.2. | Address for Notice
|----- | ------------------

| |      |                                                                                                                                                                                                                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | For: | AstraZeneca AB
SE-151 85 Södertälje
Sweden
Facsimile:   +46 8 553 29000
For the attention of: Executive VP, Global Discovery Research
With a copy to: AstraZeneca
Legal Department
Västra Mälarehamnen 9
SE-151 85 Södertälje
Sweden
Facsimile:   + 46 8 553 233 00
For the attention of: Assistant General Counsel
| | For: | Palatin
Palatin Technologies, Inc.
4-C Cedar Brook Drive
Cranbury, New Jersey 08512
Facsimile:   609.495.2202
For the attention of: Stephen T. Wills                                                                                                                                                               

27. Relationship of the
Parties

| | The
status of a Party under this Agreement shall be that of an independent contractor. Nothing
contained in this Agreement shall be construed as creating a partnership, joint venture or
agency relationship between the Parties or, except as otherwise expressly provided in this
Agreement, as granting either Party the authority to bind or contract any obligation in
the name of or on the account of the other Party or to make any statements,
representations, warranties or commitments on behalf of the other Party. All persons
employed by a Party shall be employees of such Party and not of the other Party and all
costs and obligations incurred by reason of any such employment shall be for the account
and expense of such Party.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

92

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28. Entire Agreement

| | This
Agreement constitutes the entire agreement between the Parties with respect to the subject
matter of this Agreement. This Agreement supersedes all prior agreements, whether written
or oral, with respect to the subject matter of this Agreement. Each Party confirms that it
is not relying on any representations, warranties or covenants of the other Party except
as specifically set out in this Agreement. Nothing in this Agreement is intended to limit
or exclude any liability for fraud. All Schedules and Exhibits referred to in this
Agreement are intended to be and are hereby specifically incorporated into and made a part
of this Agreement. In the event of any inconsistency between any such schedules or
Exhibits and this Agreement, the terms of this Agreement shall govern.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29. English Language

| | This Agreement is written and executed in the English language. Any translation into any other
language shall not be an official version of this Agreement and in the event of any
conflict in interpretation between the English version and such translation, the English
version shall prevail.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30. Amendment

| | Any
amendment or modification of this Agreement must be in writing and signed by authorised
representatives of both Parties.
| | ----------------------------------------------------------------------------------------------------------------------------

31. Waiver and
Non-Exclusion of Remedies

| | A
Partys failure to enforce, at any time or for any period of time, any provision of
this Agreement, or to exercise any right or remedy shall not constitute a waiver of that
provision, right or remedy or prevent such Party from enforcing any or all provisions of
this Agreement and exercising any rights or remedies. To be effective any waiver must be
in writing. The rights and remedies provided herein are cumulative and, except as
expressly provided in this Agreement, do not exclude any other right or remedy provided by
law or otherwise available.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

93

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32. No Benefit to Third
Parties

| | The
provisions of this Agreement are for the sole benefit of the Parties and their successors
and permitted assigns, and they shall not be construed as conferring any rights in any
other Persons.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

33. Equitable Relief

| | Palatin
acknowledges and agrees that the restrictions set forth in Section 3.7 and Article 13 of
this Agreement are reasonable and necessary to protect the legitimate interests of
AstraZeneca and that AstraZeneca would not have entered into this Agreement in the absence
of such restrictions, and that any breach or threatened breach of any provision of Section
3.7 or Article 13 will result in irreparable injury to AstraZeneca for which there will be
no adequate remedy at law. In the event of a breach or threatened breach of any provision
of Section 3.7 or Article 13, AstraZeneca shall be authorised and entitled to obtain from
any court of competent jurisdiction injunctive relief, whether preliminary or permanent,
specific performance and an equitable accounting of all earnings, profits and other
benefits arising from such breach, which rights shall be cumulative and in addition to any
other rights or remedies to which AstraZeneca may be entitled in law or equity. Palatin
agrees to waive any requirement that AstraZeneca (a) post a bond or other security as a
condition for obtaining any such relief, and (b) show irreparable harm, balancing of
harms, consideration of the public interest or inadequacy of monetary damages as a remedy.
Nothing in this Article 33 is intended, or should be construed, to limit
AstraZenecas right to equitable relief or any other remedy for a breach of any other
provision of this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

34. Further Assurance

| | Each
Party shall perform all further acts and things and execute and deliver such further
documents as may be necessary or as the other Party may reasonably require to implement or
give effect to this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

94

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35. Expenses

| | Except
as otherwise expressly provided in this Agreement, each Party shall pay the fees and
expenses of its respective lawyers and other experts and all other expenses and costs
incurred by such Party incidental to the negotiation, preparation, execution and delivery
of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

36. Counterparts

| | This
Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and all of which taken together shall be deemed to constitute one and the same
instrument.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Parties
hereto have executed this Agreement in two (2) original copies of which each of the
Parties have taken one each.

|                                                                                                                                                        |                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
|SIGNED for and on behalf of
AstraZeneca AB (publ)
Signature /s/ Jan M Lundberg
Name: Jan M Lundberg
Title: Executive Vice President
   Global Discovery | SIGNED for and on behalf of
Palatin Technologies, Inc.
Signature /s/ Carl Spana
Name: Carl Spana
Title: CEO and President

95

---

Schedule 1.12

AstraZeneca
Principal Scientists

| |      |      | 
| | ---- | ---- | 
| | Name | Role | 

***

---

Schedule 1.68*** Patents

| |         |          |       |       |        | 
| | ------- | -------- | ----- | ----- | ------ | 
| | Country | App. No. | Title | Filed | Status | 
| | ***     |         

---

Schedule 1.71

Licensed Know-How

| |   |                                                                                                   | 
| | - | ------------------------------------------------------------------------------------------------- | 
| |  | Information relating to Compounds, ***, to the extent not disclosed in
     the Licensed Patents; | 
| |  | ***; and                                                                                          | 
| |  | ***                                                                                               | 

---

Schedule 1.72***

| |         |          |       |       |        | 
| | ------- | -------- | ----- | ----- | ------ | 
| | Country | App. No. | Title | Filed | Status | 
| | ***     |         

---

Schedule 1.92

Research Plan

***

---

Schedule 3.1

AstraZeneca International
Policy on Animal Care and Use

Laboratory Animals: Care
and Use

Laboratory animals play an essential
role in the research process and safety data from animal experiments are an essential
requirement of the regulatory authorities before any new therapeutic agents can be tested
in humans.

AstraZeneca R&D considers the
responsible use of animals to be ethically appropriate where alternatives are not
available.

All research involving animals must
be carefully considered and justified. The following principles will be fulfilled:

| |  | A humane approach will be adopted in the care and treatment of all animals, and the
greatest consideration given to their health and welfare consistent with meeting the
necessary scientific objectives.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Alternatives will be proactively sought wherever possible, through research, to replace
and reduce the use of animals and to refine experimental techniques.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | All research which necessitates the use of animals will be designed and undertaken so as
to minimise, and preferably avoid, pain, suffering and stress.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | All studies will use the minimum number of the most appropriate species and strain of
animal to achieve the scientific objectives.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------

| |  | The sharing of information and data throughout both AstraZeneca R&D and the wider
scientific community to enhance the development and uptake of replacement, reduction and
refinement techniques will be encouraged.
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Employees will be adequately trained and competent in the procedures they perform and in
the care and welfare they provide.
|- |  | ---------------------------------------------------------------------------------------------------------------------------

| |  | All work involving animals will be undertaken strictly in accordance with relevant local,
national and internationallegislation, regulations and guidelines.
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------

---

Schedule 3.2

Key Personnel
(including Palatin Principal Scientists)

| |      |      |              | 
| | ---- | ---- | ------------ | 
| | Name | Role | Percent Time | 

***

---

Schedule 8

Form of Confirmatory
Patent Licenses

DRAFT

Date:

Parties:

(1)      `The Licensor':
____________ having its registered office at __________.

(2)      `The Licensee':
____________ having its registered office at __________.

Recitals:

By an Agreement (the Main
Agreement) dated _________________ and made between the Licensor and the Licensee
the Licensor granted for the consideration therein contained to the Licensee a licence
under [] (the Patent). Operative provisions:

|1. | In pursuance of the Main Agreement and for the consideration referred to in the
          Main Agreement the Licensor hereby confirms the grant to the Licensee of the
          exclusive licence from the Effective Date for the term specified in the Main
          Agreement to manufacture, market, sell and otherwise dispose of Licensed
          Products (as defined in the Main Agreement) for the life of the Patent and
          subject to the provisions of the Main Agreement.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Subject as provided in the Main Agreement this Licence shall terminate without
          notice in the event of the termination for any reason of the Main Agreement.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN WITNESS of which this Agreement
has been executed as a deed and delivered the day and year first above written.

EXECUTED as a Deed by _________________ acting by:[name of director] and:[name of director/secretary[
EXECUTED as a Deed by _________________ acting by:[name of director] and:[name of director/secretary[

---

Schedule 10.1.2.1(A)(i)

***

---

Schedule 10.1.2.1(A)(ii)

***

---

Schedule 13.6

Press Release

AstraZeneca
and Palatin Technologies Announce Worldwide Collaboration
to Discover, Develop and Commercialise Obesity Compounds

AstraZeneca and Palatin Technologies
(AMEX: PTN) (companies) today announced an exclusive global licensing and
research collaboration agreement to discover, develop and commercialise small molecule
compounds that target melanocortin receptors.

The collaboration is based on
Palatins melanocortin receptor Obesity programme and includes access to compound
libraries, core technologies and expertise in melanocortin receptor drug discovery and
development. A near term objective of the collaboration is to finalise selection of a lead
drug candidate for clinical evaluation. Data accumulated from genetic, pharmacological and
physiological studies identify the central melanocortin system as a key regulator of
energy homeostasis. This offers significant potential for the development of novel
treatments for obesity, diabetes and metabolic syndrome.

Under the terms of the agreement,
Palatin will receive an upfront payment of $10 million from AstraZeneca and is eligible
for milestone payments totalling $300 million, with up to $180 million contingent upon
development and regulatory milestones and the balance on achievement of sales targets,
together with the payment of stepped royalties on product sales to double digit rates,
dependent on sales achieved. AstraZeneca will assume responsibility for product
commercialisation, product discovery and development costs, with both companies
contributing scientific expertise in the research collaboration.

Jan Lundberg, Executive Vice
President, Discovery, AstraZeneca, said; This agreement supports our commitment to
discovering and developing innovative medicines in the diabetes and obesity areas. Obesity
and its related indications are an area of strategic importance and this novel approach
afforded by targeting melanocortin receptors has the potential to become one of the
leading treatment modalities of obesity. The deal is an example of us accessing the best
science outside AstraZeneca and also fits with our recent decision to re-focus disease
research with diabetes/obesity now one of the priority areas.

Obesity is increasing at an
alarming rate and is a primary factor behind the growing prevalence of type 2 diabetes,
cardiovascular disease, and certain cancers, said Dr. Trevor Hallam, Executive Vice
President, Research and Development of Palatin. We have made considerable progress
with the pre-clinical development of our melanocortin receptor-based programmes,
especially in the obesity area and we are quite excited to take this programme to the next
level with a world-class organisation like AstraZeneca.

This collaboration with
AstraZeneca points to the progress we have made with our melanocortin receptor obesity
programme and the potential of melanocortin receptors as targets for obesity. It
recognises the value Palatin has built and provides the necessary resources to advance the
programme. AstraZeneca has a long-standing record of achievement in drug development and
commercialisation and their global leadership in relevant therapeutic areas makes them the
ideal party to maximise the potential of our obesity programme, stated Carl Spana,
Ph.D. Palatins President & Chief Executive Officer. This collaboration
highlights the potential of our internal research and development capabilities.

About Obesity

The rate of obesity, a chronic
disease in which a persons body weight is seriously greater than is considered
healthy, has substantially increased over the past decade  impacting millions of
people worldwide  and is expected to continue to grow. Today, over 1.1 billion
adults and over 150 million children worldwide are overweight, with over 300 million
adults categorised as obese. According to the American Obesity Association, obesity is the
second leading cause of preventable death after smoking and nearly one-third of adults in
the United States are obese. Obesity is associated with a number of serious conditions
such as heart disease, stroke, cancer, high blood pressure, and diabetes. Americans spend
almost $120 billion on medical and related costs of obesity according to the U.S. Surgeon
General. Developing an effective therapeutic to address this serious condition could help
save billions of dollars as well as millions of lives.

About AstraZeneca

AstraZeneca is a major international
healthcare business engaged in the research, development, manufacture and marketing of
prescription pharmaceuticals and the supply of healthcare services. It is one of the
worlds leading pharmaceutical companies with healthcare sales of $23.95 billion and
leading positions in sales of gastrointestinal, cardiovascular, neuroscience, respiratory,
oncology and infection products. AstraZeneca is listed in the Dow Jones Sustainability
Index (Global) as well as the FTSE4Good Index. For more information about AstraZeneca,
please visit: http://www.astrazeneca.com

About Palatin
Technologies, Inc.

Palatin Technologies, Inc. is a
biopharmaceutical company focused on discovering and developing targeted,
receptor-specific small molecule and peptide therapeutics. The Companys lead product
candidate, bremelanotide, is currently in Phase II clinical trials for both male and
female sexual dysfunction. The Companys internal research and development
capabilities, anchored by its proprietary MIDAS technology, are fuelling product
development. Palatins strategy is to develop products and then form marketing
collaborations with industry leaders in order to maximise their commercial potential. To
date, the Company has entered into collaborations with AstraZeneca, King Pharmaceuticals
and Tyco Healthcare Mallinckrodt. For additional information regarding Palatin, please
visit Palatin Technologies website at http://www.palatin.com.

-Ends-

X January, 2007

For further information
contact:

AstraZeneca Media
Enquiries:Edel McCaffrey, Tel: +44 (0) 207 304 5034Steve Brown, Tel: +44 (0) 207
304 5033AstraZeneca Investor Enquiries:
Mina Blair, Tel: +44 (0) 207 304 5084
Jonathan Hunt, Tel: +44 (0) 207 304 5087
Karl Hard, Tel:  +44 (0)20 7304 5322
Ed Seage, Tel: +1 302 886 4065
Jorgen Winroth, Tel + 1 212 579 0506

Palatin Technologies
Media Inquiries:
Stephen T. Wills, CPA, MST
EVP-Operations / Chief Financial Officer
Tel: (609) 495-2200
info@palatin.com

Palatin Technologies
Investor Inquiries:Carney Noensie, Burns McClellan
Tel: (212) 213-0006
cnoensie@burnsmc.com

---

Schedule 18.1.16

Palatins
agreements relating to the Licensed Patents or Compounds

| |   |     | 
| | - | --- | 
| |  | *** | 
| |  | *** | 

---

Schedule 18.1.19

| |   |     | 
| | - | --- | 
| |  | *** |