Document:

Exhibit  10.1

                                    AGREEMENT

THIS  AGREEMENT  made this the 29th day of September  2004 by and between  Texas
Energy  Trust  Company  (TETCO) (a Delaware  Business  Trust) of 391 Las Colinas
Boulevard,  Suite 545,  Irving,  Texas  75039 and Trans  Energy,  Inc. (a Nevada
Corporation)  (Trans  Energy) of 210 Second Street.  St.  Mary's,  West Virginia
26170.

Whereby  TETCO is the owner of  certain  assets  located  in Wetzel  and  Marion
Counties.  West  Virginia.  Those  assets  consist  of oil  and gas  leased  and
leasehold  estates  including wells,  pipelines,  gas purchase  agreements,  oil
hauling agreements,  equipment,  right of ways and all other miscellaneous items
attached or incorporated into the leases so described above.

This purchase  encompasses  the  properties  and  equipment  owned by Cobham Gas
Industries,  Inc. It is the  intention  that Trans Energy  acquires the stock of
Cobham. Should this not be possible for whatever reason, then Trans Energy, Inc.
will acquire the assets of Cobham.  Those assets  include  three (3) oil and gas
fields and equipment described as follows:

1.       Manning Field  located in Marion  County,  West Virginia  consisting of
         4,573 acres upon which 107 wells are located.

2.       Dents Run Field in Marion  County,  West  Virginia  consisting of 1,097
         acres upon which 30 wells are located.

3.       Smithfield/Wallace  Field located in Marion and Wetzel  Counties,  West
         Virginia consisting of 9,223 Acres upon which 92 wells are located.

         A list of the wells and API numbers are includes as Exhibit "A"

4.       Equipment listed on Exhibit "B"

         All  records  held and or  owned by  Cobham  will  immediately  be made
         available to Trans Energy,  Inc. for its review.  All records including
         leases,  rights of way, gas contracts,  oil hauling  agreements and all
         other records  pertinent to the leases so described  above will be made
         available  for review  and so  transferred  to Trans  Energy,  Inc.  at
         closing.

         Trans Energy,  Inc. shall have thirty (30) calendar days commencing the
         1st day of October 2004 to complete its due diligence.

         The terms of the agreement are as follows:

         1. The  purchase  price is  $1,975.058.00  25% in cash and 75% in Trans
            Energy, Inc. restricted Common Stock.

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         2. The payment arrangement will be:

            A. 25% cash equated to $489,264.00 to be paid in the following terms

                  a.  $250,000 at closing and the  remaining  paid  quarterly in
                  equal installments of $59,816.00 beginning January 1, 2005 and
                  final payment being made on October 1, 2005.

            B. 244,633 Restricted Shares of Trans Energy, Inc. Common Stock

            Texas Energy Trust Company         Trans Energy, Inc.

            /s/ G.S. Hillyer                   /s/ Loren L. Bagley
            ------------------------           -----------------------
            G.S. Hillyer-Trustee               Loren L. Bagley
                                               Vice President

                                      -2-Microsoft Word 10.0.2627;
Exhibit  10.2

                            ASSIGNMENT AND AGREEMENT

         This Assignment and Agreement  ("Assignment")  is made and entered into
this day of November,  2004, by Texas Energy Trust  Company  (TETCO) (a Delaware
Business  Trust),  (the  "Assignor")  and Prima Oil  Company,  Inc.  (a Delaware
Corporation),  (at times together referred herein as the "Purchaser") and Cobham
Gas Industries, Inc., a Delaware corporation (the "Corporation").

         WHEREAS,  the Assignor has executed  this  Assignment  providing of the
transfer  of  all of  its  interest  in the  stock  of  the  Corporation  to the
Purchaser;

         WHEREAS, Assignor has produces for the closing original stock
certificates issued by the Corporation to the Assignor; and

         WHEREAS, Assignor wished to provide indemnification for the validity of
the transfer;

         NOW, THEREFOR WITNESSETH:

1.       Assignment.  The Assignors, being the sole owners of all the issued and
         outstanding shares of stock in the Corporation,  COBHAM HAS INDUSTRIES,
         INC., a Delaware corporation, do hereby ASSIGN, SET OVER, TRANSFER, and
         DELIVER,  unto the Purchaser,  all of its right,  title and interest in
         and to the Corporation  COBHAM GAS  INDUSTRIES,  INC.: two thousand one
         hundred (2100) shared of common stock in the Corporation.

                  Certificates  for shares shall be transferred from Assignor to
         Purchaser  contemporaneously  herewith, and the undersigned does hereby
         request the Corporation to transfer the said shares on the books of the
         Corporation.

         Further, The Assignor does hereby covenant and agree to execute any all
further  assignment,  documents,  or other  evidences  of transfer  necessary to
implement  the  foregoing  assignment,  it being the intent of this  document to
transfer one hundred percent (100%) of the issued and outstanding  shares of the
Corporation to the Purchaser.

         2.   Representation  and  Warranties.  Assignor  does hereby  covenant,
              represent  and  warrant  to the  Purchaser,  and each of them,  as
              follows:

              (a)  This Agreement is legally  sufficient to transfer one hundred
                   percent  (100%)  of the  shares  of stock of the  Corporation
                   issued and outstanding to the Purchaser free and clear of all
                   liens and encumbrances.

              (b)  The authorized  capital stock of the Corporation  consists of
                   10,000 shares of voting and common stock,  of which,  on this
                   date, 2100 shares are issued and outstanding.  All issued and
                   outstanding  shares have been dully  authorized  and validity
                   issued,  are fully paid and  nonassessable  with no liability
                   attaching to their holder. There are no options, warrants, or
                   other  rights of  agreements  of any kind for the purchase or
                   acquisition  from,  or the  issuance  of or the sale by,  the
                   Corporation,  or any outstanding securities convertible into,
                   any shares of the authorized capital stock.

              (c)  Assignors are the  beneficial  and record owner of all of the
                   issued and  outstanding  common stock of the  Corporation and
                   has good and valid  title to the shares free and clear of any
                   lien, pledge, charge, security interest, encumbrance, adverse
                   claim,  option,  or equity.  On the delivery of the shares on
                   the  closing  date and receipt of the  purchase  price on the
                   closing  date,  as provided in the  Agreement,  the Purchaser
                   will acquire shares of stock in the  Corporation  having good
                   and valid title, free and clear of any lien,  pledge,  charge
                   security interest,  encumbrance,  title retention  agreement,
                   adverse claim, option, or equity.

              (d)  The execution, delivery and performance of this Assignment by
                   the Assignors  will not conflict with or result in the breach
                   of any of the terms or provisions of, or constitute a default
                   under, any note,  indenture,  mortgage,  deed of trust,  loan
                   agreement  or other  agreement  or  instrument  to which  the
                   Assignor is a party or by which the Assignor can be bound.

3.       Hold Harmless and  Indemnification.  The Assignor does agree to defend,
         indemnify and hold harmless the Corporation, the Purchaser, and each of
         them their  successors  and assigns from all demands,  legal fees,  and
         costs,  actions,  causes  of  action,  damages,   assessments,   fines,
         penalties, and other claims now known or thereafter discovered,  in the
         event any issues and  outstanding  share or shares in the  Corporation.
         The Assignors  covenant that they will  reimburse  the  Corporation  or
         Purchase  or each of them,  as the  case may be,  for all sums of money
         which the  Corporation  or the Purchaser  shall pay or become liable to
         pay by reason of the  foregoing,  and will  make such  payments  to the
         Corporation  and  Purchaser  as  soon as  either  shall  become  liable
         therefore,  whether or not the  Corporation or the Purchaser shall have
         paid out such sums of any part thereof.

         The provisions of this section be binding on Assignors'  successors and
assigns,  and shall be in  addition  to any other  obligations  and  liabilities
Assignors may have to the Corporation or to the Purchasers at law or equity.

         WITNESS  the  following  signatures  effective  as of  the  5th day  of
         November, 2004.

                                                     TEXAS ENERGY TRUST COMPNAY

                                                     BY:   /S/  G.S. Hillyer
                                                          ----------------------
                                                     ITS:   Trustee

                                                     PRIMA OIL COMPANY, INC.

                                                     BY:   /S/  Loren L. Bagley
                                                          ----------------------
                                                     ITS:   President<PAGE>

                                    ***CERTAIN CONFIDENTIAL INFORMATION
                                    CONTAINED IN THIS DOCUMENT (INDICATED BY
                                    ASTERISKS) HAS BEEN OMITTED AND FILED
                                    SEPRATELY WITH THE SECURITIES AND EXCHANGE
                                    COMMISSION PURSUANT TO A REQUEST FOR
                                    CONFIDENTIAL TREATMENT UNDER 17 C.F.R.
                                    SECTIONS 200.80(b)(4) AND 240.24b-2

                                                                   Exhibit 10.35

                                    AGREEMENT

This Agreement effective as of July 28, 2004 ("Effective Date") is made between
Anadys Pharmaceuticals, Inc. having a place of business at 3115 Merryfield Row,
San Diego, CA 92121 ("Anadys") and Hoffmann-La Roche Inc. having a place of
business at 340 Kingsland Street, Nutley, New Jersey 07110 ("Roche").

WHEREAS, Anadys has expertise in designing, synthesizing, and optimizing small
molecule target activators;

WHEREAS, Roche has expertise in pharmaceutical research and development,
including in vitro and in vivo testing of [...***...] ([...***...]);

WHEREAS, Roche has discovered and synthesized certain lead molecules that
[...***...]; and

WHEREAS, Anadys and Roche desire to enter into an agreement for Anadys to design
and synthesize [...***...] based on the lead molecules provided by Roche and
input obtained from the in vitro and in vivo testing of the molecules to be
synthesized by Anadys as [...***...];

NOW, THEREFORE, the parties agree as follows:

1.    TARGET. The target that is to be [...***...] is [...***...] ("Target").

2.    LEAD MOLECULES. Roche shall provide Anadys with lead molecules that will
      be used by Anadys to design and synthesize molecules optimized for
      [...***...] of the Target.

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3.    PLAN AND MOLECULES. Anadys and Roche have agreed on an initial research
      plan ("Research Plan") under which Anadys and Roche shall use commercially
      reasonable efforts to design and synthesize molecules that are optimized
      for [...***...] of the Target ("Molecules") based on the lead molecules
      provided by Roche. The Research Plan may be later revised by the JRC, as
      defined in Paragraph 4. Once Molecules have been synthesized, they will be
      subject to in vitro screening by Anadys or Roche to determine the extent
      to which such Molecules [...***...] the Target. Thereafter, the Molecules
      that meet certain minimum requirements in the in vitro screening, as
      determined by the JRC, will be tested by Roche, as specified in the
      Research Plan. Such Molecules that are synthesized by Anadys shall be
      initially provided to Roche in amounts between [...***...] milligrams
      ([...***...] mg) and [...***...] milligrams ([...***...] mg). Anadys shall
      provide Roche with the structure of each such Molecule and any information
      about the Molecule that is available to Anadys. If the JRC determines that
      one or more Molecules are suitable for further development, then such
      Molecules may serve as lead molecules and be used to design and synthesize
      additional Molecules that are further optimized for [...***...] of the
      Target as above. All activities referred to above shall constitute the
      "Project." To aid in understanding the goal of the Project, the desired
      attributes of Molecules are as specified in the Research Plan.

4.    JOINT RESEARCH COMMITTEE. Roche and Anadys shall establish a joint
      research committee ("JRC") to oversee, review, manage and direct the
      activity under the Research Plan. The responsibilities of the JRC shall
      include: (i) monitoring and reporting the progress of the activity of the
      Project, (ii) revising the Research Plan as necessary, and (iii) resolving
      any conflicts between the parties. The JRC shall include three (3)
      representatives of each party that are selected by that party. Roche
      representatives can include representatives that are employees of an

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      Affiliate. "Affiliate" means (i) a business entity which owns a
      controlling interest in Roche, (ii) a business entity which is owned by
      Roche, or (iii) a business entity, the majority ownership of which is
      common to the majority ownership of Roche. Each party may replace its
      representatives at any time, upon written notice to the other party.
      During the Collaboration Term (as defined below), unless otherwise agreed
      to by the Parties, the JRC shall meet at least quarterly, at such
      locations or by such teleconferencing means as the parties may decide.
      Each party shall be responsible for all of its expenses associated with
      attending the JRC meetings. Anadys shall prepare written minutes of each
      JRC meeting and shall prepare a written record of all JRC voting and
      decisions, whether made at a JRC meeting or otherwise. Anadys shall submit
      the written minutes of each JRC meeting and the written record of all JRC
      voting and decisions to Roche for review within one (1) week after the JRC
      meeting, and upon signature by Roche, the minutes and written voting and
      decision record shall become final. Decisions of the JRC shall be made by
      unanimous vote, with each Party having a single vote. If there is a
      dispute between the parties with respect to a specific matter that cannot
      be resolved by the JRC, such matter shall be referred for resolution to an
      officer of each party, then if still unresolved, Roche shall make the
      final decision.

5.    TERM. The term of the Project shall begin on the Effective Date and
      continue until the date eighteen (18) month after Roche makes the first
      research funding payment, unless mutually extended by the Parties
      ("Collaboration Term"). The term of the Agreement shall begin on the
      Effective Date and continue until the latter of (i) the date on which the
      Collaboration Term ends or (ii) the date on which no payments are due
      under this Agreement.

6.    EXCLUSIVITY. For a period beginning on the Effective Date and continuing
      until a date [...***...] following the date on which the Collaboration
      Term

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Roche - Anadys Agreement
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      ends, Anadys will not work on the Target and the Molecules (other than as
      permitted pursuant to Section 7) except as a part of the Project.

7.    OWNERSHIP AND LICENSES. Roche shall own all Molecules and all intellectual
      property related to the Molecules. Anadys shall promptly assign to Roche
      all such intellectual property and shall ensure that all persons working
      for Anadys and on the Project have such an obligation to assign all
      intellectual property to Roche. Any invention that is conceived and
      reduced to practice during the Project but is not related to the Molecules
      shall be owned by the party that made the invention or, in the case of a
      joint invention, by both parties. Inventorship shall be determined in
      accordance with U.S. patent law. Anadys grants to Roche a non-exclusive,
      worldwide, fully paid up, royalty-free, license under any other
      intellectual property that is created before or during the Collaboration
      Term that it may own or control to the extent necessary for Roche to make,
      have made, use, sell, offer for sale, and import the Molecules or
      Compounds. Anadys shall have the right to use the Molecules for screening
      purposes, except against the Target. Roche grants to Anadys a
      non-exclusive, worldwide, fully paid up, royalty-free, license under the
      intellectual property generated during the Project to the extent necessary
      for Anadys to use the Molecules for screening purposes, except against the
      Target.

8.    RESEARCH FUNDING. Roche shall fund [...***...] ([...***...]) full time
      equivalents (FTEs) [...***...] at [...***...] dollars ($[...***...]) per
      FTE per annum to work exclusively on the Project. The JRC shall have the
      discretion to increase the number of FTEs, subject to Anadys staffing
      capacity.

      [...***...]

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      It is envisaged that the FTEs will be from the functional areas designated
      above. However, the final selection of functional areas is subject to the
      discretion of the JRC. Funding for the FTEs shall be on a quarterly basis,
      payable in advance. The first payment for research funding by Roche to
      Anadys shall be made within [...***...] after the Effective Date. Anadys
      shall provide Roche with an invoice for each payment due and Roche shall
      pay Anadys within [...***...] days after receiving such invoice.

9.    MILESTONE PAYMENTS.

      "Product" means a pharmaceutical product that contains [...***...]. If a
      Product is being developed by Roche, an Affiliate or a sub-licensee and
      reaches a following milestone event ("Milestone Event"), then Roche shall
      pay to Anadys [...***...] after receiving an invoice from Anadys the
      corresponding milestone payment:

      Start Phase I                               US$[...***...]
      Start Phase II                              US$[...***...]
      Start Phase III                             US$[...***...]

      NDA Filing                 USA              US$[...***...]
                                 EU               US$[...***...]

      First Commercial Sale      USA              US$[...***...]
                                 EU               US$[...***...]

      The terms "Phase I," "Phase II," and "Phase III" have the meaning ascribed
      in 21 C.F.R. Section 312.21(a), (b), and (c), respectively, as may be
      amended. "Start" with reference to Phase I, Phase II or Phase III means
      the dosing of the first patient in that phase's first clinical trial.
      "NDA" means a New Drug Application having the meaning ascribed in 21
      C.F.R. Section 314.50 or its equivalent in the European Union. "First
      Commercial Sale"

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      means the first sale of a Product by or on behalf of Roche after receiving
      approval from the U.S. Food and Drug Administration or its equivalent in
      the European Union.

      Roche shall have no obligation to commercialize or otherwise pursue any
      Molecule or Product. However, if Roche develops Product that reaches a
      Milestone Event, then Roche shall notify Anadys promptly after the
      occurrence of such Milestone Event.

10.   ROYALTIES. If a Product is sold by or on behalf of Roche, then Roche shall
      pay to Anadys during the Royalty Term a royalty on worldwide Net Sales of
      any such Product, as follows:

      Worldwide Net sales ($ million)             Royalty rate (%)

               [...***...]                                    [...***...]
               [...***...]                                    [...***...]

      "Royalty Term" means, in the case of any Product, in any country, the
      period of time commencing on the First Commercial Sale of such Product in
      any such country and ending upon the later of (a) [...***...] years after
      the date of First Commercial Sale in such country, and (b) the expiration
      of the last to expire of the patent rights claiming the Molecule (or any
      salt, ester, acid, base or pro-drug of the Molecule) or Compound per se
      contained in such Product, either specifically or generically, in such
      country.

            a.    NET SALES "Net Sales" means (i) the amount of gross sales of
      the Product invoiced by Roche, its Affiliates and its sub-licensees to
      independent third parties less deductions of returns and return reserves
      (including allowances actually given for spoiled, damaged, out-dated,

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      rejected, returned Product sold, withdrawals and recalls), rebates (price
      reductions, rebates to social and welfare systems, charge backs or
      reserves for chargebacks, cash sales incentives, cash discounts,
      government mandated rebates and similar types of rebates, e.g.
      Pharmaceutical Price Regulation Scheme, Medicaid), volume (quantity)
      discounts, taxes (value added or sales taxes, government mandated
      exceptional taxes and other taxes directly linked to the gross sales
      amount) ("Adjusted Gross Sales") minus (ii) a lump sum deduction of
      [...***...] percent ([...***...]%) of Adjusted Gross Sales in lieu of
      those sales related deductions which are not accounted for within Roche on
      a product by product basis (e.g. outward freights, postage charges,
      transportation insurance, packaging materials for dispatch of goods,
      custom duties, bad debt, and discounts granted later than at the time of
      invoicing). Notwithstanding the foregoing, amounts received by Roche, its
      Affiliates and sublicensees for the sale of Product among Roche, its
      Affiliates or sublicensees for resale shall not be included in the
      computation of Adjusted Gross Sales and Net Sales.

            b.    COMBINATION PRODUCT If the Product, in addition to the
      Molecule or Compound, contains other pharmaceutically active agent(s)
      ("Combination Product"), then the parties shall meet approximately one (1)
      year prior to commercial launch of such Combination Product to negotiate
      in good faith and agree to an appropriate adjustment to Net Sales to
      reflect the relative significance of the Molecule or Compound and the
      other pharmaceutically active agent(s) contained in the Combination
      Product.

            c.    CALCULATION Roche shall calculate royalties on Net Sales
      quarterly as of March 31, June 30, September 30, and December 31 (each
      being the last day of an "Accounting Period') and shall pay royalties on
      Net Sales quarterly within the ninety (90) days after the end of each
      Accounting Period in which such Net Sales occur. "Accounting Period"

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      means a calendar quarter commencing respectively on January 1,
      April 1, July 1, and October 1, each being the first day of an Accounting
      Period, and finishing respectively on March 31, June 30, September 30, and
      December 31, each being the last day of an Accounting Period.

            d.    CURRENCY Royalties on Net Sales shall be paid by Roche in U.S.
      Dollars. Whenever calculating royalties requires conversion from any
      currency, Roche shall make such conversion as follows:

      When calculating the Adjusted Gross Sales for countries other than the
      United States of America, Roche shall convert the amount of such sales in
      currencies other than Swiss Francs into Swiss Francs as computed in
      Roche's central Swiss Francs Sales Statistics for the countries concerned,
      using for internal foreign currency translation Roche's then current
      standard practices actually used on a consistent basis in preparing its
      audited financial statements. Upon converting the amount of Adjusted Gross
      Sales into Swiss Francs, Roche shall convert into US Dollars (or other
      currency), using the daily rate (Reuters) at the last working day for the
      applicable period.

            e.    REPORTS With each payment Roche shall provide in writing for
      the relevant Accounting Period at least the following information split by
      U.S. and rest of world:

            (i)   Adjusted Gross Sales;

            (ii)  Net Sales; and

            (iii) Total Royalty payable.

            f. TAXES Anadys shall pay all sales, turnover, income, revenue,
      value added, and other taxes levied on account of milestones,

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      royalties and any other payments accruing or made to Anadys under this
      Agreement. If provision is made in law or regulation of any country for
      withholding of taxes of any type, levies or other charges with respect to
      any royalty or other amounts payable under this Agreement to Anadys, then
      Roche shall promptly pay such tax, levy or charge for and on behalf of
      Anadys to the proper governmental authority, and shall promptly furnish
      Anadys with receipt of payment. Roche shall be entitled to deduct any such
      tax, levy or charge actually paid from royalty or other payment due Anadys
      or be promptly reimbursed by Anadys if no further payments are due Anadys.
      Each party agrees to assist the other party in claiming exemption from
      such deductions or withholdings under double taxation or similar agreement
      or treaty from time to time in force and in minimizing the amount required
      to be so withheld or deducted.

            g.    RECORDS Roche and its Affiliates shall keep, and shall require
      its licensees and sublicensees to keep, full, true and accurate books of
      account containing all particulars that may be necessary for the purpose
      of calculating all royalties payable under this Agreement. Such books of
      accounts shall be kept at their principal place of business. At Anadys'
      expense, Anadys has the right to engage Roches' officially appointed
      independent public accountant to perform, on behalf of Anadys an audit,
      conducted in accordance with international accounting standards (IAS), of
      such books and records of Roche and its Affiliates, its licensees and
      sublicensees, that are deemed necessary by Roche's independent public
      accountant to report on Net Sales of Product for the period or periods
      requested by Anadys and the correctness of any report or payments made
      under this Agreement.

            h.    AUDIT Upon timely request and at least sixty (60) working
      days' prior written notice from Anadys, such audit shall be conducted as
      an additional audit work during Roche's annual audit of the countries

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      specifically requested by Anadys, during regular business hours in such a
      manner as to not unnecessarily interfere with Roche's normal business
      activities, and shall be limited to results in the two (2) calendar years
      prior to audit notification. Such audit shall be at Anadys' cost and shall
      not be performed more frequently than once per calendar year nor more
      frequently than once with respect to records for a particular Product
      covering any specific period of time. All information, data documents and
      abstracts herein referred to shall be used only for the purpose of
      verifying royalty statements or compliance with this Agreement, shall be
      treated as Roche Confidential Information subject to the obligations of
      this Agreement and need neither be retained more than one (1) year after
      completion of an audit hereof, if an audit has been requested; nor more
      than two (2) years from the end of the calendar year to which each shall
      pertain; nor more than one (1) year after the date of termination of this
      Agreement. Audit results shall be shared by Roche and Anadys. If the audit
      reveals an overpayment, Anadys shall promptly reimburse Roche for the
      amount of the overpayment. If the audit reveals an underpayment, Roche
      shall promptly make up such underpayment. If the audit reveals that the
      royalties owed by Roche to Anadys for the countries specifically requested
      and for any calendar year in total have been understated by more than
      [...***...] percent ([...***...]%), Roche shall, in addition, pay the
      reasonable costs of such additional audit work. The failure of Anadys to
      request verification of any royalty calculation within the period during
      which corresponding records must be maintained will be deemed to be
      acceptance of the royalty reporting.

11.   INTELLECTUAL PROPERTY. Since (i) Roche owns all intellectual property
      related to the Molecules and (ii) Anadys must assign to Roche all such
      intellectual property, Roche shall have the sole and exclusive right to
      obtain and defend any such intellectual property at its sole discretion.
      Anadys shall use commercially reasonable efforts to assist Roche, at

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      Roche's cost, by executing documents related to such intellectual property
      and providing a reasonable amount of technical input as may be requested
      by Roche.

12.   TERMINATION. This Agreement shall remain in effect for the Term, except in
      the event of material breach or bankruptcy, in which case the
      non-breaching/non-bankrupt party shall notify the breaching party in
      writing. If the breach/bankruptcy is not corrected within [...***...]
      after receipt of such notice, then the non-breaching party may terminate
      the Agreement. In addition, during the Collaboration Term, Roche may
      terminate the Project at will, provided that Roche pays to Anadys an
      amount equal to [...***...] dollars (US$[...***...]) [...***...].
      Termination of the Project during the Collaboration by Roche shall not
      impact upon the other terms and conditions of the Agreement, which shall
      remain in effect. Termination of this Agreement shall not relieve the
      parties of any obligation accruing prior to such expiration or
      termination, including the payment of milestones and royalties.

13.   CONFIDENTIALITY AND PUBLICATION. During the Collaboration Term and for
      [...***...] years thereafter, the receiving party shall not publish or
      otherwise disclose to a third party, other than an Affiliate, and shall
      not use for any purpose other than as expressly provided for in this
      Agreement any Information furnished to it by the other party through the
      end of the Collaboration Term (collectively, "Confidential Information").
      For the purpose of this Section 13, the term "receiving party" with
      respect to Roche shall include Affiliates that agree to be bound by the
      terms and conditions of this Agreement. Each receiving party may use
      Confidential Information of the other party only to the extent required to
      accomplish the purposes of this Agreement. Each receiving party will use
      at least the same standard of care as it uses to protect proprietary or
      confidential information of its own to ensure that its employees, agents,
      consultants

                                             ***Confidential Treatment Requested

                                       11
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Page -12-

      and other representatives do not disclose or make any unauthorized use of
      the other party's Confidential Information. Confidential Information shall
      not include information which the receiving party can prove by competent
      tangible evidence: (i) is now, or hereafter becomes, through no act or
      failure to act on the part of the receiving party, generally known or
      available; (ii) is known by the receiving party at the time of receiving
      such information, as evidenced by its tangible records; (iii) is hereafter
      furnished to the receiving party by a third party, as a matter of right
      and without restriction on disclosure; (iv) is independently discovered or
      developed by the receiving party without the use of Confidential
      Information of the disclosing party; or (v) is the subject of a written
      permission to disclose provided by the disclosing party. The terms of this
      Agreement shall be considered Confidential Information, except to the
      extent that the parties authorize otherwise. Notwithstanding the
      foregoing, (i) each Party shall have the right to disclose the material
      terms of this Agreement in confidence to any bona fide potential investor,
      investment banker, acquirer, merger partner or other potential financial
      partner, and where reasonably practicable, shall obtain an adequate
      agreement of confidentiality consistent with the terms of this Agreement,
      and (ii) if a Party is required to make a disclosure of this Agreement in
      a regulatory filing, then it will be permitted to do so, provided that it
      gives reasonable advance notice to the other Party of such disclosure and
      endeavors in good faith to secure confidential treatment of sensitive
      information or a protective order related to such information. The parties
      agree that the press release attached hereto is an authorized disclosure.

      Roche may disclose Anadys Confidential Information to the extent such
      disclosure is reasonably necessary for (i) filing or prosecuting patents
      in accordance with this Agreement or (ii) complying with applicable court
      orders or governmental regulations.

                                       12
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Page -13-

14.   WARRANTIES AND INDEMNIFICATION. The parties warrant and represent that
      they have the full right and authority to enter into this Agreement and
      that they have no obligations or commitments inconsistent with this
      Agreement. Anadys warrants and represents that its FTEs have the training
      and expertise required to conduct the activities set forth in the Research
      Plan and will do so in a professional manner. Each party ("Indemnitor")
      shall indemnify and hold harmless the other party ("Indemnitee") from any
      and all losses, costs, claims, demands, judgments and liability, including
      reasonable attorney fees (collectively, "Losses") to which the Indemnitee
      may become subject as a result of any claim, demand, action or other
      proceeding by any third party to the extent such Losses result from the
      Indemnitor's performance under this Agreement, except to the extent that
      such losses, costs, claims, demands, judgments or liability are due to the
      negligence or wrongful act(s) of the Indemnitee.

      NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY
      SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH
      THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER.

15.   ASSIGNMENT. The services to be provided by Anadys cannot be assigned or
      transferred by Anadys without the prior written consent of Roche, except
      that an Affiliate of Anadys may perform all or a portion of the services
      to be provided by Anadys, upon Roche's prior written consent, which shall
      not be unreasonably denied.

16.   COMPLIANCE WITH LAWS. It is the policy of both parties to comply with all
      applicable laws, regulations, permits and consent orders and to act in a
      proper and ethical manner. Accordingly, in connection with the services
      provided hereunder each party agrees to comply with all applicable laws,
      regulations, permits and consent orders.

                                       13
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Roche - Anadys Agreement
Page -14-

17.   SEVERABILITY AND WAIVER. The provisions of this Agreement are severable,
      and any judicial determination that one or more such provision is invalid
      or unenforceable shall not affect the validity or enforceability of any
      other provision, but rather shall cause this Agreement first to be
      construed in all respects as if such invalid or unenforceable provision(s)
      were modified to terms which are valid and enforceable and provide the
      greatest temporal, geographic and other protection to Roche's and Anadys'
      business interests; but if necessary, shall cause this Agreement to be
      construed as if such invalid or unenforceable provision(s) were omitted.
      No failure to exercise any right or demand performance of any obligation
      under this Agreement shall be deemed a waiver of such right or obligation.

18.   INDEPENDENT CONTRACTORS. Anadys understands and agrees that, in its
      relationship with Roche under this Agreement, Anadys is acting in the
      capacity of an independent contractor and that it has no authority to
      represent or act on behalf of Roche without Roche's prior consent. Nothing
      in this agreement should be construed to create an employee/employer
      relationship between Roche and Anadys or any of its employees, agents,
      principles or other individuals providing services to Roche on behalf of
      Anadys.

19.   ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between
      Roche and Anadys with respect to the services contemplated herein and
      supersedes all previous negotiations, commitments and writings. No
      modifications or amendments hereof shall be effective unless made in
      writing and signed by an authorized representative of Anadys and an
      authorized representative of Roche.

                                       14
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Roche - Anadys Agreement
Page -15-

20.   CHOICE OF LAW. This Agreement shall be governed by the laws of the State
      of New Jersey, without giving effect to New Jersey's choice of law
      principles.

21.   NOTICES. Official notices shall be in writing and delivered in person, by
      mail (postage prepaid), by overnight courier or by facsimile as follows:

               If to Anadys:             Anadys Pharmaceuticals, Inc.
                                         3115 Merryfield Row
                                         San Diego, CA 92121
                                         Tel: [...***...]
                                         Fax: [...***...]
                                         Attn: Senior Vice President, Corporate
                                         Development and Finance, with a copy to
                                         Senior Director of Legal Affairs

               If to Roche:              Hoffmann-La Roche Inc.
                                         340 Kingsland Avenue
                                         Nutley, New Jersey 07110
                                         Attn.:  Corporate Secretary
                                         Fax:  [...***...]

      Invoices shall be sent to:         Hoffmann-La Roche Inc.
                                         340 Kingsland Street
                                         Nutley, New Jersey 07110
                                         Attention:  Corporate Accounting
                                         Fax:  [...***...]

22.   COUNTERPARTS. This Agreement may be executed in any number of
      counterparts, each of which shall be deemed an original document, and all
      of which together shall be deemed one instrument.

IN WITNESS WHEREOF, the parties hereto, intending to be bound hereby, have
caused this Agreement to be executed as of the dates indicated here:

                                             ***Confidential Treatment Requested

                                       15
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Page -16-

HOFFMANN-LA ROCHE INC.                      ANADYS PHARMACEUTICALS, INC.

By /s/ Lee E. Babiss, Ph.D.                 By /s/ Michael J. Kamdar
   ---------------------------------           ---------------------------------

Name Lee E. Babiss, Ph.D.                   Name Michael J. Kamdar

Title Vice President Preclinical            Title Senior Vice President
      Research & Development

Date 7/28/04                                Date 7/28/04

122545

                                       16

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