Document:

exv10w41

 

Exhibit 10.41

[..**..] Certain Confidential Information Contained

in this Document, Marked by Brackets, has been

Omitted and Filed Separately with the Securities 

and Exchange Commission Pursuant to Rule 24b-2

of the Securities Exchange Act of 1934, as amended.

Exhibit A-1

LICENSE, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

(For HDAC Inhibitor Compounds)

     This License, Development and Commercialization Agreement (this “Agreement”) is made
this                      day of                     , 200___by and between Myogen, Inc. (“Myogen”), a Delaware
corporation with principal offices at 7575 West 103rd Avenue, Westminster, Colorado
80021, and Novartis Institutes for BioMedical Research, Inc. (“NIBRI”), a Delaware
corporation with principal offices at 400 Technology Square, Cambridge, Massachusetts 02139.

     Capitalized terms used but not defined in this Agreement have the meanings provided in the
Collaboration Agreement.

Introduction

     WHEREAS, pursuant to the Collaboration Agreement, Myogen and NIBRI are, or have been,
engaged in discovering and developing compounds having a specific therapeutic effect on the Myogen
Targets (as defined in the Collaboration Agreement);

     WHEREAS, NIBRI has exercised its Option under the Collaboration Agreement to license
exclusively one or more of the Development Candidates (as defined herein) for development and
commercialization in the Licensed Field (as defined herein) and in the Territory;

     NOW THEREFORE, in consideration of the foregoing premises, the parties agree as follows:

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ARTICLE I

Definitions

          1.1. “Active Compound” shall have the meaning set forth in Section 1.1 of the
Collaboration Agreement.

          1.2. “Affiliate” shall have the meaning set forth in Section 1.3 of the Collaboration
Agreement.

          1.3. “Cardiac Field” shall mean the research, treatment, prognosis, diagnosis, prophylaxis,
and monitoring of heart muscle disease.

          1.4. “Collaboration Agreement” shall mean that certain Collaboration and Option Agreement
dated as of October 7, 2003, as amended.

          1.5. “Collaboration Compound” shall have the meaning set forth in Section 1.4 of the
Collaboration Agreement.

          1.6. “Collaboration HDAC Inhibitor Compound” shall mean any HDAC Inhibitor Compound other than
a NIBRI HDAC Inhibitor Compound, including, without limitation, all derivatives and analogs of
Collaboration HDAC Inhibitor Compounds and all derivatives and analogs of NIBRI HDAC Inhibitor
Compounds that do not fall within the definition of NIBRI HDAC Inhibitor Compounds set forth below.
In no event, however, shall any In-Licensed NIBRI HDAC Inhibitor Compound (as defined in Section
1.55(d) below) be a Collaboration HDAC Inhibitor Compound.

          1.7. [Reserved]

          1.8. “Commencement Date” shall mean, with respect to the application of this Agreement to a
Development Candidate, the date on which NIBRI exercised its Option under Section 4.4 of the
Collaboration Agreement with respect to that Development Candidate.

          1.9. “Compound” shall have the meaning set forth in Section 1.7 of the Collaboration
Agreement.

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          1.10. “Controlled” shall have the meaning set forth in Section 1.8 of the Collaboration
Agreement.

          1.11. “Co-Promotion Expenses” shall mean, with respect to each Drug Product, out-of-pocket
costs and other costs (in the case of personnel costs for personnel directly involved in the
marketing or promotional activities, excluding sales personnel and field service supervisors) which
are incurred by a party or any of its Affiliates solely in connection with marketing or promotional
activities in the Cardiac Field, including, without limitation, costs in the following categories
(in each case to the extent incurred in connection with activities in the Cardiac Field):

     (a) costs incurred in promoting and marketing such Drug Product, including without
limitation, advertising (including agency fees), market research, patient-oriented
promotions, meetings, pre-launch activities and expenses relating to launch of the Drug
Product, and managed markets/health authority liaisons (but excluding detailing
expenses);

     (b) amounts repaid or credited for bad debts;

     (c) costs associated with post-marketing drug safety surveillance;

     (d) medical affairs costs, and costs associated with medical/scientific liaisons
(including regional scientific directors), medical education and publications,
professional symposia, advisory boards, speaker and activity programs;

     (e) costs of Phase IV Clinical Trials in the Territory and pharmacoeconomic
studies;

     (f) the cost of samples;

     (g) costs of materials and programs for the training of sales force and marketing
management;

     (h) costs of promotional materials, telemarketing, e-marketing, field and
headquarters’ grants, exhibits, direct mail and sample alternative programs;

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     (i) all costs associated with the maintenance of Regulatory Approvals;

     (j) costs associated with any sales force training agreed to by NIBRI;
provided, however, that each party will train its own sales force (and
that of its Affiliates) at its own expense;

     (k) amounts paid to a Third Party in order to obtain freedom to operate with
respect to such Drug Product in the Territory; and

     (l) amounts paid, whether in damages or by a settlement approved by NIBRI, to a
Third Party in the Territory as a result of any allegation of infringement by any party
of a Third Party patent by the manufacture, development or commercialization of such
Drug Product.

     The foregoing shall not include any costs which: (i) are incurred prior to the Commencement
Date; (ii) are incurred in connection with the manufacture of any Drug Product; or (iii) have been
included in Development Costs or Regulatory Expenses.

          1.12. “Co-Promotion Notice” shall have the meaning set forth in Section 3.5(a) hereof.

          1.13. “Co-Promotion Response” shall have the meaning set forth in Section 3.5(a) hereof.

          1.14. “Co-Promotion Share” shall have the meaning set forth in Section 3.5(a) hereof.

          1.15. “Development Candidate” shall mean the HDAC Inhibitor Compound, together with the Myogen
Target on which it has therapeutic action, as to which NIBRI exercised its Option under the
Collaboration Agreement and has entered into this Agreement.

          1.16. “Development Costs” shall mean, with respect to a Development Candidate and Drug
Products derived therefrom, expenses and other costs, including Regulatory Expenses (except for the
maintenance of Regulatory Approvals), incurred by or on behalf of a party in connection with the
worldwide development of such Development Candidate and Drug

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Products derived therefrom in accordance with the Development Program in the Cardiac Field,
including without limitation the costs of clinical trials, the preparation, collation and/or
validation of data from such clinical trials and the preparation of medical writing as will make
the results of such clinical trials an element of one or more Registration Filings in the Cardiac
Field; provided, that Development Costs shall include: (a) the cost of any preclinical or
clinical studies conducted by NIBRI or its Affiliates in connection with a Development Program
outside the Cardiac Field (and not reimbursed or paid by a Third Party), to the extent the results
of such studies are required to be performed under applicable regulatory guidelines specific to the
indication being studied in the Cardiac Field and incorporated as part of any Registration Filings
submitted to support a Regulatory Approval for an indication in the Cardiac Field; and (b) the cost
of Phase IIIB clinical trials and Phase IV clinical trials only if and to the extent they are
intended to support indications in the Cardiac Field beyond the respective initial indications (as
agreed upon by the parties) for the Drug Products, to support expanded labeling for the Drug
Products, or to satisfy requirements imposed by governmental regulatory authorities in connection
with Regulatory Approvals for the Products in the Cardiac Field. Development Costs consist of:

     (a) all out-of-pocket costs incurred by the parties or their Affiliates, including
payments made to Third Parties with respect to any of the foregoing;

     (b) the fully allocated costs of internal scientific or technical personnel engaged
in such efforts, which costs shall be determined based on the FTE annual rate or such
other basis as may otherwise be agreed by the parties;

     (c) the costs of clinical supplies for such efforts as agreed in the applicable
approved Development Program in the Cardiac Field, including: (i) the fully allocated
cost or out-of-pocket costs, as applicable, incurred in purchasing and/or packaging
comparator drugs; and (ii) disposal of clinical samples;

     (d) the costs and expenses incurred in connection with technical development and
with other manufacturing development activities;

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     (e) all amounts paid by NIBRI or its Affiliates to a Third Party to license,
purchase or otherwise acquire HDAC Inhibitor Compounds; and

     (f) any other costs or expenses explicitly included in the Development Program in
the Cardiac Field.

          1.17. “Development Program” shall mean activities associated with development of Active
Compounds as Development Candidates for sale as Drug Products in the Cardiac Field and in the
Territory, including but not limited to: (a) formulation of Active Compounds as Development
Candidates for use in preparation for preclinical studies; (b) preclinical animal studies performed
in accordance with GLP (or the applicable equivalent) in preparation for the filing of an IND (or
the applicable equivalent); (c) formulation and manufacture of Active Compounds as Development
Candidates for preclinical and clinical studies; (d) planning, implementation, evaluation and
administration of human clinical trials; (e) manufacturing process development and scale-up for the
manufacture of bulk Active Compound and Drug Product; (f) preparation and submission of
applications for regulatory approval; and (g) post-market surveillance of approved drug
indications, as required or agreed as part of a marketing approval by any governmental regulatory
authority.

          1.18. “Drug Product” shall mean a product prepared from bulk Active Compound with respect to a
Development Candidate, in finished dosage form ready for administration to the ultimate consumer as
a pharmaceutical.

          1.19. “European Co-Promotion Share” shall be equal to: (a) [..**..] the Co-Promotion Share
for the first year following the commercial launch of the Drug Product in any of the European
Countries; (b) [..**..] the Co-Promotion Share for the second year following the commercial launch
of the Drug Product in any of the European Countries; and (c) [..**..] the Co-Promotion Share for
the third and each successive year following the commercial launch of the Drug Product in any of
the European Countries.

          1.20. “European Countries” shall mean the United Kingdom, Germany, France, Italy and Spain.

          1.21. “Expiration Date” shall have the meaning set forth in Section 8.1 hereof.

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          1.22. “First Amendment Date” shall mean May 23, 2005.

          1.23. “First Commercial Sale” shall mean the first shipment of a Drug Product to a Third Party
by NIBRI or an Affiliate or sublicensee of NIBRI in a country in the Territory following applicable
Regulatory Approval of the Drug Product in such country.

          1.24. “GCP” shall mean the current Good Clinical Practice standards for clinical trials for
pharmaceuticals, as set forth in the Food, Drug and Cosmetic Act and applicable regulations
promulgated thereunder, as amended from time to time, and such standards of good clinical practice
as are required by the regulatory authorities of the organizations and governmental agencies in
countries in which Drug Products are intended to be sold.

          1.25. “GLP” shall mean the current Good Laboratory Practices regulations promulgated by the
FDA, published at 21 CFR Part 58, as such regulations may be from time to time amended, and such
equivalent regulations or standards of countries outside the United States as may be applicable to
activities conducted hereunder.

          1.26. “GMP” shall mean the current Good Manufacturing Practice regulations promulgated by the
FDA, published at 21 CFR Part 210 et seq., as such regulations may be amended, and such equivalent
foreign regulations or standards as may be applicable with respect to bulk Active Compound or a
Drug Product manufactured or sold outside the United States.

          1.27. “Gross Contribution” means, with respect to Drug Products co-promoted by the parties in
accordance with Section 3.5 hereof, [..**..] in the United States and/or the European Countries (as
applicable), less the following:

(a) [..**..]; and

(b) [..**..].

          1.28. “HDAC” shall mean any histone deacetylase protein.

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          1.29. “HDAC Inhibitor Compound” shall mean any Active Compound that has a specific, desired
therapeutic action through its ability to bind directly to an HDAC and inhibit HDAC activity.

          1.30. “IC50” shall mean the concentration of a compound that reduces activity of an
enzyme by 50% in a standard, validated assay.

          1.31. “Improvement” means any enhancement in the formulation, ingredients, preparation,
presentation, means of delivery, dosage, packaging of, manufacture, or any new or expanded
therapeutic indication(s) for, an Active Compound, a Drug Product, or any other metabolite or
isomer thereof.

          1.32. “Improvement Patent” means any Patent containing claims that cover an Improvement.

          1.33. “IND” shall mean an application to the Food and Drug Administration, the filing of which
is necessary to commence clinical testing of Compounds in humans, or the equivalent application to
the equivalent agency in any other country or group of countries.

          1.34. “In Vivo Validation” means, with respect to an Active Compound, the achievement of
physiologically significant activity in an appropriate in vivo model or models, where the level of
physiological significance and the in vivo model(s) to be used will be specified by the JSC with
respect to High Priority Targets and Low Priority Targets and by Myogen with respect to
Extra-Collaboration Targets.

          1.35. “Joint Know-How” shall mean Know-How that is owned or Controlled jointly by NIBRI or a
NIBRI Affiliate, on the one hand, and Myogen or a Myogen Affiliate, on the other hand.

          1.36. “Joint Patent” shall mean a Patent which, absent rights thereunder, would be infringed
by the research, development, manufacture, use, importation, sale, or distribution of the
Development Candidate or a Drug Product relating thereto, and is owned or Controlled jointly by
NIBRI or a NIBRI Affiliate, on the one hand, and Myogen or a Myogen Affiliate, on the other hand.

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          1.37. “Joint Technology” shall mean Joint Patents and Joint Know-How.

          1.38. “Know-How” means all Technology other than inventions that are the subject of Patents,
including, but not limited to, information, technical information, techniques, data, inventions,
discoveries, trade secrets, processes, practices, methods, materials, compositions, formulas,
improvements, knowledge, know-how, skill, experience, or test data, whether or not patented or
confidential, which is Controlled by a party relating to the Myogen Technology or the development,
manufacture, use, sale, offer for sale, or import of any Active Compound, Development Candidate, or
Drug Product, or any Improvement thereto, including (but not limited to), pharmacological,
toxicological, pre-clinical and clinical test data, analytical and quality control data, packaging,
marketing, pricing, distribution, sales and manufacturing data or descriptions,
compositions-of-matter, assays and biological materials related thereto and the content of this
Agreement.

          1.39. “Know-How Period” shall have the meaning set forth in Section 8.1.

          1.40. “Licensed Field” shall mean all human and veterinary health care applications including,
but not limited to, research, prognosis and diagnosis (subject to Section 2.5), therapeutics,
prophylaxis, and monitoring with respect to any indication, together with all agricultural
purposes.

          1.41. “Licensed Patents” shall mean any Myogen Patents that become the subject of NIBRI’s
rights under Article II of this Agreement upon exercise of its license and development option in
accordance with the provisions of Section 4.4 of the Collaboration Agreement.

          1.42. “Listed Country” shall mean a country listed on Schedule 1.42 hereof, as Schedule 1.42
may be amended from time to time on mutual written agreement of the parties.

          1.43. “Live Claim” shall mean a claim of any issued, unexpired Licensed Patent that shall not
have been withdrawn, canceled or disclaimed, nor held invalid or unenforceable by a court of
competent jurisdiction in an unappealed or unappealable decision.

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          1.44. “Myogen Compound” shall have the meaning set forth in Section 1.22 of the Collaboration
Agreement.

          1.45. “Myogen Know-How” shall have the meaning set forth in Section 1.23 of the Collaboration
Agreement, as the same shall exist on the Commencement Date and at any time during the term of this
Agreement.

          1.46. “Myogen Patents” shall have the meaning set forth in Section 1.24 of the Collaboration
Agreement, as in effect on the Commencement Date and at any time during the term of this Agreement.
A list of Myogen Patents is appended hereto as Schedule 1.46 and will be updated periodically to
reflect additions thereto during the course of this Agreement.

          1.47. “Myogen Target” shall have the meaning set forth in Section 1.25 of the Collaboration
Agreement.

          1.48. “Myogen Technology” shall mean all Myogen Patents and Myogen Know-How.

          1.49. “NDA” means a New Drug Application submitted to the Food and Drug Administration seeking
approval to market and sell a Drug Product in the Licensed Field in the United States of America,
or a corresponding application filed with any other regulatory agency seeking approval to market
and sell a Drug Product in the Licensed Field in a country in the Territory.

          1.50. “Net Sales” shall mean, with respect to a Drug Product, the gross amount invoiced by
NIBRI and any NIBRI Affiliate, sublicensee or marketing partner to Third Party customers for the
Drug Product, less:

     (a) Normal and customary trade and quantity discounts and non-affiliated brokers’
or agents’ commissions actually allowed and taken and not already reflected in the
amount invoiced;

     (b) Amounts repaid or credited by reason of defects, rejections, returns, recalls,
allowances, or retroactive price reductions;

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          (c) Third Party cash rebates and chargebacks related to sales of finished Drug
Products, to the extent allowed;

          (d) Retroactive price reductions that are actually allowed or granted;

          (e) Tariffs, duties, excise, sales, value-added, and other consumption taxes and
customs duties to the extent included in the invoice price and paid by or on behalf of
NIBRI;

          (f) Cash discounts for timely payment;

          (g) Delayed ship order credits;

          (h) Discounts pursuant to indigent patient programs and patient discount programs
of any nature;

          (i) A fixed charge of [..**..] to cover warehousing and distribution expenses; and

          (j) Any other specifically identifiable costs or charges included in the gross
invoiced sales price of such Drug Product falling within categories substantially
equivalent to those listed above;

provided that:

     (i) In the case of any sale or other disposal of a Drug Product between or
among NIBRI and its Affiliates, sublicensees or marketing partners, for resale, Net
Sales shall be calculated as above only on the value charged or invoiced on the
first arm’s length sale to a Third Party;

     (ii) In the case of any sale or other disposal, such as barter or
counter-trade, of any Drug Product, or part thereof, otherwise than in an arm’s
length transaction exclusively for money, Net Sales shall be calculated as above on
the value of the consideration received or, if higher, on the fair market price of
the Drug Product in the relevant country of sale or disposal; and

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     (iii) In the event that a Drug Product is sold as part of a combination
product, Net Sales of the Drug Product, for the purpose of determining royalty
payments, shall be determined by multiplying Net Sales (as defined above) of the
combination product by the fraction A/(A+B), where A is the weighted (by sales
volume) average sales price of the Drug Product when sold separately in finished
form and B is the weighted average sale price of the other product(s) sold
separately in finished form. In the event that such average sales price cannot be
determined for both the Drug Product and the other product(s) in combination, Net
Sales for purposes of determining payments hereunder shall be mutually agreed by
the parties based on the relative value contributed by each component, and such
agreement shall not be unreasonably withheld.

          1.51. “NIBRI Compound” shall have the meaning set forth in Section 1.28 of the Collaboration
Agreement.

          1.52. “NIBRI Know-How” shall have the meaning set forth in Section 1.29 of the Collaboration
Agreement, as the same shall exist on the Commencement Date and at any time during the term of this
Agreement with respect to the Development Candidate, any Drug Product incorporating the same, and
their respective use and manufacture.

          1.53. “NIBRI Patents” shall have the meaning set forth in Section 1.30 of the Collaboration
Agreement, as in effect on the Commencement Date and at any time during the term of this Agreement.

          1.54. “NIBRI Technology” shall mean all NIBRI Patents and NIBRI Know-How.

          1.55. “NIBRI HDAC Inhibitor Compound” shall mean any of the following:

	 	(a)  	Except as otherwise provided in Section 3.6 of this Agreement,
a HDAC Inhibitor Compound first synthesized by NIBRI or its Affiliates and for
which NIBRI or its Affiliates have received or have applied for or could
reasonably expect to apply for and receive U.S. composition of matter

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	 	   	patent coverage and that: (a) is shown to have an IC50 of less
than or equal to 1 μM (micromolar) in any standard NIBRI in vitro assay for
the inhibition of HDAC activity; and (b) has been designated a “Lead Series”
candidate for follow-up under the designation “Research Phase D3” in
accordance with the standard drug development terminology used by NIBRI; and
	 
	 	(b)  	Except as otherwise provided in Section 3.6 of this Agreement,
a HDAC Inhibitor Compound licensed to, purchased or otherwise acquired by NIBRI
or its Affiliates from a Third Party for which (i) NIBRI or its Affiliates do
not have any material future license, royalty or similar payment obligations
(as determined in good faith by the JSC), and (ii) the Third Party licensor or
assignor or NIBRI or its Affiliates have received or have applied for or could
reasonably expect to apply for and receive U.S. composition of matter patent
coverage and that (a) is shown to have an IC50 of less than or equal
to 1 μM (micromolar) in any standard NIBRI in vitro assay for the inhibition of
HDAC activity; and (b) has been designated a “Lead Series” candidate for
follow-up under the designation “Research Phase D3” in accordance with the
standard drug development terminology used by NIBRI; and
	 
	 	(c)  	Except as otherwise provided in Section 3.6 of this Agreement,
all derivatives and analogs of the compounds described in subsections (a) and
(b) above that are shown to have an IC50 of less than or equal to
100 nM (nanomolar) as determined by at least one standard in vitro assay for
the inhibition of HDAC activity; and
	 
	 	(d)  	A HDAC Inhibitor Compound licensed to, purchased or otherwise
acquired by NIBRI or its Affiliates from a Third Party for which NIBRI or its
Affiliates have any material future license, royalty or similar payment
obligation (as determined in good faith by the JSC) and all derivatives and
analogs of the compounds described in this subsection (d) for which

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NIBRI or its Affiliates have any material future license, royalty or similar
payment obligation (as determined in good faith by the JSC) (collectively,
“In-Licensed NIBRI HDAC Inhibitor Compounds”).

          1.56. “Patent Period” shall have the meaning set forth in Section 8.1.

          1.57. “Patents” shall mean all existing patents and patent applications and all patent
applications hereafter filed, including any continuation, continuation-in-part, division,
provisional or any substitute applications, any patent issued with respect to any such patent
applications, any reissue, reexamination, renewal or extension (including any supplementary
protection certificate) of any such patent, and any confirmation patent or registration patent or
patent of addition based on any such patent, and all foreign counterparts of any of the foregoing.

          1.58. “Person” shall mean any individual, corporation, partnership, association, limited
liability company, trust, unincorporated organization or government or political subdivision
thereof.

          1.59. “Phase I Clinical Trial” shall mean a clinical study, conducted in accordance with a
protocol approved by NIBRI of a Drug Product in human volunteers with the endpoint of determining
initial tolerance, safety and/or pharmacokinetic information in single dose, single ascending dose,
multiple dose and/or multiple ascending dose regimens.

          1.60. “Phase II Clinical Trial” shall mean a clinical study, conducted in accordance with a
protocol approved by NIBRI, of a Drug Product in patients to determine initial efficacy and dose
range finding.

          1.61. “Phase III Clinical Trial” shall mean a clinical study in patients, conducted in
accordance with a protocol approved by NIBRI, which protocol is designed to ascertain efficacy and
safety of a Drug Product for the purpose of preparing and submitting a filing for Regulatory
Approval in a particular country in the Territory.

          1.62. “Phase IV Clinical Trial” shall mean a clinical study initiated in a country after
receipt of Regulatory Approval for a Drug Product in such country.

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          1.63. “Registration Filing” shall mean, with respect to each Development Candidate or related
Drug Product, the submission to the relevant governmental regulatory authority of an appropriate
application seeking any Regulatory Approval, and shall include, without limitation, any marketing
authorization application, supplementary application or variation thereof, or any equivalent
applications.

          1.64. “Regulatory Approval” shall mean, with respect to a country in the Territory, all
authorizations by the appropriate governmental entity or entities necessary for commercial sale of
a Drug Product in that country including, without limitation and where applicable, approval of
labeling, price, reimbursement and manufacturing.

          1.65. “Regulatory Expenses” shall mean, with respect to a Development Candidate or related
Drug Product, all out-of-pocket costs and fully allocated costs incurred by or on behalf of a party
in connection with the preparation and filing of Registration Filings and the maintenance of
Regulatory Approvals.

          1.66. “Technology” shall mean all data, technical information, know-how, experience,
inventions (whether or not patented), trade secrets, processes and methods discovered, developed or
applied (with the consent of its owner) and Controlled by either party or its Affiliates, in
connection with performance by either party under the Research Program, or in connection with the
conduct of a Development Program, that relate to the research, development, utilization,
manufacture or use of Targets or Compounds.

          1.67. “Territory” shall mean [..**..].

          1.68. “Third Party” shall mean any Person that is not a party or an Affiliate of any party to
this Agreement.

ARTICLE II

Rights and Licenses

          2.1. NIBRI Rights. Subject to the other provisions of this Agreement, Myogen grants to
NIBRI and its Affiliates a license, exclusive even as to Myogen, with the right

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to sublicense, under the Myogen Patents and the Myogen Know-How and in the Licensed Field, to
research and have researched, develop and have developed, make and have made, and use and have used
the Development Candidate and to research and have researched, develop and have developed, make and
have made, manufacture and have manufactured, use and have used, market and have marketed,
distribute and have distributed, sell and have sold, export and import for sale, and have exported
or imported for sale, Drug Products in each country in the Territory. NIBRI understands that the
licenses granted under this Agreement to certain Myogen Technology that has been licensed by Myogen
pursuant to agreements with the University of Texas Southwestern Medical Center, the University of
North Texas Health Sciences Center and the University Licensing and Equity Holdings, Inc. are
subject to the retained rights of such licensors to use such Myogen Technology for research,
teaching and other educationally-related, non-commercial purposes. Myogen retains all rights to
Myogen Technology except to the extent explicitly granted to NIBRI hereunder.

          2.2. Scope of Exclusivity; Diligence; Development Responsibility.

     (a) As long as NIBRI is using commercially reasonable efforts to diligently
develop and/or commercialize the Development Candidate in the Cardiac Field:

     (i) The licenses granted to NIBRI in Section 2.1 shall be effective
also with respect to any other Active Compound which falls under the same
Live Claim as an Active Compound constituting the Development Candidate
provided that all of the terms and conditions of this Agreement (including
royalty and milestone payments) shall apply to all such other Active
Compounds; and

     (ii) Myogen shall not develop, make, have made, use, market and sell,
itself or through a Third Party licensee, for use within the Licensed Field,
any other Active Compound which falls under the same Live Claim as an Active
Compound constituting the Development Candidate.

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     (b) NIBRI shall be deemed to be using commercially reasonable efforts with respect
to the provisions of Section 2.1 and Section 3.4 if NIBRI or any of its Affiliates is
actively undertaking diligent, commercially reasonable efforts, similar to those used
for other products of NIBRI or its Affiliates that are of similar commercial potential,
for the continuing development and the commercialization of the Development Candidate
in the Cardiac Field, including, without limitation, the development and/or
optimization and/or further characterization of Active Compounds, initiation and
conduct of clinical trials, submission of regulatory filings and commercial launch of
Drug Products in the Cardiac Field.

     (c) Except as otherwise provided herein, NIBRI will have sole responsibility for,
and bear the cost of conducting, the Development Program with respect to each
Development Candidate and/or seeking Regulatory Approval of any Drug Product.

          2.3. Joint Inventions and Joint Patents. All inventions conceived of and reduced to practice
during the term of, or as a result of, this Agreement, jointly by employees or agents of Myogen or
its Affiliates, on one hand, and employees or agents of NIBRI or its Affiliates, on the other hand
(“Joint Inventions”) and all Patent applications and Patents claiming Joint Inventions,
shall be owned jointly by Myogen and NIBRI, and such Patent applications and Patents shall be
included within the Joint Patents. The rights of each party with respect to the Joint Technology
shall be determined in accordance with United States patent law as it applies to issues of joint
ownership of intellectual property as of the Effective Date of the Collaboration Agreement.

          2.4. Inventions Necessary to the License. If Myogen conceives and reduces to practice during
the term of this Agreement any new Technology relating to a Development Candidate or Drug Product
and covered by a Myogen Patent, or acquires or Controls (either on the Effective Date or at any
time during the term of this Agreement) any Patent on a Technology, and such Technology is
necessary to NIBRI’s exercise of its licensed rights in the Cardiac Field, then the definition of
Myogen Patent will be deemed to include such Patents that are included within the licenses granted
to NIBRI under this Agreement.

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          2.5. Diagnostic and Prognostic Products. In the event that NIBRI desires to develop and
commercialize any diagnostic or prognostic products based upon any Development Candidate, the
parties agree to negotiate in good faith the terms under which NIBRI would be granted rights to
develop and commercialize such products.

ARTICLE III

Development and Commercialization

          3.1. Development and Commercialization Rights. Subject to any co-funding/co-promotion
rights granted to Myogen pursuant to Section 3.5 hereof, NIBRI, its Affiliates and/or sublicensees,
if any, shall have sole rights, even as to Myogen, in the Licensed Field to develop and manufacture
on a commercial scale the Development Candidate, the related Drug Product, and the active
ingredient in such Drug Product in the Territory, and to commercialize, manufacture, promote, sell,
book sales, and distribute each Drug Product and/or the active ingredient in such Drug Product in
each country in the Territory. (The foregoing right to manufacture is subject to any applicable
United States statutory requirement that technology the development of which was funded in part by
the United States government must be manufactured domestically, unless the United States government
shall waive such requirement.) NIBRI and its Affiliates, in their sole discretion, shall select,
file, and own all rights to any and all trademarks and trade dress relating to the Drug Product.

          3.2. Information Transfer. Myogen shall deliver (to the extent not previously delivered to
NIBRI pursuant to the Collaboration Agreement) as promptly as practicable to NIBRI all information
in Myogen’s possession or under its control (including summaries of raw data from clinical studies
conducted by Myogen of each Active Compound and related Myogen Target comprising the Development
Candidate), all scientific reports, and all processes and procedures that are necessary or useful
for further development, manufacture and commercial exploitation and distribution of the
Development Candidate in the Territory. Such information shall include a summary of all material
written communications (copies of which Myogen will provide to NIBRI at NIBRI’s request) between
Myogen or (to the extent available to Myogen) its other licensees and the Food and Drug
Administration (or any other similar

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regulatory authority) concerning the Development Candidate. This information shall also
include copies of all Patents, copyrights, copyright registrations and applications therefor and
all other manifestations of the intellectual property embodied in the Development Candidate,
whether in human or machine readable form. Information provided by Myogen will be subject to the
provisions of Article VI hereof.

          3.3. Regulatory Approvals. NIBRI and/or its Affiliates will be responsible for all required
Regulatory Approvals in the Territory. All filings will be made by NIBRI and/or its Affiliates.
All Regulatory Approvals will be held in the name of NIBRI and/or its Affiliates. NIBRI and its
Affiliates shall have the right to cross-reference information and regulatory filings relating to
the Development Candidate arising out of development work which previously has been conducted by
Myogen and its Affiliates and licensees, for the purpose of regulatory filings hereunder.

          3.4. Due Diligence. Upon exercise of its Option with respect to a Development Candidate,
NIBRI and its Affiliates shall commence a Development Program in the Cardiac Field with respect to
such Development Candidate and shall use commercially reasonable efforts (as defined in Section

2.2(b)) to effect introduction of the Drug Product relating to such Development Candidate into one
or more commercial markets in the Territory for one or more indications within the Cardiac Field.
In the normal course of development, any Development Candidate may be dropped from development for
valid scientific or medical reasons provided to Myogen by NIBRI in writing and may be replaced (at
the sole discretion of NIBRI and/or its Affiliates) with another Development Candidate having a
therapeutic action on the same Myogen Target, and such occurrence shall not constitute a failure of
due diligence.

          3.5. Co-Funding and Co-Promotion Option.

     (a) With respect to any Development Candidate that is a Collaboration HDAC
Inhibitor Compound, upon the completion of Phase II Clinical Trials with positive
results leading to NIBRI’s reasonable expectation that it will conduct Phase III
Clinical Trials and generation of relevant reports, NIBRI will provide Myogen with a
report containing all relevant pre-clinical data and all relevant clinical data from
the Phase I Clinical Trials, the Phase II Clinical Trials and a preliminary

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estimate of anticipated Co-Promotion Expenses (including sales force details)
(the “Co-Promotion Notice”). In the event that Myogen wishes to co-fund and
co-promote such Development Candidate in the Cardiac Field in either the United
States, or the United States and the European Countries, Myogen shall give NIBRI
written notice of the same no later than [..**..] after its receipt of the
Co-Promotion Notice (the “Co-Promotion Response”). The Co-Promotion Response
will specify the level of financial commitment that Myogen will assume with respect to
the co-funding of such Development Candidate and the co-promotion of such Development
Candidate in the United States in the Cardiac Field (the “Co-Promotion
Share”); provided, that Myogen shall be required to commit to fund no less
than [..**..] and no greater than [..**..] of the Development Costs and Co-Promotion
Expenses of such Development Candidate that are attributable to the development of the
Development Candidate in the Cardiac Field in the United States and, if applicable,
the European Countries.

     (b) Along with the Co-Promotion Response, Myogen will provide NIBRI with
certification to NIBRI’s reasonable satisfaction that it has the financial resources
to co-fund the Development Costs and a detailed plan under which Myogen will have the
financial resources to undertake co-promotion of the Drug Products, including the
requisite sales force and sales force infrastructure required to provide its share of
the promotional efforts. NIBRI may require documentary and other evidence that Myogen
has, or will have at the appropriate time, the requisite resources (including
personnel) and expertise to perform such co-promotion, including satisfying the same
percentage level of Co-Promotion Expenses and promotional effort (including sales
force details). Each Co-Promotion Response shall contain a commitment by Myogen that
Myogen will be able to satisfy its portion of the projected levels of Co-Promotion
Expenses and promotional effort, which may be satisfied initially or partially through
use of a contract sales force; provided, however, that oversight of
the contract sales force will be provided by Myogen sales management personnel. NIBRI
may reject the Co-Promotion Response (and the corresponding co-promotion opportunity
with Myogen) only if it

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has reasonable grounds based on such information that Myogen will not have such
capability at the appropriate time.

     (c) NIBRI and Myogen shall enter into good faith negotiations and will use
reasonable best efforts to conclude a co-funding/co-promotion definitive agreement
(the “Definitive Agreement”). The Definitive Agreement will outline the
overall framework for the co-promotion effort, including roles and responsibilities,
total Co-Promotion Expenses required and Myogen’s co-promotion funding commitment in
the United States and, if applicable, the European Countries that is at a percentage
level identical to the Co-Promotion Share and the European Co-Promotion Share,
respectively. The Definitive Agreement shall reflect, among other things, the
following:

     (i) Given the expertise of NIBRI and its Affiliates in sales and
marketing, NIBRI shall have sole authority to determine the required budget
of the Development Program and the Co-Promotion Expenses and the total
levels of promotional effort (including sales force details) for such Drug
Product, with Myogen’s input taking into account Myogen’s expertise in the
heart failure and cardiovascular market and its Co-Promotion Share.

     (ii) Myogen shall be required under the Definitive Agreement to share a
portion of the Co-Promotion Expenses incurred by both NIBRI and Myogen,
taken together, and to provide the portion of the promotional effort
(including sales force details) in the Cardiac Field, equal to the
Co-Promotion Share with respect to the United States, and the European
Co-Promotion Share with respect to the European Countries.

     (iii) Myogen shall be entitled to receive a portion of the Gross
Contribution derived from sales of the relevant Drug Product in the United
States equal to the Co-Promotion Share, and in [..**..], equal to the
[..**..] Co-Promotion Share, and NIBRI’s royalty obligations to Myogen under

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this Agreement shall cease with respect to United States and, if
applicable, the European Countries.

     (iv) In consideration of the rights granted to Myogen under the
Definitive Agreement, Myogen will be required to pay NIBRI: (A) the
Development Costs expended by NIBRI as of the effective date of the
Definitive Agreement that are attributable to the development of the
Development Candidate in the Cardiac Field in the United States and, if
applicable, the European Countries multiplied by the Co-Promotion Share (the
“Expense Reimbursement”); plus (B) a risk premium equal to the
Expense Reimbursement multiplied by [..**..]. These payments will be made
in [..**..] installments on [..**..] and on [..**..] the Definitive
Agreement, regardless of the status of the Development Program.

     (v) If Myogen is unable to satisfy its co-funding and co-promotion
obligations under the Definitive Agreement, or if Myogen elects to terminate
its co-promotion rights during the term of the Definitive Agreement, then
Myogen’s share of the Gross Contribution will be proportionately reduced
taking into account Myogen’s contribution to the co-funding and, if
applicable, the commercialization of the Drug Product, to be more fully
specified in the Definitive Agreement.

     (vi) Additional terms and conditions customary in the industry for an
agreement of this type.

     (d) In no event shall any portion of Myogen’s co-funding commitment be provided
by a Third Party (not including any funding obtained by Myogen through loans or
capital investment by Third Parties) without the consent of NIBRI.

     (e) Upon exercising its option to co-promote, Myogen will be allowed to appoint
up to [..**..] on NIBRI’s (or its Affiliate’s) International Project Team for the
Development Candidates or Drug Products that are under development by

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NIBRI hereunder and will have access to project summaries and other documents
provided by NIBRI to other members of the International Project Team.

          3.6. NIBRI HDAC Inhibitor Compounds.

     (a) With respect to any Development Candidate that is a NIBRI HDAC Inhibitor
Compound (and, therefore, not then subject to the co-promotion option described in
Section 3.5), if, at the time such Development Candidate has completed Phase II
Clinical Trials sufficient for proceeding into a Phase III Clinical Trial in the
Cardiac Field, either: (i) the NIBRI HDAC Inhibitor Compound has not entered first
dosing in a GLP toxicology study intended to support a Regulatory Filing for any
indications outside the Cardiac Field; or (ii) NIBRI or its Affiliates have terminated
all active clinical development and/or commercialization of such compound for any and
all indications outside the Cardiac Field, then, at such time, such NIBRI HDAC
Inhibitor Compound will be deemed a Collaboration HDAC Inhibitor Compound that will
thereafter be subject to all of the terms of this Agreement applicable to a
Collaboration HDAC Inhibitor Compound, including the co-promotion option described in
Section 3.5 and the increased milestone and royalty payments described in Article IV
hereof. Notwithstanding the foregoing, any In-Licensed NIBRI HDAC Inhibitor Compound
shall not be a Collaboration HDAC Inhibitor Compound.

     (b) With respect to any Development Candidate that is a NIBRI HDAC Inhibitor
Compound other than a NIBRI HDAC Inhibitor Compound as described in subsection (a)
above, if, within [..**..] after such Development Candidate has completed Phase II
Clinical Trials sufficient for proceeding into a Phase III Clinical Trial in the
Cardiac Field either: (i) NIBRI or its Affiliates have terminated all active clinical
development and/or commercialization of such compound for any and all indications
outside the Cardiac Field; or (ii) further clinical development and/or
commercialization of such compound has not been funded by NIBRI or its Affiliates in
the previous [..**..], then, at such time, such NIBRI HDAC Inhibitor Compound will be
deemed a Collaboration HDAC

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Inhibitor Compound that will thereafter be subject to all of the terms of this
Agreement applicable to a Collaboration HDAC Inhibitor Compound, including the
co-promotion option described in Section 3.5 and the increased milestone and royalty
payments described in Article IV hereof. Notwithstanding the foregoing, any
In-Licensed NIBRI HDAC Inhibitor Compound shall not be a Collaboration HDAC Inhibitor
Compound.

ARTICLE IV

Milestone and Royalty Payments

          4.1. Milestone Payments.

     (a) NIBRI shall make milestone payments in accordance with this Section 4.1 with
respect to Active Compounds developed as Development Candidates hereunder. Except as
explicitly set forth below, pre-clinical milestone payments shall be payable on only one
Active Compound per Myogen Target, and clinical milestones shall be payable only once on
a particular Active Compound, even though that Active Compound may be subsequently
developed for indications other than those for which Regulatory Approval was initially
sought. In the event that an Active Compound fails in development, any milestone
payments previously paid with respect to such Active Compound shall be fully creditable
toward the same milestone due with respect to another Active Compound that acts on the
same Myogen Target. NIBRI may deduct from any milestone payments otherwise due to
Myogen under this Article IV the amount of any withholding and similar taxes required
under applicable law to be withheld from such payments and paid to applicable tax
authorities.

     (b) The following milestone payments shall be payable within [..**..] of the
relevant developmental event corresponding to milestones achieved in a Development
Program for the Cardiac Field:

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	 	 	 	 	 	 	Prior Clinical	 	 	 	 	 	 	 
	 	 	 	 	 	 	NIBRI	 	 	 	 	 	Collaboration	 
	 	 	 	 	 	 	HDAC	 	 	Future NIBRI	 	 	HDAC	 
	 	DEVELOPMENTAL	 	 	Inhibitor	 	 	HDAC Inhibitor	 	 	Inhibitor	 
	 	MILESTONE:	 	 	Compounds	 	 	Compounds	 	 	Compounds	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	Pre-Clinical Milestones:	 	 	 	 	 	 	 	 	 	 
	 	•

	 	Validation of
high-throughput assays*
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	In vitro validation of lead
compound*
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	In Vivo Validation of lead
compound or use of the lead
compound as a starting point for
medicinal chemistry and/or SAR
exploration*
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Additional payment at the
earlier of In Vivo Validation or
second (2nd) anniversary
of the First Amendment Date**
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Completion of Tox/ADME
screening and preclinical candidate
determination*
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	Clinical Milestones:	 	 	 	 	 	 	 	 	 	 
	 	•

	 	IND filing
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Initiation of Phase II
clinical evaluation
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Initiation of Phase III
clinical studies
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Regulatory filing in the
U.S.
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	First regulatory filing in
the E.U.
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	Regulatory Approval in the
U.S.
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	•

	 	First Regulatory Approval
in the E.U.
	 	 	[..**..]
	 	 	[..**..]
	 	 	[..**..]	 
	 	 	 	 	 	 	 	 	 	 	 	 

	*Criteria for determining the achievement of any Milestone will be established by the JSC.

	 
	**For the avoidance of doubt, this milestone is payable only once.

     (c) For purposes of determining the milestone payments applicable to a NIBRI HDAC
Inhibitor Compound in the above table: (i) a “Prior Clinical NIBRI HDAC Inhibitor
Compound” means a NIBRI HDAC Inhibitor Compound for which NIBRI or its Affiliates
have submitted an IND with the FDA and initiated a Phase I Clinical Trial prior to the
First Amendment Date; and (ii) a “Future NIBRI HDAC Inhibitor Compound” means
any NIBRI HDAC Inhibitor Compound other than a Prior Clinical NIBRI HDAC Inhibitor
Compound. For the avoidance of doubt, any HDAC Inhibitor Compound, the rights to which
are licensed or otherwise acquired

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from a Third Party by NIBRI or its Affiliates, shall be considered to be a Prior
Clinical NIBRI HDAC Inhibitor Compound if such Third Party (or NIBRI or its Affiliates)
has submitted an IND with the FDA and initiated a Phase I Clinical Trial covering such
HDAC Inhibitor Compound prior to the date of such license or acquisition.

     (d) If a Development Candidate that was once a NIBRI HDAC Inhibitor Compound is
subsequently deemed to be Collaboration HDAC Inhibitor Compound pursuant to Section 3.6
hereof, NIBRI will pay to Myogen the difference between (i) all milestone payments that
have been made (or are then owing) pursuant to Section 4.1(b) prior to such event and
(ii) the milestones payments that would have been due for such milestones if the
Development Candidate had then been deemed a Collaboration HDAC Inhibitor Compound (the
“Increased Milestone Payments”). At Myogen’s option, the Increased Milestone
Payments may be credited against Myogen’s share of the Development Costs for such
Collaboration HDAC Inhibitor Compound that would be owed by Myogen if Myogen exercises
its co-promotion option for such compound. Otherwise, the Increased Milestone Payments
shall be payable within [..**..] after the reclassification of the Development Candidate
as a Collaboration HDAC Inhibitor Compound pursuant to Section 3.6 hereof.

     For the avoidance of doubt, no milestone payments on Prior Clinical NIBRI HDAC
Inhibitors and / or Future NIBRI HDAC Inhibitors shall be owed by NIBRI to Myogen for
any indications outside of the Cardiac Field.

          4.2. Royalty Payments During the Patent Period.

     (a) Collaboration HDAC Inhibitor Compounds. During the Patent Period (as
defined in Section 8.1 hereof), NIBRI shall make the following royalty payments to
Myogen on total annual Net Sales to unaffiliated Third Parties of each Drug Product
incorporating an Active Compound that is developed as a Development Candidate deemed to
be a Collaboration HDAC Inhibitor Compound hereunder: (i)

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[..**..] of Net Sales for all indications in the Cardiac Field, plus compensation
for Third Party royalties owed by Myogen to the University of Texas Southwestern Medical
Center, the University of North Texas Health Sciences Center and University Licensing
and Equity Holdings, Inc. of up to [..**..] of such Net Sales in the aggregate, only to
the extent that such royalty obligations are incurred in connection with such
Development Candidate; and (ii) [..**..] of Net Sales for all indications outside the
Cardiac Field, for which Myogen will be responsible for all Third Party royalties owed
on such Net Sales, if any.

     (b) NIBRI HDAC Inhibitor Compounds. During the Patent Period (as defined
in Section 8.1 hereof), NIBRI shall make the following royalty payments to Myogen on
total annual Net Sales to unaffiliated Third Parties of each Drug Product incorporating
an Active Compound that is developed as a Development Candidate deemed to be a NIBRI
Inhibitor Compound hereunder: (i) [..**..] of Net Sales of any Prior Clinical NIBRI HDAC
Inhibitor Compounds (as defined in Section 4.1(c) hereof) for all indications in the
Cardiac Field; or (ii) [..**..] of Net Sales of any Future NIBRI HDAC Inhibitor
Compounds (as defined in Section 4.1(c) hereof) for all indications in the Cardiac
Field. For the avoidance of doubt, no royalty payments shall be owed by NIBRI to Myogen
for any indications outside of the Cardiac Field. Myogen will be responsible for all
Third Party royalties owed on any Net Sales under this Section 4.2(b), if any. For
the avoidance of doubt, any HDAC Inhibitor Compound, the rights to which are licensed or
otherwise acquired from a Third Party by NIBRI or its Affiliates, shall be considered to
be a Prior Clinical NIBRI HDAC Inhibitor Compound if such Third Party (or NIBRI or its
Affiliates) has submitted an IND with the FDA and initiated a Phase I Clinical Trial
covering such HDAC Inhibitor Compound prior to the date of such license or acquisition.

          4.3. Royalty Payments During a Know-How Period. During a Know-How Period (as defined in
Section 8.1 hereof), and in consideration for NIBRI’s license of the Myogen Know-How related to the
Development Candidate, NIBRI shall pay a [..**..] royalty to Myogen on total annual Net Sales to
unaffiliated Third Parties of each Drug Product

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incorporating a Collaboration HDAC Inhibitor Compound that is developed as a Development
Candidate hereunder; provided, however, that no period during which a Licensed
Patent covers such Collaboration HDAC Inhibitor Compound shall be deemed to be a Know-How Period,
in which case no royalty pursuant to this Section 4.3 shall be due to Myogen at any time.
Subsequent to the Expiration Date, the license of such Myogen Know-How shall be considered to be
perpetual and fully paid. 

          4.4. Responsibility for Myogen’s Third Party Royalty Obligations. Myogen shall have sole
responsibility for payment of all its Third Party royalty obligations.

          4.5. Reduced Royalty Obligations. The obligation of NIBRI to pay royalties to Myogen under
this Agreement shall be reduced upon the occurrence of the following events:

     (a) In the event of Myogen’s material breach of this Agreement, which shall remain
uncured one hundred eighty (180) days after written notice by NIBRI to Myogen of the
same, NIBRI may, at its election, pay [..**..] of the royalties thereafter owed to
Myogen under this Article IV into a third party escrow account to be held pending
resolution of the dispute between NIBRI and Myogen by a court of competent
jurisdiction. NIBRI may satisfy any final, non-appealable judgment awarded by such
court from the then-current balance of the escrow account, and any excess of some or
all of the escrow account will be promptly refunded to Myogen; provided
that this Section 4.5(a) will not limit any compensatory or punitive damages
that are recoverable at law or equity by NIBRI for Myogen’s breach hereof.

     (b) In the event that no Live Claim exists in a particular country covering the
Development Candidate NIBRI’s royalty payment obligations under this Agreement in such
jurisdiction shall be reduced to [..**..] should a Third Party generic compound enter
the market in such particular jurisdiction with respect to a such Development
Candidate.

     (c) All Third Party royalties and license fees owed by Myogen to any Myogen
licensors under agreements with such Third Party or Third Parties with

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respect to a Development Candidate licensed hereunder shall be Myogen’s
responsibility, subject to the provisions of Section 9.3(b) hereof. In the event that
NIBRI or an Affiliate thereof is required to pay Third Party royalties or license fees
in order to practice the Licensed Patents for applications in the Cardiac Field,
NIBRI’s obligation to pay royalties to Myogen shall be reduced by [..**..] of the
amounts actually paid by NIBRI or its Affiliate to such Third Party; provided,
however, that NIBRI’s payment obligation shall in any case not be reduced more
than [..**..] of what otherwise would be owed to Myogen hereunder.

          4.6. Certain Understandings Regarding Royalty Payments. The parties expressly agree that the
royalties and milestones hereunder are in consideration of the use of Myogen Technology to
identify, synthesize, select or find useful the Development Candidate as having a desired
therapeutic effect on any Myogen Target. Therefore, notwithstanding any earlier expiration of the
Licensed Patents, the term of payment of royalties hereunder is required to compensate Myogen from
revenues NIBRI or its Affiliates may in the future derive from such use of the Myogen Technology
and for the convenience of accounting.

ARTICLE V

Reporting Obligations

          5.1. Development Reports. NIBRI shall prepare and submit to Myogen, on a quarterly
basis, reports which set forth in reasonable detail the progress of the Development Program with
respect to Development Candidates and the results of work performed thereunder during the preceding
quarter.

          5.2. Sales Reports and Records. During the term of this Agreement, but only after the First
Commercial Sale of a Drug Product, NIBRI shall deliver to Myogen within forty-five (45) days after
the end of each calendar quarter a written report showing actual Net Sales of Drug Products by
NIBRI, its Affiliates and sublicensees in each country in the Territory during such calendar
quarter. All Net Sales shall be stated in United States dollars, and shall convert the

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amounts into United States dollars from the currency in which such amounts are received by
NIBRI using NIBRI’s then-current standard exchange rate methodology applied in its external
reporting for the translation of foreign currency sales into United States dollars. NIBRI will
keep complete, true and accurate books of account and records for the purpose of showing the
derivation of Net Sales and all amounts payable to Myogen under this Agreement. Such books and
records will be kept by NIBRI or an Affiliate of NIBRI for at least three (3) years following the
end of the calendar quarter to which they pertain. Such books and records, or copies thereof, will
be made available at NIBRI’s principal place of business, upon request of Myogen, for inspection
and copying by an independent auditor appointed by Myogen for the purpose of verifying NIBRI’s
sales reports or NIBRI’s compliance in other respects with this Agreement. Such inspections shall
be at the expense of Myogen, unless a variation or error exceeding five percent (5%) of the amount
reported is discovered in the course of any such inspection, whereupon the costs relating thereto
shall be for the account of NIBRI.

ARTICLE VI

Confidentiality

          6.1. Undertaking. During the term of this Agreement, each party (a “Receiving
Party”) shall keep confidential, and other than as provided herein shall not use or disclose,
directly or indirectly, any trade secrets, confidential or proprietary information, or any other
knowledge, information, documents or materials, owned, developed or possessed by the other party
(the “Proprietary Party”), whether in tangible or intangible form, the confidentiality of
which such other party takes reasonable measures to protect, including but not limited to
Collaboration Technology.

     (a) Each Receiving Party shall take any and all lawful measures to prevent the
unauthorized use and disclosure of such information, and to prevent unauthorized persons
or entities from obtaining or using such information.

     (b) Each Receiving Party further agrees to refrain from directly or indirectly
taking any action that would constitute or facilitate the unauthorized use or disclosure
of such information. Each Receiving Party may disclose such information

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to its Affiliates and to its or their respective officers, employees and agents, to
authorized licensees and sublicensees, and to subcontractors in connection with the
development or manufacture of Development Candidate or Drug Products, to the extent
necessary to enable such parties to perform their obligations hereunder or under the
applicable license, sublicense or subcontract, as the case may be; provided, that such
officers, employees, agents, licensees, sublicensees and subcontractors have entered
into appropriate confidentiality agreements for secrecy and non-use of such information
which by their terms shall be enforceable by injunctive relief at the instance of the
Proprietary Party.

     (c) Each Receiving Party shall be liable for any unauthorized use and disclosure of
such information by its Affiliates or its or their respective officers, employees and
agents and any such sublicensees and subcontractors.

          6.2. Exceptions. Notwithstanding the foregoing, the provisions of Section 6.1 hereof shall
not apply to knowledge, information, documents or materials which the Receiving Party can
conclusively establish:

     (a) have entered the public domain without the Receiving Party’s breach of any
obligation owed to the Proprietary Party;

     (b) have become known to the Receiving Party from a source other than the
Proprietary Party, other than by breach of an obligation of confidentiality owed to the
Proprietary Party;

     (c) are independently developed by the Receiving Party without breach of this
Agreement, without reference to or reliance upon knowledge, information, or materials of
the Proprietary Party as established by written records; or

          6.3. In addition, a Receiving Party may, notwithstanding the obligations of Section 5.1,
disclose knowledge, information, documents or materials that the Receiving Party can conclusively
establish:

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     (a) are permitted to be disclosed by the prior written consent of the Proprietary
Party;

     (b) are required to be disclosed by the Receiving Party to comply with applicable
laws or regulations, to defend or prosecute litigation or to comply with governmental
regulations, provided that the Receiving Party provides prior written notice of such
disclosure to the Proprietary Party and takes reasonable and lawful actions to avoid or
minimize the degree of such disclosure.

          6.4. Publicity. The timing and content of any press releases or other public communications
relating to this Agreement and the transactions contemplated herein will, except as otherwise
required by law, be determined jointly by Myogen and NIBRI.

          6.5. Survival. The provisions of this Article VI shall survive the termination of this
Agreement.

ARTICLE VII

Patents

     7.1. Preparation. NIBRI shall take responsibility and pay for the preparation, filing,
prosecution and maintenance of: (a) any and all Patents in the Territory included in NIBRI
Patents, including without limitation any such patents and patent applications claiming NIBRI
Compounds or NIBRI Improvements under the Collaboration Agreement; (b) subsequent to the
Commencement Date with respect to Development Candidate, any and all Patents covering a Development
Candidate and any uses, formulations and formulation process inventions with respect thereto; and
(c) all Joint Patents. Myogen and NIBRI shall each furnish to the other party copies of
significant documents relevant to any such preparation, filing, prosecution or maintenance of
Patents covered by subsections (b) and (c) above. Myogen and NIBRI shall cooperate fully in the
preparation, filing, prosecution and maintenance of all Myogen Patents, NIBRI Patents, and Joint
Patents, executing all papers and instruments so as to enable the responsible party to apply for,
to prosecute and to maintain patent applications and patents in its name in any country in the
Territory. The parties acknowledge the importance of maintaining the confidentiality of any
inventions or other information relating to potential patent

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claims prior to the filing of patent applications with respect hereto. NIBRI shall provide
Myogen prompt notice as to any decision to abandon a Myogen Patent or a Joint Patent in a Listed
Country.

          7.2. Infringement. Each party shall notify the other promptly of any possible infringements,
imitations or unauthorized possession, knowledge or use of the intellectual property embodied in
any of the Development Candidate and Myogen Know-How related to the manufacture or use of a
Development Candidate or Drug Products by Third Parties in any country in the Territory, of which
such party becomes aware. Each party shall promptly furnish the other party with full details of
such infringements, imitations or unauthorized possession, knowledge or use, and shall assist in
preventing any recurrence thereof. NIBRI or its Affiliates shall be initially responsible, at its
expense, for bringing any action on account of any such infringements, imitations or possession,
knowledge or use, and Myogen shall cooperate with NIBRI, as NIBRI may reasonably request, in
connection with any such action. If, within sixty (60) days after receipt by NIBRI of a written
request from Myogen that it bring such an action, NIBRI does not do so, Myogen shall have the
right, at its expense and in its own name or in the name of NIBRI, to do so on behalf of NIBRI, and
NIBRI shall cooperate with Myogen, as Myogen may reasonably request, in connection with such
action, including becoming a party to such suit. Such suit may not be settled by either party
without the other party’s written consent, which shall not be unreasonably withheld. Damages
recovered in any actions referenced hereunder shall be apportioned in accordance with the royalty
schedules contained in this Agreement, after reimbursement to each party of their respective
expenses in prosecuting such actions as provided hereunder.

ARTICLE VIII

Term and Termination

          8.1. Term. The patent period with respect to any Development Candidate or Drug Product
incorporating that Development Candidate (each a “Patent Period”) shall extend in each
country of the Territory until the later of the last to expire of any Licensed Patents in that
country covering the Development Candidate or Drug Product incorporating that Development
Candidate, the use thereof and/or the Myogen Target on which the Active Compound for the

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Development Candidate acts, or in the case of the European Countries, on a country-by-country
basis, the later of: (a) ten (10) years from the date of First Commercial Sale of the Drug Product
in that country; or (b) the last to expire of any Licensed Patents in that country covering the
Development Candidate or Drug Product. The know-how period with respect to any Development
Candidate or Drug Product incorporating that Development Candidate shall extend after the First
Commercial Sale in each country of the Territory for any period or periods not to exceed five (5)
years in the aggregate during which no Live Claim exists covering the Development Candidate in such
country (each a “Know-How Period”). Unless terminated earlier in accordance with the
provisions herein, this Agreement will expire, on a country-by-country basis, upon the completion
of the Patent Period and the Know-How Period (the “Expiration Date”).

          8.2. Material Breach by NIBRI. Upon any material breach of the provisions of this Agreement
or of the Collaboration Agreement by NIBRI, which material breach remains uncured by NIBRI one
hundred eighty (180) days after receipt of written notice of the same from Myogen, NIBRI’s
exclusive rights within the Territory shall become non-exclusive, and upon Myogen’s written
request, NIBRI shall thereupon render any reasonably necessary assistance to Myogen or its designee
to exercise Myogen’s rights within the Territory. The foregoing remedy shall not be exclusive, and
Myogen shall retain all other rights and remedies at law or equity for any such breach.

          8.3. Termination. Either Party may terminate this Agreement upon the bankruptcy or financial
insolvency of the other Party. NIBRI may terminate this Agreement without cause at any time upon
ninety (90) days written notice to Myogen.

          8.4. Effect of Termination. Termination of this Agreement for any reason, or expiration of
this Agreement, will terminate all rights and obligations of each of the Parties, and all license
rights granted to NIBRI and its Affiliates will terminate and revert exclusively to Myogen except
as otherwise provided below, and except that such termination or expiration will not affect: (a)
obligations, including the payment of any milestones or royalties, which have accrued as of the
date of termination or expiration; and (b) rights and obligations under the following provisions of
this Agreement, which shall survive termination or expiration of this

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Agreement: Article VI, Sections 9.1, 9.2, and 9.3. Following termination of this Agreement
under Section 8.1 hereof with respect to a particular country, NIBRI shall have a fully paid
license under the Myogen Technology to make, have made, use, sell, have sold and import for sale
Drug Product in that country in the Territory; provided however that NIBRI’s obligation to pay
royalties and milestone payments under Article IV shall continue after any termination of this
Agreement for the time periods specified in Section 8.1. NIBRI covenants that, upon and after
termination of this Agreement for any reason (other than expiration under Section 8.1), NIBRI and
its Affiliates and sublicensees shall not practice any of the Myogen Technology for any purpose
relating to any Development Compound (except as may otherwise expressly be permitted in a separate
agreement still in force between the Parties).

ARTICLE IX

Miscellaneous Provisions

          9.1. Governing Law, and Jurisdiction. This Agreement shall be governed and construed in
accordance with the internal laws of the Commonwealth of Massachusetts. Both parties hereto agree
to submit to personal jurisdiction in the Commonwealth of Massachusetts and to accept and agree to
venue in that Commonwealth.

          9.2. No Warranty. Myogen makes no warranty of any kind whatsoever, either express or implied,
to NIBRI, or any customer of NIBRI, as to the ability of NIBRI to understand and utilize the Myogen
Technology. NIBRI makes no warranty of any kind whatsoever, either express or implied, to Myogen,
or to any customer of Myogen, as to the ability of Myogen to understand and utilize the NIBRI
Technology. NIBRI shall indemnify and shall hold Myogen harmless against and from any and all
claims of Third Parties for damages due to personal injury arising out of the actions of NIBRI, its
Affiliates, agents, employees, sublicensees or subcontractors, including but not limited to claims
arising in connection with the development, manufacturing, assembly, or sale of Development
Candidates and Drug Products by NIBRI. Myogen shall indemnify and hold NIBRI harmless against and
from any and all claims of Third Parties for damages due to personal injury arising out of the
actions of Myogen, its Affiliates, agents, employees, sublicensees or subcontractors pursuant to
this Agreement,

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including but not limited to claims arising in connection with the Development Program in the
Cardiac Field. During the term of this Agreement, the Parties shall keep each other promptly and
fully informed and will promptly notify appropriate authorities in accordance with applicable law,
after receipt of information with respect to any serious adverse event (as defined by the ICH
Harmonized Tripartite Guideline on Clinical Safety Data Management), directly or indirectly
attributable to the use or application of Development Candidate or Drug Product.

          9.3. Third Party Actions.

     (a) To Myogen’s knowledge, the exercise of the rights by NIBRI hereunder will not
result in the infringement of valid patents of Third Parties in the Cardiac Field.
Nevertheless, each party will promptly notify the other in the event any relevant Third
Party patents come to its notice. Neither party gives a warranty to the other regarding
the infringement of Third Party rights by the development, manufacture, use or sale of
the Development Candidate or the practice of the Myogen Technology or the NIBRI
Technology, and gives no indemnity against costs, damages, expenses or other losses
arising out of proceedings brought against the other party or any other Person by any
Third Party. In the event NIBRI is sued for infringement of any rights of any Third
Party in the course of its development, manufacture, marketing and sale of Development
Candidate in the Cardiac Field or its use of Myogen Technology in connection therewith,
Myogen shall extend to NIBRI, at no charge, good faith assistance and support in
defending such action, and may participate in the conduct of the suit at its own
expense, but shall otherwise be under no obligation in respect thereof. Legal expenses
and fees arising from such a legal action shall be paid by NIBRI.

     (b) In the event that the development of Development Candidate or the sale of a
Drug Product for indications within the Cardiac Field in any country necessarily
involves working within the scope of a Third Party’s patent, which would otherwise be
infringed by the practice of a Myogen Patent in connection with such development or
sale, then Myogen will use reasonable efforts to obtain required licenses under the
Third Party’s patents, under terms reasonably acceptable to both

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Myogen and NIBRI, and the terms of Section 4.5(c) hereof shall apply;
provided that neither Myogen nor NIBRI shall be required to accept any
license which carries a financial obligation which is materially in excess of the range
of financial obligations customarily associated with comparable non-exclusive licenses.
If the terms of a required license under a Third Party patent do not meet the foregoing
requirements and Myogen therefore elects not to assume any financial obligation, NIBRI
may nonetheless elect to obtain the license, to continue sales of Drug Product in such
country and to pay, itself, any amounts due under such license. If the required license
is either unavailable or its terms are unacceptable both to Myogen and to NIBRI, then
NIBRI may elect in its sole discretion to discontinue sales of the Drug Product in such
country or at its sole expense to undertake the defense of a patent infringement action
or the prosecution of a declaratory judgment action with respect to the Third Party
patents.

          9.4. Force Majeure. Neither party will be in breach hereof by reason of its delay in the
performance of or failure to perform any of its obligations hereunder, if that delay or failure is
caused by strikes, acts of God or the public enemy, riots, incendiaries, interference by civil or
military authorities, compliance with governmental priorities for materials, or any fault beyond
its control or without its fault or negligence.

          9.5. Waiver. Any waiver by either party of the breach of any term or condition of this
Agreement will not be considered as a waiver of any subsequent breach of the same or any other term
or condition hereof.

          9.6. Severability. Should one or more provision of this Agreement be or become invalid, then
the parties hereto shall attempt in good faith to agree upon valid provisions in substitution for
the invalid provisions, which in their economic effect come so close to the invalid provisions that
it can be reasonably assumed that the parties would have accepted this Agreement with those new
provisions. If the parties are unable to agree on such valid provisions, the invalidity of such
one or more provisions of this Agreement shall nevertheless not affect the validity of this
Agreement as a whole, unless the invalid provisions are of such

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essential importance for this Agreement that it may be reasonably presumed that the parties
would not have entered into this Agreement without the invalid provisions.

          9.7. Government Acts. In the event that any act, regulation, directive, or law of a
government within the Territory, including its departments, agencies or courts, should make
impossible or prohibit, restrain, modify or limit any material act or obligation of NIBRI or Myogen
under this Agreement, the party, if any, not so affected, shall have the right, at its option, to
suspend or terminate this Agreement as to such country, if good faith negotiations between the
parties to make such modifications herein as may be necessary to fairly address the impact thereof,
after a reasonable period of time are not successful in producing mutually acceptable modifications
to this Agreement.

          9.8. Government Approvals. NIBRI or its sublicensees will obtain any government approval
required in the Territory to enable this Agreement to become effective, or to enable any payment
hereunder to be made, or any other obligation hereunder to be observed or performed. NIBRI will
keep Myogen informed of progress in obtaining any such government approval, and Myogen will
cooperate with NIBRI in any such efforts.

          9.9. Export Controls. This Agreement is made subject to any restrictions concerning the
export of Development Candidate or Myogen Technology from the United States that may be imposed
upon or related to either party to this Agreement from time to time by the Government of the United
States. Furthermore, NIBRI will not export, directly or indirectly, any Myogen Technology or any
Development Candidate utilizing such Myogen Technology to any countries for which the United States
Government or any agency thereof at the time of export requires an export license or other
governmental approval, without first obtaining the written consent to do so (of which NIBRI will
promptly inform Myogen) from the Department of Commerce or other agency of the United States
Government when required by applicable statute or regulation.

          9.10. Assignment. NIBRI may assign this Agreement, without the consent of Myogen:
(a) to any of its Affiliates; or (b) in connection with the transfer or sale of all or
substantially all of its assets or business or in the event of its merger or consolidation with
another company. Myogen may not assign or otherwise transfer this Agreement or any of its

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rights or obligations under this Agreement without the prior written consent of NIBRI,
except, that Myogen may assign this Agreement to any Person in connection with a
transaction which results in the sale, merger, consolidation, transfer, or other reorganization of
Myogen in which substantially all of the assets of Myogen are transferred or in which the holders
of Myogen’s capital stock immediately prior to the transaction hold less than a majority of the
capital stock of the surviving entity after the transaction provided that should
NIBRI demonstrate with reasonable certainty that the proposed assignee is a significant competitor
of NIBRI or its Affiliates and Myogen’s proposed transaction would cause a material adverse effect
on the commercial potential of the Drug Product, then NIBRI will provide to Myogen written notice
of such determination within [..**..] specifying the reasons for such determination and, at NIBRI’s
election, the option to co-fund and co-promote Drug Products as set forth in Section 3.5 shall be
unavailable to Myogen and such assignee. Any purported assignment in contravention of this Section
9.10 shall, at the option of the nonassigning party, be null and void and of no effect. No
assignment shall release either party from responsibility for the performance of any accrued
obligation of such party hereunder. This Agreement shall be binding upon and enforceable against
the successor to or any permitted assignees from either of the parties hereto.

          9.11. Counterparts. This Agreement may be executed in duplicate, each of which shall be
deemed to be original and both of which shall constitute one and the same Agreement.

          9.12. No Agency. Nothing in this Agreement shall be deemed to create an agency, joint
venture, amalgamation, partnership or similar relationship between Myogen and NIBRI Notwithstanding
any of the provisions of this Agreement, neither party to this Agreement shall at any time enter
into, incur, or hold itself out to Third Parties as having authority to enter into or incur, on
behalf of the other party, any commitment, expense, or liability whatsoever, and all contracts,
expenses and liabilities in connection with or relating to the obligations of each party under this
Agreement shall be made, paid, and undertaken exclusively by such party on its own behalf and not
as an agent or representative of the other.

          9.13. Notice. All communications between the parties with respect to any of the provisions of
this Agreement will be sent to the addresses set out below or to other addresses as

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may be designated by one party to the other by notice pursuant hereto, by prepaid certified
mail (which shall be deemed received by the other party on the seventh business day following
deposit in the mails), or by facsimile transmission or other electronic means of communication
(which shall be deemed received when transmitted), with confirmation by first class letter, postage
pre-paid, given by the close of business on or before the next following business day:

if to NIBRI, at:

Novartis Institutes for BioMedical Research, Inc.

400 Technology Square

Cambridge, Massachusetts 02139

Attention: Robert L. Thompson, Vice President and General Counsel

Fax: (617) 871-3354

if to Myogen, at:

Myogen, Inc.

7575 West 103rd Avenue

Westminster, Colorado 80021

Attention: J. William Freytag, President and Chief Executive Officer

Fax: (303) 410-6667

with a copy to:

Cooley Godward LLP

Five Palo Alto Square

3000 El Camino Real

Palo Alto, California 94306-2155

Attention: Barclay James Kamb

Fax: (650) 849-7400

          9.14. Headings. The paragraph headings are for convenience only and will not be deemed to
affect in any way the language of the provisions to which they refer.

          9.15. Authority. The undersigned represent that they are authorized to sign this Agreement on
behalf of the parties hereto. The parties each represent that no provision of this Agreement will
violate any other agreement that a party may have with any other person or company. Each party has
relied on that representation in entering into this Agreement.

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          9.16. Entire Agreement. This Agreement contains the entire understanding of the parties
relating to the matters referred to herein, and may only be amended by a written document, duly
executed on behalf of the respective parties.

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	 	MYOGEN, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	

	 	Date of Signature:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	 	 	NOVARTIS INSTITUTES FOR BIOMEDICAL

RESEARCH, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	

	 	 
	 
	 	 	 	 	 	 
	

	 	Date of Signature:	 	 	 	 
	

	 	 	 	

	 	 

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Schedule 1.42

Listed Countries

United States

Europe

Japan

 

 

Schedule 1.46

Myogen Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Schedule 1.46 Myogen Patents
	PATENTS	 	Filing Date	 	App. No.	 	Country	 	Pat. No.	 	Issue Date	 	Subject Matter
	MYOG:004-USD1
	 	4/25/2000	 	09/558,472	 	U.S.	 	 	 	 	 	Alpha Myosin Heavy Chain Gene Therapy
	MYOG:004-USD2
	 	10/1/2001	 	09/969,086	 	U.S.	 	 	 	 	 	Alpha Myosin Heavy Chain Therapeutic/Screening
	MYOG:004-WO
	 	1/30/1998	 	PCT/US98/01983	 	PCT	 	 	 	 	 	Alpha Myosin Heavy Chain
	MYOG:004-CA
	 	7/29/1999	 	2,278,465	 	Canada	 	 	 	 	 	Alpha Myosin Heavy Chain
	MYOG:004-EP
	 	7/30/1999	 	98906089.2	 	Europe	 	 	 	 	 	Alpha Myosin Heavy Chain
	MYOG:004-JP
	 	7/30/1999	 	10-533182	 	Japan	 	 	 	 	 	Alpha Myosin Heavy Chain
	MYOG:005-US
	 	4/1/1998	 	09/053,293	 	U.S.	 	6,218,597	 	4/17/2001	 	Transgenic mice w/cardiac specific promoters
	MYOG:006-US
	 	9/26/1997	 	08/938,105	 	U.S.	 	6,353,151	 	3/5/2002	 	Transgeneic alpha myosin
	MYOG:006-EP
	 	5/24/1999	 	97943597.1	 	Europe	 	 	 	 	 	Alpha Myosin Transgenes
	MYOG:007-US
	 	5/26/1998	 	09/047,755	 	U.S.	 	6,203,776	 	3/20/2001	 	Methods for identify adrenergic receptors
	MYOG:020-US
	 	10/15/1998	 	09/173,798	 	U.S.	 	6,201,165	 	3/13/2001	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:020-WO
	 	10/16/1998	 	PCT/US98/21988	 	PCT	 	 	 	 	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:020-AU
	 	4/16/2000	 	10992/99	 	Australia	 	755429	 	8/16/2002	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:020-EP
	 	4/16/2000	 	98953672.7	 	Europe	 	 	 	 	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:020-JP
	 	4/16/2000	 	2000-516026	 	Japan	 	 	 	 	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:020-MX
	 	4/14/2000	 	0003678	 	Mexico	 	 	 	 	 	CamKIIa, CaMKIV,p38,MKK6,anf,bnp,beta myosin transgenes
	MYOG:023-US
	 	10/15/1998	 	09/173,795	 	U.S.	 	issue fee paid	 	 	 	transgenics
	MYOG:024-US
	 	11/10/1999	 	09/438,075	 	U.S.	 	6,372,957	 	4/16/2002	 	MEF2 methods of treatment
	MYOG:024-USC1
	 	1/9/2002	 	10/043,658	 	U.S.	 	 	 	 	 	MEF2 screening methods
	MYOG:024-WO
	 	11/10/1999	 	PCT/US99/26725	 	PCT	 	 	 	 	 	MEF2
	MYOG:024-CA
	 	5/7/2001	 	2,350,086	 	Canada	 	 	 	 	 	MEF2
	MYOG:024-EP
	 	5/21/2001	 	99971848.9	 	Europe	 	 	 	 	 	MEF2
	MYOG:024-JP
	 	5/10/2001	 	2000-581187	 	Japan	 	 	 	 	 	MEF2
	MYOG:025-US
	 	10/15/1998	 	09/173,799	 	U.S.	 	issue fee paid	 	 	 	transgenics
	MYOG:026-US
	 	8/20/2000	 	09/643,206	 	U.S.	 	issue fee paid	 	 	 	HDAC screening and treatment
	MYOG:026-USD1
	 	8/20/2003	 	not yet assigned	 	U.S.	 	 	 	 	 	HDAC transgenes
	MYOG:026-WO
	 	8/20/2000	 	PCT/US00/22958	 	PCT	 	 	 	 	 	HDAC screening and treatment and transgenes
	MYOG:026-CA
	 	2/14/2002	 	2,382,045	 	Canada	 	 	 	 	 	HDAC screening and treatment and transgenes
	MYOG:026-EP
	 	3/13/2002	 	00955805.7	 	Europe	 	 	 	 	 	HDAC screening and treatment and transgenes
	MYOG:026-JP
	 	2/19/2002	 	2001-518892	 	Japan	 	 	 	 	 	HDAC screening and treatment and transgenes
	MYOG:028-US
	 	7/18/2001	 	09/908,988	 	U.S.	 	 	 	 	 	Muscle Ring Finger Proteins (MURFS) Screening and Treatment
	MYOG:028-USD1
	 	2/10/2004	 	10/775,627	 	U.S.	 	 	 	 	 	MURF-2
	MYOG:028-USD2
	 	2/10/2004	 	10/775,649	 	U.S.	 	 	 	 	 	MURF-3
	MYOG:028-WO
	 	7/18/2001	 	PCT/US01/22896	 	PCT	 	 	 	 	 	Muscle Ring Finger Proteins (MURFS) Screening and Treatment
	MYOG:029-US
	 	4/16/1998	 	09/061,417	 	U.S.	 	 	 	 	 	NF-AT3 inhibitors
	MYOG:029-WO
	 	10/16/1998	 	PCT/US98/21845	 	PCT	 	 	 	 	 	NF-AT3 inhibitors
	MYOG:029-AU
	 	10/15/1998	 	98058/98	 	Australia	 	748334	 	9/12/2002	 	NF-AT3 inhibitors
	MYOG:029-CA
	 	4/10/2000	 	2,306,448	 	Canada	 	 	 	 	 	NF-AT3 inhibitors
	MYOG:029-EP
	 	5/16/2000	 	9895233.7	 	Europe	 	 	 	 	 	NF-AT3 inhibitors
	MYOG:029-JP
	 	4/17/2000	 	2000-516024	 	Japan	 	 	 	 	 	NF-AT3 inhibitors
	MYOG:034-US
	 	9/26/2002	 	10/256,221	 	U.S.	 	6,707,686	 	3/16/2004	 	HDAC Inhibitors
	MYOG:034-USC1
	 	3/16/2004	 	10/801,985	 	U.S.	 	 	 	 	 	HDAC Inhibitors
	MYOG:034-EP
	 	9/27/2001	 	02/021678.8	 	Europe	 	 	 	 	 	HDAC Inhibitors
	MYOG:034-JP
	 	9/27/2001	 	2002-284313	 	Japan	 	 	 	 	 	HDAC Inhibitors
	MYOG:035-USP1
	 	1/22/2002	 	converted	 	U.S.	 	 	 	 	 	Hypertrophic Cell Line
	MYOG:035-USP2
	 	2/11/2002	 	converted	 	U.S.	 	 	 	 	 	Hypertrophic Cell Line
	MYOG:035-US
	 	1/21/2003	 	10/348,58	 	U.S.	 	 	 	 	 	Hypertrophic Cell Line
	MYOG:035-WO
	 	1/21/2003	 	PCT/US03/62471	 	PCT	 	 	 	 	 	Hypertrophic Cell Line
	MYOG:036-US
	 	2/13/2001	 	09/782,953	 	U.S.	 	 	 	 	 	MCIP's screening, treatment, transgenics, antibodies
	MYOG:036-WO
	 	2/13/2001	 	PCT/US01/21662	 	PCT	 	 	 	 	 	MCIP's screening, treatment, transgenics, antibodies
	MYOG:036-CA
	 	1/24/2003	 	2,415,967	 	Canada	 	 	 	 	 	MCIP's screening, treatment, transgenics, antibodies
	MYOG:036-EP
	 	2/5/2003	 	1952568.2	 	Europe	 	 	 	 	 	MCIP's screening, treatment, transgenics, antibodies
	MYOG:036-JP
	 	12/26/2002	 	2002-509354	 	Japan	 	 	 	 	 	MCIP's screening, treatment, transgenics, antibodies
	MYOG:037-USP1
	 	8/20/2002	 	converted	 	U.S.	 	 	 	 	 	STARS screening, treatment, transgenics, antibodies
	MYOG:037-US
	 	8/20/2003	 	not yet assigned	 	U.S.	 	 	 	 	 	STARS screening, treatment, transgenics, antibodies
	MYOG:037-WO
	 	8/20/2003	 	abandoned	 	PCT	 	 	 	 	 	STARS screening, treatment, transgenics, antibodies
	MYOG:044-USP1
	 	5/21/2003	 	not yet assigned	 	U.S.	 	 	 	 	 	HDAC Kinase
	MYOG:045PZ1
	 	11/3/2003	 	60/517,217	 	U.S.	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-R enanti
	MYOG:045-US
	 	11/3/2004	 	 	 	U.S.	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-R enanti
	MYOG:045-WO
	 	11/3/2004	 	 	 	PCT	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-R enanti
	MYOG:046PZ1
	 	11/3/2003	 	60/516,828	 	U.S.	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-S enanti
	MYOG:046-US
	 	11/3/2004	 	 	 	U.S.	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-S enanti
	MYOG:046-WO
	 	11/3/2004	 	 	 	PCT	 	 	 	 	 	Alpha Myosin Modulating Compound, Methods and Use-S enanti
	MYOG:047PZ1
	 	11/13/2003	 	60/532,074	 	U.S.	 	 	 	 	 	TRP Channels
	MYOG:047-US
	 	11/13/2004	 	 	 	U.S.	 	 	 	 	 	TRP Channels
	MYOG:047-WO
	 	11/13/2004	 	 	 	PCT	 	 	 	 	 	TRP Channels
	MYOG:048PZ1
	 	12/23/2003	 	60/531,854	 	U.S.	 	 	 	 	 	5-HT2receptor methods
	MYOG:048US
	 	12/23/2004	 	 	 	U.S.	 	 	 	 	 	5-HT2receptor methods
	MYOG:048WO
	 	12/23/2004	 	 	 	PCT	 	 	 	 	 	5-HT2receptor methods
	MYOG:049PZ1
	 	12/23/2003	 	60/531,854	 	U.S.	 	 	 	 	 	5-HT2receptor composition of matter patent
	MYOG:049US
	 	12/23/2004	 	 	 	U.S.	 	 	 	 	 	5-HT2receptor composition of matter patent
	MYOG:049WO
	 	12/23/2004	 	 	 	PCT	 	 	 	 	 	5-HT2receptor composition of matter patent
	MYOG:050PZ1
	 	2/2/2004	 	60/541,024	 	U.S.	 	 	 	 	 	HDAC Kinase II (PRK)
	MYOG:054PZ1
	 	4/5/2004	 	60/559,493	 	U.S.	 	 	 	 	 	Inhibitors of Nuclear Export
	MYOG:056USP1; UTEC:007
	 	11/1/2002	 	converted	 	U.S.	 	 	 	 	 	MALDI-TOF use as measure of intracellular protein concentration
	MYOG:056USP2
	 	11/2/2002	 	converted	 	U.S.	 	 	 	 	 	MALDI-TOF use as measure of intracellular protein concentration
	MYOG:056-US
	 	10/30/2003	 	10/697,991	 	U.S.	 	 	 	 	 	MALDI-TOF use as measure of intracellular protein concentration
	MYOG:056-WO
	 	10/31/2003	 	PCT/US03/034386	 	PCT	 	 	 	 	 	MALDI-TOF use as measure of intracellular protein concentration
	MYOG:057USP1
	 	9/17/2004	 	60/611,150	 	U.S.	 	 	 	 	 	Agonists of MCIP-1-38
	MYOG:058USP1
	 	8/25/2004	 	60/604,435	 	U.S.	 	 	 	 	 	Inhibition of Ku
	UTSD:729-US
	 	11/7/2001	 	10/045,594	 	U.S.	 	 	 	 	 	CALSARCINS
	UTSD:729-USD1
	 	1/16/2004	 	10/760,111	 	U.S.	 	 	 	 	 	anti-CALSARCIN 1
	UTSD:729-USD2
	 	1/16/2004	 	10/759,624	 	U.S.	 	 	 	 	 	anti-CALSARCIN 2
	UTSD:729-USD3
	 	1/16/2004	 	10/759,897	 	U.S.	 	 	 	 	 	anti-CALSARCIN 3
	UTSD:729-WO
	 	11/7/2001	 	PCT/US01/49861	 	PCT	 	 	 	 	 	CALSARCINS
	UTSD:729-CA
	 	11/7/2001	 	2,425,396	 	Canada	 	 	 	 	 	CALSARCINS
	UTSD:729-EP
	 	11/7/2001	 	not yet assigned	 	Europe	 	 	 	 	 	CALSARCINS
	UTSD:729-JP
	 	11/7/2001	 	2002-548136	 	Japan	 	 	 	 	 	CALSARCINS
	UTSD:803-US
	 	5/30/2002	 	10/159,971	 	U.S.	 	 	 	 	 	MEK5
	UTSD:803-CA
	 	5/29/2002	 	2,384,907	 	Canada	 	 	 	 	 	MEK5
	UTSD:803-JP
	 	11/22/2001	 	2001-358595	 	Japan	 	 	 	 	 	MEK5
	UTSD:845-US
	 	3/4/2002	 	10/379,375	 	U.S.	 	 	 	 	 	Transgenes
	UTSD:845-CA
	 	5/9/2002	 	2,385,734	 	Canada	 	 	 	 	 	Transgenes
	UTSD:845-JP
	 	11/19/2001	 	2001-353806	 	Japan	 	 	 	 	 	Transgenesexv10w23

 

Exhibit 10.23

FACILITY AGREEMENT

between

ORACLE TECHNOLOGY COMPANY

as Borrower

and

ABN AMRO BANK N.V.

as Lender

McCann FitzGerald

Solicitors

2 Harbourmaster Place

International Financial Services Centre

Dublin 1

EDV\1007062.5

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	1.

	 	Definitions and interpretation
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	The Facility
	 	 	6	 
	 
	 	 	 	 	 	 
	3.

	 	Purpose
	 	 	6	 
	 
	 	 	 	 	 	 
	4.

	 	Conditions of Utilisation
	 	 	6	 
	 
	 	 	 	 	 	 
	5.

	 	Utilisation
	 	 	7	 
	 
	 	 	 	 	 	 
	6.

	 	Repayment
	 	 	7	 
	 
	 	 	 	 	 	 
	7.

	 	Prepayment and cancellation
	 	 	7	 
	 
	 	 	 	 	 	 
	8.

	 	Interest
	 	 	8	 
	 
	 	 	 	 	 	 
	9.

	 	Interest Periods
	 	 	9	 
	 
	 	 	 	 	 	 
	10.

	 	Changes to the calculation of interest
	 	 	10	 
	 
	 	 	 	 	 	 
	11.

	 	Tax gross-up and indemnities
	 	 	11	 
	 
	 	 	 	 	 	 
	12.

	 	Increased costs
	 	 	13	 
	 
	 	 	 	 	 	 
	13.

	 	Other indemnities
	 	 	14	 
	 
	 	 	 	 	 	 
	14.

	 	Mitigation by the Lender
	 	 	15	 
	 
	 	 	 	 	 	 
	15.

	 	Costs and expenses
	 	 	16	 
	 
	 	 	 	 	 	 
	16.

	 	Representations
	 	 	16	 
	 
	 	 	 	 	 	 
	17.

	 	General undertakings
	 	 	17	 
	 
	 	 	 	 	 	 
	18.

	 	Events of Default
	 	 	18	 
	 
	 	 	 	 	 	 
	19.

	 	Changes to the Lender
	 	 	20	 
	 
	 	 	 	 	 	 
	20.

	 	Changes to the Borrower
	 	 	20	 
	 
	 	 	 	 	 	 
	21.

	 	Payments
	 	 	20	 
	 
	 	 	 	 	 	 
	22.

	 	Notices
	 	 	21	 
	 
	 	 	 	 	 	 
	23.

	 	Calculations and certificates
	 	 	23	 
	 
	 	 	 	 	 	 
	24.

	 	Partial invalidity
	 	 	24	 
	 
	 	 	 	 	 	 
	25.

	 	Remedies and waivers
	 	 	24	 

 

 

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	26.

	 	Counterparts
	 	 	24	 
	 
	 	 	 	 	 	 
	27.

	 	Governing law
	 	 	24	 
	 
	 	 	 	 	 	 
	28.

	 	Jurisdiction
	 	 	24	 
	 
	 	 	 	 	 	 
	Schedule 1 - Conditions Precedent	 	 	25	 
	 
	 	 	 	 	 	 
	Schedule 2 - Utilisation Request	 	 	26	 

 

 

THIS AGREEMENT is made the 20th day of May 2005

BETWEEN:

	(1)  	ORACLE TECHNOLOGY COMPANY a company incorporated in Ireland with company registration number
265683 and having its registered office at 25/28 North Wall Quay, Dublin 2 (the “Borrower”);
and

	(2)  	ABN AMRO BANK N.V. having its place of business at 540 West Madison Street, Chicago, IL
60661, U.S.A. (the “Lender”).

NOW IT IS HEREBY AGREED as follows:

	1.  	Definitions and interpretation
	 
	1.1  	Definitions
	 
	   	In this Agreement:
	 
	   	“Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.
	 
	   	“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration.
	 
	   	“Availability Period” means the period from and including the date of this Agreement to and
including the date falling 10 days after the date of this Agreement.
	 
	   	“Break Costs” means the amount (if any) by which:

	 	(a)  	the interest which the Lender should have received for the period from the date
of receipt of all or any part of its participation in the Loan or Unpaid Sum to the
last day of the current Interest Period in respect of the Loan or Unpaid Sum, had the
principal amount or Unpaid Sum received been paid on the last day of that Interest
Period;

exceeds:

	 	(b)  	the amount which the Lender would be able to obtain by placing an amount equal
to the principal amount or Unpaid Sum received by it on deposit with a leading bank in
the Relevant Interbank Market for a period starting on the Business Day following
receipt or recovery and ending on the last day of the current Interest Period.

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in Dublin, London, Chicago and New York.

“Capitalization Ratio” has the meaning given to that term in the Guarantee.

“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to

1

 

exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have
meanings correlative thereto.

“Default” means any Event of Default or any event that would constitute an Event of Default
but for the requirement that notice be given or time elapse or both.

“Dollars” and the sign “$” means the lawful money of the United States of America.

“Effective Date” means the date that all conditions precedent set forth in Clause 4.1 shall
have been satisfied or waived.

“Event of Default” means any event or circumstance specified as such in Clause 18 (Events of
Default).

“Facility” means the loan facility made available under this Agreement as described in
Clause 2 (The Facility).

“Governmental Authority” means the government of the United States of America or any other
nation (including, without limitation, Ireland), or of any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).

“Guarantee” means the guaranty executed or to be executed by the Guarantor in favour of the
Lender in respect of the obligations of the Borrower under this Agreement.

“Guarantor” means Oracle Corporation, a Delaware corporation.

“Guarantee Event of Default” means a “Guarantor Event of Default” as defined in the
Guarantee.

“Interest Period” means, in relation to the Loan, each period determined in accordance with
Clause 9 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 8.3 (Default interest).

“LIBOR” means, in relation to the Loan:

	 	(a)  	the applicable Screen Rate; or
	 
	 	(b)  	(if no Screen Rate is available for Dollars for the relevant Interest Period)
the arithmetic mean of the rates (rounded upwards to four decimal places) quoted by the
Lender to leading banks in the in the London interbank market,

as of 11.00am on the Quotation Day for the offering of deposits in Dollars and for a period
comparable to the Interest Period for the Loan.

“Lien” means any lien, security interest or other charge or encumbrance of any kind.

2

 

“Loan” means the loan made or to be made under the Facility or the principal amount
outstanding for the time being of that loan.

“Mandatory Cost” means the rate per annum determined by the Lender on the first day of any
Interest Period to be its cost of complying with the requirements of the European Central
Bank and/or the Central Bank of Ireland and/or the Irish Financial Services Regulatory
Authority and/or any other applicable regulatory authority in respect of monetary control,
liquidity or otherwise.

“Margin” means a rate per annum, determined by reference to the Public Debt Rating in effect
from time to time as set forth in the grid below:

	 	 	 	 	 
	Public Debt Rating	 	 	 
	S&P or Moody’s	 	Applicable Margin	 
	Level I 3 A - or A3
	 	 	0.25	%
	 
	 	 	 	 
	Level II
BBB+ or Baa1
	 	 	0.40	%
	 
	 	 	 	 
	Level III £ BBB or Baa2
	 	 	0.55	%

For purposes of the foregoing, (i) if both of Moody’s and S&P shall have in effect a
rating for the Public Debt Rating, then the Level shall be determined by reference to both
such Public Debt Ratings, (ii) if only one of Moody’s and S&P shall have in effect a rating
for the Public Debt Rating, then the Level shall be determined by reference to such Public
Debt Rating, (iii) if neither Moody’s nor S&P shall have in effect a Public Debt Rating,
then each rating agency shall be deemed to have established a rating in Level III; and (iv)
if the ratings established or deemed to have been established by Moody’s and S&P for the
Public Debt Rating shall fall within different Levels, the applicable Level shall be based
on the higher of the two ratings unless one of the two ratings is two or more Levels lower
than the other, in which case the applicable Level shall be determined by reference to the
Level next below that of the higher of the two ratings.

“Material Adverse Effect” shall mean the result of one or more events, changes or effects
which, individually or in the aggregate, could reasonably be expected to have a material
adverse effect on (a) the business, assets, operations, condition (financial or otherwise),
material agreements, properties or contingent liabilities of the Borrower and its
Subsidiaries, taken as a whole or (b) the validity or enforceability of this Agreement or
the rights, remedies and benefits available to the Lender hereunder or thereunder.

“Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	 	(a)  	(subject to paragraph (c) below) if the numerically corresponding day is not a
Business Day, that period shall end on the next Business Day in that calendar month in
which that period is to end if there is one, or if there is not, on the immediately
preceding Business Day;

3

 

	 	(b)  	if there is no numerically corresponding day in the calendar month in which
that period is to end, that period shall end on the last Business Day in that calendar
month; and
	 
	 	(c)  	if an Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in which that
Interest Period is to end.

The above rules will only apply to the last Month of any period.

“Moody’s” means Moody’s Investors Service, Inc.

“Party” means a party to this Agreement.

“Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, governmental authority or other entity.

“Public Debt Rating” means, as of any date, the lowest rating that has been most recently
announced by any of S&P or Moody’s, as the case may be, for any class of non-credit enhanced
long-term senior unsecured debt issued by the Guarantor. For purposes of the foregoing, (a)
if any rating established by S&P or Moody’s shall be changed, such change shall be effective
as of the date on which such change is first announced publicly by the rating agency making
such change; and (b) if S&P or Moody’s shall change the basis on which ratings are
established, each reference to the Public Debt Rating announced by S&P or Moody’s, as the
case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may
be.

“Quotation Day” means, in relation to any period for which an interest rate is to be
determined, two Business Days before the first day of that period unless market practice
differs in the Relevant Interbank Market in which case the Quotation Day will be determined
by the Lender in accordance with market practice in the Relevant Interbank Market (and if
quotations would normally be given by leading banks in the Relevant Interbank Market on more
than one day, the Quotation Day will be the last of those days).

“Relevant Interbank Market” means the London interbank market.

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc.

“Screen Rate” means the rate for Dollars for the relevant period displayed on the
appropriate page of the Telerate screen. If the agreed page is replaced or service ceases
to be available, the Lender may specify another page or service displaying the appropriate
rate after consultation with the Borrower.

“Selection Notice” means a notice in a form and substance satisfactory to the Lender (acting
reasonably) pursuant to which the Borrower notifies the Lender of the duration of an
Interest Period pursuant to Clause 9.1.1.

“Subsidiary” means a subsidiary within the meaning of Section 155 of the Companies Act,
1963.

4

 

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same).

“Termination Date” means the date falling 364 days after the date of this Agreement or such
later date as the Lender may agree and specify in writing to the Borrower.

“Unpaid Sum” means any sum due and payable but unpaid by the Borrower under this Agreement.

“Utilisation” means the utilisation of the Facility.

“Utilisation Date” means the date of the Utilisation, being the date on which the loan is to
be made.

“Utilisation Request” means a notice substantially in the form set out in Schedule 2
(Utilisation Request).

“VAT” means value added tax as provided for in the Value Added Tax Acts 1972 to 2003 and any
other tax of a similar nature.

	1.2  	Construction
	 
	1.2.1  	Unless a contrary indication appears, any reference in this Agreement to:

	 	(a)  	the “Borrower”, the “Guarantor”, the “Lender”, any “Party” or any “Person”
shall be construed so as to include its successors in title, permitted assigns and
permitted transferees.
	 
	 	(b)  	“assets” includes present and future properties, revenues and rights of every
description;
	 
	 	(c)  	this “Agreement”, the “Guarantee” or any other agreement or instrument is a
reference to this Agreement, the Guarantee or such other agreement or instrument as
amended, supplemented, novated or otherwise modified;
	 
	 	(d)  	“indebtedness” includes any obligation (whether incurred as principal or as
surety) for the payment or repayment of money, whether present or future, actual or
contingent;
	 
	 	(e)  	a “regulation” includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;
	 
	 	(f)  	a provision of law is a reference to that provision as amended or re-enacted;
and
	 
	 	(g)  	a time of day is a reference to Dublin time unless otherwise agreed by the
Parties to be a reference to Chicago time.

	1.2.2  	Section, Clause and Schedule headings are for ease of reference only.

5

 

	1.2.3  	A Default (other than an Event of Default) is continuing if it has not been remedied or
waived and an Event of Default is continuing if it has not been waived.
	 
	1.2.4  	For the avoidance of doubt, this Agreement and the Guarantee stand alone from and separate
to the Syndicated Credit Agreement notwithstanding that the terms of this Agreement or the
Guarantee (or any of them) may be similar to those contained in the Syndicated Credit
Agreement.
	 
	2.  	The Facility
	 
	   	Subject to the terms of this Agreement, the Lender makes available to the Borrower a loan
facility in an aggregate amount equal to $700,000,000.
	 
	3.  	Purpose
	 
	3.1  	Purpose
	 
	   	The Borrower shall apply all amounts borrowed by it under the Facility towards its general
corporate purposes.
	 
	3.2  	Monitoring
	 
	   	The Lender is not bound to monitor or verify the application of any amount borrowed pursuant
to this Agreement.
	 
	4.  	Conditions of Utilisation
	 
	4.1  	Initial conditions precedent
	 
	   	The Borrower may not deliver a Utilisation Request unless the Lender has received all of the
documents and other evidence listed in Schedule 1 (Conditions precedent) in form and
substance satisfactory to the Lender provided always that the Lender
receives the documentation specified at paragraph 3.4 of Schedule 1 (Conditions Precedent)
not later than 2 Business Days (or such shorter period as may be agreed by the Lender,
currently expected to be the same date as the Utilisation Date) prior to the proposed
Utilisation Date. The Lender shall notify the Borrower promptly upon being so satisfied.
	 
	4.2  	Further conditions precedent
	 
	   	The Lender will only be obliged to make a Utilisation available if on the date of the
Utilisation Request and on the proposed Utilisation Date:

	 	(a)  	no Default is continuing or would result from the proposed Loan; and
	 
	 	(b)  	the representations and warranties set out in Clause 16.1 are true in all
material respects.

6

 

	5.  	Utilisation
	 
	5.1  	Delivery of a Utilisation Request
	 
	   	The Borrower may utilise the Facility by delivery to the Lender of a duly completed
Utilisation Request not later than two Business Days (or such shorter period as may be
agreed by the Lender, currently expected to be the same date as the Utilisation Date) prior
to the proposed Utilisation Date.
	 
	5.2  	Completion of a Utilisation Request
	 
	5.2.1  	Each Utilisation Request is irrevocable and will not be regarded as having been duly
completed unless:

	 	(a)  	the proposed Utilisation Date is a Business Day within the Availability Period;
and
	 
	 	(b)  	the proposed Interest Period complies with Clause 9 (Interest Periods).

	5.2.2  	Only one Loan may be requested. Any part of the Facility which is not drawn at the
expiration of the Availability Period shall be automatically cancelled and shall be
unavailable for drawing under the Facility.
	 
	6.  	Repayment
	 
	   	The Borrower shall repay the Loan (together with all accrued interest thereon and all other
amounts owing under this Agreement) on the Termination Date.
	 
	7.  	Prepayment and cancellation
	 
	7.1  	Illegality
	 
	   	If it becomes unlawful in any applicable jurisdiction for the Lender to perform any of its
obligations as contemplated by this Agreement or to fund or maintain its participation in
the Loan:

	 	(a)  	the Lender shall promptly notify the Borrower upon becoming aware of that
event;
	 
	 	(b)  	upon the Lender notifying the Borrower, the Facility will be immediately
cancelled; and
	 
	 	(c)  	the Borrower shall repay the Loan on the last day of the Interest Period
occurring after the Lender has notified the Borrower or, if earlier, the date specified
by the Lender in the notice delivered to the Borrower (being no earlier than the last
day of any applicable grace period permitted by law).

	7.2  	Change of control
	 
	   	If the Borrower ceases to be ultimately wholly owned by the Guarantor:

7

 

	 	(a)  	the Borrower shall promptly notify the Lender upon becoming aware of that
event;
	 
	 	(b)  	the Lender may, by not less than one Month’s notice to the Borrower, cancel the
Facility and declare the Loan, together with accrued interest, and all other amounts
accrued under this Agreement immediately due and payable, whereupon the Facility will
be cancelled and all such outstanding amounts will become immediately due and payable.

	7.3  	Voluntary Prepayment of Loan
	 
	   	The Borrower may, if it gives the Lender not less than three Business Days’ (or such shorter
period as the Lender may agree) prior notice, prepay the whole or any part of the Loan (but
if in part, being an amount that reduces the amount of the Loan by a minimum amount of
$10,000,000).
	 
	7.4  	Restrictions
	 
	7.4.1  	Any notice of prepayment given by any Party under this Clause 7 shall be irrevocable and,
unless a contrary indication appears in this Agreement, shall specify the date or dates upon
which the relevant prepayment is to be made and the amount of that prepayment.
	 
	7.4.2  	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	7.4.3  	Any part of the Facility which is prepaid may not be reborrowed in accordance with the terms
of this Agreement.
	 
	7.4.4  	The Borrower shall not repay or prepay all or any part of the Loan except at the times and
in the manner expressly provided for in this Agreement.
	 
	7.4.5  	No amount of the Facility cancelled under this Agreement may be subsequently reinstated.
	 
	8.  	Interest
	 
	8.1  	Calculation of interest
	 
	   	The rate of interest on the Loan for each Interest Period is the percentage rate per annum
which is the aggregate of the applicable:

	 	(a)  	Margin for the time being;
	 
	 	(b)  	LIBOR; and
	 
	 	(c)  	Mandatory Cost, if any.

8

 

	8.2  	Payment of interest
	 
	   	The Borrower shall pay accrued interest on the Loan on the last day of each Interest Period
(and, if the Interest Period is longer than three Months, on the dates falling at three
monthly intervals after the first day of the Interest Period).
	 
	8.3  	Default interest
	 
	8.3.1  	If the Borrower fails to pay any amount payable by it under this Agreement on its due date,
interest shall accrue on the overdue amount from the due date up to the date of actual payment
(both before and after judgment) at a rate which, subject to sub-clause 8.3.2 below is 2 per
cent higher than the rate which would have been payable if the overdue amount had, during the
period of non-payment, constituted the Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Lender (acting reasonably).
Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrower on
demand by the Lender.
	 
	8.3.2  	If any overdue amount consists of all or part of the Loan which became due on a day which
was not the last day of an Interest Period relating to the Loan:

	 	(a)  	the first Interest Period for that overdue amount shall have a duration equal
to the unexpired portion of the current Interest Period relating to the Loan; and
	 
	 	(b)  	the rate of interest applying to the overdue amount during that first Interest
Period shall be 2 per cent. higher than the rate which would have applied if the
overdue amount had not become due.

	8.3.3  	Default interest (if unpaid) arising on an overdue amount will be compounded with the
overdue amount at the end of each Interest Period applicable to that overdue amount but will
remain immediately due and payable.
	 
	8.4  	Notification of rates of interest
	 
	   	The Lender shall promptly notify the Borrower of the determination of a rate of interest
under this Agreement.
	 
	9.  	Interest Periods
	 
	9.1  	Selection of Interest Periods
	 
	9.1.1  	The Borrower may select an Interest Period for the Loan in the Utilisation Request for the
Loan or, if the Loan has already been borrowed, in a Selection Notice.
	 
	9.1.2  	Each Selection Notice is irrevocable and must be delivered to the Lender by Borrower not
later than two Business Days prior to the Quotation Day for the Interest Period to which such
Selection Notice relates.
	 
	9.1.3  	If the Borrower fails to deliver a Selection Notice to the Lender in accordance with Clause
9.1.2 above, the relevant Interest Period will be of a duration of one month.
	 
	9.1.4  	Subject to this Clause 9, the Borrower may select an Interest Period of one, two, three or
six Months or any other period agreed between the Borrower and the Lender.

9

 

	9.1.5  	An Interest Period for the Loan shall not extend beyond the Termination Date.
	 
	9.1.6  	The first Interest Period for the Loan shall start on the Utilisation Date and each
subsequent Interest Period shall start on the last day of the preceding Interest Period.
	 
	9.2  	Non-Business Days
	 
	   	If an Interest Period would otherwise end on, or if any payment hereunder is due on, a day
which is not a Business Day, that Interest Period will instead end, or such payment will
instead be due, on the next Business Day in that calendar month (if there is one) or the
preceding Business Day (if there is not).
	 
	10.  	Changes to the calculation of interest
	 
	10.1  	Market disruption
	 
	10.1.1  	If a Market Disruption Event occurs in relation to the Loan for any Interest Period, then
the rate of interest on each Lender’s share of the Loan for the Interest Period shall be the
rate per annum which is the sum of:

	 	(a)  	the Margin;
	 
	 	(b)  	the rate notified to the Borrower by the Lender as soon as practicable and in
any event before interest is due to be paid in respect of that Interest Period, to be
that which expresses as a percentage rate per annum the cost to that Lender of funding
its participation in the Loan from whatever source it may reasonably select; and
	 
	 	(c)  	the Mandatory Cost, if any, applicable to the Lender’s participation in the
Loan.

	10.1.2  	In this Agreement “Market Disruption Event” means:

	 	(a)  	at or about noon on the Quotation Day for the relevant Interest Period the
Screen Rate is not available and the Lender is unable to provide a quotation to
determine LIBOR for the relevant Interest Period; or
	 
	 	(b)  	before close of business in London on the Quotation Day for the relevant
Interest Period, the Borrower receives notification from the Lender that the cost of it
obtaining matching deposits in the London interbank market would be in excess of LIBOR.

	10.2  	Alternative basis of interest or funding
	 
	   	If a Market Disruption Event occurs and the Lender or the Borrower so requires, the Lender
and the Borrower shall enter into negotiations (for a period of not more than thirty days)
with a view to agreeing a substitute basis for determining the rate of interest.

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	10.3  	Break Costs
	 
	10.3.1  	The Borrower shall, within three Business Days of demand by delivery to the Borrower of a
certificate referred to in Clause 10.3.2 by the Lender, pay to the Lender its Break Costs
attributable to all or any part of the Loan or Unpaid Sum being paid by the Borrower on a day
other than the last day of an Interest Period for the Loan or Unpaid Sum.
	 
	10.3.2  	The Lender shall, as soon as reasonably practicable after a request from the Borrower, and,
in any event, upon demand under Clause 10.3.1 provide a certificate confirming the amount of
its Break Costs for any Interest Period in which they accrue.
	 
	11.  	Tax gross-up and indemnities
	 
	11.1  	Definitions
	 
	11.1.1  	In this Agreement:
	 
	   	“Tax Credit” means a credit against, relief from, or remission or repayment of any Tax.
	 
	   	“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment
under this Agreement.
	 
	   	“Tax Payment” means either an increase in a payment made by the Borrower to the Lender under
Clause 11.2 or a payment under Clause 11.3.
	 
	   	Unless a contrary indication appears, in this Clause 11 a reference to “determines” or
“determined” means a determination made in the absolute discretion of the person making the
determination.
	 
	11.2  	Tax gross-up
	 
	11.2.1  	The Borrower shall make all payments to be made by it without any Tax Deduction, unless a
Tax Deduction is required by law.
	 
	11.2.2  	The Borrower shall promptly upon becoming aware that it has had or will have to make a Tax
Deduction (or that there has been or will be any change in the rate at which or the basis on
which any Tax Deduction has to be made) notify the Lender accordingly. Similarly, the Lender
shall notify the Borrower on becoming so aware in respect of a payment payable to the Lender.
	 
	11.2.3  	If a Tax Deduction is required by law to be made by the Borrower, the amount of the payment
in respect of which the Tax Deduction is required to be made shall be increased to the amount
which (after the Tax Deduction) will leave an amount equal to the payment which would have
been due if no Tax Deduction had been required.
	 
	11.2.4  	If the Borrower is required to make a Tax Deduction, the Borrower shall make the Tax
Deduction, and any payment required in connection with the Tax Deduction within the time
allowed and in the minimum amount required by law.

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	11.2.5  	Within one Month of making a Tax Deduction or a payment required in connection with a Tax
Deduction, the Borrower shall deliver to the Lender evidence reasonably satisfactory to the
Lender that the Tax Deduction or payment has been made.
	 
	11.3  	Tax indemnity
	 
	11.3.1  	If the Lender is or will be subject to any liability or required to make any payment for or
on account of Tax in relation to any sum received or receivable (or any sum deemed for Tax
purposes to be received or receivable) under this Agreement, the Borrower shall (within ten
Business Days of demand by the Lender) pay to the Lender the amount determined by the Lender
(and evidenced in reasonable detail in writing to the Borrower) to be equal to the loss,
liability or cost which will be or has been (directly or indirectly) suffered for or on
account of Tax by the Lender as a result of that liability or payment.
	 
	11.3.2  	Clause 11.3.1 shall not apply:

	 	(a)  	in relation to any Tax assessed on the Lender under the law of the jurisdiction
in which the Lender is incorporated or, if different, the jurisdiction (or
jurisdictions) in which the Lender is treated as resident for tax purposes if that Tax
is imposed on or calculated by reference to the net income received or receivable (but
not any sum deemed to be received or receivable) by the Lender; or
	 
	 	(b)  	to the extent that the liability or requirement is compensated for by an
increased payment under Clause 11.2.

	11.3.3  	If the Lender makes or intends to make a claim under Clause 11.3.1 above it shall promptly
notify the Borrower of the event which will give, or has given, rise to the claim.
	 
	11.4  	Tax Credit
	 
	   	If the Borrower makes a Tax Payment and the Lender determines that it has obtained, utilised
and retained a Tax Credit which is attributable to either:

	 	(a)  	an increased payment of which that Tax Payment forms part; or
	 
	 	(b)  	that Tax Payment;

the Lender shall pay to the Borrower the amount determined by the Lender to be the amount
which will leave the Lender (after the payment) in the same after-Tax position as it would
have been in had the Tax Payment not been required to be made by the Borrower.

	11.5  	Stamp taxes
	 
	   	The Borrower shall within ten Business Days of demand, indemnify the Lender against any
cost, loss or liability which the Lender incurs in relation to any stamp duty, registration
tax or other similar Tax which is payable in respect of this Agreement or the Guarantee.

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	11.6  	Value added tax
	 
	11.6.1  	All consideration which is expressed to be payable under this Agreement by the Borrower to
the Lender is exclusive of any VAT. If VAT is chargeable on any supply made by the Lender to
the Borrower in connection with this Agreement, the Borrower shall pay to the Lender (in
addition to and at the same time as paying the consideration for the supply) an amount equal
to the amount of the VAT.
	 
	11.6.2  	Where the Lender requires the Borrower to reimburse the Lender for any cost or expense, the
Borrower shall at the same time indemnify the Lender against any VAT incurred by the Lender in
respect of the cost or expense to the extent that the Lender reasonably determines that it is
not entitled to any credit or repayment in respect of that VAT.
	 
	12.  	Increased costs
	 
	12.1  	Increased costs
	 
	12.1.1  	Subject to Clause 12.3, the Borrower shall, within ten Business Days of a demand by the
Lender, pay for the account of the Lender the amount of any Increased Costs incurred by the
Lender or any of its Affiliates as a result of (i) the introduction of or any change in (or in
the interpretation, administration or application of) any law or regulation, (ii) compliance
with any law or regulation made after the date of this Agreement or (iii) compliance with any
law or regulation relating to capital adequacy, whether made before or after the date of this
Agreement.
	 
	12.1.2  	In this Agreement “Increased Costs” means:

	 	(a)  	a reduction in the rate of return from the Facility or on the Lender’s (or its
Affiliate’s) overall capital;
	 
	 	(b)  	an additional or increased cost; or
	 
	 	(c)  	a reduction of any amount due and payable under this Agreement or the
Guarantee,
	 
	 	which is incurred or suffered by the Lender or any of its Affiliates to the extent that it
is attributable to the Lender having entering into this Agreement or the Guarantee or
funding or performing its obligations under this Agreement or the Guarantee.

	12.2  	Increased cost claims
	 
	12.2.1  	If the Lender intends to make a claim pursuant to Clause 12.1 it shall notify the Borrower
of the event giving rise to the claim.
	 
	12.2.2  	The Lender shall, as soon as practicable after a demand by the Borrower, provide a
certificate confirming the amount and, in reasonable detail, nature of its Increased Costs.
	 
	12.3  	Exceptions
	 
	12.3.1  	Clause 12.1 does not apply to the extent any Increased Cost is:

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	 	(a)  	attributable to a Tax Deduction required by law to be made by the Borrower;
	 
	 	(b)  	compensated for by Clause 11.3 (or would have been compensated for under Clause
11.3 but was not so compensated solely because any of the exclusions in Clause 11.3.2
applied);
	 
	 	(c)  	compensated for by the payment of the Mandatory Cost; or
	 
	 	(d)  	attributable to the wilful breach by the Lender or its Affiliates of any law or
regulation.

	12.3.2  	In this Clause 12.3, a reference to a “Tax Deduction” has the meaning given to the term in
Clause 11.1.1.
	 
	13.  	Other indemnities
	 
	13.1  	Currency indemnity
	 
	13.1.1  	If any sum due from the Borrower under this Agreement (a “Sum”), or any order, judgment or
award given or made in relation to a Sum, has to be converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the
purpose of:

	 	(a)  	making or filing a claim or proof against the Borrower; or
	 
	 	(b)  	obtaining or enforcing an order, judgment or award in relation to any
litigation or arbitration proceedings,

	   	the Borrower shall, as an independent obligation, within ten Business Days of demand,
indemnify the Lender against any cost, loss or liability arising out of or as a result of
the conversion including any discrepancy between (i) the rate of exchange used to convert
that Sum from the First Currency into the Second Currency and (ii) the rate or rates of
exchange available to that person at the time of its receipt of that Sum.
	 
	13.1.2  	The Borrower waives any right it may have in any jurisdiction to pay any amount under this
Agreement in a currency or currency unit other than that in which it is expressed to be
payable.
	 
	13.2  	Other indemnities
	 
	   	The Borrower shall, within ten Business Days of demand, indemnify the Lender against any
cost, loss or liability incurred by the Lender as a result of:

	 	(a)  	the occurrence of any Event of Default;
	 
	 	(b)  	a failure by the Borrower to pay any amount due under this Agreement on its due
date;
	 
	 	(c)  	funding, or making arrangements to fund, its participation in the Loan
requested by the Borrower in a Utilisation Request but not made by reason of

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	 	   	the operation of any one or more of the provisions of this Agreement (other than by
reason of default or negligence by the Lender alone); or
	 
	 	(d)  	the Loan (or part of the Loan) not being prepaid in accordance with a notice of
prepayment given by the Borrower.

	13.3  	Indemnity to the Lender
	 
	13.3.1  	The Borrower shall indemnify the Lender against, and hold the Lender harmless from, any and
all losses, claims, damages, liabilities and related expenses, including the reasonable fees,
charges and disbursements of any counsel for the Lender (and reasonable fees and time charges
for attorneys who may be employees of the Lender), incurred by or asserted against the Lender
arising out of, in connection with or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby or thereby, the performance by
the parties hereto of their respective obligations hereunder or the consummation of the
transactions contemplated hereby or thereby or (ii) any actual or prospective claim,
litigation, investigation or proceedings relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by the Borrower, any of its shareholders
or creditors, the Lender or any other Person, and regardless of whether the Lender is a party
thereto, provided that such indemnity shall not, as to the Lender, be
available to the extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or wilful misconduct of the Lender or to the extent that,
in any action brought by the Borrower, the Borrower prevails.
	 
	13.3.2  	Without prejudice to the generality of Clause 13.3.1, the Borrower shall promptly indemnify
the Lender against any cost, loss or liability incurred by the Lender (acting reasonably) as a
result of investigating any event which it reasonably believes is a Default.
	 
	14.  	Mitigation by the Lender
	 
	14.1  	Mitigation
	 
	14.1.1  	The Lender shall, in consultation with the Borrower, take all reasonable steps to mitigate
any circumstances which arise and which would result in any amount becoming payable under or
pursuant to, or cancelled pursuant to, any of Clause 7.1, Clause 11 or Clause 12 including
transferring its rights and obligations under this Agreement to an Affiliate.
	 
	14.1.2  	Clause 14.1.1 does not in any way limit the obligations of the Borrower under this
Agreement.
	 
	14.2  	Limitation of liability
	 
	14.2.1  	The Borrower shall indemnify the Lender for all costs and expenses reasonably incurred by
the Lender as a result of steps taken by it under Clause 14.1.

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	14.2.2  	The Lender is not obliged to take any steps under Clause 14.1 if, in the opinion of the
Lender (acting reasonably), to do so might be prejudicial to it.
	 
	15.  	Costs and expenses
	 
	15.1  	Transaction expenses
	 
	   	The Borrower shall promptly on demand pay the Lender the amount of all reasonable and
documented costs and expenses (including reasonable and documented legal fees) incurred by
the Lender in connection with the negotiation, preparation, printing, execution and
syndication of:

	 	(a)  	this Agreement and any other documents referred to in this Agreement; and
	 
	 	(b)  	any other document executed after the date of this Agreement in connection with
the Facility.

	15.2  	Amendment costs
	 
	   	If the Borrower requests an amendment, waiver or consent, the Borrower shall, within ten
Business Days of demand, reimburse the Lender for the amount of all reasonable and
documented costs and expenses (including reasonable and documented legal fees) incurred by
the Lender in responding to, evaluating, negotiating or complying with that request or
requirement.
	 
	15.3  	Enforcement costs
	 
	   	The Borrower shall, within ten Business Days of demand, pay to the Lender the amount of all
reasonable and documented costs and expenses (including reasonable and documented legal
fees) incurred by the Lender in connection with the enforcement of, or the preservation of
any rights under, this Agreement or the Guarantee.
	 
	16.  	Representations
	 
	16.1  	The Borrower makes the representations and warranties set out in this Clause 16.1 to the
Lender on the date of this Agreement and on the Effective Date.

	 	(a)  	It is a company duly incorporated and validly existing under the laws of the
jurisdiction of its incorporation.
	 
	 	(b)  	The execution, delivery and performance by it of this Agreement, and the
performance of the transactions contemplated hereby, are within its corporate powers,
have been duly authorized by all necessary corporate action, and do not contravene (i)
its constitutional documents, (ii) applicable law or (iii) any contract or instrument
binding on it or any of its properties or assets that is material to it and its
Subsidiaries, taken as a whole.
	 
	 	(c)  	No authorization or approval or other action by, and no notice to or filing
with, any Governmental Authority or regulatory body or any other third party is
required for the due execution, delivery and performance by it of this Agreement.

16

 

	 	(d)  	This Agreement has been duly executed and delivered by the Borrower. Assuming
that this Agreement has been duly executed by the Lender, this Agreement is the legal,
valid and binding obligation of the Borrower enforceable against the Borrower in
accordance with the terms of this Agreement, subject to (i) bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general application affecting the
rights and remedies of creditors and (ii) general principles of equity, regardless of
whether applied in proceedings in equity or at law.
	 
	 	(e)  	Since May 31, 2004, there has not occurred any Material Adverse Effect which is
continuing.
	 
	 	(f)  	The Facility shall be used by the Borrower for general corporate purposes.
	 
	 	(g)  	The claims of the Lender against the Borrower under this Agreement rank and
will at all times rank at least pari passu with the claims of all of the Borrower’s
unsecured creditors, save those whose claims are preferred solely by the laws of
general application having effect in relation to bankruptcy, insolvency, liquidation or
other similar events.
	 
	 	(h)  	The Borrower and its Subsidiaries have filed all tax returns that are material
to the Borrower and its Subsidiaries, taken as a whole, which are required to be filed
and have paid all taxes that are material to the Borrower and its Subsidiaries, taken
as a whole, in each case, that are due pursuant to said returns or pursuant to any
material assessment received by the Borrower or any of its Subsidiaries, except in
respect of such taxes, if any, as are being contested in good faith and by proper
proceedings and to which appropriate reserves are being maintained.
	 
	 	(i)  	The Borrower is not unable to, and will not as a result of its entry into this
Agreement and the performance by it of the transactions contemplated hereby become
unable to, pay its debts as they full due within the meaning of Section 214 of the
Companies Act 1963.

	17.  	General undertakings
	 
	17.1  	The undertakings in this Clause 17 remain in force from the date of this Agreement for so
long as any amount is outstanding under this Agreement.
	 
	17.2  	The Borrower will (and shall cause each of its Subsidiaries to):

	 	(a)  	Compliance with Laws, Etc. Comply in all material respects, with all
applicable laws, rules, regulations and orders except where the failure to so comply
would not have a Material Adverse Effect.
	 
	 	(b)  	Payment of Taxes, Etc. Pay and discharge before the same shall become
delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon
it or upon its property and (ii) all lawful claims that, if unpaid, might by law become
a Lien upon its property; provided, however, that the Borrower (or any
of its Subsidiaries) shall not be required to pay or discharge any such tax,
assessment, charge or claim that is being contested in good faith

17

 

	 	   	and by proper proceedings and as to which appropriate reserves are being maintained
unless and until any Lien resulting there from attaches to its property and becomes
enforceable against its other creditors and the aggregate of such Liens would have a
Material Adverse Effect.
	 
	 	(c)  	Preservation of Corporate Existence, Etc. Preserve and maintain its
corporate existence.
	 
	 	(d)  	Keeping of Books. Keep proper books of record and account, in which
full and correct entries shall be made of all financial transactions and the assets and
business of the Borrower and each Subsidiary in accordance with generally accepted
accounting principles in effect from time to time.
	 
	 	(e)  	Use of Proceeds. Use the Facility in accordance with the provisions of
Clause 3.1.
	 
	 	(f)  	Authorisations. The Borrower shall promptly:

	 	(i)  	obtain, comply with and do all that is necessary to maintain in
full force and effect; and
	 
	 	(ii)  	supply certified copies to the Lender of,
	 
	 	   	any Authorisation required under any law or regulation of its jurisdiction of
incorporation to enable it to perform its obligations under this Agreement and to
ensure the legality, validity, enforceability or admissibility in evidence in its
jurisdiction of incorporation of this Agreement.

	18.  	Events of Default
	 
	18.1  	Events of Default
	 
	   	Each of the events or circumstances set out in this Clause 18.1 is an Event of Default.

	 	(a)  	The Borrower shall fail to pay any principal of the Loan when the same becomes
due and payable; or the Borrower shall fail to pay any interest on the Loan within
three (3) Business Days after the same becomes due and payable; or the Borrower shall
fail to pay any fees payable hereunder within ten (10) Business Days after the same
become due and payable; or the Borrower shall fail to pay any other amount payable
under this Agreement within ten (10) Business Days after receipt by the Borrower of
written demand therefor; or
	 
	 	(b)  	Any representation or warranty made or deemed made by the Borrower herein or by
the Borrower (or any of its officers) in connection with this Agreement shall prove to
have been incorrect in any material respect when made or deemed made; or
	 
	 	(c)  	(i) The Borrower shall fail to perform or observe the covenant or agreement
contained in Clause 17.2(c) or (ii) the Borrower shall fail to perform or observe any
other term, covenant or agreement contained in this Agreement on its part to be
performed or observed if such failure shall remain unremedied

18

 

	 	   	for thirty (30) days after written notice thereof shall have been given to the
Borrower by the Lender; or
	 
	 	(d)  	The Borrower or any of its Subsidiaries shall generally not pay its respective
debts as such debts become due, or shall admit in writing its inability to pay its
debts generally, or shall make a general assignment for the benefit of, or enter into
any composition or arrangement with any of its, creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Subsidiaries seeking to adjudicate
it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
examination, arrangement, adjustment, protection, relief, or composition of it or its
debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a receiver,
liquidator, examiner, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted
against it (but not instituted by it), either such proceeding shall remain undismissed
or unstayed for a period of sixty (60) days, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief against, or
the appointment of a receiver, liquidator, examiner trustee, custodian or other similar
official for, it or for any substantial part of its property) shall occur; or the
Borrower or any of its Subsidiaries shall take any corporate action to authorize any of
the actions set forth in this subsection (d) under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors; or
	 
	 	(e)  	Any expropriation, attachment or sequestration, distress or execution affects
any asset or assets of the Borrower; or
	 
	 	(f)  	Any Guarantee Event of Default shall have occurred and be continuing; or
	 
	 	(g)  	This Agreement or the Guarantee ceases to be in full force and effect or shall
be declared null and void or the Borrower or the Guarantor shall contest the validity
or enforceability of this Agreement or, as the case may be, the Guarantee in writing or
deny in writing that it has any further liability under this Agreement or, as the case
may be, the Guarantee; or
	 
	 	(h)  	The Capitalization Ratio shall exceed 40%.

	18.2  	Acceleration
	 
	   	On and at any time after the occurrence of an Event of Default which is continuing the
Lender may by notice to the Borrower:

	 	(a)  	cancel the Facility whereupon it shall immediately be cancelled;
	 
	 	(b)  	declare that all or part of the Loan, together with accrued interest, and all
other amounts accrued or outstanding under this Agreement be immediately due and
payable, whereupon they shall become immediately due and payable; and/or
	 
	 	(c)  	declare that all or part of the Loan be payable on demand, whereupon it shall
immediately become payable on demand by the Lender.

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	19.  	Changes to the Lender
	 
	19.1  	Assignments and transfers by the Lender
	 
	   	The Lender may:

	 	(a)  	assign any of its rights; or
	 
	 	(b)  	transfer by novation any of its rights and obligations,

	   	to any Affiliate or, (i) with the prior written consent of the Borrower (not to be
unreasonably withheld or delayed) or (ii) following the occurrence of an Event of Default
which is continuing, to any bank or financial institution or to a trust, fund or other
entity which is regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets.
	 
	19.2  	Disclosure of information
	 
	   	The Lender may disclose to any of its Affiliates and any other person:

	 	(a)  	to (or through) whom the Lender assigns or transfers (or may potentially assign
or transfer) all or any of its rights and obligations under this Agreement;
	 
	 	(b)  	with (or through) whom the Lender enters into (or may potentially enter into)
any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or the Borrower; or
	 
	 	(c)  	to whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation,

	   	any information about the Borrower and the Guarantor as the Lender shall consider
appropriate provided that such Affiliate or such other person shall first have entered into
an appropriate confidentiality undertaking.
	 
	20.  	Changes to the Borrower
	 
	   	The Borrower may not assign any of its rights or transfer any of its rights or obligations
under this Agreement other than to the Guarantor and provided that ten
Business Day’s prior written notice has first been given to the Lender.
	 
	21.  	Payments
	 
	21.1  	Place
	 
	   	All payments by the Borrower under this Agreement shall be made to the Lender to such
account at such office or bank as it may notify to the Borrower for this purpose.
	 
	21.2  	Funds, set-off and counterclaim
	 
	   	Payments to the Lender under this Agreement shall be made in Dollars for value on the due
date, without set-off or counterclaim.

20

 

	21.3  	Non business days
	 
	   	If, under this Agreement, payment is due on a day which is not a Business Day, instead the
due date for that payment shall be the next Business Day in the same calendar month (if
there is one) or the preceding Business Day (if there is not).
	 
	21.4  	Time extension
	 
	   	During any extension of the due date for payment of any principal under this Agreement,
interest is payable on that principal at the rate payable on the original due date.
	 
	21.5  	Partial payments
	 
	   	If the Lender receives a payment insufficient to discharge all the amounts then due and
payable by the Borrower under this Agreement, the Lender shall apply that payment in such
order as, in its absolute discretion, it considers appropriate, irrespective of, and
notwithstanding any, purported application made by the Borrower to the contrary.
	 
	21.6  	Set-off
	 
	   	If an Event of Default shall have occurred and be continuing, the Lender may set off any
matured obligation due from the Borrower under this Agreement (to the extent beneficially
owned by the Lender) against any matured obligation owed by the Lender to the Borrower,
regardless of the place of payment, booking branch or currency of either obligation. If the
obligations are in different currencies, the Lender may convert either obligation at a
market rate of exchange in its usual course of business for the purpose of the set-off.
	 
	22.  	Notices
	 
	22.1  	Communications in writing
	 
	   	Any communication to be made under or in connection with this Agreement shall be made in
writing and, unless otherwise stated, may be made by fax, e-mail or letter.
	 
	22.2  	Addresses
	 
	22.2.1  	The address, e-mail address and fax number (and the department or officer, if any, for whose
attention the communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with this Agreement is that identified with its
name below or any substitute address, e-mail address, fax number or department or officer as
the Party may notify to the other Party by not less than five Business Days’ notice.
	 
	22.2.2  	The addresses referred to in Clause 22.2.1 are as follows:

	 	(a)  	The Borrower

	 	 	 	 	 
	

	 	500 Oracle Parkway
	

	 	Redwood Shores

21

 

	 	 	 	 	 
	

	 	California	 	 
	

	 	94065 USA	 	 
	

	 	Attention:
	 	Deborah Lange/Daniel Cooperman

	

	 	Fax:
	 	+1 (650) 506 7114

	 	(b)  	The Lender

	 	 	 	 	 
	 	 	ABN AMRO Bank N.V.
	 	 	101 California Street Suite 4300,
	 	 	San Francisco CA 94111, USA
	 
	 	 	 	 
	

	 	Attention:
	 	Bill Davidson, Credit Portfolio Management-Technology
	

	 	Facsimile:
	 	+1 415 984 3717
	 
	 	 	 	 
	 	 	With a copy to:
	

	 	Kymm Recht	 	 
	 	 	WCS Financial Markets
	 	 	Northamerican Credit Administration
	 	 	540 W Madison Street, 26th Floor
	 	 	Chicago, IL 60661
	 
	 	 	 	 
	

	 	Facsimile:
	 	+1

	22.3  	Delivery
	 
	22.2.3  	Any communication or document made or delivered by one person to another under or in
connection with this Agreement will only be effective:

	 	(a)  	if by way of fax, when received in legible form; or
	 
	 	(b)  	if by way of letter, (i) when it has been left at the relevant address or (ii)
two Business Days (or, in the case of airmail, five Business Days) after being
deposited in the post postage prepaid (or, as the case may be, airmail postage
prepaid), in an envelope addressed to it at that address; or
	 
	 	(c)  	if by e-mail, upon sender’s receipt of an acknowledgement from the intended
recipient

and, if a particular department or officer is specified as part of its address details
provided under Clause 22.2, if addressed to that department or officer.

	22.2.4  	Any communication or document to be made or delivered to the Lender will be effective only
when actually received by the Lender and then only if it is expressly marked for the attention
of the department or officer identified in Clause 22.2.2(b) (or any substitute department or
officer as the Lender shall specify for this purpose).
	 
	22.4  	English language
	 
	22.4.1  	Any notice given under or in connection with this Agreement must be in English.

22

 

	22.4.2  	All other documents provided under or in connection with this Agreement must be in English.
	 
	22.5  	Indemnity

	22.5.1  	The Lender is requested and authorised by the Borrower to rely upon, and act in accordance
with, any notice, demand or other communication in respect of the Facility (each an
“Instruction” and together “Instructions”) which may from time to time be, or purport to be,
given by way of facsimile on behalf of the Borrower by any person purporting to act on behalf
of the Borrower without any enquiry on the Lender’s part as to the authority or identity of
the person giving or purporting to give such Instruction or Instructions and regardless of the
circumstances prevailing at the time of such Instruction or Instructions.
	 
	22.5.2  	The Lender shall be entitled to treat any Instruction as fully authorised by, and binding
upon, the Borrower and shall be entitled (but not bound) to take such steps in connection
with, or in reliance upon, such Instruction as the Lender in its sole and absolute discretion
may consider appropriate, whether such Instruction includes an instruction to pay money or
otherwise to debit or credit any account, or relates to the disposition of any money,
securities or documents, or purports to bind the Borrower to any agreement or other
arrangement with the Lender or with any other person or to commit the Borrower to any other
type of transaction or arrangement whatsoever, regardless of the nature of the transaction or
arrangement or the amount of money involved and notwithstanding any error or misunderstanding
or lack of clarity in the terms of such Instruction.
	 
	22.5.3  	The Borrower undertakes forthwith on demand by the Lender to indemnify the Lender and to
keep the Lender indemnified against all reasonable losses, claims, actions, proceedings,
demands, damages, costs and expenses incurred or sustained by the Lender, of any nature and
howsoever arising, out of or in connection with its acknowledgement and compliance with any
Instruction or Instructions provided that such indemnity shall not, as to the
Lender, be available to the extent that such losses, claims, actions, proceedings, demands,
damages, costs and expenses are determined by a court of competent jurisdiction by final and
non-appealable judgement to have resulted from the gross negligence or wilful misconduct of
the Lender or, to the extent that in any action brought by the Borrower, the Borrower
prevails.
	 
	23.  	Calculations and certificates
	 
	23.1  	Accounts
	 
	   	In any litigation or arbitration proceedings arising out of or in connection with this
Agreement, the entries made in the accounts maintained by the Lender are prima facie
evidence of the matters to which they relate.
	 
	23.2  	Certificates and determinations
	 
	   	Any certification or determination by the Lender of a rate or amount under this Agreement
is, in the absence of manifest error, conclusive evidence of the matters to which it
relates.

23

 

	23.3  	Day count convention
	 
	   	Any interest, commission or fee accruing under this Agreement will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year of 365 days
or, in any case where the practice in the relevant interbank market differs, in accordance
with that market practice.
	 
	24.  	Partial invalidity
	 
	   	If, at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way be
affected or impaired.
	 
	25.  	Remedies and waivers
	 
	   	No failure to exercise, nor any delay in exercising, on the part of the Lender, any right or
remedy under this Agreement shall operate as a waiver, nor shall any single or partial
exercise of any right or remedy prevent any further or other exercise or the exercise of any
other right or remedy. The rights and remedies provided in this Agreement are cumulative
and not exclusive of any rights or remedies provided by law.
	 
	26.  	Counterparts
	 
	   	This Agreement may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of this Agreement.
	 
	27.  	Governing law
	 
	   	This Agreement is governed by Irish law.
	 
	28.  	Jurisdiction

	 	(a)  	The courts of Ireland have non-exclusive jurisdiction to settle any dispute
arising out of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute”).
	 
	 	(b)  	The Parties agree that the courts of Ireland are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.
	 
	 	(c)  	This Clause 28 is for the benefit of the Lender only. As a result, the Lender
shall not be prevented from taking proceedings relating to a Dispute in any other court
or courts with jurisdiction.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

24

 

SCHEDULE 1

Conditions Precedent

	1  	Borrower and Guarantor
	 
	1.1  	A copy of the constitutional documents of the Borrower and the Guarantor.
	 
	1.2  	A copy of a resolution of the board of directors of the Borrower and the Guarantor.
	 
	1.3  	A specimen of the signature of each person authorised by the resolutions referred to in
Clause 1.2 above.
	 
	1.4  	A director’s certificate for the Borrower and the Guarantor (to include, without limitation,
in respect of the Borrower an appropriate solvency declaration).
	 
	2  	Legal opinion
	 
	2.1  	A legal opinion of A&L Goodbody, legal advisers to the Borrower in Ireland.
	 
	2.2  	A legal opinion of Davis Polk & Wardwell, legal advisers to the Guarantor in the USA on the
Guarantee.
	 
	2.3  	A legal opinion of in-house counsel to the Guarantor.
	 
	3  	Other documents and evidence
	 
	3.1  	A copy of any other Authorisation or other document, opinion or assurance which the Lender
considers to be necessary or desirable in connection with the entry into and performance of
the transactions contemplated by this Agreement or the Guarantee or for the validity and
enforceability of this Agreement or the Guarantee.
	 
	3.2  	Satisfactory searches against the Borrower.

25

 

SCHEDULE 2

Utilisation Request

	 	 	 	 	 
	From:

	**	 	 	[Borrower]
	 
	 	 	 	 
	To:

	**	 	 	[Lender]
	 
	 	 	 	 
	Dated:

	**	 	 	 

Dear Sirs

	 	 	 	 	 	 	 
	Facility Agreement dated [**	] (the “Agreement”)	 	 
	 
	 	 	 	 	 	 
	1	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement
have the same meaning in this Utilisation Request unless given a different meaning in this
Utilisation Request.
	 
	 	 	 	 	 	 
	2	 	We wish to borrow the Loan on the following terms:
	 
	 	 	 	 	 	 
	

	 	Proposed Utilisation Date:
	 	[**               ] (or, if that is not a Business Day, the next Business Day)

	 
	 	 	 	 	 	 
	

	 	Currency of Loan:
	 	Dollars

	 
	 	 	 	 	 	 
	

	 	Amount:
	 	$700,000,000	 	 
	 
	 	 	 	 	 	 
	

	 	Interest Period:
	 	[**               ]

	 
	 	 	 	 	 	 
	3	 	We represent and warrant that condition (a) specified in Clause 4.2 (Further conditions
precedent) is true and correct and confirm that condition (b) specified in Clause 4.2 (Further
conditions precedent) is true and correct on the date of this Utilisation Request.
	 
	 	 	 	 	 	 
	4	 	The proceeds of the Loan should be credited to [account].
	 
	 	 	 	 	 	 
	5	 	This Utilisation Request is irrevocable.

Yours faithfully

	 	 
	authorised signatory for

	**          [ Borrower]

26

 

Signatories

THE BORROWER

Oracle Technology Company

By:

THE LENDER

ABN AMRO BANK N.V.

	 	 	 
	By:

	 	By:

27

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