Document:

ASSIGNMENT AND TERMINATION AGREEMENT

 Exhibit 10.3 
 VICURON PHARMACEUTICALS INC. 
 AND 
 OSCIENT PHARMACEUTICALS CORPORATION 
 ASSIGNMENT AND TERMINATION AGREEMENT

 THIS ASSIGNMENT AND TERMINATION AGREEMENT (the “Agreement”) is made effective as of the 3RD day of February, 2006 (the “Effective Date”) by and between Oscient Pharmaceuticals Corporation (formerly known as Genome Therapeutics
Corporation), a Massachusetts corporation having its principal place of business at 1000 Winter Street, Suite 2200, Waltham, MA 02451, USA (“Oscient”) and Vicuron Pharmaceuticals Inc., a Delaware corporation with its principal place of
business at 455 South Gulph Road, Suite 305, King of Prussia, PA 19406, USA (for itself and as successor-in-interest to Biosearch Italia, “Vicuron”). Oscient and Vicuron are sometimes referred to herein individually as a “Party”
and collectively as the “Parties.” 
 RECITALS 
 A. Vicuron is a biopharmaceutical company that discovers, develops and manufactures medicines for hospital-based infectious diseases. On September 14, 2005, Pfizer Inc. acquired Vicuron (formerly known as
Versicor Inc.), the successor to Biosearch Italia (“Biosearch”), an Italian pharmaceutical company. Biosearch discovered and partly developed a proprietary compound named Ramoplanin. Vicuron is now a wholly-owned subsidiary of Pfizer.

 B. Oscient is a biopharmaceutical company committed to the clinical development and commercialization of novel therapeutics to
address unmet medical needs and is interested in completing the development of Ramoplanin and commercializing Ramoplanin. 
 C. On
October 8, 2001 Biosearch entered into a License and Supply Agreement with Oscient to permit the latter to develop and commercialize in the United States and Canada (including the territories and possessions of each such country) Ramoplanin for
the treatment or prevention of any human disease (together with Amendment No. 1 dated as of August 8, 2002 and the letter agreement dated as of October 22, 2002, the “License and Supply Agreement”). 
 D. Oscient and Vicuron (who has assumed the rights and obligations of Biosearch under the License and Supply Agreement by virtue of the merger of
Versicor and Biosearch) wish to terminate the License and Supply Agreement and simultaneously enter into a new agreement by which, among other actions, Vicuron will assign to Oscient certain property related to Ramoplanin on the terms and conditions
set forth in this Agreement. 
 ARTICLE 1 
 DEFINITIONS 
 The following terms shall have the following meanings as used in this
Agreement: 
 1.1 “Affiliate” means an entity that, directly or indirectly, through one or more intermediaries,
controls, is controlled by or is under common control with Vicuron or Oscient, as the case may be. 

 1.2 “Assigned Property” shall have the meaning set forth in
Section 3.1. 
 1.3 “Bulk Compound” means the bulk form of the Compound meeting the Specifications and
used to manufacture Product. 
 1.4 “Commercialization” shall mean all activities undertaken by Oscient or its
designees relating to the manufacture and sale of Product in the Territory, including advertising, education, marketing, distribution and post-approval product support clinical studies conducted after Regulatory Approval of a Product for a
particular indication. 
 1.5 “Compound” means the compound known as Ramoplanin, as described in *****.

 1.6 “Control” means possession of the ability to grant rights as provided for herein without violating the
terms of any agreement or other arrangement with any Third Party. 
 1.7 “Derivative Patents” shall mean the
patents and patent applications listed on Schedule 1.7 and all related patent applications, including divisions, reissues, continuations, continuations-in-part, re-examination applications and extensions thereof and all foreign counterpart
patents and patent applications. 
 1.8 “Development” means all activities relating to obtaining Regulatory
Approval of a Product, Product delivery systems and new indications thereof and all activities relating to developing the ability to manufacture the same. 
 1.9 “Excluded Trademarks” means those trademarks listed on Schedule 1.9. 
 1.10 “FDA” means the United States Food and Drug Administration or any successor agency thereto. 
 1.11 “Former Partner” shall mean that certain company with which Biosearch entered into a License and Supply Agreement dated May 8, 1998 and an amendment thereto effective as of June 1, 2001.

 1.12 “Global Trademarks” means all trademarks except for Excluded Trademarks, including without limitation
any registrations and common law rights associated therewith, and any goodwill associated with any of the foregoing, used for or in connection with Products, Bulk Compound, and Compound. 
 1.13 “Global Tradenames” means all tradenames, including without limitation any registrations and common law rights
associated therewith, and any goodwill associated with any of the foregoing, used for or in connection with Products, Bulk Compound, and Compound. 
 1.14 “IND” (or “Investigational New Drug Application”) means an application as defined in the United States Food, Drug and Cosmetic Act and applicable regulations promulgated thereunder to the FDA or
the equivalent application to the equivalent agency in jurisdictions outside the United States, the filing of which is necessary to commence clinical testing of Products in humans. 
 1.15 “Information” means any and all techniques and data, inventions, discoveries, practices, processes, methods,
knowledge, results, trade secrets or other know-how, skill, experience, test data including pharmacological, toxicological, non-clinical and clinical data, medical literature compilations, and analytical and quality control data or descriptions.

 1.16 “Joint Patent” means any inventions made jointly by personnel of Vicuron (or its Affiliates) and
Oscient under the License and Supply Agreement. 

 * Confidential information has been omitted
and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 1.17 “Materials” means any and all (i) compounds, compositions of
matter, strains, cell lines and banks, assays and biological materials, including *****, and other related proprietary strains, and (ii) all other documents, files, diagrams, specifications, designs, schematics, reports, records, laboratory
notebooks, manufacturing and other materials, packaging, commercial and market information, prototypes, test devices, models or simulations, or other written, graphic, biologic or other tangible material in any medium. 
 1.18 “NDA” means an application as defined in the United States Food, Drug and Cosmetic Act and applicable regulations
promulgated thereunder to the FDA, or the equivalent application to the equivalent agency in jurisdictions outside the United States, the filing of which is necessary to commence the commercial sale of Products. 
 1.19 “Net Sales” means the gross sales with respect to a Product in final dosage form by Oscient, its Affiliates or its
licensees to a Third Party end user, based upon the approval received from the FDA or RHA, less (i) discounts, including cash discounts, and/or rebates (including government-mandated rebates), retroactive price reductions or allowances actually
allowed or granted from the billed amount, (ii) credits or allowances actually granted upon claims, rejections or returns of such Products, including recalls, (iii) freight, postage, shipping and insurance charges paid for delivery of
Product, to the extent both billed and Oscient bears the cost of freight and insurance for a Product, and (iv) taxes (except income taxes), duties or other governmental charges levied on or measured by the billing amount when included in
billing, as adjusted for rebates and refunds. Net Sales shall be determined from books and records maintained in accordance with generally acceptable accounting principles in the United States, consistently applied. 
 In the event Vicuron is receiving royalties under this Agreement from any Product sold in the form of a combination product containing one or more active ingredients in
addition to the Compound, Net Sales for such combination product will be calculated by multiplying actual Net Sales by the fraction A/(A+B) where A is the fair market value of the portion of the combination product that contains the Compound and B
is the fair market value of the other active ingredients included in such combination product, as determined by market prices of such portions if separately priced and sold. If, on a country-by-country basis, the other active ingredient or
ingredients in the combination are not sold separately in that country, Net Sales shall be calculated by multiplying actual Net Sales of such combination product by the fraction A/C where A is the fair market value of the Product if sold separately,
and C is the fair market value of the combination product. If, on a country by country basis, neither the Product nor the other active component or components of the combination product is sold separately in said country, Net Sales shall be
determined by mutual agreement of both the parties acting in good faith. As used herein, the term “active ingredient” does not include ingredients the primary effect of which is the enhancement of drug delivery, even if such ingredients
have pharmacological activity. 
 1.20 “New Territory” means all countries and territories worldwide other
than those included in the Original Territory. 
 1.21 “Original Territory” means the United States and Canada
and the territories and possessions of each of the foregoing countries. 
 1.22 “Patent” means (i) valid
and enforceable patents, re-examinations, reissues, renewals, extensions, term restorations and foreign counterparts thereof, and (ii) pending (at any time during the term of this Agreement) patent applications and foreign counterparts thereof.

 1.23 “Patent Rights” means any and all (a) U.S. or foreign patents, (b) U.S. or foreign patent
applications, including, without limitation, all provisional applications, substitutions, continuations, continuations-in-part, divisions, renewals, and all patents granted thereon, (c) all patents-of-addition, reissues, reexaminations and
extensions or restorations by existing or future extension or restoration mechanisms, including, without limitation, supplementary protection certificates or the equivalent of any of the foregoing, (d) any other form of government-issued right
substantially equivalent to any of the foregoing, and (e) any and all foreign counterparts of the foregoing. 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 1.24 “Product” means any product including or incorporating any
formulation of the Compound. 
 1.25 “Regulatory Approval” means any and all approvals
(including pricing and reimbursement approvals, if appropriate), product and/or establishment licenses, registrations, authorizations, or designations of any federal, state or local regulatory agency, department, bureau or other governmental entity,
necessary or used for the Development, manufacture, use, or storage of Products in a regulatory jurisdiction, including, without limitation, INDs, NDAs, any fast track or orphan drug designation or other similar designations, and data or market
exclusivity. 
 1.26 “Regulatory Filing” means any and all filings, submissions or
communications with or to the FDA or RHA which relate to the Product or Regulatory Approvals, whether or not obtained, and any other documents related thereto, including without limitation any filings, submissions, communications or documents
associated with an IND, NDA or fast track or orphan drug designation. 
 1.27 “RHA” means any relevant
government health authority (or successor agency thereto) in any country, other than the FDA, whose Regulatory Approval is necessary to market and sell the Product in the relevant country of the Territory. 
 1.28 “Royalty” shall have the meaning set forth in Section 7.1. 
 1.29 “Specifications” means the current specifications for Bulk Compound as attached to this Agreement as Exhibit
I. 
 1.30 “Territory” means all countries and territories worldwide. 
 1.31 “Third Party” means any entity other than Vicuron or Oscient or their Affiliates. 
 1.32 “Vicuron Know-how and Materials” means any and all Information and Materials owned or Controlled by Vicuron
that is directly related to or is used solely in connection with the Bulk Compound, Compound, or Products, or the manufacturing, Development or Commercialization thereof. Without limiting the foregoing, Vicuron Know-how and Materials does not
include Information and Materials that is developed or acquired by Vicuron or its Affiliates if such Information and Materials have only an incidental, and not direct, relationship to any Bulk Compound, Compound or Products. 
 1.33 “Vicuron Licensed Know-how and Materials” means any and all Information and Materials owned or Controlled by Vicuron
that is not Vicuron Know-how and Materials and that is necessary, required, or used in connection with the manufacturing, Development and Commercialization of Bulk Compound, Compound, and Products. 
 1.34 “Vicuron Patents” means the patents listed on Schedule 3.1(a) hereto. 
 1.35 “Vicuron Regulatory Approvals” means those Regulatory Approvals owned or Controlled by Vicuron. 
  

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 ARTICLE 2 
 TERMINATION 
 2.1 Termination of the License and Supply Agreement; New Agreement. The Parties
agree that this Agreement shall supercede the License and Supply Agreement, which shall be and hereby is terminated as of the Effective Date, and, notwithstanding any provisions of the License and Supply Agreement to the contrary, no rights,
obligations or liabilities of the Parties under the License and Supply Agreement shall survive this termination except for the rights, obligations and liabilities of both Parties under Sections 12.2 (Representations), 13
(“Indemnification”) and 14 (“Miscellaneous”) and Vicuron’s obligations or liabilities under Section 9 (“Confidentiality”) thereof. 
 ARTICLE 3 
 ASSIGNMENT AND LICENSE 
 3.1 Assignment of Property. Vicuron hereby sells, transfers, and assigns to Oscient the following rights, free and clear of any liens,
charges, claims, encumbrances or restrictions whatsoever (“Assigned Property”): 
 (a) all of Vicuron’s rights, title,
and interests in and to the Vicuron Patents listed on Schedule 3.1(a) to this Agreement, and all Patent Rights issuing or arising therefrom, to the full end of their terms (“Assigned Patents”); 
 (b) all of Vicuron’s rights, title and interests in and to the Vicuron Know-how and Materials (“Assigned Know-how”); 
 (c) all of Vicuron’s rights, title and interests in and to the Global Trademarks and Global Tradenames, including those listed on Schedule
3.1(c) to this Agreement; 
 (d) all of Vicuron’s rights, title and interests in and to Regulatory Filings and Vicuron
Regulatory Approvals; 
 (e) any other rights, title and interests of Vicuron that are necessary or used in the Development,
Commercialization, and manufacture of the Bulk Compound, Compound, and Products; and 
 (f) any and all causes of action, claims,
demands or other rights, occasioned from or because of any and all past and future infringement, misappropriation, dilution or any other violation of rights of any of the Assigned Property, including all rights to recover damages, profits and
injunctive relief for infringement of any of the Assigned Property. 
 3.2 Further Assurances. Vicuron shall execute and sign such
further assignments, including the patent and trademark assignment forms provided in Exhibits II and III, respectively, instruments, applications and documents, and do or cause to be done such other acts and things, as may reasonably be required by
Oscient to effectively vest in Oscient all of the Assigned Property, except that Vicuron shall not be required to file any patent or trademark assignments with any governmental authorities or agencies anywhere in the Territory. 
 3.3 No Assumption of Liabilities or Obligations. 
 (a) Except as expressly set forth in this Agreement, Oscient is not assuming and shall not be liable for any contractual obligations of Vicuron or its Affiliates or any other liabilities or obligations of
Vicuron or its Affiliates of any nature, fixed or contingent, disclosed or undisclosed, to the extent that such liabilities or obligations arose, or related to an act, omission or breach occurring, prior to the Effective Date, which such liabilities
or obligations pertain to the Assigned Property or arise from the consummation of the transactions contemplated hereunder, all of which liabilities and obligations shall remain the sole responsibility of Vicuron. 
  

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 (b) Except as expressly set forth in this Agreement, Vicuron is not assuming and shall not be
liable for any contractual obligations of Oscient or its Affiliates or any other liabilities or obligations of Oscient or its Affiliates of any nature, fixed or contingent, disclosed or undisclosed, to the extent that such liabilities or obligations
arose, or related to an act, omission or breach occurring, on or following the Effective Date, which such liabilities or obligations pertain to the Assigned Property or arise from the consummation of the transactions contemplated hereunder, all of
which liabilities and obligations shall be sole responsibility of Oscient. 
 3.4 License. Vicuron hereby grants to Oscient a
worldwide, irrevocable, royalty-free, non-exclusive license, with the right to sublicense under the Vicuron Licensed Know-how and Materials, to manufacture, Develop and Commercialize Bulk Compound, Compound, and Products; provided,
however, that in the event that Vicuron is required to pay any fees associated with Oscient’s use of any Vicuron Licensed Know-how and Materials on or following the Effective Date, Vicuron will notify Oscient of such fees and if Oscient
agrees in writing to obtain such license, Vicuron and Oscient will negotiate in good faith to determine the amount of royalty or other payment due to Vicuron in consideration for the license granted pursuant to this Section 3.4. 
 3.5 Right of Negotiation for Derivative Patents. The Parties further agree that, if Vicuron has not licensed all or a portion of its rights under
a Derivative Patent to a Third Party, or assigned or otherwise transferred a Derivative Patent to a Third Party on or before the ***** of the Effective Date (“Option Date”), Oscient may request within a ***** day period following the
Option Date to discuss with Vicuron the terms upon which Oscient will accept the assignment of such Derivative Patent. The Parties shall meet after such request and negotiate in good faith the potential terms of an agreement on such terms. If the
Parties do not enter into such an agreement within ***** days after Oscient so requests to negotiate such opportunity with Vicuron (“Negotiation Period”), then Vicuron shall thereafter be free to offer such opportunity to a Third Party
with respect to such Derivative Patent; provided, however, that Vicuron shall not enter into any agreement with any Third Party with respect to such Derivative Patent on terms that are more favorable to such Third Party than those last offered by
Vicuron to Oscient during the Negotiation Period. In the event that Vicuron does not enter into any agreement with any Third Party with respect to such Derivative Patent within ***** days after the Negotiation Period, Vicuron and Oscient shall enter
into an agreement on terms last offered by Oscient during the Negotiation Period. Vicuron agrees to give Oscient prompt notice in writing if Vicuron licenses or assigns all or a portion of its rights under any Derivative Patent to a Third Party.

 ARTICLE 4 
 EXECUTION
FEE; MILESTONE PAYMENTS 
 4.1 Execution Fee. As partial payment for the Assigned Property granted by Vicuron pursuant to Article
3 of this Agreement, Oscient shall pay to Vicuron, within two (2) business days after the Effective Date, ***** Dollars (U.S.$ *****), cash by wire transfer (same value date). 
 4.2 Milestone Payments for Original Territory. Oscient or its licensee shall make the following milestone payments to Vicuron within ten
(10) business days after the first achievement of each of the following milestones with respect to the Product in the Original Territory: 
  

	 	(i)	***** Dollars (U.S. $*****) payable upon filing of the U.S. NDA with the FDA. 

  

	 	(ii)	***** Dollars (U.S. $*****) payable upon approval of the U.S. NDA by the FDA. 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 4.3 Milestone Payments for New Territory. Oscient or its licensee shall make the following
milestone payments to Vicuron within ten (10) business days after the first achievement of each of the following milestones with respect to the Product in the New Territory: 
  

	 	(i)	***** Dollars (U.S. $*****) payable upon filing of an NDA with the European Agency for the Evaluation of Medicinal Products (“EMEA”). 

  

	 	(ii)	***** Dollars (U.S. $*****) payable upon receipt of Regulatory Approval of an NDA from the EMEA. 

  

	 	(iii)	***** Dollars (U.S. $*****) payable upon filing of an NDA in Japan. 

  

	 	(iv)	***** Dollars (U.S. $*****) payable upon receipt of Regulatory Approval of an NDA in Japan. 

 Any grant by Oscient of a license to a Third Party shall not affect Vicuron’s right to receive milestone payments as provided in Sections 4.2 and
4.3. Oscient shall remain responsible for the payments due to Vicuron pursuant to Sections 4.2 and 4.3 in the event it grants any such license. The payment amounts are nonrefundable and noncreditable. 
 ARTICLE 5 
 TECHNOLOGY TRANSFER

 5.1 Transfer of Vicuron Know-how and Materials. 
 (a) Within thirty (30) days of the Effective Date, Vicuron shall deliver and transfer to Oscient, or Oscient’s designee, all Vicuron Know-how and Materials, Vicuron Licensed Know-how and Materials,
and Regulatory Filings to a location designated by Oscient and in accordance with commercially reasonable procedures for a transfer of this type. Vicuron will provide Oscient with all reasonable assistance required to transfer the Vicuron Know-how
and Materials, Vicuron Licensed Know-how and Materials, Regulatory Filings and Vicuron Regulatory Approvals, and the benefit thereof, to Oscient or Oscient’s designee. Without limiting the generality of the foregoing, (a) Vicuron shall
provide Oscient or its designee with all Information and Materials in its possession necessary to enable it to manufacture the Bulk Compound and Product, and (b) if visits with personnel of Vicuron and its Affiliates are reasonably requested by
Oscient for purposes of transferring the Vicuron Know-how and Materials, Vicuron Licensed Know-how and Materials, Regulatory Filings and Vicuron Regulatory Approvals to Oscient or its designee, or for purposes of Oscient’s acquiring expertise
on the practical application and use of the Vicuron Know-how and Materials, Vicuron Licensed Know-how and Materials, Regulatory Filings or Vicuron Regulatory Approvals or of assisting Oscient or its designee on issues arising during such transfer
and transition, then, on a reasonable schedule to be agreed upon by the Parties, qualified personnel from each Party with appropriate technical or regulatory expertise who are familiar with all aspects of the Vicuron Know-how and Materials, Vicuron
Licensed Know-how and Materials, Regulatory Filings and Vicuron Regulatory Approvals shall meet at such facilities or locations as may be mutually agreed upon, and shall participate in telephone conference calls so that the personnel from Vicuron
can transfer knowledge to Oscient personnel about manufacture of the Products. The Parties now anticipate that these in-person meetings shall occur at mutually agreed locations and that telephone conference calls shall occur regularly for a period
of at least ***** months from the Effective Date, it being agreed that there shall be no more than ***** days of in-person meetings during such *****-month period unless the Parties agree to additional meetings. Notwithstanding the foregoing, until
Oscient or its designee *****, Vicuron shall make available to Oscient Vicuron’s then-current employees or then-current consultants who have expertise or knowledge relevant to the manufacture of Bulk Compound on a reasonable schedule to be
agreed upon by the Parties. The transfer of Vicuron Know-how and Materials and Vicuron Licensed Know-how and Materials to Oscient shall be complete only upon Vicuron’s 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 satisfaction of the foregoing requirements. Vicuron and its Affiliates agree to cooperate with Oscient and applicable
regulatory authorities to the extent reasonably necessary to effect the successful transfer of Regulatory Filings and Vicuron Regulatory Approvals. 
 (b) As of the Effective Date, Vicuron has designated Jeffrey Meckler as its primary contact person and Oscient has designated Diane McGuire as its primary contact person. The primary contact persons shall be responsible for oversight
of the interactions and activities described in Section 5.1(a) and shall attempt to resolve any questions that arise during the course of such transfer. 
 ARTICLE 6 
 BULK COMPOUND 
 6.1 Transfer of Bulk Compound. Vicuron agrees to provide Oscient with any or all of the Bulk Compound for no additional consideration. Vicuron
estimates there is approximately ***** kg of Bulk Compound. 
 ARTICLE 7 
 ROYALTIES; PAYMENT PROCEDURES AND RECORDS 
 7.1 Royalties. Oscient shall
pay to Vicuron a royalty equal to (a) ***** percent (*****%) of Net Sales in the Original Territory and (b) ***** percent (*****%) of Net Sales in the New Territory (collectively “Royalty”). 
 7.2 Sales by Licensees. If Oscient grants a license under the rights granted to it pursuant to Article 3, then such license shall include an
obligation for the licensee to account for and report to Oscient its Net Sales of such Products on the same basis as if such sales were Net Sales by Oscient, and Oscient shall pay Royalties to Vicuron on such sales as if the Net Sales of the
licensee were Net Sales of Oscient. 
 7.3 Royalty Reports. 
 (a) Oscient will deliver to Vicuron a report showing in detail its calculation of the Net Sales and quantities of any Products sold by Oscient
during a given calendar quarter within ***** days following the end of such quarter for which Royalty payments are due from Oscient. Oscient shall pay the Royalty due on Net Sales during the calendar quarter covered by a given report under this
Section 7.3 simultaneously with the delivery of such report to Vicuron. 
 (b) Oscient will deliver to Vicuron a report showing
in detail its calculation of the Net Sales and quantities of any Products sold by Oscient’s licensees during a given calendar quarter to Vicuron within ***** business days following Oscient’s receipt of such report by its licensees.
Oscient shall pay the amounts due to Vicuron on Net Sales by Oscient’s licensees pursuant to Section 7.2 simultaneously with the delivery of such report to Vicuron. Oscient shall use reasonable efforts to have licensees provide such report
in a timely fashion after the end of each calendar quarter and each calendar year. 
 7.4 Exchange Rate; Manner and Place of Payment.
All amounts paid to Vicuron hereunder shall be paid in United States currency. Net Sales shall be accounted for on a monthly basis in U.S. Dollars at the spot rate of exchange published by the Board of Governors of the Federal Reserve System in
Statistical Release H.10 (http://www.federalreserve.gov/releases/H10) for each month on the last banking day of such month. All payments due to Vicuron under this Agreement shall be made by wire transfer at a bank and to an account designated by
Vicuron, unless otherwise specified by Vicuron. 

 * Confidential information has been omitted
and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 7.5 Late Payments. In the event that any payment due hereunder is not made when due, interest
shall accrue on the late payment from the due date of such payment at *****. The payment of such interest shall not limit any Party from exercising any other rights it may have as a consequence of the lateness of the payment. 
 7.6 Record Keeping. During the term of this Agreement (as described in Section 10.1), Oscient shall keep full and accurate books and records
setting forth, for the Product on which payments are due, gross sales, all deductions allowed in arriving at Net Sales and any other information necessary and in sufficient detail to allow the calculation of payments to be paid by Oscient. During
the term of this Agreement and for a period of ***** years thereafter, Oscient shall permit Vicuron, at Vicuron’s expense, by independent certified public accountants employed by Vicuron or Pfizer and reasonably acceptable to Oscient, to
examine relevant books and records at any reasonable time, not more often than ***** each calendar year, within two (2) years of any such payment. The opinion of said independent accountants regarding such reports, accountings and payments
shall be binding on the Parties, other than in the case of manifest error. Vicuron shall bear the cost of any such examination and review; provided that if the inspection and audit shows an underpayment of royalties of more than ***** percent
(*****%) of the amount due for the applicable period, then Oscient shall promptly reimburse Vicuron for all costs incurred in connection with such examination and review. Oscient shall promptly pay to Vicuron the amount of any underpayment of
Royalties revealed by an examination and review, together with interest calculated pursuant to Section 7.5. Any overpayment of Royalties by Oscient revealed by an examination and review shall be fully-creditable against future royalty payments
under Section 7.1. 
 7.7 Tax and Withholdings. 
 (a) Any withholding taxes levied by tax authorities in the Territory on the payments hereunder, to the extent due by Vicuron and not transferable upon Oscient, shall be borne by Vicuron and deducted by Oscient
from the sums otherwise payable by it hereunder for payment to the proper tax authorities on behalf of Vicuron. In such event, Oscient shall promptly deliver to Vicuron an official tax certificate or other evidence of such tax obligations, together
with proof of payment from the relevant governmental authority of all amounts deducted and withheld sufficient to enable Vicuron to claim such payment of taxes. Oscient agrees to cooperate with Vicuron in the event Vicuron claims exemption from such
withholding or seeks deductions under any double taxation or other similar treaty or agreement from time to time in force. 
 (b)
VAT. It is understood and agreed between the Parties that any payments made under Section 7.1 and Article 4 of this Agreement are inclusive of any value added tax imposed upon such payments. 
 7.8 Right to Offset. 
 (a) If
Oscient believes that it is necessary to enter into an agreement with a Third Party to obtain a license under a patent right or other right that Oscient reasonably believes or expects to be necessary to Commercialize one or more Products (including,
e.g., rights under patent applications that, if issued, would be necessary), or if as a result of litigation or settlement of a claim Oscient is required to pay a Thirty Party a royalty or other payment for the right to Develop or
Commercialize a Product in the Territory, then Oscient may offset ***** percent (*****%) of the amount of such royalties or other payments payable by Oscient to such Third Party (the “Offset Amount”) against amounts Oscient is obligated to
pay Vicuron under this Agreement; provided, however, that any such offset shall not exceed ***** percent (*****%) of such payments otherwise due to Vicuron in each calendar quarter under this Agreement and, and further provided that any portion of
the Offset Amount that is not offset in a particular calendar quarter may be carried forward for offset in subsequent calendar quarters. 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

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 (b) Notwithstanding Section 7.8(a), if Oscient pays the royalty to Former Partner pursuant to
Section 11.4 then Oscient may offset ***** percent (*****%) of the amount of such royalties payable by Oscient to Former Partner (“Former Partner Offset Amount”) against amounts Oscient is obligated to pay Vicuron under this
Agreement; provided, however, that any such offset shall not exceed ***** percent (*****%) of the Net Sales, and further provided that any portion of the Former Partner Offset Amount that is not offset in a particular calendar quarter may be carried
forward for offset in subsequent calendar quarters. 
 ARTICLE 8 
 CONFIDENTIALITY 
 8.1 Confidentiality; Exceptions. Except to the extent
expressly authorized by this Agreement or otherwise agreed in writing, Vicuron and its Affiliates agree that they shall keep confidential and shall not publish or otherwise disclose or use for any purpose other than as provided for in this Agreement
any Vicuron Know-how and Materials or other Assigned Property, and any other information and materials furnished to it by Oscient or its Affiliates or designees pursuant to this Agreement, or any provisions of this Agreement that are the subject of
an effective order of the Securities Exchange Commission granting confidential treatment pursuant to the Securities Act of 1934, as amended (collectively, “Confidential Information”), except to the extent that it can be established by
Vicuron or its Affiliates that Confidential Information furnished to it by Oscient or its Affiliates or designees under this Agreement: 
 (a) was already known to Vicuron or its Affiliates, other than under an obligation of confidentiality, at the time of disclosure by Vicuron or its Affiliates; 
 (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to Vicuron or its Affiliates;

 (c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any
act or omission of Vicuron or its Affiliates in breach of this Agreement; or 
 (d) was disclosed to Vicuron or its Affiliates, other
than under an obligation of confidentiality, by a Third Party who had no obligation to Oscient not to disclose such information to others. 
 Notwithstanding
any other provisions of this Article 8 in this Agreement, the License and Supply Agreement, or any other written agreement between the Parties regarding confidentiality, the Assigned Property, including Vicuron Know-how and Materials, Regulatory
Filings, and Vicuron Regulatory Approvals shall be Confidential Information of Oscient. 
 8.2 Authorized Disclosure. Vicuron or its
Affiliates may disclose Confidential Information hereunder to the extent such disclosure is reasonably necessary in filing or prosecuting patent applications, prosecuting or defending litigation, complying with applicable governmental regulations or
conducting preclinical or clinical trials, provided that if Vicuron or its Affiliates are required by law or regulation to make any such disclosure of Oscient’s Confidential Information it will, except where impracticable for necessary
disclosures (for example in the event of medical emergency), give reasonable advance notice to Oscient of such disclosure requirement and, except to the extent inappropriate in the case of patent applications, will cooperate with Oscient at its
request and sole expense in Oscient’s efforts to preserve the confidentiality of such information. In addition, Vicuron shall be entitled to disclose, under a binder of confidentiality containing provisions as protective as those of this
Article 8, Confidential Information to any Third Party for the purpose of carrying out activities authorized under this Agreement, including disclosures to licensees. 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 10 

 8.3 Confidentiality of Agreement. The Parties shall agree upon and issue a press release or other
public announcement concerning this Agreement to be released as promptly as practicable after execution hereof. Otherwise, and except for references to, or republication of, such press release, the Parties shall keep the terms and conditions of this
Agreement confidential, and no public statements concerning the existence or terms of this Agreement shall be made or released in any medium without the prior approval of both Parties. Notwithstanding the above, the Parties each acknowledge that the
other Party is a reporting company under the Securities Exchange Act of 1934 and that, as such, each Party may make any public disclosures or releases regarding the execution, delivery, performance or terms of this Agreement that it determines, in
its sole reasonable discretion, are necessary or appropriate in light of its status as a public reporting company. 
 This Article 8 shall
survive termination or expiration of this Agreement for a period of five (5) years thereafter. 
 ARTICLE 9 
 OWNERSHIP; PATENTS AND TRADEMARKS 
 9.1 Assigned Property. On and after the Effective Date, Oscient shall have the sole and exclusive rights, title, and interest in and to the Assigned Property and, subject to Section 9.3, shall have sole discretion,
authority and responsibility in all matters relating to the Assigned Property and all uses thereof by Oscient, its Affiliates and Third Parties. 
 9.2 Transfer of Original Files. Vicuron shall deliver to Oscient or Oscient’s designee Vicuron’s original files or scanned electronic images of Vicuron’s originals relating to each of the Assigned Patents, Global
Trademarks, and Global Trade Names no later than ***** days after the Effective Date. Vicuron may retain a copy of such files for its records and maintain such copy pursuant to Article 8. 
 9.3 Patent Filings. Upon and after the Effective Date, Oscient shall have the sole right and authority, and Vicuron shall have no rights or
(except as provided in this Agreement) responsibilities, for preparing, filing, obtaining, prosecuting (including any interferences, reissue proceedings and re-examinations) and maintaining throughout the world the Assigned Patents at its own
expense, or for having such actions performed by Oscient’s designee; provided, however, that Vicuron shall be responsible, and Oscient shall have no responsibility, for paying any and all such fees and costs that are or remain due or payable as
of or after the Effective Date and that relate to the preparation, filing, obtaining, prosecuting or maintaining of Assigned Patents, or were otherwise incurred, prior to the Effective Date. Other than within the ordinary course of prosecution
(e.g., abandonment of a pending application in favor of a continuation application), if Oscient elects not to continue the prosecution or maintenance of an Assigned Patent in a particular country, Oscient shall so notify Vicuron promptly in writing
and in good time to enable Vicuron to meet any deadlines by which an action must be taken to preserve any such rights in such Assigned Patent in such country. Upon providing such notification to Vicuron, Oscient shall have no further obligations
with respect to such Assigned Patent in such particular country. Upon receipt of any such notice by Oscient, Vicuron shall have the right, but not the obligation, to support the continued prosecution or maintenance of such Assigned Patent, at
Vicuron’s expense in such country. If Vicuron exercises its right to support such continued prosecution or maintenance of such Assigned Patent, Oscient will assign all of its rights, title, and interests in such Assigned Patent to Vicuron for
no additional consideration and will have no further rights or responsibilities with respect to such Assigned Patent. 
 9.4 Enforcement
Rights. Oscient or its designee shall have the sole and exclusive right, but not the obligation, to enforce and defend the Assigned Patents and other Assigned Property, including, without limitation, the right to initiate, prosecute, control
and/or settle, and to defend against, any action, proceeding or claim of infringement or misappropriation involving or relating to the Assigned Patents and other Assigned Property. At Oscient’s reasonable request, Vicuron agrees to give Oscient
reasonable assistance in any such action, proceeding or claim at Oscient’s expense including, without limitation, to be joined as a party if necessary for the sole purpose of standing. 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment
request. 
  

 11 

 9.5 Global Trademarks and Global Trade Names. Upon and after the Effective Date, all Global
Trademarks and Global Trade Names, with the exception of the Excluded Trademarks, shall be the exclusive property of Oscient and Oscient shall have sole right and authority for registering, maintaining and enforcing throughout the world the Global
Trademarks and Global Tradenames (or to designate a representative to perform such actions) at its own expense and in its sole discretion, and Vicuron shall have no such rights or responsibilities. 
 9.6 Further Assistance. At the reasonable request of Oscient or its designee, Vicuron and its Affiliates agree to render all reasonable assistance
and execute and do or cause to be executed and done all such documents, acts and things as may from time to time be necessary for Oscient or its designee to prosecute or perfect title in the Assigned Patents, Global Trademarks, and Global Tradenames
in the Territory. 
 ARTICLE 10 
 TERM AND TERMINATION 
 10.1 Term. Except as otherwise provided herein, the term of this
Agreement shall commence on the Effective Date and, unless earlier terminated as provided in this Agreement, shall expire on a country by country basis ten (10) years after first commercial sale of a Product by Oscient in such country within
the Territory. Upon termination of this Agreement pursuant to this Section 10.1, Oscient shall retain exclusive rights, title and interest in and to all Assigned Property that it owns as of the date of termination and may thereafter continue to
sell Products in the Territory on a royalty-free basis. 
 10.2 Breach. In the event of a breach of this Agreement, subject to
resolution of any dispute resolution proceedings brought under Section 13.2, the non-breaching Party may pursue remedies for damages or other relief available to it in law or equity. 
 10.3 Accrued Rights, Surviving Obligations. Termination of this Agreement shall not affect any accrued rights and remedies of either Party.
Additionally, the terms of Articles 8 (“Confidentiality”), 11 (“Representations and Warranties”), 12 (“Indemnification”) and 13 (“Miscellaneous”), as well as Section 10.3 (Accrued Rights) of this
Agreement shall survive any termination or expiration of this Agreement. In addition, Section 3.4 (“License”) of this Agreement shall survive any termination or expiration of this Agreement unless the Agreement is terminated by
Vicuron for Oscient’s breach pursuant to Section 10.2 
 ARTICLE 11 
 REPRESENTATIONS AND WARRANTIES 
 11.1 Mutual Representations and Warranties.
Each Party hereby represents and warrants: 
 (a) Corporate Power. Such Party is duly organized and validly existing under the laws
of the state or country of its incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof. 
 (b) Due Authorization. Such Party is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder. 
  

 12 

 (c) Binding Agreement. This Agreement is a legal and valid obligation binding upon it and
enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by such Party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a Party or by which it may be bound,
nor violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. Such Party has not, and during the term of the Agreement will not, grant any right to any Third Party with respect to
its Patents or Know-how that would conflict with the rights granted to the other Party hereunder. 
 11.2 Other Representations by
Vicuron. Vicuron further represents and warrants to Oscient that: 
 (a) As of the Effective Date, Vicuron has the full right,
power and authority to sell, transfer, and assign all of its right, title and interest in the Assigned Property sold, transferred, and assigned or to be sold, transferred, and assigned to Oscient under this Agreement; 
 (b) Up until the transfer of the Assigned Property under Section 3.1, Vicuron is and has been the sole and exclusive owner, and in full
possession and Control, of the Vicuron Patents (except for the Joint Patents and *****), Vicuron Know-how and Materials, Global Trademarks, Global Tradenames and the other Assigned Property; 
 (c) As of the Effective Date, except for *****, no Third Party has any right, title or interest in or to any of the Assigned Property or any
Product, no portion of the Assigned Property is subject to or the subject of any agreement with any Third Party, including any government or governmental agency, the Assigned Property does not include or incorporate any Third Party technology, and
the Assigned Property is free and clear of any liens, charges or encumbrances; 
 (d) As of the Effective Date, (i) Schedule
3.1(a) constitutes the complete list of all Patents that cover or are used in the manufacture of Bulk Compound or the discovery, evaluation, manufacture, sale, offer for sale, importation, and/or other use of Products or Vicuron Know-how and
Materials, which Patents are owned or Controlled by Vicuron, and (ii) Schedule 3.1(c) constitutes the complete list of Global Trademarks and Global Tradenames; 
 (e) As of the Effective Date there exist (i) no claims, judgments or settlements against or owed by Vicuron relating to or affecting the
Assigned Property, (ii) no pending (or to the best of its knowledge, threatened) written claims or litigation relating to or affecting the Assigned Property, (iii) no interferences or oppositions pending before any court or administrative
office or agency relating to the Vicuron Patents, and (iv) the Vicuron Patents are existing and, to the best of Vicuron’s knowledge, are not invalid or unenforceable, in whole or in part; 
 (f) For each Vicuron Patent (except for the Joint Patents), in all material respects, (i) all necessary application, annuity, maintenance and
renewal fees in connection with all patent and patent applications have been paid, (ii) all necessary documents and certificates in connection therewith have been filed with the relevant authority for the purpose of maintaining the patent
registrations or applications, and (iii) no Vicuron Patent is undergoing cancellation, reexamination, termination or withdrawal proceedings; and 
 (g) As of the Effective Date, (i) Vicuron has not received any notices of infringement or any written communications relating in any way to a possible infringement with respect to the Compound or Products,
and is not aware that the practice of the Vicuron Patents and Vicuron Know-how and Materials as contemplated by this Agreement will involve any infringement or unauthorized use of any intellectual property rights of any Third Party, and (ii) to
the best of Vicuron’s knowledge, no Third Party has infringed any Assigned Property in the Territory. 
 11.3 Covenant by
Vicuron. Vicuron hereby covenants that it shall use commercially reasonable efforts to assist Oscient in obtaining any third party license or other rights which have been granted to Vicuron 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential
treatment request. 
  

 13 

 that will enable Oscient (or its licensees or other designees) to manufacture Bulk Compound, Compound or Product.
Notwithstanding the foregoing, Oscient acknowledges that Vicuron will not make any payments to a third party or act as a guarantor (or a similar role) in order to satisfy its obligations under this Section 11.3. 
 11.4 Covenant by Oscient. In the event that royalties are payable for periods after the Effective Date to Former Partner by Vicuron pursuant to
Section 15.9(c) of the License and Supply Agreement between Former Partner and Biosearch dated May 8, 1998 and the amendment dated June 1, 2001, then Oscient shall assume the full payment of such royalty which shall not exceed *****
percent (*****%) of net sales in as defined in such agreement, subject to Section 7.8(b) of this Agreement. 
 11.5 Disclaimer of
Warranties. The Parties understand that the activities to be undertaken pursuant to this Agreement will involve technologies and products that have not been approved by any regulatory authority and that neither Party guarantees the safety or
usefulness of the Products. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE OTHER PARTY OF ANY NATURE, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF NONINFRINGEMENT,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
 11.6 Limitation. EXCEPT FOR THEIR RESPECTIVE OBLIGATIONS UNDER ARTICLE 12
ARISING OUT OF THIRD PARTY CLAIMS, SUITS OR DEMANDS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY PUNITIVE, SPECIAL, INCIDENTAL, OR INDIRECT DAMAGES UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER. 
 ARTICLE 12 
 INDEMNIFICATION 
 12.1
Indemnification by Vicuron. Vicuron hereby agrees to indemnify, hold harmless and defend Oscient against any and all expenses, costs of defense (including without limitation attorneys’ fees, witness fees, damages, judgments, fines and
amounts paid in settlement) and any amounts Oscient becomes legally obligated to pay because of any Third Party claim or claims against it to the extent that such claim or claims result from (i) Vicuron’s negligence, recklessness or
willful misconduct; (ii) Vicuron’s breach or alleged breach of any representation or warranty by Vicuron or of any other provision of this Agreement; (iii) any claims of breach of the agreement dated May 8, 1998 between Biosearch
and Former Partner which may be brought against Oscient; (iv) any claims from Third Parties, consultants, employees and contractors concerning Development activities prior to the effective date of the License and Supply Agreement, whether
conducted on behalf of Vicuron, Former Partner or any other Third Party; or (v) the possession, manufacture, use, handling, storage, sale or other disposition of Bulk Compound or of products containing the Compound, or other Development or
Commercialization activities, by Vicuron, predecessors, agents or licensees or sublicensees (other than Oscient) before the Effective Date; except to the extent such claim or claims arise from the negligence, recklessness or willful misconduct of
Oscient or any breach of any representation or warranty of Oscient made pursuant to Section 11; provided that Oscient provides Vicuron with prompt notice of any such claim and the exclusive ability to defend (with the reasonable cooperation of
Oscient) and settle any such claim. Any liability of Vicuron shall in no event extend to consequential damages. 
 12.2 Indemnification by
Oscient. Oscient hereby agrees to indemnify, hold harmless and defend Vicuron against any and all expenses, costs of defense (including without limitation attorneys’ fees, witness fees, damages, judgments, fines and amounts paid in
settlement) and any amounts Vicuron becomes legally obligated to pay because of any Third Party claim or claims against it to the extent that such claim or claims arise out of (i) Oscient’s or its Affiliates’ negligence, recklessness
or willful misconduct; (ii) Oscient’s or its Affiliates’ breach or 

 *
Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 14 

 alleged breach of any representation or warranty by Oscient or of any other provision of this Agreement; or
(iii) the possession, final manufacture, use, sale or administration of Products by Oscient or its Affiliates or licensees; except to the extent such claim or claims arise from the negligence, recklessness or willful misconduct of Vicuron, its
Affiliates, or its predecessors or any breach of any representation or warranty of Vicuron made pursuant to Section 11; provided that Vicuron provides Oscient with prompt notice of any such claim and the exclusive ability to defend (with the
reasonable cooperation of Vicuron) or settle any such claim, and provided further that such indemnities shall not apply to losses resulting from Vicuron matters covered under Section 12.1 above. Any liability of Oscient shall in no event extend
to consequential damages. 
 12.3 Mechanics. In the event that the parties cannot agree as to the application of Sections 12.1 and
12.2 above to any particular loss or claim, the parties may conduct separate defenses of such claim. Each Party further reserves the right to claim indemnity from the other in accordance with Sections 12.1 and 12.2 above upon resolution of the
underlying claim, notwithstanding the provisions of Sections 12.1 and 12.2 above requiring the indemnified Party to tender to the indemnifying Party the exclusive ability to defend such claim or suit. 
 ARTICLE 13 
 MISCELLANEOUS

 13.1 Assignment. Neither Party shall assign this Agreement or any of its rights or obligations under this Agreement to any
other entity without the prior written consent of the other Party, and any assignment in contravention of the foregoing shall be null and void; provided, however, that either Party may assign this Agreement to any Affiliate or to any successor
pursuant to a merger, reorganization, consolidation or sale of all or substantially all of the Assigned Property. This Agreement shall be binding upon, and shall inure to the benefit of, the legal successors and permitted assigns of the Parties.

 13.2 Dispute Resolution. 
 (a) The Parties recognize that disputes as to certain matters may from time to time arise during the term of this Agreement which relate to either Party’s rights and/or obligations hereunder or thereunder. It is the objective of
the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation. To accomplish this objective, the Parties agree to follow the procedures set forth in this
Section 13.2 if and when a dispute arises under this Agreement. 
 Unless otherwise specifically recited in this Agreement, disputes
among the Parties will be resolved by reference first to their respective executive officers designated below or their successors, for attempted resolution by good faith negotiations within fourteen (14) days after such notice is received. Said
designated officers are as follows: 
  

			
	For Oscient:	 	Chief Executive Officer or designee
		
	For Vicuron:	 	Jeffrey A. Meckler

 In the event the designated executive officers are not able to resolve such dispute, either Party
may at anytime after the fourteen (14) day period seek to resolve the dispute through the means provided in Section 13.2(b). 
 (b) Any claim or controversy arising out of or related to this Agreement or any breach hereof that is not resolved by the designated officers as provided in this Agreement shall be resolved solely and exclusively by 
  

 15 

 final and binding arbitration (i) if started by Vicuron, in Boston, MA by a panel of three arbitrators appointed and
acting according to the then existing rules of the JAMS/Endispute; and (ii) if started by Oscient, in New York, NY by a panel of three arbitrators appointed and acting according to the then existing rules of JAMS/Endispute. The arbitrator(s)
selected shall have significant experience in the biotechnology or pharmaceutical industry, and shall apply the rules of law. Any arbitration proceeding conducted pursuant to this Section 13.2(b) shall be conducted in the English language. Any
award made by such arbitrator(s) shall be final and binding upon the parties and a judgment of a court having jurisdiction may be entered on such award. Notwithstanding the foregoing, disputes regarding the validity, scope or enforceability of
patents shall be submitted to a court of competent jurisdiction in the country where such patent has issued. 
 13.3 Force Majeure.
Same as provided in Section 13.2 above, neither Party shall lose any rights hereunder or be liable to the other Party for damages or losses on account of failure of performance by the defaulting Party if the failure is occasioned by
government action, war, fire, explosion, flood, strike, lockout, earthquake, embargo, act of God, or any other similar cause beyond the control of the defaulting Party, provided that the Party claiming Force Majeure has exerted all reasonable
efforts to avoid or remedy such Force Majeure. 
 13.4 Compliance with Law. Each Party hereto shall comply with all applicable laws,
rules, ordinances, guidelines, consent decrees and regulations of any applicable federal, state or other governmental authority. 
 13.5
Export Law Compliance. Oscient understands and recognizes that the Product and other materials made available to it hereunder may be subject to the export administration regulations of the United States Department of Commerce and other United
States government regulations related to the export of chemical compounds and medical devices. 
 13.6 Governing Law. This Agreement
shall be governed by and construed according to the laws of the State of New York, USA. 
 13.7 Entire Agreement. Except as set forth
herein, this Agreement, including all Exhibits attached hereto, and all documents delivered concurrently herewith, set forth all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties
hereto and supersede and terminate all prior agreements and understanding between the Parties. No subsequent alteration, amendment, change or addition to this Agreement, shall be binding upon the Parties hereto unless reduced to writing and signed
by the respective authorized officers of the Parties. 
 13.8 Relationship of the Parties. Nothing hereunder shall be deemed to
authorize either Party to act for, represent or bind the other except as expressly provided in this Agreement. 
 13.9 No Third Party
Beneficiaries. Nothing in this Agreement, express or implied, shall create a third party beneficiary relationship or otherwise confer any benefit, entitlement, right or remedy upon any person or entity other than the parties hereto. 

13.10 Notices. All notices hereunder shall be in writing and shall be deemed given if delivered personally or by facsimile transmission
(receipt verified), telexed, mailed by registered or certified mail (return receipt requested), postage prepaid, or sent by express courier service, to the Parties at the following addresses (or at such other address for a Party as shall be
specified by like notice; provided, that notices of a change of address shall be effective only upon receipt thereof. 
  

 16 

					
	If to Pfizer,	 		 	
	addressed to:	 	Vicuron Pharmaceuticals Inc.	 	
		 	c/o Pfizer Inc	 	
		 	235 East 42nd Street	 	
		 	New York, NY 10017	 	
		 	Attention:	 	Jeffrey A. Meckler
		 	Telephone:	 	212 733-1945
		 	Telecopy:	 	212 716-9151
			
		 	With a copy to:	 	Jeffrey Kindler, Esq.
		 		 	Vice Chairman and General Counsel
		 	Telecopy:	 	212 808-8924
			
	 If to Oscient,
 addressed to:
	 	

Oscient Pharmaceuticals Corporation	 	
		 	1000 Winter Street, Suite 2200	 	
		 	Waltham, MA 02451	 	
		 	Attention:	 	Legal Department
		 	Telephone:	 	781-398-2300
		 	Telecopy:	 	781-398-2530

 13.11 Waiver. Except as specifically provided for herein, the waiver from time to time by
either of the Parties of any of their rights or their failure to exercise any remedy shall not operate or be construed as a continuing waiver of same or of any other of such Party’s rights or remedies provided in this Agreement. 
 13.12 Severability. If any term, covenant or condition of this Agreement or the application thereof to any Party or circumstance shall, to any
extent, be held to be invalid or unenforceable, then (i) the remainder of this Agreement, or the application of such term, covenant or condition to Parties or circumstances other than those as to which it is held invalid or unenforceable, shall
not be affected thereby and each term, covenant or condition of this Agreement shall be valid and be enforced to the fullest extent permitted by law; and (ii) the Parties hereto covenant and agree to renegotiate any such term, covenant or
application thereof in good faith in order to provide a reasonably acceptable alternative to the term, covenant or condition of this Agreement or the application thereof that is invalid or unenforceable, it being the intent of the Parties that the
basic purposes of this Agreement are to be effectuated. 
 13.13 Official Language. The official text of this Agreement and any
appendices, exhibits and schedules hereto, or any notice given or accounts or statements required by this Agreement shall be in English. In the event of any dispute concerning the construction or meaning of this Agreement, reference shall be made
only to this Agreement as written in English and not to any other translation into any other language. 
 13.14 Headings. The Section
and paragraph headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said sections or paragraphs. 
 13.15 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 17 

 IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals by their
proper officers as of the Effective Date. 
  

							
	OSCIENT PHARMACEUTICALS CORPORATION	 	VICURON PHARMACEUTICALS, INC.
				
	By:	 	 /s/ Steven M. Rauscher
	 	By:	 	 /s/ Peter L. Garrambone, Jr.

		 	Steven M. Rauscher	 		 	Peter L. Garrambone, Jr.
	Title:	 	President & Chief Executive Officer	 	Title:	 	President

  

 18 

 Exhibit I 
 Bulk Compound Specifications 
  

					
	 Test
	 	 Specification
	 	 Test Method

	 Appearance
	 	 *****
	 	 *****

	 Identification
	 	 *****
	 	 *****

	 pH of water solution
	 	 *****
	 	 *****

	 Clarity of solution
	 	 *****
	 	 *****

	 Sulphated ash
	 	 *****
	 	 *****

	 Heavy metals
	 	 *****
	 	 *****

	 Chloride ion
	 	 *****
	 	 *****

	 Water (KF)
	 	 *****
	 	 *****

	 Residual solvents:
	 	 *****
	 	
	 acetone
	 	 *****
	 	
	 methanol
	 	 *****
	 	
	 Microbiological assay
	 	 *****
	 	 *****

	 HPLC assay
	 	 *****
	 	 *****

	 UV assay
	 	 *****
	 	 *****

 * Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 Exhibit II 
 A S S I G N M E N T 
 For valuable consideration, the receipt and adequacy of which is hereby acknowledged,
VICURON PHARMACEUTICALS INC. a corporation organized and existing under the laws of the State of Delaware, United States of America, and having a place of business at 455 South Gulph Road, King of Prussia, Pennsylvania, United States
of America, hereby sells, assigns and transfers unto OSCIENT PHARMACEUTICALS CORPORATION a corporation organized and existing under the laws of the Commonwealth of Massachusetts, United States of America, and having a place of business
at 1000 Winter Street, Suite 2200, Waltham, Massachusetts, United States of America, its entire right, title and interest in the United States of America, in and to all inventions, whether joint or sole, disclosed in the following patent
applications of the United States of America: 
 ***** 
 and to all Letters patent granted in the United States of America on the foregoing applications; and in all related patent applications including, divisions, reissues, substitutions, continuations,
continuations-in-part, re-examination applications and extensions thereof and all foreign counterpart patents and patent applications filed under the Paris Convention for the Protection of Industrial Property, in all countries of the world
including, but not limited to, the patents and patent applications listed in the attached Schedule A and all priority rights thereof that are or may be predicated upon or arise from said assigned patents and patent applications. 

Signed and witnessed this      day of
                    , 2006, at
                    . 
 ________________________________________________________________________ 
 _________________________________________ 
 Title 
 In
the presence of: 
 _________________________________________ 
 _________________________________________ 
 (Typed or Printed Name of Witness) 

 * Confidential information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a
confidential treatment request. 
  

 1 

 SCHEDULE A – VICURON PATENTS 
  

									
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

 * Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 2 

 Exhibit III 
 Trademark Assignment 
 ASSIGNMENT OF UNITED STATES AND FOREIGN 
 TRADEMARKS AND APPLICATIONS 
 WHEREAS,
Vicuron Pharmaceuticals, Inc., a corporation organized under the laws of Delaware, located and doing business at 455 South Gulph Road, Suite 305, King of Prussia, Pennsylvania, 19406, (hereinafter “Assignor”) is the owner of the trademarks
and trademark applications and registrations in the United States and in other countries identified in the table below (hereinafter “Trademarks and Applications”); 
 WHEREAS, Oscient Pharmaceuticals Corporation, a corporation organized under the laws of the Commonwealth of Massachusetts, located and doing business at
1000 Winter Street, Suite 2200, Waltham, Massachusetts, 02451, (hereinafter “Assignee”), desires to acquire the entire right, title, and interest in and to the Trademarks and Applications, together with the portion of the business to which
the marks pertain and the goodwill of the business connected with the trademarks identified in the table below; and 
 NOW, THEREFORE, for
good and valuable consideration, the receipt of which is hereby acknowledged, Assignor hereby sells, assigns, transfers and sets over to the Assignee, the entire right, title, interest in and to the Trademarks and Applications, together with the
portion of the ongoing and existing business to which the pending marks pertain, and the goodwill of the business connected with the trademarks identified in the table below, the same to be held and enjoyed by Assignee, its successors, assigns and
other legal representatives. 
 Assignor further assigns to Assignee all rights to sue for and receive all damages accruing from past
infringements of the trademarks herein assigned. 
 Assignee hereby accepts the transfer of rights, title and interest in and to the
Trademarks and Applications identified in the table below from Assignor as herein described and defined. 
  

									
	 Mark
	 	 Country
	 	 Filing Date
	 	 Serial No.
	 	 Status

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

 1 

 This Assignment shall be binding upon the parties, their successors and/or assigns and all others acting
by, through, with or under their direction, and all those in privity therewith. 
  

			
	VICURON PHARMACEUTICALS, INC.
		
	By	 	  

		
	Name	 	  

		
	Title	 	  

		
	Date	 	  

	
	OSCIENT PHARMACEUTICALS CORPORATION
		
	By	 	  

		
	Name	 	  

		
	Title	 	  

		
	Date	 	  

  

 2 

 Schedule 1.7 
 Derivative Patents 
  

									
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

 * Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 Schedule 1.9 
 Excluded Trademarks 
 Any and all rights to the name ERAXIS worldwide are excluded,
including the following applications: 
  

									
	 Mark
	 	 Country
	 	 Filing Date
	 	 Serial No.
	 	 Status

	 Eraxis
	 	US	 	4/3/2003	 	78/233,491	 	 Allowed
 – Intent to use

	 Eraxis
	 	CTM	 	4/4/2003	 	003121258	 	 Pending
 – Published

 SCHEDULE 3.1(a) – VICURON PATENTS 
  

									
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

	
	 *****

	 Country
	 	 Application No.
	 	 Filing Date
 (date of entry)
	 	 Grant No.
	 	 Grant Date

	 *****
	 	 *****
	 	 *****
	 	 *****
	 	 *****

 * Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request. 
  

 1 

 Schedule 3.1(c) 
 Global Trademarks and Global Tradenames 
  

									
	 Mark
	 	 Country
	 	 Filing Date
	 	 Serial No.
	 	 Status

	 *****
	 	*****	 	*****	 	*****	 	*****

 * Confidential information has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a confidential treatment request.Promissory Note

 EXHIBIT 10.3 
 PROMISSORY NOTE 
  

			
	 $4,400,000.00
	  	October 25, 2000
		  	Cary, North Carolina
		  	GELAAC Loan No. 3982

  

	1.	Promise to Pay. 

 FOR VALUE RECEIVED, the
undersigned, K-5 ASSOCIATES, LLC, a North Carolina limited liability company (“Borrower”), promises to pay in lawful money of the United States of America to the order of GE LIFE AND ANNUITY ASSURANCE COMPANY, a Virginia corporation
(“Lender”), at P.O. Box 490, Seattle, Washington 98111-0490, ATTN: Real Estate Department, or such other place either within or without the State of Washington as Lender may designate in writing from time to time, the principal sum of Four
Million Four Hundred Thousand and No/100 Dollars ($4,400,000.00), with interest from the date hereof on the unpaid principal balance at the rate set forth below. 
  

	2.	Interest. 

 Interest shall accrue on the unpaid
principal balance at a rate from the date hereof to the Maturity Date at Seven and Eighty-Five Hundreths Percent (7.85%) per annum. 
  

	3.	Payments and Term. 

 Principal and interest shall be
due and payable as follows: 
  

	 	(a)	A payment of all interest to accrue hereon from the Disbursement Date to and including the last day of the month during which the Disbursement Date occurs shall be due and payable
on the Disbursement Date. For purposes hereof, the “Disbursement Date” shall be the date on which disbursement of loan proceeds occurs. 

  

	 	(b)	Monthly payments of principal and interest in the sum of Forty-One Thousand Six Hundred Sixty-Nine and No/100 Dollars ($41,669.00) each shall be due and payable on the first day of
each calendar month, commencing on the first day of the second calendar month following the Disbursement Date and continuing on the first day of each calendar month thereafter to and including October 1, 2015. These monthly payments are based
upon the Fifteen (15) year amortization period beginning on November 1, 2000. 

  

	 	(c)	The entire indebtedness evidenced by this Note, if not sooner paid, shall be due and payable on October 31, 2015, the Maturity Date. 

 All payments on account of the indebtedness evidenced by this Note shall be first applied to interest, costs and prepayment fees (if any) and then to
principal. Interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months, except that interest for a 

 
portion of a month (such as may be required under paragraph 3 (a) above) shall be computed on the basis of a 365-day year (or a 366-day year during a
leap year). For purposes of this Note, the term “Loan Year” means each successive period of twelve (12) months, with the first such period beginning on November 1, 2000. 
  

	4.	Prepayment. 

 This Note may be prepaid in full or in
part, upon giving the holder of this Note (“Holder”) thirty (30) days prior written notice, by paying, in addition to the principal amount (and if prepaid in full, accrued interest and all other sums due under the terms hereof) a
prepayment fee (“Prepayment Fee”), equal to the present value of the series of Payment Differentials from the prepayment date to the Maturity Date discounted using the Discount Factor and the Number of Payments or Periods (monthly
compounding) calculated as follows: 
  

	 	(a)	If the interest rate of this Note under paragraph 2 above (“Interest Rate”) is less than the “Ask Yield” of the non-callable United States Government Treasury
Note with a maturity closest to the mid-point between the fifth business day preceding the prepayment date and the Maturity Date as published in The Wall Street Journal on the fifth (5th) business day preceding the prepayment date (the
“Treasury Yield”) (and if more than one such issue, then the issue with the coupon rate closest to the interest rate then in effect on this Note) plus one-half of one percent (0.50%) (the “Reinvestment Yield”), the Prepayment Fee
will be one percent (1%) of the amount of principal prepaid. 

  

	 	(b)	If the Interest Rate equals or exceeds the Reinvestment Yield, the Prepayment Fee will be the greater of: 

  

	 	(i)	One percent (1%) of the amount of principal prepaid, OR 

  

	 	(ii)	The present value of the series of Payment Differentials from the prepayment date to the Maturity Date. The present value will be calculated by the Holder using a financial
calculator or present value tables selected by the Holder and the (i) Discount Factor, (ii) Number of Payments or Periods, and (iii) Payment Differential, as said terms are hereinafter defined: 

  

	 	a)	The Discount Factor is equal to one-twelfth of the Reinvestment Yield. 

  

	 	b)	The Number of Payments or Periods is equal to the number of months left to the Maturity Date (rounded up to the nearest whole number). 

  

	 	c)	The Payment Differential is the difference between the monthly payment which amortizes the principal prepaid to zero over the Number of Payments or Periods, calculated,
first, at the Interest Rate (if this Note is prepaid in full this is the monthly payment stated in this Note) and, second, at the Reinvestment Yield. 

  

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 No Prepayment Fee shall be due if this Note is prepaid during the sixty (60) days prior to the
Maturity Date. Any partial prepayment shall be applied upon payments due hereon in the inverse order of their respective due dates. 
 If the
publication The Wall Street Journal is discontinued or publication of the yield of United States Treasury notes in The Wall Street Journal is discontinued, Holder shall, in its sole discretion, designate some other daily financial or
governmental publication of national circulation. 
 Any and all prepayments of the principal amount of this Note, whether voluntary or
involuntary, shall be subject to the terms of this provision 4, and include receipt by the Lender of all or a part of the principal balance and the outstanding interest due pursuant to this Note prior to the date when same is due, irrespective of
the source of such payment and irrespective of whether same was paid by the Borrower “voluntarily” or “involuntarily”. Without limiting the generality of the foregoing, prepayment shall include such payments from the Borrower,
irrespective of whether before or after default, acceleration of the entire principal balance by virtue of default, and any payment of the principal balance and outstanding interest after the institution of foreclosure proceedings and upon sale in
foreclosure. 
 In the event that such prepayment of the principal amount of this Note is tendered, whether as a result of foreclosure
proceedings or otherwise, then Borrower shall pay Lender in full at any time during the term of this Note, the applicable Prepayment Fee referred to above. 
 Borrower acknowledges that the Prepayment Fees set forth above have been agreed upon by Borrower in order to provide Lender with partial compensation for the cost of reinvesting the proceeds of this subject loan
transaction and for the loss of the contracted return on the subject loan. Borrower acknowledges that said Prepayment Fee is reasonable and is not a penalty. 
  

	5.	Restrictions on Transfer and Encumbrance. 

 Borrower
and Lender acknowledge and agree that the Deed of Trust referred to in paragraph 9 below contains the following paragraphs 4.1 and 4.2: 
  

	 	4.1	Restrictions on Transfer or Encumbrance of the Property. 

  

	 	(a)	A “Transfer” is: any sale (by contract or otherwise), encumbrance, conveyance or other transfer of all or any interest in the Property, or any change in the ownership of
any stock interest in a corporate Trustor, in the ownership of any membership interest or in the manager of a limited liability company Trustor, in the ownership of any general partnership interest in any general or limited partnership Trustor, or
in the ownership of any beneficial interest in any other Trustor which is not a natural person or persons (including without limitation a trust); or any change in the ownership of any stock, membership, general partnership or other beneficial
interest in any corporation, limited liability company, partnership, trust or other entity, organization or association directly or indirectly owning an interest in Trustor, or a change in the manager of a limited liability company. A change in the
ownership of a limited partnership interest in a limited partnership shall not be deemed a “Transfer.” 

  

 - 3 - 

	 	(b)	In the event of a Transfer without Beneficiary’s prior written consent, Beneficiary may at its sole option declare the Transfer an event of default under this Deed of Trust and
invoke any remedy or remedies provided for in paragraph 8.1 hereof, or may at its sole option consent to such Transfer. Beneficiary may condition its consent to a Transfer upon the payment of a fee to Beneficiary, or an increase in the rate of
interest due under the Note, or the items in paragraph 4.1(d) below, or any combination of the foregoing. Neither of the foregoing options shall apply, however, in the case of a Transfer under any will, trust or applicable law of descent arising
because of the death of an individual so long as Beneficiary is given prompt notice of the Transfer and the transferee. Beneficiary’s consent to a Transfer or its waiver of an event of default by reason of a Transfer shall not constitute a
consent or waiver of any right, remedy or power accruing to Beneficiary by reason of any subsequent Transfer. 

  

	 	(c)	Beneficiary will give its written consent to Transfers of interests in Trustor or of interests in an entity with an ownership interest in Trustor to the existing owners of the
Trustor as of the date of this Deed of Trust, to the transferor’s spouse or lineal descendants or to an estate planning trust whose trustees and beneficiaries are the transferor or the transferor’s spouse or lineal descendants, or to a
trust, corporation, partnership or limited liability company composed of such persons or subentitites composed by such persons so long as one or all of Robert S. Kadis, Harold L. Kadis, Daniel S. Kadis and Jonathon C. Kadis hold, directly or
indirectly, a controlling interest and manage the owner of the Property, if Trustor gives Beneficiary prior written notice accompanied by copies of the proposed Transfer documents and a $1,000.00 transfer review fee. 

  

	 	(d)	For any Transfer permitted under this Deed of Trust or requested by Trustor, Beneficiary may condition its consent upon: the Property having been and assurances that it shall
continue to be well maintained and managed in a manner reasonably satisfactory to Beneficiary; Beneficiary’s reasonable approval of the Transfer terms, documents and background materials; there being no uncured event of default under this Deed
of Trust; Trustor furnishing an endorsement to Beneficiary’s title insurance policy insuring the continued validity and priority of the lien of this Deed of Trust following the Transfer and such subordination agreements and other documents as
may be required by Beneficiary or its title company to issue the endorsement. Unless Beneficiary in its sole discretion otherwise agrees in writing at that time, no Transfer shall release the transferor from any liability under the Loan Documents or
the environmental Indemnity. By accepting a Transfer, the transferee assumes any and all liability of the transferor under the Loan Documents and the environmental Indemnity to the extent the transferor has any personal liability. At
Beneficiary’s request, the parties shall execute agreements, guaranties and indemnities in form and substance acceptable to Beneficiary. Regardless whether Beneficiary consents to a Transfer request, Trustor agrees to pay all of
Beneficiary’s out-of-pocket expenses incurred in connection with any Transfer request, including without limitation title fees and attorneys’ fees and costs, and Beneficiary may condition its willingness to consider a Transfer request upon
a deposit to pay for Beneficiary’s expenses. 

  

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	 	4.2	Loan Assumption Provision. Notwithstanding any provision of this Deed of Trust to the contrary, Beneficiary will consent to one sale of the Property and assumption by the
purchaser of the indebtedness secured hereby, provided that: 

  

	 	(a)	Trustor is not then in default under this Deed of Trust; 

  

	 	(b)	The purchaser of the Property, the financial statements, financial strength, tax returns and credit history of the purchaser, the sale agreement and related documents, and all
aspects of the sale are completely satisfactory to Beneficiary; 

  

	 	(c)	The purchaser evidences a history of property management satisfactory to Beneficiary or contracts for management of the Property with a property management firm satisfactory to
Beneficiary; 

  

	 	(d)	If the amount then due on the Note exceeds seventy-five percent (75%) of the sale price of the Property, the balance due on the Note, at the Beneficiary’s election, must
be reduced, by payment thereon, to an amount which does not exceed seventy-five percent (75%) of the sale price; 

  

	 	(e)	Beneficiary receives in cash an assumption fee of the greater of Five Thousand and No/100 Dollars ($5,000.00) or One Percent (1.00%) of the outstanding loan balance at the time
of the assumption, plus its legal and administrative expenses, incurred in connection with such sale and assumption; 

  

	 	(f)	Trustor furnishes to Beneficiary, at Trustor’s expense, an endorsement to Beneficiary’s title insurance policy insuring the continued validity, enforceability and priority
of the Deed of Trust following the assumption. The form and content of the endorsement shall be satisfactory to Beneficiary. If required by the Beneficiary or the title Insurer, the Trustor shall furnish subordination agreements from tenants of the
Property and other necessary parties in form and substance acceptable to the Beneficiary and the title insurer; 

  

	 	(g)	Unless Beneficiary in its sole discretion otherwise agrees in writing at that time, no such sale or assumption shall release Trustor or any guarantor or other person from liability,
or otherwise affect the liability of Trustor or any such guarantor or other person, for payment of the indebtedness secured hereby; 

  

	 	(h)	In the event the Loan was made with a requirement imposed upon the Trustor to complete any specified repairs of the Property, the Trustor shall not be entitled to a consent by
Beneficiary pursuant to the terms of this provision until such repairs have been completed to Beneficiary’s satisfaction; 

  

	 	(i)	The Beneficiary may, at its option, require tax reserves as referred to in paragraph 3.1 of this Deed of Trust, whether or not previously waived conditionally or otherwise, as a
condition to its consent. 

  

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	6.	Default. 

  

	 	(a)	The occurrence of any one or more of the following shall constitute an event of default under this Note: 

  

	 	(i)	Failure to make any payment of principal or interest when due hereon, followed by the failure to make such payment within ten (10) days after written notice thereof given to
Borrower by Lender; provided, however, that Lender shall not be obligated to give Borrower written notice prior to exercising its remedies with respect to such default if Lender had twice previously given Borrower during that calendar year a notice
of default for failure to make a payment of principal or interest hereon. 

  

	 	(ii)	The occurrence of any other event of default under the Deed of Trust referred to in paragraph 9 below. 

  

	 	(b)	Time is of the essence. If an event of default occurs under this Note, 

  

	 	(i)	the entire principal balance hereof and all accrued interest shall, at the option of Lender, without notice, bear interest at a rate from time to time equal to five
(5) percentage points over what would otherwise be the Note rate (or the maximum rate permitted by applicable law if that is less) from the date of the event of default until such event of default is cured and 

  

	 	(ii)	the entire principal balance hereof and all accrued interest shall immediately become due and payable at the option of Lender, without notice. Lender’s failure to exercise any
option hereunder shall not constitute a waiver of the right to exercise the same for any subsequent event of default. 

  

	7.	Late Charges. 

 Borrower acknowledges that, if any
payment under this Note is not made when due, Lender will as a result thereof incur costs not contemplated by this Note, the exact amount of which would be extremely difficult or impracticable to ascertain. Such costs include without limitation
processing and accounting charges. Accordingly, Borrower hereby agrees to pay to Lender with respect to each payment which is not received by Lender within fifteen (15) days after such payment is due under this Note a late charge equal to Four
Percent (4%) of the amount of the payment. Borrower and Lender agree that such late charge represents a fair and reasonable estimate of the costs Lender will incur by reason of such late payment. Acceptance of such late charge by Lender shall
in no event constitute a waiver of the default with respect to the overdue amount, and shall not prevent Lender from exercising any of the other rights and remedies available to Lender. 
  

	8.	Costs and Attorneys’ Fees. 

 If an event of
default occurs under this Note and Lender consults an attorney regarding the enforcement of any of its rights under this Note or the Deed of Trust, or if this Note is placed 

  

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in the hands of an attorney for collection, or if suit be brought to enforce this Note or the Deed of Trust, Borrower promises to pay all costs thereof,
including attorneys’ fees. Said costs and attorneys’ fees shall include, without limitation, costs and attorneys’ fees in any appeal or in a proceeding under any present or future federal bankruptcy act or state receivership.

 9. Fees and Expenses. As used herein, references to reimbursement for fees and expenses shall mean the actual amounts
charged or actual costs incurred, as established by the market or the Lender’s customary practice or procedure, as the case may be, and references to attorneys’ fees shall mean those reasonable fees actually incurred by the Lender based
upon its attorneys’ customary hourly rate multiplied by the amount of time actually spent without regard to any statutory presumption. Section 8.5 of the Deed of Trust referred to below, regarding the application of the proceeds
of any sale under the Deed of Trust, is hereby incorporated herein by this reference. 
  

	10.	Security. 

 This Note is secured by a Deed of Trust,
Assignment of Rents and Leases and Security Agreement (“Deed of Trust”) and a separate Assignment of Rents and Leases (“Assignment”) covering property located in Wake County, North Carolina (“Property”). It is also
secured by an Unconditional Guaranty executed by ROBERT S. KADIS and HAROLD L. KADIS (“Guarantors”) as the joint and several obligation of each. 
  

	11.	Waiver of Presentment, Etc. 

 Borrower hereby waives
presentment and demand for payment, notice of dishonor, protest and notice of protest. 
  

	12.	Limited Recourse Debt. 

 Except as otherwise
provided herein and the Indemnity of the Borrower of even date, the Borrower is hereby released from all personal liability hereunder to the extent such release does not operate to invalidate the lien of the Deed of Trust securing this Note. In the
event of foreclosure of the Deed of Trust or other enforcement of the collection of the indebtedness evidenced by this Note, Lender agrees, and any holder hereof shall be deemed by acceptance hereof to have agreed, not to take a deficiency judgment
against Borrower with respect to said indebtedness except as may be provided as follows in this paragraph. Notwithstanding the foregoing, however, Borrower shall be fully and personally liable to the holder of this Note for: 
  

	 	(i)	All damages suffered by the holder on account of waste to the Property, fraud or willful misrepresentation committed by Borrower; 

  

	 	(ii)	 Any retention of rental income or other income of the Property after an event of default has occurred which remains uncured after any applicable notice and
opportunity to cure, to the extent that any such retention is not applied to the operation of the Property (i.e., capital and operating expenses), and the retention of security deposits or other deposits made by tenants of the Property which
are not paid to tenants when due or 

  

 - 7 - 

	 	 
transferred to Lender or any other party acquiring the Property at a foreclosure sale or any transfer in lieu of foreclosure; 

 

	 	(iii)	Any property taxes or assessments accrued prior to the Lender’s acquisition of title to the Property; 

  

	 	(iv)	The replacement cost of any personal property or fixtures encumbered by the Deed of Trust which are removed or disposed of by Borrower and not replaced as required by the Deed of
Trust and then to the extent of the replacement cost of such personal property or fixtures; 

  

	 	(v)	The misapplication of any proceeds to the full extent of misapplied proceeds under any insurance policies or awards resulting from condemnation or the exercise of the power of
eminent domain or by reason of damage or destruction to any portion of the Property or any building or buildings located thereon; 

  

	 	(vi)	Any loss resulting from Borrower’s failure to maintain hazard or liability insurance as required under the terms of the Deed of Trust. 

  

	 	(vii)	All damages, liabilities, costs and expenses, including attorneys’ fees, incurred by the Lender due to the presence of any hazardous, toxic and dangerous wastes, substances and
materials, including asbestos, on the Property and due to any breach of covenant, breach of warranty or misrepresentation by Borrower under the Deed of Trust, the Environmental Indemnity, or any of the other loan documents delivered in connection
with the loan evidenced by this Note with respect to hazardous, toxic and dangerous wastes, substances and materials, and Borrower’s failure to perform any obligations under the Environmental Indemnity. There will be no liability of the
Borrower for such waste, substances and materials which are introduced to the Property subsequent to a permitted transfer of the Property by the Borrower or to the Lender’s acquisition of title as a result of foreclosure or a deed in lieu of
foreclosure; provided, however, the Borrower shall bear the burden of proof that the introduction and initial release of such hazardous waste, substances or materials (i) occurred subsequent to the transfer date, (ii) did not occur as a
result of any action of the Borrower, and (iii) did not occur as a result of continuing migration or release of any hazardous waste, substances or materials introduced prior to the transfer date, in, on, under or near the Property;

  

	 	(viii)	Any fees and costs including attorney fees incurred in enforcing and collecting any amounts due under this provision 12; 

  

	 	(ix)	 The full amount due under this Note including accrued interest and other amounts due with respect to the Deed of Trust, the Assignment and any other loan documents
executed by the Borrower in connection with this Note if there is a transfer of title to the Property for which the Lender’s 

  

 - 8 - 

	 	 
consent is required pursuant to the terms of the Deed of Trust without the Lender’s consent; and 

  

	 	(x)	The full amount due under this Note including accrued interest and other amounts due with respect to the Deed of Trust, the Assignment and any other loan documents executed by the
Borrower in connection with this Note if subordinate financing is placed against the Property without the Lender’s consent. 

 The foregoing limitation on personal liability is not intended and shall not be deemed to constitute a forgiveness of the indebtedness evidenced by this Note or a release of the obligation to repay said indebtedness according to the terms
and provisions hereof, but shall operate solely to limit the remedies otherwise available to the holder hereof for the enforcement and collection of such indebtedness. As used in this paragraph, the term “Borrower” includes: 
  

	 	(a)	Borrower (and each of them, if more than one); 

  

	 	(b)	all general partners of any Borrower which is a partnership; and 

  

	 	(c)	all joint venturers of any Borrower which is a joint venture. 

 The personal liability hereunder of all persons included within the term “Borrower” shall be joint and several. The provisions of this paragraph shall control over any conflicting provisions of this Note, the Deed of Trust or the
Assignment. 
  

	13.	Loan Charges. 

 Interest, fees and charges collected
or to be collected in connection with the indebtedness evidenced hereby shall not exceed the maximum, if any, permitted by any applicable law. If any such law is interpreted so that said interest, fees and/or charges would exceed any such maximum
and Borrower is entitled to the benefit of such law, then: 
  

	 	(i)	such interest, fees and/or charges shall be reduced by the amount necessary to reduce the same to the permitted maximum; and 

  

	 	(ii)	any sums already collected from Borrower which exceeded the permitted maximum will be refunded. Lender may choose to make the refund either by treating the payments, to the extent
of the excess, as prepayments of principal or by making a direct payment to Borrower. No Prepayment Fee shall be assessed on prepayments under this paragraph. The provisions of this paragraph shall control over any inconsistent provision of this
Note or the Deed of Trust or any other document executed in connection with the indebtedness evidenced hereby. 

  

	14.	Governing Law. 

 This Note shall be construed,
enforced and otherwise governed by the laws of the State of North Carolina. 
  

 - 9 - 

	15.	Lender. 

 As used herein, the term
“Lender” shall mean holder and owner of this Note. 
 IN WITNESS WHEREOF, Borrower has caused this Promissory Note to be executed
under seal by its duly authorized members as of the day and year first above written. 
  

			
	 K-5 ASSOCIATES, LLC,
 a North Carolina limited liability company

		
	By:	 	 /s/ Harold L. Kadis

		 	 HAROLD L. KADIS

	 Its:
	 	 Manager

  

 - 10 -

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