Document:

Exhibit 10.9

 

OFFICE SPACE LEASE

 

BETWEEN

 

4350 LA JOLLA VILLAGE LLC

 

AND

 

INTERCEPT PHARMACEUTICALS, INC.

 

    	 

    	 

    

 

OFFICE SPACE LEASE

 

THIS LEASE is made
as of the 25th day of October, 2011, by and between 4350 LA JOLLA VILLAGE LLC, a Delaware limited
liability company, hereafter called “Landlord,” and INTERCEPT PHARMACEUTICALS, INC., a Delaware corporation,
hereafter called “Tenant.”

 

ARTICLE I. BASIC LEASE PROVISIONS

 

Each reference in this
Lease to the “Basic Lease Provisions” shall mean and refer to the following collective terms, the application of which
shall be governed by the provisions in the remaining Articles of this Lease.

 

		1.	Tenant’s Trade Name: N/A

 

		2.	Premises: Suite No. 960 (the Premises are more particularly described in Section 2.1).

 

Address of Building:
4350 La Jolla Village Drive, San Diego, CA 92122

 

Project Description:
4350 La Jolla Village Drive Building and attendant Common Areas

 

		3.	Use of Premises: General office and for no other use.

 

		4.	Estimated Commencement Date: December 1, 2011

 

		5.	Lease Term: Thirty-six (36) months, plus such additional days as may be required to cause
this Lease to terminate on the final day of the calendar month.

 

		6.	Basic Rent:

 

	Months of Term	 	Monthly Rate Per	 	 	 	 
	or Period	 	Square Foot	 	 	Monthly Basic Rent	 
	01 – 12	 	$	2.33	 	 	$	17,731.00	 
	13 – 24	 	$	2.43	 	 	$	18,492.00	 
	25 – 36	 	$	2.54	 	 	$	19,329.00	 

 

Notwithstanding the above schedule
of Basic Rent to the contrary, as long as Tenant is not in default (as described in Section 14.1) under this Lease, Tenant shall
be entitled to an abatement of 3 full calendar months of Basic Rent in the aggregate amount of $53,193.00 (i.e. $17,731.00 per
month) (the “Abated Basic Rent”) for the 2nd, 3rd, and 4th full calendar months of
the Term (the “Abatement Period”). In the event Tenant Defaults at any time during the Term, all Abated Basic Rent
shall immediately become due and payable. The payment by Tenant of the Abated Basic Rent in the event of a Default shall not limit
or affect any of Landlord's other rights, pursuant to this Lease or at law or in equity. Only Basic Rent shall be abated during
the Abatement Period and all other additional rent and other costs and charges specified in this Lease shall remain as due and
payable pursuant to the provisions of this Lease.

 

		7.	Property Tax Base: The Property Taxes per rentable square foot incurred by Landlord and
attributable to the twelve month period ending June 30, 2012 (the "Base Year").

 

Building Cost Base: The
Building Costs per rentable square foot incurred by Landlord and attributable to the Base Year.

 

Expense Recovery Period:
Every twelve month period during the Term (or portion thereof during the first and last Lease years) ending June 30.

 

		8.	Floor Area of Premises: approximately 7,610 rentable square feet

 

		9.	Security Deposit: $42,524.00, as more fully described in Section 4.3.

 

		10.	Broker(s): Irvine Realty Company ("Landlord's Broker") and Cassidy Turley / BRE
Commercial-UTC ("Tenant's Broker")

 

		11.	Plan Approval Date: N/A

 

		12.	Parking: A minimum of seventeen (17), but no more than twenty-four (24), unreserved vehicle
parking spaces and 1 reserved vehicle parking space, as more fully described in Exhibit C.

 

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		13.	Address for Payments and Notices:

 

	LANDLORD	 	TENANT
	Payment Address:	 	 
	 	 	 
	4350 La Jolla Village LLC	 	Intercept Pharmaceuticals, Inc.
	Department #6975	 	18 Desbrosses Street
	Los Angeles, CA  90084-6975	 	New York, NY  10013
	 	 	Attn:  Alex Martin
	Notice Address:	 	 
	 	 	with a copy of notices to:
	4350 La Jolla Village LLC,	 	 
	c/o The Irvine Company LLC	 	Intercept Pharmaceuticals, Inc.
	4365 Executive Drive, Suite 100	 	4350 La Jolla Village Drive, Suite 960
	San Diego, CA 92121	 	San Diego, CA  92122
	Attn:  Property Manager	 	Attn:  Robin Chapman
	 	 	 
	with a copy of notices to:	 	 
	 	 	 
	THE IRVINE COMPANY LLC	 	 
	P.O. Box 6370	 	 
	Newport Beach, CA 92658-6370	 	 
	Attn:  Senior Vice President, Operations,	 	 
	           Office Properties/San Diego	 	 

 

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ARTICLE II. PREMISES

 

SECTION 2.1.      LEASED
PREMISES. Landlord leases to Tenant and Tenant rents from Landlord the premises shown in Exhibit A (the “Premises”),
containing approximately the floor area set forth in Item 8 of the Basic Lease Provisions and known by the suite number identified
in Item 2 of the Basic Lease Provisions. The Premises are located in the building identified in Item 2 of the Basic Lease Provisions
(the “Building”), which is a portion of the project described in Item 2 (the “Project”). If, upon completion
of the space plans for the Premises, Landlord’s architect or space planner determines that the rentable square footage of
the Premises differs from that set forth in the Basic Lease Provisions, then Landlord shall so notify Tenant and the Basic Rent
(as shown in Item 6 of the Basic Lease Provisions) shall be promptly adjusted in proportion to the change in square footage. Within
five (5) days following Landlord’s request, the parties shall memorialize the adjustments by executing an amendment to this
Lease prepared by Landlord.

 

SECTION 2.2.      ACCEPTANCE
OF PREMISES. Tenant acknowledges that neither Landlord nor any representative of Landlord has made any representation or warranty
with respect to the Premises or the Building or the suitability or fitness of either for any purpose, except as set forth in this
Lease. The taking of possession or use of the Premises by Tenant for any purpose other than construction shall conclusively establish
that the Premises and the Building were in satisfactory condition and in conformity with the provisions of this Lease in all respects,
except for those matters which Tenant shall have brought to Landlord’s attention on a written punch list. The list shall
be limited to any items required to be accomplished by Landlord under the Work Letter (if any) attached as Exhibit X, and shall
be delivered to Landlord within thirty (30) days after the term (“Term”) of this Lease commences as provided in Article
III below. Nothing contained in this Section shall affect the commencement of the Term or the obligation of Tenant to pay rent.
Landlord shall diligently complete all punch list items of which it is notified as provided above.

 

SECTION 2.3.      BUILDING
NAME, ADDRESS AND DEPICTION. Tenant shall not utilize any name selected by Landlord from time to time for the Building and/or
the Project as any part of Tenant’s corporate or trade name. Landlord shall have the right to change the name, number or
designation of the Building or Project without liability to Tenant. Tenant shall not use any picture of the Building in its advertising,
stationery or in any other manner.

 

ARTICLE III. TERM

 

SECTION 3.1.      GENERAL.
The Term shall be for the period shown in Item 5 of the Basic Lease Provisions. The Term shall commence (“Commencement Date”)
on the earlier of (a) the date the Premises are deemed ready for occupancy in accordance with Section 3.2, or (b) the date Tenant
commences its business activities within the Premises. Promptly following request by Landlord, the parties shall memorialize on
a form provided by Landlord (the "Commencement Memorandum") the actual Commencement Date and the expiration date (“Expiration
Date") of this Lease; should Tenant fail to execute and return the Commencement Memorandum to Landlord within five (5) business
days (or provide specific written objections thereto within that period), then Landlord's determination of the Commencement and
Expiration Dates as set forth in the Commencement Memorandum shall be conclusive.

 

SECTION 3.2.      DELAY
IN POSSESSION. If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to Tenant on or before the
Estimated Commencement Date set forth in Item 4 of the Basic Lease Provisions, this Lease shall not be void or voidable nor shall
Landlord be liable to Tenant for any resulting loss or damage. However, Tenant shall not be liable for any rent and the Commencement
Date shall not occur until Landlord delivers possession of the Premises and the Premises are in fact ready for occupancy as defined
below, except that if Landlord’s failure to so deliver possession is attributable to any action or inaction by Tenant (including
without limitation any Tenant Delay described in the Work Letter, if any, attached to this Lease), then the Premises shall be deemed
ready for occupancy, and Landlord shall be entitled to full performance by Tenant (including the payment of rent), as of the date
Landlord would have been able to deliver the Premises to Tenant but for Tenant’s delay(s). Subject to the foregoing, the
Premises shall be deemed ready for occupancy if and when Landlord, to the extent applicable, (a) has put into operation all building
services essential for the use of the Premises by Tenant, (b) has provided reasonable access to the Premises for Tenant so that
they may be used without unnecessary interference, (c) has substantially completed all the work required to be done by Landlord
in this Lease, and (d) has obtained requisite governmental approvals to Tenant’s occupancy.

 

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ARTICLE IV. RENT AND OPERATING EXPENSES

 

SECTION 4.1.      BASIC
RENT. From and after the Commencement Date, Tenant shall pay to Landlord without deduction or offset a Basic Rent for the Premises
in the total amount shown (including subsequent adjustments, if any) in Item 6 of the Basic Lease Provisions. If the Commencement
Date is other than the first day of a calendar month, any rental adjustment shown in Item 6 shall be deemed to occur on the first
day of the next calendar month following the specified monthly anniversary of the Commencement Date. The rent shall be due and
payable in advance commencing on the Commencement Date and continuing thereafter on the first day of each successive calendar month
of the Term, as prorated for any partial month. No demand, notice or invoice shall be required. An installment of rent in the amount
of one (1) full month’s Basic Rent at the initial rate specified in Item 6 of the Basic Lease Provisions shall be delivered
to Landlord concurrently with Tenant’s execution of this Lease and shall be applied against the Basic Rent first due hereunder;
the next installment of Basic Rent shall be due on the first day of the second calendar month of the Term, which installment shall,
if applicable, be appropriately prorated to reflect the amount prepaid for that calendar month.

 

SECTION 4.2.      OPERATING
EXPENSE INCREASE.

 

(a)          Tenant
shall compensate Landlord, as additional rent, for Tenant’s proportionate shares of “Building Costs” and “Property
Taxes,” as those terms are defined below, incurred by Landlord in the operation of the Building and Project. Property Taxes
and Building Costs are mutually exclusive and may be billed separately or in combination as determined by Landlord. Tenant’s
proportionate share of Property Taxes shall equal the product of the rentable floor area of the Premises multiplied by the difference
of (i) Property Taxes per rentable square foot less (ii) the Property Tax Base set forth in Item 7 of the Basic Lease Provisions.
Tenant’s proportionate share of Building Costs shall equal the product of the rentable floor area of the Premises multiplied
by the difference of (i) Building Costs per rentable square foot less (ii) the Building Cost Base set forth in Item 7 of the Basic
Lease Provisions. Tenant acknowledges Landlord’s rights to make changes or additions to the Building and/or Project from
time to time pursuant to Section 6.5 below, in which event the total rentable square footage within the Building and/or Project
may be adjusted. For convenience of reference, Property Taxes and Building Costs may sometimes be collectively referred to as “Operating
Expenses.” Notwithstanding the foregoing, Landlord hereby agrees that Tenant shall not be responsible for Tenant’s
proportionate share of Operating Expense excess accruing during the 12 month period commencing as of the Commencement Date.

 

(b)          Commencing
prior to the start of the first full “Expense Recovery Period” of the Lease (as defined in Item 7 of the Basic Lease
Provisions), and prior to the start of each full or partial Expense Recovery Period thereafter, Landlord shall give Tenant a written
estimate of the amount of Tenant’s proportionate shares of Building Costs and Property Taxes for the Expense Recovery Period
or portion thereof. Tenant shall pay the estimated amounts to Landlord in equal monthly installments, in advance, with Basic Rent.
If Landlord has not furnished its written estimate for any Expense Recovery Period by the time set forth above, Tenant shall continue
to pay cost reimbursements at the rates established for the prior Expense Recovery Period, if any; provided that when the new estimate
is delivered to Tenant, Tenant shall, at the next monthly payment date, pay any accrued cost reimbursements based upon the new
estimate. Landlord may from time to time change the Expense Recovery Period to reflect a calendar year or a new fiscal year of
Landlord, as applicable, in which event Tenant’s share of Operating Expenses shall be equitably prorated for any partial
year.

 

(c)          Within
one hundred twenty (120) days after the end of each Expense Recovery Period, Landlord shall furnish to Tenant a statement setting
forth the actual or prorated Property Taxes and Building Costs attributable to that period, and the parties shall within thirty
(30) days thereafter make any payment or allowance necessary to adjust Tenant’s estimated payments, if any, to Tenant’s
actual proportionate shares as shown by the annual statement. Any amounts due Tenant shall be applied as a credit against the rent
next due or, at Landlord’s option, refunded to Tenant. If Tenant has not made estimated payments during the Expense Recovery
Period, any amount owing by Tenant pursuant to subsection (a) above shall be paid to Landlord in accordance with Article XVI. If
actual Property Taxes or Building Costs allocable to Tenant during any Expense Recovery Period are less than the Property Tax Base
or the Building Cost Base, respectively, Landlord shall not be required to pay that differential to Tenant, although Landlord shall
refund any applicable estimated payments collected from Tenant. Should Tenant fail to object in writing to Landlord’s determination
of actual Operating Expenses within sixty (60) days following delivery of Landlord’s expense statement, Landlord’s
determination of actual Operating Expenses for the applicable Expense Recovery Period shall be conclusive and binding on Tenant.

 

(d)          Even
though the Lease has terminated and the Tenant has vacated the Premises, when the final determination is made of Tenant’s
share of Property Taxes and Building Costs for the Expense Recovery Period in which the Lease terminates, Tenant shall upon notice
pay the entire increase due over the estimated expenses paid; conversely, any overpayment made in the event expenses decrease shall
be rebated by Landlord to Tenant. However, in lieu thereof, Landlord may deliver a reasonable estimate of the anticipated reconciliation
amount to Tenant prior to the expiration of the Term, in which event the appropriate party shall fund that amount by the termination
date.

 

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(e)          If,
at any time during any Expense Recovery Period, any one or more of the Operating Expenses are increased to a rate(s) or amount(s)
in excess of the rate(s) or amount(s) used in calculating the estimated expenses for the year, then Tenant’s estimated share
of Property Taxes or Building Costs, as applicable, shall be increased for the month in which the increase becomes effective and
for all succeeding months by an amount equal to Tenant’s proportionate share of the increase. Landlord shall give Tenant
written notice of the amount or estimated amount of the increase, the month in which the increase will become effective, Tenant’s
monthly share thereof and the months for which the payments are due. Tenant shall pay the increase to Landlord as a part of Tenant’s
monthly payments of estimated expenses as provided in paragraph (b) above, commencing with the month in which effective.

 

(f)          The
term “Building Costs” shall include all charges and expenses pertaining to the operation, management, maintenance and
repair of the Building and the Project, together with all appurtenant Common Areas (as defined in Section 6.2), and shall include
the following charges by way of illustration but not limitation: water and sewer charges; insurance premiums or reasonable premium
equivalents should Landlord elect to self-insure any risk or deductible that Landlord is authorized to insure hereunder; license,
permit, and inspection fees; heat; light; power; janitorial services; the cost of equipping, staffing and operating an on-site
and/or off-site management office for the Building and Project; all labor and labor-related costs for personnel applicable to the
Building and Project, including both Landlord's personnel and outside personnel; a commercially reasonable Landlord overhead/management
fee; reasonable fees for consulting services; access control/security costs, inclusive of the reasonable cost of improvements made
to enhance access control systems and procedures; repairs; air conditioning; supplies; materials; equipment; tools; tenant services;
programs instituted to comply with transportation management requirements; any expense incurred pursuant to Sections 6.1, 6.2,
6.4, 7.2, and 10.2 and Exhibits B and C below; costs incurred (capital or otherwise) on a regular recurring basis every three (3)
or more years for normal maintenance projects (e.g., parking lot slurry coat or replacement of lobby, corridor and elevator cab
carpets and coverings); and the amortized cost of capital improvements (as distinguished from replacement parts or components installed
in the ordinary course of business) which are intended to maintain the quality, appearance or safety of the Building and/or Project,
reduce other operating costs or increases thereof, or upgrade Building and/or Project security, or which are required to bring
the Building and/or Project into compliance with applicable laws and building codes. Landlord shall amortize the cost of capital
improvements on a straight-line basis over the lesser of the Payback Period (as defined below) or the useful life of the capital
improvement as reasonably determined by Landlord. Any amortized Building Cost item may include, at Landlord's option, an actual
or imputed interest rate that Landlord would reasonably be required to pay to finance the cost of the item, applied on the unamortized
balance. "Payback Period" shall mean the reasonably estimated period of time that it takes for the cost savings, if any,
resulting from a capital improvement item to equal the total cost of the capital improvement. It is understood that Building Costs
shall include competitive charges for direct services provided by any subsidiary or division of Landlord. If any Building Cost
is applicable to one or more buildings or properties in addition to the Building, then that cost shall be equitably prorated and
apportioned among the Building and such other buildings or properties. The term “Property Taxes” as used herein shall
include the following: (i) all real estate taxes or personal property taxes, as such property taxes may be reassessed from time
to time; and (ii) other taxes, charges and assessments which are levied with respect to this Lease or to the Building and/or the
Project, and any improvements, fixtures and equipment and other property of Landlord located in the Building and/or the Project,
except that general net income and franchise taxes imposed against Landlord shall be excluded; and (iii) any tax, surcharge or
assessment which shall be levied in addition to or in lieu of real estate or personal property taxes, other than taxes covered
by Article VIII; and (iv) costs and expenses incurred in contesting the amount or validity of any Property Tax by appropriate proceedings.
A copy of Landlord’s unaudited statement of expenses shall be made available to Tenant upon request. The Building Costs,
inclusive of those for the Base Year, shall be extrapolated by Landlord to reflect at least ninety-five percent (95%) occupancy
of the rentable area of the Building.

 

(g)          Notwithstanding
the foregoing, Operating Expenses shall exclude the following:

 

(i)          Any
ground lease rental;

 

(ii)         Costs
incurred by Landlord with respect to goods and services other than parking (including utilities sold and supplied to tenants and
occupants of the Building) to the extent that Landlord is entitled to reimbursement for such costs other than through the Operating
Expense pass-through provisions of such tenants' lease;

 

(iii)        Costs
incurred by Landlord for repairs, replacements and/or restoration to or of the Building to the extent that Landlord is reimbursed
by insurance or condemnation proceeds or by tenants (other than through Operating Expense pass-throughs), warrantors or other third
persons;

 

(iv)        Costs,
including permit, license and inspection costs, incurred with respect to the installation of tenant improvements made for other
tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for
tenants or other occupants of the Building;

 

(v)         Costs
arising from Landlord's charitable or political contributions;

 

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(vi)        Attorneys'
fees and other costs and expenses incurred in connection with negotiations or disputes with present or prospective tenants or other
occupants of the Building, except those attorneys' fees and other costs and expenses incurred in connection with negotiations,
disputes or claims relating to items of Operating Expenses, enforcement of rules and regulations of the Building and such other
matters relating to the maintenance of standards required of Landlord under this Lease;

 

(vii)       Capital
expenditures as determined in accordance with generally accepted accounting principles, consistently applied, except as otherwise
provided in subsection (f) above;

 

(viii)      Brokers
commissions, finders' fees, attorneys' fees, entertainment and travel expenses and other costs incurred by Landlord in leasing
or attempting to lease space in the Building;

 

(ix)         Expenses
in connection with services or other benefits which are not offered to Tenant or for which Tenant is charged for directly but which
are provided to another tenant or occupant of the Building;

 

(x)          Costs,
fines or penalties incurred by Landlord due to the violation by Landlord of (i) any governmental rule or regulation (provided that
costs of complying with such governmental requirements may be included unless otherwise provided herein) or (ii) the terms and
conditions of any lease of space in the Building;

 

(xi)         Overhead
and profit increments paid to subsidiaries or affiliates of Landlord for services provided to the Building to the extent the same
exceeds the costs that would generally be charged for such services if rendered on a competitive basis (based upon a standard of
similar office buildings in the general market area of the Premises) by unaffiliated third parties capable of providing such service;

 

(xii)        Interest
on debt or amortization on any mortgage or mortgages encumbering the Building;

 

(xiii)       Landlord's
general corporate overhead, except as it relates to the specific management of the Building or Project;

 

(xiv)      Costs
of installing the initial landscaping and the initial sculpture, paintings and objects of art for the Building and Project; and

 

(xv)       Advertising
expenditures.

 

SECTION 4.3.      SECURITY
DEPOSIT. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated
in Item 9 of the Basic Lease Provisions (the “Security Deposit”), to be held by Landlord as security for the full and
faithful performance of Tenant’s obligations under this Lease to pay any rental sums, including without limitation such additional
rent as may be owing under any provision hereof, and to maintain the Premises as required by Sections 7.1 and 15.3 or any other
provision of this Lease. For purposes of the foregoing and notwithstanding any provision of Section 1950.7 of the California Civil
Code to the contrary, rental sums shall include prospective rent that would have been payable by Tenant but for the early termination
of this Lease due to Tenant's default or insolvency. Upon any breach of the foregoing obligations by Tenant, Landlord may apply
all or part of the Security Deposit as full or partial compensation. If any portion of the Security Deposit is so applied, Tenant
shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security
Deposit to its original amount. Landlord shall not be required to keep this Security Deposit separate from its general funds, and
Tenant shall not be entitled to interest on the Security Deposit. In no event may Tenant utilize all or any portion of the Security
Deposit as a payment toward any rental sum due under this Lease. Any unapplied balance of the Security Deposit shall be returned
to Tenant or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease within thirty (30) days
following the termination of this Lease and Tenant's vacation of the Premises.

 

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ARTICLE V. USES

 

SECTION 5.1.      USE.
Tenant shall use the Premises only for the purposes stated in Item 3 of the Basic Lease Provisions. The parties agree that any
contrary use shall be deemed to cause material and irreparable harm to Landlord and shall entitle Landlord to injunctive relief
in addition to any other available remedy. The uses prohibited under this Lease shall include, without limitation, use of the Premises
or a portion thereof for (i) offices of any agency or bureau of the United States or any state or political subdivision thereof;
(ii) offices or agencies of any foreign governmental or political subdivision thereof; (iii) offices of any health care professionals
or service organization; (iv) schools, temporary employment agencies or other training facilities which are not ancillary to corporate,
executive or professional office use; (v) retail or restaurant uses; or (vi) communications firms such as radio and/or television
stations. Tenant shall not do or permit anything to be done in or about the Premises which will in any way interfere with the rights
or quiet enjoyment of other occupants of the Building or the Project, or use or allow the Premises to be used for any unlawful
purpose, nor shall Tenant permit any nuisance or commit any waste in the Premises or the Project. Tenant shall not do or permit
to be done anything which will invalidate or increase the cost of any insurance policy(ies) covering the Building, the Project
and/or their contents, and shall comply with all applicable insurance underwriters rules. Tenant shall comply at its expense with
all present and future laws, ordinances and requirements of all governmental authorities that pertain to Tenant or its use of the
Premises, including without limitation all federal and state occupational health and safety and handicap access requirements, whether
or not Tenant’s compliance will necessitate expenditures or interfere with its use and enjoyment of the Premises. Tenant
shall not generate, handle, store or dispose of hazardous or toxic materials (as such materials may be identified in any federal,
state or local law or regulation) in the Premises or Project without the prior written consent of Landlord; provided that the foregoing
shall not be deemed to proscribe the use by Tenant of customary office supplies in normal quantities so long as such use comports
with all applicable laws. Tenant agrees that it shall promptly complete and deliver to Landlord any disclosure form regarding hazardous
or toxic materials that may be required by any governmental agency. Tenant shall also, from time to time upon request by Landlord,
execute such affidavits concerning Tenant’s best knowledge and belief regarding the presence of hazardous or toxic materials
in the Premises. Landlord shall have the right at any time to perform an assessment of the environmental condition of the Premises
and of Tenant’s compliance with this Section. As part of any such assessment, Landlord shall have the right, upon reasonable
prior notice to Tenant, to enter and inspect the Premises and to perform tests, provided those tests are performed in a manner
that minimizes disruption to Tenant. Tenant will cooperate with Landlord in connection with any assessment by, among other things,
promptly responding to inquiries and providing relevant documentation and records. The reasonable cost of the assessment/testing
shall be reimbursed by Tenant to Landlord if such assessment/testing determines that Tenant failed to comply with the requirements
of this Section. In all events Tenant shall indemnify each of the “Indemnified Parties” (as defined in Section 10.3)
in the manner elsewhere provided in this Lease from any release of hazardous or toxic materials caused by Tenant, its agents, employees,
contractors, subtenants or licensees. The foregoing covenants shall survive the expiration or earlier termination of this Lease.

 

SECTION 5.2.      SIGNS.
Landlord shall affix and maintain a sign (restricted solely to Tenant’s name as set forth herein or such other name as Landlord
may consent to in writing) adjacent to the entry door of the Premises, together with a directory listing of Tenant's name as set
forth herein in the lobby directory of the Building. Any subsequent changes to that initial signage shall be at Tenant's sole expense.
All signage shall conform to the criteria for signs established by Landlord and shall be ordered through Landlord. Tenant shall
not place or allow to be placed any other sign, decoration or advertising matter of any kind that is visible from the exterior
of the Premises. Any violating sign or decoration may be immediately removed by Landlord at Tenant’s expense without notice
and without the removal constituting a breach of this Lease or entitling Tenant to claim damages.

 

ARTICLE VI. LANDLORD SERVICES

 

SECTION 6.1.      UTILITIES
AND SERVICES. Landlord shall furnish to the Premises the utilities and services described in Exhibit B, subject to the conditions
and payment obligations and standards set forth in this Lease. Landlord shall not be liable for any failure to furnish any services
or utilities when the failure is the result of any accident or other cause beyond Landlord’s reasonable control, nor shall
Landlord be liable for damages resulting from power surges or any breakdown in telecommunications facilities or services. However,
if the Premises, or a material portion of the Premises, are made untenantable for a period in excess of 5 consecutive business
days as a result of a service interruption that is reasonably within the control of Landlord to correct, then Tenant, as its sole
remedy, shall be entitled to receive an abatement of rent payable hereunder during the period beginning on the 6th consecutive
business day of the service interruption and ending on the day the service has been restored. Landlord’s temporary inability
to furnish any services or utilities shall not entitle Tenant to any damages, relieve Tenant of the obligation to pay rent or constitute
a constructive or other eviction of Tenant, except that Landlord shall diligently attempt to restore the service or utility promptly.
Tenant shall comply with all rules and regulations which Landlord may reasonably establish for the provision of services and utilities,
and shall cooperate with all reasonable conservation practices established by Landlord. Landlord shall at all reasonable times
have free access to all electrical and mechanical installations of Landlord.

 

SECTION 6.2.      OPERATION
AND MAINTENANCE OF COMMON AREAS. During the Term, Landlord shall operate all Common Areas within the Building and the Project.
The term “Common Areas” shall mean all areas within the Building and other buildings in the Project which are not held
for exclusive use by persons entitled to occupy space, and all other appurtenant areas and improvements provided by Landlord for
the common use of Landlord and tenants and their respective employees and invitees, including without limitation parking areas
and structures, driveways, sidewalks, loading docks, landscaped and planted areas, hallways and interior stairwells not located
within the premises of any tenant, common entrances and lobbies, elevators, and restrooms not located within the premises of any
tenant.

 

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SECTION 6.3.      USE
OF COMMON AREAS. The occupancy by Tenant of the Premises shall include the use of the Common Areas in common with Landlord
and with all others for whose convenience and use the Common Areas may be provided by Landlord, subject, however, to compliance
with all rules and regulations as are prescribed from time to time by Landlord. Landlord shall at all times during the Term have
exclusive control of the Common Areas, and may restrain or permit any use or occupancy, except as otherwise provided in this Lease
or in Landlord’s rules and regulations. Tenant shall keep the Common Areas clear of any obstruction or unauthorized use related
to Tenant’s operations. Landlord may temporarily close any portion of the Common Areas for repairs, remodeling and/or alterations,
to prevent a public dedication or the accrual of prescriptive rights, or for any other reasonable purpose.

 

SECTION 6.4.      PARKING.
Parking shall be provided in accordance with the provisions set forth in Exhibit C to this Lease.

 

SECTION 6.5.      CHANGES
AND ADDITIONS BY LANDLORD. Landlord reserves the right to make alterations or additions to the Building or the Project, or
to the attendant fixtures, equipment and Common Areas. No change shall entitle Tenant to any abatement of rent or other claim against
Landlord, provided that the change does not deprive Tenant of reasonable access to or use of the Premises.

 

ARTICLE VII. MAINTAINING THE PREMISES

 

SECTION 7.1.      TENANT’S
MAINTENANCE AND REPAIR. Subject to Article XI and Section 7.2, Tenant at its sole expense shall make all repairs necessary
to keep the Premises and all improvements and fixtures therein in the condition as existed on the Commencement Date (or on any
later date that the applicable improvements may have been installed), excepting ordinary wear and tear. Notwithstanding Section
7.2 below, Tenant’s maintenance obligation shall include without limitation all appliances, non-building standard lighting/electrical
systems, and plumbing fixtures and installations located within the Premises, together with any supplemental HVAC equipment servicing
only the Premises. All repairs shall be at least equal in quality to the original work, shall be made only by a licensed, bonded
contractor approved in writing in advance by Landlord and shall be made only at the time or times approved by Landlord. Any contractor
utilized by Tenant shall be subject to Landlord’s standard requirements for contractors, as modified from time to time. Landlord
may impose reasonable restrictions and requirements with respect to repairs, as provided in Section 7.3, and the provisions of
Section 7.4 shall apply to all repairs. Alternatively, should Landlord or its management agent agree to make a repair on behalf
of Tenant and at Tenant’s request, Tenant shall promptly reimburse Landlord as additional rent for all costs incurred (including
the standard coordination fee of Landlord’s management agent) upon submission of an invoice.

 

SECTION 7.2.      LANDLORD’S
MAINTENANCE AND REPAIR. Subject to Article XI, Landlord shall provide service, maintenance and repair with respect to the heating,
ventilating and air conditioning (“HVAC”) equipment of the Building (exclusive of any supplemental HVAC equipment servicing
only the Premises) and shall maintain in good repair the Common Areas, roof, foundations, footings, the exterior surfaces of the
exterior walls of the Building, and the structural, electrical, mechanical and plumbing systems of the Building except as provided
in Section 7.1 above. Landlord shall have the right to employ or designate any reputable person or firm, including any employee
or agent of Landlord or any of Landlord’s affiliates or divisions, to perform any service, repair or maintenance function.
Landlord need not make any other improvements or repairs except as specifically required under this Lease, and nothing contained
in this Section shall limit Landlord’s right to reimbursement from Tenant for maintenance, repair costs and replacement costs
as provided elsewhere in this Lease. Tenant understands that it shall not make repairs at Landlord’s expense or by rental
offset. Except as provided in Sections 11.1 and 12.1 below, there shall be no abatement of rent and no liability of Landlord by
reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements
to any portion of the Building, including repairs to the Premises, nor shall any related activity by Landlord constitute an actual
or constructive eviction; provided, however, that in making repairs, alterations or improvements, Landlord shall interfere as little
as reasonably practicable with the conduct of Tenant’s business in the Premises.

 

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SECTION 7.3.      ALTERATIONS.
Except for alteration projects costing less than $5,000.00 and satisfying the criteria in the next following sentence (which work
shall require notice to Landlord, but not Landlord’s consent), Tenant shall make no alterations, additions or improvements
to the Premises without the prior written consent of Landlord. Landlord’s consent shall not be unreasonably withheld as long
as the proposed changes do not affect the structural, electrical or mechanical components or systems of the Building, are not visible
from the exterior of the Premises, and utilize only building standard materials. Landlord may impose, as a condition to its consent,
any requirements that Landlord in its discretion may deem reasonable or desirable, including but not limited to a requirement that
all work be covered by a lien and completion bond satisfactory to Landlord and requirements as to the manner, time, and contractor
for performance of the work. Without limiting the generality of the foregoing, Tenant shall use Landlord’s designated mechanical
and electrical contractors for all work affecting the mechanical or electrical systems of the Building. Should Tenant perform any
work that would necessitate any ancillary Building modification or other expenditure by Landlord, then Tenant shall promptly fund
the cost thereof to Landlord. Tenant shall obtain all required permits for the work and shall perform the work in compliance with
all applicable laws, regulations and ordinances, and Landlord shall be entitled to a supervision fee in the amount of five percent
(5%) of the cost of the work. Under no circumstances shall Tenant make any improvement which incorporates asbestos-containing construction
materials into the Premises. In no event shall Tenant prosecute any alteration work that results in picketing or labor demonstrations
in or about the Building or Project. Any request for Landlord’s consent shall be made in writing and shall contain architectural
plans describing the work in detail reasonably satisfactory to Landlord. Landlord may elect to cause its architect to review Tenant’s
architectural plans, and the reasonable cost of that review shall be reimbursed by Tenant. Should the work proposed by Tenant modify
the internal configuration of the Premises, then Tenant shall, at its expense, furnish Landlord with as-built drawings and CAD
disks compatible with Landlord’s systems. Unless Landlord otherwise agrees in writing, all alterations, additions or improvements
affixed to the Premises (excluding moveable trade fixtures and furniture) shall become the property of Landlord and shall be surrendered
with the Premises at the end of the Term, except that Landlord may, by notice to Tenant given at the time of Landlord’s consent
to the alteration or improvement, require Tenant to remove by the Expiration Date, or sooner termination date of this Lease, all
or any alterations, decorations, fixtures, additions, improvements and the like installed either by Tenant or by Landlord at Tenant’s
request. Tenant shall repair any damage to the Premises arising from that removal and restore the affected area to its pre-existing
condition, reasonable wear and tear excepted. Landlord may require Tenant to remove an improvement provided as part of the initial
build-out pursuant to Exhibit X, if any, if and only if the improvement is a non-building standard item and Tenant is notified
of the requirement prior to the build-out. Except as otherwise provided in this Lease or in any Exhibit to this Lease, should Landlord
make any alteration or improvement to the Premises at the request of Tenant, Landlord shall be entitled to prompt payment from
Tenant of the cost thereof, inclusive of the standard coordination fee of Landlord’s management agent.

 

SECTION 7.4.      MECHANIC’S
LIENS. Tenant shall keep the Premises free from any liens arising out of any work performed, materials furnished, or obligations
incurred by or for Tenant. Upon request by Landlord, Tenant shall promptly cause any such lien to be released by posting a bond
in accordance with California Civil Code Section 3143 or any successor statute. In the event that Tenant shall not, within thirty
(30) days following the imposition of any lien, cause the lien to be released of record by payment or posting of a proper bond,
Landlord shall have, in addition to all other available remedies, the right to cause the lien to be released by any means it deems
proper, including payment of or defense against the claim giving rise to the lien. All expenses so incurred by Landlord, including
Landlord’s attorneys’ fees, shall be reimbursed by Tenant promptly following Landlord’s demand, together with
interest from the date of payment by Landlord at the maximum rate permitted by law until paid. Tenant shall give Landlord no less
than twenty (20) days’ prior notice in writing before commencing construction of any kind on the Premises so that Landlord
may post and maintain notices of nonresponsibility on the Premises.

 

SECTION 7.5.      ENTRY
AND INSPECTION. Landlord shall at all reasonable times have the right to enter the Premises to inspect them, to supply services
in accordance with this Lease, to protect the interests of Landlord in the Premises, to make repairs and renovations as reasonably
deemed necessary by Landlord, and to submit the Premises to prospective or actual purchasers or encumbrance holders (or, during
the final twelve months of the Term or when an uncured Tenant default exists, to prospective tenants), all without being deemed
to have caused an eviction of Tenant and without abatement of rent except as provided elsewhere in this Lease. Landlord shall at
all times have and retain a key which unlocks all of the doors in the Premises, excluding Tenant’s vaults and safes, and
Landlord shall have the right to use any and all means which Landlord may deem proper to open the doors in an emergency in order
to obtain entry to the Premises, and any entry to the Premises obtained by Landlord shall not under any circumstances be deemed
to be a forcible or unlawful entry into, or a detainer of, the Premises, or any eviction of Tenant from the Premises.

 

SECTION
7.6.      SPACE PLANNING AND SUBSTITUTION. Landlord shall have the right, upon providing not less than sixty (60) days written notice,
to move Tenant to other space of comparable size in the Building or in the Project. The new space shall be provided with improvements
of comparable quality to those within the Premises and shall contain similar finishes as the
Premises, approximately the same rentable square footage as the Premises and the same number of work stations, offices, breakrooms
and reception areas as are contained in the Premises as of the date Tenant receives Landlord’s notice of relocation. The
total monthly Basic Rent for the new space shall in no event exceed the total monthly Basic Rent for the Premises prior to the
relocation, and Tenant’s proportionate share for the new space shall in no event exceed Tenant’s proportionate share
for the Premises prior to the relocation. Landlord shall reimburse Tenant for the reasonable cost to install and connect telecommunication
and data cabling in the new space in the manner and to the extent such cabling existed in the Premises prior to the relocation;
provided that Landlord may elect to cause such work to be done by its contractors. Landlord shall also reimburse Tenant for such
other reasonable out-of-pocket costs that Tenant may incur in connection with the relocation, including without limitation necessary
stationery revisions, provided that a reasonable estimate thereof is given to Landlord within twenty (20) days following Landlord’s
notice. In no event, however, shall Landlord be obligated to incur or fund total relocation costs, exclusive of tenant improvement
expenditures, in an amount in excess of two (2) months of Basic Rent at the rate then payable hereunder. Within ten (10) days following
request by Landlord, Tenant shall execute an amendment to this Lease prepared by Landlord to memorialize the relocation. Should
Tenant fail timely to execute and deliver the amendment to Landlord, or should Tenant thereafter fail to comply with the terms
thereof, then Landlord may at its option elect to terminate this Lease upon not less than sixty (60) days prior written notice
to Tenant. Upon the effective date of any termination of this Lease, Tenant shall vacate the Premises in accordance with Section
15.3.

 

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ARTICLE VIII. TAXES AND ASSESSMENTS ON
TENANT’S PROPERTY

 

Tenant shall be liable
for and shall pay before delinquency, all taxes and assessments levied against all personal property of Tenant located in the Premises.
When possible Tenant shall cause its personal property to be assessed and billed separately from the real property of which the
Premises form a part. If any taxes on Tenant’s personal property are levied against Landlord or Landlord’s property
and if Landlord pays the same, or if the assessed value of Landlord’s property is increased by the inclusion of a value placed
upon the personal property of Tenant and if Landlord pays the taxes based upon the increased assessment, Tenant shall pay to Landlord
the taxes so levied against Landlord or the proportion of the taxes resulting from the increase in the assessment.

 

ARTICLE IX. ASSIGNMENT AND SUBLETTING

 

SECTION 9.1.      RIGHTS
OF PARTIES.

 

(a)          Except
as otherwise specifically provided herein, Tenant may not, either voluntarily or by operation of law, assign, sublet, encumber,
or otherwise transfer all or any part of Tenant’s interest in this Lease, or permit the Premises to be occupied by anyone
other than Tenant, without Landlord’s prior written consent, which consent shall not unreasonably be withheld in accordance
with the provisions of Section 9.1(c). For purposes of this Lease, references to any subletting, sublease or variation thereof
shall be deemed to apply not only to a sublease effected directly by Tenant, but also to a sub-subletting or an assignment of subtenancy
by a subtenant at any level. No assignment (whether voluntary, involuntary or by operation of law) and no subletting shall be valid
or effective without Landlord’s prior written consent and, at Landlord’s election, shall constitute a material default
of this Lease. Landlord shall not be deemed to have given its consent to any assignment or subletting by any other course of action,
including its acceptance of any name for listing in the Building directory. To the extent not prohibited by provisions of the Bankruptcy
Code, 11 U.S.C. Section 101 et seq. (the “Bankruptcy Code”), including Section 365(f)(1), Tenant on behalf of itself
and its creditors, administrators and assigns waives the applicability of Section 365(e) of the Bankruptcy Code unless the proposed
assignee of the Trustee for the estate of the bankrupt meets Landlord’s standard for consent as set forth in Section 9.1(c)
of this Lease. If this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, any and all
monies or other considerations to be delivered in connection with the assignment shall be delivered to Landlord, shall be and remain
the exclusive property of Landlord and shall not constitute property of Tenant or of the estate of Tenant within the meaning of
the Bankruptcy Code. Any person or entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall
be deemed to have assumed all of the obligations arising under this Lease on and after the date of the assignment, and shall upon
demand execute and deliver to Landlord an instrument confirming that assumption.

 

(b)          The
sale of all or substantially all of the assets of Tenant (other than bulk sales in the ordinary course of business) shall be deemed
an assignment within the meaning and provisions of this Article.

 

(c)          Except
as otherwise specifically provided herein, if Tenant or any subtenant hereunder desires to transfer an interest in this Lease,
Tenant shall first notify Landlord and request in writing Landlord’s consent to the transfer. Tenant shall also submit in
writing to Landlord: (i) the name and address of the proposed transferee; (ii) the nature of any proposed subtenant’s or
assignee’s business to be carried on in the Premises; (iii) the terms and provisions of any proposed sublease or assignment
(including without limitation the rent and other economic provisions, term, improvement obligations and commencement date); (iv)
evidence that the proposed assignee or subtenant will comply with the requirements of Exhibit D to this Lease; and (v) any other
information requested by Landlord and reasonably related to the transfer. Except as provided in Subsection (d) of this Section,
Landlord shall not unreasonably withhold its consent, provided: (1) the use of the Premises will be consistent with the provisions
of this Lease and with Landlord’s commitment to other tenants of the Building and Project; (2) any proposed subtenant or
assignee demonstrates that it is financially responsible by submission to Landlord of all reasonable information as Landlord may
request concerning the proposed subtenant or assignee, including, but not limited to, a balance sheet of the proposed subtenant
or assignee as of a date within ninety (90) days of the request for Landlord’s consent and statements of income or profit
and loss of the proposed subtenant or assignee for the two-year period preceding the request for Landlord’s consent; (3)
the proposed subtenant or assignee is, in Landlord's good faith determination, appropriate for tenancy in a first class office
project; (4) the proposed assignee or subtenant is neither an existing tenant or occupant of the Building or Project nor a prospective
tenant with whom Landlord has been actively negotiating; and (5) the proposed transferee is not an SDN (as defined below) and will
not impose additional burdens or security risks on Landlord. If Landlord consents to the proposed transfer, then the transfer may
be effected within ninety (90) days after the date of the consent upon the terms described in the information furnished to Landlord;
provided that any material change in the terms shall be subject to Landlord’s consent as set forth in this Section. Landlord
shall approve or disapprove any requested transfer within thirty (30) days following receipt of Tenant’s written notice and
the information set forth above. Tenant shall pay to Landlord a transfer fee of Five Hundred Dollars ($500.00) if and when any
transfer request submitted by Tenant is approved.

 

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(d)          Notwithstanding
the provisions of Subsection (c) above, in lieu of consenting to a proposed assignment or subletting of the entire Premises to
other than a Tenant Affiliate, Landlord may elect to (i) sublease the Premises (or the portion proposed to be subleased), or take
an assignment of Tenant’s interest in this Lease, upon the same terms as offered to the proposed subtenant or assignee (excluding
terms relating to the purchase of personal property, the use of Tenant’s name or the continuation of Tenant’s business),
or (ii) terminate this Lease as to the portion of the Premises proposed to be subleased or assigned with a proportionate abatement
in the rent payable under this Lease, effective on the date that the proposed sublease or assignment would have commenced. Landlord
may thereafter, at its option, assign or re-let any space so recaptured to any third party, including without limitation the proposed
transferee identified by Tenant.

 

(e)          Should
any assignment or subletting occur, Tenant shall promptly pay or cause to be paid to Landlord, as additional rent, fifty percent
(50%) of any amounts paid by the assignee or subtenant, however described and whether funded during or after the Lease Term, to
the extent such amounts are in excess of the sum of (i) the scheduled rental sums payable by Tenant hereunder (or, in the event
of a subletting of only a portion of the Premises, the rent allocable to such portion as reasonably determined by Landlord) and
(ii) the direct out-of-pocket costs, as evidenced by third party invoices provided to Landlord, incurred by Tenant to effect the
transfer, which costs shall be amortized over the remaining Term of this Lease or, if shorter, over the term of the sublease. Upon
request by Landlord, Tenant and all other parties to the transfer shall memorialize in writing the amounts to be paid pursuant
to this paragraph.

 

(f)          Notwithstanding
the foregoing, provided Tenant is not then in default hereunder, Tenant may, without Landlord's prior consent but with prior written
notice to Landlord and subject to the provisions of Section 9.2, assign or transfer its right, title and interest in this Lease
or sublease the Premises to any of the following: (i) any entity resulting from a merger or consolidation with Tenant; (ii) any
entity succeeding to the business and assets of Tenant; or (iii) any entity controlling, controlled by, or under common control
with, Tenant (collectively, "Tenant Affiliate"). Promptly following the effectiveness of any such transfer, Tenant shall
provide to Landlord copies of all pertinent transfer documents and such other information pertaining thereto as Landlord may reasonably
request. Landlord’s prior consent shall not be required for the infusion of additional equity capital in Tenant or an initial
public offering of equity securities of Tenant under the Securities Act of 1933, as amended, which results in Tenant's stock being
traded on a national securities exchange, including, but not limited to, the NYSE, the NASDAQ Stock Market or the NASDAQ Small
Cap Market System.

 

SECTION 9.2.      EFFECT
OF TRANSFER. No subletting or assignment, even with the consent of Landlord, shall relieve Tenant, or any successor-in-interest
to Tenant hereunder, of its obligation to pay rent and to perform all its other obligations under this Lease. Moreover, Tenant
shall indemnify and hold Landlord harmless, as provided in Section 10.3, for any act or omission by an assignee or subtenant. Each
assignee, other than Landlord, shall be deemed to assume all obligations of Tenant under this Lease and shall be liable jointly
and severally with Tenant for the payment of all rent, and for the due performance of all of Tenant’s obligations, under
this Lease. Such joint and several liability shall not be discharged or impaired by any subsequent modification or extension of
this Lease. No transfer shall be binding on Landlord unless any document memorializing the transfer is delivered to Landlord, both
the assignee/subtenant and Tenant deliver to Landlord an executed consent to transfer instrument prepared by Landlord and consistent
with the requirements of this Article, and the assignee/subtenant independently complies with all of the insurance requirements
of Tenant as set forth in Exhibit D and evidence thereof is delivered to Landlord. The acceptance by Landlord of any payment due
under this Lease from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a
consent to any transfer. Consent by Landlord to one or more transfers shall not operate as a waiver or estoppel to the future enforcement
by Landlord of its rights under this Lease. In addition to the foregoing, no change in the status of Tenant or any party jointly
and severally liable with Tenant as aforesaid (e.g., by conversion to a limited liability company or partnership) shall serve to
abrogate the liability of any person or entity for the obligations of Tenant, including any obligations that may be incurred by
Tenant after the status change by exercise of a pre-existing right in this Lease.

 

SECTION 9.3.      SUBLEASE
REQUIREMENTS. The following terms and conditions shall apply to any subletting by Tenant of all or any part of the Premises
and shall be included in each sublease:

 

(a)          Tenant
hereby irrevocably assigns to Landlord all of Tenant’s interest in all rentals and income arising from any sublease of the
Premises, and Landlord may collect such rent and income and apply same toward Tenant’s obligations under this Lease; provided,
however, that until a default occurs in the performance of Tenant’s obligations under this Lease, Tenant shall have the right
to receive and collect the sublease rentals. Landlord shall not, by reason of this assignment or the collection of sublease rentals,
be deemed liable to the subtenant for the performance of any of Tenant’s obligations under the sublease. Tenant hereby irrevocably
authorizes and directs any subtenant, upon receipt of a written notice from Landlord stating that an uncured default exists in
the performance of Tenant’s obligations under this Lease, to pay to Landlord all sums then and thereafter due under the sublease.
Tenant agrees that the subtenant may rely on that notice without any duty of further inquiry and notwithstanding any notice or
claim by Tenant to the contrary. Tenant shall have no right or claim against the subtenant or Landlord for any rentals so paid
to Landlord. In the event Landlord collects amounts from subtenants that exceed the total amount then due from Tenant hereunder,
Landlord shall promptly remit the excess to Tenant.

 

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(b)          In
the event of the termination of this Lease, Landlord may, at its sole option, take over Tenant’s entire interest in any sublease
and, upon notice from Landlord, the subtenant shall attorn to Landlord. In no event, however, shall Landlord be liable for any
previous act or omission by Tenant under the sublease or for the return of any advance rental payments or deposits under the sublease
that have not been actually delivered to Landlord, nor shall Landlord be bound by any sublease modification executed without Landlord’s
consent or for any advance rental payment by the subtenant in excess of one month’s rent. The general provisions of this
Lease, including without limitation those pertaining to insurance and indemnification, shall be deemed incorporated by reference
into the sublease despite the termination of this Lease.

 

(c)          Tenant
agrees that Landlord may, at its sole option, authorize a subtenant of the Premises to cure a default by Tenant under this Lease.
Should Landlord accept such cure, the subtenant shall have a right of reimbursement and offset from and against Tenant under the
applicable sublease.

 

ARTICLE X. INSURANCE AND INDEMNITY

 

SECTION 10.1.      TENANT’S
INSURANCE. Tenant, at its sole cost and expense, shall provide and maintain in effect the insurance described in Exhibit D.
Evidence of that insurance must be delivered to Landlord prior to the Commencement Date.

 

SECTION 10.2.      LANDLORD’S
INSURANCE. Landlord may, at its election, provide any or all of the following types of insurance, with or without deductible
and in amounts and coverages as may be determined by Landlord in its discretion: property insurance, subject to standard exclusions,
covering the Building or Project, and such other risks as Landlord or its mortgagees may from time to time deem appropriate, and
commercial general liability coverage. Landlord shall not be required to carry insurance of any kind on any tenant improvements
or alterations in the Premises installed by Tenant or its contractors or otherwise removable by Tenant (collectively, "Tenant
Installations"), as well as any trade fixtures, furnishings, equipment, interior plate glass, signs and all items of personal
property in the Premises, and Landlord shall not be obligated to repair or replace any of the foregoing items should damage occur.
All proceeds of insurance maintained by Landlord upon the Building and Project shall be the property of Landlord, whether or not
Landlord is obligated to or elects to make any repairs.

 

SECTION 10.3.      TENANT’S
INDEMNITY. To the fullest extent permitted by law, but subject to Section 10.5 below, Tenant shall defend, indemnify and hold
harmless Landlord, its agents, lenders, and any and all affiliates of Landlord (collectively, the “Indemnified Parties”),
from and against any and all claims, liabilities, costs or expenses arising either before or after the Commencement Date from Tenant’s
use or occupancy of the Premises, the Building or the Common Areas, or from the conduct of its business, or from any activity,
work, or thing done, permitted or suffered by Tenant or its agents, employees, subtenants, vendors, contractors, invitees or licensees
in or about the Premises, the Building or the Common Areas, or from any default in the performance of any obligation on Tenant’s
part to be performed under this Lease, or from any act or negligence of Tenant or its agents, employees, subtenants, vendors, contractors,
invitees or licensees. Landlord may, at its option, require Tenant to assume Landlord’s defense in any action covered by
this Section through counsel reasonably satisfactory to Landlord.

 

SECTION 10.4.      LANDLORD’S
NONLIABILITY. Except to the extent caused by the negligence or willful misconduct of Landlord or its agents, employees or contractors
(but subject to the provisions of Section 10.5 below), Landlord shall not be liable to Tenant, its employees, agents and invitees,
and Tenant hereby waives all claims against Landlord, its employees and agents for loss of or damage to any property, or any injury
to any person, or loss or interruption of business or income, resulting from any condition including, but not limited to, fire,
explosion, falling plaster, steam, gas, electricity, water or rain which may leak or flow from or into any part of the Premises
or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning,
electrical works or other fixtures in the Building, whether the damage or injury results from conditions arising in the Premises
or in other portions of the Building. It is understood that any such condition may require the temporary evacuation or closure
of all or a portion of the Building. Should Tenant elect to receive any service from a concessionaire, licensee or third party
tenant of Landlord, Tenant shall not seek recourse against Landlord for any breach or liability of that service provider. Neither
Landlord nor its agents shall be liable for interference with light or other similar intangible interests. Tenant shall immediately
notify Landlord in case of fire or accident in the Premises, the Building or the Project and of defects in any improvements or
equipment.

 

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SECTION 10.5.      WAIVER
OF SUBROGATION. Landlord and Tenant each hereby waives all rights of recovery against the other on account of loss and damage
occasioned to the property of such waiving party to the extent that the waiving party is entitled to proceeds for such loss and
damage under any property insurance policies carried or otherwise required to be carried by this Lease. By this waiver it is the
intent of the parties that neither Landlord nor Tenant shall be liable to any insurance company (by way of subrogation or otherwise)
insuring the other party for any loss or damage insured against under any property insurance policies, even though such loss or
damage might be occasioned by the negligence of such party, its agents, employees, contractors or invitees. The foregoing waiver
by Tenant shall also inure to the benefit of Landlord's management agent for the Building.

 

ARTICLE XI. DAMAGE OR DESTRUCTION

 

SECTION 11.1.      RESTORATION.

 

(a)          If
the Building of which the Premises are a part is damaged as the result of an event of casualty, then subject to the provisions
below, Landlord shall repair that damage as soon as reasonably possible unless: (i) Landlord reasonably determines that the cost
of repair would exceed ten percent (10%) of the full replacement cost of the Building (“Replacement Cost”) and the
damage is not covered by Landlord’s fire and extended coverage insurance (or by a normal extended coverage policy should
Landlord fail to carry that insurance); or (ii) Landlord reasonably determines that the cost of repair would exceed twenty-five
percent (25%) of the Replacement Cost; or (iii) Landlord reasonably determines that the cost of repair would exceed ten percent
(10%) of the Replacement Cost and the damage occurs during the final twelve (12) months of the Term. Should Landlord elect not
to repair the damage for one of the preceding reasons, Landlord shall so notify Tenant in the “Casualty Notice” (as
defined below), and this Lease shall terminate as of the date of delivery of that notice.

 

(b)          As
soon as reasonably practicable following the casualty event but not later than sixty (60) days thereafter, Landlord shall notify
Tenant in writing (“Casualty Notice”) of Landlord’s election, if applicable, to terminate this Lease. If this
Lease is not so terminated, the Casualty Notice shall set forth the anticipated period for repairing the casualty damage. If the
anticipated repair period exceeds two hundred seventy (270) days and if the damage is so extensive as to reasonably prevent Tenant’s
substantial use and enjoyment of the Premises, then Tenant may elect to terminate this Lease by written notice to Landlord within
ten (10) days following delivery of the Casualty Notice.

 

(c)          Provided
that Tenant is not in default, the rental to be paid under this Lease shall be abated in the same proportion that the floor area
of the Premises that is rendered unusable by the damage from time to time bears to the total floor area of the Premises.

 

(d)          Notwithstanding
the provisions of subsections (a), (b) and (c) of this Section, but subject to Section 10.5, the cost of any repairs shall be borne
by Tenant, and Tenant shall not be entitled to rental abatement or termination rights, if the damage is due to the fault or neglect
of Tenant or its employees, subtenants, contractors, invitees or representatives. In addition, the provisions of this Section shall
not be deemed to require Landlord to repair any Tenant Installations, fixtures and other items that Tenant is obligated to insure
pursuant to Exhibit D or any other provision of this Lease.

 

SECTION 11.2.      LEASE
GOVERNS. Tenant agrees that the provisions of this Lease, including without limitation Section 11.1, shall govern any damage
or destruction and shall accordingly supersede any contrary statute or rule of law.

 

ARTICLE XII. EMINENT DOMAIN

 

SECTION 12.1.      TOTAL
OR PARTIAL TAKING. If all or a material portion of the Premises is taken by any lawful authority by exercise of the right of
eminent domain, or sold to prevent a taking, either Tenant or Landlord may terminate this Lease effective as of the date possession
is required to be surrendered to the authority. In the event title to a portion of the Building or Project, other than the Premises,
is taken or sold in lieu of taking, and if Landlord elects to restore the Building in such a way as to alter the Premises materially,
either party may terminate this Lease, by written notice to the other party, effective on the date of vesting of title. In the
event neither party has elected to terminate this Lease as provided above, then Landlord shall promptly, after receipt of a sufficient
condemnation award, proceed to restore the Premises to substantially their condition prior to the taking, and a proportionate allowance
shall be made to Tenant for the rent corresponding to the time during which, and to the part of the Premises of which, Tenant is
deprived on account of the taking and restoration. In the event of a taking, Landlord shall be entitled to the entire amount of
the condemnation award without deduction for any estate or interest of Tenant; provided that nothing in this Section shall be deemed
to give Landlord any interest in, or prevent Tenant from seeking any award against the taking authority for, the taking of personal
property and fixtures belonging to Tenant or for relocation or business interruption expenses recoverable from the taking authority.

 

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SECTION 12.2.      TEMPORARY
TAKING. No temporary taking of the Premises shall terminate this Lease or give Tenant any right to abatement of rent, and any
award specifically attributable to a temporary taking of the Premises shall belong entirely to Tenant. A temporary taking shall
be deemed to be a taking of the use or occupancy of the Premises for a period of not to exceed ninety (90) days.

 

SECTION 12.3.      TAKING
OF PARKING AREA. In the event there shall be a taking of the parking area such that Landlord can no longer provide sufficient
parking to comply with this Lease, Landlord may substitute reasonably equivalent parking in a location reasonably close to the
Building; provided that if Landlord fails to make that substitution within ninety (90) days following the taking and if the taking
materially impairs Tenant’s use and enjoyment of the Premises, Tenant may, at its option, terminate this Lease by written
notice to Landlord. If this Lease is not so terminated by Tenant, there shall be no abatement of rent and this Lease shall continue
in effect.

 

ARTICLE XIII. SUBORDINATION; ESTOPPEL
CERTIFICATE

 

SECTION 13.1.      SUBORDINATION.
At the option of Landlord or any of its mortgagees/deed of trust beneficiaries, this Lease shall be either superior or subordinate
to all ground or underlying leases, mortgages and deeds of trust, if any, which may hereafter affect the Building, and to all renewals,
modifications, consolidations, replacements and extensions thereof; provided, that so long as Tenant is not in default under this
Lease, this Lease shall not be terminated or Tenant’s quiet enjoyment of the Premises disturbed in the event of termination
of any such ground or underlying lease, or the foreclosure of any such mortgage or deed of trust, to which this Lease has been
subordinated pursuant to this Section. In the event of a termination or foreclosure, Tenant shall become a tenant of and attorn
to the successor-in-interest to Landlord upon the same terms and conditions as are contained in this Lease, and shall promptly
execute any instrument reasonably required by Landlord’s successor for that purpose. Tenant shall also, within ten (10) days
following written request of Landlord (or the beneficiary under any deed of trust encumbering the Building), execute and deliver
all instruments as may be required from time to time by Landlord or such beneficiary (including without limitation any subordination,
nondisturbance and attornment agreement in the form customarily required by such beneficiary) to subordinate this Lease and the
rights of Tenant under this Lease to any ground or underlying lease or to the lien of any mortgage or deed of trust; provided,
however, that any such beneficiary may, by written notice to Tenant given at any time, subordinate the lien of its deed of trust
to this Lease. Tenant shall agree that any purchaser at a foreclosure sale or lender taking title under a deed in lieu of foreclosure
shall not be responsible for any act or omission of a prior landlord, shall not be subject to any offsets or defenses Tenant may
have against a prior landlord, and shall not be liable for the return of any security deposit not actually recovered by such purchaser
or bound by any rent paid in advance of the calendar month in which the transfer of title occurred; provided that the foregoing
shall not release the applicable prior landlord from any liability for those obligations. Tenant acknowledges that Landlord’s
mortgagees and successors-in-interest and all beneficiaries under deeds of trust encumbering the Building are intended third party
beneficiaries of this Section.

 

SECTION 13.2.      ESTOPPEL
CERTIFICATE. Tenant shall, within ten (10) days following written notice from Landlord, execute, acknowledge and deliver to
Landlord, in any form that Landlord may reasonably require, a statement in writing in favor of Landlord and/or any prospective
purchaser or encumbrancer of the Building (i) certifying that this Lease is unmodified and in full force and effect (or, if modified,
stating the nature of the modification and certifying that this Lease, as modified, is in full force and effect) and the dates
to which the rental, additional rent and other charges have been paid in advance, if any, and (ii) acknowledging that, to Tenant’s
knowledge, there are no uncured defaults on the part of Landlord, or specifying each default if any are claimed, and (iii) setting
forth all further information that Landlord may reasonably require. Tenant’s statement may be relied upon by any prospective
purchaser or encumbrancer of all or any portion of the Building or Project. In addition to Landlord’s other rights and remedies,
Tenant’s failure to deliver any estoppel statement within the provided time shall be conclusive upon Tenant that (i) this
Lease is in full force and effect, without modification except as may be represented by Landlord, (ii) there are no uncured defaults
in Landlord’s performance, and (iii) not more than one month’s rental has been paid in advance.

 

ARTICLE XIV. DEFAULTS AND REMEDIES

 

SECTION 14.1.      TENANT’S
DEFAULTS. In addition to any other event of default set forth in this Lease, the occurrence of any one or more of the following
events shall constitute a default by Tenant:

 

(a)          The
failure by Tenant to make any payment of rent required to be made by Tenant, as and when due, where the failure continues for a
period of three (3) days after written notice from Landlord to Tenant; provided, however, that any such notice shall be in lieu
of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 as amended. For purposes
of these default and remedies provisions, the term “additional rent” shall be deemed to include all amounts of any
type whatsoever other than Basic Rent to be paid by Tenant pursuant to the terms of this Lease.

 

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(b)          The
assignment, sublease, encumbrance or other transfer of the Lease by Tenant, either voluntarily or by operation of law, whether
by judgment, execution, transfer by intestacy or testacy, or other means, without the prior written consent of Landlord unless
otherwise authorized herein.

 

(c)          The
discovery by Landlord that any financial statement provided by Tenant, or by any affiliate, successor or guarantor of Tenant, was
materially false.

 

(d)          The
failure or inability by Tenant to observe or perform any of the covenants or provisions of this Lease to be observed or performed
by Tenant, other than as specified in any other subsection of this Section, where the failure continues for a period of thirty
(30) days after written notice from Landlord to Tenant; provided, however, that any such notice shall be in lieu of, and not in
addition to, any notice required under California Code of Civil Procedure Section 1161 as amended. However, if the nature of the
failure is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in
default if Tenant commences the cure within thirty (30) days, and thereafter diligently pursues the cure to completion.

 

(e)          (i)
The making by Tenant of any general assignment for the benefit of creditors; (ii) the filing by or against Tenant of a petition
to have Tenant adjudged a Chapter 7 debtor under the Bankruptcy Code or to have debts discharged or a petition for reorganization
or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed
within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s
assets located at the Premises or of Tenant’s interest in this Lease, if possession is not restored to Tenant within thirty
(30) days; (iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the
Premises or of Tenant’s interest in this Lease, where the seizure is not discharged within thirty (30) days; or (v) Tenant’s
convening of a meeting of its creditors for the purpose of effecting a moratorium upon or composition of its debts. Landlord shall
not be deemed to have knowledge of any event described in this subsection unless notification in writing is received by Landlord,
nor shall there be any presumption attributable to Landlord of Tenant’s insolvency. In the event that any provision of this
subsection is contrary to applicable law, the provision shall be of no force or effect.

 

SECTION 14.2.      LANDLORD’S
REMEDIES.

 

(a)          In
the event of any default by Tenant, then in addition to any other remedies available to Landlord, Landlord may exercise the following
remedies:

 

(i)          Landlord
may terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate
and Tenant shall immediately surrender possession of the Premises to Landlord. Such termination shall not affect any accrued obligations
of Tenant under this Lease. Upon termination, Landlord shall have the right to reenter the Premises and remove all persons and
property. Landlord shall also be entitled to recover from Tenant:

 

(1)         The
worth at the time of award of the unpaid rent and additional rent which had been earned at the time of termination;

 

(2)         The
worth at the time of award of the amount by which the unpaid rent and additional rent which would have been earned after termination
until the time of award exceeds the amount of such loss that Tenant proves could have been reasonably avoided;

 

(3)         The
worth at the time of award of the amount by which the unpaid rent and additional rent for the balance of the Term after the time
of award exceeds the amount of such loss that Tenant proves could be reasonably avoided;

 

(4)         Any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its
obligations under this Lease or which in the ordinary course of things would be likely to result from Tenant’s default, including,
but not limited to, the cost of recovering possession of the Premises, commissions and other expenses of reletting, including necessary
repair, renovation, improvement and alteration of the Premises for a new tenant, reasonable attorneys’ fees, and any other
reasonable costs; and

 

(5)         At
Landlord’s election, all other amounts in addition to or in lieu of the foregoing as may be permitted by law. The term “rent”
as used in this Lease shall be deemed to mean the Basic Rent and all other sums required to be paid by Tenant to Landlord pursuant
to the terms of this Lease, including without limitation any sums that may be owing from Tenant pursuant to Section 4.3 of this
Lease. Any sum, other than Basic Rent, shall be computed on the basis of the average monthly amount accruing during the twenty-four
(24) month period immediately prior to default, except that if it becomes necessary to compute such rental before the twenty-four
(24) month period has occurred, then the computation shall be on the basis of the average monthly amount during the shorter period.
As used in subparagraphs (1) and (2) above, the “worth at the time of award” shall be computed by allowing interest
at the rate of ten percent (10%) per annum. As used in subparagraph (3) above, the “worth at the time of award” shall
be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus
one percent (1%).

 

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(ii)         Landlord
may elect not to terminate Tenant’s right to possession of the Premises, in which event Landlord may continue to enforce
all of its rights and remedies under this Lease, including the right to collect all rent as it becomes due. Efforts by the Landlord
to maintain, preserve or relet the Premises, or the appointment of a receiver to protect the Landlord’s interests under this
Lease, shall not constitute a termination of the Tenant’s right to possession of the Premises. In the event that Landlord
elects to avail itself of the remedy provided by this subsection (ii), Landlord shall not unreasonably withhold its consent to
an assignment or subletting of the Premises subject to the reasonable standards for Landlord’s consent as are contained in
this Lease.

 

(b)          The
various rights and remedies reserved to Landlord in this Lease or otherwise shall be cumulative and, except as otherwise provided
by California law, Landlord may pursue any or all of its rights and remedies at the same time. No delay or omission of Landlord
to exercise any right or remedy shall be construed as a waiver of the right or remedy or of any breach or default by Tenant. The
acceptance by Landlord of rent shall not be a (i) waiver of any preceding breach or default by Tenant of any provision of this
Lease, other than the failure of Tenant to pay the particular rent accepted, regardless of Landlord’s knowledge of the preceding
breach or default at the time of acceptance of rent, or (ii) a waiver of Landlord’s right to exercise any remedy available
to Landlord by virtue of the breach or default. The acceptance of any payment from a debtor in possession, a trustee, a receiver
or any other person acting on behalf of Tenant or Tenant’s estate shall not waive or cure a default under Section 14.1. No
payment by Tenant or receipt by Landlord of a lesser amount than the rent required by this Lease shall be deemed to be other than
a partial payment on account of the earliest due stipulated rent, nor shall any endorsement or statement on any check or letter
be deemed an accord and satisfaction and Landlord shall accept the check or payment without prejudice to Landlord’s right
to recover the balance of the rent or pursue any other remedy available to it. Tenant hereby waives any right of redemption or
relief from forfeiture under California Code of Civil Procedure Section 1174 or 1179, or under any other present or future law,
in the event this Lease is terminated by reason of any default by Tenant. No act or thing done by Landlord or Landlord’s
agents during the Term shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender shall
be valid unless in writing and signed by Landlord. No employee of Landlord or of Landlord’s agents shall have any power to
accept the keys to the Premises prior to the termination of this Lease, and the delivery of the keys to any employee shall not
operate as a termination of the Lease or a surrender of the Premises.

 

SECTION 14.3.      LATE
PAYMENTS.

 

(a)          Any
rent due under this Lease that is not paid to Landlord within five (5) days of the date when due shall bear interest at the maximum
rate permitted by law from the date due until fully paid. The payment of interest shall not cure any default by Tenant under this
Lease. In addition, Tenant acknowledges that the late payment by Tenant to Landlord of rent will cause Landlord to incur costs
not contemplated by this Lease, the exact amount of which will be extremely difficult and impracticable to ascertain. Those costs
may include, but are not limited to, administrative, processing and accounting charges, and late charges which may be imposed on
Landlord by the terms of any ground lease, mortgage or trust deed covering the Premises. Accordingly, if any rent due from Tenant
shall not be received by Landlord or Landlord’s designee within five (5) days after the date due, then Tenant shall pay to
Landlord, in addition to the interest provided above, a late charge for each delinquent payment equal to the greater of (i) five
percent (5%) of that delinquent payment or (ii) One Hundred Dollars ($100.00). Acceptance of a late charge by Landlord shall not
constitute a waiver of Tenant’s default with respect to the overdue amount, nor shall it prevent Landlord from exercising
any of its other rights and remedies.

 

(b)          Following
each second consecutive installment of Basic Rent that is not paid within five (5) days following notice of nonpayment from Landlord,
Landlord shall have the option (i) to require that beginning with the first payment of Basic Rent next due, Basic Rent shall no
longer be paid in monthly installments but shall be payable quarterly three (3) months in advance and/or (ii) to require that Tenant
increase the amount, if any, of the Security Deposit by one hundred percent (100%). Should Tenant deliver to Landlord, at any time
during the Term, two (2) or more insufficient checks, the Landlord may require that all monies then and thereafter due from Tenant
be paid to Landlord by cashier’s check.

 

SECTION 14.4.      RIGHT
OF LANDLORD TO PERFORM. All covenants and agreements to be performed by Tenant under this Lease shall be performed at Tenant’s
sole cost and expense and without any abatement of rent or right of set-off. If Tenant fails to pay any sum of money, or fails
to perform any other act on its part to be performed under this Lease, and the failure continues beyond any applicable grace period
set forth in Section 14.1, then in addition to any other available remedies, Landlord may, at its election, make the payment or
perform the other act on Tenant’s part. Landlord’s election to make the payment or perform the act on Tenant’s
part shall not give rise to any responsibility of Landlord to continue making the same or similar payments or performing the same
or similar acts. Tenant shall, promptly upon demand by Landlord, reimburse Landlord for all sums paid by Landlord and all necessary
incidental costs, together with interest at the maximum rate permitted by law from the date of the payment by Landlord.

 

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SECTION 14.5.      DEFAULT
BY LANDLORD. Landlord shall not be deemed to be in default in the performance of any obligation under this Lease unless and
until it has failed to perform the obligation within thirty (30) days after written notice by Tenant to Landlord specifying in
reasonable detail the nature and extent of the failure; provided, however, that if the nature of Landlord’s obligation is
such that more than thirty (30) days are required for its performance, then Landlord shall not be deemed to be in default if it
commences performance within the thirty (30) day period and thereafter diligently pursues the cure to completion.

 

SECTION 14.6.      EXPENSES
AND LEGAL FEES. Should either Landlord or Tenant bring any action in connection with this Lease, the prevailing party shall
be entitled to recover as a part of the action its reasonable attorneys’ fees, and all other costs. The prevailing party
for the purpose of this paragraph shall be determined by the trier of the facts.

 

SECTION 14.7.      WAIVER
OF JURY TRIAL/JUDICIAL REFERENCE.

 

(a)          LANDLORD
AND TENANT EACH ACKNOWLEDGES THAT IT IS AWARE OF AND HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHT TO TRIAL
BY JURY, AND EACH PARTY DOES HEREBY EXPRESSLY AND KNOWINGLY WAIVE AND RELEASE ALL SUCH RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER (AND/OR AGAINST ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR
SUBSIDIARY OR AFFILIATED ENTITIES) ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, TENANT’S
USE OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM OF INJURY OR DAMAGE.

 

(b)          IN
THE EVENT THAT THE JURY WAIVER PROVISIONS OF SECTION 14.7(a) ARE NOT ENFORCEABLE UNDER CALIFORNIA LAW, THEN THE PROVISIONS OF THIS
SECTION 14.7(b) SHALL APPLY. IT IS THE DESIRE AND INTENTION OF THE PARTIES TO AGREE UPON A MECHANISM AND PROCEDURE UNDER WHICH
CONTROVERSIES AND DISPUTES ARISING OUT OF THIS LEASE OR RELATED TO THE PREMISES WILL BE RESOLVED IN A PROMPT AND EXPEDITIOUS MANNER.
ACCORDINGLY, EXCEPT WITH RESPECT TO ACTIONS FOR UNLAWFUL OR FORCIBLE DETAINER OR WITH RESPECT TO THE PREJUDGMENT REMEDY OF ATTACHMENT,
ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE OTHER (AND/OR AGAINST ITS OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS OR SUBSIDIARY OR AFFILIATED ENTITIES) ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS
LEASE, TENANT’S USE OR OCCUPANCY OF THE PREMISES AND/OR ANY CLAIM OF INJURY OR DAMAGE, SHALL BE HEARD AND RESOLVED BY A REFEREE
UNDER THE PROVISIONS OF THE CALIFORNIA CODE OF CIVIL PROCEDURE, SECTIONS 638 – 645.1, INCLUSIVE (AS SAME MAY BE AMENDED,
OR ANY SUCCESSOR STATUTE(S) THERETO) (THE “REFEREE SECTIONS”). ANY FEE TO INITIATE THE JUDICIAL REFERENCE PROCEEDINGS
SHALL BE PAID BY THE PARTY INITIATING SUCH PROCEDURE; PROVIDED HOWEVER, THAT THE COSTS AND FEES, INCLUDING ANY INITIATION FEE,
OF SUCH PROCEEDING SHALL ULTIMATELY BE BORNE IN ACCORDANCE WITH SECTION 14.6 ABOVE. THE VENUE OF THE PROCEEDINGS SHALL BE IN THE
COUNTY IN WHICH THE PREMISES ARE LOCATED. WITHIN TEN (10) DAYS OF RECEIPT BY ANY PARTY OF A WRITTEN REQUEST TO RESOLVE ANY DISPUTE
OR CONTROVERSY PURSUANT TO THIS SECTION 14.7(b), THE PARTIES SHALL AGREE UPON A SINGLE REFEREE WHO SHALL TRY ALL ISSUES, WHETHER
OF FACT OR LAW, AND REPORT A FINDING AND JUDGMENT ON SUCH ISSUES AS REQUIRED BY THE REFEREE SECTIONS. IF THE PARTIES ARE UNABLE
TO AGREE UPON A REFEREE WITHIN SUCH TEN (10) DAY PERIOD, THEN ANY PARTY MAY THEREAFTER FILE A LAWSUIT IN THE COUNTY IN WHICH THE
PREMISES ARE LOCATED FOR THE PURPOSE OF APPOINTMENT OF A REFEREE UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 AND 640,
AS SAME MAY BE AMENDED OR ANY SUCCESSOR STATUTE(S) THERETO. IF THE REFEREE IS APPOINTED BY THE COURT, THE REFEREE SHALL BE A NEUTRAL
AND IMPARTIAL RETIRED JUDGE WITH SUBSTANTIAL EXPERIENCE IN THE RELEVANT MATTERS TO BE DETERMINED, FROM JAMS/ENDISPUTE, INC., THE
AMERICAN ARBITRATION ASSOCIATION OR SIMILAR MEDIATION/ARBITRATION ENTITY. THE PROPOSED REFEREE MAY BE CHALLENGED BY ANY PARTY FOR
ANY OF THE GROUNDS LISTED IN SECTION 641 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE, AS SAME MAY BE AMENDED OR ANY SUCCESSOR STATUTE(S)
THERETO. THE REFEREE SHALL HAVE THE POWER TO DECIDE ALL ISSUES OF FACT AND LAW AND REPORT HIS OR HER DECISION ON SUCH ISSUES, AND
TO ISSUE ALL RECOGNIZED REMEDIES AVAILABLE AT LAW OR IN EQUITY FOR ANY CAUSE OF ACTION THAT IS BEFORE THE REFEREE, INCLUDING AN
AWARD OF ATTORNEYS’ FEES AND COSTS IN ACCORDANCE WITH CALIFORNIA LAW. THE REFEREE SHALL NOT, HOWEVER, HAVE THE POWER TO AWARD
PUNITIVE DAMAGES, AND THE PARTIES HEREBY WAIVE ANY RIGHT TO RECOVER ANY SUCH DAMAGES. THE REFEREE SHALL OVERSEE DISCOVERY AND MAY
ENFORCE ALL DISCOVERY ORDERS IN THE SAME MANNER AS ANY TRIAL COURT JUDGE, WITH RIGHTS TO REGULATE DISCOVERY AND TO ISSUE AND ENFORCE
SUBPOENAS, PROTECTIVE ORDERS AND OTHER LIMITATIONS ON DISCOVERY AVAILABLE UNDER CALIFORNIA LAW; PROVIDED, HOWEVER, THAT THE REFEREE
SHALL LIMIT DISCOVERY TO THAT WHICH IS ESSENTIAL TO THE EFFECTIVE PROSECUTION OR DEFENSE OF THE ACTION, AND IN NO EVENT SHALL DISCOVERY
BY EITHER PARTY INCLUDE MORE THAN ONE NON-EXPERT WITNESS DEPOSITION UNLESS BOTH PARTIES OTHERWISE AGREE. THE REFERENCE PROCEEDING
SHALL BE CONDUCTED IN ACCORDANCE WITH CALIFORNIA LAW (INCLUDING THE RULES OF EVIDENCE), AND IN ALL REGARDS, THE REFEREE SHALL FOLLOW
CALIFORNIA LAW APPLICABLE AT THE TIME OF THE REFERENCE PROCEEDING. IN ACCORDANCE WITH SECTION 644 OF THE CALIFORNIA CODE OF CIVIL
PROCEDURE, THE DECISION OF THE REFEREE UPON THE WHOLE ISSUE MUST STAND AS THE DECISION OF THE COURT, AND UPON THE FILING OF THE
STATEMENT OF DECISION WITH THE CLERK OF THE COURT, OR WITH THE JUDGE IF THERE IS NO CLERK, JUDGMENT MAY BE ENTERED THEREON IN THE
SAME MANNER AS IF THE ACTION HAD BEEN TRIED BY THE COURT. THE PARTIES SHALL PROMPTLY AND DILIGENTLY COOPERATE WITH ONE ANOTHER
AND THE REFEREE, AND SHALL PERFORM SUCH ACTS AS MAY BE NECESSARY TO OBTAIN A PROMPT AND EXPEDITIOUS RESOLUTION OF THE DISPUTE OR
CONTROVERSY IN ACCORDANCE WITH THE TERMS OF THIS SECTION 14.7(b). TO THE EXTENT THAT NO PENDING LAWSUIT HAS BEEN FILED TO OBTAIN
THE APPOINTMENT OF A REFEREE, ANY PARTY, AFTER THE ISSUANCE OF THE DECISION OF THE REFEREE, MAY APPLY TO THE COURT OF THE COUNTY
IN WHICH THE PREMISES ARE LOCATED FOR CONFIRMATION BY THE COURT OF THE DECISION OF THE REFEREE IN THE SAME MANNER AS A PETITION
FOR CONFIRMATION OF AN ARBITRATION AWARD PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 1285 ET SEQ. (AS SAME MAY BE AMENDED OR ANY
SUCCESSOR STATUTE(S) THERETO).

 

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ARTICLE XV. END OF TERM

 

SECTION 15.1.      HOLDING
OVER. This Lease shall terminate without further notice upon the expiration of the Term, and any holding over by Tenant after
the expiration shall not constitute a renewal or extension of this Lease, or give Tenant any rights under this Lease, except when
in writing signed by both parties. If Tenant holds over for any period after the expiration (or earlier termination) of the Term,
Landlord may, at its option, treat Tenant as a tenant at sufferance only, commencing on the first (1st) day following
the termination of this Lease. However, should Landlord accept the payment of monthly hold-over rent by Tenant, then a month-to-month
tenancy shall be deemed effected and neither party shall terminate this Lease without thirty (30) days prior written notice to
the other party. Any hold-over by Tenant shall be subject to all of the terms of this Lease, except that the monthly rental shall
be one hundred fifty percent (150%) of the total monthly rental for the month immediately preceding the date of termination, subject
to Landlord’s right to modify same upon thirty (30) days notice to Tenant. The acceptance by Landlord of monthly hold-over
rental in a lesser amount shall not constitute a waiver of Landlord's right to recover the full amount due unless otherwise agreed
in writing by Landlord. If Tenant fails to surrender the Premises upon the expiration of this Lease despite demand to do so by
Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including without limitation, any claims
made by any succeeding tenant relating to such failure to surrender. The foregoing provisions of this Section are in addition to
and do not affect Landlord’s right of re-entry or any other rights of Landlord under this Lease or at law.

 

SECTION 15.2.      MERGER
ON TERMINATION. The voluntary or other surrender of this Lease by Tenant, or a mutual termination of this Lease, shall terminate
any or all existing subleases unless Landlord, at its option, elects in writing to treat the surrender or termination as an assignment
to it of any or all subleases affecting the Premises.

 

SECTION 15.3.      SURRENDER
OF PREMISES; REMOVAL OF PROPERTY. Upon the Expiration Date or upon any earlier termination of this Lease, Tenant shall quit
and surrender possession of the Premises to Landlord in as good order, condition and repair as when received or as hereafter may
be improved by Landlord or Tenant, reasonable wear and tear and repairs which are Landlord’s obligation excepted, and shall
remove or fund to Landlord the cost of removing all wallpapering and voice and/or data transmission cabling installed by or for
Tenant, together with all personal property and debris, except for any items that Landlord may by written authorization allow to
remain. Tenant shall repair all damage to the Premises resulting from the removal and restore the affected area to its pre-existing
condition, reasonable wear and tear excepted, provided that Landlord may instead elect to repair any structural damage at Tenant’s
expense. If Tenant shall fail to comply with the provisions of this Section, Landlord may effect the removal and/or make any repairs,
and the cost to Landlord shall be additional rent payable by Tenant upon demand. If requested by Landlord, Tenant shall execute,
acknowledge and deliver to Landlord an instrument in writing releasing and quitclaiming to Landlord all right, title and interest
of Tenant in the Premises.

 

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ARTICLE XVI. PAYMENTS AND NOTICES

 

All sums payable by
Tenant to Landlord shall be paid, without deduction or offset, in lawful money of the United States to Landlord at its address
set forth in Item 13 of the Basic Lease Provisions, or at any other place as Landlord may designate in writing. Unless this Lease
expressly provides otherwise, as for example in the payment of rent pursuant to Section 4.1, all payments shall be due and payable
within five (5) days after demand. All payments requiring proration shall be prorated on the basis of the number of days in the
pertinent calendar month or year, as applicable. Any notice, election, demand, consent, approval or other communication to be given
or other document to be delivered by either party to the other may be delivered to the other party, at the address set forth in
Item 13 of the Basic Lease Provisions, by personal service or electronic facsimile transmission, or by any courier or “overnight”
express mailing service, or may be deposited in the United States mail, postage prepaid. Either party may, by written notice to
the other, served in the manner provided in this Article, designate a different address. If any notice or other document is sent
by mail, it shall be deemed served or delivered three (3) business days after mailing or, if sooner, upon actual receipt. The refusal
to accept delivery of a notice, or the inability to deliver the notice (whether due to a change of address for which notice was
not duly given or other good reason), shall be deemed delivery and receipt of the notice as of the date of attempted delivery.
If more than one person or entity is named as Tenant under this Lease, service of any notice upon any one of them shall be deemed
as service upon all of them.

 

ARTICLE XVII. RULES AND REGULATIONS

 

Tenant agrees to comply
with the Rules and Regulations attached as Exhibit E, and any reasonable and nondiscriminatory amendments, modifications and/or
additions as may be adopted and published by written notice to tenants by Landlord for the safety, care, security, good order,
or cleanliness of the Premises, Building, Project and/or Common Areas. Landlord shall not be liable to Tenant for any violation
of the Rules and Regulations or the breach of any covenant or condition in any lease or any other act or conduct by any other tenant,
and the same shall not constitute a constructive eviction hereunder. One or more waivers by Landlord of any breach of the Rules
and Regulations by Tenant or by any other tenant(s) shall not be a waiver of any subsequent breach of that rule or any other. Tenant’s
failure to keep and observe the Rules and Regulations shall constitute a default under this Lease. In the case of any conflict
between the Rules and Regulations and this Lease, this Lease shall be controlling.

 

ARTICLE XVIII. BROKER’S COMMISSION

 

The parties recognize
as the broker(s) who negotiated this Lease the firm(s) whose name(s) is (are) stated in Item 10 of the Basic Lease Provisions,
and agree that Landlord shall be responsible for the payment of brokerage commissions to those broker(s) unless otherwise provided
in this Lease. It is understood that Landlord's Broker represents only Landlord in this transaction and Tenant's Broker (if any)
represents only Tenant. Each party warrants that it has had no dealings with any other real estate broker or agent in connection
with the negotiation of this Lease, and agrees to indemnify and hold the other party harmless from any cost, expense or liability
(including reasonable attorneys’ fees) for any compensation, commissions or charges claimed by any other real estate broker
or agent employed or claiming to represent or to have been employed by the indemnifying party in connection with the negotiation
of this Lease. The foregoing agreement shall survive the termination of this Lease.

 

ARTICLE XIX. TRANSFER OF LANDLORD’S
INTEREST

 

In the event of any
transfer of Landlord’s interest in the Premises, the transferor shall be automatically relieved of all obligations on the
part of Landlord accruing under this Lease from and after the date of the transfer, provided that Tenant is duly notified of the
transfer. Any funds held by the transferor in which Tenant has an interest shall be turned over, subject to that interest, to the
transferee. No holder of a mortgage and/or deed of trust to which this Lease is or may be subordinate shall be responsible in connection
with the Security Deposit unless the mortgagee or holder of the deed of trust actually receives the Security Deposit. It is intended
that the covenants and obligations contained in this Lease on the part of Landlord shall, subject to the foregoing, be binding
on Landlord, its successors and assigns, only during and in respect to their respective successive periods of ownership.

 

ARTICLE XX. INTERPRETATION

 

SECTION 20.1.      GENDER
AND NUMBER. Whenever the context of this Lease requires, the words “Landlord” and “Tenant” shall include
the plural as well as the singular, and words used in neuter, masculine or feminine genders shall include the others.

 

SECTION 20.2.      HEADINGS.
The captions and headings of the articles and sections of this Lease are for convenience only, are not a part of this Lease and
shall have no effect upon its construction or interpretation.

 

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SECTION 20.3.      JOINT
AND SEVERAL LIABILITY. If more than one person or entity is named as Tenant, the obligations imposed upon each shall be joint
and several and the act of or notice from, or notice or refund to, or the signature of, any one or more of them shall be binding
on all of them with respect to the tenancy of this Lease, including, but not limited to, any renewal, extension, termination or
modification of this Lease.

 

SECTION 20.4.      SUCCESSORS.
Subject to Articles IX and XIX, all rights and liabilities given to or imposed upon Landlord and Tenant shall extend to and bind
their respective heirs, executors, administrators, successors and assigns. Nothing contained in this Section is intended, or shall
be construed, to grant to any person other than Landlord and Tenant and their successors and assigns any rights or remedies under
this Lease.

 

SECTION 20.5.      TIME
OF ESSENCE. Time is of the essence with respect to the performance of every provision of this Lease in which time of performance
is a factor.

 

SECTION 20.6.      CONTROLLING
LAW/VENUE. This Lease shall be governed by and interpreted in accordance with the laws of the State of California. Should any
litigation be commenced between the parties in connection with this Lease, such action shall be prosecuted in the applicable State
Court of California in the county in which the Building is located.

 

SECTION 20.7.      SEVERABILITY.
If any term or provision of this Lease, the deletion of which would not adversely affect the receipt of any material benefit by
either party or the deletion of which is consented to by the party adversely affected, shall be held invalid or unenforceable to
any extent, the remainder of this Lease shall not be affected and each term and provision of this Lease shall be valid and enforceable
to the fullest extent permitted by law.

 

SECTION 20.8.      WAIVER.
One or more waivers by Landlord or Tenant of any breach of any term, covenant or condition contained in this Lease shall not be
a waiver of any subsequent breach of the same or any other term, covenant or condition. Consent to any act by one of the parties
shall not be deemed to render unnecessary the obtaining of that party’s consent to any subsequent act. No breach of this
Lease shall be deemed to have been waived unless the waiver is in a writing signed by the waiving party.

 

SECTION 20.9.      INABILITY
TO PERFORM. In the event that either party shall be delayed or hindered in or prevented from the performance of any work or
in performing any act required under this Lease by reason of any cause beyond the reasonable control of that party, then the performance
of the work or the doing of the act shall be excused for the period of the delay and the time for performance shall be extended
for a period equivalent to the period of the delay. The provisions of this Section shall not operate to excuse Tenant from the
prompt payment of rent.

 

SECTION 20.10.      ENTIRE
AGREEMENT. This Lease and its exhibits and other attachments cover in full each and every agreement of every kind between the
parties concerning the Premises, the Building, and the Project, and all preliminary negotiations, oral agreements, understandings
and/or practices, except those contained in this Lease, are superseded and of no further effect. Tenant waives its rights to rely
on any representations or promises made by Landlord or others which are not contained in this Lease. No verbal agreement or implied
covenant shall be held to modify the provisions of this Lease, any statute, law, or custom to the contrary notwithstanding.

 

SECTION 20.11.      QUIET
ENJOYMENT. Upon the observance and performance of all the covenants, terms and conditions on Tenant’s part to be observed
and performed, and subject to the other provisions of this Lease, Tenant shall have the right of quiet enjoyment and use of the
Premises for the Term without hindrance or interruption by Landlord or any other person claiming by or through Landlord.

 

SECTION 20.12.      SURVIVAL.
All covenants of Landlord or Tenant which reasonably would be intended to survive the expiration or sooner termination of this
Lease, including without limitation any warranty or indemnity hereunder, shall so survive and continue to be binding upon and inure
to the benefit of the respective parties and their successors and assigns.

 

ARTICLE XXI. EXECUTION AND RECORDING

 

SECTION 21.1.      COUNTERPARTS.
This Lease may be executed in one or more counterparts, each of which shall constitute an original and all of which shall be one
and the same agreement.

 

SECTION 21.2. CORPORATE
AND PARTNERSHIP AUTHORITY. If Tenant is a corporation, limited liability company or partnership, each individual executing
this Lease on behalf of the entity represents and warrants that he is duly authorized to execute and deliver this Lease and that
this Lease is binding upon the corporation, limited liability company or partnership in accordance with its terms. Tenant shall,
at Landlord’s request, deliver a certified copy of its organizational documents or an appropriate certificate authorizing
or evidencing the execution of this Lease.

 

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SECTION 21.3.      EXECUTION
OF LEASE; NO OPTION OR OFFER. The submission of this Lease to Tenant shall be for examination purposes only, and shall not
constitute an offer to or option for Tenant to lease the Premises. Execution of this Lease by Tenant and its return to Landlord
shall not be binding upon Landlord, notwithstanding any time interval, until Landlord has in fact executed and delivered this Lease
to Tenant, it being intended that this Lease shall only become effective upon execution by Landlord and delivery of a fully executed
counterpart to Tenant.

 

SECTION 21.4.      RECORDING.
Tenant shall not record this Lease without the prior written consent of Landlord. Tenant, upon the request of Landlord, shall execute
and acknowledge a “short form” memorandum of this Lease for recording purposes.

 

SECTION 21.5.      AMENDMENTS.
No amendment or mutual termination of this Lease shall be effective unless in writing signed by authorized signatories of Tenant
and Landlord, or by their respective successors in interest. No actions, policies, oral or informal arrangements, business dealings
or other course of conduct by or between the parties shall be deemed to modify this Lease in any respect.

 

ARTICLE XXII. MISCELLANEOUS

 

SECTION 22.1.      NONDISCLOSURE
OF LEASE TERMS. Tenant acknowledges and agrees that the terms of this Lease are confidential and constitute proprietary information
of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord’s
relationship with other tenants. Accordingly, Tenant agrees that it, and its partners, officers, directors, employees and attorneys,
shall not intentionally and voluntarily disclose the terms and conditions of this Lease to any other tenant or apparent prospective
tenant of the Building or Project, either directly or indirectly, without the prior written consent of Landlord, provided, however,
that Tenant may disclose the terms to prospective subtenants or assignees under this Lease or pursuant to any legal requirement.

 

SECTION 22.2.      REPRESENTATIONS
BY TENANT. The application, financial statements and tax returns, if any, submitted and certified to by Tenant as an accurate
representation of its financial condition have been prepared, certified and submitted to Landlord as an inducement and consideration
to Landlord to enter into this Lease. The application and statements are represented and warranted by Tenant to be correct and
to accurately and fully reflect Tenant’s true financial condition as of the date of execution of this Lease by Tenant. Tenant
shall during the Term, but no more than twice during the initial Term, promptly furnish Landlord with current annual financial
statements accurately reflecting Tenant’s financial condition upon written request from Landlord.

 

SECTION 22.3.      CHANGES
REQUESTED BY LENDER. If, in connection with obtaining financing for the Building, the lender shall request reasonable modifications
in this Lease as a condition to the financing, Tenant will not unreasonably withhold or delay its consent, provided that the modifications
do not materially increase the obligations of Tenant or materially and adversely affect the leasehold interest created by this
Lease.

 

SECTION 22.4.      MORTGAGEE
PROTECTION. No act or failure to act on the part of Landlord which would otherwise entitle Tenant to be relieved of its obligations
hereunder or to terminate this Lease shall result in such a release or termination unless (a) Tenant has given notice by registered
or certified mail to any beneficiary of a deed of trust or mortgage covering the Building whose address has been furnished to Tenant
and (b) such beneficiary is afforded a reasonable opportunity to cure the default by Landlord, including, if necessary to effect
the cure, time to obtain possession of the Building by power of sale or judicial foreclosure provided that such foreclosure remedy
is diligently pursued.

 

SECTION 22.5.      SDN
LIST. Tenant hereby represents and warrants that neither Tenant nor any officer, director, employee, partner, member or other
principal of Tenant (collectively, "Tenant Parties") is listed as a Specially Designated National and Blocked Person
("SDN") on the list of such persons and entities issued by the U.S. Treasury Office of Foreign Assets Control (OFAC).
In the event Tenant or any Tenant Party is or becomes listed as an SDN, Tenant shall be deemed in breach of this Lease and Landlord
shall have the right to terminate this Lease immediately upon written notice to Tenant.

 

SECTION 22.6.      TERMINATION
OF EXISTING LEASE. Landlord’s affiliate, 4370 La Jolla Village LLC, a Delaware limited liability company, and Tenant
are currently parties to an office space lease dated May 13, 2008, which lease has subsequently been amended by a First Amendment
dated June 7, 2011 (collectively, the “Existing Lease”), for space located at 4370 La Jolla Village Drive, Suite No.
1050 (“Suite 1050) and Suite No. 685 (“Suite 685”), San Diego, California. It is understood that the Existing
Lease is currently scheduled to expire at midnight on December 31, 2011. The parties agree that the Existing Lease shall terminate
effective as of midnight of the day preceding the Commencement Date of this Lease and that Tenant shall completely vacate Suite
1050 and Suite 685 and shall remove all property therefrom on that date in accordance with the provisions of Section 15.3 of the
Existing Lease; provided that such termination shall not relieve Tenant of (a) any accrued obligation or liability under the Existing
Lease as of said termination date, or (b) any obligation under the Existing Lease which was reasonably intended to survive the
expiration or termination thereof. Any advance rental paid by Tenant under the Existing Lease shall be rebated by Landlord or applied
to the rent due hereunder.

 

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	LANDLORD:	 	TENANT:
	 	 	 	 	 
	4350 LA JOLLA VILLAGE LLC,	 	INTERCEPT PHARMACEUTICALS, INC.,
	a Delaware limited liability company	 	a Delaware corporation
	 	 	 	 	 
	By	/s/ Steven M. Case	 	By	/s/ Mark Pruzanski
	 	Steven M. Case	 	 	 
	 	Executive Vice President 	 	Printed Name	Dr. Mark Pruzanski 
	 	Office Properties	 	 	 
	 	 	 	Title 	CEO
	 	 	 	 	 
	By 	/s/ Michael T. Bennett	 	 	 
	 	Michael T. Bennett	 	By	/s/ Barbara Duncan
	 	Senior Vice President, Operations	 	 	 
	 	Office Properties 	 	Printed Name 	Barbara Duncan 
	 	 	 	 	 
	 	 	 	Title 	CFO

 

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4350
La Jolla Village Drive, Suite 960

 

  

Exhibit A

 

    	 

    	 

    

 

EXHIBIT B

 

UTILITIES AND SERVICES

 

The following standards
for utilities and services shall be in effect at the Building. Landlord reserves the right to adopt nondiscriminatory modifications
and additions to these standards. In the case of any conflict between these standards and the Lease, the Lease shall be controlling.
Subject to all of the provisions of the Lease, including but not limited to the restrictions contained in Section 6.1, the following
shall apply:

 

1.       Landlord shall make
available to the Premises during the hours of 8:00 a.m. to 6:00 p.m., Monday through Friday, and if requested by Tenant, from 9:00
a.m. to 1:00 p.m. on Saturdays ("Building Hours"), generally recognized national holidays excepted, reasonable HVAC services.
Subject to the provisions set forth below, Landlord shall also furnish the Building with elevator service (if applicable), reasonable
amounts of electric current for normal lighting by Landlord’s standard overhead fluorescent and incandescent fixtures and
for the operation of office equipment consistent in type and quantity with that utilized by typical office tenants of the Building
and Project, and water for lavatory purposes. Tenant will not, without the prior written consent of Landlord, connect any apparatus,
machine or device with water pipes or electric current (except through existing electrical outlets in the Premises) for the purpose
of using electric current or water. Because the Building systems have been designed for normal occupancy of approximately four
persons per one thousand usable square feet, Tenant understands that excess occupancy of the Premises may result in excessive use
of power and other services and may inhibit the efficient cooling of the Premises. This paragraph shall at all times be subject
to applicable governmental regulations.

 

2.       Upon written request
from Tenant delivered to Landlord at least 24 hours prior to the period for which service is requested, but during normal business
hours, Landlord will provide any of the foregoing building services to Tenant at such times when such services are not otherwise
available. Tenant agrees to pay Landlord for those after-hour services at rates that Landlord may establish from time to time.
If Tenant requires electric current in excess of that which Landlord is obligated to furnish under this Exhibit B, Tenant shall
first obtain the consent of Landlord, and Landlord may cause an electric current meter to be installed in the Premises to measure
the amount of electric current consumed. The cost of installation, maintenance and repair of the meter shall be paid for by Tenant,
and Tenant shall reimburse Landlord promptly upon demand for all electric current consumed for any special power use as shown by
the meter. The reimbursement shall be at the rates charged for electrical power by the local public utility furnishing the current,
plus any additional expense incurred in keeping account of the electric current consumed.

 

3.       Landlord shall furnish
water for drinking, personal hygiene and lavatory purposes only. If Tenant requires or uses water for any purposes in addition
to ordinary drinking, cleaning and lavatory purposes, Landlord may, in its discretion, install a water meter to measure Tenant’s
water consumption. Tenant shall pay Landlord for the cost of the meter and the cost of its installation, and for consumption throughout
the duration of Tenant’s occupancy. Tenant shall keep the meter and installed equipment in good working order and repair
at Tenant’s own cost and expense, in default of which Landlord may cause the meter to be replaced or repaired at Tenant’s
expense. Tenant agrees to pay for water consumed, as shown on the meter and when bills are rendered, and on Tenant’s default
in making that payment Landlord may pay the charges on behalf of Tenant. Any costs or expenses or payments made by Landlord for
any of the reasons or purposes stated above shall be deemed to be additional rent payable by Tenant to Landlord upon demand.

 

4.       In the event that
any utility service to the Premises is separately metered or billed to Tenant, Tenant shall pay all charges for that utility service
to the Premises and the cost of furnishing the utility to tenant suites shall be excluded from the Operating Expenses as to which
reimbursement from Tenant is required in the Lease. If any utility charges are not paid when due Landlord may pay them, and any
amounts paid by Landlord shall immediately become due to Landlord from Tenant as additional rent. If Landlord elects to furnish
any utility service to the Premises, Tenant shall purchase its requirements of that utility from Landlord as long as the rates
charged by Landlord do not exceed those which Tenant would be required to pay if the utility service were furnished it directly
by a public utility.

 

5.       Landlord shall provide
janitorial services five days per week, equivalent to that furnished in comparable buildings, and window washing as reasonably
required; provided, however, that Tenant shall pay for any additional or unusual janitorial services required by reason of any
nonstandard improvements in the Premises, including without limitation wall coverings and floor coverings installed by or for Tenant,
or by reason of any use of Premises other than exclusively as offices. The cleaning services provided by Landlord shall also exclude
refrigerators, eating utensils (plates, drinking containers and silverware), and interior glass partitions. Tenant shall pay to
Landlord the cost of removal of any of Tenant’s refuse and rubbish, to the extent that they exceed the refuse and rubbish
usually attendant with general office usage.

 

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6.       Tenant shall have
access to the Building 24 hours per day, 7 days per week, 52 weeks per year; provided that Landlord may install access control
systems as it deems advisable for the Building. Such systems may, but need not, include full or part-time lobby supervision, the
use of a sign-in sign-out log, a card identification access system, building parking and access pass system, closing hours procedures,
access control stations, fire stairwell exit door alarm system, electronic guard system, mobile paging system, elevator control
system or any other access controls. In the event that Landlord elects to provide any or all of those services, Landlord may discontinue
providing them at any time with or without notice. Landlord may impose a reasonable charge for access control cards and/or keys
issued to Tenant. Landlord shall have no liability to Tenant for the provision by Landlord of improper access control services,
for any breakdown in service, or for the failure by Landlord to provide access control services. Tenant further acknowledges that
Landlord’s access systems may be temporarily inoperative during building emergency and system repair periods. Tenant agrees
to assume responsibility for compliance by its employees with any regulations established by Landlord with respect to any card
key access or any other system of building access as Landlord may establish. Tenant shall be liable to Landlord for any loss or
damage resulting from its or its employees use of any access system.

 

7.       The costs of operating,
maintaining and repairing any supplemental air conditioning unit serving only the Premises shall be borne solely by Tenant. Such
costs shall include all metered electrical charges as described above in this Exhibit, together with the cost, as reasonably estimated
by Landlord, to supply cooling water or other means of heat dissipation for the unit. Should Tenant desire to install such a unit,
the plans and specifications must be submitted in advance to Landlord and approved in writing by Landlord. Such installation shall
be at Tenant's sole expense and shall include installation of a separate meter for the operation of the unit. Landlord may require
Tenant to remove at Lease expiration any such unit installed by or for Tenant and to repair any resulting damage to the Premises
or Building.

 

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EXHIBIT C

 

PARKING

 

The following parking
regulations shall be in effect at the Building. Landlord reserves the right to adopt reasonable, nondiscriminatory modifications
and additions to the regulations by written notice to Tenant. In the case of any conflict between these regulations and the Lease,
the Lease shall be controlling.

 

1.       Landlord agrees
to maintain, or cause to be maintained, an automobile parking area (“Parking Area”) in reasonable proximity to the
Building for the benefit and use of the visitors and patrons and, except as otherwise provided, employees of Tenant, and other
tenants and occupants of the Building. The Parking Area shall include, whether in a surface parking area or a parking structure,
the automobile parking stalls, driveways, entrances, exits, sidewalks and attendant pedestrian passageways and other areas designated
for parking. Landlord shall have the right and privilege of determining the nature and extent of the automobile Parking Area, whether
it shall be surface, underground or other structure, and of making such changes to the Parking Area from time to time which in
its opinion are desirable and for the best interests of all persons using the Parking Area. Landlord shall keep the Parking Area
in a neat, clean and orderly condition, and shall repair any damage to its facilities. Landlord shall not be liable for any damage
to motor vehicles of visitors or employees, for any loss of property from within those motor vehicles, or for any injury to Tenant,
its visitors or employees, unless ultimately determined to be caused by the sole active negligence or willful misconduct of Landlord.
Unless otherwise instructed by Landlord, every parker shall park and lock his or her own motor vehicle. Landlord shall also have
the right to establish, and from time to time amend, and to enforce against all users of the Parking Area all reasonable rules
and regulations (including the designation of areas for employee parking) as Landlord may deem necessary and advisable for the
proper and efficient operation and maintenance of the Parking Area. Garage managers or attendants are not authorized to make or
allow any exceptions to these regulations.

 

2.       Landlord may, if
it deems advisable in its sole discretion, charge for parking and may establish for the Parking Area a system or systems of permit
parking for Tenant, its employees and its visitors, which may include, but not be limited to, a system of charges against nonvalidated
parking, verification of users, a set of regulations governing different parking locations, and an allotment of reserved or nonreserved
parking spaces based upon the charges paid and the identity of users. In no event shall Tenant or its employees park in reserved
stalls leased to other tenants or in stalls within designated visitor parking zones, nor shall Tenant or its employees utilize
more than the number of parking stalls allotted in this Lease to Tenant. It is understood that Landlord shall not have any obligation
to cite improperly parked vehicles or otherwise attempt to enforce reserved parking rules during hours when parking attendants
are not present at the Parking Area. Tenant shall comply with such system in its use (and in the use of its visitors, patrons and
employees) of the Parking Area, provided, however, that the system and rules and regulations shall apply to all persons entitled
to the use of the Parking Area, and all charges to Tenant for use of the Parking Area shall be no greater than Landlord’s
then current scheduled charge for parking.

 

3.       Tenant shall, upon
request of Landlord from time to time, furnish Landlord with a list of its employees’ names and of Tenant’s and its
employees’ vehicle license numbers. Tenant agrees to acquaint its employees with these regulations and assumes responsibility
for compliance by its employees with these parking provisions, and shall be liable to Landlord for all unpaid parking charges incurred
by its employees. Any amount due from Tenant shall be deemed additional rent. Tenant authorizes Landlord to tow away from the Building
any vehicle belonging to Tenant or Tenant’s employees parked in violation of these provisions, and/or to attach violation
stickers or notices to those vehicles. In the event Landlord elects or is required to limit or control parking by tenants, employees,
visitors or invitees of the Building, whether by validation of parking tickets, parking meters or any other method of assessment,
Tenant agrees to participate in the validation or assessment program under reasonable rules and regulations as are established
by Landlord and/or any applicable governmental agency.

 

4.       Landlord may establish
an identification system for vehicles of Tenant and its employees which may consist of stickers, magnetic parking cards or other
parking access devices supplied by Landlord. All such parking access devices shall remain the property of Landlord, shall be displayed
as required by Landlord or upon request and may not be mutilated or obliterated in any manner. Those devices shall not be transferable
and any such device in the possession of an unauthorized holder shall be void and may be confiscated. Landlord may impose a reasonable
fee for access devices and a replacement charge for devices which are lost or stolen. Each access device shall be returned to Landlord
promptly following the Expiration Date or sooner termination of this Lease. Loss or theft of parking access devices shall be reported
to Landlord or its Parking Area operator immediately and a written report of the loss filed if requested by Landlord or its Parking
Area operator.

 

5.       Persons using the
Parking Area shall observe all directional signs and arrows and any posted speed limits. Unless otherwise posted, in no event shall
the speed limit of 5 miles per hour be exceeded. All vehicles shall be parked entirely within painted stalls, and no vehicles shall
be parked in areas which are posted or marked as “no parking” or on or in ramps, driveways and aisles. Only one vehicle
may be parked in a parking space. In no event shall Tenant interfere with the use and enjoyment of the Parking Area by other tenants
of the Building or their employees or invitees.

 

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6.       Parking Areas shall
be used only for parking vehicles. Washing, waxing, cleaning or servicing of vehicles, or the parking of any vehicle on an overnight
basis, in the Parking Area (other than emergency services) by any parker or his or her agents or employees is prohibited unless
otherwise authorized by Landlord. Tenant shall have no right to install any fixtures, equipment or personal property (other than
vehicles) in the Parking Area, nor shall Tenant make any alteration to the Parking Area.

 

7.       It is understood
that the employees of Tenant and the other tenants of Landlord within the Building and Project shall not be permitted to park their
automobiles in the portions of the Parking Area which may from time to time be designated for patrons of the Building and/or Project
and that Landlord shall at all times have the right to establish rules and regulations for employee parking. Landlord shall lease
to Tenant, and Tenant may lease from Landlord for the Term of this Lease, all or a portion of the total number of vehicle parking
spaces set forth in Item 12 of the Basic Lease Provisions (the "Allotted Stalls"); provided that if Tenant elects to
lease more than the minimum number of seventeen (17) Allotted Stalls in accordance with Article I, Item 12, Tenant shall provide
Landlord with thirty (30) days prior written notice of its intent to do so. Once Tenant has provided such notice to Landlord, Tenant
shall be obligated to Lease such stalls for the remainder of the Term of this Lease. During the initial Term of this Lease only,
Tenant shall pay to Landlord for the lease of the Allotted Stalls the following: (i) $50.00 per unreserved stall per month utilized,
and (ii) $120.00 per reserved stall per month. Thereafter, the charge for the Allotted Stalls shall be the monthly amounts as Landlord
shall from time to time determine. Should any monthly parking charge not be paid within five (5) days following the date due, then
a late charge shall be payable by Tenant equal to the greater of (i) five percent (5%) of the delinquent installment or (ii) One
Hundred Dollars ($100.00), which late charge shall be separate and in addition to any late charge that may be assessed pursuant
to Section 14.3 of the Lease for other than delinquent monthly parking charges. Landlord may authorize persons other than those
described above, including occupants of other buildings, to utilize the Parking Area. In the event of the use of the Parking Area
by other persons, those persons shall pay for that use in accordance with the terms established above; provided, however, Landlord
may allow those persons to use the Parking Area on weekends, holidays, and at other non-office hours without payment.

 

8.       Notwithstanding
the foregoing paragraphs 1 through 7, Landlord shall be entitled to pass on to Tenant its proportionate share of any charges or
parking surcharge or transportation management costs levied by any governmental agency. The foregoing parking provisions are further
subject to any governmental regulations which limit parking or otherwise seek to encourage the use of carpools, public transit
or other alternative transportation forms or traffic reduction programs. Tenant agrees that it will use its best efforts to cooperate,
including registration and attendance, in programs which may be undertaken to reduce traffic. Tenant acknowledges that as a part
of those programs, it may be required to distribute employee transportation information, participate in employee transportation
surveys, allow employees to participate in commuter activities, designate a liaison for commuter transportation activities, distribute
commuter information to all employees, and otherwise participate in other programs or services initiated under a transportation
management program.

 

9.       Should any parking
spaces be allotted by Landlord to Tenant, either on a reserved or nonreserved basis, Tenant shall not assign or sublet any of those
spaces, either voluntarily or by operation of law, without the prior written consent of Landlord, except in connection with an
authorized assignment of this Lease or subletting of the Premises.

 

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EXHIBIT D

 

TENANT’S INSURANCE

 

The following requirements
for Tenant’s insurance shall be in effect at the Building, and Tenant shall also cause any subtenant to comply with the requirements.
Landlord reserves the right to adopt reasonable nondiscriminatory modifications and additions to these requirements. Tenant agrees
to obtain and present evidence to Landlord that it has fully complied with the insurance requirements.

 

1.       Tenant shall, at
its sole cost and expense, commencing on the date Tenant is given access to the Premises for any purpose and during the entire
Term, procure, pay for and keep in full force and effect: (i) commercial general liability insurance with respect to the Premises
and the operations of or on behalf of Tenant in, on or about the Premises, including but not limited to coverage for personal injury,
contractual liability, independent contractors, broad form property damage, fire legal liability, products liability (if a product
is sold from the Premises), and liquor law liability (if alcoholic beverages are sold, served or consumed within the Premises),
which policy(ies) shall be written on an “occurrence” basis and for not less than $2,000,000 combined single limit
(with a $50,000 minimum limit on fire legal liability) per occurrence for bodily injury, death, and property damage liability,
or the current limit of liability carried by Tenant, whichever is greater, and subject to such increases in amounts as Landlord
may determine from time to time; (ii) workers’ compensation insurance coverage as required by law, together with employers’
liability insurance coverage of at least $1,000,000; (iii) with respect to improvements, alterations, and the like required or
permitted to be made by Tenant under this Lease, builder’s risk insurance, in an amount equal to the replacement cost of
the work; (iv) insurance against fire, vandalism, malicious mischief and such other additional perils as may be included in a standard
“special form” policy, insuring all Tenant Installations, trade fixtures, furnishings, equipment and items of personal
property in the Premises, in an amount equal to not less than ninety percent (90%) of their actual replacement cost (with replacement
cost endorsement), which policy shall also include business interruption coverage in an amount sufficient to cover one (1) year
of loss. In no event shall the limits of any policy be considered as limiting the liability of Tenant under this Lease.

 

2.       All policies of
insurance required to be carried by Tenant pursuant to this Exhibit shall be written by responsible insurance companies authorized
to do business in the State of California and with a general policyholder rating of not less than “A-” and financial
rating of not less than “VIII” in the most current Best’s Insurance Report. The deductible or other retained
limit under any policy carried by Tenant shall be commercially reasonable, and Tenant shall be responsible for payment of such
retained limit with full waiver of subrogation in favor of Landlord. Any insurance required of Tenant may be furnished by Tenant
under any blanket policy carried by it or under a separate policy. A certificate of insurance, certifying that the policy has been
issued, provides the coverage required by this Exhibit and contains the required provisions, together with endorsements acceptable
to Landlord evidencing the waiver of subrogation and additional insured provisions required below, shall be delivered to Landlord
prior to the date Tenant is given the right of possession of the Premises. Proper evidence of the renewal of any insurance coverage
shall also be delivered to Landlord not less than thirty (30) days prior to the expiration of the coverage. In the event of a loss
covered by any policy under which Landlord is an additional insured, Landlord shall be entitled to review a copy of such policy.

 

3.       Each policy evidencing
insurance required to be carried by Tenant pursuant to this Exhibit shall contain the following provisions and/or clauses satisfactory
to Landlord: (i) with respect to Tenant’s commercial general liability insurance, a provision that the policy and the coverage
provided shall be primary and that any coverage carried by Landlord shall be excess of and noncontributory with any policies carried
by Tenant, together with a provision including Landlord, The Irvine Company LLC, and any other parties in interest designated by
Landlord as additional insureds; (ii) except with respect to Tenant's commercial general liability insurance, a waiver by the insurer
of any right to subrogation against Landlord, its agents, employees, contractors and representatives which arises or might arise
by reason of any payment under the policy or by reason of any act or omission of Landlord, its agents, employees, contractors or
representatives; and (iii) a provision that the insurer will not cancel or change the coverage provided by the policy without first
giving Landlord thirty (30) days prior written notice. Tenant shall also name Landlord as an additional insured on any excess or
umbrella liability insurance policy carried by Tenant.

 

4.       In the event that
Tenant fails to procure, maintain and/or pay for, at the times and for the durations specified in this Exhibit, any insurance required
by this Exhibit, or fails to carry insurance required by any governmental authority, Landlord may at its election procure that
insurance and pay the premiums, in which event Tenant shall repay Landlord all sums paid by Landlord, together with interest at
the maximum rate permitted by law and any related costs or expenses incurred by Landlord, within ten (10) days following Landlord’s
written demand to Tenant.

 

NOTICE TO TENANT: IN ACCORDANCE WITH
THE TERMS OF THIS LEASE, TENANT MUST PROVIDE EVIDENCE OF THE REQUIRED INSURANCE TO LANDLORD’S MANAGEMENT AGENT PRIOR TO BEING
AFFORDED ACCESS TO THE PREMISES.

 

    	1

    	 

    

 

EXHIBIT E

 

RULES AND REGULATIONS

 

The following Rules
and Regulations shall be in effect at the Building. Landlord reserves the right to adopt reasonable nondiscriminatory modifications
and additions at any time. In the case of any conflict between these regulations and the Lease, the Lease shall be controlling.

 

1.       Except with the
prior written consent of Landlord, or unless otherwise specifically authorized in this Lease, Tenant shall not sell or permit the
retail sale of goods or services in or from the Premises, nor shall Tenant allow the Premises to be utilized for any manufacturing
or medical practice.

 

2.       The sidewalks, halls,
passages, elevators, stairways, and other common areas shall not be obstructed by Tenant or used by it for storage, for depositing
items, or for any purpose other than for ingress to and egress from the Premises. The halls, passages, entrances, elevators, stairways,
balconies and roof are not for the use of the general public, and Landlord shall in all cases retain the right to control and prevent
access to those areas of all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character,
reputation and interests of the Building and its tenants. Should Tenant have access to any balcony or patio area, Tenant shall
not place any furniture or other personal property in such area without the prior written approval of Landlord. Nothing contained
in this Lease shall be construed to prevent access to persons with whom Tenant normally deals only for the purpose of conducting
its business on the Premises (such as clients, customers, office suppliers and equipment vendors and the like) unless those persons
are engaged in illegal activities. Neither Tenant nor any employee or contractor of Tenant shall go upon the roof of the Building
without the prior written consent of Landlord.

 

3.       The sashes, sash
doors, windows, glass lights, solar film and/or screen, and any lights or skylights that reflect or admit light into the halls
or other places of the Building shall not be covered or obstructed. The toilet rooms, water and wash closets and other water apparatus
shall not be used for any purpose other than that for which they were constructed, and no foreign substance of any kind shall be
thrown in those facilities, and the expense of any breakage, stoppage or damage resulting from the violation of this rule shall
be borne by Tenant.

 

4.       No sign, advertisement
or notice visible from the exterior of the Premises shall be inscribed, painted or affixed by Tenant on any part of the Building
or the Premises without the prior written consent of Landlord. If Landlord shall have given its consent at any time, whether before
or after the execution of this Lease, that consent shall in no way operate as a waiver or release of any of the provisions of this
Lease, and shall be deemed to relate only to the particular sign, advertisement or notice so consented to by Landlord and shall
not be construed as dispensing with the necessity of obtaining the specific written consent of Landlord with respect to any subsequent
sign, advertisement or notice. If Landlord, by a notice in writing to Tenant, shall object to any curtain, blind, tinting, shade
or screen attached to, or hung in, or used in connection with, any window or door of the Premises, the use of that curtain, blind,
tinting, shade or screen shall be immediately discontinued and removed by Tenant. No awnings shall be permitted on any part of
the Premises. No antenna or satellite dish shall be installed by Tenant that is either located or visible from outside the Premises
without the prior written agreement of Landlord.

 

5.       Tenant shall not
do or permit anything to be done in the Premises, or bring or keep anything in the Premises, which shall in any way increase the
rate of fire insurance on the Building, or on the property kept in the Building, or obstruct or interfere with the rights of other
tenants, or in any way injure or annoy them, or conflict with the regulations of the Fire Department or the fire laws, or with
any insurance policy upon the Building, or any portion of the Building or its contents, or with any rules and ordinances established
by the Board of Health or other governmental authority.

 

6.       The installation
and location of any unusually heavy equipment in the Premises, including without limitation file storage units, safes and electronic
data processing equipment, shall require the prior written approval of Landlord. Landlord may restrict the weight and position
of any equipment that may exceed the weight load limits for the structure of the Building, and may further require, at Tenant’s
expense, the reinforcement of any flooring on which such equipment may be placed and/or an engineering study to be performed to
determine whether the equipment may safely be installed in the Building and the necessity of any reinforcement. The moving of large
or heavy objects shall occur only between those hours as may be designated by, and only upon previous written notice to, Landlord,
and the persons employed to move those objects in or out of the Building must be reasonably acceptable to Landlord. Without limiting
the generality of the foregoing, no freight, furniture or bulky matter of any description shall be received into or moved out of
the lobby of the Building or carried in any elevator other than the freight elevator designated by Landlord unless approved in
writing by Landlord.

 

    	1

    	 

    

 

7.       Landlord shall clean
the Premises as provided in the Lease, and except with the written consent of Landlord, no person or persons other than those approved
by Landlord will be permitted to enter the Building for that purpose. Tenant shall not cause unnecessary labor by reason of Tenant’s
carelessness and indifference in the preservation of good order and cleanliness. Landlord shall not be responsible to Tenant or
its employees for loss or damage to property in connection with the provision of janitorial services by third party contractors.

 

8.       Tenant shall not
sweep or throw, or permit to be swept or thrown, from the Premises any dirt or other substance into any of the corridors or halls
or elevators, or out of the doors or windows or stairways of the Building, and Tenant shall not use, keep or permit to be used
or kept any foul or noxious gas or substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors and/or vibrations, or interfere
in any way with other tenants or those having business with other tenants, nor shall any animals or birds be kept by Tenant in
or about the Building. Neither Tenant nor its employees, agents, contractors, invitees or licensees shall bring any firearm, whether
loaded or unloaded, into the Project at any time. Smoking or carrying of lighted cigars, cigarettes, pipes or similar products
anywhere within the Premises or Building is strictly prohibited, and Landlord may enforce such prohibition pursuant to Landlord’s
leasehold remedies. Smoking is permitted outside the Building and within the project only in areas designated by Landlord.

 

9.       No cooking shall
be done or permitted by Tenant on the Premises, except pursuant to the normal use of a U.L. approved microwave oven and coffee
maker for the benefit of Tenant’s employees and invitees, nor shall the Premises be used for the storage of merchandise or
for lodging. Any pipes or tubing used by Tenant to transmit water to an appliance or device in the Premises must be made of copper
or stainless steel, and in no event shall plastic tubing be used for that purpose.

 

10.       Tenant shall not
use or keep in the Building any kerosene, gasoline, or inflammable fluid or any other illuminating material, or use any method
of heating other than that supplied by Landlord.

 

11.       If Tenant desires
telephone, telegraph, burglar alarm or similar connections, Landlord will direct electricians as to where and how the wires are
to be introduced. No boring or cutting for wires or otherwise shall be made without directions from Landlord.

 

12.       Upon the termination
of its tenancy, Tenant shall deliver to Landlord all the keys to offices, rooms and toilet rooms and all access cards which shall
have been furnished to Tenant or which Tenant shall have had made.

 

13.       Tenant shall not
mark, drive nails, screw or drill into the partitions, woodwork or plaster or in any way deface the Premises, except to install
normal wall hangings. Tenant shall not affix any floor covering to the floor of the Premises in any manner except by a paste, or
other material which may easily be removed with water, the use of cement or other similar adhesive materials being expressly prohibited.
The method of affixing any floor covering shall be subject to approval by Landlord. The expense of repairing any damage resulting
from a violation of this rule shall be borne by Tenant.

 

14.       On Saturdays, Sundays
and legal holidays, and on other days between the hours of 6:00 p.m. and 8:00 a.m., access to the Building, or to the halls, corridors,
elevators or stairways in the Building, or to the Premises, may be refused unless the person seeking access complies with any access
control system that Landlord may establish. Landlord shall in no case be liable for damages for the admission to or exclusion from
the Building of any person whom Landlord has the right to exclude under Rules 2 or 18 of this Exhibit. In case of invasion, mob,
riot, public excitement, or other commotion, or in the event of any other situation reasonably requiring the evacuation of the
Building, Landlord reserves the right at its election and without liability to Tenant to prevent access to the Building by closing
the doors or otherwise, for the safety of the tenants and protection of property in the Building.

 

15.       Tenant shall be
responsible for protecting the Premises from theft, which includes keeping doors and other means of entry closed and securely locked.
Tenant shall cause all water faucets or water apparatus to be shut off before Tenant or Tenant’s employees leave the Building,
and that all electricity, gas or air shall likewise be shut off, so as to prevent waste or damage, and for any default or carelessness
Tenant shall make good all injuries sustained by other tenants or occupants of the Building or Landlord.

 

16.       Tenant shall not
alter any lock or install a new or additional lock or any bolt on any door of the Premises without the prior written consent of
Landlord. If Landlord gives its consent, Tenant shall in each case promptly furnish Landlord with a key for any new or altered
lock.

 

17.       Tenant shall not
install equipment, such as but not limited to electronic tabulating or computer equipment, requiring electrical or air conditioning
service in excess of that to be provided by Landlord under the Lease except in accordance with Exhibit B.

 

    	2

    	 

    

 

18.       Landlord shall
have full and absolute authority to regulate or prohibit the entrance to the Premises of any vendor, supplier, purveyor, petitioner,
proselytizer or other similar person if, in the good faith judgment of Landlord, such person will be involved in general solicitation
activities, or the proselytizing, petitioning, or disturbance of other tenants or their customers or invitees, or engaged or likely
to engage in conduct which may in Landlord’s opinion distract from the use of the Premises for its intended purpose. Notwithstanding
the foregoing, Landlord reserves the absolute right and discretion to limit or prevent access to the Buildings by any food or beverage
vendor, whether or not invited by Tenant, and Landlord may condition such access upon the vendor’s execution of an entry
permit agreement which may contain provisions for insurance coverage and/or the payment of a fee to Landlord.

 

19.       Tenant shall, at
its expense, be required to utilize the third party contractor designated by Landlord for the Building to provide any telephone
wiring services from the minimum point of entry of the telephone cable in the Building to the Premises.

 

20.       Tenant shall, upon
request by Landlord, supply Landlord with the names and telephone numbers of personnel designated by Tenant to be contacted on
an after-hours basis should circumstances warrant.

 

21.       Tenant shall cause
its employees and agents, and shall endeavor to instruct its invitees, to wear attire suitable for a first class office project
while such persons are in the Building or Project.

 

22.       Landlord may from
time to time grant tenants individual and temporary variances from these Rules, provided that any variance does not have a material
adverse effect on the use and enjoyment of the Premises by Tenant.

 

    	3

    	 

    

 

EXHIBIT X

 

WORK LETTER

 

Landlord shall cause
its contractor to make the following improvements to the Premises: repaint all painted wall surfaces and install new carpet (“Tenant
Improvements”). Landlord's total contribution for the Tenant Improvements, inclusive of space planning costs and Landlord's
construction management fee, shall not exceed Sixty-Four Thousand Nine Hundred Forty Dollars ($64,940.00) (“Landlord Contribution”),
and any additional cost shall be borne solely by Tenant and paid to Landlord prior to the commencement of construction. It is understood
that Landlord shall be entitled to a supervision/administrative fee equal to five percent (5%) of the total construction cost,
which fee shall be paid from the Landlord Contribution. Tenant understands and agrees that any portion of the Landlord Contribution
not utilized by Tenant by June 30, 2012, shall inure to the benefit of Landlord and Tenant shall not be entitled to any credit
or payment. Unless otherwise agreed in writing by Landlord, all materials and finishes utilized in constructing the Tenant Improvements
shall be Landlord's building standard. Should Landlord submit any additional plans, equipment specification sheets, or other matters
to Tenant for approval or completion, Tenant shall respond in writing, as appropriate, within three (3) business days unless a
shorter period is provided h858erein. Tenant shall not unreasonably withhold its approval of any matter, and any disapproval shall
be with reasons specified.

 

In the event that
Tenant requests any changes or additional work (“Changes”), then provided such Change is acceptable to Landlord, Landlord
shall advise Tenant by written change order of any additional cost and/or Tenant Delay (as defined below) such change would cause.
Tenant shall approve or disapprove such change order in writing within two (2) business days following its receipt. Tenant's approval
of a change order shall not be effective unless accompanied by payment in full of the additional cost of the Tenant Improvement
work resulting from the change order, regardless of any unutilized portion of the Landlord Contribution. It is understood that
Landlord shall have no obligation to interrupt or modify the Tenant Improvement work pending Tenant's approval of a change order.

 

Notwithstanding any
provision in the Lease to the contrary, if Tenant fails to comply with any of the time periods specified in this Work Letter, requests
any Changes to the work, fails to make timely payment of any sum due hereunder, furnishes inaccurate or erroneous specifications
or other information, or otherwise delays in any manner the completion of the Tenant Improvements or the issuance of an occupancy
certificate (any of the foregoing being referred to in this Lease as a "Tenant Delay"), then Tenant shall bear any resulting
additional construction cost or other expenses and the Commencement Date shall be deemed to have occurred for all purposes, including
Tenant's obligation to pay rent, as of the date Landlord reasonably determines that it would have been able to deliver the Premises
to Tenant but for the collective Tenant Delays.

 

Tenant hereby designates
Robin Chapman, Telephone No.(858) 652-6804, as its representative, agent and attorney-in-fact for the purpose of receiving notices,
approving submittals and issuing requests for Changes, and Landlord shall be entitled to rely upon authorizations and directives
of such person(s) as if given by Tenant. Tenant may amend the designation of its construction representative(s) at any time upon
delivery of written notice to Landlord.

 

    	1Exhibit 10.10

 

EXECUTION COPY

 

LICENSE AGREEMENT

 

This License Agreement
(this “Agreement”), dated as of March 29, 2011 (the “Effective Date”), is made by and between DAINIPPON
SUMITOMO PHARMA CO. LTD., a company organized under the laws of Japan (“DSP”), having a place of business at 6-8 Doshomachi
2-chome, Chuo-ku, Osaka 541-0045 Japan, and INTERCEPT PHARMACEUTICALS, INC., a company organized under the laws of the State of
Delaware (“Intercept”), having a place of business at 18 Desbrosses Street, New York, New York 10013. DSP and Intercept
are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

Whereas,
Intercept is a clinical stage biopharmaceutical company engaged in the development of therapeutics for the treatment of metabolic
diseases, and is currently developing Obeticoholic acid, a farnesoid X receptor (FXR) agonist,
more commonly known as 6α-ethyl-3α,7α-dihydroxy-5β-cholan-24-oic acid (6-ECDCA) or INT-747, in any form
(the “Compound”) to be used to formulate a new product
for therapeutic use in connection with primary biliary cirrhosis (“PBC”) and nonalcoholic steatohepatitis (“NASH”)
(PBC and NASH, collectively the “Field”);

 

Whereas,
Intercept is simultaneously engaged in the development of other indications for the Compound, including in connection with portal
hypertension (together with all present and future indications of the Compound, each an “Additional Indication”, and
collectively, the “Additional Indications”);

 

Whereas,
DSP is a worldwide pharmaceutical company that has significant experience in the development, manufacturing and commercialization
of pharmaceutical products in the Territory (as defined hereinafter); and

 

Whereas,
Intercept desires to grant certain exclusive rights to DSP in the Territory with respect to the development, manufacturing and
commercialization of the Compound and the Product in the Field
in the Territory and DSP wishes to accept the grant of such rights; all as more particularly set forth in this Agreement.

 

Now
Therefore, in consideration of the foregoing premises and the mutual promises, covenants and conditions contained in
this Agreement, the Parties agree as follows:

 

1.          DEFINITIONS

 

Whenever used in the
Agreement with an initial capital letter, the terms defined in this Article 1 shall have the meanings specified below.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	 

    	 

    

 

“Actual
Costs” shall mean Intercept’s direct costs and indirect costs incurred by sub-contractors of Intercept of materials
and labor specifically incurred in Manufacturing or formulating the Clinical Supplies or Commercial Supplies supplied to DSP under
the Clinical Supply Agreement or the Commercial Supply Agreement, including but not limited to excipients and packaging components
for both the Compound and the Product, as well as inprocess and release testing, stability testing, development of the Specifications,
manufacturing validation, quality assurance and quality control activities necessary to release the Compound or Product to DSP
or to a Third Party designated by DSP; together with directly allocable manufacturing overheads specifically attributable to the
Manufacture or formulation of the Compound or Product under this Agreement, including depreciation and maintenance costs of fixed
assets that are wholly dedicated to and used in manufacturing the Compound or Product for DSP; but excluding corporate, general
or administrative overheads. Actual Costs shall be calculated in accordance with Intercept’s standard cost accounting policies
and with generally accepted accounting principles, consistently applied to the manufacture of pharmaceutical compounds and products.

 

“Additional
Indications” shall have the meaning set forth in the second recital of this Agreement.

 

“Additional
Indications Option” shall have the meaning set forth in Section 7.2.

 

“Additional
Indications Option Commencement Notice” shall have the meaning set forth in Section 7.3.

 

“Additional
Indications Exercise Period” shall have the meaning set forth in Section 7.3.

 

“Additional
Indications Option Fee” shall have the meaning set forth in Section 7.3.

 

“Affiliate”
shall mean any corporation, firm, limited liability company, partnership or other entity that directly controls or is controlled
by or is under common control with a Party to this Agreement. For purposes of this definition only, “control” and,
with correlative meanings, the terms “controlled by” and “under common control with” shall mean the possession,
directly or indirectly through one or more intermediaries, of the power to direct the management or policies of an entity, whether
through the ownership of fifty percent (50%) or more of the voting securities of the other organization or entity or by contract
relating to voting rights or corporate governance. Notwithstanding the foregoing, Sumitomo Chemical Co., Ltd. (“Sumitomo
Chemical”), the parent company of DSP, shall not be considered an Affiliate for the purposes of this Agreement; provided
that DSP shall be permitted to engage in routine reporting of matters concerning this Agreement to Sumitomo Chemical.

 

“Clinical
Supply Agreement” shall have the meaning set forth in Section 6.1.

 

“Clinical
Supplies” shall mean Compound formulated into Product or matching placebos to be used exclusively for conducting
clinical studies to gain Regulatory Approval in the Territory.

 

“CMC”
shall mean the Chemistry, Manufacturing and Controls information required to be submitted under Section 505 of the
U.S. Food, Drug and Cosmetic Act (as amended) and 21 C.F.R. 312.23(a)(7)
and 314.50(d)(1).

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	2

    	 

    

 

“Commercial
Supplies” shall mean the supply of the Product in bulk formulation (either packaged or pre-packaged) made to DSP
by Intercept pursuant to Section 6.2 of this Agreement and the Commercial Supply Agreement.

 

“Commercial
Supply Agreement” shall have the meaning set forth in Section 6.2.

 

“Commercialize”
shall mean to promote, market, distribute, sell (and offer for sale or contract to sell) or provide product support for a Product,
including by way of example: (i) detailing and other promotional activities in support of a Product; (ii) advertising and public
relations in support of a Product, including market research, development and distribution of selling, advertising and promotional
materials, field literature, direct-to-consumer advertising campaigns, media/journal advertising, and exhibiting at seminars and
conventions; and (iii) developing reimbursement programs and information and data specifically intended for managed care organizations,
governmental agencies and the like.

 

“Commercially
Reasonable Efforts” shall mean with respect to a Party’s obligations under this Agreement, including to Develop,
Manufacture or Commercialize the Product, those efforts and resources consistent with the usual practices of such Party in pursuing
the development or commercialization of its own pharmaceutical products that are of similar market potential and strategic value
as such Product, taking into account all relevant factors including product labeling or anticipated labeling, present and future
market potential, past performance of such product and such Party’s other pharmaceutical products that are of similar market
potential, financial return, medical and clinical considerations, past and future regulatory environment and competitive market
conditions, all measured by the facts and circumstances at the time such efforts are due. Commercially Reasonable Efforts shall
be determined on a country-by-country and indication-by-indication basis for the Product, and it is anticipated that the level
of effort will change over time, reflecting changes in the status of the Products and the market(s) or countries involved.

 

“Confidential Information”
shall mean with respect to a Party (the “Receiving Party”), all information which is disclosed by the other Party (the
“Disclosing Party”) to the Receiving Party hereunder or to any of its employees, consultants, Affiliates, licensees
or sublicensees, which is marked as confidential or indicated at the time of disclosure as being confidential (and subsequently
summarized in writing) except to the extent that the Receiving Party can demonstrate by written record that such information, (i)
as of the date of disclosure is demonstrably known to the Receiving Party or its Affiliates other than by virtue of a prior confidential
disclosure to such Party or its Affiliates; (ii) as of the date of disclosure is in, or subsequently enters, the public domain,
through no fault or omission of the Receiving Party; (iii) is obtained from a Third Party having a lawful right to make such disclosure
free from any obligation of confidentiality to the Disclosing Party; or (iv) is independently developed by or for the Receiving
Party without reference to or reliance upon any Confidential Information of the Disclosing Party; or (v) is required to be disclosed
by judicial or governmental authority of competent jurisdiction; provided that the Receiving Party shall first provide the Disclosing
Party with sufficiently timely notice of such requirement to permit the Disclosing Party to take measures to avoid or limit the
scope of the requested disclosure. Confidential Information shall include, without limitation, results and data of any type whatsoever,
in any tangible or intangible form whatsoever, including, preclinical data, clinical trial data, databases, practices, methods,
techniques, specifications, formulations, formulae, knowledge, know-how, skill, experience, test data including pharmacological,
biological, chemical, biochemical, toxicological and clinical test data, analytical and quality control data, stability data, studies
and procedures.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	3

    	 

    

 

“Compound”
shall have the meaning set forth in the first recital of this Agreement.

 

“Control”
or “Controlled” shall mean, when used in reference to intellectual property, other intangible property,
or materials, that a Party owns or has a license or sublicense to such intellectual property, other intangible property or materials,
and has the ability to grant a license or sublicense or other right to use such intellectual property, other intangible property
or materials, as applicable, as provided for herein, without violating the terms of any agreement or other arrangement with any
Third Party; provided that where the ability to grant a license or sublicense is subject to a Third Party consent or notice requirement,
“Commercially Reasonable Efforts” shall require seeking such consent or providing such notice to the Third Party.

 

“Country
Option” shall have the meaning set forth in Section 8.1.

 

“Country
Option Exercise Notice” shall have the meaning set forth in Section 8.2.

 

“Development”
and “Develop” shall mean with respect to the Compound or the Product, all activities relating to preparing
and conducting non-clinical studies, clinical studies (Phase I Clinical Trials, Phase II Clinical Trials, Phase III Clinical Trials
and Phase IV Clinical Trials), formulation, development, statistical analysis, quality assurance and quality control activities
and other product development activities, which may include, but is not limited to, research, and regulatory activities directed
toward obtaining Regulatory Approval of the Product in the Field inside or outside the Territory, as the case may be.

 

“DSP Defense
Costs” shall have the meaning set forth in Section 12.3.

 

“Effective
Date” shall have the meaning set forth in the first line of this Agreement.

 

“Eroded
Country” shall have the meaning set forth in Section 9.3.1.

 

“Exclusive
Period” shall mean, on a country-by-country basis, the period beginning upon the First Commercial Sale of the Product
in the relevant country until the later to occur of (i) the expiration of (x) the Intercept substance patent with respect to Japan
or (y) the last to expire of the Intercept patent family members with respect to China, after giving effect, in each of items (x)
and (y) to any Patent Term Extensions, and (ii) the date upon which generic drugs relying on the Compound or Product data for Regulatory
Approval may be introduced.

 

“Field”
shall have the meaning set forth in the first recital of this Agreement, together with any other Additional Indications, which
shall each automatically be included in the “Field” upon the exercise by DSP of the Additional Indication Option.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	4

    	 

    

 

“First
Commercial Sale” shall mean, on a country-by-country basis, the date of the first arm’s length transaction,
transfer or disposition for value to a Third Party of a Product by or on behalf of DSP or any Affiliate or sublicensee of DSP in
such country after receipt of Marketing Approval, (and any labeling or pricing negotiations-that
may be required after Marketing Approval for such Product in the Territory.) 
A First Commercial Sale shall not include any Product sold for use in clinical trials, for research or for other non-commercial
uses, or that is supplied as part of a compassionate use or similar program.

 

“First
Tier Royalty Rate” shall have the meaning set forth in Section 9.2.3.

 

“GMP”
shall mean all applicable Good Manufacturing Practices standards, including, as applicable, those standards required by the
MHLW or its equivalent in each country in the Territory.

 

“Good Clinical
Practices” or “GCP” shall mean all applicable Good Clinical Practice standards for the
design, conduct, performance, monitoring, auditing, recording, analyses and reporting of clinical trials, including, as applicable,
(i) those standards required by the MHLW or its equivalent in the Territory, and (ii) the equivalent Laws in any relevant country,
each as may be amended and applicable from time to time and in each case, that provide for, among other things, assurance that
the clinical data and reported results are credible and accurate and protect the rights, integrity, and confidentiality of trial
subjects.

 

“Good Laboratory
Practices” or “GLP” shall mean all applicable Good Laboratory Practice standards, including, as
applicable, (i) those standards required by the MHLW as hereinafter defined or its equivalent in each country in the Territory,
and (ii) the equivalent Laws in any relevant country, each as may be amended and applicable from time to time.

 

“Improvement”
shall mean any improvements, enhancements or modifications to the Intercept Technology, the Intercept Manufacturing Technology,
or other technology claimed in the Intercept Patents (whether patentable or not), which would be useful or necessary in the Manufacture,
Development, and Commercialization of the Compound and/or Products,
which is conceived, solely by one Party or jointly by one Party with a Third Party or jointly by both Parties.

 

“IND”
shall mean the equivalent application of an Investigational New Drug Application to the MHLW or its equivalent in any country in
the Territory, such as a clinical trial application or a clinical trial exemption, the filing of which is necessary to commence
or conduct clinical testing of a pharmaceutical product in humans in such country.

 

“Intercept
Change of Control” shall mean: (i) the liquidation or dissolution of Intercept or the sale or other transfer by Intercept
of all or substantially all of its respective assets; or (ii) the occurrence of a tender offer, stock purchase, other stock acquisition,
merger, consolidation, recapitalization, reverse split, sale or transfer of assets or other transaction, as a result of which any
person or entity (x) becomes the beneficial owner, directly or indirectly (including through multiple entities), of respective
securities of Intercept representing more than fifty percent (50%) of the combined voting power with respect to the election of
directors of Intercept, (y) obtains the ability to appoint a majority of the Board of Directors of Intercept, or (z) obtains the
ability to direct the operations or management of Intercept or any successor to the business of Intercept.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	5

    	 

    

 

“Intercept
Development Plan” shall have the meaning set forth in Section 3.1.2.

 

“Intercept
Know-How” shall mean the Know-How which Intercept or its Affiliates Control on the Effective Date or during the Term,
which information is necessary or useful for the Development, Manufacture or Commercialization of the Product or the Compound in
the Field in the Territory.

 

“Intercept
Manufacturing Know-How” shall mean all methods, processes, designs, patterns, or know-how, programs, systems, procedures,
technical data, technology, information, data, results of tests, studies, and analyses, whether patentable or not, which are specifically
related to the manufacturing process of the Compound and/or the Product, including Know-How that is in the case of each of the
foregoing Controlled by Intercept (or its Affiliates) as of the Effective Date or during the Term of this Agreement.

 

“Intercept
Manufacturing Patent” shall mean any Patent that is Controlled by Intercept (or its Affiliates) as of the Effective
Date and/or during the Term, in each case, which is necessary or useful for the Manufacture of the Compound or the Product for
Commercialization in the Field in the Territory.

 

“Intercept
Manufacturing Technology” shall mean the Intercept Manufacturing Know-How and the Intercept Manufacturing Patents.

 

“Intercept
Patents” shall mean all Patents that Intercept Controls as of the Effective Date or during the Term, which Patents
are necessary or useful for the purpose of Development, Manufacture or Commercialization of the Compound or the Product in the
Field in the Territory, all as more particularly set forth on Exhibit A.

 

“Intercept
Technology” shall mean the Intercept Patents
and the Intercept Know-How.

 

“Joint
Steering Committee” or “JSC” shall mean the joint steering committee formed by the Parties as
described in Section 3.1.

 

“Joint
Improvements” shall mean an Improvement or invention, whether patentable or not, which is invented, made or
discovered jointly by or on behalf of the employee(s), licensee(s) (including sublicensees), or contractors (including subcontractors)
of both Parties (and/or their Affiliates).

 

“Know-How”
shall mean intellectual property including any asset that comprises any of the following items and has a substantial
value independent of the services of any individual: inventions, formulae, processes, designs, patterns, or know-how; copyrights;
trademarks, trade names, or brand names; franchises; methods, programs, systems, procedures, campaigns, surveys, studies, forecasts,
estimates, customer lists, or technical data; and other similar items (whether or not in documentary form and whether or not patentable,
copyrightable or otherwise protectable under applicable Laws).

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	6

    	 

    

 

“Laws”
shall mean all applicable laws, statutes, rules, regulations, directives, decisions, ordinances, guidelines concerning
the Development, Manufacturing and Commercialization of the Compound or the Product in the Field in the Territory.

 

“Manufacturing”
shall mean all activities related to the production, manufacture, testing, processing, filling, finishing, packaging, labeling,
inspection, receiving, holding and shipping of the Compound and/or the Product, the Clinical Supplies or the Commercial Supplies,
or any raw materials or packaging materials with respect thereto, or any intermediate of any of the foregoing, including process
and cost optimization, process qualification and validation, commercial manufacture, stability and release testing, quality assurance
and quality control. For clarity, “Manufacture” has a correlative meaning.

 

“Marketing
Approval” shall mean (i) for the United States, the approval of an NDA, and (ii) for jurisdictions in the Territory,
the approval from the relevant Regulatory Authority necessary to market and sell the Product in that country, including, where
required, pricing approvals.

 

“Market
Share” shall have the meaning set forth in Section 9.3.1.

 

“MHLW”
shall mean the Japanese Ministry of Health, Labor and Welfare, or a successor agency thereto.

 

“NASH”
shall have the meaning set forth in the first recital of this Agreement.

 

“Necessary
Third Party Patents” shall mean, on a country-by-country and indication-by-indication basis, the patents that are
owned or controlled by a Third Party, which do not infringe the Intercept Technology, but are necessary for the Development, Manufacturing
or Commercialization of the Compound or the Product in the Field, as reasonably determined in accordance with Section 4.3.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	7

    	 

    

 

“Net Sales”
shall mean the gross amounts invoiced by DSP and its Affiliates and sublicensees for sales or other dispositions of the Product
to Third Parties that are not Affiliates or sublicensees in the Field in the Territory, in bona fide, arms-length transactions
less the following items, as allocable to such Products (if not previously deducted from the amount invoiced): (i) trade, cash
or quantity discounts, credits or allowances actually allowed (provided that such discounts are applied in a normal and customary
manner with respect to other similarly situated products of the selling party, and not in a manner which is unreasonably disproportionate
to one or more Products when compared to other products of the selling party); (ii) charge back payments, administrative fees,
price reductions, rebates allowed or granted, or other forms of consideration to managed care organizations, government agencies
or trade customers, including wholesalers and chain and pharmacy buying groups (provided that such discounts are applied in a normal
and customary manner with respect to other similarly situated products of the selling party, and not in a manner which is unreasonably
disproportionate to one or more Products when compared to other products of the selling party); (iii) credits actually allowed
for claims, allowances for damaged goods, retroactive price reductions or returned goods; (iv) prepaid freight, postage, shipping,
customs duties and insurance charges; and (v) sales taxes, value added taxes, duties and other governmental charges. Such amounts
shall be determined in accordance with Japanese GAAP, consistently applied, or GAAP in effect in a country in the Territory, as
permitted by DSP. Any of the items set forth above that would otherwise be deducted from the invoice price in the calculation of
Net Sales but which are separately charged to Third Parties shall not be deducted from the invoice price in the calculation of
Net Sales. Further, in the case of any sale or other disposal other than in an arm’s length transaction exclusively for cash,
such as barter or counter-trade, of any Product, or part thereof, Net Sales shall be determined by referencing Net Sales at which
substantially similar quantities of the Product are sold in an arm’s length transaction for cash. Finally, financial compensation,
if any, received by DSP from a subsequent resale of the Product by a third party reseller, if any, shall be included in the calculation
of Net Sales.

 

“NDA”
shall mean a new drug application or its equivalent filed with a Regulatory Authority in the Territory seeking Regulatory Approval
to Commercialize the Product in the Territory for a particular indication within the Field.

 

“Non-Territory
Data” shall have the meaning set forth in Section 4.2.2.

 

“Patents”
means any patents and patent applications and all substitutions, divisions, continuations, continuations-in-part, any patent issued
with respect to any such patent applications, any reissue, reexamination, utility models or designs, renewal, adjustment or extension
(including any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or
patent of addition based on any such patent, and all counterparts thereof in any country owned or Controlled by a Party on the
Effective Date and during the Term of this Agreement.

 

“Patent
Term Extension” means any term extensions, adjustments, supplementary protection certificates, regulatory exclusivity
and equivalents thereof offering Patent protection beyond the initial term with respect to any issued Patents.

 

“PBC”
shall have the meaning set forth in the first recital of this Agreement.

 

“Phase
I Clinical Trial” means a clinical trial in humans, the principal purpose of which is to make a preliminary determination
of metabolism, pharmacokinetics, dose findings or preliminary safety in healthy individuals or patients in the Territory.

 

“Phase
II Clinical Trial” means a clinical trial in humans, the principal purpose of which is to make a preliminary determination
that a given product is safe in the population in the Territory for its intended use and to obtain information about such product’s
efficacy sufficient to permit the design of further clinical trials, or if no further trials are necessary, to enable an Regulatory
Approval.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	8

    	 

    

 

“Phase
III Clinical Trials” shall mean a clinical trial of a Product conducted in human patients with a defined dose or
a set of defined doses of a Product designed to ascertain efficacy and safety of such Product for the purpose of submitting applications
for Regulatory Approval to the competent Regulatory Authorities.

 

“Phase
IV Clinical Trials” means post-marketing studies to delineate additional information about a pharmaceutical product’s
risks and benefits, and optimal use, commenced after receipt of Regulatory Approval for a Product in the indication for which such
trial was conducted.         

 

“Product”
shall mean any pharmaceutical composition or formulation that contains the Compound, whether or not such Product is used as a single
agent or in combination with other therapeutically active components, as the term “Product” may be further defined
in each of the Clinical Supply Agreement and the Commercial Supply Agreement.

 

“Product
Development Plan” shall have the meaning set forth in Section 3.1.1.

 

“Quality
Assurance Agreement” shall have the meaning set forth in Section 6.3.5.

 

“Regulatory
Approval” shall mean all necessary approvals (including INDs, NDAs, product approvals, import permits, and, in each
case any supplements and amendments thereto), licenses, registrations or authorizations of any Regulatory Authority, necessary
for the Development, Manufacture, and Commercialization of the Compound or the Product in the Field in the Territory.

 

“Regulatory
Authority” shall mean, in a particular country in the Territory, any applicable governmental authority involved in
granting Regulatory Approval in the Territory, including the MHLW.

 

“Second
Tier Royalty Rate” shall have the meaning set forth in Section 9.2.3.

 

“Specifications”
shall mean those tests, methods and acceptance criteria for the Compound and the Product required in the Territory as set forth
the in the IND and NDA.

 

“Target
Actual Cost” shall have the meaning set forth in Section 6.2.2.

 

“Target
Country” shall have the meaning set forth in Section 8.3.

 

“Technical
Transfer” shall have the meaning set forth in Section 6.4.1.

 

“Technology”
shall mean and include any and all unpatented, proprietary ideas, inventions, discoveries, Confidential Information, biologic materials,
data, results, formulae, designs, specifications, methods, processes, formulations, techniques, ideas, know-how, technical information
(including, without limitation, structural and functional information), process information, pre-clinical information, clinical
information, regulatory filings, and any and all proprietary biological, chemical, pharmacological, toxicological, pre-clinical,
clinical, assay, control and manufacturing data and materials.

 

“Term”
shall have the meaning set forth in Section 15.1.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	9

    	 

    

 

“Territory”
shall mean Japan and China (excluding Taiwan), and such other countries which are the subject of the Country Option, each of which
shall be automatically deemed included in the Territory upon the exercise of the Country Option by DSP for such country.

 

“Third
Party” shall mean any person or entity other than DSP or Intercept, and their respective Affiliates.

 

“Third
Tier Royalty Rate” shall have the meaning set forth in Section 9.2.3.

 

“Third
Party Offer Notice” shall have the meaning set forth in Section 9.3.

 

“Wholesale
Acquisition Cost” or “WAC” shall mean the wholesaler acquisition cost for the Product in
the U.S.

 

2.          GRANT
OF RIGHTS

 

2.1           Exclusive
License

 

  2.1.1           Grant
of Exclusive License. Intercept hereby grants to DSP an exclusive, royalty-bearing license, including the right to grant
sublicenses in accordance with Section 2.1.2, under the Intercept Technology to research, Develop, have Developed, make, have made,
use, sell, offer for sale, have sold, import, have imported, export and have exported, register, for the purpose of Commercializing
the Product in the Territory, for any and all uses within the Field, subject to the terms and conditions of this Agreement. For
clarification, the Parties agree that DSP’s appointing a sublicensee to engage in the Manufacture of the Compound or the
Product outside the Territory for the Development and Commercialization of the Product inside the Territory shall not be deemed
a breach of this Agreement.

 

  2.1.2           Right
to Sublicense. After Intercept’s receipt of the Upfront Fee set forth in Section 9.1, DSP shall have the right to
grant sublicenses to any Affiliate or Third Party to all or any portion of its rights under the license granted to DSP pursuant
to this Section 2; provided, however, that (i) Intercept shall be notified of and approve the sublicensing arrangement, such approval
not to be unreasonably withheld, (ii) each such sublicensee agrees to be bound by all applicable Sections of this Agreement, and
(iii) DSP shall provide Intercept with a summary of such sublicensing agreements, to include (a) the country in the Territory applicable
to such sublicensee, (b) the full legal name of the sublicensee, (c) the applicable indications in the Field, (d) the term and
termination provisions of the sublicensing agreement, and (e) the standard of performance applicable to the sublicensee with respect
to its obligations under the sub-licensing agreement. Items (a)-(e) inclusive of item (iii) of the preceding sentence shall be
set forth in a format substantially similar to Exhibit B, which shall also be executed by the relevant sublicensee affirming
its understanding of and willingness to comply with Sections of this Agreement applicable to it.

 

  2.1.3           Patent
Challenge. Any challenge to the validity, scope or enforceability of any claim in an Intercept Patent by DSP or its Affiliates
shall constitute a material breach of this Agreement.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	10

    	 

    

 

2.2           Registration.
Upon DSP’s request, but only after Intercept’s receipt of the Upfront Fee set forth in Section 9.1, Intercept shall
use Commercially Reasonable Efforts, at DSP’s sole expense, to register a “Senyo-Jisshiken Tohroku”
(i.e. registration of the exclusive license with the Japanese Patent Office) for DSP (or the equivalent in any other country in
the Territory) with respect to the Intercept Technology and Intercept Patents, which registration shall be transferred or assigned
to DSP by Intercept immediately upon issuance for no additional consideration.

 

2.3           No
Implied Licenses; Retained Rights. Except as explicitly set forth in this Agreement, neither Party grants any license,
express or implied, under its intellectual property rights to the other Party, whether by implication, estoppel or otherwise

 

2.4           Bankruptcy-Related
Rights.

 

  2.4.1           U.S.
Bankruptcy Code 365(n). All rights and licenses granted under this Agreement are hereby deemed to be, for purposes of Section
365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(35A)
of the U.S. Bankruptcy Code. The Parties shall retain and may fully exercise all of their respective rights and elections under
the U.S. Bankruptcy Code. The Parties agree that DSP, as the licensee under this Agreement, shall retain and may fully exercise
all of its rights and elections under the U.S. Bankruptcy Code, and that upon commencement of a bankruptcy proceeding by or against
Intercept under the U.S. Bankruptcy Code, DSP shall be entitled to a complete duplicate of or complete access to any such intellectual
property and all embodiments of such intellectual property, provided that DSP continues to fulfill its payment or royalty obligations
in accordance with this Agreement. Such intellectual property and all embodiments thereof shall be promptly delivered to DSP (x)
upon any such commencement of a bankruptcy proceeding upon written request therefore by DSP, unless Intercept elects to continue
to perform all of its obligations under this Agreement or (y) if not delivered under (x) above, upon the rejection of this Agreement
by or on behalf of Intercept upon written request therefor by DSP. The foregoing is without prejudice to any rights DSP may have
against Intercept arising under the U.S. Bankruptcy Code or other applicable law.

 

  2.4.2           Intellectual
Embodiments. Each Party hereby acknowledges that (i) copies of research data (both clinical and non-clinical), (ii) laboratory
samples, (iii) product samples and inventory, (iv) formulae, (v) laboratory notes and notebooks, (vi) data and results related
to clinical and non-clinical trials, (vii) regulatory filings and approvals, (viii) rights of reference in respect of regulatory
filings and approvals, (ix) pre-clinical research data and results, and (x) marketing, advertising and promotional materials, constitute
“embodiments” of intellectual property pursuant to Section 365(n) of the Bankruptcy Code.

 

2.5           Bankruptcy
Assistance. Each Party agrees not to interfere with the other Party’s exercise of rights and licenses to intellectual
property licenses granted to the Party pursuant to Section 2.4
or under Section 365(n) of the U.S. Bankruptcy Code and embodiments
thereof in accordance with this Agreement and agrees to use Commercially Reasonable Efforts to assist the other Party to obtain
such intellectual property and embodiments thereof in the possession or control of Third Parties, as reasonably necessary for the
other Party to exercise such rights and licenses in accordance with this Agreement. 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	11

    	 

    

 

3.          GOVERNANCE

 

3.1          Joint
Steering Committee. The Parties shall use Commercially Reasonable Efforts to establish the JSC within sixty (60) days
after the Effective Date. The JSC shall engage in consultation, discussion and decision-making with respect to the following:

 

3.1.1           A
development plan for the Development of the Product in the Territory (the “Product Development Plan”) and any material
amendments thereto;

 

3.1.2           A
development plan for the Development of the Product and the Additional Indications by Intercept and/or its licensees outside the
Territory (the “Intercept Development Plan”), and any
material amendments thereto;

 

3.1.3           Clinical
trials to be conducted in connection with the Development of the Compound and the Product in the Field in the Territory; including,
as appropriate Phase I Clinical Trials, Phase II Clinical Trials, Phase III Clinical Trials and Phase IV Clinical Trials,
including review of synopses of clinical study protocols;

 

3.1.4           Nonclinical
studies, including CMC and formulations, to be conducted in connection with the Development of the Compound and the Product in
the Field in the Territory;

 

3.1.5           Development
of Additional Indications to be conducted outside the Territory by Intercept and/or its licensees in connection with the Additional
Indications Option;

 

3.1.6           Matters
related to Regulatory Approvals for Product in the Field in the Territory, including the formulation of a plan consistent with
this Agreement for the exchange of and reporting to Regulatory Authorities of safety data reported or arising in the course of
the Development;

 

3.1.7           The
activities of any sub-committees;

 

3.1.8           Encouraging
and facilitating communication between the Parties regarding the progress and results (whether preliminary or final) of the Development
and Manufacturing activities for the Compound and the Product in the Field in the Territory, including the coordination of clinical
and nonclinical data exchange and preparation of regulatory filings;

 

3.1.9           The
filing, maintenance, and abandonment, if any, of the Intercept Patents (including the Intercept Manufacturing Patents) and any
patents issued on Improvements or Joint Improvements, and all Patent Term Extensions;

 

3.1.10         Matters
relating to the Manufacture of the Clinical Supplies and the Commercial Supplies, including the details and timing of the Technical
Transfer; 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	12

    	 

    

 

3.1.11         Establish
internal rules for the governance and operation of the JSC; and

 

3.1.12         Such
other responsibilities as may be assigned to the JSC pursuant to this Agreement or as may be mutually agreed upon by the Parties
in writing from time to time.

 

3.2         JSC
Membership. The initial membership of the JSC shall be comprised of three (3) representatives designated by each of DSP
and Intercept, at least one (1) of whom from each Party shall
be senior enough within its respective organization to have the requisite decision-making authority with respect to the matters
set forth in Section 3.1 above, and all of whom shall have appropriate expertise and ongoing familiarity with the Development
and Manufacturing of the Product in the Field in the Territory. From time to time, the number and qualifications of the designated
members to the JSC may be changed by the mutual written agreement of the Parties, so long as an equal number of members from each
of DSP and Intercept is maintained. Each Party shall inform the other Party of its initial representatives to the JSC as soon
as practicable after the Effective Date. Each Party may also designate non-voting representatives to attend the meetings from
time to time as necessity requires, but only with the consent of the other Party. The JSC shall be chaired by a representative
from DSP, who shall be responsible for (i) calling meetings, (ii) preparing and issuing minutes of each such meeting as soon as
practicable following each meeting, and (iii) preparing and circulating an agenda for the upcoming meeting, which shall include
agenda items proposed by either Party no less than ten (10) calendar days prior to the next scheduled JSC meeting.

 

3.3         JSC
Meetings. The JSC shall hold meetings at least once every six months, and more frequently as necessity requires. The first
JSC meeting shall be held at a mutually agreed venue and date following the Effective Date. Meetings of the JSC shall be effective
only if at least one (1) representative of each Party is present or participating. The JSC may meet either (i) in person at either
Party’s facilities, or (ii) by audio or video teleconference. Additional meetings of the JSC may also be held with the consent
of each Party. Each Party shall be responsible for all of its own expenses incurred in connection with participating in the JSC
meetings or any of the other committee meetings.

 

3.4         Decision-Making.
The JSC shall endeavor to reach consensus on all matters brought before it pursuant to Section 3.1, with each Party having a single
vote, irrespective of the number of representatives actually in attendance at a meeting. The JSC shall use Commercially Reasonable
Efforts to resolve the matters brought before it pursuant to Section 3.1. DSP shall have the final decision making authority with
respect to Development of the Compound and Product in the Field in the Territory. In the event that either Party has concern about
whether the Development and the Commercialization of the Compound and/or the Product is reasonably likely to have a materially
negative impact on the Compound or the Product inside or outside the Territory, the Parties shall consult through the JSC for a
period of thirty (30) days; failing resolution of which, such matter shall be elevated to the CEO of Intercept and the CEO of DSP,
for attempted resolution in good faith within the time frame set forth in Section 16.1.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	13

    	 

    

 

3.5           Progress
Reports and Exhibit Amendments. At each meeting of the
JSC and, as applicable, that of any sub-committee or new committee established by the JSC, DSP shall provide Intercept with a written
report summarizing its activities and progress regarding the Development and Commercialization of the Compound and Product in the
Field in the Territory, including its marketing and promotional materials, which may, in DSP’s option, be in the local language
of the country in the Territory to which it pertains. At each meeting of the JSC, and, as applicable, that of any sub-committee
or new committee established by the JSC, Intercept shall provide DSP with a written report summarizing its Development activities
of the Compound and Product outside the Territory and its Development
activities of the Additional Indications outside the Territory. In addition, at each meeting of the JSC, each Party shall inform
the other of any Improvements conceived by or on behalf of such Party, as well as any Joint Improvements.
Notwithstanding Section 17.4, upon the notification to the JSC through a progress report (or otherwise) of the filing of
a patent application with respect to any Improvement or Joint Improvement, Exhibit A shall be deemed automatically amended,
and an updated version of Exhibit A shall be distributed to the Parties together with the meeting minutes.

 

3.6           Sub-committees.
From time to time, the JSC may establish and delegate duties to sub-committees to oversee particular projects or activities.
Each such sub-committee shall be constituted and shall operate as the JSC determines. Each sub-committee and its activities shall
be subject to the oversight, review and approval of, and shall report to, the JSC. It is contemplated that, at the appropriate
time, the JSC will expand its scope of activity to include consultation, discussion and decision-making with respect to Commercialization
or, alternatively, decide that a separate decision-making committee should be established to govern Commercialization planning
and implementation. In the case that the JSC decides that such a new committee should be established, such committee shall be formed
and governed according to the same principles as the JSC.

 

3.7           Alliance
Manager. Each Party shall designate an alliance manager, who shall be responsible for the day-to-day coordination of the
collaboration between the Parties and shall facilitate communication between the Parties. The Alliance Manager, may but need not
be, one of the designated members of the JSC.

 

4.           DEVELOPMENT
AND COMMERCIALIZATION 

 

4.1          Commercially
Reasonable Efforts.

 

4.1.1           DSP’s
Commercially Reasonable Efforts. From and after the
Effective Date, DSP shall use Commercially Reasonable Efforts to Develop and Commercialize the Compound and the Product in the
Field (including with respect to any Additional Indications) in the Territory. Subject to Section 9.4, DSP shall be responsible
for all costs and expenses incurred by it in connection with such Development and Commercialization activities.

 

4.1.2           Intercept’s
Commercially Reasonable Efforts. From and after the Effective Date, Intercept shall use Commercially Reasonable Efforts
to Develop the Compound and the Product anywhere outside the Territory, either on its own or through Third Party licensees or subcontractors.
In addition, from and after the Effective Date, Intercept shall (i) use Commercially Reasonable Efforts to Develop the Additional
Indications outside the Territory in accordance with the Intercept Development Plan outside the Territory and (ii) shall use Commercially
Reasonable Efforts to cause each of its licensees to use Commercially Reasonable Efforts to Develop the Additional Indications
outside the Territory.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	14

    	 

    

 

4.2          Information
and Data Exchange.

 

4.2.1           Intercept
Technology. No later than thirty (30) days following Intercept’s receipt of the Upfront Fee set forth in Section
9.1, Intercept shall transfer and otherwise make available to DSP, its Affiliates and its designated Third Party subcontractors
the Intercept Technology and all material information and data relating thereto to enable DSP to engage in the Development and
Commercialization of the Product in the Field in the Territory. The transfer of the Intercept Technology and related information
and data shall be made in readily accessible electronic format wherever possible. Following the payment of the “Upfront Payment”
pursuant to Section 9.1, Intercept shall, for no additional consideration, undertake to provide reasonable assistance DSP, its
Affiliates and sublicensees.

 

4.2.2           Non-Territory
Data. Intercept shall make available to DSP, its Affiliates and Third Party subcontractors any clinical and non-clinical
data, post-marketing data and information which is generated by or in connection with Intercept and its licensees’ Development
of the Compound and Product, both in the Field and with respect to Additional Indications outside the Territory (the “Non-Territory
Data”), which data and information may be used by DSP for [***] in connection with its Development, Commercialization
and/or Manufacturing, as well as its activities to gain Regulatory Approval for the Product in the Field in the Territory.
Intercept shall maintain Non -Territory Data in conformity with all applicable Laws and regulations and in a good scientific manner
appropriate for patent and regulatory purposes. Intercept shall use Commercially Reasonable Efforts to cause any Third Party or
Affiliate who is engaged in the Development of the Compound or Additional Indications outside the Territory to provide access to
DSP and its Affiliates for the Non-Territory Data for [***].

 

4.3          Necessary
Third Party Patents. In the event that DSP determines, in the exercise of sound business judgment, it is necessary to license
or acquire Necessary Third Party Patents in connection with the Development, Manufacture or Commercialization of the Product in
the Field in the Territory, it shall so notify Intercept in writing explaining the reasons therefor, following which the Parties
shall engage in good faith discussions concerning such matter. DSP’s request for Necessary Third Party Patents shall require
Intercept’s prior consent, which shall not be unreasonably withheld or delayed.

 

4.4           Records.
 DSP shall maintain scientific records, in sufficient detail and in good scientific manner appropriate for patent and regulatory
purposes, which will fully and properly reflect all work done and results achieved in the performance of the Development and Commercialization
activities with respect to the Product in the Field in the Territory; all of the foregoing in conformity with standard pharmaceutical
industry practices, the terms and conditions of this Agreement, and all applicable Laws and regulations (including re-examination
systems for post-marketing information). DSP shall provide Intercept with reasonable access to the scientific records maintained
by DSP pursuant to this Section 4.4 which may be used by Intercept in pursuance of its Development activities for the Compound
and the Product outside the Territory.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	15

    	 

    

 

4.5           Cooperation.
Except as expressly forth herein, each Party shall, at its own cost and expense, provide all reasonable assistance and take all
actions reasonably requested by the other Party that are necessary or desirable to enable the Development and Commercialization
of the Product in the Field in the Territory. Further, Intercept shall provide reasonable assistance to DSP to prepare the regulatory
materials for Regulatory Approval and to respond to Regulatory Authorities’ inquiries and investigation relating to analysis
of data arising from non-clinical studies, pre-clinical studies and/or clinical trials conducted by Intercept. In the event that
a Regulatory Authority and/or DSP reasonably requests Intercept to disclose its data and documentation related to the Intercept
Technology for an IND or NDA to be prepared or filed outside the Territory, Intercept shall cooperate with this request by providing
such Regulatory Authority and DSP with the requested data and documentation. In the event that DSP reasonably requests to audit
Intercept and its sub-contractors or licensees, Intercept shall, and shall cause its licensees and sub-contractors to, allow such
audit, subject to customary prior notice requirements.

 

5.           REGULATORY
MATTERS

 

5.1           Commercially
Reasonable Efforts. DSP shall use Commercially Reasonable Efforts, at its own expense, with respect to all regulatory activities
concerning the Development and Commercialization of the Products in the Field in the Territory. DSP shall have sole responsibility
for all pricing and reimbursement approval proceedings relating to each Product in the Field in the Territory. In the event
that DSP wishes to commence Development of the Product in China following Intercept’s receiving Regulatory Approval in the
U.S. and prior to the receipt of Regulatory Approval in Japan, Intercept shall cooperate with DSP based on mutual good faith discussions.
Upon reasonable prior notice and during normal business hours, Intercept shall, and shall cause its Affiliates and its Third Party
sub-contractors to whom all or a part of the Development outside the Territory has been entrusted or contracted, to allow the inspection
by a Regulatory Authority which is required as a condition of Regulatory Approval for the Product in the Field in the Territory.
DSP shall use its Commercially Reasonable Efforts to provide any information concerning such inspection to Intercept in a timely
manner. Intercept shall manage, but shall permit DSP or its designated representatives to be present at any inspection conducted
by such Regulatory Authority. If any issue or concerns are raised concerning the Development of the Compound or the Product in
connection with the inspection by such Regulatory Authority, Intercept shall immediately inform and discuss with DSP to solve the
issue, including any recommendations made by the Regulatory Authority.

 

5.2           Ownership
of Regulatory Approvals. DSP (or its designated Affiliate or sublicensee) shall be the holder of all Regulatory Approvals
issued by Regulatory Authorities with respect to the Product in the Field in the Territory and shall be responsible, at its own
cost, for preparing and, subject to Section 5.1 hereof, drafting all regulatory filings in the Territory (including any supplements
or modifications thereto). DSP (or through its designated Affiliate or sublicensee) shall, subject to Section 5.1 above, be responsible
for communicating with and negotiating with all Regulatory Authorities in the Territory and shall keep Intercept informed of the
status of regulatory filings.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	16

    	 

    

 

5.3           Pharmacovigilance.
The Parties agree to handle safety information including adverse events occurring or having occurred in connection with the
use of the Compound or the Product in accordance with applicable Laws and requirements of relevant Regulatory Authorities. The
Parties shall exchange all safety information including adverse events occurring or having occurred in connection with the use
of the Compound or the Product. The Parties shall execute a separate agreement relating to safety matters on the Compound or the
Product including the procedure for the exchange of safety information during the Term of the Agreement.

 

6.           MANUFACTURING

 

6.1           Clinical
Supply. Intercept shall, by itself or through its Third Party contract manufacturers, supply to DSP (or its Affiliates,
sublicensees or sub-contractors) all quantities of Clinical Supplies of the Product (packaged or prepackaged) required by DSP to
Develop the Product in the Field in the Territory and for quality control analysis. The Parties shall discuss in good faith and
cooperate with each other with respect to the negotiation of a manufacturing and clinical supply agreement (the “Clinical
Supply Agreement”) governing the supply of Clinical Supplies of the Product (packaged or pre-packaged). Intercept undertakes
to improve quality assurance system and /or organization to
supply DSP (or its Affiliates, sublicensees or sub-contractors) with Clinical Supply, including permitting and causing any of its
Third Party sub-contractors to permit, an audit by DSP for quality assurance purposes. The Clinical Supply Agreement shall include,
among other customary provisions, the following or substantially equivalent provisions:

 

  6.1.1           Intercept
shall, before entering into any negotiations for an agreement with a Third Party contract manufacturer of Clinical Supplies for
supply to DSP (or its Affiliates, sublicensees or sub-contractors) hereunder notify DSP of the fact. Thereafter, DSP shall have
the right to provide input within thirty (30) days regarding the terms of such agreement (as well as any amendments thereof), review
and comment on the draft agreement and participate in person in the negotiation of such agreement. However, Intercept shall have
final determination of the terms. Further, Intercept shall provide DSP with an execution copy of each agreement between
Intercept and any Third Party contract manufacturer.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	17

    	 

    

 

6.1.2           From
time to time, DSP shall submit to Intercept purchase orders for quantities of Clinical Supplies and Intercept shall supply or have
supplied to DSP such quantities of Clinical Supplies.  DSP’s sole financial liability with respect to Clinical Supplies
shall be to reimburse Intercept for the Actual Costs. DSP shall provide Intercept with non-binding forecasts of DSP’s purchase
orders for Clinical Supplies which may be placed for the initial [***] ([***]) [***] after the Effective Date, and thereafter DSP
shall provide Intercept with non-binding forecasts of DSP’s purchase order for Clinical Supplies [***] ([***]) [***] prior
to the estimated date of placing the purchase order. The purchase orders for Clinical Supplies shall be placed to allow no less
than [***] ([***]) [***] lead time prior to the shipment dates specified in the purchase orders, and upon placement shall be deemed
non-cancelable, unless Intercept indicates that it does not have sufficient stock of Clinical Supplies to accommodate the lead
time specified in DSP’s purchase order, in which event the lead time for the Clinical Supplies for such order shall be determined
by mutual agreement of Intercept and DSP through good faith discussions; provided that should the Parties not reach agreement on
an adjusted lead time, then DSP may cancel the relevant purchase order. Notwithstanding the foregoing, Intercept shall use best
reasonable efforts to comply with the purchase orders. The risk of loss and damage for, and the title in, Clinical Supplies supplied
hereunder shall pass to DSP upon delivery of the Clinical Supplies to the carrier designated by DSP. Shipment shall be FCA an international
airport or port designated by Intercept as defined in INCOTERMS 2010, as amended. DSP may at any time elect to Manufacture or have
Manufactured the Clinical Supplies, provided such election will not terminate any purchase orders for Clinical Supplies submitted
by DSP to Intercept prior to notice of such election.

 

6.1.3           Intercept
shall invoice DSP for such Clinical Supplies with each shipment, clearly setting forth the calculation of the Actual Cost for the
shipped order of the Clinical Supplies and DSP shall pay such invoices within thirty (30) days of its receipt of such invoice.

 

6.2         Commercial
Supply. Intercept shall supply DSP (or its Affiliates, sublicensees or sub-contractors) with all DSP’s requirements
of the Commercial Supplies until such time as DSP provides written notice to Intercept that DSP is ready to commence Manufacturing
(or have Manufactured) of the Product on its own or on its behalf. Intercept shall be responsible for the Manufacture of the Commercial
Supplies in compliance with the Specifications, GMP and all applicable Laws. The Parties shall discuss in good faith and cooperate
with respect to the negotiation of a manufacturing and supply agreement (the “Commercial Supply Agreement”) governing
the supply of the Commercial Supply by or on behalf of Intercept, to DSP (or its Affiliates, sublicensees or sub-contractors) for
the Commercialization of the Product in the Field in the Territory at the initiation of the Phase III Clinical Trials in Japan.
In the event that manufacturing batches for the U.S. are conducted prior to the commencement of Phase III Clinical Trials in Japan,
Intercept shall afford DSP a reasonable opportunity to comment upon and make suggestions with respect to such manufacturing validation,
which Intercept shall use good faith efforts to incorporate on a going-forward basis. The Commercial Supply Agreement shall contain,
in addition to other customary terms, the following terms and conditions:

 

6.2.1           The
transfer price for the first three orders of the Commercial Supply supplied to DSP by or on behalf of Intercept following receipt
of Marketing Approval in Japan shall be calculated at the rate of [***] percent ([***]%) of [***] in effect on the date upon which
each such order is sent to Intercept by DSP.

 

6.2.2           The
fourth and subsequent orders of the Commercial Supply supplied to DSP by or on behalf of Intercept following receipt of Marketing
Approval in Japan shall be based on the Actual Cost plus [***] percent ([***]%) of the Actual Costs. The target actual cost is
less than or equal to $[***] (the “Target Actual Cost”). In the event that the Actual Cost exceeds such Target Actual
Cost, Intercept shall use Commercially Reasonable Efforts to reduce the Actual Cost. Should that not be possible, the Parties shall
discuss in good faith an increased Target Actual Cost for the Product.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	18

    	 

    

 

6.2.3           Intercept
shall, before entering into any negotiation for an agreement with a Third Party contract manufacturer of Commercial Supplies to
DSP hereunder, notify DSP of the fact. Thereafter, DSP shall have the right to provide input regarding the terms of such agreement
(as well as any amendments thereof), review and comment on the draft agreement and participate in person in the negotiation of
such agreement.  Further, Intercept shall provide DSP with an execution copy of each agreement between Intercept and any
Third Party contract manufacturer.

 

6.3         Additional
Supply Terms and Conditions. In addition to the supply terms and conditions to be incorporated in the Clinical Supply Agreement
and the Commercial Supply Agreement pursuant to Sections 6.1 and 6.2 respectively, each of the Clinical Supply Agreement and the
Commercial Supply Agreement shall also include provisions substantially similar to the following:

 

6.3.1           Conformity.
All Products Manufactured and supplied by or on behalf of Intercept under each of the Clinical Supply and the Commercial Supply
Agreement shall strictly conform to (i) the Specifications and (ii) GMP.

 

6.3.2           Change
Control. If Intercept wishes to change the Specifications, the location of the Manufacturing site, the Manufacturing process,
or the raw materials, which in the case of each of the foregoing requires approval of the Regulatory Authorities, Intercept shall
first obtain the prior written consent of DSP (not to be unreasonably withheld) and provide the information relevant to such proposed
change to DSP, following which DSP shall use Commercially Reasonable Efforts to obtain any required approval from the Regulatory
Authorities. Intercept shall provide DSP with all reasonable assistance with respect to the foregoing. When Intercept wishes to
make any change in the Manufacturing process or the raw materials which, in either case, is subject to a reporting or notification
requirement to Regulatory Authorities, Intercept shall notify DSP sufficiently in advance so that DSP may comply with such reporting
or notification requirements. Prior to initiating any change in the Specifications, the location of the Manufacturing site, the
Manufacturing process, or the raw materials, Intercept and DSP shall discuss in good faith and agree upon the quantity of a reasonable
safety stock of the Product to be maintained until completion of the any proposed change.

 

6.3.3           GMP
Audit by DSP. DSP may audit the facilities of Intercept, its Affiliates or its Third Party subcontractors upon reasonable
prior notice and during normal business hours. Intercept shall allow and shall cause its Affiliate or its Third Party subcontractors
to allow such inspection to the extent such facilities relate to the Manufacture of the Compound and/or the Product. Intercept
shall, and shall cause its Affiliates and Third Party sub-contractors, to use Commercially Reasonable Efforts to implement changes
reasonably requested by DSP as a result of any GMP audit undertaken pursuant to the preceding sentence.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended. 

    	19

    	 

    

 

6.3.4           Inspection
by Regulatory Authority. Upon reasonable prior notice and during normal business hours, Intercept shall allow, and shall
cause its Affiliates and its Third Party subcontractors to whom all or a part of the Manufacturing process of the Compound and/or
the Product has been entrusted or contracted to allow, the inspection by the Regulatory Authority which is required as a condition
for obtaining or maintaining Regulatory Approval for the Product in the Field in the Territory. DSP shall use its Commercially
Reasonable Efforts to provide any information concerning such audit to Intercept in a timely manner. Intercept shall permit DSP
or its designated representatives to be present at any audit conducted by any Regulatory Authority pursuant to this Section 6.3.4.
If any issue or concerns are raised concerning the Manufacturing of the Compound or Product in connection with the audit by such
Regulatory Authority, Intercept shall immediately inform DSP, including any recommendations made by the Regulatory Authority.

 

6.3.5           Quality
Assurance Agreement. The Parties shall enter into a mutually agreed-upon companion quality agreement (the “Quality
Assurance Agreement”) with respect to each of the Clinical Supply Agreement and the Commercial Supply Agreement, which shall
set forth in detail the quality assurance arrangements and procedures of the Product and the GMP responsibilities between the Parties
prior to the Manufacture of the Compound to be used for the first commercial lot of the Product.

 

6.4         Technical
Transfer. In the event that DSP wishes to commence the Manufacture of the Compound and/or Product itself (including having
the Product Manufactured), DSP shall raise the issue to the JSC for consultation with Intercept with respect to the timing and
other related details of the Technical Transfer of the Intercept Manufacturing Technology so to enable DSP to Manufacture or have
Manufactured the Compound and the Product for Commercialization in the Territory.

 

6.4.1           Immediate
Transfer. Following consultation with the JSC, Intercept shall use Commercially Reasonable Efforts to make available, or
cause to be made available, in either case, within sixty (60) days to DSP, its Affiliates, and its designated Third Party subcontractors,
all relevant information, data, and Intercept Know-How relating to the Intercept Manufacturing Technology. To give effect to the
foregoing, DSP shall have the right to obtain transfer and Intercept shall have the obligation to give immediate transfer free
of charge to DSP, its Affiliates and its designated Third Party subcontractors, without undue delay, of any and all Intercept Manufacturing
Technology necessary to enable DSP to Manufacture or have Manufactured the Compound and/or Product by a Third Party subcontractor
to meet DSP’s requirements (the foregoing, the “Technical Transfer”).

 

6.4.2           Additional
Licenses. In connection with the Technical Transfer, Intercept hereby grants to DSP a non-exclusive right, non-royalty-bearing
license, with the right to sublicense to its Affiliates and Third Party subcontractors, with prior notice to and reasonable approval
of Intercept, to use the Intercept Manufacturing Technology both in the Territory and outside the Territory to engage in the Manufacture
of the Compound and/or Product for Commercialization in the Territory. If any Intercept Manufacturing Technology is within the
control or possession of a Third Party, Intercept shall use Commercially Reasonable Efforts to obtain the cooperation and assistance
of such Third Party in connection with the Technical Transfer.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	20

    	 

    

 

6.4.3           Assistance
and Continued Supply Obligation. Both Parties acknowledge that the process of DSP’s becoming manufacturing-ready
may require reasonable assistance from Intercept, which Intercept agrees to provide as reasonably requested. At the request of
DSP made pursuant to Section 6.4, Intercept shall facilitate the transfer of the Intercept Manufacturing Technology from Intercept’s
contract manufacturers to DSP and/or its contract manufacturers, in which case the expenses reasonably incurred for the Technical
Transfer shall be borne by DSP. During the Term of this Agreement, Intercept shall remain available to answer technology transfer
questions relating to the Intercept Manufacturing Technology. In the event DSP should require any additional technical assistance
beyond the Term of this Agreement, Intercept shall provide such assistance at DSP’s expense to the extent Intercept has personnel
available. Intercept makes no warranty, express or implied, with respect to the Intercept technical assistance. Further, Intercept
shall supply the Clinical Supplies and Commercial Supplies to DSP hereunder until DSP indicates that it is ready to Manufacture
or have Manufactured the Compound or Product. If, notwithstanding Intercept’s Commercially Reasonable Efforts, Intercept
reasonably determines that Manufacture and supply of the Commercial Supply are not practicable for a technical and/or economic
reason, Intercept’s commitment to supply Product may be terminated upon three (3) years prior written notice to DSP, in which
event Intercept shall, (i) at DSP’s option, (x) assign to DSP certain contracts between Intercept and its subcontractors
which are selected by DSP or (y) arrange for DSP to negotiate its own terms and conditions with Intercept’s subcontractors
designated by DSP, and (ii) bear all reasonable cost and effects arising in connection with the Technical Transfer.

 

7.           ADDITIONAL
INDICATIONS OPTION

 

7.1           Development
of Additional Indications for Products. The Parties shall cooperate in good faith in generating ideas and concepts for
Additional Indications for Products.

 

7.2           Grant
of Option. Subject to the terms and conditions of this Agreement and throughout the Term of the Agreement, Intercept hereby
grants to DSP the exclusive option to an exclusive license to Products in the Territory for each and every Additional Indication
(both present and future) on the same terms and conditions as provided for the Product in the Field (each such Additional Indication,
an “Additional Indication Option”). For the avoidance of doubt, the rights granted to Intercept pursuant to Section
7.3.3 below with respect to Third Parties shall have effect only in the event that DSP declines to exercise a particular Additional
Indications Option.

 

7.3           Exercise
Period; Exercise of Additional Indications Option. The period during which DSP may exercise each Additional Indications
Option shall commence on the date that Intercept notifies DSP in writing of the “first patient” in a Phase III Clinical
Trial for the target Additional Indication by Intercept and/or its licensees outside the Territory (the “Additional Indications
Option Commencement Notice”) and shall end on the [***] ([***]) [***] of the receipt by DSP of the Additional Indications
Option Commencement Exercise Notice (the foregoing period, the “Additional Indications Exercise Period”). DSP may exercise
each Additional Indications Option at any time during the Additional Indications Exercise Period by (i) providing written notice
to Intercept that DSP has obtained required internal approvals to commence a pivotal clinical study for the target Additional Indication
(the “Additional Indications Option Exercise Notice”) and (ii) making payment of the applicable fee indicated in Section
7.3.1 below to a bank account designated by Intercept (each payment, an “Additional Indications Option Fee”) within
thirty (30) calendar days of dispatch of the Additional Indications Option Exercise Notice. The Additional Indications Option shall
be deemed duly exercised on the date when Intercept has received both items (i) and (ii) (the “Additional Indications Option
Effective Date”).

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	21

    	 

    

 

7.3.1           Additional
Indications Option Fee. The Additional Indications Option Fee shall be US$[***] ([***] U.S. Dollars) for each Additional
Indication. For the sake of clarity, no Additional Indications Option Fee is required to be paid upon the exercise of any Additional
Indications Option in China. Upon the exercise of each Additional Indications Option, DSP shall be entitled to exercise the rights
granted to it under Section 7.1 with respect to the target Additional Indication in the Territory as it is constituted on the Additional
Indications Option Effective Date and as it may thereafter be constituted through the exercise by DSP of the Country Option.

 

7.3.2           License
Grant. Following each Additional Indications Option Effective Date, (i) the definition of “Field” shall be
automatically amended and expanded to include the target Additional Indication and (ii) Intercept shall provide DSP with any copies
and access to any Know-How or Technology in its Control relating to the target Additional Indication.

 

7.3.3           Non-Exercise
of Additional Indication Option.  If DSP declines in writing to exercise any particular Additional Indications Option within
the Additional Indications Exercise Period, then Intercept may grant the right to a Third Party to develop and commercialize the
target Additional Indication in the Territory; provided that should any discussions with a Third Party not result in a binding
written agreement for the target Additional Indication, then DSP’s Additional Indications Option with respect to such target
Additional Indication shall revive and the provisions of Article 7 shall apply thereto.

 

7.4.          Separate
Nature. For the sake of clarification, the exercise of the Additional Indications Option by DSP in connection with one
of the Additional Indications shall not be construed as relieving Intercept of the obligation of complying with Articles 7.1-7.3
above with respect to each Additional Indication.

 

8.          COUNTRY
OPTION

 

8.1           Grant
and Exercise of Country Option. Intercept hereby grants to DSP the exclusive option to add any or all of the following
countries to the Territory: Korea, Taiwan, Malaysia, Vietnam, the Philippines, Thailand, Singapore and Indonesia (the “Country
Option”). DSP shall have a separate exclusive option with respect to each of the countries listed in the preceding sentence,
such that the exercise by DSP of the Country Option with respect to one country shall not be deemed a waiver of its rights with
respect to the other countries listed in the first sentence of this Section 8.1. Upon the exercise of the Country Option by DSP
with respect to any particular country, such country shall be automatically deemed a part of the Territory. The exercise of the
Country Option with respect to one country shall automatically include all Fields in the Territory.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	22

    	 

    

 

8.2           Country
Option Fee. The Country Option shall be exercisable at DSP’s discretion at any time from the Effective Date to the
date of issuance of Marketing Approval for Commercialization of the Product in the Field in Japan by providing written notice of
its intent to the exercise the Country Option (the “Country Option Exercise Notice”). DSP shall pay an exercise fee
of US$[***] ([***] U.S. Dollars) per each country, due within [***] ([***]) [***] following exercise of the relevant Country Option.
Unless exercised in accordance with this provision, or as otherwise set forth in this Agreement, the Country Option shall expire
on the date upon which Regulatory Approval for the sale of the Product in the Field in Japan is issued.

 

8.3           Third
Party Offers. Notwithstanding the exclusive option granted to DSP in Section 8.1 hereof, following the [***] ([***]) [***]
of the Effective Date, in the event that Intercept desires to accept or make a bona fide offer from a Third Party for the exclusive
development and/or commercialization rights for the Product in countries listed in the first sentence of Section 8.1 (the “Target
Country”), Intercept shall immediately notify DSP in writing and indicate the Target Country, desired indications, and provide
a summary of the material financial terms and conditions of the offer (the “Third Party Offer Notice”). Within forty-five
(45) calendar days of receipt of the Third Party Offer Notice, DSP shall notify Intercept in writing whether or not it wishes to
exercise the Country Option for the Target Country (the “Country Exercise Option Notice”). If DSP desires to exercise
the Country Option for the Target Country, DSP shall make the payment of the Country Option Fee for the Target Country to a bank
account designated by Intercept no later than thirty (30) calendar days following dispatch of the Country Exercise Option Notice.
If DSP declines to exercise the Country Option for the Target Country, then Intercept shall be free to negotiate with the Third
Party on terms no less materially favorable than those contained in the Third Party Offer Notice; provided that should such negotiations
fail, then DSP’s Country Option shall revive with respect to the Target Country.

 

8.4           Right
of First Negotiation. Prior to accepting or making a bona fide offer from or to a Third Party with respect to the exclusive
development and commercialization rights for the Compound in the Field (including all Additional Indications) in the U.S. and Canada,
Intercept shall promptly deliver a written notice thereof to DSP. Intercept and DSP shall engage in good faith negotiations, but
to avoid any confusion, Intercept shall also be free to engage in good faith negotiations with such Third Party Offeror; provided
that should the parallel discussions between Intercept and such Third Party and Intercept and DSP not result in a binding agreement,
then this Right of First Negotiation shall revive with respect to any subsequent offers from or to third parties with respect to
the rights described in this Section 8.4. Further, in the event that DSP terminates the Agreement based on the cessation of development
of the Compound or the Product by Intercept, then immediately following such termination, DSP and Intercept shall engage in good
faith discussions concerning the exclusive development and commercialization rights for the Compound in the Field (including all
Additional Indications) in the U. S. and Canada.

 

9.           PAYMENTS

 

9.1           Upfront
Fee. DSP shall make a one-time, non-refundable, non-creditable payment to Intercept of US$15,000,000 (Fifteen Million Dollars)
(“Upfront Fee”) within thirty (30) calendar days of the Effective Date to a bank designated in writing by Intercept.
It is acknowledged that this upfront fee shall include the consideration for the rights granted to DSP in Section 8.4. All references
to “fiscal year” shall refer to the Japanese fiscal year which ends on March 31 of each calendar year and indicate
that it applies to all sub-sections in Article 9 and also Article 10.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	23

    	 

    

 

9.2           Milestone
Payments. The milestone payments set forth in this Section 9.2 shall be paid only once, upon the first achievement
of the applicable milestone event in the applicable listed geographic area. For purposes of determining whether a milestone event
set forth in Sections 9.2.2 and 9.2.3 has occurred (and without creating an obligation to pay the milestone more than once
as set forth in the preceding sentence), Net Sales for each fiscal year shall be aggregated for all Products sold in the Territory
during the relevant fiscal year.

 

9.2.1           Within
thirty (30) calendar days following the occurrence of each of the events set forth below for the Product, DSP shall pay to Intercept
each of the non-refundable, non-creditable milestone payments set forth below:

  

	Milestone Event

Development Milestones	 	Milestone Payment	 
	 	 	 	 	 
	Japan	 	 	 	 
	PBC-Commencement of Phase III Clinical Trial	 	US$	[***]	 
	PBC-Marketing Approval	 	US$	[***]	 
	NASH-2nd indication-Marketing Approval	 	US$	[***]	 
	Additional Indications-Marketing Approval	 	US$	[***]	 
	 	 	 	 	 
	China	 	 	 	 
	PBC-Commencement of Phase III Clinical Trial	 	US$	[***]	 
	PBC-Marketing Approval	 	US$	[***]	 
	NASH-2nd indication-Commencement of Phase III Clinical Trial	 	US$	[***]	 
	NASH-Marketing Approval	 	US$	[***]	 
	Additional Indications-Commencement of Phase III Clinical Trial	 	US$	[***]	 
	Additional Indications-Marketing Approval	 	US$	[***]	 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	24

    	 

    
 

	United States	 	 	 	 
	PBC-Marketing Approval	 	US$	[***]	*
	NASH Successful NIH Clinical Trial	 	US$	[***]	**
	NASH-Marketing Approval	 	US$	[***]	***
	 	 	 	 	 
	Other Asian countries	 	 	 	 
	PBC-Initiation of clinical trial	 	US$	[***]	 
	PBC-Marketing Approval	 	US$	[***]	 
	Additional Indications-Initiation of clinical trial	 	US$	[***]	 
	Additional Indications-Marketing Approval	 	US$	[***]	 

  

*In the event that the WAC exceeds US$[***]
per day before approval in Japan, then an amount of US$[***] shall be paid as an additional milestone payment (i.e., a total of
US$[***]).

 

**The milestone payment for the NASH NIH
clinical trial is conditioned on the results being available no later than [***], and supporting a decision by the JSC to continue
Development of the Product for the NASH indication.

 

***In the event that (i) the NASH Marketing
Approval in the U.S. occurs prior to the end of 2017 (i.e., based on a sNDA submission of the NIH clinical trial data) and DSP
is able to use these data in support of a NDA submission in Japan, then the additional amount of US$[***] shall be paid (i.e.,
a total of US$[***]); but (ii) if the NASH Marketing Approval in the U.S. occurs after the Marketing Approval in Japan, then no
milestone payment of US$[***] as set forth in the chart above shall be due.

 

9.2.2           Sales
Milestones. Within sixty (60) calendar days following the end of each calendar quarter in which any event set forth below
occurs, DSP shall notify Intercept of such event via the reports as indicated in Section 10.1 and within sixty (60) calendar days
following the end of such calendar quarter shall pay to Intercept each of the non-refundable, non-creditable milestone payments
set forth below. For the avoidance of doubt, in the event that two or more of the events set forth below occur during the same
calendar quarter, then DSP shall pay to Intercept the aggregate of the applicable sales milestone payments set forth below in the
manner set forth in the first sentence of this Section 9.2.2.:

 

	Net Sales exceed US$[***] (one time only payment)	 	US$	 	[***]	 
	Net Sales exceed US$[***] (one time only payment)	 	US$	 	[***]	 
	Net Sales exceed US$[***] (one time only payment)	 	US$	 	[***]	 
	Net Sales exceed US$[***] (one time payment only)	 	US$	 	[***]	 
	Net Sales exceed US$[***] (one time payment only)	 	US$	 	[***]	 

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	25

    	 

    
 

9.2.3           Royalty
Tiers. DSP shall pay to Intercept a royalty of [***] percent ([***]%) based on total annual Net Sales of all Products in
the Field in the Territory for each fiscal year (i.e. ending on March 31 of each calendar year) in which the Net Sales of all Products
in the Territory for such year is less than US$[***] (the “First Tier Royalty Rate”). DSP shall pay to Intercept a
royalty of [***] percent ([***]%) based on total annual Net Sales of all Products in the Field in the Territory for each fiscal
year in which the Net Sales of all Products in the Territory for such year is US$[***] or more but less than US$[***] (the “Second
Tier Royalty Rate”). DSP shall pay to Intercept a royalty of [***] percent ([***]%) based on total annual Net Sales of all
Products in the Field in the Territory for each fiscal year in which the Net Sales of all Products in the Territory for such year
exceeds US$[***] (the “Third Tier Royalty Rate”). Notwithstanding the foregoing, the transfer price for the [***] of
the Commercial Supplies to DSP by Intercept following receipt of Marketing Approval in Japan shall be calculated in accordance
with Section 6.2.1 and shall be deemed to including the running royalty payment, and accordingly no further royalty payments by
DSP shall be required with respect thereto; however in no event will the transfer price be less than the [***] percent ([***]%)
plus the applicable First, Second or Third Tier Royalty Rate.

 

9.3           Reduced
Royalty Rates for Net Sales 

 

9.3.1           Reduced
Royalty Rates in Countries Excluding Japan. If at any time [***] of the First Commercial Sale in a country in the Territory
(excluding Japan), a generically equivalent product enters the market and captures more than [***] percent ([***]%) of the market
share as determined by unit sales (“Market Share”) for [***], then the country shall be designated an “Eroded
Country” beginning the first day of the next calendar quarter. For the purpose of determining royalty payments due on an
Eroded Country’s Net Sales, total annual Net Sales will be assessed country-by-country and not aggregated with other country
Net Sales in the Territory. The reduced royalty rates that shall apply in an Eroded Country are as follows:

 

		i.	Eroded Country Net Sales up to US$[***] assessed at [***] percent ([***]%); and

		ii.	Eroded Country Net Sales of US$[***] up to (but less than) US$[***] assessed at [***] percent ([***]%); and

		iii.	Eroded Country Net Sales of US$[***] or more assessed at [***] percent ([***]%).

 

Thereafter, DSP’s Market Share in
each subsequent calendar quarter will be assessed and if the Market Share is restored to [***] percent ([***]%) or above then the
royalty rates set forth in Section 9.2.3 shall apply again to Net Sales in that country, which shall be aggregated with all other
Net Sales (excluding Eroded Country Net Sales), and if the Market Share remains or falls back below [***] ([***]%) in any calendar
quarter, then the Eroded Country reduced royalty rates set forth in this Section 9.3.1 shall apply. The JSC shall be responsible
for determining the most effective means to implement an effective Market Share, Net Sales and royalty tracking system in the Territory
in order to give effect to DSP’s royalty payment obligations hereunder.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	26

    	 

    

  

9.3.2           Reduced
Royalty Rates in Japan. The royalty rates set forth in Section 9.2.3 shall remain in effect with respect to total annual
Net Sales in Japan until such time as (i) the substance patent in Japan expires (after taking into account all available extensions)
and (ii) a generically equivalent product enters the market and captures more than [***] percent ([***]%) of the Market Share for
[***]. Thereafter, beginning the first day of the next calendar quarter, Japan shall be designated an Eroded Country and DSP shall
pay Intercept a reduced royalty of [***] percent ([***]%) on total annual Net Sales in Japan for [***] of such designation, [***]
percent ([***]%) on total annual Net Sales for the [***] of such designation, and then [***] percent ([***]%) on total annual Net
Sales thereafter. Once Japan has been designated as an Eroded Country, DSP’s Market Share in each subsequent calendar quarter
will be assessed and if the Market Share is restored to [***] percent ([***]%) or above then the royalty rates set forth in Section
9.2.3 shall apply again to Net Sales in Japan, which shall be aggregated with all other Net Sales (excluding Eroded Country Net
Sales), and if the Market Share remains or falls back below [***] percent ([***]%) then the Eroded Country reduced royalty rates
set forth in this Section 9.3.2 shall apply at the applicable royalty rate based on the cumulative number of quarters that had
previously passed while Japan had been designated an Eroded Country. The JSC shall be responsible for determining the most effective
means to implement an effective Market Share, Net Sales and Royalty tracking system in the Territory in order to give effect to
DSP’s royalty payment obligations hereunder.

 

9.4           Necessary
Third Party Technology Payments. DSP shall be entitled to deduct [***] percent ([***]%) of all royalties it is required
to pay to a Third Party for Necessary Third Party IP under any agreement to license or acquire intellectual property used in the
Development or Commercialization of the Product in the Field in the Territory up to a maximum of [***] percent ([***]%) for purposes
of Section 9.2.3, or [***] percent ([***]%) for purposes of Section 9.3.1 or 9.3.2 of the applicable royalty rate.

 

10.         PAYMENT;
RECORDS; AUDITS

 

10 .1Payment;
Reports.  Royalties shall be calculated and reported during the fiscal year for each calendar quarter. All payments due
to Intercept under this Agreement shall be paid within sixty (60) calendar days after the end of each calendar quarter. DSP shall
deliver to Intercept (i) within thirty (30) calendar days after the end of each calendar quarter a report of gross sales of Product
in the Territory and (ii) within sixty (60) days after the end of each calendar quarter, a report certified by DSP as accurate
to the best of its ability based on information then available to DSP, setting forth for such calendar quarter the following information
on a country-by-country basis and other such information to permit confirmation of the accuracy of the information for which payments
are calculated including: (i) gross and Net Sales of Product, (ii) the basis for any adjustments to the royalty payable
for the sale of Product, and (iii) the royalty due hereunder for the sale of Product. All payments hereunder shall be payable
in U.S. dollars. All payments owed under this Agreement shall be made by wire transfer in immediately available funds to a bank
and account designated in writing by Intercept. Conversion of foreign currency to U.S. Dollars shall be made at the Telegraphic
Transfer Selling (TTS) rate published by Sumitomo Mitsui Banking Corporation or any other mutually agreed upon source, in effect
on the last day of each calendar month within each calendar quarter to the Net Sales that was deemed sold during such month with
respect to royalty and sales milestones payments under Sections 9.2.2 and 9.3 and for the previous day of the notification of the
development milestone under Section 9.2.1.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	27

    	 

    

  

10.2         Tax
Withholding.  Intercept shall be responsible for any income taxes payable by Intercept on payments made to it under this
Agreement. If applicable Laws require that taxes be deducted and withheld from a payment due from DSP to Intercept under this Agreement,
DSP shall (i) deduct those taxes from the payment; (ii) pay the taxes to the proper taxing authority; and (iii) send evidence of
the proof of payment to Intercept promptly following that payment. Intercept shall provide DSP with documentation necessary for
DSP to file an application with the applicable tax authorities to avoid or reduce withholding or other applicable taxes under any
applicable tax treaty.  

 

10.3         Audits.
During the Term and for a period of three (3) years thereafter, DSP shall keep (and shall cause its Affiliates and sublicensees
to keep) complete and accurate records pertaining to the sale or other disposition of Products in the Field in the Territory and
calculations of Net Sales and payments required under this Agreement in sufficient detail to permit Intercept to confirm the accuracy
of all payments due to it hereunder. Notwithstanding the foregoing, should applicable Law in the Territory require DSP to retain
records of the nature described in the preceding sentence for a period longer than that set forth in the preceding sentence, DSP
shall retain such records for the longer period; provided that Intercept shall advise of any applicable record-keeping requirements
imposed by laws outside the Territory. Intercept shall have the right to cause an independent, certified public accountant reasonably
acceptable to DSP to audit such records to confirm Net Sales, royalty, milestone and other payments for a period covering up to
but not more than the preceding twelve (12) calendar quarters; provided that any such accountant shall have previously entered
into a confidentiality agreement reasonably satisfactory to DSP limiting its disclosure of such information to authorized representatives
of the Parties or as required under applicable Laws. Any such inspection shall be for the sole purpose of verifying the calculation
of payments on Net Sales of the Products in the Field in the Territory by DSP, and its Affiliates or sublicensees and milestone,
royalty and other payments paid by DSP under this Agreement. The accountant shall only disclose to Intercept the findings of the
audit and the specific details concerning any discrepancies. No other information shall be provided to Intercept. Such audit rights
may be exercised during normal business hours upon reasonable prior written notice to DSP; provided that such audit right may be
exercised no more than once in any twelve (12) -month period. Prompt adjustments shall be made by the Parties to reflect the results
of such audit. Intercept shall bear the full cost of such audit unless such audit discloses an underpayment by DSP of more than
[***] percent ([***]%) of the amount of royalties or other payments due under this Agreement, in which case, DSP shall bear the
full cost of such audit.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	28

    	 

    
  

11.         TREATMENT
OF CONFIDENTIAL INFORMATION

  

11.1         Confidential
Obligations. DSP and Intercept each recognize that the other Party’s Confidential Information constitutes highly
valuable and proprietary confidential information. Intercept and DSP each agree that during the Term of this Agreement and for
five (5) years thereafter, it will keep confidential, and will cause its employees, consultants, contractors, Affiliates and sublicensees
to keep confidential, all Confidential Information of the other Party. Neither Intercept nor DSP, nor any of their respective employees,
consultants, Affiliates or sublicensees shall use Confidential Information of the other Party for any purpose whatsoever other
than exercising any rights granted to it or reserved by it hereunder. Without limiting the foregoing, each Party may disclose information
to the extent such disclosure is reasonably necessary to (i) file and prosecute patent applications and/or maintain patents which
are filed or prosecuted in accordance with the provisions of this Agreement, or (ii) file, prosecute or defend litigation in accordance
with the provisions of this Agreement or (iii) comply with applicable Laws, regulations or court orders; provided, however, that
if a Party is required to make any such disclosure of the other Party’s Confidential Information in connection with any of
the foregoing, it will give reasonable advance notice to the other Party of such disclosure requirement and will use reasonable
efforts to assist such other Party in efforts to secure confidential treatment of such information required to be disclosed.

 

11.2         Publication.
If either Party plans to publish or present the results of any studies or other data regarding the Compound, the Product or Additional
Indications conducted in and outside the Territory, the Party shall submit the draft of the publication, translated into English,
to the other no later than four (4) weeks prior to the planned submission for publication for approval, unless such disclosure
requires immediate publication due to disclosure requirements of the U.S. Securities and Exchange Commission, the NASDAQ stock
exchange or any other stock exchange on which securities issued by a Party are traded and Intercept has advised DSP of the deadline
for disclosure in a sufficiently timely manner. As soon as a Party is aware of a deadline for submitting an abstract for an upcoming
scientific meeting, it shall notify the other Party in writing and the Parties shall use Commercially Reasonable Efforts to exchange
comments on the proposed abstract in a timely manner to facilitate the publication/presentation of the proposed abstract. Otherwise,
any publication shall need the other Party’s prior written consent, which shall not be unreasonably withheld. Any comment,
reasonable request for modification or reasonable rejection must be made within as quickly as practically possible from the receipt
of the draft. Failure to quickly make such comments shall be conclusively deemed to constitute approval of such publication or
presentation. For the avoidance of doubt, this Section 11.2 shall apply to publications made by either Party both in the Territory
and outside the Territory.

 

11.3         Publicity.
DSP and Intercept may, by mutual written agreement, issue a press release announcing the execution of this Agreement, which shall
be substantially in a form approved by the Parties. Except with respect to such initial release or as otherwise required by applicable
Laws (including disclosure requirements of the U.S. Securities and Exchange Commission, the NASDAQ stock exchange or any other
stock exchange on which securities issued by a Party are traded), neither Party shall issue an additional press release or public
announcement relating to this Agreement without the prior written approval of the other Party, which shall not be unreasonably
withheld or delayed. In the event that a Party wishes to refer to the other Party or the transactions under this Agreement in promotional
or other communications with prospective customers and investors, such Party shall first provide the other Party with advance notice
of such proposed disclosure and the form, substance and intended use of such proposed disclosure and obtain the prior written approval
of the other Party to the form, substance and intended use of such proposed disclosure.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	29

    	 

    

  

12.          FILING,
PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

 

12.1         Patent
Filing, Prosecution and Maintenance. Subject to the other terms of this Section 12.1, Intercept shall be responsible for
preparing, filing, prosecuting, obtaining and maintaining, all Intercept Patents in the Territory. Intercept (i) will provide
DSP with a copy of any proposed patent application or prosecution or other document relating to a patent or application within
the Intercept Patents and to the Field (and the Additional Indications) for review and comment reasonably in advance of filing
which shall under no circumstances be less than thirty (30) days, and (ii) will keep DSP reasonably informed of the status of such
filing, prosecution and maintenance.

 

12.2         Enforcement.
If, during the Term, either Party learns of any actual, alleged or threatened infringement by a Third Party of any Intercept Patent
under this Agreement, such Party shall promptly notify the other Party and shall provide such other Party with available evidence
of such infringement. Intercept shall have the first right (but not the obligation), at its own expense and with legal counsel
of its own choice, to bring suit (or take other appropriate legal action) against any actual, alleged or threatened infringement
of the Intercept Patent in the Field in the Territory; provided that the settlement of such matter shall require DSP’s consent,
not to be unreasonably withheld or delayed. DSP shall have the right, at its own expense, to be represented in any such action
by counsel of DSP’s own choice. If Intercept does not file any action or proceeding against any such material infringement,
with material infringement determined using reasonable commercial standards (including obtaining the advice of patent counsel),
within three (3) months after the later of (i) DSP’s notice to Intercept hereunder, (ii) Intercept’s notice to DSP
hereunder, or (iii) a written justified request from DSP to take action with respect to such infringement, then DSP shall have
the right (but not the obligation), at its own expense, to bring suit (or take other appropriate legal action) against such actual,
alleged or threatened infringement, with legal counsel of its own choice, including the right to settle any such suit without the
prior consent of Intercept, who shall render all assistance reasonably required or requested by DSP. Irrespective of which party
is taking the lead with respect to the defense of a claim, the party taking the lead shall keep the other party reasonably informed
as to the status of any such action and shall give due regard to the comments and suggestions of the other Party with respect to
the defense of such claims. Any damages, monetary awards or other amounts recovered, whether by judgment or settlement, pursuant
to any suit, proceeding or other legal action taken under this Section 12.2, shall applied as follows:

 

(a)          first,
to reimburse the Parties for their respective costs and expenses (including reasonable attorneys’ fees and costs and costs
for providing assistance) incurred in prosecuting such enforcement action, and

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	30

    	 

    

  

(b)          second,
any amounts remaining shall be allocated [***] percent ([***]%) to the Party initiating the legal action and [***] percent ([***]%)
to the other Party, if the other Party provides material assistance, as determined using reasonable commercial standards, and if
not then, [***] ([***]%) to the initiating Party.

 

If a Party brings any such action or proceeding
hereunder, the other Party agrees to be joined as party plaintiff if necessary to prosecute such action or proceeding, and to give
the Party bringing such action or proceeding reasonable assistance and authority to file and prosecute the suit; provided, however,
that neither Party shall be required to transfer any right, title or interest in or to any property to the other Party or any Third
Party to confer standing on a Party hereunder.

 

12.3         Defense.
Each Party shall promptly notify the other Party in writing of any allegation by a third Party that the activity of either of the
Parties or their Affiliates or sublicensees pursuant to this Agreement infringes or may infringe the intellectual property rights
of such Third Party. Intercept shall have the right to control, at its own expense, the defense of any claim alleging that the
Development, Manufacturing or Commercialization of the Product in the Field in the Territory infringes any such Third Party rights.
If Intercept fails to proceed in a timely manner with respect to such defense, DSP shall have the option to assume control the
defense of such claim. As a general matter, the Parties acknowledge that Intercept, as the licensor of the Intercept Technology
shall, in principle, be responsible for all costs associated with maintaining validity of the Intercept Technology. Nonetheless,
in light of the fact that Intercept is in an early-stage development company, DSP is willing to bear [***] percent ([***]%) of
reasonable and actual costs and expenses incurred by DSP in connection with any defense of which DSP assumes control (the “DSP
Defense Costs”), with the remainder being reimbursed by Intercept in the form of reduced royalties owed to it from DSP pursuant
to Section 9.3, provided that in the event of an Intercept Change of Control, DSP may reduce the percentage of DSP Defense Costs
for which DSP is responsible. Notwithstanding anything to the contrary herein, from the [***] ([***]) anniversary of the Effective
Date, the preceding proviso shall become null and void, such that Intercept shall be fully responsible for all actual and reasonable
costs incurred by DSP in any defense which it assumes pursuant to this Section 12.3. Irrespective of which Party is taking the
lead with respect to the defense of a claim, the Party taking the lead shall keep the other Party reasonably informed as to the
status of any such action and shall give due regard to the comments and suggestions of the other Party with respect to the defense
of such claims. DSP shall have the right to participate in the defense of any such claim with counsel of its choice at its own
expense. Intercept shall not have the right to settle any claim or litigation described in this Section 12.3 without the consent
of DSP, such consent not to be unreasonably withheld; notwithstanding which, in the event that DSP assumes control of the defense
of any such claim in accordance with this Section 12.3, then DSP shall be entitled to settle such matter in its reasonable discretion.
If a Party brings any such action or proceeding hereunder, the other Party agrees to be joined as party plaintiff if necessary
to prosecute such action or proceeding, and to give the Party bringing such action or proceeding reasonable assistance and authority
to file and prosecute the suit; provided, however, that neither Party shall be required to transfer any right, title or interest
in or to any property to the other Party or any Third Party to confer standing on a Party hereunder.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	31

    	 

    

  

12.4         Ownership
of Improvements. Intercept shall solely own all Improvements that are made, conceived or reduced to practice solely by
one or more employees or contractors of either Intercept arising in connection with the performance by Intercept of its obligations
hereunder. Intercept hereby grants to DSP the exclusive right to use all such Intercept Improvements in the Territory during the
Term of this Agreement. DSP shall solely own all Improvements that are made, conceived or reduced to practice solely by one or
more employees or contractors of DSP arising in connection with the performance by DSP of its obligations hereunder. DSP hereby
grants to Intercept the non-exclusive right to use all such DSP Improvements outside the Territory during the Term of this Agreement.
Each of DSP and Intercept shall have the right, in its discretion, but subject to the terms and conditions of this Agreement, to
file patents applications with respect to their respective Improvements.

   

12.5        Joint
Improvements.

 

12.5.1     Ownership
and Disclosure. DSP and Intercept shall be joint owners in and to any and all Joint Improvements and any Patents claiming
such Joint Improvements. Subject to the terms and conditions of this Agreement, DSP and Intercept, as joint owners of the Joint
Improvements, shall have the right to practice and exploit the Joint Improvements without any obligation to account to the other
for profits. Any assignment of an interest in a Joint Improvement shall require the prior consent of the other Party, such consent
not to be unreasonably withheld. Each Party agrees to be named as a party, if necessary, to bring or maintain a lawsuit involving
a Joint Improvement. Each Party shall promptly report to the other Party in writing, through the JSC, and shall cause its Affiliates,
licensees (including sublicensees), and contractors (including subcontractors) to so disclose, the invention or conception of any
Joint Improvements.

 

12.5.2     Prosecution
and Maintenance.

 

(i) Inside the Territory,
DSP shall have the first right to prepare, file, prosecute and maintain Joint Improvements at its own cost and expense. Through
its progress reports submitted to the JSC pursuant to Section 3.5, DSP shall keep Intercept informed of the status of all filings
related to the Joint Improvements (including the nature of any objections and other information reasonably requested by Intercept)
and will provide Intercept with copies, in either English or Japanese, of all substantive documentation submitted to, or received
from, the patent offices in connection therewith. DSP shall provide Intercept with the right to comment on the documentation. The
Parties shall cooperate reasonably in the prosecution of all Patents covering the Joint Improvements if practicably possible and
shall share all material information relating thereto promptly after receipt of such information. If during the Term of this Agreement,
DSP intends to allow any Patent claiming a Joint Improvement to expire or intends to otherwise abandon any such Patent in the Territory,
or decides not to file patent applications covering or claiming a Joint Invention in the Territory, DSP shall notify Intercept
of such intention or decision at least ninety (90) days prior to any filing or payment due date, or any other that requires action,
in connection with such Patent in the Territory, and Intercept shall thereupon have the right, but not the obligation to assume
responsibility for the preparation, filing, prosecution or maintenance thereof at its sole cost and expense, in the name of and
solely owned by Intercept.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	32

    	 

    

  

(ii) Outside the Territory,
Intercept shall have the first right to prepare, file, prosecute and maintain Joint Improvement at its own cost and expense. Intercept
shall keep DSP informed of the status of all filings related to the Joint Improvement and will provide Intercept with copies, in
either Japanese or English, of all substantive documentation submitted to, or received from, the patent offices in connection therewith.
Intercept shall provide DSP with the right to comment on the documentation. The Parties shall cooperate reasonably in the prosecution
of all Patents covering the Joint Improvement if practicably possible and shall share all material information relating thereto
promptly after receipt of such information. If during the term of this Agreement, Intercept intends to allow any Patent claiming
a Joint Improvement to expire or intends to otherwise abandon any such Patent outside the Territory, or decides not to file patent
applications covering or claiming a Joint Invention in the Territory, Intercept shall notify DSP of such intention or decision
at least ninety (90) days prior to any filing or payment due date, or any other that requires action, in connection with such Patent
outside the Territory, and DSP shall thereupon have the right, but not the obligation to assume responsibility for the preparation,
filing, prosecution or maintenance thereof at its sole cost and expense, in the name of and solely owned by DSP.

 

12.5.3           Enforcement;
Defense. Through the JSC, the Parties shall develop a process to coordinate the defense of Patents claiming a Joint Improvement,
including cost-sharing allocation, both inside and outside the Territory; provided that should the Parties be unable to resolve
any disagreement regarding the defense of a Patent claiming a Joint Improvement, such issue shall be resolved in accordance with
Section 12.5.4.

 

12.5.4           Ownership
and Other Disputes. The JSC shall resolve any issues regarding inventorship or ownership of Joint Improvements and the
defense of any Patent claiming a Joint Improvement pursuant to the provisions of Article 12. In connection with the resolution
of this issue, each Party is entitled to have a patent lawyer of its own choosing attend the meeting and submit its written legal
opinion. In the event that the JSC is unable to reach a decision, the matter shall be referred for resolution to a patent counsel,
reasonably acceptable to both Parties, who is affiliated with a firm of international repute. The decision of such patent attorney
shall be rendered in writing and shall be final and binding on the parties. Each Party shall bear its own costs and expenses for
legal advice provided to it in accordance with the second sentence of this Section 12.5.3. All costs and expenses incurred in connection
with the mutually appointed patent attorney shall be shared equally.

 

12.6         Trademarks.
 DSP shall own and have sole control over all matters relating to the use of all trademarks (and all associated goodwill) used
in the sale of Products in the Field in the Territory.  DSP shall be solely responsible for trademark searches, prosecution
of applications to register and to record licenses (if applicable), and maintenance of the Product-related trademarks in the Territory
as well as costs and expenses incurred in connection with the foregoing. If Intercept becomes aware of any actual or threatened
infringement of any Product-related trademark by a Third Party, it shall promptly notify DSP, who shall be responsible for enforcing
the Product-related trademarks.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	33

    	 

    

 

13.         REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

13.1         Intercept’s
Representations. Intercept represents and warrants to DSP that as of the Effective Date and throughout the Term of this
Agreement:

 

(a)          The
execution and delivery of this Agreement and the performance of the transactions contemplated hereby have been duly authorized
by all appropriate Intercept corporate action;

 

(b)          This
Agreement is a legal and valid obligation binding upon Intercept and enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by the Parties, and does not conflict with any agreement, instrument or understanding
to which Intercept is a party or by which it is bound;

 

(c)          Intercept
has, to the best of its knowledge, the full right and legal capacity to grant the rights granted to DSP hereunder without violating
the rights of any Third Party, and is the sole and exclusive owner of the Intercept Technology and the Intercept Manufacturing
Technology, all of which are free and clear of any liens, charges and encumbrances.

 

(d)          To
Intercept’s best knowledge, there are no pending legal actions, nor is Intercept aware of the receipt of any written notice
regarding any pending legal actions or threatened claims (including pending re-examination, opposition or interference), with respect
to the Intercept Technology or the Intercept Manufacturing Technology, or litigation seeking to invalidate any Intercept Technology
or any Intercept Manufacturing Technology;

 

(e)          Intercept
owns the Intercept Patents listed on Exhibit A, has not assigned, transferred, conveyed or otherwise encumbered its right,
title and interest in the Intercept Patents, Intercept Know-How, or Intercept Manufacturing Technology in the Territory.

 

(f)          Intercept
has not granted, and during the Term of this Agreement will not grant, rights to any Third Party under the Intercept Technology
or the Intercept Manufacturing Technology that conflict with the rights granted to DSP hereunder.

 

(g)          Intercept
is not aware of any safety, efficacy, or regulatory issues, other than the information that has previously been made available
to DSP in writing that would preclude DSP from Developing, Manufacturing, or otherwise Commercializing the Products in the Field
in the Territory.

 

(h)          To
Intercept’s best knowledge, DSP’s exercise of its rights with respect to the Intercept Technology and the Intercept
Manufacturing Technology shall not infringe any patent or other intellectual property right of any Third Party.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	34

    	 

    

  

(i)          All
material Development activities with respect to the Product whether clinical, non-clinical or preclinical conducted by Intercept
or at its request, has been, and shall be conducted in compliance with all applicable Law, including but not limited to Good Manufacturing
Practices, Good Clinical Practice and Good Laboratory Practices.

 

13.2         DSP
Representations. DSP represents and warrants to Intercept that as of the Effective Date:

 

(a)          the
execution and delivery of this Agreement and the performance of the transactions contemplated hereby have been duly authorized
by all appropriate DSP corporate action; and

 

(b)          this
Agreement is a legal and valid obligation binding upon DSP and enforceable in accordance with its terms, and the execution, delivery
and performance of this Agreement by the Parties does not conflict with any agreement, instrument or understanding to which DSP
is a party of or by which it is bound.

 

(c)          to
DSP’s knowledge, DSP’s exercise of its rights with respect to the Intercept Technology and the Intercept Manufacturing
Technology shall not infringe any patent or other intellectual property right of any Third Party.

 

13.3         Change
of Control Covenant. Intercept shall provide DSP with prior written notice of a proposed or contemplated Intercept Change
of Control and shall use Commercially Reasonable Efforts to afford DSP an opportunity to meet with the potential acquirers (or
the like) to discuss any necessary or advisable amendments to this Agreement no later than 60 days prior to the effective date
of the Intercept Change of Control.

 

13.4         Competitive
Products. DSP shall not engage, directly or indirectly, in the commercialization of any other product FXR agonist compound
or product in the Field within the Territory. For the avoidance of doubt, this does not include manufacturing, research or development
activities. Further, this provision shall not apply to any country in the Territory or any indication with respect to which the
nature of the rights granted to DSP under this Agreement are converted to non-exclusive rights by Intercept pursuant to Section
15.2(c) of this Agreement.

 

13.5         No
Warranties.

 

Nothing in this Agreement
is or shall be construed as:

 

(a)          a
warranty or representation by either Party as to the validity, enforceability, or scope of any patent application or patent licensed
hereunder or

 

(b)          a
warranty or representation that anything made, used, sold or otherwise disposed of under any license granted pursuant to this Agreement
is or will be free from infringement of patents, copyrights, and other rights of third parties.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	35

    	 

    

  

EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED.
THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR OF NON-INFRINGEMENT OF ANY
PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF THIRD PARTIES, OR ANY OTHER EXPRESS OR IMPLIED WARRANTIES.

  

14.         INDEMNIFICATION

 

14.1         Indemnification.

 

14.1.1           DSP
Indemnity. DSP shall indemnify, defend and hold harmless Intercept and its Affiliates and their respective directors, officers,
employees, stockholders and agents and their respective successors, heirs and assigns (the “Intercept Indemnitees”)
from and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses of litigation)
incurred by or imposed upon such Intercept Indemnitees, or any of them, in connection with any Third Party claims, suits, actions,
demands or judgments, including, without limitation, personal injury and product liability matters, to the extent arising out of
(i) the Development, Manufacture, or Commercialization or use by any person of any the Product Manufactured or sold by DSP or any
Affiliate or sublicensee under this Agreement, (ii) any material breach of this Agreement by DSP, or (iii) the negligence or willful
misconduct on the part of DSP or any Affiliate or sublicensee, in any such case under this Section 14.1.1, except to the extent
of Intercept’s responsibility therefor under Section 14.1.2 below.

 

14.1.2           Intercept
Indemnity. Subject to Section 14.1.1 above, Intercept shall indemnify, defend and hold harmless DSP, its Affiliates and
their respective directors, officers, employees, and agents, and their respective successors, heirs and assigns (the “DSP
Indemnitees”), from and against any liability, damage, loss or expense (including reasonable attorneys’ fees and expenses
of litigation) incurred by or imposed upon such DSP Indemnitees, or any of them, in connection with any Third Party claims, suits,
actions, demands or judgments, including, without limitation, personal injury and product liability matters, to the extent arising
out of (i) the Manufacture of any the Product Manufactured or by or on behalf of Intercept, (ii) any actions or omissions of Intercept
or its Affiliates under this Agreement, (iii) any material breach of this Agreement by Intercept, or (iv) the negligence or willful
misconduct on the part of Intercept or any Affiliate, except to the extent of DSP’s responsibility therefore under Section
14.1.1 above.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	36

    	 

    

 

14.2         Indemnification
Procedures. In the event that any Indemnitee is seeking indemnification under Section 14.1 above from a Party (the “Indemnifying
Party”), the other Party shall notify the Indemnifying Party of such claim with respect to such Indemnitee as soon as reasonably
practicable after the Indemnitee receives notice of the claim, and the Party (on behalf of itself and such Indemnitee) shall permit
the Indemnifying Party to assume direction and control of the defense of the claim (including the right to settle the claim solely
for monetary consideration) and shall cooperate as requested (at the expense of the Indemnifying Party) in the defense of the claim.
The indemnification obligations under Article 14 shall not apply to any harm suffered as a direct result of any delay in notice
to the Indemnifying Party hereunder or to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement
is effected without the consent of the Indemnifying Party, which consent shall not be withheld or delayed unreasonably. The Indemnitee,
its employees and agents, shall reasonably cooperate with the Indemnifying Party and its legal representatives in the investigation
of any claim, demand, action or other proceeding covered by Section 14.1.

 

14.3         Limitation
on Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR LOSS, DAMAGE, OR LIABILITY WITH RESPECT TO LOSS OF PROFIT,
SPECIAL, INDIRECT, CONSEQUENTIAL, OR PUNITIVE DAMAGE. 

 

15.         TERM
AND TERMINATION

 

15.1         Term;
Expiration. The term of this Agreement (the “Term”) shall commence on the Effective Date and expire on a country-by-county
basis on the later to occur of (i) the tenth (10th) anniversary of the First Commercial Sale of the Product for the
first or second indication in such country (whichever is later) or (ii) the expiration date of the Exclusive Period in such country.
The Agreement as a whole shall expire on the date upon which the Agreement terminates with respect to the last country in the Territory.

 

15.2         Material
Breach. (a) In the case that one of the Parties believes that the other Party has materially breached the Agreement, the
JSC shall be notified and meet as soon as possible in order that the Parties attempt to resolve any dispute as to the existence
of any such material breach. Failing a consensus decision by the JSC within thirty
(30) days of receiving the matter for review, it shall then be referred for “Executive Negotiation” as set forth in
Article 16.1. Failing a decision by the business executives within sixty (60) days of receiving the matter for review from the
JSC, the non-breaching Party may then proceed to give written notice of termination for material breach.

 

 (b)          If
pursuant to Section 15.2(a), either Party gives written notice to the other Party of termination for material breach, which notice
shall describe such material breach in reasonable detail and whether it has been deemed non-curable or curable by the JSC and senior
executives, this Agreement and the rights and options granted herein may be terminated by the non-breaching Party, effective ten
(10) days after giving written notice to the breaching Party of termination for non-curable breach, thirty (30) days after giving
written notice to the breaching Party of such termination in the case of a curable payment breach, and sixty (60) days after giving
written notice to the breaching Party of such termination in the case of any other curable breach. The foregoing notwithstanding,
if any curable material breach is cured within the aforesaid thirty (30) or sixty (60) day period, the notice shall be automatically
withdrawn and of no effect.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	37

    	 

    

  

(c)          Any
exercise by Intercept or DSP of its rights under Section 15.2(b) may be on a country-by-country or indication-by-indication basis,
at Intercept’s discretion, or DSP discretion, in which case such termination shall be partial in nature and shall only apply
to the particular country or indication which is the source of the alleged material breach. Furthermore, Intercept shall have the
alternative option, in its sole discretion, instead of terminating the Agreement in part or in whole, to convert the exclusive
appointment of DSP under Section 2 of this Agreement into a non-exclusive appointment, and to apply such non-exclusive status on
a country-by-country or indication-by-indication basis, at Intercept’s sole discretion, in which case such non-exclusivity
shall only apply to the particular country or indication which is the source of the alleged material breach.

 

15.3         Voluntary
Termination. DSP shall have the right to terminate this Agreement at any time upon ninety (90) days’ written notice
to Intercept, either in its entirety or on a country-by-country basis or indication-by-indication basis, at the discretion of DSP.

 

15.4         Effects
of Termination.

 

15.4.1           Upon
the expiration of this Agreement or any termination of the entire Agreement by DSP under Section 15.2, as of the effective date
of such expiration or termination, DSP thereafter automatically shall have a perpetual, fully sublicensable and transferable, exclusive
license in the Territory under the Intercept Technology and Intercept Manufacturing Technology, to Develop, have Developed, make,
have made (including Manufacture), use, have used, sell, have sold, offer for sale, import and have imported or otherwise Commercialize
any and all Products and to practice the Intercept Technology and the Manufacturing Technology in the Territory. Such license shall
not be fully paid-up, but instead shall be payable as follows (subject to Intercept making the transfer of the relevant Manufacturing
Technology to DSP):

 

(a)          if
before the First Commercial Sale, then [***] percent ([***]%) of royalties that would have become due under Section 9 of this Agreement
but for the termination or expiration, for a period equal to the remainder of the Term of the Agreement, had the Agreement not
been terminated;

 

(b)          if
after the First Commercial Sale, then [***] percent ([***]%) of royalties that would have become due under Section 9 of this Agreement
but for the termination or expiration, for a period equal to the remainder of the Term of the Agreement, had the Agreement not
been terminated; provided, however, that in the event Intercept does not comply with its obligations under the Commercial Supply
Agreement, the applicable rate will be [***] percent ([***]%).

 

(c)          At
the end of the period equal to the remainder of the Term of the Agreement, had the Agreement not been terminated, the exclusive
license shall be deemed fully paid-up. Intercept shall disclose to DSP all material research, non-clinical and clinical data on
Products generated prior to the termination date outside the Territory and DSP shall thereafter have the unrestricted right to
use such data and information in the Territory. Intercept shall promptly provide to DSP any other material, information, contracts,
etc. which Intercept owns or Controls related to the Intercept Product in the Territory and are reasonably required to allow DSP
to continue the Development, Manufacture and Commercialization of Products in the Territory with minimal delay.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	38

    	 

    

  

(d)          The
foregoing notwithstanding, in the case that DSP determines, in its sole discretion, upon termination of the Agreement pursuant
to this Section 15.4.1 to cease all Development, Manufacturing and Commercialization activities relating to the Compound and the
Product, then all licenses and sublicenses shall revert in full to Intercept and DSP shall have no further payment obligations
to Intercept. To give effect to the reversion of the licenses and sublicenses, DSP shall be bound by its obligations pursuant to
Section 15.4.2 below, except that DSP shall not be bound to disclose to Intercept all material research, non-clinical and clinical
data (except for safety data) on Products generated prior to the termination date, nor shall DSP be bound to assign all Regulatory
Filings relating to Products in the Territory.

 

15.4.2     Upon
any termination of the Agreement by Intercept under Section 15.2 , or upon any termination of the Agreement by DSP under Section
15.3, as of the effective date of such termination all relevant licenses and sublicenses granted by Intercept to DSP shall cease
and all such licenses and sublicenses shall revert in full to Intercept. If there is a partial termination, only the licenses and
sublicenses as to the respective country and/or indication being terminated shall revert to Intercept. In order to revert the licenses
and sublicenses, DSP shall be obligated to the following:

 

(a)          DSP
shall provide to Intercept (or at Intercept’s request, destroy) all remaining Product and disclose to Intercept all material
research, non-clinical and clinical data on Products generated prior to the termination date and Intercept shall thereafter have
the unrestricted right to use such data and information;

 

(b)          DSP
shall assign to Intercept all Regulatory Filings relating to Products in the Territory, if assignment is permitted by applicable
Regulatory Authorities; and

 

(c)          DSP
shall promptly provide to Intercept any other material, reagents, information, contracts, etc. DSP owns or Controls related to
the Intercept Product and are reasonably required to allow Intercept to continue the research, Development, protection, and Commercialization
of Products with minimal delay.

 

15.4.3    Remedies.
Except as otherwise expressly set forth in this Agreement, the termination provisions of this Section 15 are in addition to any
other relief and remedies available to either Party at law.

 

15.4.4    Joint
Improvements. For the avoidance of doubt, Joint Improvements shall remain jointly owned upon any termination or expiration
of the agreement.

 

15.4.5    Surviving
Provisions. Notwithstanding any provision herein to the contrary, the rights and obligations of the Parties set forth in
Sections 10.3, 11.1, 12, 14, and 15.4 shall survive the date of termination or expiration of the Agreement (except as otherwise
provided for in this Agreement). Without limiting the generality of the foregoing, DSP shall have no obligation to make any milestone
or royalty payment to Intercept that has not accrued prior to the effective date of any termination or expiration of this Agreement
(except with respect to the payments pursuant to Section 15.4.1), but shall remain liable for all such payment obligations accruing
prior to the effective date of such termination.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	39

    	 

    

  

16.         DISPUTES

 

16.1         Executive
Negotiation. The Parties recognize that a bona fide dispute as to certain matters may from time to time arise during the
Term of this Agreement that relates to either Party’s rights and/or obligations hereunder. In the event of the occurrence
of such a dispute, either Party may, by written notice to the other Party, have such dispute referred to their respective senior
officials designated below or their successors, for attempted resolution by good faith negotiations within sixty (60) days after
such notice is received. Said designated senior officials are as follows:

 

For Intercept: Chief
Executive Officer

 

For DSP: Chief Executive
Officer (or a designated senior executive with decision-making authority).

 

In the event the designated
senior officials are not able to resolve such dispute within the sixty (60) day period, either Party may invoke the provisions
of Section 16.2.

 

16.2         Arbitration.
Subject to Section 16.1 and except with respect to disputes relating to the intellectual property or a breach of the confidentiality
obligations of this Agreement, any dispute, controversy or claim initiated by either Party arising out of, resulting from or relating
to this Agreement, or the performance by either Party of its obligations under this Agreement (other than bona fide Third Party
actions or proceedings filed or instituted in an action or proceeding by a Third Party against a Party), whether before or after
termination of this Agreement, shall be submitted to the International Court of Arbitration of the International Chamber of Commerce
and shall be finally settled by binding arbitration. Whenever a Party shall decide to institute arbitration proceedings, it shall
give written notice to that effect to the other Party. Any such arbitration shall be conducted under the then-current Rules of
Arbitration of the International Chamber of Commerce Rules of Arbitration by a panel of one or more arbitrators appointed in accordance
with such rules. Any such arbitration shall be held in New York, New York if initiated by DSP and in Osaka, Japan if initiated
by Intercept. All arbitration proceedings, communications, and documents shall be in the English language. Judgment upon the award
so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of
any award and an order of enforcement, as the case may be. Notwithstanding the foregoing, each Party may at any time pursue equitable
remedies, including without limitation injunctive relief, to protect its respective Confidential Information as well as its respective
intellectual property rights, including Know-How and Patents.  For the avoidance of doubt, either Party can take such action
without first having to go to the JSC pursuant to Section 3, or the Executive Negotiation pursuant to Section 16.1.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	40

    	 

    

  

17.         MISCELLANEOUS

 

17.1         Notification.
All notices, requests and other communications hereunder shall be in writing, shall be addressed to the receiving Party’s
address set forth below or to such other address as a Party may designate by notice hereunder, and shall be either (i) delivered
by hand, (ii) made by facsimile transmission (to be followed with written fax confirmation), (iii) sent by private courier service
providing evidence of receipt, or (iv) sent by registered or certified mail, return receipt requested, postage prepaid. The addresses
and other contact information for the parties are as follows:

 

	If to Intercept:	
        Intercept Pharmaceuticals, Inc.

        18 Desbrosses Street

        New York, NY 10013

        Fax: +1-646-747-1001

	 	 
	If to DSP:	
        Director of Business Development

        6-8, Doshomachi 2-Chome

        Chuo-ku, Osaka 541-0045, Japan

        Fax: +81-6-6203-4533 

  

All notices, requests and other communications
hereunder shall be deemed to have been given either (i) if by hand, at the time of the delivery thereof to the receiving Party
at the address of such Party set forth above, (ii) if made by telecopy or facsimile transmission, at the time that receipt thereof
has been acknowledged by the recipient, (iii) if sent by private courier, on the day such notice is delivered to the recipient,
or (iv) if sent by registered or certified mail, on the fifth (5th ) business day following the day such mailing is
made.

 

17.2         Governing
Law. This Agreement will be construed, interpreted and applied in accordance with the laws of the state of New York (excluding
its conflict of law principles law).

 

17.3         Limitations.
Except as expressly set forth in this Agreement, neither Party grants to the other Party any right or license to any of its intellectual
property.

 

17.4         Entire
Agreement. This is the entire Agreement between the Parties with respect to the subject matter hereof and supersedes all
prior representations, understandings and agreements between the Parties with respect to the subject matter hereof. No modification
shall be effective unless in writing with specific reference to this Agreement and signed by the Parties.

 

17.5         Waiver.
The terms or conditions of this Agreement may be waived only by a written instrument executed by the Party waiving compliance.
The failure of either Party at any time or times to require performance of any provision hereof shall in no manner affect its rights
at a later time to enforce the same. No waiver by either Party of any condition or term shall be deemed as a continuing waiver
of such condition or term or of another condition or term.

 

17.6         Assignment.
Neither this Agreement nor any right or obligation hereunder may be assigned, delegated or otherwise transferred, in whole or part,
by either Party without the prior express written consent of the other Party, which may be withheld in the sole discretion of the
Party giving such consent.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	41

    	 

    

  

17.7         Force
Majeure. Neither Party shall be liable for failure of or delay in performing obligations set forth in this Agreement, and
neither shall be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any cause beyond
the reasonable control of such Party. In event of such force majeure, the Party affected thereby shall use reasonable efforts to
cure or overcome the same and resume performance of its obligations hereunder.

 

17.8         Construction.
The Parties hereto acknowledge and agree that: (i) each Party and its counsel reviewed and negotiated the terms and provisions
of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved
against the drafting Party shall not be employed in the interpretation of this Agreement; and (iii) the terms and provisions of
this Agreement shall be construed fairly as to all Parties hereto and not in favor of or against any Party, regardless of which
Party was generally responsible for the preparation of this Agreement.

 

17.9         Severability.
If any provision(s) of this Agreement are or become invalid, are ruled illegal by any court of competent jurisdiction or are deemed
unenforceable under then current applicable law from time to time in effect during the Term hereof, it is the intention of the
Parties that the remainder of this Agreement shall not be affected thereby provided that a Party’s rights under this Agreement
are not materially affected. 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, illegal or unenforceable, it being the intent of the Parties that the basic purposes of this
Agreement are to be effectuated.

 

17.10       Further
Assurances. Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all such other acts,
as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

17.11       Affiliate
Delegation. DSP may delegate to an Affiliate all or part of its obligations hereunder, provided that it shall provide
prior notice to Intercept.

 

17.12       Compliance with Law. Each Party shall comply with all applicable Laws, including by way of example, but without limitation
U.S. export controls and the U.S. Foreign Corrupt Practices Act.

 

17.13       Governing
Language. This Agreement has been executed in English. If any translation of this Agreement conflicts with the English
version or contains terms in addition to or different from the English version, the English version shall prevail.

 

17.14       Counterparts.
This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	42

    	 

    

  

[SIGNATURES FOLLOW ON THE NEXT PAGE.]

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	43

    	 

    

  

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed by their duly authorized representative in two (2) originals.

   

	DAINIPPON SUMITOMO PHARMA CO., LTD.	 	INTERCEPT PHARMACEUTICALS, INC.
	 	 	 
	/s/ Masayo Tada	 	/s/ Mark Pruzanski
	Name:	Masayo Tada	 	Name:	Mark Pruzanski
	Title:	President and Chief Executive Officer	 	Title:	President and Chief Executive Officer

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	44

    	 

    

 

EXHIBIT A

 

INTERCEPT PATENTS

 

	Country	 	Title	 	Serial No.	 	Filing

    Date	 	Parent PCT	 	Status	 	Patent

    No.
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Japan	 	Steroids As Agonists For FXR	 	2002-571512	 	Feb. 21, 

    2002	 	PCT/EP2002/001832

        WO2002/072598

         
	 	Granted	 	4021327
	Japan	 	Process For Preparing 3alpha(Beta)-7alpha(Beta)-Dihydroxy-6alpha(Beta)-Alkyl-5beta
        Cholanic Acid

         
	 	2008-511719	 	May 19, 

    2006	 	PCT/EP2006/062446

        WO2006/122977
	 	Pending	 	N/A
	China	 	Process For Preparing 3alpha(Beta)-7alpha(Beta)-Dihydroxy-6alpha(Beta)-Alkyl-5beta
        Cholanic Acid

         
	 	200680017025.6	 	May 19, 

    2006	 	PCT/EP2006/062446

        WO2006/122977
	 	Pending	 	N/A
	Japan	 	Treatment Of Fibrosis Using FXR Ligands	 	2007-503111	 	Mar. 14, 

    2005	 	PCT/US2005/008575

        WO2005/089316
	 	Pending	 	N/A

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.  

    	45

    	 

    

  

EXHIBIT B

 

Summary of Sublicense Agreements

  

1. Sublicense Agreement

 

(a) Full corporate name of sublicensee:

 

(b) Applicable country:

 

(c) Applicable indications in the Field:

 

(d) Standard of sublicensee’s performance
(e.g. best efforts, commercially reasonable efforts, etc.):

 

(e) Term of sublicense agreement:

 

(f) Summary of termination provision:

 

2. Sublicensee Confirmation

 

I, [Name], the [Title] of [Full Corporate
Name of Sublicensee] (the “XX”) confirm and acknowledge that the XX is aware of and agrees to comply with the provisions
of that certain License Agreement, dated March 29, 2011 by and between Dainippon Sumitomo Pharma Co., Ltd. and Intercept Pharmaceuticals,
Inc. (the “Agreement”), which in accordance with their respective terms, are expressly applicable to XX, as a sublicensee
appointed pursuant to Section 2.1.2 of the Agreement.

  

By:

 

Name:

 

Title:

 

Date:

 

Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed
separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment
pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	46

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