Document:

Settlement Agreement with Microsemi Corporation

 Exhibit 10.18 
 SETTLEMENT AGREEMENT 
 This Settlement Agreement (the “Agreement”) is made and effective
the 24th day of March, 2006, by and between Microsemi Corporation, with offices at 2381 Morse Avenue, Irvine, CA
92614 (“Microsemi”) and Monolithic Power Systems, Inc., with offices at 983 University Avenue, Building A, Los Gatos, CA 95032 (“MPS”). Microsemi and MPS are collectively referred to as the “Parties”, and each
separately as a “Party”. 
 WHEREAS, Microsemi is the assignee and owner of all rights, title and interest in and to United States
Patent Nos. 5,615,093 (the “‘093 Patent”), 5,923,129 (the “‘129 Patent”), 5,930,121 (the “‘121 Patent”) and 6,198,234 (the “‘234 Patent”) (collectively the “Patents-in-Suit”);

 WHEREAS, the Parties have been parties to a patent infringement lawsuit filed in the United States District Court, Central District of
California, Southern Division, styled Microsemi Corporation v. Monolithic Power Systems, Inc., Case No. SACV 04-1174 CJC (the “Litigation”); 
 WHEREAS, MPS has filed an amended answer and counterclaims alleging that the Patents-in-Suit are invalid, unenforceable and/or not infringed with Microsemi filing a corresponding answer denying these counterclaims;

 WHEREAS, MPS and Microsemi desire to avoid the time and expense of litigation, to compromise the disputed claims, and to fully and finally
resolve and settle the Litigation through the exchange of mutual releases, a covenant not to sue and other valuable and adequate considerations as set forth in this Agreement; and 
 WHEREAS, Microsemi and MPS desire to explore the possibility of a mutually beneficial cooperative business relationship: 
 NOW, THEREFORE, in consideration of mutual promises and obligations recited herein, the Parties agree as follows: 

 I. DEFINITIONS 
 1.1 An “Affiliate” of a Party means any other Person controlled by or under direct or indirect common control with such Party, as of the Settlement Date. For purposes of this definition, “control,”
as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 50% or more of the Voting Stock of a Person will be deemed to be control. For avoidance of doubt, where a Party and/or its Affiliates are required to do or refrain from any act(s) under this Agreement
(e.g. provide the other Party a release or a covenant), the Party shall cause its Affiliates to do or refrain from any such acts. 
 1.2
“Claims” shall mean any and all claims, counterclaims, demands, actions and causes of action, and any related damages, liabilities, losses, payments, obligations, costs and expenses (including, without limitation, attorneys’ fees and
costs), of any kind or nature, fixed or contingent, direct or indirect, in law or equity, several or otherwise, known or unknown, suspected or unsuspected. 
 1.3 “Microsemi Patents” shall mean the Patents-in-Suit as well as their related provisionals, continuations, continuations-in-part, divisionals, or reissues or re-examinations thereof, and all foreign
patents and foreign patent applications counterpart thereto. 
 1.4 “MPS’s and Affiliates’ Products” shall mean products
of MPS and/or its Affiliates that were designed in substantial part by MPS and/or its Affiliates. 
 1.5 “Person” shall mean an
individual, trust, corporation, partnership, joint venture, limited liability, association, unincorporated organization or other legal or governmental entity. 
 1.6 “Settlement Date” means the date that this Agreement is fully executed. 
 1.7 “Voting
Stock” of any specified Person as of any date means the capital stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person. 

 II. SETTLEMENT AND RELEASE 
 2.1 The Parties agree to dismiss with prejudice the Litigation. Each Party shall pay its own attorney fees, expenses, expert fees, and costs incurred as
a result of the Litigation. No later than (3) three days after the Settlement Date, the Parties shall execute and file a stipulation and order in the form set forth in Exhibit A dismissing with prejudice all claims, affirmative defenses, and
any counterclaims in the Litigation. The Parties shall proceed promptly with any and all additional procedures needed or necessary to dismiss with prejudice the Litigation. Microsemi represents and warrants that it has the right, power and authority
to cause its counsel to take any and all actions necessary in order to dismiss the Litigation with prejudice, grant all of the releases and covenants to MPS as set forth herein and otherwise comply with all Microsemi’s obligations under this
Agreement. Likewise, MPS represents and warrants that it has the right, power and authority to cause its counsel to take any and all actions necessary in order to dismiss the Litigation with prejudice and otherwise comply with all MPS’s
obligations under this Agreement. 
 2.2 Microsemi and its Affiliates release MPS and its Affiliates from any and all Claims (and liability)
for any alleged past infringement of the Microsemi Patents. Microsemi further agrees that it and its Affiliates will not assert and, do release, any Claims for past infringement of the Microsemi Patents against MPS and its Affiliates or its or their
direct or indirect customers, end users, agents, suppliers or distributors for use, manufacture, having manufactured, importation, offer for sale, sale or other distribution of any products that were sold prior to the Settlement Date of this
Agreement by or on behalf of MPS or its Affiliates, its or their customers, end users, agents, licensees, suppliers or distributors. 
 2.3
Microsemi and MPS and their respective Affiliates irrevocably and perpetually release and waive worldwide any and all Claims pled in the Litigation and any and all Claims that are compulsory thereto against each other and each of the other’s
Affiliates or their respective directors, officers, employees or agents. Each party and its respective Affiliates expressly waives any rights or benefits available to it in any capacity under the provisions of Section 1542 of the California
Civil Code and of any similar statute, law, regulation, principle of judicial interpretation or other rule (of California or any other jurisdiction). Such Section 1542 provides: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 

 2.4 Each Party shall be responsible for and pay its own costs, expenses and attorneys’ fees in
connection with the Litigation and settlement thereof. 
 III. COVENANT NOT TO SUE 
 3.1 Microsemi covenants that it and its Affiliates will not sue MPS, its Affiliates and their respective directors, officers, employees, contractors,
agents, end users, customers, suppliers or distributors anywhere in the world at any time for any and all claims (and liability) for any alleged future infringement of the Microsemi Patents arising from MPS’s and Affiliates’ Products that
are used, manufactured, having manufactured, imported, offered for sale, sold by or on behalf of MPS or its Affiliates, or otherwise distributed until the expiration of the last to expire Microsemi Patent. 
 IV. CONSIDERATION 
 4.1 In
consideration of the settlement of the Litigation and, in particular, the release and covenant not to sue under this Agreement, MPS will make a one-time payment to Microsemi in the amount of one million five hundred thousand dollars (US$
1,500,000.00) not later than April 3, 2006. 
 4.2 The payment set forth under Sub-Section 4.1 shall be the sole and exclusive
payment obligation of MPS in connection with this Agreement and shall be Microsemi’s sole remuneration hereunder. The payment shall be made by wire transfer not later than April 3, 2006 to an account designated by Microsemi in writing no
later than the Settlement Date. 
 V. CONFIDENTIALITY 
 5.1 Except as permitted in Sub-Section 8.6 or as may otherwise be required by law, including public financial filing requirements, each Party shall keep the financial terms of Section IV of this Agreement
confidential and shall not disclose such terms or provisions without first obtaining the written consent of the other Party. Subject to the foregoing, the Parties agree to redact such financial terms and conditions from any required public version
of this Agreement. The confidentiality obligations hereunder do not apply to the disclosure of the existence of this Agreement to existing and potential customers, end users, agents, suppliers, distributors and investors. Furthermore, the Parties
may disclose to existing and 

 potential customers, end users, agents, suppliers, distributors and investors that the Litigation concluded with an
agreement pursuant to which Microsemi and its Affiliates covenanted not to assert the Microsemi Patents against MPS and its Affiliates, their customers, end users, agents, suppliers, and distributors. MPS and Microsemi may issue a joint press
release, the content of which is set forth in Exhibit B attached hereto. 
 VI. VENUE AND GOVERNING LAW 
 6.1 This Agreement is to be construed in accordance with and governed by the laws of the State of California without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other than the laws of the State of California to the rights and obligations of the Parties. The Parties agree that any action arising out of or otherwise relating to this
Agreement, including, without limitation, any action relating to the breach, interpretation or enforceability of this Agreement, shall be brought in the United States District Court for the Central District of California, Santa Ana Division or, if
such court lacks jurisdiction, the courts of the State of California for the County of Orange. Each party hereby consents to the personal jurisdiction of, and waives any objection to venue in, such court. 
 VII. RETURN OF DOCUMENTS 
 7.1 Not
later than sixty (60) days after the Settlement Date, all copies of documents containing confidential or proprietary information of a Party produced in the Litigation by such Party to the other Party or otherwise obtained in the course of the
litigation shall be destroyed or returned to counsel for the producing Party, with the exception of an archival copy of pleadings, correspondence, work product, interrogatory responses, depositions, deposition exhibits, court exhibits and other
documents which may be retained by outside counsel for each Party, subject, however, to compliance with any protective orders. Each Party and its outside counsel shall certify compliance with the obligations of this Sub-Section 7.1. 

VIII. MISCELLANEOUS 
 8.1 MPS and
Microsemi each represents and warrants to the other that it is duly existing; that it has the full power and authority to enter into this Settlement Agreement; that it has not previously assigned to any person any Claim or prospective Claim against
the other; that this Agreement does not and will not interfere with any other agreement to which it or any of its Affiliates is a party and that it and its Affiliates will not enter into any agreement the execution and/or performance of which would
violate or interfere with this Agreement. 

 8.2 As of the Settlement Date, Microsemi represents and warrants that (i) it owns the Microsemi
Patents or has the right to grant releases and covenants with respect to such Microsemi Patents in the full scopes set forth herein; (ii) no payment of consideration to any third party is required for the releases and covenants granted with
respect to the Microsemi Patents; (iii) Microsemi has no parent or Affiliate who owns or controls any Microsemi Patents; and (iv) Microsemi has not entered into any agreement or arrangement under which it assigns or otherwise transfers the
Microsemi Patents into a holding company or other person for enforcement of such Microsemi Patents. 
 8.3 Microsemi and its Affiliates shall
not assign, grant, sell or otherwise transfer any right under the Microsemi Patents which are subject to MPS’ rights pursuant to this Agreement unless such assignment, grant, sale or other transfer is made subject to the terms and conditions of
this Agreement. MPS and its Affiliates shall not assign, grant, sell or otherwise transfer any right under the Microsemi Patents which are subject to MPS’ rights pursuant to this Agreement except with written consent from Microsemi. 

8.4 If one or more of the provisions of this Agreement is ruled wholly or partly invalid or unenforceable by the court, arbitrator or other
government body of competent jurisdiction, then the validity and enforceability of all of the other provisions of this Agreement will be unaffected; and the provisions held wholly or partly invalid or unenforceable will be deemed amended, and the
court, arbitrator or other government body shall reform the offending provision or provisions to the minimum extent necessary to render such provision or provisions valid and enforceable and, as so reformed, this Agreement shall be fully
enforced. 
 8.5 Microsemi and MPS each represents that it has had the opportunity to be represented by counsel of its own choice in
negotiating this Agreement. This Agreement shall therefore be deemed to have been negotiated and prepared at the joint request, direction and instruction of Microsemi and MPS, at arms length, with the advice and participation of counsel, and will be
interpreted in accordance with its terms without favor to either Microsemi or MPS. 
 8.6 Each Party agrees that neither this Settlement
Agreement nor any act under it constitutes or shall be construed to constitute an admission of liability or fault of any kind by the other Party or its Affiliates, which liability or fault of the other Party expressly denies. Furthermore, each Party
maintains the positions it asserted in the Litigation. Each Party agrees that it will not seek to admit into evidence or otherwise use this Agreement in any way, except specifically to enforce the terms and conditions of this Agreement or as
permitted in Sub-Section 5.1. 

 8.7 Microsemi and MPS agree that they will each sign such further documents and take such further acts as
may be necessary to carry out the intent of this Agreement. 
 8.8 This Agreement may be signed in counterparts and shall be effective only
when signed by Microsemi and MPS. 
 8.9 Any notice, demand, request, waiver or other communication required or permitted to be given
hereunder shall be in writing and shall be effective (a) upon hand delivery, by telecopy or facsimile at the address or number designated below (if delivered on a Business Day during normal business hours where such notice is to be received),
or the first Business Day following such delivery (if delivered other than a Business Day during normal business hours where such notice is to be received), or (b) on the second Business Day following the date of mailing by express courier
service, full prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 
  

			
	If to Microsemi:	  	 Microsemi Corporation
 2381 Morse Avenue
 Irvine, CA 92614
 ATTN:
CEO
 Fax: (949) 756-2602
  
 with a mandatory copy to:
  
 Winstead Sechrest & Minick P.C.
 5400 Renaissance Tower
 1201 Elm Street
 Dallas, Texas 75270
 ATTN: Jay J. Madrid and E.E. (“Jack”) Richards, II
 Fax: (214) 745-5390

			
	If to MPS:	  	 Monolithic Power Systems, Inc.
 983 University
Avenue
 Building A
 Los Gatos, California 92618
 ATTN: CEO
 Fax: (408) 357-6601
  
 with a mandatory copy to:
  
 Latham & Watkins LLP
 633 West Fifth Street, Suite 4000
 Los Angeles, CA 90071
 ATTN: Robert Steinberg
 Fax: (213) 891-8763

 Either party may change its address by the notice given to the other party in the manner set
forth. 
 8.10 The Parties agree that except as expressly recited herein, no other rights, licenses, permissions, or the like (express or
implied) are granted herein. 

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized
officers as of the Settlement Date. 
  

					
	Date: March 24, 2006	 	Microsemi Corporation
			
		 	By:	 	 /s/ DAVID R. SONKSEN

		 	Title:	 	Executive VP and
		 		 	Chief Financial Officer
		
	Date: March 24, 2006	 	Monolithic Power Systems, Inc.
			
		 	By:	 	 /s/ MICHAEL R. HSING

		 	Title:	 	Chief Executive Officer

 EXHIBIT “A” 
 Stipulation and [Proposed] 
 Order of Dismissal 

 EXHIBIT “B” 
 Joint Press ReleaseAgreement between Registrant and Aziende Chimiche Riunite Angelini Francesco

 EXHIBIT 10.10 
  
 *CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED 
 SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN 
 REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
  
 Agreement 
  
 between 
  
 Aziende Chimiche Riunite Angelini Francesco – Acraf S.p.a., having its registered office
in Viale Amelia, 70—00181 Rome Italy c.f.01312320680, p.Iva 049290810000 a company incorporated under the laws of Italy (hereinafter referred to as “Acraf”) 
  
 and 
  
 Threshold Pharmaceuticals, Inc., having its registered office at 951 Gateway Blvd., Ste. 3A, South San Francisco, CA 94080, USA, a company incorporated under the laws of
the State of Delaware of the United States (hereinafter referred to as “TH”) 
  
 Effective on the date of the last signature of this Agreement (hereinafter referred to as “Effective Date”). 
  
 Whereas 
  

	—	Acraf and TH are companies involved in the research, development and commercialization of pharmaceutical products; 

	—	Acraf owns the rights to the dossier for a tableted product containing 30 tablets per package, as previously approved in Italy, Austria, and Portugal for use as a single agent in
the treatment of brain, breast, prostate, and lung cancer (hereinafter referred to as the “Product”), each tablet containing 150 mg of the active ingredient Lonidamina (hereinafter referred to as the “Active
Ingredient”), such dossier including but not limited to all documents that have been or may in the future be filed or submitted to any regulatory authority anywhere in the world and communications to or from such Authorities in connection
with the Active Ingredient or Product, and information pertaining to the pre-clinical and clinical development of the Active Ingredient and Product, manufacturing processes for the Active Ingredient and finished Product, specifications, and
analytical and validation methods used by Acraf to manufacture the Active Ingredient and the Product (such documents and information collectively hereinafter referred to as the “Dossier”); 

	—	Acraf declares it has the sole and exclusive right to dispose of all the rights regarding the Dossier; 

	—	TH is willing to be granted by Acraf the right to use the Dossier as provided in Art.1.1 below for the purpose of facilitating TH’s efforts to develop and market products
equivalent to the Product as well as new unit dosage forms and other products containing the Active Ingredient (“TH Products”); 

	—	TH is willing to purchase a certain amount of Active Ingredient manufactured by Acraf to carry out one or more of the clinical studies required for the approval of TH Products,
which clinical studies include but are not limited to those studies contemplated by the development plan (hereinafter referred to as “Development Plan” or “DP”) as described in the Annex A to this Agreement
and those studies mentioned in the following 

  

 1 

 Art.1.1. 
  
 Now, therefore, in consideration of the premises and 
 of the mutual covenants herein contained and of other good and valuable 
 consideration, the parties hereto agree as follows:

  

	1.	Subject 

	1.1	Acraf does hereby grant to TH, and TH does hereby accept: 

	 	i)	the co-exclusive rights of utilising the Dossier and its contents for obtaining marketing authorisations in the territory described in Annex C (hereinafter referred to as
“Acraf Territory”) for a TH Product equivalent to the Product previously marketed by Acraf in Italy and of conducting any additional studies TH determines in its sole discretion to undertake for modifying the Dossier if such studies
are requested by the Italian Health Authority or another health authority where the Dossier is now filed, such additional studies to be conducted only as TH deems appropriate and at its own costs and granting to Acraf the right to use any such
additional studies free of any charge solely in connection with obtaining additional regulatory approvals for use of the Product in Italy to treat the existing approved, and any new, cancer indications (hereinafter referred to as
“THL1”); for THL1, semi-exclusive rights means that in addition to TH, Acraf will have the right – with no limitation – to use and/or to grant to any third parties the same rights granted by Acraf to TH for THL1; THL1 also
includes Acraf’s agreement to provide TH such licenses or other documentation to enable TH to market as soon as possible after the expiry of the remaining stocks of Product on the market (which expiry occurs in [***]) a TH Product equivalent to
the Product or the Product itself; 

	 	ii)	the exclusive rights of utilising the Dossier and its contents for obtaining marketing authorisations of a TH Product equivalent to the Product in the territory described in Annex
B (hereinafter referred to as “TH Territory”) and of conducting any additional studies TH determines in its sole discretion to undertake for modifying or otherwise using the Dossier if requested by the relevant health
authority, such additional studies to be conducted at its own costs and granting to Acraf the right to use the results of such additional studies free of any charge only as necessary for compliance with the regulatory requirements to maintain the
marketing authorization to use the Product in Italy to treat cancer indications (hereinafter referred to as “THL2”); for THL2, exclusive rights means that in addition to TH no other company will have granted by Acraf any of the
rights granted to TH in respect of THL2; 

	 	iii)	the exclusive right of utilising the Dossier and its contents for carrying out clinical studies related to the anti-cancer activity of the Active Ingredient as set forth in the
DP (hereinafter referred to as “THL3”); 

	 	    	for THL3, exclusive rights means that in addition to TH no other company will have granted by Acraf any of the rights granted to TH 

  

 2 

	 	    	in respect of THL3; and 

	 	iv)	the exclusive right of utilising the Dossier and its contents in the TH Territory and the Acraf Territory for 

	 	1)	writing a new registration dossier of one or more TH Products (hereinafter referred to as “New Dossier”); 

	 	2)	filing the New Dossier to obtain the relevant marketing authorisations in the TH Territory and the Acraf Territory (hereinafter referred to as “THL4”); for THL4,
exclusive rights means that in addition to TH no other company will have granted by Acraf any of the rights granted to TH in respect of THL4, such THL4 being subject to Acraf’s semi-exclusive rights set forth in Art.1.2.A, below;

	 	    	(THL1, 2, 3, and 4 hereinafter jointly referred to as “TH Licence”). 

	1.2	In consideration of the THL3 and 4 granted by Acraf to TH, TH does hereby: 

	 	A	grant to Acraf, and Acraf does hereby accept: 

	 	i)	the exclusive right, subject only to those held by TH and its sublicensees, which have co-extensive rights, to use the Results, as defined in the following Art.5.2, at the end of
the DP in the Acraf Territory for 

	 	1)	writing a dossier relating to the use of the Product or an equivalent TH Product for a cancer indication other than the indications for which the Product was approved prior to the
Effective Date; 

	 	2)	filing the resulting dossier to obtain any relevant marketing authorisations in the Acraf Territory; 

	 	ii)	in the event that the Results as defined in the following Art.5.2, shall be patentable, the exclusive right – free of any charge—to use the relevant Patent, as described
in the following Art.5.1.—in the Acraf Territory for the same purposes described in the previous Art.1.2.A.i) (hereinafter referred to as “Acraf Licence”); 

  

	 	Parties	agree that: 

	 	—	for the licence described in the previous Art.1.2.A.i), exclusive rights means that in addition to Acraf, only TH and its sublicensees will have the right to use the Results in
Acraf Territory according to the rights granted to TH by Acraf with respect to THL4; 

	 	—	for the licence described in the previous Art.1.2.A.ii), exclusive rights means that in addition to Acraf, in Acraf Territory no company other than TH and its sublicensees will have
the same rights granted pursuant to the licence described in the previous Art.1.2.A.ii); 

	 	B	 undertakes to offer to Acraf—for a period starting on the second anniversary of the Effective Date and lasting until 10 (ten) years after the date of the first
launch of the first TH Product—the right to provide 75% (seventy-five percent) of all the Active Ingredient needed by TH at a price equal to or lower than the price which TH would otherwise be required to pay to a third party Active Ingredient
manufacturer, as notified in writing by TH to Acraf; provided, however, that if Acraf does not agree to the same price, timelines, terms and conditions offered by the third party manufacturer within [***] ([***]) days of receipt of the
price, 

  

 3 

	 	    	timelines, terms and conditions from TH, then this right shall lapse and TH shall be free, in its sole discretion, to purchase its Active Ingredient requirements from such third
party manufacturer or any other manufacturer without further notice to Acraf (hereinafter referred to as “Supply Right”) (Acraf Licence and Supply Right hereinafter jointly referred to as “Acraf Rights”).

	1.3	Parties agree that each shall have the right to sublicense their respective rights described in the previous Art.1.1 and 1.2 to third parties except as otherwise prohibited in this
Agreement. 

	1.4	Parties agree that the name of each sublicensee will have to be disclosed to the other Party and Parties declare and warrant that each sublicensee will satisfy any obligations
applicable to such sublicensee described in this Agreement. 

	1.5	Parties agree that the THL3 and 4 are considered as fair consideration for Acraf Rights, and Acraf Rights are considered as fair consideration for THL3 and 4, and that no other
payments shall be made by Acraf to TH or by TH to Acraf to use without limitation the rights granted each other pursuant to the above mentioned licences. 

	1.6	For having granted the THL 1 and 2, TH shall pay the following amount to Acraf upon the occurrence of the events specified below: 

	 	a)	a one-time payment of €300.000,00 (three-hundred thousand Euro) to be paid within [***] days of the Effective Date; 

	 	b)	a [***] payment of €[***] ([***] Euro) to be paid within [***] ([***]) days from the date of publishing of the Marketing Authorisation for
the first TH Product authorized for sale in the Acraf Territory; 

	 	c)	a [***] payment of €[***] ([***] Euro) to be paid within [***] ([***]) days from the date of publishing of the Marketing Authorisation for
the first TH Product authorized for sale in the TH Territory; 

	 	d)	a [***] payment of €[***] ([***] Euro) if and when the TH Net Sales (“TH Net Sales” means the sales of TH Products made by TH –
directly or through its sublicensees—at the prices invoiced to the customers less taxes relating to such sales, returns, cash and quantity discount granted to customers, such cash and quantity discounts limited to [***]% ([***]
per cent) made in the TH Territory) exceeds €50.000.000,00 (fifty million Euro)), to be paid within [***] ([***]) days after the date of notification of the relevant sales report as described in Art.1.7.b).

	 	e)	other than the payments required by Art.1.6.a, and the payments that may be required if the conditions of Art1.6.b-d are met, and the payment due upon Acraf’s fulfilment of its
obligation under Art.3, this Agreement does not impose any additional payment obligations on TH; thus, TH shall have no obligation under this Agreement to pay any amount in excess of [***] ([***] Euros) to Acraf during the term of this
Agreement or thereafter. 

	1.7	TH undertakes to report to Acraf: 

	 	a)	 the date on which all the marketing authorisation applications have been made and the date on which all the relevant Marketing Authorisations have been obtained in
Acraf Territory and in TH Territory according to what is provided in the previous Art.1.1. within 30 (thirty) days from the application date and from the date on which the above mentioned Marketing Authorisation have been 

  

 4 

 
obtained; 

	 	b)	within 30 (thirty) days from the end of each year period starting from January 1, 2005, the report of TH Net Sales for the calendar year then ended, such reporting obligation to
terminate upon the payment, if any, of the one-time payment described in Art.1.6.d. 

  

	2.	Development Plan 

	2.1	TH undertakes to use reasonable business efforts to complete the DP within sixty (60) months from the Effective Date of this Agreement (hereinafter referred to as
“DPTerm”). 

	2.2	TH shall be free to use the Dossier in connection with the TH Licence after TH makes the payment described in the Art.1.6.a). 

	2.3	After TH makes the payment described in the Art. 1.6.a), Acraf shall deliver to TH a copy of the Dossier in its possession. 

	2.4	TH shall keep Acraf informed on a regular and continual basis concerning the activities conducted by it pursuant to the DP. 

	2.5	Within twelve (12) months from the end of the DP, TH undertakes to notify Acraf in writing – with a registered letter – of the Results (hereinafter referred to as
“Notification”). 

	2.6	Any and all fees in conjunction with the assignment of the right to use the Dossier and with the carrying out of the DP shall be borne by TH. 

	2.7	The DP may be modified by TH only by written notification to Acraf and after written approval, which shall not be unreasonably withheld, by Acraf. 

  

	3.	Active Ingredient 

	3.1	Acraf undertakes to sell to TH an amount of Kg 22 (twenty-two] of Active Ingredient manufactured on [***] – with an expiry date on [***]—suitable for use in
TH Products as better described in the analytical document to be delivered as provided in the following Art.3.2 (hereinafter referred to as “Amount”). 

	3.2	The Amount shall be supplied by Acraf in bulk with all the relevant analytical documents updated to the Effective Date. 

	3.3	The delivery time from Acraf to TH shall not exceed 60 (sixty) days starting from the Effective Date of this Agreement. 

	3.4	Acraf undertakes to deliver the Amount ex works Acraf’s plant of Via Guardapasso 1, 04011 Aprilia (Latina). 

	3.5	The price of the Amount will be €75.000,00 (seventy five thousand/00) euros (hereinafter referred to as “Payment”) to be paid within 30 (thirty) days from the
invoice date. 

  

	4.	Duration 

	4.1	Parties agree that: 

	 	a)	the Acraf Licence shall commence on the Effective Date of this Agreement and shall extend for a term of 15 (fifteen) years after the date of first launch – directly by Acraf or
through any third party appointed as sublicensee by Acraf—of any Product that expires after November, 2004, in the Acraf Territory; 

  

 5 

	 	b)	the Supply Right shall commence on the second anniversary of the Effective Date and shall extend for a term of 10 (ten) years after the date of first launch – made directly by
TH or through any third party appointed as sublicensee by TH—of the first TH Product in the TH Territory and as provided in Art. 1.2B and 

	 	c)	the TH Licence shall commence on the Effective Date and shall extend for a term of 15 (fifteen) years after the date of first launch – directly by TH or through any third party
appointed as sublicensee by TH—of the first TH Product in the TH Territory. 

	4.2	Parties agree that at the end of the Acraf Licence and of the TH Licence, Acraf will remain owner and holder of all the marketing authorisations for the Product obtained by Acraf in
the Acraf Territory and TH will remain owner and holder of all the marketing authorisations for TH Products obtained by TH in the TH Territory and in the Acraf Territory. Any termination or expiration of this Agreement shall not act to divest a
Party of any interest in any regulatory filing or authorization made prior to the effective date of such termination or expiration. 

  

	5.	Results and Intellectual Property Rights 

	5.1	It is expressly agreed between the Parties that TH shall not acquire any intellectual property rights with respect to the Dossier other than the right described in the previous
Art.1.1 and elsewhere in this Agreement, and that TH shall have the ownership of the Results as defined in the following Art.5.2 and any patents relating to such Results (hereinafter referred to as “Patent”).

	5.2	Parties agree to define as “Results” all technical information, formulations, processes, know-how, data, specifications, characterization methods and results, and
other proprietary information, whether or not patented or patentable, only and exclusively related to the anti-cancer activity of the Active Ingredient obtained by TH in the clinical trials carried out pursuant to the DP. 

 

	6.	Confidentiality 

	6.1	Parties agree to define as “Confidential Information” all information exchanged by the parties relating to the Dossier, any modification thereof, any New Dossier,
DP, or otherwise provided to a Party under this Agreement. Parties agree that documents and information contained in the Dossier will be used by TH in seeking regulatory approval of TH Products and by Acraf in seeking additional regulatory approvals
of Product and so may enter the public domain as such additional indication is, or such TH Products are, approved. 

	6.2	Each of the Parties shall hold in confidence any and all Confidential Information disclosed to it by the other party before and during the term of this Agreement and shall not use
such Confidential Information except in accordance with the terms of this Agreement. 

	6.3	Neither party shall, without the prior written consent of the other party, disclose to any third party (except to regulatory authorities to obtain and maintain patents, product
registrations or other disclosures required by 

  

 6 

 
law) or use for its own purposes any Confidential Information of the other party except in connection with the development and registration of the Product
and TH Products. 

	6.4	The provisions of this Art.6 shall survive the expiry or termination of the Agreement until all of the Confidential Information has fallen within one of the exceptions set forth in
this Art.6. 

	6.5	The obligation of confidentiality under this Art.6 shall not apply to any data or information disclosed by one party to the other which: 

	 	6.5.1	at the time of the disclosure or thereafter is in or comes into the public domain by publication or otherwise, through no fault of either party; 

	 	6.5.2	is disclosed to the recipient by a third party having legal right to make such disclosure; 

	 	6.5.3	is previously known to the recipient at the date of disclosure; or 

	 	6.5.4	is required by law to be disclosed, provided that, except in connection with seeking regulatory approval for the Product and TH Products, the disclosing party furnishes the other
party with written notice that the data or information is proposed to be disclosed sufficiently in advance of the proposed disclosure so as to provide the other party with reasonable opportunity to seek to prevent the disclosure of or to obtain a
protective order for the data or information. 

	6.6	Further, each party shall be entitled to disclose any Confidential Information received by its responsible employees and officers, including any such employees and officers of any
of their Affiliates, on a “need-to-know-basis” for the proper performance of this Agreement and for the negotiation and performance of any licenses and sublicenses hereunder. 

	6.7	The parties shall impose at least the same degree of confidentiality on each such employee and officer or other recipient as is imposed upon the parties under this Agreement with
respect to confidential information, and shall be responsible to the disclosing party for any breaches of confidentiality made by such persons. 

  

	7.	Amendment 

 This Agreement may be amended
only by a written instrument signed by both Parties. 
  

	8.	Good Faith 

	8.1	Any provision of this Agreement that is held to be inoperative, unenforceable or invalid in any jurisdiction shall be inoperative, unenforceable or invalid in that
jurisdiction without affecting any other provision hereof in that jurisdiction or the operation, enforceability or validity of that provision in any other jurisdiction, and to this end the provisions hereof are declared to be severable.

	8.2	Subject to this, such provision will be renegotiated by the parties in such a way as to render the same lawful and to achieve, to the extent possible, the economic, business and
other intent of the original provisions. 

	8.3	Each party has considered this Agreement and it is the good faith belief of each party that the Agreement is in accordance with the national and 

  

 7 

 
supranational treaties, laws, rules and regulations applicable hereto. 

	9.	Force Majeure 

	9.1	In this Agreement, “Force Majeure” means an event or occurrence beyond the reasonable control of a party which by the exercise of reasonable diligence could not be
overcome, including, but not limited to, strikes, lock-outs, labour disruptions, acts of God, changes in the law, restraints of governments, riots, arrests of people, act of war, civil disturbances, rebellion or sabotage, fire, flood, lightning,
earthquake, epidemic, not caused by the act or omission of the party, any delay or failure by a governmental authority to issue any relevant permit or order not caused by the act or omission of the party. 

	9.2	A party shall be deemed not to be in default with respect to non-performance of any of its obligations under this Agreement, if and so long as such non-performance is due in
whole or in some material way to an event of Force Majeure and that party has used its commercially reasonable efforts to remove the event of Force Majeure and to perform its obligations under the Agreement. If an event of Force Majeure occurs, the
party affected shall promptly notify the other party of the occurrence of the event, its extent and probable duration and will use its best endeavors to overcome the difficulties created thereby and to resume performance of its obligations as soon
as practicable. 

	9.3	If a party’s failure to perform any of its obligations due to a Force Majeure has continued for thirty (30) days, unless within such period the non-performing party has begun
to substantially remedy its inability to perform, and will be in a position to fully resume its performance obligations within a further thirty (30) days thereafter, the other party may, if itself not in default under the Agreement, terminate this
Agreement by providing written notice to the non-performing party. In the event of such termination, both parties’ respective rights and obligations under this Agreement shall terminate except for vested rights and any amounts previously due
and owing by one party to the other and except for any other obligations which this Agreement expressly provides shall survive termination, or which should, by their nature, so survive. 

  

	10.	Communication 

	    	Any notice or request with reference to this Agreement shall be made by registered mail; return receipt requested and shall be directed by one party to the other at its respective
following address: 

  

					
	 	 	 —Acraf:
	  	Attn.to Maria Rita Luparini
P.le della Stazione snc, 00040 S.Palomba, Pomezia,
Rome, Italy
			
	 	 	 —TH:
	  	Attn. to Dr. George Tidmarsh, President
Threshold Pharmaceuticals, Inc.
951 Gateway Blvd., Suite 3A
South San Francisco, CA 94080 USA

  

 8 

	11.	Applicable Law and Jurisdiction 

	11.1	This Agreement shall be governed and construed in accordance with the laws of Delaware, U.S.A 

	11.2	In case the dispute cannot be settled amicably, the place of performance and venue for all disputes arising out of this contract will be London, England. 

 

	12.	Relationship of the Parties 

	12.1	The relationship between the parties created pursuant to this Agreement is intended to and shall be solely that of independent contractors. 

	12.2	Neither party, nor its employees, agents or representatives shall under any circumstances be considered employees, agents, partners, joint venturers or representatives of the other
party. 

	12.3	Neither party, nor their employees, agents or representatives shall act or attempt to act, or represent itself, directly or by implication, as an employee, agent, joint venturer,
partner or representative of the other party or in any manner assume or create, or attempt to assume or create, any obligation or liability of any kind, express or implied, on behalf of or in the name of the other party. 

  

	13.	Further Assurances 

	    	Each party will at any time and from time to time, upon the request of the other party, execute and deliver such further documents and do such further acts and things as the other
party may reasonably request to evidence, carry out and give full effect to the terms, conditions, intent and meaning of this Agreement. 

  

	14.	Entire Agreement, Waiver, Amendment. 

	14.1	This Agreement, together with Annexes A, B and C hereto, supersedes any prior agreements between the parties as to the subject matter of the Agreement, whether oral or in writing,
and contains the entire understanding between the parties as to the subject matter of the Agreement. 

	14.2	Any Confidential Information previously disclosed by the parties in respect of such subject matter shall now be subject to the confidentiality provisions hereof.

	14.3	No delay or failure on the part of a party in exercising any rights under this Agreement shall affect any of such party’s other rights. 

	14.4	This Agreement may not be modified or amended except by further instrument duly executed by the authorized representatives of both parties. 

	14.5	The preamble to this Agreement shall form an integral part of this Agreement and be binding on the parties hereto. 

  

	15.	Other provisions 

	15.1	Amendments and supplements to this Agreement must be made in writing in order to take effect. 

  

 9 

	15.2	Should a provision of this Agreement be or become legally ineffective or should a gap in the Agreement be ascertained, this shall not have an effect on the validity of the remaining
provisions. 

	15.3	A reasonable provision shall become valid which comes closest to the commercial aim of this Agreement and the intention of the parties as far as legally possible instead of the
ineffective provision or in order to fill in the gap. 

  

					
	 Aziende Chimiche Riunite
Angelini Francesco
Acraf S.p.a.
	  	 	  	        Threshold Pharmaceuticals, Inc.
	 	  	 	  	 
			
	/s/ Gianluigi Frozzi	  	 	  	/s/ George Tidmarsh
	 Date, 6/24/2004
	  	 	  	Date, 6/24/2004

  

 10 

 Annex A 
 Development
Plan 
  
 [***] trial 
 TH provided clinical trial funding to a recently completed trial of Product in combination with other anti-cancer agents at a site in Italy. Over the next six months,
this data will be analyzed to determine if the results warrant further clinical development for this indication. The Results will be shared under confidentiality with Acraf. 
  
 If an [***] trial is not pursued, TH contemplates undertaking either a trial in [***], a trial in
[***] and [***] or [***], as described below. 
  
 [***] trial 
 TH is evaluating whether to initiate clinical development of the Product or a TH Product in
certain [***] indications, including for [***] in [***] or [***]. The trial would be a [***] trial of no more than [***] patients [***], start in [***], and have a [***] duration.

 TH could use the Product or an equivalent TH Product in such a trial. 
  
 [***] trial 
 TH is evaluating
whether to initiate clinical development in [***] and [***] in [***], including for [***] and [***] in [***] with [***] or for [***] in [***]. The trial would be similar in timelines,
size, and duration as described above. TH could use the Product or an equivalent TH Product in such a trial. 
  

 11 

 Annex B 
 TH Territory

  
 TH Territory means all the countries of the world that are not in the Acraf
Territory 
  

 12 

 Annex C 
 Acraf
Territory 
  
 EU Members 
 Austria, 
 Belgium, 
 Cyprus, 
 Czech Republic, 
 Denmark, 
 Estonia, 
 Finland, 
 France, 
 Germany, 
 Greece, 
 Hungary, 
 Ireland, 
 Italy, 
 Latvia, 
 Lithuania, 
 Luxembourg, 
 Malta,

 Netherlands, 
 Poland, 
 Portugal 
 Slovakia, 
 Slovenia, 
 Spain, 
 Sweden, 
 United Kingdom 
  
 EEA Members 
 Iceland, 
 Liechtenstein, 
 Norway 
  
 Others 
 Bosnia-Herzegovina 
 Bulgaria 
 Croatia 
 Rep. of Macedonia 
 Romania 
 San Marino 
 Vatican 
 Yugoslavia 
 Armenia 
 Azerbajan 
 Belorussia 
 Georgia 
 Kazakhstan 
 Kirghizistan 
 Rep. of Moldova 
 Tadjikistan 
 Ukraina 
 Uzbekistan 
  

 13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]