Document:

Composite Indenture

 EXHIBIT 10.1 
  
 COMPOSITE COPY 
  

  
 INDENTURE 
  
 dated as of December 22, 2004 
  
 by and between 
  
 CINACALCET ROYALTY SUB LLC 
 a Delaware limited liability company, 
 as issuer of the Notes, 
  
 and 
  
 U.S. BANK NATIONAL ASSOCIATION 
 as initial trustee of the Notes 
  
 (As amended by the Supplemental Indenture, dated as of February 2, 2005, 
 between Cinacalcet Royalty Sub LLC and U.S. Bank National
Association) 
  

 Table of Contents 
  

					
	 	    	 	  	Page

	 GRANTING CLAUSE
	  	1
		
	 HABENDUM CLAUSE
	  	2
	
	Article I
	DEFINITIONS
			
	 Section 1.01
	    	Definitions	  	3
	 Section 1.02
	    	Rules of Construction	  	15
	 Section 1.03
	    	Compliance Certificates and Opinions	  	16
	 Section 1.04
	    	Acts of Noteholders	  	16
	
	Article II
	THE NOTES
			
	 Section 2.01
	    	Amount Not to Exceed the Initial Outstanding Principal Balance; Terms; Form; Execution and Delivery	  	17
	 Section 2.02
	    	Restrictive Legends	  	19
	 Section 2.03
	    	Registrar and Paying Agent	  	21
	 Section 2.04
	    	Paying Agent to Hold Money in Trust	  	22
	 Section 2.05
	    	Method of Payment	  	22
	 Section 2.06
	    	Minimum Denomination	  	23
	 Section 2.07
	    	Transfer and Exchange; Cancellation	  	23
	 Section 2.08
	    	Mutilated, Destroyed, Lost or Stolen Notes	  	23
	 Section 2.09
	    	Payments of Transfer Taxes	  	24
	 Section 2.10
	    	Book-Entry Provisions	  	24
	 Section 2.11
	    	Special Transfer Provisions	  	25
	 Section 2.12
	    	Temporary Definitive Notes	  	28
	 Section 2.13
	    	Statements to Noteholders	  	28
	 Section 2.14
	    	CUSIP, CINS AND ISIN Numbers	  	29
	 Section 2.15
	    	Refinancing Notes	  	29
	 Section 2.16
	    	Class B Notes	  	30
	 Section 2.17
	    	Contingent Payment Status	  	32
	
	Article III
	ACCOUNTS; PRIORITY OF PAYMENTS
			
	 Section 3.01
	    	Establishment of Accounts	  	32
	 Section 3.02
	    	Investments of Cash	  	33
	 Section 3.03
	    	Closing Date Deposits, Withdrawals and Transfers	  	33
	 Section 3.04
	    	Capital Contributions; Interest Reserve Amount.	  	34
	 Section 3.05
	    	Calculation Date Calculations	  	34
	 Section 3.06
	    	Payment Date First Step Transfers	  	35
	 Section 3.07
	    	Payment Date Second Step Withdrawals	  	35
	 Section 3.08
	    	B&W Payment/Amgen Payment	  	36
	 Section 3.09
	    	Redemptions	  	36
	 Section 3.10
	    	Procedure for Redemptions	  	37

  

 i 

					
	Article IV
	DEFAULT AND REMEDIES
			
	 Section 4.01
	    	Events of Default	  	38
	 Section 4.02
	    	Acceleration, Rescission and Annulment	  	38
	 Section 4.03
	    	Other Remedies	  	39
	 Section 4.04
	    	Limitation on Suits	  	40
	 Section 4.05
	    	Waiver of Existing Defaults	  	40
	 Section 4.06
	    	Restoration of Rights and Remedies	  	41
	 Section 4.07
	    	Remedies Cumulative	  	41
	 Section 4.08
	    	Authority of Courts Not Required	  	41
	 Section 4.09
	    	Rights of Noteholders to Receive Payment	  	41
	 Section 4.10
	    	Trustee May File Proofs of Claim	  	41
	 Section 4.11
	    	Undertaking for Costs	  	41
	 Section 4.12
	    	Control by Noteholders	  	41
	 Section 4.13
	    	Controlling Party	  	42
	 Section 4.14
	    	Application of Proceeds.	  	42
	 Section 4.15
	    	Waivers of Rights Inhibiting Enforcement.	  	42
	
	Article V
	REPRESENTATIONS, WARRANTIES AND COVENANTS
			
	 Section 5.01
	    	Representations and Warranties	  	42
	 Section 5.02
	    	Covenants	  	44
	 Section 5.03
	    	Reports by the Issuer	  	45
	
	Article VI
	THE TRUSTEE
			
	 Section 6.01
	    	Acceptance of Trusts and Duties	  	45
	 Section 6.02
	    	Absence of Duties	  	46
	 Section 6.03
	    	Representations or Warranties	  	46
	 Section 6.04
	    	Reliance; Agents; Advice of Counsel	  	46
	 Section 6.05
	    	Not Acting in Individual Capacity	  	47
	 Section 6.06
	    	Compensation of Trustee	  	47
	 Section 6.07
	    	Notice of Defaults	  	47
	 Section 6.08
	    	May Hold Notes	  	47
	 Section 6.09
	    	Corporate Trustee Required; Eligibility	  	47
	 Section 6.10
	    	Reports by the Trustee	  	48
	 Section 6.11
	    	Calculation Agent	  	48
	 Section 6.12
	    	Pledge Agreement	  	48
	
	Article VII
	SUCCESSOR TRUSTEES
			
	 Section 7.01
	    	Resignation and Removal of Trustee	  	48
	 Section 7.02
	    	Appointment of Successor	  	48
	
	Article VIII
	INDEMNITY
			
	 Section 8.01
	    	Indemnity	  	49
	 Section 8.02
	    	Noteholders’ Indemnity	  	49
	 Section 8.03
	    	Survival	  	49

  

 ii 

					
	Article IX
	MODIFICATION
			
	 Section 9.01
	    	Modification with Consent of Holders	  	49
	 Section 9.02
	    	Modification Without Consent of Holder	  	50
	 Section 9.03
	    	Subordination and Priority of Payments	  	50
	 Section 9.04
	    	Execution of Amendments by Trustee	  	51
	 Section 9.05
	    	Conformity with Trust Indenture Act	  	51
	
	Article X
	SUBORDINATION
			
	 Section 10.01
	    	Subordination of the Notes	  	51
	
	Article XI
	DISCHARGE OF INDENTURE
			
	 Section 11.01
	    	Discharge of Liability on the Notes	  	52
	
	Article XII
	MISCELLANEOUS
			
	 Section 12.01
	    	Right of Trustee to Perform	  	52
	 Section 12.02
	    	Waiver	  	52
	 Section 12.03
	    	Severability	  	53
	 Section 12.04
	    	Restrictions on Exercise of Certain Rights	  	53
	 Section 12.05
	    	Notices	  	53
	 Section 12.06
	    	Assignments	  	54
	 Section 12.07
	    	Reserved	  	54
	 Section 12.08
	    	Application to Court	  	54
	 Section 12.09
	    	Governing Law	  	54
	 Section 12.10
	    	Jurisdiction	  	54
	 Section 12.11
	    	Counterparts	  	54
	 Section 12.12
	    	Table of Contents, Headings, Etc	  	55
	 Section 12.13
	    	Trust Indenture Act	  	55
	 Section 12.14
	    	Confidential Information	  	55

  
 Exhibits

  

					
	Exhibit A	  	-	    	    Form of Class A Note
	Exhibit F	  	-	    	    List of Process Agents
	Exhibit H	  	-	    	    Form of Distribution Report
	Exhibit I	  	-	    	    Form of Certificate
	Exhibit J	  	-	    	    Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S
	Exhibit K	  	-	    	    Form of Certificate to be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	Exhibit M-1	  	-	    	    Form of Certificate to DTC Regarding Interest
	Exhibit M-2	  	-	    	    Form of DTC Certificate Regarding Interest
	Exhibit N	  	-	    	    Form of Confidentiality Agreement

  
 Appendices

  

					
	Appendix A	  	-	    	    Licensed Technology
	Appendix B	  	-	    	    Quarterly Amounts

  

 iii 

 INDENTURE 
  
 INDENTURE, dated as of December 22, 2004 (this “Indenture”), by and between CINACALCET ROYALTY SUB LLC, a Delaware limited liability
company, as issuer of the Notes (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as initial trustee of the Notes (the “Trustee”). 
  
 GRANTING CLAUSE 
  
 NOW, THEREFORE, THIS INDENTURE WITNESSETH, that, in consideration of the premises and the acceptance by the Trustee of the
trusts hereby created and of the purchase and acceptance of the Notes by the Noteholders, and for other good and valuable consideration, the receipt of which is hereby acknowledged, in order to secure (i) the prompt payment of the principal of,
Premium (if any) and interest on, and all other amounts due with respect to, the Notes from time to time outstanding hereunder, including, without limitation, any break funding costs and interest rate swap breakage costs; (ii) payment of any fees,
expenses or other amounts that the Issuer is obligated to pay under or in respect of the Notes, this Indenture or any Related Document; (iii) the payment and performance of all the obligations of the Issuer in respect of any amendment, modification,
extension, renewal or refinancing of the Notes; and (iv) the performance and observance by the Issuer of all the agreements, covenants and provisions expressed or implied herein and in the Notes for the benefit of the Noteholders (collectively, the
“Secured Obligations”) and for the uses and purposes and subject to the terms and provisions hereof, the Issuer does hereby grant, bargain, sell, assign, transfer, convey, mortgage, pledge and confirm unto the Trustee, its
successors and assigns, for the security and benefit of the Noteholders and any other holders from time to time of the Notes, a first priority security interest in all right, title and interest of the Issuer in, to and under the following described
property, rights and privileges (each property, including all other property hereafter specifically subjected to the lien of this Indenture or any indenture supplemental hereto, being the “Collateral” and, collectively, including
all other property hereafter specifically subjected to the lien of this Indenture or any indenture supplemental hereto, are included within and defined as the “Indenture Estate”), to wit: 
  
 (1) The Royalty Rights (but excluding the Quarterly Statement Rights, the
Audit Rights and all Confidential Information) and, if acquired by the Issuer, any and all rights in the Licensed Technology; 
  
 (2) The rights of the Issuer in respect of the obligations of NPS to sell, contribute and sublicense, as applicable, the Licensed Technology to the Issuer
on the Termination Date 
  
 (3) The Purchase and Sale Agreement
and all other agreements to which the Issuer is a party relating to the rights of the Issuer in respect of the transfer and servicing of the Royalty Rights and, if acquired by the Issuer, the Licensed Technology; 
  
 (4) All Hedge Agreements to which the Issuer is a party; 
  
 (5) (A) The Interest Reserve Account and all other Accounts established under
the Indenture at any time established, (B) all amounts from time to time credited to such Accounts, (C) all cash, financial assets and other investment property, instruments, documents, chattel paper, general intangibles, accounts and other property
from time to time credited to such accounts or representing investments and reinvestments of amounts to such Accounts, (D) all interest, principal payments, dividends and other distributions payable on or with respect to, and all proceeds of, (i)
all property so credited or representing such investments and reinvestments and (ii) such Accounts; 
  
 (6) all rents, issues, profits, revenues and other income of the property subjected or required to be subjected to the lien of this Indenture; 

 
 (7) all other general intangibles, instruments, investment property, and
documents of the Issuer; 
  
 (8) all rights (contractual and
otherwise and whether constituting accounts, general intangibles or investment property or financial assets) constituting, arising under, connected with, or in any way related to, any or all of the foregoing property; 
  
 (9) all books, records, ledger cards, files, correspondence, computer
programs, tapes, disks and related data processing software (owned by the Issuer) that at any time evidence or contain information relating to any of the foregoing property or are otherwise necessary or helpful in the collection thereof or
realization thereupon; 

 (10) all documents of title, policies and certificates of insurance, securities, chattel paper and other
documents or instruments evidencing or pertaining to any of the foregoing property; and 
  
 (11) all proceeds and products of any and all of the foregoing property; 
  
 BUT EXCLUDING from the foregoing and from the Collateral and the Indenture Estate the Audit Rights, the Quarterly Statement Rights and all Confidential
Information, and SUBJECT TO all of the terms and conditions of this Indenture; 
  
 HABENDUM CLAUSE 
  
 TO HAVE AND TO
HOLD all and singular the aforesaid property unto the Trustee, its successors and assigns, in trust for the benefit and security of the Noteholders and any other Holders from time to time of each class of the Notes, without any priority of any one
class of Notes over any other class of Notes by reason of difference in time of issuance or otherwise, except as expressly provided herein, and for the uses and purposes and subject to the terms and provisions set forth in this Indenture.

  
 PROVIDED, HOWEVER, that notwithstanding any of the foregoing
provisions or anything to the contrary herein, so long as no Event of Default shall have occurred and be continuing, the Issuer shall have the right, to the exclusion of the Trustee and the Noteholders, to exercise in the Issuer’s name all
rights and powers of the Issuer under the Purchase and Sale Agreement, SUBJECT TO all of the terms and conditions of this Indenture; 
  
 It is expressly agreed that anything herein contained to the contrary notwithstanding, the Issuer shall remain liable under the Related Documents to
perform all of the obligations assumed by it thereunder in accordance with and pursuant to the terms and provisions thereof, and, prior to the foreclosure of the lien of this Indenture, the Trustee and the Holders of the Notes shall have no
obligation or liability under any thereof by reason of or arising out of the assignment hereunder, nor shall the Trustee or the Holders of the Notes be required or obligated in any manner to perform or fulfill any obligations of the Issuer under or
pursuant to any Related Document or, except as herein expressly provided, to make any payment, or to make any inquiry as to the nature or sufficiency of any payment received by it, or present or file any claim, or take any action to collect or
enforce the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times; provided, however, that in exercising any right of the Issuer under any Related Document, the Trustee and the Holders of the
Notes shall be bound by, and comply with, the provisions thereof applicable to the Issuer. 
  
 The Issuer does hereby constitute the Trustee the true and lawful attorney of the Issuer, irrevocably, granted for good and valuable consideration and coupled with an interest and with full power of substitution, and
with full power (in the name of the Issuer or otherwise), to ask, require, demand, receive, compound and give acquittance for any and all monies and claims for monies (in each case including insurance and requisition proceeds) due and to become due
under or arising out of any Related Document and all other property which now or hereafter constitutes part of the Indenture Estate, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any
action or institute any proceedings which the Trustee may deem to be necessary or advisable in the premises; provided that the Trustee shall not exercise any such rights except upon the occurrence and during the continuance of an Event of
Default hereunder. 
  
 The Issuer agrees that at any time and from
time to time, upon written request of the Trustee, the Issuer will promptly and duly execute and deliver or cause to be duly executed and delivered any and all such further instruments and documents as the Trustee may reasonably deem desirable in
obtaining the full benefits of the assignment hereunder and of the rights and powers herein granted. 
  
 The Issuer does hereby: (a) warrant and represent that it has not assigned or pledged, and (b) covenant that it will not assign or pledge, so long as the
assignment hereunder shall remain in effect and has not been terminated pursuant to Section 11.01 herein, any of its right, title or interest hereby assigned, to anyone other than the Trustee. 
  
 It is hereby further agreed that any and all property described or referred
to in the granting clauses hereof which is hereafter acquired by the Issuer shall ipso facto, and without any other conveyance, assignment or act on the part of the Issuer or the Trustee, become and be subject to the Security Interest herein granted
as fully and completely as though specifically described herein, but nothing contained in this paragraph shall be deemed to modify or change the obligations of the Issuer contained in the foregoing paragraphs. 
  

 2 

 Except where the context clearly indicates a different meaning all terms defined in Article 1, 8 or 9 of
the UCC, as in effect on the date of this Indenture, are used in this Granting Clause with the meanings therein ascribed to them; such terms include “document”, “general intangibles”, “instrument”, “investment
property”, “proceeds” and “security interest”. In addition, all capitalized terms used in this Granting Clause, including the terms “account” and “security interest”, when capitalized, shall have the
meanings specified in Section 1.01 below. 
  
 The Issuer does
hereby ratify and confirm the other Related Documents to which it is a party and, subject to the other terms of this Indenture, does hereby agree that it will not take or omit to take any action, the taking or omission of which might result in an
alteration or impairment of the assignment hereunder or of any of the rights created by any thereof. 
  
 IT IS HEREBY COVENANTED AND AGREED by and between the parties hereto as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01 Definitions. For purposes of this Indenture, the following terms shall have the meanings indicated below: 
  
 “Acceleration Default” means any Event of Default of the
type described in Section 4.01(e) or 4.01(f) hereof. 
  
 “Acceleration Notice” means a notice given after the occurrence of an Event of Default to the Issuer by the Senior Trustee at the instruction of the Noteholders representing a majority of the aggregate Outstanding Principal
Balance of the Senior Class of Notes, with a copy to NPS, declaring all Outstanding principal of and accrued and unpaid interest on the Notes to be immediately due and payable. 
  
 “Accounts” means the Collection Account, the Interest Reserve Account and any Redemption Account.

  
 “Act” has the meaning, with respect to any
Noteholder, given to such term in Section 1.04 hereof. 
  
 “Actual Annual Net Sales Percentage” means, as of any Payment Date, the ratio, expressed as a percentage, rounded to four decimal places, of (x) the net sales of Cinacalcet during the four full calendar quarters immediately
preceding the quarter in which such Payment Date occurs, as reported by Amgen in the statements for such calendar quarters delivered pursuant to Section 7.6(A) of the License Agreement, to (y) the sum of the amounts for the same four quarters set
forth on Appendix B. 
  
 “Additional Interest”
means, with respect to the Notes, interest accrued on the amount of any interest and Premium, if any, in respect of such Notes that is not paid when due at the Stated Rate of Interest of such Notes for each Interest Accrual Period until any such
unpaid interest or Premium is paid in full, to the fullest extent permitted by Applicable Law. 
  
 “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with, such Person or is a director or officer of
such Person; “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting Stock, by contract or
otherwise. 
  
 “Agent Members” has the meaning
given to such term in Section 2.10 hereof. 
  
 “Amgen” means Amgen Inc., a Delaware corporation. 
  
 “Amgen Payment” means (i) any payment by Amgen of an NPS obligation, including a B&W Royalty that is offset against the amount of the Royalty Payments due from Amgen to the Issuer, and (ii) any
offset by Amgen against the amount of such Royalty Payments in respect of any obligation of NPS to Amgen. 
  
 “Applicable Law” means, with respect to any Person, all laws, rules, regulations and orders of governmental regulatory authorities
applicable to such Person or any of its properties or assets. 
  

 3 

 “Audit Rights” means the right to appoint an independent certified public accountant and
receive a report therefrom under Section 7.6(C) of the License Agreement. 
  
 “Authorized Agent” means, with respect to the Notes, any authorized Paying Agent or Registrar for such Notes. 
  

“Available Collections Amount” means, as of any Payment Date, the total of (a) the amount on deposit in the Collection Account as of
the Calculation Date immediately preceding such Payment Date, (b) the amount of the investment earnings on amounts in the Interest Reserve Account as of such Calculation Date, and (c) in respect of any Payment Date on or prior to December 30, 2006,
the amount, if any, withdrawn from the Interest Reserve Account on such Payment Date pursuant to Section 3.04(b) or Section 3.07(a). 
  
 “Base Case Amortization Schedule” means the 100% Base Case Amortization Schedule set forth in the Private Placement Memorandum.

  
 “Base Case Final Payment Date” means for any
Refinancing Notes or Class B Notes, if applicable, the date specified in the indenture supplement and/or Board Resolution providing for their issuance. 
  
 “Basic Terms Modification” has the meaning given to such term in Section 9.01 hereof. 
  
 “Beneficial Holder” means any Person that holds a Beneficial
Interest in any Global Note through an Agent Member. 
  
 “Beneficial Interest” means any beneficial interest in any Global Note, whether held directly by an Agent Member or held indirectly through an Agent Member’s Beneficial Interest in such Global Note. 
  
 “Board” means the Managers of the Issuer, including the
Independent Manager. 
  
 “Board Resolution” means
a copy of a resolution certified by a Manager (other than the Independent Manager) as having been duly adopted by the Board and being in full force and effect on the date of such certification. 
  
 “Business Day” means any day except a Saturday, Sunday or
other day on which commercial banks in New York, New York are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office is closed for business and, for purposes of calculating LIBOR, a day on
which dealings in deposits in U.S. dollars are transacted, or with respect to any future date are expected to be transacted, in the London interbank market. 
  
 “B&W” means The Brigham and Women’s Hospital, Inc., a Massachusetts not-for-profit corporation. 
  
 “B&W Agreement” means the Patent Agreement, effective
February 19, 1993, between B&W and NPS, as amended, restated or supplemented from time to time. 
  
 “B&W/Amgen Interest” means the amount of interest payable as a result of the increase in the Stated Interest Rate on the Class A
Notes pursuant to the first sentence of the last paragraph of Section 2.01(b). 
  
 “B&W Payment” means any payment made by the Trustee in respect of any B&W Shortfall. 
  
 “B&W Royalty” means the amount payable by NPS to B&W as a royalty related to the Licensed Technology pursuant to the B&W
Agreement. 
  
 “B&W Shortfall” means the
amount, if any, of the B&W Royalty that is due and payable but that has not been paid by NPS as of any Calculation Date. 
  
 “B&W Sublicense” means a sublicense from NPS to the Issuer of the exclusive license granted by B&W to NPS under the B&W
Agreement relating to claims otherwise included in the Licensed Technology. 
  

 4 

 “Calculation Agent” means US Bank and any successor appointed as Calculation Agent
pursuant to Section 6.11. 
  
 “Calculation Date”
means, for any Payment Date, the fifth Business Day immediately preceding such Payment Date. 
  
 “Capital Account” has the meaning set forth in Section 3.01(a) hereof. 
  
 “Cash Sweep Payment Percentage” means the following percentage, rounded to four decimal places, based on the Actual Annual Net Sales
Percentage for the applicable March 30 Payment Date: 
  
 (a) if the Actual Annual Net Sales Percentage for such March 30 Payment Date is equal to or less than 80%, the Cash Sweep Payment Percentage is 100%; 
  

(b) if the Actual Annual Net Sales Percentage for such March 30 Payment Date is greater than 80% but less than 100%, the Cash Sweep
Payment Percentage is equal to the sum of (x) 100% plus (y) the product of (i) 2.074 and (ii) the excess of such Actual Annual Net Sales Percentage over 80%; and 
  
 (c) if the Actual Annual Net Sales Percentage for such March 30 Payment Date is equal to or greater than
100%, the Cash Sweep Payment Percentage is 141.48%. 
  
 “Cash Sweep Premium” is, for any March 30 Payment Date, equal to the excess, if any, of the Net Available Collections Amount for such March 30 Payment Date over the Cash Sweep Principal Amount for such March 30 Payment
Date. 
  
 “Cash Sweep Principal Amount” is, for
any March 30 Payment Date, equal to the quotient of (x) the Net Available Collections Amounts for such March 30 Payment Date, divided by (y) the Cash Sweep Payment Percentage. 
  
 “Class B Issuance” has the meaning given to such term in Section 2.16(a) hereof. 
  
 “Class A Notes” means the Class A Notes, due March 30, 2017,
of the Issuer in the initial Outstanding Principal Balance of $175,000,000, substantially in the form of Exhibit A hereto, and any Refinancing Notes issued to refinance the Class A Notes. 
  
 “Class B Notes” means the Class B Notes, if any, issued in such form as shall be authorized by a Board
Resolution and any supplemental indenture in respect thereof and any Refinancing Notes issued to refinance the Class B Notes. 
  
 “Clearstream” means Clearstream Banking, a French société anonyme. 
  
 “Closing Date” means the date of issuance of the Class A
Notes. 
  
 “Code” means the Internal Revenue Code
of 1986, as amended. 
  
 “Collaborative
Agreements” means the B&W Agreement, the Collaborative Research and License Agreement dated as of June 30, 1995, between NPS and Kirin Brewery Company, Limited (“Kirin”), as amended, restated or supplemented from time
to time (the “Kirin Agreement”); and the Collaborative Research and License Agreement dated as of November 1, 1993, between NPS and GlaxoSmithKline plc (“GSK”, as successor to SmithKline Beecham
Corporation), as amended, restated or supplemented from time to time (the “GSK Agreement”); 
  
 “Collateral” has the meaning given to such term in the Granting Clause herein. 
  
 “Collection Account” has the meaning given to such term in
Section 3.01(a) hereof. 
  
 “Collections” means,
without duplication, (i) Royalty Payments; (ii) any Milestone Payment; (iii) any Hedge Receipts; (iv) any amount withdrawn from the Interest Reserve Account pursuant to Section 3.04(b) and 

  

 5 

 
Section 3.07(a), (v) reimbursement by NPS of any B&W Payment or Amgen Payment and B&W/Amgen Interest, (vi) investment income, if any, on all amounts
on deposit in the Accounts and (vii) any other amounts received by the Issuer (other than the proceeds of the Class A Notes, any Class B Notes and any Refinancing Notes). 
  
 “Confidential Information” means any and all information provided by Amgen or NPS in respect of the License
Agreement and the Licensed Technology that is “Confidential Information,” as defined in the License Agreement. 
  
 “Confidentiality Agreement” means a Confidentiality Agreement substantially in the form of Exhibit N attached hereto. 
  
 “control” has the meaning given to such term in the
definition of “Affiliate,” and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Controlling Party” means the Person entitled to act as such pursuant to the terms of Section 4.13 hereof. 
  
 “Corporate Obligations” means obligations of corporate
issuers. 
  
 “Corporate Trust Office” means, with
respect to the Trustee, the office of such trustee in the city at which at any particular time its corporate trust business shall be principally administered and, with respect to the Trustee on the date hereof, shall be Mail Code EP-MN-WS3C, 60
Livingston Avenue, St. Paul, Minnesota 55107, Attention: Corporate Trust Department, Facsimile No: (651) 495-8097. 
  
 “Default” means a condition, event or act which, with the giving of notice or the lapse of time or both, would constitute an Event of
Default, provided that a failure to pay interest on the Class A Notes when such amount becomes due on any Payment Date other than the Final Maturity Date does not constitute a “Default,” provided further that a failure to pay
any such interest not so paid on any such Payment Date in full with Additional Interest thereon by the next succeeding Payment Date shall be an immediate Event of Default, unless waived as provided in Section 4.05 . 
  
 “Definitive Notes” has the meaning given to such term in
Section 2.01(b) hereof. 
  
 “Direction” has the
meaning given to such term in Section 1.04(c) hereof. 
  
 “Distribution Report” has the meaning given to such term in Section 2.13(a) hereof. 
  
 “DTC” means The Depository Trust Company, its nominees and their respective successors. 
  
 “Eligibility Requirements” has the meaning given to such
term in Section 2.03(b) hereof. 
  
 “Eligible
Account” means a trust account maintained on the books and records of an Eligible Institution in the name of the Trustee under and as defined herein. 
  

“Eligible Institution” means any bank organized under the laws of the U.S. or any state thereof, or the District of Columbia (or any
domestic branch of a foreign bank), which at all times has either (A) a long-term unsecured debt rating of A2 or better by Moody’s and A or better by Fitch and S&P or (B) a certificate of deposit rating of P-1 by Moody’s, A-1 by
S&P and F1 by Fitch. 
  
 “Eligible
Investments” means, in each case, book-entry securities, negotiable instruments or securities represented by instruments in bearer or registered form which evidence: 
  
 (a) direct obligations of, and obligations fully guaranteed as to timely payment of principal and interest
by, the U.S. or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the U.S. (having original maturities of no more than 365 days, or such lesser time as is required for the distribution of
funds); 
  
 (b) demand deposits, time deposits or
certificates of deposit of the Operating Bank or of depositary institutions or trust companies organized under the laws of the U.S. or any state thereof, or the 

  

 6 

 
District of Columbia (or any domestic branch of a foreign bank) (i) having original maturities of no more than 365 days, or such lesser time as is required
for the distribution of funds; provided that at the time of investment or contractual commitment to invest therein, the short-term debt rating of such depository institution or trust company shall be at least “F1” by Fitch, “P-1”
by Moody’s and “A-1” by S&P or (ii) having maturities of more than 365 days and, at the time of the investment or contractual commitment to invest therein, a rating of at least “A2” from Moody’s and “A”
from Fitch and S&P; 
  
 (c) corporate or
municipal debt obligations (i) having remaining maturities of no more than 365 days or such lesser time as is required for the distribution of funds and having, at the time of the investment or contractual commitment to invest therein, a rating of
at least “F1” or “A” by Fitch, “P-1” or “A2” by Moody’s and “A-1” or “A” by S&P or (ii) having maturities of more than 365 days and, at the time of the investment or contractual
commitment to invest therein, a rating of at least “A2” from Moody’s and “A” from Fitch and S&P; 
  
 (d) investments in money market funds (including funds in respect of which the Trustee or any of its Affiliates is investment manager or
otherwise) having a rating of at least “A” by Fitch and “A2” by Moody’s; or 
  
 (e) notes or bankers’ acceptances (having original maturities of no more than 365 days, or such lesser time as is required for the
distribution of funds) issued by any depositary institution or trust company referred to in (b) above; 
  
 provided, however, that no investment shall be made in any obligations of any depositary institution or trust company that is identified in a written notice to the Trustee from the Issuer or the Servicer
as having a contractual right to set off and apply any deposits held, and other indebtedness owing, by the Issuer to or for the credit or the account of such depository institution or trust company. 
  
 “Encumbrance” means any mortgage, pledge, lien, charge,
security interest or other encumbrance, including, without limitation, any conditional sale, any sale with recourse against the Issuer, or any agreement to give any security interest. 
  
 “Escrow Account” has the meaning set forth in Section 3.01(a). 
  
 “Euroclear” means Euroclear Bank S.N./N.V., as operator of
the Euroclear System. 
  
 “Event of Default,”
with respect to a class of Notes, has the meaning given to such term in Section 4.01 hereof. 
  
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
  
 “Expenses” means, with respect to the Issuer, any fees, costs or expenses of the Issuer, including, without limitation, the fees and
expenses of the Trustee and the Service Providers, any commitment fee payable to a Hedge Provider, and any payments under indemnity obligations of the Issuer to any Person other than NPS; provided, however, that, except as expressly provided herein,
Expenses shall not include any Transaction Expenses, any amount payable on the Notes, any Hedge Payments or Hedge Breakage Costs or any other amounts ranking pari passu with or junior to interest payable on the Class A Notes in the priority of
payments set forth under Section 3.07 of this Indenture. 
  
 “Final Maturity Date” means, with respect to, (i) the Class A Notes, March 30, 2017, and (ii) with respect to any Class B Notes or any Refinancing Notes, the date specified in the Indenture Supplement providing for their
issuance. 
  
 “Fitch” means Fitch, Inc., and any
successor thereto, or, if such corporation or its successor shall for any reason no longer perform the functions of a securities rating agency, “Fitch” shall be deemed to refer to any other nationally recognized rating agency designated by
the Issuer and meeting the definition of “nationally recognized statistical rating organization,” as set forth in the rules promulgated under the Exchange Act. 
  

 7 

 “Fixed Rate Notes” means the Class A Notes and any Class B Notes or Refinancing Notes
issued with a fixed rate of interest. 
  
 “Floating Rate
Bonds” means any Class B Notes and Refinancing Notes issued with a floating or variable rate of interest. 
  
 “Global Notes” means any Permanent Global Notes and Regulation S Global Notes. 
  
 “guarantee” means any obligation, contingent or otherwise,
of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other Person or (ii) entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided that the term “guarantee” shall not include endorsements for collection or deposit in the ordinary course of
business. The term “guarantee” when used as a verb has a corresponding meaning. 
  
 “Hedge Agreement” means any interest rate hedge, cap, floor, swap option, or other interest rate hedging agreement among the Issuer and any Hedge Provider existing on the Closing Date or entered into
in accordance with Sections 5.02(g) of this Indenture. 
  
 “Hedge Breakage Costs” means any amounts payable by the Issuer to a Hedge Provider as a result of any early termination (however described or defined therein) of any Hedge Agreement. 
  
 “Hedge Payment” means, on the funding date for any Notes or
on any Payment Date, a net payment to a Hedge Provider by the Issuer, but not including Hedge Breakage Costs. 
  
 “Hedge Provider” means the counterparty of the Issuer under any Hedge Agreement. 
  
 “Hedge Receipt” means a net payment to be made by a Hedge
Provider into the Collection Account under a Hedge Agreement and includes any termination payment received from any counterparty to a Hedge Agreement. 
  
 “Holder” has the meaning specified in the definition of “Noteholders.” 
  
 “incur” has the meaning given to such term in Section
5.02(d) hereof. 
  
 “Indebtedness” means, with
respect to any Person at any date of determination (without duplication), (i) all indebtedness of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all
obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement obligations with respect thereto), (iv) all the obligations of such Person to pay the deferred and unpaid purchase price of property or
services, which purchase price is due more than six months after the date of purchasing such property or service or taking delivery and title thereto or the completion of such services, and payment deferrals arranged primarily as a method of raising
funds to acquire such property or service, (v) all obligations of such Person under a lease of (or other agreement conveying the right to use) any property (whether real, personal or mixed) that is required to be classified and accounted for as a
capital lease obligation under U.S. GAAP, (vi) all Indebtedness (as defined in clauses (i) through (v) of this paragraph) of other Persons secured by a lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person, and
(vii) all Indebtedness (as defined in clauses (i) through (v) of this paragraph) of other Persons guaranteed by such Person. 
  
 “Indenture” has the meaning set forth in the preamble hereof. 
  
 “Indenture Estate” has the meaning given to such term in the Granting Clause of this Indenture. 

 
 “Independent Manager” means a Manager of the Issuer who
is not at the time of such person’s appointment as a Manager and who is not, and who has not been at any time during the preceding five (5) years: (i) a director, manager, officer or employee of the Issuer (other than in the capacity of
Independent Manager) or any Affiliate of the Issuer (other than in the capacity of Independent Manager), (ii) a person related to any officer, director, manager 

  

 8 

 
or employee of the Issuer (other than in the capacity of Independent Manager) or any Affiliate of the Issuer(other than in the capacity of Independent
Manager), (iii) a holder (directly or indirectly) of any voting securities of the Issuer or any Affiliate of the Issuer, (iv) a person related to a holder (directly or indirectly) of any voting securities of the Issuer or any Affiliate of the
Issuer, (v) a purchaser, customer or any other Person who derives any of its revenues from interactions with the Issuer or any Affiliate of the Issuer or a family member of such purchaser, customer of other Person; (vi) a trustee in bankruptcy or
other insolvency proceedings for, or a reorganization of, NPS or any subsidiary or Affiliate of NPS. 
  
 “Institutional Accredited Investor” means a Person that is an “accredited investor” as that term is defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act. 
  
 “Intercompany Servicing Agreement” means the agreement between the Company and Seller, dated as of December 22, 2004, as amended, restated, supplemented or otherwise modified from time to time. 
  
 “Interest Accrual Period” means the period beginning on (and
including) the relevant Closing Date and ending on (but excluding) the first Payment Date thereafter and each successive period beginning on (and including) a Payment Date and ending on (but excluding) the next succeeding Payment Date; provided,
however, that the final Interest Accrual Period shall end on but exclude the Final Maturity Date (or, if earlier, with respect to any class of Notes repaid in full, the date such class of Notes is repaid in full). 
  
 “Interest Amount” means, with respect to each class of
Notes, on any Payment Date, the amount of accrued and unpaid interest at the Stated Rate of Interest with respect to such class of Notes on such Payment Date (including any Additional Interest, if any), determined in accordance with the terms
thereof. 
  
 “Interest Reserve Account” has the
meaning given to such term in Section 3.01(a) hereof. 
  
 “Interest Reserve Account Balance” means, as of any Calculation Date, the then outstanding balance of the Interest Reserve Account. 
  
 “Interest Reserve Available Amount” means, as of any Calculation Date, the Interest Reserve Account Balance. 
  
 “Interest Reserve Amount” means, on the Closing Date,
$14,160,000. 
  
 “investment” has the meaning
given to such term in Section 5.02(b) hereof. 
  
 “Issuer” has the meaning set forth in the preamble hereof. 
  
 “LIBOR” means, with respect to each Interest Accrual Period, unless otherwise specified, the London interbank offered rate for deposits in U.S. dollars having a term of three-months for a period
commencing on the second Business Day immediately following the Reference Date for such Interest Accrual Period in amounts of not less than $1,000,000, as such rate appears on Page 3750 on Moneyline Telerate (or such other page as may replace the
3750 page on that service or such other service as may be nominated by the British Bankers’ Association for the purpose of displaying London interbank offered rates for U.S. dollar deposits, “Telerate Page 3750”) at
approximately 11:00 a.m. (London time) on such Reference Date therefor; provided that if three-month LIBOR cannot be determined from Telerate Page 3750, the Calculation Agent shall request the principal London offices of each of four major
banks in the London interbank market selected by the Calculation Agent to provide a quotation of the rate (the “Rate Quotation”) at which three-month deposits in amounts of not less than $1,000,000 are offered by it to prime banks
in the London interbank market, at approximately 11:00 a.m. London time on such Reference Date, that is representative of single transactions at such time (the “Representative Amounts”), and if at least two Rate Quotations are
provided, three-month LIBOR will be the arithmetic mean of the Rate Quotations obtained by the Calculation Agent; provided, further, that in the event three-month LIBOR cannot be determined from Telerate Page 3750 as described herein
and fewer than two Rate Quotations are available, three-month LIBOR will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. New York City time on such Reference Date, by three major banks in New York City, selected by the
Calculation Agent, for loans in Representative Amounts in U.S. dollars to leading European banks, having a term of three-months for a period commencing on the second Business Day immediately following such Reference Date; and provided,
further, that if fewer than three banks selected by the Calculation Agent are quoting such rates, three-month LIBOR for the applicable Interest Accrual Period will be deemed to be the same as three-month LIBOR in effect for the immediately
preceding Interest Accrual Period. 
  

 9 

 “License Agreement” means the Development and License Agreement, effective as of
December 27, 1995, between NPS Pharmaceuticals, Inc. and Amgen, as amended, restated or supplemented from time to time. 
  
 “Licensed Technology” means the patented technology and related know-how of NPS that is the subject of the License Agreement relating to
certain compounds that interact with calcium receptors on parathyroid cells, including Cinacalcet HCl, and the proceeds of and the rights to enforce each of the foregoing, as more fully described in Appendix A to this Indenture. The Licensed
Technology shall also include the B&W Sublicense to the extent necessary to fully exploit the Licensed Technology. 
  
 “LLC Operating Agreement” means the limited liability company agreement of the Issuer, effective as of December 20, 2004. 
  
 “Losses” means any loss, cost, charge, expense, interest,
fee, payment, demand, liability, claim, action, proceeding, penalty, fine, damages, judgment, order or other sanction other than Taxes. 
  
 “Managers” means managers of the Issuer. 
  
 “Milestone Payment” means any milestone payment payable by Amgen to NPS pursuant to Article 6 of the License Agreement. 
  
 “Moody’s” means Moody’s Investors Service, Inc.
and any successor thereto or, if such corporation or its successor shall for any reason no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized rating agency
designated by the Issuer and meeting the definition of “nationally recognized statistical rating organization,” as set forth in the rules promulgated under the Exchange Act. 
  
 “Net Available Collections Amount” means, for any Payment Date, the excess, if any, of the Available
Collections Amount for such Payment Date over the sum of (a) the Interest Amount on the Class A Notes for such Payment Date and (b) the Expenses due and payable on such Payment Date. 
  
 “Non-U.S. Person” means a person who is not a U.S. person, as defined in Regulation S. 
  
 “Noteholder” or “Holder” means any Person
in whose name a Note is registered from time to time in the Register for such Notes. 
  
 “Note Purchase Agreements” means the Note Purchase Agreements, dated December 22, 2004, among the Issuer, NPS and the initial purchasers of the Class A Notes. 
  
 “Notes” means the Class A Notes, any Class B Notes and any
Refinancing Notes. 
  
 “Notices” has the meaning
given to such term in Section 12.05 hereof. 
  
 “NPS” means NPS Pharmaceuticals, Inc., a Delaware corporation. 
  
 “Officer’s Certificate” means a certificate signed by, with respect to the Issuer, a Manager (other than the Independent Manager) and, with respect to any other Person, any officer, director,
trustee or equivalent representative. 
  
 “Operating
Bank” means US Bank or any other Eligible Institution at which the Accounts are held; provided that (i) upon the resignation or removal and the replacement of the Trustee pursuant to the terms of this Indenture, the successor trustee
appointed thereunder shall be the Operating Bank; and (ii) if at any time the Operating Bank ceases to be an Eligible Institution, a successor operating bank shall be appointed by the Servicer on behalf of the Trustee and all Accounts shall
thereafter be transferred to and be maintained at such successor operating bank in the name of the Trustee and such successor operating bank shall thereafter be the “Operating Bank”. 
  

 10 

 “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an
employee of or counsel to the Issuer or NPS, that meets the requirements of Section 1.03 hereof. 
  
 “Optional Redemption” has the meaning given to such term in Section 3.09(a) hereof. 
  
 “Outstanding” means (a) with respect to the Notes of any
class at any time, all Notes of such class theretofore authenticated and delivered by the Trustee except (i) any such Notes cancelled by, or delivered for cancellation to, the Trustee; (ii) any such Notes, or portions thereof, for the payment of
principal of and accrued and unpaid interest on which moneys have been distributed to Noteholders by the Trustee and any such Notes, or portions thereof, for the payment or redemption of which moneys in the necessary amount have been deposited in
the Redemption Account for such Notes; provided that if such Notes are to be redeemed prior to the maturity thereof in accordance with the requirements of Section 3.09 hereof, notice of such redemption shall have been given as provided in Section
3.10 hereof, or provision satisfactory to the Trustee shall have been made for giving such notice; and (iii) any such Notes in exchange or substitution for which other Notes, as the case may be, have been authenticated and delivered, or which have
been paid pursuant to the terms of this Indenture (unless proof satisfactory to the Trustee is presented that any of such Notes is held by a Person in whose hands such Note is a legal, valid and binding obligation of the Issuer); and (b) when used
with respect to any other evidence of indebtedness shall mean, at any time, any principal amount thereof then unpaid and outstanding (whether or not due or payable). 
  
 “Outstanding Principal Balance” means, with respect to any Note or other evidence of indebtedness
Outstanding, the total principal amount of such evidence of indebtedness unpaid and outstanding at any time as determined in the case of the Notes in the information to be provided to the Servicer by the Trustee pursuant to Section 3.05(g) hereof.

  
 “Paying Agent” has the meaning given to such
term in Section 2.03 hereof and initially will be the Trustee. The term “Paying Agent” includes any additional Paying Agent. 
  
 “Payment Date” means March 30, June 30, September 30 and December 30, commencing on March 30, 2005; provided that if any such date
would otherwise fall on a day which is not a Business Day, the Payment Date falling on such date shall be the first following day which is a Business Day, and provided, further, that if any such following Business Day would occur in the
succeeding month, then the Payment Date shall be the first Business Day preceding such date. 
  
 “Permanent Global Note” has the meaning given to such term in Section 2.01 hereof. 
  
 “Permanent Regulation S Global Note” has the meaning given to such term in Section 2.01 hereof. 
  
 “Permitted Encumbrance” means (i) any lien for taxes,
assessments and governmental charges or levies not yet due and payable or which are being contested in good faith by appropriate proceedings; and (ii) any lien created in favor of the Issuer or the Trustee. 
  
 “Permitted Holder” means (i) NPS, (ii) Amgen, (iii) the
Issuer and (iv) any Person that (a) has executed a Confidentiality Agreement and (b) so long as the License Agreement has not been terminated, is not in the business of developing, manufacturing or marketing pharmaceutical or diagnostic products and
is not an Affiliate of any such Person in such business. 
  
 “Person” means any natural person, firm, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, government or any political subdivision thereof or any other legal
entity, including public bodies. 
  
 “Pledge
Agreement” means the Pledge and Security Agreement, dated as of December 22, 2004, between NPS and the Trustee, as amended, restated or supplemented from time to time. 
  
 “Pledged Equity” has the meaning given to such term in the Pledge Agreement. 
  
 “Premium” means, with respect to any Note on any Redemption
Date or Payment Date, any Redemption Premium or Cash Sweep Premium, if applicable or, in the case of any Redemption Date, the portion of the Redemption Price of the Notes being redeemed in excess of the Outstanding Principal Balance of the Notes
being redeemed. 
  

 11 

 “Prior Ranking Amounts” has the meaning assigned to such term in Section 3.07 hereof.

  
 “Private Placement Legend” means the legend
initially set forth on the Notes in the form set forth in Section 2.02 hereof. 
  
 “Private Placement Memorandum” means the Private Placement Memorandum of the Issuer for the Class A Notes, dated December 14, 2004. 
  
 “Purchase and Sale Agreement” means the Purchase and Sale Agreement, dated as of December 22, 2004, between
NPS and the Issuer, as amended, restated or supplemented from time to time. 
  
 “Quarterly Statement Rights” means the right to receive statements under Section 7.6(A) of the License Agreement setting forth, among other things, the Royalty Payments due in respect of the calendar
quarter covered by each such statement. 
  
 “QIB”
means a “qualified institutional buyer” as defined in Rule 144A. 
  
 “Receiver” means any Person or Persons appointed as (and any additional Person or Persons appointed or substituted as) administrative receiver, receiver, manager or receiver and manager. 

 
 “Record Date” means with respect to each Payment Date,
the close of business on the fifteenth (15th) day preceding such Payment Date and, with respect to the date on which
any Direction is to be given by the Noteholders, the close of business on the last Business Day prior to the solicitation of such Direction. 
  
 “Redemption” means any Optional Redemption and any redemption of Notes described in Section 3.09(c) but does not include a redemption of
a Cash Sweep Principal Amount. 
  
 “Redemption
Account” has the meaning given to such term in Section 3.01(a) hereof. 
  
 “Redemption Date” means the date, which shall in each case be a Payment Date, on which Notes are redeemed pursuant to a Redemption, other than a Refinancing Date. 
  
 “Redemption Premium” means, in respect of the Class A Notes,
the product of the Redemption Premium Percentage and the outstanding principal balance of the Notes being redeemed and, in the case of any Refinancing Notes or Class B Notes, the amount, if any, specified in the Board Resolution or indenture
supplement to be paid in the event of a Redemption of such Refinancing Notes or Class B Notes separately from the Redemption Price. 
  
 “Redemption Premium Percentage” means the following percentage, rounded to four decimal places, based on the Actual Annual Net Sales
Percentage for the applicable Redemption Date: 
  
 (a) if the Actual Annual Net Sales Percentage for such Redemption Date is equal to or less than 80%, the Redemption Premium Percentage is zero; 
  
 (b) if the Actual Annual Net Sales Percentage for such Redemption Date is greater than 80% but less than 100%, the Redemption Premium
Percentage is equal to the product of (i) 2.074 and (ii) the excess of such Actual Annual Net Sales Percentage over 80%; and 
  
 (c) if the Actual Annual Net Sales Percentage for such Redemption Date is equal to or greater than 100%, the Redemption Premium Percentage
is 41.48%. 
  
 “Redemption Price” means, (i) in
respect of the Class A Notes on any Redemption Date, an amount equal to the Outstanding Principal Balance of the Class A Notes; and (ii) in respect of any Class B Notes or any Refinancing Notes, the Redemption Price, if any, established by or
pursuant to a Board Resolution or in any indenture supplemental hereto providing for the issuance of such Notes or designated as such in the form of such Notes. Any such Redemption Price may include a Premium or such Board Resolution or indenture
supplement may specify a separate Redemption Premium. 
  

 12 

 “Reference Date” means, with respect to each Interest Accrual Period, the day that is
two Business Days prior to the Payment Date on which such Interest Accrual Period commences; provided, however, that the Reference Date with respect to the initial Interest Accrual Period means the date that is two Business Days before the Closing
Date. 
  
 “Refinancing” has the meaning given to
such term in Section 2.15 hereof. 
  
 “Refinancing
Date” means the date, which shall in each case be a Payment Date, on which the Class A Notes or the Notes of any other class are redeemed in whole, in each case with the proceeds of Refinancing Notes as provided in Section 2.15 hereof.

  
 “Refinancing Expenses” means all Transaction
Expenses incurred in connection with an offering and issuance of Refinancing Notes. 
  
 “Refinancing Notes” means any class of Notes issued by the Issuer under this Indenture at any time and from time to time after the date hereof pursuant to Section 2.15, the proceeds of which are used
to repay all of the Outstanding Principal Balance of a class of Notes and ranking pari passu with such class of Notes. 
  
 “Register” has the meaning given to such term in Section 2.03(a) hereof. 
  
 “Registrar” has the meaning given to such term in Section 2.03(a) hereof and includes any additional
Registrar. 
  
 “Regulation S” means Regulation S
under the Securities Act. 
  
 “Regulation S Global
Note” has the meaning given to such term in Section 2.01(b) hereof. 
  
 “Regulation S Global Note Exchange Date” means the date of exchange of any Temporary Regulation S Global Note for any Permanent Regulation S Global Note, which date shall be forty days after the
Closing Date. 
  
 “Related Documents” means the
Purchase and Sale Agreement, the License Agreement, this Indenture, the Notes and the Pledge Agreement. 
  
 “Relevant Information” means any information provided to the Trustee in writing by any Service Provider retained from time to time by the
Issuer pursuant to the Related Documents. 
  
 “Responsible
Officer” means, (i) with respect to the Trustee, any officer within the Corporate Trust Office, including any Principal, Vice President, Managing Director, Director, Associate or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge and familiarity with the
particular subject and (ii) with respect to the Issuer, a Manager (other than the Independent Manager). 
  
 “Royalty Payments” means the royalties payable by Amgen pursuant to Article 7 and Section 14.3 of the License Agreement (the
“Quarterly Royalty Payments”) and any amounts payable by Amgen pursuant to Section 10.1 of the License Agreement. 
  
 “Royalty Rights” means (x) the rights to (i) the Royalty Payments, (ii) any Milestone Payment, (iii) the Quarterly Statement Rights, (iv)
the Audit Rights and (v) all other rights in respect of the License Agreement sold, assigned or contributed by NPS to the Issuer pursuant to the Purchase and Sale Agreement on the Closing Date and (y) any royalties and other payments in respect of
the use of the Licensed Technology in the Territory that may arise outside of the License Agreement. 
  
 “Rule 144A” means Rule 144A under the Securities Act. 
  

 13 

 “Secured Obligations” has the meaning given to such term in the Granting Clause herein.

  
 “Secured Party” has the meaning given to such
term in the Pledge Agreement. 
  
 “Securities
Act” means the Securities Act of 1933. 
  
 “Security Interests” means the security interests granted or expressed to be granted in the Collateral pursuant to the Granting Clause herein and in the Pledged Equity pursuant to the Pledge Agreement. 
  
 “Senior Claim” has the meaning given to such term in Section
10.01 hereof. 
  
 “Senior Class” means, (i) so
long as any Class A Notes are Outstanding, the Class A Notes, and (ii) if no Class A Notes are Outstanding, the Class B Notes. 
  
 “Senior Trustee” means the Trustee of the Senior Class of the Notes. 
  
 “Service Providers” means the Servicer, the Trustee, the Independent Manager of the Issuer, the Calculation
Agent, the Operating Bank, NPS in respect of its obligations under the Intercompany Servicing Agreement and any Person that becomes the Servicer, the Trustee, the Independent Manager of the Issuer, the Calculation Agent or the Operating Bank in
accordance with the terms of the applicable agreement and, subject to the written approval of Noteholders holding a majority in Outstanding Principal Balance of the Senior Class of Notes, any other Person designated as a Service Provider by the
Issuer. 
  
 “Servicer” means NPS, in its capacity
as collection agent under the Purchase and Sale Agreement, including its successors in interest and permitted assigns, until a successor Person shall have become the Servicer under such agreement, and thereafter “Servicer” shall mean such
successor Person. 
  
 “Shortfalls” has the
meaning given to such term in Section 3.05(e) hereof. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto, or, if such corporation or its successor shall for any reason no longer perform the
functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized rating agency designated by the Issuer and meeting the definition of “nationally recognized statistical rating
organization,” as set forth in the rules promulgated under the Exchange Act. 
  
 “Stated Rate of Interest” means, with respect to any class of the Notes for any Interest Accrual Period, the interest rate set forth in such class of Notes for such Interest Accrual Period.

  
 “Stock” means all shares of capital stock,
all beneficial interests in trusts, all membership interests in limited liability companies, all ordinary shares and preferred shares and any options, warrants and other rights to acquire such shares or interests. 
  
 “Subordinated Claim” has the meaning given to such term in
Section 10.01 hereof. 
  
 “Subsidiary” means, as
to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership, limited liability company or other entity are at the time owned, or the management of which is otherwise
controlled, directly or indirectly through one or more intermediaries, or both, by such Person. 
  
 “Tax” and “Taxes” mean any and all taxes, fees, levies, duties, tariffs, imposts, and other charges of any kind
(together with any and all interest, penalties, loss, damage, liability, expense, additions to tax and additional amounts or costs incurred or imposed with respect thereto) imposed or otherwise assessed by the U.S. or by any state, local or foreign
government (or any subdivision or agency thereof) or other taxing authority, including, without limitation: taxes or other charges on or with respect to income, franchises, windfall or other profits, gross receipts, property, sales, use, capital
stock, payroll, employment, social security, workers’ compensation, unemployment compensation, or net worth and similar charges; taxes or other charges in the nature of excise, withholding, ad valorem, stamp, transfer, value added, taxes on
goods and services, gains taxes, license, registration and documentation fees, customs duties, tariffs, and similar charges. 
  

 14 

 “Temporary Regulation S Global Note” has the meaning given to such term in Section 2.01
hereof. 
  
 “Termination Date” means the date on
which the License Agreement is terminated for any reason or on which Amgen’s obligations with respect to the licenses created by the License Agreement are terminated for the U.S. 
  
 “Transaction Expenses” means the out-of-pocket expenses payable by the Issuer in connection with (i) the
issuance of the Class A Notes, including placement fees, any initial fees payable to Servicer Providers and the fees and expenses of counsel in connection with the offering and issuance of the Class A Notes, as set forth in the Note Purchase
Agreements and (ii) the offering and issuance of any Refinancing Notes or Class B Notes, to the extent specified in the Board Resolutions authorizing such offering and issuance. 
  
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended. 
  
 “Trustee” has the meaning given to such term in the preamble
hereof, and any successor Trustee appointed in accordance with the terms hereof. 
  
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York. 
  
 “U.S.” means the United States of America. 
  
 “US Bank” means U.S. Bank National Association, a national banking association. 
  
 “U.S. GAAP” means generally accepted accounting principles
in effect in the U.S. from time to time. 
  
 “U.S.
Government Obligations” means obligations of, and supported by the full faith and credit of, the U.S. government. 
  
 “U.S. Treasury” means the U.S. Department of the Treasury. 
  
 Section 1.02 Rules of Construction. Unless the context otherwise requires: 
  
 (a) A term has the meaning assigned to it and an accounting term not
otherwise defined has the meaning assigned to it in accordance with U.S. GAAP. 
  
 (b) The terms “herein”, “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 
  
 (c) Unless otherwise indicated in context, all references to Articles,
Sections, Appendices, Exhibits or Annexes refer to an Article or Section of, or an Appendix, Exhibit or Annex to, this Indenture. 
  
 (d) Words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders, and words in the singular shall
include the plural, and vice versa. 
  
 (e) The terms
“include”, “including” and similar terms shall be construed as if followed by the phrase “without limitation”. 
  
 (f) Unless otherwise indicated, references to a class of Notes shall be to the Class A Notes and Class B Notes or to a class of Refinancing Notes, as
applicable. 
  
 (g) References in this Indenture to an agreement
or other document (including this Indenture) include references to such agreement or document as amended, replaced or otherwise modified in accordance with the provisions of this Indenture, and the provisions of this Indenture apply to successive
events and transactions. 
  

 15 

 (h) References in this Indenture to any statute or other legislative provision shall include any
statutory or legislative modification or re-enactment thereof, or any substitution therefor. 
  
 (i) References in this Indenture to the Notes include the terms and conditions in this Indenture applicable to the Notes; and any reference to any amount of money due or payable by reference to the Notes shall include
any sum covenanted to be paid by the Issuer under this Indenture in respect of the Notes. 
  
 (j) References in this Indenture to any action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security shall be deemed to include, in respect of any jurisdiction other
than the State of New York, references to such action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security available or appropriate in such jurisdiction as shall most nearly approximate such action,
remedy or method of judicial proceeding described or referred to in this Indenture. 
  
 (k) Where any payment is to be made, funds applied or any calculation is to be made hereunder on a day which is not a Business Day, unless any Related Document otherwise provides, such payment shall be made, funds
applied and calculation made on the next succeeding Business Day, and payments shall be adjusted accordingly, including interest unless otherwise specified. 
  
 Section 1.03 Compliance Certificates and Opinions. Upon any application or request by the Issuer to the Trustee to take any action under any
provision of this Indenture, the Issuer shall furnish to the Trustee an Officer’s Certificate stating that, in the opinion of the signers thereof in their capacity as such, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application or
request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished. 
  
 Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided pursuant to Section 5.03 hereof) or any indenture supplemental hereto shall include: 
  

(1) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions in
this Indenture relating thereto; 
  
 (2) a brief
statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of each such individual in its capacity as such, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been
complied with. 
  
 Section 1.04 Acts of Noteholders. (a)
Any direction, consent, waiver or other action provided by this Indenture in respect of the Notes of any class to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by an agent or proxy duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee or to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose under this Indenture and conclusive in favor of the Trustee or the Issuer, if made in the manner provided in this Section. 
  
 (b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the certificate of any notary public or other officer of any jurisdiction authorized to take acknowledgments of deeds or administer oaths that the Person executing such instrument acknowledged to him the execution
thereof, or by an affidavit of a witness to such execution sworn to before any such notary or such other officer and where such execution is by an officer of a corporation or association, trustee of a trust or member of a 

  

 16 

 
partnership, on behalf of such corporation, association, trust or partnership, such certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other reasonable manner which the Trustee deems sufficient. 
  
 (c) In determining whether the Holders of Notes have given any direction,
consent, request, demand, authorization, notice, waiver or other Act (a “Direction”), under this Indenture, Notes owned by the Issuer, NPS or any Affiliate of any such Person shall be disregarded and deemed not to be Outstanding for
purposes of any such determination. In determining whether the Trustee shall be protected in relying upon any such Direction, only Notes which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Notwithstanding the foregoing, (i) if any such Person owns 100% of the Notes of any class Outstanding, such Notes shall not be so disregarded as aforesaid, and (ii) if any amount of Notes of such class so owned by any such Person have been pledged
in good faith, such Notes shall not be disregarded as aforesaid if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, NPS or any Affiliate
of any such Person. 
  
 (d) The Issuer may at its option, by
delivery of Officer’s Certificate(s) to the Trustee, set a record date other than the Record Date to determine the Noteholders in respect of the Notes of any class entitled to give any Direction in respect of such Notes. Notwithstanding Section
316(c) of the Trust Indenture Act, such record date shall be the record date specified in such Officer’s Certificate which shall be a date not more than 30 days prior to the first solicitation of Noteholders in connection therewith. If such a
record date is fixed, such Direction may be given before or after such record date, but only the Noteholders of record of the applicable class at the close of business on such record date shall be deemed to be Noteholders for the purposes of
determining whether Noteholders of the requisite proportion of Outstanding Notes of such class have authorized or agreed or consented to such Direction, and for that purpose the Outstanding Notes of such class shall be computed as of such record
date; provided that no such Direction by the Noteholders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than one year after the record date. 
  
 (e) Any Direction or other action by the Holder of any Note shall bind the
Holder of every Note issued upon the transfer thereof or in exchange therefor or in lieu thereof, whether or not notation of such action is made upon such Note. 
  

ARTICLE II 
  
 THE NOTES 
  
 Section 2.01 Amount Not to Exceed the Initial Outstanding Principal Balance; Terms; Form; Execution and Delivery. (a) The Outstanding Principal Balance of any class of Notes which may be authenticated and delivered from time to time
under this Indenture shall not exceed, with respect to the Class A Notes, the initial Outstanding Principal Balance for the Class A Notes set forth in the definition thereof or, with respect to any Class B Notes or any class of Refinancing Notes,
the initial Outstanding Principal Balance authorized in the Board Resolutions establishing such Class B Notes or Refinancing Notes; provided that the Outstanding Principal Balance of any such class of Refinancing Notes shall not be less than the
Redemption Price of the class of Notes being refinanced in whole thereby and any Redemption Premium, plus Transaction Expenses relating thereto and the amount of any Interest Reserve Account established in respect of such Refinancing Notes, and that
any Refinancing Notes shall be issued in accordance with Section 2.15 hereof. 
  
 (b) There shall be issued, authenticated and delivered on the Closing Date and on the date of issuance of any Refinancing Notes or Class B Notes to each of the Noteholders Notes in the principal amounts and maturities
and bearing the interest rates, in each case in registered form and, in the case of the Class A Notes, substantially in the form set forth in Exhibit A to this Indenture or, in the case of any Class B Notes or Refinancing Notes, substantially in the
form set forth in any indenture supplemental hereto with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements typewritten, printed, lithographed or engraved thereon, as may, consistently herewith, be prescribed by the Trustee. The Trustee shall authenticate and make Notes available for delivery only upon the written order of
the Issuer signed by an officer of the Issuer. Such order shall specify the aggregate principal amount of Notes to be authenticated, the date of issue, whether they are to be issued as Global Notes or Definitive Notes and delivery instructions.

  

 17 

 Definitive Notes of each class shall be typewritten, printed, lithographed or engraved or produced by any
combination of these methods, as determined by the Trustee. 
  
 The Class A Notes and any Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of one or more permanent global Notes in registered form, substantially in the form set forth in the applicable exhibit to this
Indenture or in any indenture supplemental hereto (each, a “Permanent Global Note”), registered in the name of the nominee of DTC, deposited with the Trustee, as custodian for DTC, duly executed by the Issuer and authenticated by
the Trustee as hereinafter provided. The aggregate principal amount of each Permanent Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for DTC or its nominee, in accordance
with the instructions given by the Holder thereof, as hereinafter provided. 
  
 Any Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued initially in the form of one or more temporary global Notes in registered form substantially in the form set forth in the
applicable exhibit to this Indenture or in any indenture supplemental hereto (each, a “Temporary Regulation S Global Note”), registered in the name of the nominee of DTC, deposited with the Trustee, as custodian for the DTC, duly
executed by the Issuer and authenticated by the Trustee as hereinafter provided. At any time following the applicable Regulation S Global Note Exchange Date, upon receipt by the Trustee and the Issuer of a certificate substantially in the form of
Exhibit I hereto, executed by Euroclear or Clearstream, as the case may be, together with copies of certificates from Euroclear and Clearstream certifying that they have received certification of non-U.S. beneficial ownership of a Temporary
Regulation S Global Note (or portion thereof) with respect to any Notes to be exchanged, one or more permanent Global Notes for such Notes in registered form substantially in the form set forth in the applicable exhibit to this Indenture or in any
indenture supplemental hereto (each, a “Permanent Regulation S Global Note”; and together with each Temporary Regulation S Global Note, the “Regulation S Global Notes”) duly executed by the Issuer and authenticated
by the Trustee as hereinafter provided shall be deposited with the Trustee, as custodian for the DTC, and the Registrar shall reflect on its books and records the date and a decrease in the principal amount of the Temporary Regulation S Global Note
of such class in an amount equal to the principal amount of the beneficial interest in such Temporary Regulation S Global Note exchanged. Until the Regulation S Global Note Exchange Date with respect to any Temporary Regulation S Global Note,
interests in such Temporary Regulation S Global Note may be held only through Agent Members acting for and on behalf of Euroclear and Clearstream. 
  
 Notes, if so provided herein or in any indenture supplemental hereto, shall be issued in the form of permanent certificated Notes in registered form in
substantially the form set forth in the applicable exhibit to this Indenture (collectively with the definitive, fully registered Notes issued pursuant to Section 2.10(b) hereof, the “Definitive Notes”). 
  
 Interest shall accrue on any class of Floating Rate Notes from the relevant
Closing Date and shall be computed for each Interest Accrual Period on the basis of a 360-day year and the actual number of days elapsed in such Interest Accrual Period on the Outstanding Principal Balance of such Notes. Interest shall accrue on the
Class A Notes and on any other class of Fixed Rate Notes from the relevant Closing Date and shall be computed for each Interest Accrual Period on the basis of a 360-day year consisting of twelve 30-day months. 
  
 If a B&W Payment is made by the Trustee pursuant to Section 3.08 hereof
or if an Amgen Payment is made, the Stated Interest Rate on the Class A Notes shall be increased by 0.75% per annum during the period beginning on the first day any such B&W Payment or Amgen Payment is outstanding and ending on the date on which
NPS has reimbursed the entire amount of such B&W Payment or Amgen Payment and any other B&W Payments made pursuant to Section 3.08 or Amgen Payments made together with the entire amount of the increase in the Stated Interest Rate on the
Class A Notes imposed by this sentence. An Amgen Payment shall be outstanding from the date on which the Servicer or the Issuer shall notify the Trustee in writing that such Amgen Payment is first outstanding and shall be in the amount specified by
the Servicer or the Issuer in such notification, and if both the Servicer and the Issuer notify the Trustee of different dates and/or different amounts, the date and amount specified by the Issuer shall be conclusively presumed to be correct in the
absence of willful misconduct or fraud. 
  
 (c) On the date of any
Refinancing, the Issuer shall issue and deliver as provided in Section 2.15 hereof an aggregate principal amount of Refinancing Notes having the maturities and bearing the interest rates and such other terms authorized by one or more Board
Resolutions or in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes, in each case in accordance with such Section 2.15. 
  

 18 

 (d) On the date of the issuance, if any, of any Class B Notes, the Issuer shall issue and deliver, as
provided in Section 2.16 hereof, an aggregate principal amount of Class B Notes having the maturities and bearing the interest rates and such other terms authorized by one or more Board Resolutions or in any indenture supplemental hereto providing
for the issuance of such Notes or specified in the form of such Notes, in each case in accordance with such Section 2.16. 
  
 (e) The Notes shall be executed on behalf of the Issuer by the manual or facsimile signature of a Manager of the Issuer other than the Independent
Manager. 
  
 (f) Each Note bearing the manual or facsimile
signatures of any individual who was at the time such Note was executed a Manager of the Issuer other than the Independent Manager shall bind the Issuer, notwithstanding that any such individual has ceased to hold such office prior to the
authentication and delivery of such Notes or any payment thereon. 
  
 (g) At any time and from time to time after the execution of any Notes, the Issuer may deliver such Notes to the Trustee for authentication and, subject to the provisions of clause (h) below, the Trustee shall authenticate such Notes by
manual or facsimile signature upon receipt by it of written orders of the Issuer. The Notes shall be authenticated on behalf of the Trustee by any Responsible Officer of the Trustee. 
  
 (h) No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless it shall
have been executed on behalf of the Issuer as provided in clause (e) above and authenticated by or on behalf of the Trustee as provided in clause (g) above. Such signatures shall be conclusive evidence that such Note has been duly executed and
authenticated under this Indenture. Each Note shall be dated the date of its authentication. 
  
 Section 2.02 Restrictive Legends. Each Permanent Global Note, each Regulation S Global Note and each Definitive Note issued in reliance on Section 4(2) of the Securities Act (and all Notes issued in exchange
therefor or upon registration of transfer or substitution thereof) shall bear the following legend on the face thereof: 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION, NOR IS SUCH REGISTRATION CONTEMPLATED. NEITHER THIS NOTE NOR ANY INTEREST HEREIN MAY BE ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, SOLD OR OFFERED FOR SALE OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION THEREUNDER AND ANY OTHER APPLICABLE SECURITIES LAW REGISTRATION REQUIREMENTS. EACH PERSON WHO ACQUIRES OR ACCEPTS THIS NOTE OR AN INTEREST HEREIN BY SUCH ACQUISITION OR
ACCEPTANCE (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS AN INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF
RULE 501 UNDER THE SECURITIES ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (2)
AGREES THAT IT WILL NOT PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR ANY
PREDECESSOR OF THIS NOTE) AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAWS (THE “RESALE RESTRICTION TERMINATION DATE”) OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE OR AN INTEREST HEREIN, EXCEPT (A) TO THE ISSUER OR A
SUBSIDIARY THEREOF, (B) FOR SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE SECURITIES ACT, (C) TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT IS PURCHASING THIS NOTE OR AN 
  

 19 

 INTEREST HEREIN, AS THE CASE MAY BE, FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT (IF AVAILABLE) OR (E) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; PROVIDED THAT THE ISSUER AND THE TRUSTEE SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (2)(C), (D) OR (E) OF THIS PARAGRAPH, TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. 
  
 BY ITS PURCHASE AND ACCEPTANCE OF A NOTE, EACH PURCHASER WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) NO PLAN ASSETS HAVE BEEN USED TO
PURCHASE SUCH NOTES, OR (II) (X) ONE OR MORE PROHIBITED TRANSACTION STATUTORY OR ADMINISTRATIVE EXEMPTIONS APPLIES SUCH THAT THE USE OF SUCH PLAN ASSETS TO PURCHASE AND HOLD SUCH NOTES WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION; (Y) THE
PLAN FIDUCIARY AUTHORIZING THE INVESTMENT IN THE NOTES HAS DETERMINED THAT SUCH INVESTMENT IS PRUDENT AND OTHERWISE CONSISTENT WITH THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR OTHER APPLICABLE LAW; AND (Z)
THE INDIVIDUAL EXECUTING THE NOTE PURCHASE AGREEMENT IS DULY AUTHORIZED UNDER THE APPLICABLE PLAN DOCUMENTS AND/OR APPLICABLE LAW TO SO BIND THE PLAN. “PLAN” IS DEFINED TO INCLUDE CERTAIN GOVERNMENTAL PLANS, CERTAIN CHURCH PLANS, EMPLOYEE
BENEFIT PLANS AND CERTAIN OTHER RETIREMENT PLANS AND ARRANGEMENTS, INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND ANNUITIES, THAT ARE SUBJECT TO ERISA AND/OR THE INTERNAL REVENUE CODE OF 1986, AS AMENDED AND ANY ENTITY THAT MAY BE DEEMED TO HOLD THE
ASSETS OF ANY SUCH PLANS. 
  
 THE NOTES MAY NOT BE RESOLD OR
TRANSFERRED EXCEPT AS DESCRIBED IN THE FOREGOING, AND ANY PROPOSED TRANSFEREE SHALL EXECUTE A CONFIDENTIALITY AGREEMENT IN THE FORM ATTACHED AS EXHIBIT N TO THE INDENTURE. 
  
 THE NOTES MAY NOT BE SOLD OR TRANSFERRED TO ANY PERSON THAT IS ENGAGED IN THE BUSINESS OF DEVELOPING, MANUFACTURING OR
MARKETING PHARMACEUTICAL OR DIAGNOSTIC PRODUCTS OR TO AN AFFILIATE (AS DEFINED IN THE INDENTURE REFERRED TO HEREINAFTER) OF ANY SUCH PERSON ENGAGED IN ANY SUCH BUSINESS. 
  
 Each Global Note shall also bear the following legend on the face thereof: 
  
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

 20 

 TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.11 OF THE INDENTURE. 
  
 Each Global Note for the Class A Notes shall also bear the following legend
on the face thereof: 
  
 THIS NOTE IS ISSUED WITH ORIGINAL ISSUE
DISCOUNT UNDER SECTIONS 1272, 1273, AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND IS SUBJECT TO THE RULES FOR DEBT INSTRUMENTS WITH CONTINGENT PAYMENTS UNDER TREASURY REGULATION § 1.1275-4(b). FOR INFORMATION REGARDING THE
ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE YIELD TO MATURITY, THE COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THIS NOTE, YOU SHOULD SUBMIT A WRITTEN REQUEST TO THE ISSUER AT THE FOLLOWING ADDRESS: CINACALCET
ROYALTY SUB LLC, 420 CHIPETA WAY, SALT LAKE CITY, UTAH 84108-1256, ATTENTION: ASSISTANT TREASURER 
  
 Each Temporary Regulation S Global Note shall bear the following legend on the face thereof: 
  
 THIS NOTE IS A TEMPORARY REGULATION S GLOBAL NOTE WITHIN THE MEANING OF THE
INDENTURE REFERRED TO HEREINAFTER AND IS SUBJECT TO RESTRICTIONS ON THE TRANSFER AND EXCHANGE THEREOF AND ON THE PAYMENT OF INTEREST THEREON AS SPECIFIED IN THE INDENTURE. 
  
 Section 2.03 Registrar and Paying Agent. (a) With respect to each class of Notes, there shall at all times be
maintained an office or agency in the location set forth in Section 12.05 hereof where the Notes of such class may be presented or surrendered for registration of transfer or for exchange (each, a “Registrar”), and for payment
thereof (each, a “Paying Agent”) and where notices and demands to or upon the Issuer in respect of such Notes may be served. The Trustee shall be the initial Paying Agent, and the Issuer shall not be permitted to act as a Paying
Agent. The Issuer shall cause each Registrar to keep a register of such class of Notes for which it is acting as Registrar and of their transfer and exchange (the “Register”). Written notice of the location of each such other office
or agency and of any change of location thereof shall be given by the Trustee to the Issuer and the Holders of such class of Notes. In the event that no such office or agency shall be maintained or no such notice of location or of change of location
shall be given, presentations and demands may be made and notices may be served at the Corporate Trust Office of the Trustee. 
  
 (b) Each Authorized Agent in the location set forth in Section 12.05 shall be a bank or trust company, shall be a corporation organized and doing business
under the laws of the U.S. or any state or territory thereof or of the District of Columbia, with a combined capital and surplus of at least $75,000,000 (or having a combined capital and surplus in excess of $5,000,000 and the obligations of which,
whether now in existence or hereafter incurred, are fully and unconditionally guaranteed by a corporation organized and doing business under the laws of the U.S., any state or territory thereof or of the District of Columbia and having a combined
capital and surplus of at least $75,000,000) and shall be authorized under the laws of the U.S. or any state or territory thereof to exercise corporate trust powers, subject to supervision by Federal or state authorities (such requirements, the
“Eligibility Requirements”). The Trustee shall initially be a Paying Agent and Registrar hereunder with respect to the Notes. Each Registrar other than the Trustee shall furnish to the Trustee, at least five (5) Business Days prior
to each Payment Date, and at such other times as the Trustee may request in writing, a copy of the Register maintained by such Registrar. 
  
 (c) Any corporation into which any Authorized Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, consolidation or conversion to which any Authorized Agent shall be a party, or any corporation succeeding to the corporate trust business of any Authorized Agent, shall be the successor of such Authorized Agent hereunder, if such successor
corporation is otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the parties hereto or such Authorized Agent or such successor corporation. 
  

 21 

 (d) Any Authorized Agent may at any time resign by giving written notice of resignation to the Trustee
and the Issuer. The Issuer may, and at the request of the Trustee shall, at any time terminate the agency of any Authorized Agent by giving written notice of termination to such Authorized Agent and to the Trustee. Upon the resignation or
termination of an Authorized Agent or if at any time any such Authorized Agent shall cease to be eligible under this Section (when, in either case, no other Authorized Agent performing the functions of such Authorized Agent shall have been appointed
by the Trustee), the Issuer shall promptly appoint one or more qualified successor Authorized Agents, reasonably satisfactory to the Trustee, to perform the functions of the Authorized Agent which has resigned or whose agency has been terminated or
who shall have ceased to be eligible under this Section. The Issuer shall give written notice of any such appointment made by it to the Trustee; and in each case the Trustee shall mail notice of such appointment to all Holders of the related class
of Notes as their names and addresses appear on the Register for such class of Notes. 
  
 (e) The Issuer agrees to pay, or cause to be paid, from time to time to each Authorized Agent reasonable compensation for its services and to reimburse it for its reasonable expenses to be agreed to pursuant to
separate agreements with each such Authorized Agent. 
  
 Section
2.04 Paying Agent to Hold Money in Trust. The Trustee shall require each Paying Agent other than the Trustee to agree in writing that all moneys deposited with any Paying Agent for the purpose of any payment on the Notes shall be deposited
and held in trust for the benefit of the Holders entitled to such payment, subject to the provisions of this Section. Moneys so deposited and held in trust shall constitute a separate trust fund for the benefit of the Holders with respect to which
such money was deposited. 
  
 The Trustee may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, direct any Paying Agent to pay to the Trustee all sums held in trust by such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to such money. 
  
 Section 2.05 Method of Payment. (a) On each Payment Date, the Trustee shall, or shall instruct a Paying Agent to, pay, to the extent of the Available Collections Amount for such Payment Date, to the Noteholders
all interest, principal and Premium, if any, on each class of Notes in the amounts determined by the Trustee pursuant to Section 3.05; provided, that payment on a Temporary Regulation S Global Note shall be made to the Holder thereof only in
conformity with Section 2.05(c) hereof and payment on any Note may be deferred as provided in Section 2.05(d) hereof. Each payment on any Payment Date other than the Final Payment Date with respect to any class of Notes shall be made by the Trustee
or Paying Agent to the Noteholders as of the Record Date for such Payment Date. The final payment with respect to any Note, however, shall be made only upon presentation and surrender of such Note by the Noteholder or its agent at the Corporate
Trust Office or agency of the Trustee or Paying Agent specified in the notice given by the Trustee or Paying Agent with respect to such final payment. 
  
 (b) At such time, if any, as the Notes of any class are issued in the form of Definitive Notes, payments on a Payment Date shall be made by check mailed
to each Noteholder of a Definitive Note on the applicable Record Date at its address appearing on the Register maintained with respect to such class of Notes. Alternatively, upon application in writing to the Trustee, not later than the applicable
Record Date, by a Noteholder, any such payments shall be made by wire transfer to an account designated by such Noteholder at a financial institution in New York, New York; provided that the final payment for each class of Notes shall be made only
upon presentation and surrender of the Definitive Notes of such class by the Noteholder or its agent at the Corporate Trust Office or agency of the Trustee or Paying Agent specified in the notice of such final payment given by the Trustee or Paying
Agent. The Trustee or Paying Agent shall mail such notice of the final payment of such class of Notes to each Noteholder of such class, specifying the date and amount of such final payment. 
  
 (c) The beneficial owner of a Temporary Regulation S Global Note may arrange
to receive interest installments through Euroclear or Clearstream on such Temporary Regulation S Global Note only after delivery by such beneficial owner to Euroclear or Clearstream, as the case may be, of a written certification substantially in
the form of Exhibit M-1 hereto, and upon delivery of Euroclear or Clearstream, as the case may be, to the Paying Agent of a certification or certifications substantially in the form of Exhibit M-2 hereto. No interest shall be paid to any beneficial
owner and no interest shall be paid to Euroclear or Clearstream on such beneficial owner’s interest in a Temporary Regulation S Global Note unless Euroclear or Clearstream, as the case may be, has provided such a certification to the Paying
Agent with respect to such interest. 
  

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 (d) If the Issuer informs the Trustee that any Holder or any beneficial owner of an interest in any
Global Note has not executed and delivered to the Issuer a Confidentiality Agreement, the Trustee shall withhold and deposit in the Escrow Account the portion of any payment of principal, Premium or interest on the Notes allocable to the Notes held
by such Holder or the undivided interest in such Global Note allocable to such beneficial owner. The Trustee shall distribute the amounts so withheld, without interest, to such Holder or beneficial owner upon receipt by the Trustee of written notice
from the Issuer that such Holder or beneficial owner has executed and delivered a Confidentiality Agreement. 
  
 Section 2.06 Minimum Denomination. Each class of Notes shall be issued in minimum denominations of $250,000 and integral multiples of $1,000 in
excess thereof. 
  
 Section 2.07 Transfer and Exchange;
Cancellation. The Notes are issuable only in registered form. A Holder may transfer a Note only by written application to the Registrar stating the name of the proposed transferee and otherwise complying with the terms of this Indenture,
including the requirement for delivery of a Confidentiality Agreement as set forth in Section 2.11. No such transfer shall be effected until, and such transferee shall succeed to the rights of a Holder only upon, final acceptance and registration of
the transfer by the Registrar in the Register and confirmation by the Issuer that such Holder has delivered a Confidentiality Agreement to the Issuer and that such Holder is a Permitted Holder. 
  
 Prior to the due presentment for registration of transfer of a Note and
satisfaction of the requirements specified in the last sentence of the preceding paragraph, the Issuer and the Trustee may deem and treat the applicable registered Noteholder as the absolute owner and Holder of such Note for the purpose of receiving
payment of all amounts payable with respect to such Note and for all other purposes and shall not be affected by any notice to the contrary. The Registrar (if different from the Trustee) shall promptly notify the Trustee and the Trustee shall
promptly notify the Issuer of each request for a registration of transfer of a Note by furnishing the Issuer a copy of such request. 
  
 Furthermore, any Holder of a Global Note shall, by acceptance of such Global Note, agree that, subject to Section 2.10(b) hereof, transfers of beneficial
interests in such Global Note may be effected only through a book-entry system maintained by the Holder of such Global Note (or its agent) and that ownership of a beneficial interest in such Note shall be required to be reflected in a book-entry.
When Notes are presented to the Registrar with a request to register the transfer or to exchange them for an equal principal amount of Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met (including, in the case of a transfer, that such Notes are duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Trustee and Registrar duly executed
by the Holder thereof or by an attorney who is authorized in writing to act on behalf of the Holder). To permit registrations of transfers and exchanges, the Issuer shall execute and the Trustee shall authenticate Notes at the Registrar’s
request. Except as set forth in Sections 2.08 and 2.09 hereof, no service charge shall be made for any registration of transfer or exchange or redemption of the Notes. 
  
 The Issuer shall not be required to exchange or register the transfer of any Notes as above provided during the 15-day
period preceding the Final Maturity Date of any such Notes or during a 15-day period preceding the first mailing of any notice of Redemption or Refinancing of Notes to be redeemed or refinanced. The Issuer shall not be required to exchange or
register the transfer of any Notes that have been selected, called or are being called for Redemption or Refinancing except, in the case of any Notes where notice has been given that such Notes are to be redeemed in part, the portion thereof not so
to be redeemed. 
  
 The Issuer at any time may deliver Notes to
the Trustee for cancellation. The Trustee and no one else shall cancel and destroy in accordance with its customary practices in effect from time to time (subject to the record retention requirements of the Exchange Act) any such Notes, together
with any other Notes surrendered to it for registration of transfer, exchange or payment. The Issuer may not issue new Notes (other than Refinancing Notes issued in connection with any Refinancing) to replace Notes it has redeemed, paid or delivered
to the Trustee for cancellation. 
  
 Section 2.08 Mutilated,
Destroyed, Lost or Stolen Notes. If any Note shall become mutilated, destroyed, lost or stolen, the Issuer shall, upon the written request of the Holder thereof and presentation of the Note 
  

 23 

 or satisfactory evidence of destruction, loss or theft thereof to the Trustee or Registrar and a confirmation by the
Issuer to the Trustee that such Holder has delivered a Confidentiality Agreement to the Issuer, issue, and the Trustee shall authenticate and the Trustee or Registrar shall deliver in exchange therefor or in replacement thereof, a new Note, payable
to such Holder in the same principal amount, of the same maturity, with the same payment schedule, bearing the same interest rate and dated the date of its authentication. If the Note being replaced has become mutilated, such Note shall be
surrendered to the Trustee or a Registrar and forwarded to the Issuer by the Trustee or such Registrar. If the Note being replaced has been destroyed, lost or stolen, the Holder thereof shall furnish to the Issuer, the Trustee or a Registrar (i)
such security or indemnity as may be required by them to save the Issuer, the Trustee and such Registrar harmless (an unsecured indemnity from any QIB being acceptable security) and (ii) evidence satisfactory to the Issuer, the Trustee and such
Registrar of the destruction, loss or theft of such Note and of the ownership thereof (an affidavit from any QIB being satisfactory evidence). The Noteholders will be required to pay any tax or other governmental charge imposed in connection with
such exchange or replacement and any other expenses (including the fees and expenses of the Trustee and any Registrar) connected therewith. 
  
 Section 2.09 Payments of Transfer Taxes. Upon the transfer of any Note or Notes pursuant to Section 2.07 hereof, the Issuer or the Trustee may
require from the party requesting such new Note or Notes payment of a sum to reimburse the Issuer or the Trustee for, or to provide funds for the payment of, any transfer tax or similar governmental charge payable in connection therewith.

  
 Section 2.10 Book-Entry Provisions. (a) Global Notes
shall (i) be registered in the name of DTC for such Notes or in the name of the nominee of DTC, (ii) be delivered to the Trustee as custodian for DTC and (iii) bear the Private Placement Legend as set forth in Section 2.02 hereof. 
  
 Members of, or participants in, DTC (“Agent Members”) shall
have no rights under this Indenture with respect to any Global Note held on their behalf by DTC, or the Trustee as its custodian, or under such Global Note, and DTC may be treated by the Issuer, the Trustee and any agent of the Issuer or the Trustee
as the absolute owner of such Global Note for all purposes whatsoever. 
  
 Whenever notice or other communication to the Noteholders of any class of Global Notes is required under this Indenture, unless and until Definitive Notes shall have been issued pursuant to Section 2.10(b) below, the Trustee shall give all
such notices and communications specified herein to be given to Noteholders of such class of Global Notes to DTC and/or the Agent Members, and shall make available additional copies as requested by such Agent Members, subject to the limitations on
distribution contained in Section 2.11. 
  
 Notwithstanding the
foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and its Agent Members,
the operation of customary practices governing the exercise of the rights of a Holder of any Global Note. Neither the Issuer nor the Trustee shall be liable for any delay by DTC in identifying the Agent Members in respect of the Global Notes, and
the Issuer and the Trustee may conclusively rely on, and shall be fully protected in relying on, instructions from DTC for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of any Global
Notes to be issued). 
  
 (b) Transfers of a Global Note shall be
limited to transfers of such Global Note in whole, but not in part, to DTC, its successors or their respective nominees. Interests of Agent Members in a Global Note may be transferred in accordance with the rules and procedures of DTC and the
provisions of Section 2.11 hereof. Definitive Notes shall be issued to the individual Agent Members or Beneficial Holders or their nominees in exchange for their Beneficial Interests in the Permanent Global Note or the Regulation S Global Note,
respectively, with respect to any class of Notes only if (i) the Issuer advises the Trustee in writing that DTC is no longer willing or able to properly discharge its responsibilities as depositary with respect to the Notes and the Trustee or the
Issuer is unable to appoint a qualified successor within 90 days of such notice, (ii) the Issuer, at its option, elects to terminate the book-entry system through DTC or (iii) during the occurrence of an Event of Default with respect to any class of
Notes, Noteholders of such class representing an aggregate of not less than 51% of the aggregate Outstanding Principal Balance of such class of Notes advise the Issuer, the Trustee and DTC through the Agent Members in writing that the continuation
of a book-entry system through DTC (or a successor thereto) is no longer in the best interests of the Noteholders of such class. Upon the occurrence of any event described in the immediately preceding sentence, the Trustee shall notify all affected
Noteholders of such class, through DTC, of the occurrence of such event and of the availability of Definitive Notes of such class; provided, however, that in no event shall the Temporary Regulation S Global Note be exchanged for Definitive
Notes prior to the later of (x) the Regulation S Global Note Exchange Date and (y) the date of receipt by the Issuer of any certificates determined by 
  

 24 

 it to be required pursuant to Rule 903 under the Securities Act. Upon surrender to the Trustee of the Global Notes of
such class held by DTC, accompanied by registration instructions from DTC for registration of Definitive Notes in the names of the Noteholders of such class, the Issuer shall issue and the Trustee shall authenticate and deliver the Definitive Notes
of such class to the Agent Members and Beneficial Holders of such class or their nominees in accordance with the instructions of DTC. 
  
 None of the Issuer, the Registrar, the Paying Agent or the Trustee shall be liable for any delay in delivery of such instructions and may conclusively
rely on, and shall be fully protected in relying on, such registration instructions. Upon the issuance of Definitive Notes of such class, the Trustee shall recognize the Persons in whose name the Definitive Notes are registered in the Register as
Noteholders hereunder. Neither the Issuer nor the Trustee shall be liable if the Trustee or the Issuer is unable to locate a qualified successor to DTC. 
  
 Definitive Notes of any class will be freely transferable and exchangeable for Definitive Notes of the same class at the office of the Trustee or the
office of a Registrar upon compliance with the requirements set forth herein. In the case of a transfer of only part of a holding of Definitive Notes, a new Definitive Note shall be issued to the transferee in respect of the part transferred and a
new Definitive Note in respect of the balance of the holding not transferred shall be issued to the transferor and may be obtained at the office of the applicable Registrar. 
  
 (c) Any Beneficial Interest in one of the Global Notes as to any class that is transferred to a Person who takes delivery in
the form of an interest in another Global Note will, upon transfer, cease to be an interest in such Global Note and become an interest in such other Global Note and, accordingly, will thereafter be subject to all transfer restrictions, if any, and
other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest. 
  
 (d) Any Definitive Note delivered in exchange for an interest in a Permanent Global Note pursuant to paragraph (b) of this Section shall, except as
otherwise provided by paragraph (f) of Section 2.11, bear the Private Placement Legend applicable to a Permanent Global Note set forth in Section 2.02 hereof. 
  

(e) Any Definitive Note delivered in exchange for an interest in a Regulation S Global Note pursuant to paragraph (b) of this Section shall, except as
otherwise provided by paragraph (f) of Section 2.11, bear the Private Placement Legend applicable to a Regulation S Global Note set forth in Section 2.02 hereof. 
  
 (f) Upon the request of the Servicer from time to time, the Trustee shall request DTC to provide a list of the Agent Members
holding Beneficial Interests in the Notes on such Record Date and shall provide such list to the Servicer. Any cost involved in obtaining such list shall be included in the Expenses to be reimbursed on the next succeeding Payment Date. Not later
than five Business Days prior to each Payment Date or any other date on which a Distribution Report is to be distributed pursuant to Section 2.13(a) to Agent Members and Beneficial Holders, the Servicer shall provide a list to the Trustee of the
Agent Members, Beneficial Holders and Noteholders (other than DTC or its nominee or any other depositary) that have provided Confidentiality Agreements to the Issuer, and the Trustee shall distribute such reports only to the Agent Members,
Beneficial Holders and Noteholders named on such list. 
  
 Section
2.11 Special Transfer Provisions. (a) Transfers to Non-QIB Institutional Accredited Investors. The following provisions shall apply with respect to the registration of any proposed transfer of a Note (other than a Temporary Regulation
S Global Note) to any Institutional Accredited Investor which is not a QIB (excluding Non-U.S. Persons): 
  
 (i) The Registrar shall register the transfer of any Note, whether or not such Note bears the Private Placement Legend, if the proposed
transferee has delivered to the Registrar (A) a certificate substantially in the form of Exhibit K hereto, (B) an Opinion of Counsel acceptable to the Issuer that such transfer is in compliance with the Securities Act, (C) a Confidentiality
Agreement duly executed by such transferee, and (D) so long as the License Agreement has not been terminated, appropriate certification that such transferee is not engaged in, and is not an Affiliate of a Person engaged in, the business of
developing, manufacturing or marketing pharmaceutical or diagnostic products. 
  
 (ii) If the proposed transferor is an Agent Member holding a beneficial interest in the Permanent Global Note, upon receipt by the Registrar of (x) the documents, if any, required by paragraph (i), including the
Confidentiality Agreement, and (y) instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and a decrease in the 
  

 25 

 principal amount of the Permanent Global Note in an amount equal to the principal amount of the
beneficial interest in the Permanent Global Note to be transferred, and the Issuer shall execute, and the Trustee shall authenticate and deliver, one or more Definitive Notes of like tenor and amount. 
  
 (b) Transfers to QIBs. The following provisions shall apply with
respect to the registration of any proposed transfer of an interest in a Permanent Global Note or a Definitive Note issued in exchange for an interest in such Permanent Global Note in accordance with Section 2.10(b) hereof to a QIB (excluding
Non-U.S. Persons): 
  
 (i) If the Note to be
transferred consists of (x) Definitive Notes, the Registrar shall register the transfer if such transfer is being made by a proposed transferor who has checked the box provided for on the form of Note stating, or has otherwise advised the Issuer and
the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of Note stating, or has otherwise advised the Issuer and the Registrar in
writing, that (A) it is purchasing the Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account are QIBs within the meaning of Rule 144A, (B) it is or such QIBs are aware
that the sale to it is being made in reliance on Rule 144A and acknowledge that it has received such information regarding the Issuer as it has requested pursuant to Rule 144A or has determined not to request such information and (C) it is or such
QIBs are aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A, (D) it and all such QIBs have duly executed and delivered to the Issuer a Confidentiality
Agreement, and (E), so long as the License Agreement has not been terminated, neither it nor any such QIBs is engaged in, or is an Affiliate of a Person engaged in, the business of developing, manufacturing or marketing pharmaceutical or diagnostic
products or (y) an interest in a Permanent Global Note, the transfer of such Beneficial Interest may be effected only through the book-entry system maintained by DTC and to the extent provided in the agreement with DTC, and in each case, each
transferee and QIB has delivered to the Registrar a Confidentiality Agreement duly executed by such transferee and QIB, respectively. 
  
 (ii) If the proposed transferee is an Agent Member, and the Note to be transferred is a Definitive Note, upon receipt by the Registrar of
the documents referred to in clause (i), including the Confidentiality Agreement, and instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase
in the principal amount at maturity of the Permanent Global Note in an amount equal to the principal amount at maturity of the Definitive Note to be transferred, and the Trustee shall cancel the Definitive Note so transferred (upon written direction
from the Registrar if different from the Trustee). 
  
 (c)
Transfers of Interests in a Temporary Regulation S Global Note. The following provisions shall apply with respect to registration of any proposed transfer of interests in a Temporary Regulation S Global Note: 
  
 (i) The Registrar shall register the transfer of any
Beneficial Interest in a Temporary Regulation S Global Note (x) if the proposed transferee is a Non-U.S. Person and the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit J hereto and has delivered
to the Issuer a duly executed Confidentiality Agreement or (y) if the proposed transferee is a QIB and the proposed transferor has checked the box provided for on the form of Note stating, or has otherwise advised the Issuer and the Registrar in
writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of Note stating, or has otherwise advised the Issuer and the Registrar in writing, that (A)
it is purchasing the Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account are QIBs within the meaning of Rule 144A, (B) it is or such QIBs are aware that the sale to
them is being made in reliance on Rule 144A and acknowledge that they have received such information regarding the Issuer as they have requested pursuant to Rule 144A or have determined not to request such information, (C) it is or such QIBs are
aware that the transferor is relying upon their foregoing representations in order to claim the exemption from registration provided by Rule 144A, (D) it and all such QIBs have duly executed and delivered to the Issuer a Confidentiality Agreement
and (E), so long as the License Agreement has not been terminated, neither it nor any such QIBs is engaged in, or is an Affiliate of a Person engaged in, the business of developing, manufacturing or marketing pharmaceutical or diagnostic products.

  

 26 

 (ii) If the proposed transferee is an Agent Member that provides the documents referred
to in clause (i)(y) above, including the Confidentiality Agreement, upon receipt by the Registrar of such documents and instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its books
and records the date and an increase in the principal amount of the Permanent Global Note of the relevant class, in an amount equal to the principal amount of the Temporary Regulation S Global Note of such class to be transferred, and the Trustee
shall decrease the amount of the Temporary or Permanent Regulation S Global Note of such class (upon written direction from the Registrar if different from the Trustee). 
  
 (d) Reserved. 
  
 (e) Transfers to Non-U.S. Persons at any Time. The following provisions shall apply with respect to any transfer of a Note to a Non-U.S. Person:

  
 (i) Prior to the applicable Regulation S
Global Notes Exchange Date, the Registrar shall not register any proposed transfer of a Note to a Non-U.S. Person pursuant to Rule 904 of Regulation S. 
  
 (ii) The Registrar shall register any proposed transfer of a Note to any Non-U.S. Person if the Note to be transferred is a Definitive
Note or an interest in a Permanent Global Note, upon receipt of a certificate substantially in the form of Exhibit J from the proposed transferor and a Confidentiality Agreement duly executed by such Non-U.S. Person. 
  
 (iii) (a) If the proposed transferor is an Agent Member
holding a Beneficial Interest in a Permanent Global Note, upon receipt by the Registrar of (x) the documents, if any, required by paragraph (ii) and (y) instructions in accordance with DTC’s and the Registrar’s procedures, the Registrar
shall reflect on its books and records the date and a decrease in the principal amount of a Permanent Global Note in an amount equal to the principal amount of the beneficial interest in such Permanent Global Note to be transferred, and (b) if the
proposed transferee is an Agent Member, upon receipt by the Registrar of instructions given in accordance with DTC’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase in the
principal amount of the Regulation S Global Note of the relevant class in an amount equal to the principal amount of the beneficial interest in such Permanent Global Note or any Definitive Notes issued in exchange for such interest in such Permanent
Global Note to be transferred, and the Trustee shall cancel the Definitive Note, if any, so transferred or decrease the amount of the Permanent Global Note (upon written direction from the Registrar if different from the Trustee). 
  
 (f) Private Placement Legend. Upon the transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Registrar shall deliver only Notes that bear the Private Placement Legend unless there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Issuer and the
Trustee to the effect that neither such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act or any other obligations of the Issuer, including the obligation in
respect of the Royalty Rights to have any Noteholder execute a Confidentiality Agreement. 
  
 (g) General. By its acceptance of any Note bearing the Private Placement Legend, each Holder of such Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private
Placement Legend and agrees that it will transfer such Note only as provided in this Indenture. The Registrar shall not register a transfer of any Note unless such transfer complies with the restrictions on transfer of such Note set forth in this
Indenture. In connection with any transfer of Notes, each Holder agrees by its acceptance of the Notes to furnish the Trustee the certifications and legal opinions described herein to confirm that such transfer is being made pursuant to an exemption
from, or a transaction not subject to, the registration requirements of the Securities Act; provided that the Trustee shall not be required to determine (but may rely on a determination made by the Issuer with respect to) the sufficiency of any such
legal opinions. Each Holder also agrees that it will not take any action to transfer any Note to a transferee without causing such transferee to execute and deliver a Confidentiality Agreement. The Trustee shall promptly deliver to the Issuer the
executed version of each executed Confidentiality Agreement that it receives, provided that the Trustee shall retain a copy of each such Confidentiality Agreement in its records relating to the Notes. 
  

 27 

 (h) No Listing. The Notes shall be issued pursuant to an exemption from registration under the
Securities Act. The Issuer agrees that it will not at any time (i) apply to list, list or list upon notice of issuance, (ii) consent to or authorize an application for the listing or the listing of, or (iii) enable or authorize the trading of the
Notes on an established securities market, including (w) a national securities exchange registered under the Exchange Act or exempted from registration because of the limited volume of transactions; (x) a foreign securities exchange that, under the
law of the jurisdiction where it is organized, satisfies regulatory requirements that are analogous to the regulatory requirements under the Exchange Act applicable to exchanges described in subclause (w); (y) a regional or local exchange; or (z) an
over-the-counter market, as the term “established securities market” and the terms in subclauses (w), (x), (y) and (z) are defined for purposes of Section 7704 of the Code. 
  
 The Trustee shall retain copies of all letters, notices and other written communications received pursuant to Section 2.10
hereof or this Section 2.11. The Issuer shall have the right to inspect and make copies of all such letters, notices, Confidentiality Agreements or other written communications at any reasonable time upon the giving of reasonable written notice to
the Trustee. 
  
 Section 2.12 Temporary Definitive Notes.
Pending the preparation of Definitive Notes of any class, the Issuer may execute and the Trustee may authenticate and deliver temporary Definitive Notes of such class which are printed, lithographed, typewritten or otherwise produced, in any
denomination, containing substantially the same terms and provisions as are set forth in the applicable exhibit hereto or in any indenture supplemental hereto, except for such appropriate insertions, omissions, substitutions and other variations
relating to their temporary nature as the Manager of the Issuer executing such temporary Definitive Notes may determine, as evidenced by his execution of such temporary Definitive Notes. 
  
 If temporary Definitive Notes of any class are issued, the Issuer will cause such Definitive Notes of such class to be
prepared without unreasonable delay. After the preparation of Definitive Notes of such class, the temporary Definitive Notes shall be exchangeable for Definitive Notes upon surrender of such temporary Definitive Notes at the Corporate Trust Office
of the Trustee, without charge to the Holder thereof. Upon surrender for cancellation of any one or more temporary Definitive Notes of any class, the Issuer shall execute and the Trustee shall authenticate and deliver in exchange therefor Definitive
Notes of like class, in authorized denominations and in the same aggregate principal amounts. Until so exchanged, such temporary Definitive Notes shall in all respects be entitled to the same benefits under this Indenture as Definitive Notes.

  
 Section 2.13 Statements to Noteholders. (a) (i) On each
Payment Date and any other date for distribution of any payments with respect to any class of Notes then Outstanding, the Trustee shall deliver a report, substantially in the form attached as Exhibit H hereto and prepared by the Servicer, giving
effect to such payments (each, a “Distribution Report”), to each Agent Member, Beneficial Holder and Noteholder included on the list provided by the Servicer pursuant to Section 2.10(f), provided that the Servicer shall have
advised the Trustee in writing not later than the last Business Day preceding such Payment Date that Amgen has filed its applicable periodic report with the SEC relating to the calendar quarter immediately preceding such Payment Date. If the Trustee
does not receive the written notice referred to in the proviso in the preceding sentence by the close of business on such last Business Day preceding a Payment Date, the Trustee shall not distribute the Distribution Report to the Agent Members,
Beneficial Holders and the Noteholders included on the list provided by the Servicer pursuant to Section 2.10(f) on such Payment Date, and the Trustee shall not distribute such Distribution Report until promptly after the Servicer advises the
Trustee in writing that Amgen has filed such report. The Trustee shall deliver a copy of each Distribution Report to each Agent Member, Beneficial Holder and Noteholder included on the list provided by the Servicer pursuant to Section 2.10(f) and to
the Issuer and NPS and to no other Person. The Trustee shall not distribute the Distribution Report to DTC, and each other Noteholder, Agent Member and Beneficial Holder shall be entitled to receive the Distribution Report only if such Noteholder,
Agent Member or Beneficial Holder has executed and delivered a Confidentiality Agreement to the Issuer. 
  
 (ii) Each Distribution Report provided to each Agent Member and Beneficial Holder for each Payment Date, commencing March 30, 2005, shall be accompanied
by (i) a statement prepared by the Servicer setting forth an analysis of the Collection Account activity for the Interest Accrual Period ending on the related Reference Date, (ii) such information, if any, regarding the License Agreement and the
Licensed Technology as NPS shall have provided to the Servicer on behalf of the Trustee pursuant to Section 6.4 of the Purchase and Sale Agreement during the Interest Accrual Period then ended and (iii) the information included in all reports that
the Issuer shall have provided to the Servicer on behalf of the Trustee pursuant to Section 5.03 hereof during the Interest Accrual Period then ended. Each annual Distribution Report provided to each Noteholder for each March 30, commencing March
30, 2006, shall include the information described in the preceding sentence and also be accompanied by (x) a 
  

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 statement, prepared by the Servicer, setting forth an analysis of the Collection Account activity for the calendar year
ended the preceding December 31 and (y) a comparison, prepared by the Servicer, of the actual cumulative amortization of the Class A Notes through such December 31 against the Base Case Amortization Schedule on the Class A Notes through such
December 31. 
  
 (b) After the end of each calendar year but not
later than the latest date permitted by law, the Trustee shall (or shall instruct any Paying Agent to) furnish to each Person who at any time during such calendar year was a Noteholder of record of any class of Notes, a statement (for example, a
Form 1099 or any other means required by law) prepared by the Trustee containing the sum of the amounts determined pursuant to Exhibit H hereto with respect to the class of Notes for such calendar year or, in the event such Person was a Noteholder
of record of any class of Notes during only a portion of such calendar year, for the applicable portion of such calendar year, and such other items as are readily available to the Trustee and which a Noteholder shall reasonably request as necessary
for the purpose of such Noteholder’s or holder’s, as applicable, preparation of its U.S. federal income or other tax returns. So long as any of the Notes are registered in the name of DTC or its nominee, such report and such other items
will be prepared on the basis of such information supplied to the Trustee by DTC and the Agent Members, and will be delivered by the Trustee to DTC and by DTC to the applicable beneficial owners in the manner described above. In the event that any
such information has been provided by any Paying Agent directly to such Person through other tax-related reports or otherwise, the Trustee in its capacity as Paying Agent shall not be obligated to comply with such request for information. For the
avoidance of doubt, the Trustee shall not be obligated to provide any statements, reports or other items under this Section 2.13(b) to any Agent Member or Beneficial Holders on the list of Agent Members, Beneficial Holders and Noteholders included
on the list provided by the Servicer pursuant to Section 2.10(f) that is not a Noteholder. 
  
 (c) At such time, if any, as the Notes of any class are issued in the form of Definitive Notes, the Trustee shall prepare and deliver the information described in Section 2.13(b) to each Holder of record of a
Definitive Note of such class for the relevant period of beneficial ownership of such Definitive Note as appears on the records of the Trustee, subject to the Issuer having confirmed in writing that each such Holder has executed and delivered to the
Issuer a Confidentiality Agreement. 
  
 (d) The Trustee shall be
at liberty to sanction any method of giving notice to the Noteholders of any class if, in its opinion, such method is reasonable, having regard to the number and identity of the Noteholders of such class and/or to market practice then prevailing, is
in the best interests of the Noteholders of such class, and any such notice shall be deemed to have been given on such date as the Trustee may approve; provided that notice of such method is given to the Noteholders of such class in such manner as
the Trustee shall require. 
  
 (e) Not later than 1:00 p.m., New
York City time, on the last Business Day preceding each Payment Date, the Servicer on behalf of the Issuer shall provide the Trustee with a statement regarding the amounts of principal, interest and Premium included in the amounts being distributed
to Noteholders pursuant to Section 3.07 on such Payment Date, and the Trustee shall include a copy of such statement with each distribution to a Noteholder (including DTC) made pursuant to Section 3.07. Each such statement shall include a notice to
the effect that the tax treatment of any Premium payment may differ from the interest payment, and may include a withholding obligation. 
  
 Section 2.14 CUSIP, CINS AND ISIN Numbers. The Issuer in issuing the Notes may use “CUSIP”, “CINS”,
“ISIN” or other identification numbers (if then generally in use), and if so, the Trustee shall use CUSIP numbers, CINS numbers, ISIN numbers or other identification numbers, as the case may be, in notices of redemption or exchange
as a convenience to Holders; provided that any such notice shall state that no representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of redemption or exchange and that reliance may
be placed only on the other identification numbers printed on the Notes; provided further, that failure to use “CUSIP”, “CINS”, “ISIN” or other identification numbers in any notice of redemption or exchange shall not
affect the validity or sufficiency of such notice. 
  
 Section
2.15 Refinancing Notes. (a) Subject to paragraphs (b) and (c) below and Section 5.02(d) hereof, the Issuer may issue Refinancing Notes pursuant to this Indenture for the purpose of refinancing all of the Outstanding Principal Balance of any
class of Notes (including a refinancing of Refinancing Notes). Each refinancing of any class of Notes with the proceeds of an offering of Refinancing Notes (a “Refinancing”) shall be authorized pursuant to one or more Board
Resolutions. Each Refinancing Note shall be designated generally as a “Note” for all purposes under this Indenture, with such further designations added or incorporated in such title as specified in the related Board Resolutions or
in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes, as the case may be. The Refinancing Notes shall be issued on the Payment Date on which the Redemption in whole of the class of
Notes being refinanced is to occur as provided in Section 3.10. 
  

 29 

 (b) A Refinancing of any class of Notes shall be effected as a Redemption pursuant to Section 3.09
hereof, provided that a Refinancing of the Class A Notes shall be effected as an Optional Redemption pursuant to Section 3.09(a) hereof. On the date of any Refinancing, the Issuer shall issue and sell an aggregate principal amount of Refinancing
Notes in an amount not less than the sum of the Redemption Price of the Notes being refinanced thereby plus the Refinancing Expenses relating thereto and any Redemption Premium plus any amount to be deposited in an Interest Reserve Account for such
Refinancing Notes. The proceeds of each sale of Refinancing Notes shall be used to make the deposit required by Section 3.10(b) hereof, to pay such Refinancing Expenses, to fund such Interest Reserve Account and/or deposit and for such other
purposes, if any, as shall be specified in the Board Resolution authorizing the issuance such Refinancing Notes. Once a notice of a Redemption in respect of any Refinancing is published in accordance with Section 3.10(a), each class of Notes to
which such notice applies shall become due and payable on the Refinancing Date stated in such notice at their Redemption Price. 
  
 (c) Each Refinancing Note shall contain such terms as may be established in or pursuant to the related Board Resolutions (subject to Section 2.01 hereof)
or in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes to the extent permitted below, and shall have the same ranking pursuant to Section 3.07 with respect to all other Outstanding
Notes as the Notes being refinanced thereby. No less than seven (7) Business Days prior to the issuance of any Refinancing Notes, any or all of the following, as applicable, with respect to the related issue of Refinancing Notes shall have been
determined by the Issuer and set forth in such Board Resolutions or in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes, as the case may be: 
  
 (1) the class of Notes to be refinanced by such Refinancing
Notes; 
  
 (2) the aggregate principal amount of
each class of Refinancing Notes which may be issued in respect of such Refinancing; 
  
 (3) the proposed date of such Refinancing; 
  
 (4) if applicable, the Base Case Final Payment Date and the Final Maturity Date of each class of such Refinancing Notes; 
  
 (5) the rate at which such Refinancing Notes shall bear
interest or the method by which such rate shall be determined; 
  
 (6) the denomination or denominations in which any class of such Refinancing Notes shall be issuable; 
  
 (7) whether any such Refinancing Notes are to be issuable initially in temporary or permanent global form and, if so, whether beneficial
owners of interests in any such permanent global Refinancing Note may exchange such interests for Refinancing Notes of such class and of like tenor of any authorized form and denomination and the circumstances under which any such exchanges may
occur, if other than in the manner provided in Section 2.07 hereof, and the circumstances under which and the place or places where any such exchanges may be made and the identity of any initial depository therefor; and 
  
 (8) any other terms, conditions, rights and preferences (or
limitations on such rights and preferences) relating to the class of Refinancing Notes (which terms shall comply with Applicable Law and not be inconsistent with the requirements or restrictions of this Indenture). 
  
 (d) If any of the terms of any issue of Refinancing Notes are established by
action taken pursuant to one or more Board Resolutions, such Board Resolutions shall be delivered to the Trustee setting forth the terms of such Refinancing Notes. 
  
 Section 2.16 Class B Notes. (a) Subject to paragraph (b) below and Section 5.02(d) hereof, the Issuer may issue Class
B Notes pursuant to this Indenture (a “Class B Issuance”), including for the purpose of funding a redemption of the Class A Notes, in whole or in part. Each Class B Issuance shall be authorized pursuant to one or 

  

 30 

 
more Board Resolutions. Each Class B Note shall be designated generally as a “Note” for all purposes under this Indenture. Each Class B Note shall
have such further designations added or incorporated in such title as specified in the related Board Resolutions or in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes, as the case may
be. If the proceeds of the Class B Notes are being used to redeem the Class A Notes, in whole or in part, the Class B Notes shall be issued on the Payment Date on which the Optional Redemption in whole of the Class A Notes being refinanced is to
occur as provided in Section 3.10. 
  
 (b) If the proceeds of the
Class B Notes are being used to redeem any Class A Notes, such redemption shall be effected as an Optional Redemption pursuant to Section 3.09 hereof. On the date of any such Optional Redemption, the Issuer shall issue and sell an aggregate
principal amount of Class B Notes in an amount not less than the sum of the Redemption Price of the Notes being refinanced thereby and any Redemption Premium plus the Transaction Expenses relating thereto plus any amount to be deposited in an
Interest Reserve Account for the Class B Notes. The proceeds of each sale of Class B Notes shall be used to make the deposit required by Section 3.10(b) hereof, if applicable, to pay such Transaction Expenses, to fund any Interest Reserve Account
and/or deposit and for such other purposes, if any, as shall be specified in the Board Resolution authorizing the issuance such Class B Notes. Once a notice of Redemption in respect of any Class B Issuance is published in accordance with Section
3.10(a), each class of Notes to which such notice applies shall become due and payable on the Redemption Date stated in such notice at their Redemption Price. 
  

(c) Each Class B Note shall contain such terms as may be established in or pursuant to the related Board Resolutions (subject to Section 2.01 hereof)
or in any indenture supplemental hereto providing for the issuance of such Notes or specified in the form of such Notes to the extent permitted below, and shall be subordinate to the Class A Notes to the extent provided in this Indenture. No less
than seven (7) Business Days prior to the issuance of the Class B Notes, any or all of the following, as applicable, with respect to the related Class B Issuance shall have been determined by the Issuer and set forth in such Board Resolutions or in
any indenture supplemental hereto or specified in the form of such Class B Notes, as the case may be, with respect to the Class B Notes to be issued: 
  
 (1) the aggregate principal amount of any such Class B Notes which may be issued; 
  
 (2) the proposed date of such Class B Issuance; 

 
 (3) if applicable, the Base Case Final Payment Date and
the Final Maturity Date of any such Class B Notes; 
  
 (4) whether any such Class B Notes are to have the benefit of any reserve account and, if so, the amount and terms thereof; 
  
 (5) the rate at which such Class B Notes shall bear interest or the method by which such rate shall be determined; 
  
 (6) the denomination or denominations in which such Class B
Notes shall be issuable; 
  
 (7) whether any such
Class B Notes are to be issuable initially in temporary or permanent global form and, if so, whether beneficial owners of interests in any such permanent global Class B Note may exchange such interests for Class B Notes of like tenor and of any
authorized form and denomination and the circumstances under which any such exchanges may occur, if other than in the manner provided in Section 2.07 hereof, and the circumstances under which and the place or places where any such exchanges may be
made and the identity of any initial depository therefor; and 
  
 (8) any other terms, conditions, rights and preferences (or limitations on such rights and preferences) relating to Class B Notes (which terms shall comply with Applicable Law and not be inconsistent with the
requirements or restrictions of this Indenture, including Sections 5.02(d) and 12.13 hereof). 
  
 (d) If any of the terms of any issue of Class B Notes are established by action taken pursuant to one or more Board Resolutions, such Board Resolutions shall be delivered to the Trustee setting forth the terms of such
Class B Notes. 
  

 31 

 Section 2.17 Contingent Payment Status. Each Holder, by its acceptance of a Class A Note, agrees
(i) that for U.S. federal income tax purposes, the Class A Notes will be treated as indebtedness subject to U.S. Treasury regulations governing contingent payment debt instruments; (ii) that the Holders of such Class A Notes will report original
issue discount and interest on the Class A Notes in accordance with the Issuer’s determination of both the “comparable yield” and the “projected payment schedule,” and (iii) that the Holders will be bound by the
Issuer’s application of the U.S. Treasury regulations that govern contingent payment debt instruments. For this purpose, the “comparable yield” for the Class A Notes and the “projected payment schedule” may be obtained by
contacting the Issuer, attention: Assistant Treasurer, at the address set forth in Section 12.05. 
  
 ARTICLE III 
  
 ACCOUNTS; PRIORITY OF PAYMENTS 
  
 Section 3.01
Establishment of Accounts. (a) The Servicer, acting on behalf of the Issuer, shall establish and maintain with the Operating Bank on its books and records in the name of the Issuer, subject to the lien in favor of the Trustee established by
this Indenture, (i) a Collection Account (the “Collection Account”), (ii) an interest reserve account (the “Interest Reserve Account”), (iii) if applicable, a redemption account (the “Redemption
Account”), (iv) if applicable, an escrow account (the “Escrow Account”), (iv) if applicable, a capital contribution account (the “Capital Account”), and (v) any additional accounts the establishment of
which is set forth in a Board Resolution delivered to the Trustee, in each case at such time as is set forth in this Section 3.01 or in such Board Resolution. Each Account shall be established and maintained as an Eligible Account so as to create,
perfect and establish the priority of the security interest of the Trustee in such Account and all cash, Eligible Investments and other property from time to time deposited therein and otherwise to effectuate the lien of the Indenture Estate.

  
 (b) Withdrawals and Transfers; Control. The Trustee
shall have sole dominion and control over the Accounts (including, inter alia, the sole power to direct withdrawals or transfers from the Accounts and to direct the investment and reinvestment of funds in the Accounts, subject to Section 3.02). The
Trustee shall make withdrawals and transfers from the Accounts in accordance with the terms of this Indenture based on the Relevant Information and as calculated by it pursuant to this Indenture. The Issuer, the Servicer and the Trustee acknowledge
that the Accounts are “deposit accounts” or “investment property” within the meaning of Section 9-102 of the UCC and that the Trustee has “control,” for purposes of Section 9-315 of the UCC, of Accounts that are
maintained with the Trustee as the Operating Bank. The Issuer and the Servicer agree that, if any Account is established or maintained with any Operating Bank other than the Trustee, the Issuer and the Servicer shall cause such Operating Bank to
enter into an agreement with the Trustee, the Issuer and the Servicer pursuant to which such Operating Bank agrees to comply with instructions originated by the Trustee directing the disposition, investment and reinvestment of funds in all Accounts
maintained with such Operating Bank without the further consent of the Issuer or the Servicer and shall take such other actions as are reasonably required by the Trustee to establish its “control,” for purposes of Section 9-315(a) of the
UCC, over any such Accounts. 
  
 (c) Eligible Accounts. If,
at any time, any Account ceases to be an Eligible Account, the Servicer or an agent thereof shall, within 10 Business Days, establish a new account meeting the conditions set forth in this Section 3.01 in respect of such Account and transfer any
cash or investments in the existing Account to such new account; and from the date such new collection account is established, it shall have the same designation as the existing Account. If the Operating Bank should change at any time, then the
Servicer, acting on behalf of the Issuer, shall thereupon promptly establish replacement accounts as necessary at the successor Operating Bank and transfer the balance of funds in each Account then maintained at the former Operating Bank pursuant to
the terms of the Purchase and Sale Agreement to such successor Operating Bank. 
  
 (d) Collection Account. The Servicer shall establish and maintain the Collection Account not later than the Closing Date, and the Collection Account shall bear a designation clearly indicating that the funds
deposited therein are held for the benefit of the Secured Parties. Except as expressly provided herein, all Collections shall be deposited in the Collection Account and transferred therefrom in accordance with the terms of this Indenture. No funds
shall be deposited in the Collection Account that do not constitute Collections except as expressly provided in this Indenture without the prior written consent of the Trustee. 
  
 (e) Interest Reserve Accounts. The Servicer shall establish and maintain an Interest Reserve Account for the Class A
Notes not later than the Closing Date and the Interest Reserve Account shall bear a 

  

 32 

 
designation clearly indicating that the funds deposited therein are held for the benefit of the Class A Noteholders. The Interest Reserve Amount shall be
held in the Interest Reserve Account and disbursed as provided in Section 3.07 hereof. An Interest Reserve Account may be established and maintained in respect of any Refinancing Notes or Class B Notes for the benefit of the Holders of such Notes to
the extent provided in the Board Resolutions authorizing the issuance of such Refinancing Notes or Class B Notes. 
  
 (f) Redemption Account. Upon receipt of notice of al Redemption of any class of Notes, the Servicer shall establish and maintain a Redemption
Account at the Operating Bank in the name of the Trustee for the benefit of the Holders of Notes that are the subject of such Redemption. All amounts received for the purpose of any such Redemption shall be deposited in such Redemption Account and
shall be held in such Account until such amounts are applied to pay the Redemption Price of such Notes and such Notes are cancelled by the Trustee. 
  
 (g) Escrow Account. Upon a determination by the Trustee that any Noteholder, Agent Member or Beneficial Holder has not delivered a Confidentiality
Agreement to the Issuer, the Servicer shall establish and maintain the Escrow Account at the Operating Bank in the name of the Trustee for the benefit of any such Noteholder, Agent Member or Beneficial Holder. All amounts withheld pursuant to
Section 2.05(d) shall be deposited in such Escrow Account and shall be held in such Account until such amounts are distributed as provided in that section. 
  
 (h) Capital Account. Upon the receipt of any capital contribution from NPS to the Issuer, the Servicer shall establish and maintain the Capital
Account at the Operating Bank in the name of the Trustee for the benefit of the Secured Parties. All such capital contributions shall be deposited in such Capital Account and shall be held in such Account and transferred (i) to the Collection
Account only to the extent permitted by Section 3.07 and (ii) to the Redemption Account only to the extent specifically provided for in any notice of an Optional Redemption delivered to the Trustee pursuant to Section 3.09(a). 
  
 Section 3.02 Investments of Cash. For so long as any Notes remain
Outstanding, the Trustee, at the direction of the Servicer, shall, or shall direct the Eligible Institution holding each Account in writing, to invest and reinvest the funds on deposit in the Accounts in Eligible Investments; provided, however, that
so long as an Event of Default has occurred and is continuing, the Trustee shall invest such amount in Eligible Investments described in clause (d) of the definition thereof from the time of receipt thereof until such time as such amounts are
required to be distributed pursuant to the terms of this Indenture. In the absence of written direction delivered to the Trustee from the Servicer, the Trustee shall invest any funds in Eligible Investments described in clause (d) of the definition
thereof. The Trustee shall make such investments and reinvestments in accordance with the terms of the following provisions: 
  
 (i) the Eligible Investments shall have maturities and other terms such that sufficient funds shall be available to make required payments
pursuant to this Indenture on the Business Day immediately preceding the first Payment Date after which such investment is made, in the case of investments of funds on deposit in the Collection Account; and 
  
 (ii) if any funds to be invested are not received in the
Accounts by 1:00 p.m., New York City time, on any Business Day, such funds shall, if possible, be invested in overnight Eligible Investments. 
  
 The Issuer acknowledges that regulations of the U.S. Comptroller of the Currency grant the Issuer the right to receive confirmations of security
transactions as they occur. The Issuer specifically waives receipt of such confirmations to the extent permitted by law and acknowledges that the Trustee will furnish periodic cash transaction statements which will detail all investment
transactions. 
  
 Section 3.03 Closing Date Deposits,
Withdrawals and Transfers. (a) On the Closing Date, the Trustee shall, subject to the receipt of written direction from the Issuer upon receipt of the proceeds of the sale by the Issuer of the Notes, make the following payments and transfers to
the Accounts from such proceeds: 
  
 (i) pay to
such Persons as shall be specified by the Issuer such Transaction Expenses as shall be due and payable in connection with the issuance and sale of the Notes; 
  

(ii) pay the initial Hedge Payment to the Hedge Provider, if directed by the Issuer; 
  

 33 

 (iii) deposit into the Interest Reserve Account an amount equal to the Interest Reserve
Amount; and 
  
 (iv) remit to NPS, in accordance
with the Purchase and Sale Agreement, an amount equal to the cash portion of the Purchase Price as specified therein. 
  
 (b) On the date of issuance of any Refinancing Notes or Class B Notes, the Trustee shall, subject to the receipt of written direction from the Issuer upon
receipt of the proceeds of the sale by the Issuer of such Notes, make such payments and transfers as shall be specified in the related Board Resolution and any supplemental indenture in respect of such Notes. 
  
 Section 3.04 Capital Contributions; Interest Reserve Amount. (a) The
Issuer may accept capital contributions made by NPS, provided that such capital contributions are deposited by Issuer in the Capital Account. 
  
 (b) On the Payment Date scheduled for December 30, 2006, the Trustee shall transfer to the Collection Account the balance, if any, remaining in the
Interest Reserve Account after the payment of the Interest Amount on the Class A Notes for such Payment Date, and the amount so transferred shall be included in the Available Collections Amount for such Payment Date. 
  
 Section 3.05 Calculation Date Calculations. (a) Calculation of
Certain Amounts. As soon as reasonably practicable after each Calculation Date, but in no event later than 12:00 noon (New York, New York time) on the second Business Day prior to the immediately succeeding Payment Date, the Trustee shall, based
on information known to it or Relevant Information provided to it, determine the Collections received during the period commencing on the day next following the preceding Calculation Date and ending on such Calculation Date (including the amount of
any investment earnings on the balance in the Interest Reserve Account and Collection Account as of such Calculation Date and any amount to be transferred pursuant to Sections 3.06 and 3.07 in respect of the immediately succeeding Payment Date) and
shall calculate the following amounts: 
  
 (i)
the balance of funds on deposit in each of the Collection Account and the Interest Reserve Account on such Calculation Date; 
  
 (ii) the Expenses payable on the Payment Date immediately succeeding such Calculation Date, consisting of all costs incurred by the
Trustee and not previously reimbursed and the amounts shown on all invoices received from the Servicer for the reimbursement or payment of Expenses not previously paid or reimbursed; 
  
 (iii) the amount of the B&W Payment, if any, to be made on the Payment Date immediately succeeding such
Calculation Date; 
  
 (iv) the Available
Collections Amount for such Payment Date; and 
  
 (v) any other information, determinations and calculations reasonably required in order to give effect to the terms of this Indenture and the Related Documents. 
  
 (b) Calculation of Interest Amounts. Not later than 12:00 noon (New York, New York time) on the second Business Day
prior to each Payment Date, the following calculations or determinations with respect to Interest Amounts due on such Payment Date shall be performed or made by the Calculation Agent and provided to the Servicer: 
  
 (i) the applicable interest rate on each class of Floating
Rate Notes based on LIBOR determined on the Reference Date for the Interest Accrual Period beginning on such Payment Date; and 
  
 (ii) the Interest Amount (including any Additional Interest) on each class of Floating Rate Notes and Fixed Rate Notes for such Payment
Date. 
  
 (c) Calculation of Principal Payments. Not later
than 12:00 noon (New York, New York time) on the second Business Day prior to each Payment Date, the Trustee shall calculate or determine the following with respect to principal payments due on such Payment Date: 
  
 (i) the Outstanding Principal Balance of each class of Notes
on such Payment Date immediately prior to any principal payment on such date; 
  

 34 

 (ii) for each March 30 Payment Date, the Cash Sweep Principal Amount and the Cash Sweep
Premium, if any; and 
  
 (iii) the amount of any
other principal payment, if any, to be made in respect of each class of Notes on such Payment Date. 
  
 (d) Calculation of Redemption Amounts. Not later than 12:00 noon (New York, New York time) on the second Business Day prior to the Redemption Date
on which a Redemption of Notes is scheduled to occur, the Trustee shall perform the calculations necessary to determine the Redemption Price of the Notes to be repaid on such Redemption Date, the Redemption Premium, if any, to be paid in addition to
such Redemption Price and the amount of accrued and unpaid interest on the Notes being redeemed through the Redemption Date. 
  
 (e) Calculation of Shortfalls. Not later than 12:00 noon (New York, New York time) on the second Business Day prior to each Payment Date, the
Trustee shall perform the calculations necessary to determine the following: 
  
 (i) the shortfall, if any, of the Available Collections Amount for such Payment Date in respect of the Interest Amount due to the Class A Noteholders pursuant to clause (ii) of Section 3.07(a) (a
“Shortfall”), taking into account the payment of Expenses and any B&W Payment payable on such Payment Date; and 
  
 (ii) with respect to each Shortfall, the amount to be withdrawn from the Interest Reserve Account and/or the Capital Account, determined
as provided in Section 3.07(a). 
  
 (f) Application of the
Available Collections Amount. Not later than 1:00 p.m., New York City time, two Business Days prior to each Payment Date, the Trustee shall determine the amounts to be applied on such Payment Date to make each of the payments contemplated by
Section 3.07(a) or 3.07(b), as applicable, setting forth separately, in the case of payments in respect of each class of Notes, the amount to be applied on such Payment Date to pay all Expenses and any B&W Payment due and payable on such date,
and interest, principal and Premium, if any, on such class of Notes, all in accordance with Section 3.07. 
  
 (g) Reports. The Trustee shall provide to the Servicer the information described in Sections 3.05(a), (b), (c), (d), (e) and (f) to
the Servicer, no later than 1:00 p.m., New York City time, two Business Days immediately preceding each Payment Date. 
  
 Section 3.06 Payment Date First Step Transfers. On each Payment Date, the Trustee shall transfer from any Account (other than the Collection
Account, the Interest Reserve Account and the Capital Account) to the Collection Account the amount of earnings (net of losses and investment expenses), if any, on investments of funds on deposit therein during the preceding Interest Accrual Period.

  
 Section 3.07 Payment Date Second Step Withdrawals. (a)
On each Payment Date, after the transfers provided for in Section 3.06 have been made and after making the distributions, if any, pursuant to Section 3.07(b), the Trustee shall distribute the amounts set forth below in the order of priority set
forth below but, in each case, only to the extent that all amounts then required to be paid ranking prior thereto (“Prior Ranking Amounts”) have been paid in full. Except as provided in clause (iv) of the definition of Collections
and in clause (c) of the definition of Available Collections Amount, the Available Collections Amount does not include the aggregate amount of funds on deposit in the Interest Reserve Account and the Capital Account, provided that, if there is a
Shortfall, then the Trustee shall withdraw from the Interest Reserve Account the lesser of the Shortfall and the Interest Reserve Account Balance and distribute it to the Class A Noteholders in payment of the Interest Amount, and provided further
that, if the amount available in the Interest Reserve Account is less than the amount of such Shortfall, and there is a positive balance in the Capital Account, the Trustee shall withdraw from the Capital Account an amount equal to the lesser of the
excess of the Shortfall over the amount, if any, withdrawn from the Interest Reserve Account and the balance in the Capital Account and distribute it to the Class A Noteholders in payment of the Interest Amount, and provided further that the Trustee
shall make such a withdrawal from the Capital Account in respect of not more than six (6) Payment Dates in total prior to the Final Maturity Date of the Notes and in respect of 
  

 35 

 not more than any three consecutive Payment Dates. Except for such withdrawals, the amounts set forth below are to be
paid out of the Available Collections Amount: 
  
 (i) First, to the payment of Expenses to such Persons as shall be entitled to payment or reimbursement thereof and to the payment of any B&W Payment, if required pursuant to Section 3.08; 
  
 (ii) Second, to the Class A Noteholders, the Interest
Amount on the Class A Notes; 
  
 (iii)
Third, on each March 30 Payment Date, to the Class A Noteholders, the Cash Sweep Principal Amount and the Cash Sweep Premium, if any, allocated pro rata in proportion to the outstanding principal balance of the Class A Notes held by such
Class Noteholders, until the Class A Notes have been paid in full; 
  
 (iv) Fourth, on each Payment Date other than the March 30 Payment Date and the Final Maturity Date, the Net Available Collections Amount shall be retained in the Collection Account, until the Class A Notes have
been paid in full; 
  
 (v) Fifth, to the
payment of principal on the Class A Notes until the Class A Notes have been paid in full; 
  
 (vi) Sixth, to the Class B Noteholders, if any, the Interest Amount on the Class B Notes; 
  
 (vii) Seventh, to the Class B Noteholders, payment of
the principal amount of the Class B Notes until the Class B Notes have been paid in full; and 
  
 (viii) Eighth, to the Issuer, all remaining amounts. 
  
 (b) Redemption. On any Payment Date on which any class of Notes is to be the subject of a Redemption, in whole or in
part, the Trustee shall distribute the amounts in the applicable Redemption Account as provided herein and in the applicable Board Resolutions, including the following: 
  
 (i) pay to such Persons as shall be specified by the Issuer such Transaction Expenses as shall be due and
payable in connection with the issuance and sale of the applicable Refinancing Notes or Class B Notes; 
  
 (ii) deposit into an Interest Reserve Account, if applicable, an amount equal to the Interest Reserve Amount; 
  
 (iii) remit to the Holders of such class of Notes, in
accordance with the Board Resolutions authorizing the Redemption, an amount equal to Redemption Price plus Premium, if any; and 
  
 (iv) make such other distributions and payments as shall be authorized and directed by the Board Resolutions and indenture supplements
executed in connection with . 
  
 Section 3.08 B&W
Payment/Amgen Payment. The Servicer, any Noteholder, B&W or Amgen may inform the Trustee in writing of the existence of a B&W Shortfall or of an Amgen Payment made by Amgen. If the Trustee receives written notice from any Person other
than the Servicer that there is a B&W Shortfall or an Amgen Payment made by Amgen, the Trustee shall promptly notify the Servicer, and the Servicer shall confirm the amount of B&W Shortfall or Amgen Payment. If, as of any Calculation Date,
the B&W Shortfall has not been cured by the payment of the B&W Shortfall to B&W, the Trustee shall make a B&W Payment to B&W on the related Payment Date in the amount of such shortfall, provided that, if the Trustee has not
received written notice, at least two Business Days prior to any Payment Date, of the existence and amount of a B&W Shortfall, no B&W Payment shall be made. If amounts described in clause (v) of the definition of “Collections” are
received after such Calculation Date, they shall be deposited in the Collection Account and included in the Available Collections Amount on the next succeeding Calculation Date. 
  
 Section 3.09 Redemptions. (a) Optional Redemption. Subject to the provisions of Section 3.10 hereof, on
any Payment Date the Issuer may elect to redeem any class of Notes (i) in whole but not in part out of the 

  

 36 

 
proceeds of the Refinancing Notes, in the case of a Refinancing of such class of Notes, or out of amounts available in the Redemption Account for such
purpose, if any, including the proceeds of any Class B Notes but excluding Available Revenues, in each case, at the Redemption Price plus the Redemption Premium, if any, plus accrued and unpaid interest through the Redemption Date (any such
redemption, an “Optional Redemption”). The Issuer shall give notice of any such Optional Redemption to the Trustee not later than seven (7) Business Days prior to the date on which notice is to be given in accordance with Section
3.10(a). Such notice to the Trustee shall include a copy of the Board Resolution authorizing such Optional Redemption and shall set forth the relevant information regarding such Optional Redemption, including the information to be included in the
notice given pursuant to Section 3.10(a). 
  
 (b) Cash
Sweep Principal Redemption. By March 15 of each year, or, if later, within three Business Days after the date on which the Servicer provides the Trustee with the information necessary to calculate the Cash Sweep Principal Amount and the Cash
Sweep Premium, commencing in 2006, the Trustee shall distribute a notice to the holders of Class A Notes that sets forth the amount of the Cash Sweep Principal Amount and the Cash Sweep Premium, if any, to be paid in redemption of the Class A Notes
on the following March 30 Payment Date. The Cash Sweep Principal Amount and the Cash Sweep Premium, if any, shall be allocated pro rata proportionately to the principal amount of the Class A Notes. If mailed in the manner herein provided, the notice
shall be conclusively presumed to have been given whether or not the Holder receives such notice. Failure to give notice or any defect in the notice shall not affect the validity of the notice. 
  
 (c) Other Redemptions. A supplemental indenture providing for the
issuance of any Refinancing Notes or Class B Notes may authorize one or more redemptions, in whole or in part, of such Notes, on such terms and subject to such conditions as shall be specified in such supplemental indenture. 
  
 Section 3.10 Procedure for Redemptions. (a) Method of
Redemption. The Trustee (or the Servicer acting as its agent (or any authorized agent of the Servicer)) shall give written notice in respect of any Redemption of any class of Notes under Section 3.9 hereof to each Holder of such Notes at least
thirty (30) days but not more than sixty (60) days before such Redemption Date. The Trustee shall not be permitted to deliver any notice under this Section 3.10(a) unless and until it shall have received evidence satisfactory to it that amounts
sufficient to pay (A) the Redemption Price for such class of Notes plus the Redemption Premium, if any, (B) all accrued and unpaid interest, including Additional Interest, in respect of each class of Notes ranking pari passu therewith or prior
thereto and (C) the Transaction Expenses relating to such Redemption are deposited, or will be deposited on or before the Redemption Date, in the Redemption Account established in respect of such Redemption. Each notice in respect of a Redemption
given pursuant to this Section 3.10(a) shall state (i) the applicable Redemption Date, (ii) the Trustee’s arrangements for making payments in respect of such Redemption, (iii) the Redemption Price of the Notes to be redeemed and the Redemption
Premium, if any, (iv) in the case of a Redemption of the Notes of any class in part, the portion of the Outstanding Principal Balance of the Notes that will be redeemed; (v) that Notes to be redeemed in a Redemption in whole must be surrendered
(which action may be taken by any Holder of the Notes or its authorized agent) to the Trustee to collect the Redemption Price on such Notes, and (vi) that, unless the Issuer defaults in the payment of the Redemption Price, interest on Notes called
for Redemption in whole shall cease to accrue on and after the Redemption Date. If mailed in the manner herein provided, the notice shall be conclusively presumed to have been given whether or not the Holder receives such notice. Failure to give
notice or any defect in the notice shall not affect the validity of the notice. 
  
 (b) Deposit of Redemption Amount. On or before any Redemption Date in respect of a Redemption under Section 3.9, the Issuer shall, to the extent an amount equal to the Redemption Price of the Notes to be
redeemed and any Transaction Expenses as of the Redemption Date is not then held by the Issuer or on deposit in the Redemption Account, deposit or cause to be deposited in the Redemption Account an amount in immediately available funds equal to such
amount. 
  
 (c) Notes Payable on Redemption Date. After
notice has been given under Section 3.10(a) hereof as to the Redemption Date in respect of any Redemption, the Outstanding Principal Balance of the Notes to be redeemed on such Redemption Date shall become due and payable at the Corporate Trust
Office of the Trustee, and from and after such Redemption Date (unless there shall be a default by the Issuer in the payment of the Redemption Price) such principal amount shall cease to bear interest. Upon surrender of any Note for redemption in
accordance with such notice, the Redemption Price of such Note shall be paid as provided for in Section 3.07(b). If any Note to be redeemed shall not be so paid upon surrender thereof for redemption, the Outstanding Principal Balance thereof shall
continue to bear interest from the Redemption Date until paid at the interest rate applicable to such Note. 
  

 37 

 Article IV 
  
 DEFAULT AND REMEDIES 
  
 Section 4.01 Events of Default. Each of the following events shall constitute an “Event of Default” hereunder with respect to any
class of Notes, and each such Event of Default shall be deemed to exist and continue so long as, but only so long as, it shall not have been waived or remedied, as applicable: 
  
 (a) (i) in the case of the Class A Notes, failure to pay the interest on the Class A Notes due on any Payment Date other
than the Final Maturity Date in full on such Payment Date or by the next succeeding Payment Date, together with Additional Interest on any interest not paid on the Payment Date on which it was originally due, (ii) failure to pay in full on the Final
Maturity Date all accrued and unpaid interest due on the Class A Notes, and (iii) in the case of any class of Notes other than the Class A Notes, failure to pay when due interest on any Notes of such class on any Payment Date; 
  
 (b) failure to pay when due principal and Premium, if any, on any Notes of
such class on or prior to the applicable Final Maturity Date or to pay the Redemption Price and the Redemption Premium, if any, when due on any Redemption Date or Refinancing Date for such class; 
  
 (c) failure to pay any amount (other than interest, Premium and principal on
the Notes) when due and payable in connection with such class of Notes and the continuance of such default for a period of five Business Days or more after written notice thereof is given to the Issuer by the Trustee; 
  
 (d) failure by the Issuer to comply with any of the covenants, obligations,
conditions or provisions binding on it under this Indenture or the Notes (other than a payment default for which provision is made in clause (a), (b) or (c) of this Section 4.01), if such failure materially adversely affects the Holders of such
class of Notes and continues for a period of 30 days or more after written notice thereof has been given to the Issuer by the Trustee, upon the written direction of Holders (not affiliated with the Issuer) of a majority of the aggregate Outstanding
Principal Balance of the Notes); 
  
 (e) a court having
jurisdiction in the premises enters a decree or order for (i) relief in respect of the Issuer under any Applicable Law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization, examination, relief of debtors or other
similar law now or hereafter in effect; (ii) appointment of a receiver, liquidator, examiner, assignee, custodian, trustee, sequestrator or similar official of the Issuer; or (iii) the winding up or liquidation of the affairs of the Issuer and, in
each case, such decree or order shall remain unstayed or such writ or other process shall not have been stayed or dismissed within 90 days from entry thereof; 
  

(f) the Issuer (i) commences a voluntary case under any Applicable Law relating to bankruptcy, insolvency, receivership, winding-up, liquidation,
reorganization, examination, relief of debtors or other similar law now or hereafter in effect, or consents to the entry of an order for relief in any involuntary case under any such law; (ii) consents to the appointment of or taking possession by a
receiver, liquidator, examiner, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for all or substantially all of the property and assets of the Issuer; or (iii) effects any general assignment for the benefit of
creditors; 
  
 (g) any judgment or order for the payment of money
in excess of $1,000,000 shall be rendered against the Issuer and either (i) enforcement proceedings have been commenced by any creditor upon such judgment or order or (ii) there is any period of 10 consecutive days during which a stay of enforcement
of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; 
  
 (h) the organizational documents creating the Issuer cease to be in full force and effect without replacement documents having the same terms being in full force and effect; or 
  
 (i) NPS shall have failed to perform in any material respect any of its
covenants under Sections 2.2(a) and (b), 6.1(b), (c) and (h) and 6.2(a), (c) and (d) of the Purchase and Sale Agreement. 
  
 Section 4.02 Acceleration, Rescission and Annulment. (a) If an Event of Default with respect to the Notes (other than an Event of Default under
clause (e) or (f) of Section 4.01) occurs and is continuing, the Trustee may, and, upon the direction of Holders (not affiliated with the Issuer) of a majority of the aggregate Outstanding Principal Balance of the Senior Class of Notes, shall, give
an Acceleration Notice to the Issuer declaring the 

  

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Outstanding Principal Balance of such Notes and all accrued and unpaid interest thereon to be due and payable. Upon delivery of an Acceleration Notice, such
Outstanding Principal Balance and all accrued and unpaid interest thereon shall be due and payable. At any time after the Trustee has declared the Outstanding Principal Balance of the Notes to be due and payable and prior to the exercise of any
other remedies pursuant to this Article IV, the Trustee, upon the direction of Holders (not affiliated with the Issuer) of a majority of the aggregate Outstanding Principal Balance of the Senior Class of Notes, shall, subject to Section 4.05(a), by
written notice to the Issuer and the Trustee, rescind and annul such declaration and thereby annul its consequences if: (i) there has been paid to or deposited with the Trustee an amount sufficient to pay all overdue installments of interest on the
Notes, and the principal of, and Premium, if any, on the Notes that would have become due otherwise than by such declaration of acceleration, (ii) the rescission would not conflict with any judgment or decree and (iii) all other Defaults and Events
of Default, other than nonpayment of interest and principal on the Notes that have become due solely because of such acceleration have been cured or waived. If an Event of Default under clause (e) or (f) of Section 4.01 occurs, the Outstanding
Principal Balance of the Notes and all accrued and unpaid interest thereon shall automatically become due and payable without any further action by any party. 
  
 (b) Notwithstanding Sections 4.02, 4.03 and 4.12 hereof, after the occurrence and during the continuation of an Event of
Default, no Holders of any class of Notes other than the Senior Class of Notes shall be permitted to give or direct the giving of an Acceleration Notice, or to exercise any remedy in respect of such Event of Default, and no Person other than the
Controlling Party, at the direction of a majority of the aggregate Outstanding Principal Balance of the Senior Class of Notes, may give an Acceleration Notice or exercise any such remedy. 
  
 (c) Within 30 days after the occurrence of an Event of Default in respect of any class of Notes, the Trustee shall give to
the Noteholders of such class of Notes notice, transmitted by mail, of all uncured or unwaived Defaults known to it on such date; provided that the Trustee may withhold such notice with respect to a Default (other than a payment default with respect
to interest, principal or Premium, if any) if it determines in good faith that withholding such notice is in the interest of the affected Noteholders. 
  
 Section 4.03 Other Remedies. Upon the delivery of an Acceleration Notice in accordance with Section 4.02 hereof or if any Acceleration Default
shall have occurred and be continuing, the Senior Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of, Premium, if any, or interest on the Notes or to enforce the performance of any
provision of the Notes, this Indenture or the Pledge Agreement, including any of the following: 
  
 (a) The Senior Trustee may obtain the appointment of a Receiver of the Indenture Estate as provided in Section 12.08 hereof and the Issuer consents to and
waives any right to notice of such appointment. 
  
 (b) The Senior
Trustee may, without notice to the Issuer and at such time as the Senior Trustee in its sole discretion may determine, exercise any or all of the Issuer’s rights in, to and under or in any way connected with or related to, any or all of the
Indenture Estate, including, (A) demanding and enforcing payment and performance of, and exercising any or all of the Issuer’s rights and remedies with respect to the collection, enforcement or prosecution of, any or all of the Royalty Rights
and under the Related Documents, in each case by legal proceedings or otherwise, (B) settling, adjusting, compromising, extending, renewing, discharging and releasing any or all of, and any legal proceedings brought to collect or enforce any or all
of, the Royalty Rights and under the Related Documents, and (C) preparing, filing and signing the name of the Issuer on (1) any proof of claim or similar document to be filed in any bankruptcy or similar proceeding involving the Royalty Rights and
the Related Documents and (2) any notice of lien, assignment or satisfaction of lien, or similar document in connection with the Royalty Rights and the Related Documents. 
  
 (c) The Senior Trustee may, without notice except as specified below, sell or cause the sale of all or any part of the
Indenture Estate in one or more parcels at public or private sale, at any of the Senior Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Senior Trustee may deem commercially
reasonable, provided that, so long as the License Agreement has not been terminated, the Senior Trustee shall make any such sale only to a Person that is a Permitted Holder. The Issuer agrees that, to the extent notice of sale shall be
required by law, at least ten (10) days’ notice to the Issuer of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Senior Trustee shall not be obligated to
make any sale of all or any part of the Indenture Estate regardless of notice of sale having been given. The Senior Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. 
  

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 (d) The Senior Trustee may, instead of exercising the power of sale conferred upon it by Section 4.03(c)
and Applicable Law, may proceed by a suit or suits at law or in equity to foreclose the Security Interest and sell all or any portion of the Indenture Estate under a judgment or a decree of a court or courts of competent jurisdiction,
provided that, so long as the License Agreement has not been terminated, the Senior Trustee shall make any such foreclosure sale only to a Person that is a Permitted Holder. 
  
 (e) The Senior Trustee may require the Issuer to, and the Issuer hereby agrees that it shall at its expense and upon request
of the Senior Trustee forthwith assemble all or part of the Indenture Estate as directed by the Senior Trustee and make it available to the Senior Trustee at a place to be designated by the Senior Trustee that is reasonably convenient to both
parties. 
  
 (f) In addition to the rights and remedies provided
for in this Indenture, the Senior Trustee may exercise in respect of the Indenture Estate all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected property included in the Indenture
Estate) and under all other Applicable Law, provided that, so long as the License Agreement has not been terminated, the Senior Trustee shall cause any sale of the Collateral to be made only to a Person that is a Permitted Holder. 

 
 (g) The Senior Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. 
  
 Section 4.04 Limitation on Suits. Without limiting the provisions of Section 4.09 and the final sentence of Section 12.04, no Holder shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, the Pledge Agreement or the Notes, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
  
 (a) such Holder is a holder of the Senior Class of Notes and has previously given written notice to the Trustee of a continuing Event of Default;

  
 (b) the Holders (not affiliated with the Issuer) of a majority
of the aggregate Outstanding Principal Balance of the Senior Class of Notes make a written request to the Trustee to pursue a remedy hereunder; 
  
 (c) such Holder or Holders offer to the Trustee an indemnity reasonably satisfactory to the Trustee against any costs, expenses and liabilities to be
incurred in complying with such request; 
  
 (d) the Trustee does
not comply with such request within 60 days after receipt of the request and the offer of indemnity; and 
  
 (e) during such 60-day period, Holders of a majority of the Outstanding Principal Balance of the Senior Class of Notes do not give the Trustee a direction
inconsistent with such request. 
  
 No one or more Noteholders may
use this Indenture to affect, disturb or prejudice the rights of another Holder or to obtain or seek to obtain any preference or priority not otherwise created by this Indenture and the terms of the Notes over any other Holder or to enforce any
right under this Indenture, except in the manner herein provided. 
  
 Section 4.05 Waiver of Existing Defaults. (a) The Trustee or the Holders of a majority of the aggregate Outstanding Principal Balance of the Senior Class of Notes by notice to the Trustee may waive any existing Default (or Event of
Default) hereunder and its consequences, except a Default (or Event of Default): (i) in the payment of the interest on, principal of, and Premium, if any, on any Note or (ii) in respect of a covenant or provision hereof which under Article IX hereof
cannot be modified or amended without the consent of the Holder of each Note affected thereby. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture, but no such waiver shall extend to any subsequent or other Default (or Event of Default) or impair any right consequent thereon. 
  

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 (b) Any written waiver of a Default or an Event of Default given by Holders of the Notes to the Trustee
and the Issuer in accordance with the terms of this Indenture shall be binding upon the Trustee and the other parties hereto. Unless such writing expressly provides to the contrary, any waiver so granted shall extend only to the specific event or
occurrence which gave rise to the Default or Event of Default so waived and not to any other similar event or occurrence which occurs subsequent to the date of such waiver. 
  
 Section 4.06 Restoration of Rights and Remedies. If the Trustee or any Noteholder of the Senior Class of Notes has
instituted any proceeding to enforce any right or remedy under this Indenture, and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or such Holder, then in every such case the Issuer,
the Trustee and the Noteholders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Noteholders shall
continue as though no such proceeding has been instituted. 
  
 Section 4.07 Remedies Cumulative. Each and every right, power and remedy herein given to the Trustee specifically or otherwise in this Indenture shall be cumulative and shall be in addition to every other right, power and remedy
herein specifically given or now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy whether specifically herein given or otherwise existing may be exercised from time to time and as often and in such
order as may be deemed expedient by the Trustee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy.
No delay or omission by the Trustee in the exercise of any right, remedy or power or in the pursuance of any remedy shall impair any such right, power or remedy or be construed to be a waiver of any Default on the part of the Issuer or to be an
acquiescence. 
  
 Section 4.08 Authority of Courts Not
Required. The parties hereto agree that, to the greatest extent permitted by law, the Trustee shall not be obliged or required to seek or obtain the authority of, or any judgment or order of, the courts of any jurisdiction in order to exercise
any of its rights, powers and remedies under this Indenture, and the parties hereby waive any such requirement to the greatest extent permitted by law. 
  
 Section 4.09 Rights of Noteholders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Noteholder to
receive payment of interest on, principal of, or Premium, if any, on its Note on or after the respective due dates therefor expressed in such Note, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not
be impaired or affected without the consent of such Noteholder. 
  
 Section 4.10 Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of any Noteholder allowed in any
judicial proceedings relating to any obligor on the Notes, its creditors or its property. 
  
 Section 4.11 Undertaking for Costs. All parties to this Indenture agree, and each Noteholder by its acceptance thereof shall be deemed to have agreed, that in any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and the
court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defense made by the party litigant. This Section
4.11 does not apply to a suit instituted by the Trustee, a suit instituted by any Noteholder for the enforcement of the payment of interest, principal, or Premium, if any, on his Note on or after the respective due dates expressed in such Note, or a
suit by a Noteholder or Noteholders of more than 10% of the Outstanding Principal Balance of the Notes. 
  
 Section 4.12 Control by Noteholders. Subject to Sections 4.02 and 4.04 hereof and to the rights of the Trustee hereunder, Noteholders of any class
of Notes with at least a majority of the Outstanding Principal Balance of such class of Notes shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee under this Indenture; provided that: 
  
 (1) such direction shall not be in conflict with any rule of law or with this Indenture and would not involve the Trustee in personal liability or expense; 
  
 (2) the Trustee shall not determine that the action so
directed would be unjustly prejudicial to the Noteholders of such class not taking part in such direction; and 
  

 41 

 (3) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction. 
  
 Section 4.13 Controlling
Party. The “Controlling Party” with respect to this Indenture shall be the Senior Trustee, which shall be (A) so long as any Class A Notes are outstanding, the Trustee acting at the direction of the Noteholders of the Class A
Notes evidencing a majority of the Outstanding Principal Balance of the Class A Notes, and (B) after the Class A Notes have been repaid in full, and so long as any Class B Notes are Outstanding, the Trustee acting at the direction of the Noteholders
of the Class B Notes evidencing a majority of the Outstanding Principal Balance of the Class B Notes. For purposes of giving effect to the foregoing, the Trustee irrevocably agrees (and the Noteholders (other than the Noteholders represented by the
Controlling Party) shall be deemed to agree by virtue of their purchase of the Notes) that the Controlling Party, as determined in accordance with this Section 4.13, shall have all of the rights granted to it under this Indenture, including the
right to direct the Trustee to take certain action as provided for in this Indenture, and the Trustee hereby agrees to act in accordance with each such authorized direction of the Controlling Party. 
  
 Section 4.14 Application of Proceeds. All cash proceeds received by
the Senior Trustee in respect of any sale of, collection from, or other realization upon all or any part of the Indenture Estate shall be deposited in the Collection Account and distributed as provided in Article III. Any surplus of such cash
proceeds held by the Senior Trustee and remaining after payment in full of all the Secured Obligations shall be paid over to the Issuer or whomsoever may be lawfully entitled to receive such surplus as provided in Section 3.07 hereof. Any amount
received for any sale or sales conducted in accordance with the terms of Section 4.03 shall to the extent permitted by Applicable Law be deemed conclusive and binding on the Issuer and the Noteholders. 
  
 Section 4.15 Waivers of Rights Inhibiting Enforcement. The Issuer
waives (a) any claim that, as to any part of the Indenture Estate, a public sale, should the Senior Trustee elect so to proceed, is, in and of itself, not a commercially reasonable method of sale for such part of the Indenture Estate, (b) the right
to assert in any action or proceeding between it and the Senior Trustee offsets or counterclaims that it may have, (c) except as otherwise provided in any of the Related Documents, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE OR JUDICIAL
HEARING IN CONNECTION WITH THE TRUSTEE’S TAKING POSSESSION OR DISPOSITION OF ANY OF THE INDENTURE ESTATE INCLUDING ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT THAT THE ISSUER WOULD OTHERWISE
HAVE UNDER THE CONSTITUTION OR ANY STATUTE OF THE U.S. OR OF ANY STATE, AND ALL OTHER REQUIREMENTS AS TO THE TIME, PLACE AND TERMS OF SALE OR OTHER REQUIREMENTS WITH RESPECT TO THE ENFORCEMENT OF THE TRUSTEE’S RIGHTS HEREUNDER, (d) all rights
of redemption, appraisement, valuation, stay and extension or moratorium and (e) all other rights the exercise of which would, directly or indirectly, prevent, delay or inhibit the enforcement of any of the rights or remedies under this Indenture or
the absolute sale of the Indenture Estate, now or hereafter in force under any Applicable Law, and the Issuer, for itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby waive the benefit of all such laws
and rights. 
  
 ARTICLE V 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 5.01 Representations and Warranties. The Issuer represents and
warrants to the Trustee as of the Closing Date as follows: 
  
 (a) Due Organization. The Issuer is a limited liability company created under the laws of Delaware, with full power and authority to conduct its business; and the Issuer is not in liquidation or bankruptcy and has not taken any of
the actions described in Section 4.01(f). 
  
 (b) Special
Purpose Status. The Issuer has not engaged in any activities since its organization (other than those incidental to its organization and permitted by its organizational documents, the execution of the Related Documents to which it is a party and
the activities referred to, in or contemplated by such agreements), and the Issuer has not paid any dividends or made any similar distributions since its organization. 
  

 42 

 (c) Non-Contravention. The creation of the Notes and the issuance, execution and delivery of, and
the compliance by the Issuer with the terms of the Notes and each of the other Related Documents to which it is a party: 
  
 (i) do not at the Closing Date conflict with, or result in a breach of any of the terms or provisions of, or constitute a default under,
the organizational documents of the Issuer or with any existing law, rule or regulation applying to or affecting the Issuer or any judgment, order or decree of any government, governmental body or court having jurisdiction over the Issuer; and

  
 (ii) do not at the Closing Date violate, or
constitute a default under, any deed, indenture, agreement or other instrument or obligation to which the Issuer is a party or by which it or any part of its assets, property or revenues are bound. 
  
 (d) Due Authorization. The creation, execution and issuance of the
Notes, the execution and delivery by the Issuer of the Related Documents executed by it and the performance by it of its obligations hereunder and thereunder and the arrangements contemplated hereby and thereby to be performed by it have been duly
authorized by it. 
  
 (e) Validity and Enforceability. This
Indenture constitutes, and the Related Documents to which it is a party, when executed and delivered and, in the case of the Notes, when issued and authenticated, will constitute valid, legally binding and (subject to general equitable principles,
and laws relating to insolvency, liquidation, reorganization and other laws of general application relating to creditors’ rights or claims or to laws of prescription or the concepts of materiality, reasonableness, good faith and fair dealing)
enforceable obligations of the Issuer. 
  
 (f) No Defaults.
On the Closing Date, there exists no Event of Default nor any event which, had the Notes already been issued, would constitute a Default or an Event of Default. 
  

(g) No Encumbrances. On the Closing Date, subject to the Security Interests created in favor of the Trustee and except for Permitted
Encumbrances, there exists no Encumbrance over the assets of the Issuer which ranks prior to or pari passu with the obligation to make payments on the Notes. 
  
 (h) No Consents. All consents, approvals, authorizations or other orders of all regulatory authorities required (excluding any required by the
other parties to the Related Documents) for or in connection with the execution and performance of the Related Documents by the Issuer and the issuance and performance of the Notes and the offering of the Notes by the Issuer have been obtained and
are in full force and effect and are not contingent upon fulfillment of any condition. 
  
 (i) No Litigation. There is no action, suit, investigation or proceeding pending against, or to the knowledge of the Issuer, threatened against, the Issuer before any court or arbitrator or any governmental
body, agency or official which in any manner challenges or seeks to prevent, enjoin, alter or materially delay the transactions contemplated by this Indenture (including the Exhibits and Schedules attached hereto) and the Related Documents to which
the Issuer is a party. 
  
 (j) Subsidiaries. The Issuer has
no subsidiaries. 
  
 (k) Ownership. The Issuer is the
beneficial owner of the Royalty Rights, free and clear of any Encumbrances other than Permitted Encumbrances. 
  
 (l) No Filings. Under the laws of Delaware and New York (including U.S. federal law) in force at the date hereof, it is not necessary or desirable
that this Indenture or any Related Document (other than evidences and perfection of the Security Interests) be filed, recorded or enrolled by the Issuer with any court or other governmental authority in any such jurisdictions or that any stamp,
registration or similar tax be paid by the Issuer on or in relation to this Indenture or any of the other Related Documents (other than (i) the filing of the Indenture and any of the Related Documents with the Securities and Exchange Commission by
NPS in order to comply with its obligations under federal securities laws and (ii) filings of Uniform Commercial Code financing statements and the various consents and agreements, if any, pursuant hereto). 
  

 43 

 (m) Other Representations. The representations and warranties made by the Issuer in any of the
other Related Documents to which it is a party are true and accurate as of the date made. 
  
 Section 5.02 Covenants. The Issuer covenants with the Trustee that, so long as any Notes are Outstanding, it will perform each of the following covenants and not engage in any activity prohibited by this
Indenture without the prior written consent of the Trustee (acting at the direction of the holders of Notes representing a majority in principal amount of the Notes) authorizing the Issuer not to perform any such covenants or to engage in any such
activity prohibited by this Indenture, in each case on such terms and conditions, if any, as shall be specified in such prior written consent: 
  
 (a) No Release of Obligations. Except as expressly permitted by this Indenture, the Issuer shall not take any action, whether orally or in writing,
which would amend, modify, supplement, restate, cancel or terminate or discharge or prejudice the validity or effectiveness of this Indenture, the Pledge Agreement or the Purchase and Sale Agreement, or permit any party to any such document to be
released from such obligations. 
  
 (b) Limitation on
Restricted Payments. The Issuer shall not, directly or indirectly, (i) declare or pay any dividend or make any distribution on its Stock, whether in cash, property, securities or a combination thereof, to NPS or any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership of its Stock; (ii) purchase, redeem, retire or otherwise acquire for value any shares of Stock of the Issuer; (iii) make any payment of principal, interest or Premium, if any, on the
Notes or make any voluntary or optional repurchase, defeasance or other acquisition or retirement for value of Indebtedness of the Issuer other than in accordance with the Notes and this Indenture; or (iv) make any investments (other than Eligible
Investments and investments permitted under Section 5.02(f) hereof). The term “investment” for purposes of the above restriction shall mean any loan or advance to a Person, any purchase or other acquisition of any beneficial
interest, capital stock, warrants, rights, options, obligations or other securities of such Person, any capital contribution to such Person or any other investment in such Person. 
  
 (c) Encumbrances. The Issuer shall not (and shall not consent to NPS taking any action that would) create, incur,
assume or suffer to exist any Encumbrance over or with respect to any of the Issuer’s assets, other than (i) any Permitted Encumbrance, or (ii) any security interest created or required to be created hereunder, including in connection with the
issuance of any Refinancing Notes and Class B Notes. 
  
 (d)
Limitation on Indebtedness. The Issuer shall not incur, create, issue, assume, guarantee or otherwise become liable for or with respect to, or become responsible for, the payment of, contingently or otherwise, whether present or future (in
any such case, to “incur”), Indebtedness, provided, however, that the Issuer may incur Indebtedness in respect of the Class A Notes issued on the Closing Date and of any Class B Notes and Refinancing Notes issued in
accordance with this Indenture. 
  
 (e) Limitation on
Consolidation, Merger and Transfer of Assets. The Issuer shall not consolidate with, merge with or into, or sell, convey, transfer, lease or otherwise dispose of the Royalty Rights or all or any material portion of its other property and assets
to, any other Person, or permit any other Person to merge with or into the Issuer. 
  
 (f) Limitation on the Issuance, Delivery and Sale of Capital Stock. The Issuer shall not, directly or indirectly, issue, deliver or sell, or consent to issue, deliver or sell any actual, contingent, future or
executory membership interests, limited liability company interests, beneficial interests or other equity or ownership interests (however designated, whether voting or non-voting), except for the pledge of its Stock by NPS to the Trustee for the
benefit of the Noteholders pursuant to the Pledge Agreement and except for any additional Stock issued to NPS, provided that such Stock is pledged to the Trustee pursuant to the Pledge Agreement and provided further that the Issuer shall not accept
any capital contributions from NPS after the Closing Date except for contributions of funds deposited into the Capital Account, which may be used only as provided in Section 3.01(h). 
  
 (g) Limitation on Engaging in Business Activities. Except as otherwise provided in the LLC Operating Agreement, the
Issuer shall not engage in any business or activity other than purchasing, holding and pledging the Royalty Rights, collecting the Royalty Payments, issuing the Notes, and entering into the Hedge Agreement and the other activities described or
referred to in the Private Placement Memorandum, including the acquisition and exploitation of the Licensed Technology, if applicable. 
  

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 (h) Limitation on Transactions with Affiliates. The Issuer shall not, directly or indirectly,
enter into, renew or extend any transaction (including, without limitation, the purchase, sale, lease or exchange of property or assets, or the rendering of any service) with any Affiliate of the Issuer, except upon fair and reasonable terms no less
favorable to the Issuer than could be obtained, at the time of such transaction or at the time of the execution of the agreement providing therefor, in a comparable arm’s-length transaction with a Person that is not such an Affiliate.

  
 (i) Bankruptcy and Insolvency; Corporate Governance.
The Issuer shall promptly provide the Trustee with written notice of the institution of any proceeding by or against the Issuer seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other
similar official for it or for any substantial part of its property. The Issuer shall not take any action to waive, repeal, amend, vary, supplement or otherwise modify its organizational documents in a manner that would adversely affect the rights,
privileges or preferences of any Holder of the Notes, as determined by the Trustee. The Issuer shall not, without an affirmative written Board Resolution of all of the Managers of the Issuer, including the Independent Manager, take any action to
waive, repeal, amend, vary, supplement or otherwise modify any provision of the LLC Operating Agreement that requires unanimous written consent of the Board. 
  
 (j) Payment of Principal, Premium, if any, and Interest. The Issuer shall duly and punctually pay the principal, Premium, if any, and interest on
the Notes in accordance with the terms of this Indenture and the Notes; provided, that the Issuer shall be in compliance with this covenant if it pays in full by the next succeeding Payment Date any interest on the Class A Notes that became
due and was not paid on any Payment Date (including Additional Interest thereon). 
  
 (k) Limitation on Employees. The Issuer shall not employ any employees other than as required by any provisions of local law or as contemplated by the LLC Operating Agreement; provided that the members,
Managers and Service Providers shall not be deemed to be employees for purposes of this Section 5.02(k). 
  
 Section 5.03 Reports by the Issuer. (a) The Issuer shall furnish to the Trustee, within 120 days after the end of each fiscal year, a brief
certificate from the principal executive officer, principal accounting officer or principal financial officer of the Servicer, as applicable, as to his or her knowledge of the Issuer’s compliance with all conditions and covenants under this
Indenture (it being understood that for purposes of this Section 5.03, such compliance shall be determined without regard to any period of grace or requirement of notice provided under this Indenture but shall reflect any interest paid on the Class
A Notes by the next succeeding Payment Date as contemplated by the proviso to Section 5.02(j)). 
  
 (b) The Issuer shall deliver notice to the Trustee of the occurrence of (i) any Default or Event of Default under this Indenture and (ii) any of the
events described in Section 6.4(d) of the Purchase and Sale Agreement promptly and in any event within five (5) Business Days of a Manager of the Issuer becoming aware of such Default, Event of Default, event or situation. 
  
 (c) The Issuer shall deliver to the Trustee copies of all materials that the
Issuer receives from NPS pursuant to Section 6.4(a), (b) and (c) of the Purchase and Sale Agreement promptly and in any event within five (5) Business Days of the receipt of such materials. 
  
 ARTICLE VI 
  
 THE TRUSTEE 
  
 Section 6.01 Acceptance of Trusts and Duties. Except during the continuance of an Event of Default, the Trustee undertakes to perform such duties
and only such duties as are specifically set forth in the Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee. The duties and responsibilities of the Trustee shall be as provided by the Trust
Indenture Act and as set forth herein. The Trustee accepts the trusts hereby created and applicable to it and agrees to perform the same but only upon the terms of this Indenture and the Trust Indenture Act and agrees to receive and disburse all
moneys received by it in accordance 

  

 45 

 
with the terms hereof. The Trustee, in its individual capacity and as Trustee, acknowledges and agrees that the Confidential Information includes
confidential information of Amgen and is subject to the confidentiality provisions of this Indenture, including the limitations on transfers of the Notes and Beneficial Interests and on sales of the Collateral, and that Amgen is an express third
party beneficiary of such confidentiality provisions. The Trustee in its individual capacity shall not be answerable or accountable under any circumstances, except for its own willful misconduct or negligence or breach of any of its representations
or warranties set forth herein and the Trustee shall not be liable for any action or inaction of the Issuer or any other parties to any of the Related Documents. Any amounts received by or due to the Trustee under this Indenture, including, without
limitation, the fees and out-of-pocket expenses of the Trustee shall be Expenses of the Issuer. 
  
 Section 6.02 Absence of Duties. The Trustee, upon written request, shall furnish to any Noteholder, promptly upon receipt thereof, duplicates or
copies of all reports, Notices, requests, demands, certificates, financial statements and other instruments furnished to the Trustee under this Indenture. 
  
 Section 6.03 Representations or Warranties. The Trustee does not make and shall not be deemed to have made any representation or warranty as to the
validity, legality or enforceability of this Indenture, the Notes or any other document or instrument or as to the correctness of any statement contained in any thereof, except that the Trustee in its individual capacity hereby represents and
warrants (i) that each such specified document to which it is a party has been or will be duly executed and delivered by one of its officers who is and will be duly authorized to execute and deliver such document on its behalf, and (ii) this
Indenture is the legal, valid and binding obligation of US Bank, enforceable against US Bank in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting
creditors’ rights generally. The Trustee also represents and warrants that it is not in the business of developing, manufacturing or marketing pharmaceutical or diagnostic products and that it is not an Affiliate of any Person who is in such
business. 
  
 Section 6.04 Reliance; Agents; Advice of
Counsel. The Trustee shall incur no liability to anyone acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed
by it to be signed by the proper party or parties. The Trustee may accept a copy of a resolution of, in the case of the Issuer, a Manager and, in the case of any other party to any Related Document, the governing body of such Person, certified in an
accompanying Officer’s Certificate as duly adopted and in full force and effect, as conclusive evidence that such resolution has been duly adopted and that the same is in full force and effect. As to any fact or matter the manner of
ascertainment of which is not specifically described herein, the Trustee shall be entitled to receive and may for all purposes hereof conclusively rely on a certificate, signed by an officer of any duly authorized Person, as to such fact or matter,
and such certificate shall constitute full protection to the Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon. To the extent not otherwise specifically provided herein, the Trustee shall assume, and shall
be fully protected in assuming, that the Issuer is authorized by its constitutional documents to enter into this Indenture and to take all action permitted to be taken by it pursuant to the provisions hereof, and shall not inquire into the
authorization of the Issuer with respect thereto. To the extent not otherwise specifically provided herein, the Trustee shall furnish to the Servicer upon written request such information and copies of such documents as the Trustee may have and as
are necessary for the Servicer to perform its duties under Articles II and III hereof or otherwise. 
  
 The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within its rights or powers or
for any action it takes or omits to take in accordance with the direction of the Holders in accordance with Section 4.12 hereof relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture. 
  
 The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the Trustee shall not be responsible
for any misconduct or negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care by it hereunder. 
  
 The Trustee may consult with counsel as to any matter relating to this Indenture and any Opinion of Counsel or any advice of
such counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel. 
  

 46 

 The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this
Indenture, or to institute, conduct or defend any litigation hereunder or in relation hereto, at the request, order or direction of any of the Holders, pursuant to the provisions of this Indenture, unless such Holders shall have offered to the
Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby. 
  
 The Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it, and none of the
provisions contained in this Indenture shall in any event require the Trustee to perform, or be responsible or liable for the manner of performance of, any obligations of the Issuer or the Servicer under this Indenture or any of the Related
Documents. 
  
 The Trustee shall not be liable for any Losses or
Taxes (except for Taxes relating to any compensation, fees or commissions of any entity acting in its capacity as Trustee hereunder) or in connection with the selection of Eligible Investments or for any investment losses resulting from Eligible
Investments. 
  
 When the Trustee incurs expenses or renders
services in connection with an Event of Default specified in Section 4.01(e) or 4.01(f) hereof, such expenses (including the fees and expenses of its counsel) and the compensation for such services are intended to constitute expenses of
administration under any bankruptcy law or law relating to creditors’ rights generally. 
  
 The Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer of the Trustee obtains actual knowledge of such event or the Trustee receives written notice of such event from the
Issuer, the Servicer or Noteholders owning Notes aggregating not less than 10% of the Outstanding Principal Balance of the Notes. 
  
 The Trustee shall have no duty to monitor the performance of the Issuer, the Servicer or any other party to the Related Documents, nor shall it have any
liability in connection with the malfeasance or nonfeasance by such parties. 
  
 Section 6.05 Not Acting in Individual Capacity. The Trustee acts hereunder solely as trustee unless otherwise expressly provided; and all Persons, other than the Noteholders to the extent expressly provided in
this Indenture, having any claim against the Trustee by reason of the transactions contemplated hereby shall look, subject to the lien and priorities of payment as herein provided, only to the property of the Issuer for payment or satisfaction
thereof. 
  
 Section 6.06 Compensation of Trustee. The
Trustee agrees that it shall have no right against the Noteholders or, except as provided in Section 3.07(a) hereof, the property of the Issuer, for any fee as compensation for its services hereunder. The Issuer shall pay to the Trustee from time to
time such compensation as is agreed between the two parties. The compensation shall be paid to the Trustee as provided in Sections 3.05(a) and 3.07(a) 
  
 Section 6.07 Notice of Defaults. As promptly as practicable after, and in any event within 30 days after, the occurrence of any Default hereunder,
the Trustee shall transmit by mail to the Issuer and the Noteholders of the related class in accordance with Section 313(c) of the Trust Indenture Act, notice of such Default hereunder actually known to a Responsible Officer of the Trustee, unless
such Default shall have been cured or waived; provided, however, that, except in the case of a Default on the payment of the interest, principal, or Premium, if any, on any Note, the Trustee shall be fully protected in withholding such notice if and
so long as a trust committee of Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Noteholders of the related class. 
  
 Section 6.08 May Hold Notes. The Trustee, any Paying Agent, the
Registrar or any of their Affiliates or any other agent in their respective individual or any other capacity, may become the owner or pledgee of the Notes and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with
the Issuer with the same rights it would have if it were not the Trustee, Paying Agent, Registrar or such other agent. 
  
 Section 6.09 Corporate Trustee Required; Eligibility. There shall at all times be an Trustee which shall be eligible to act as a trustee under
Section 310(a) of the Trust Indenture Act and shall meet the Eligibility Requirements. If such corporation publishes reports of conditions at least annually, pursuant to law or to the 
  

 47 

 requirements of any federal, state, territorial or District of Columbia supervising or examining authority, then for the
purposes of this Section 6.09, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of conditions so published. 
  
 In case at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section 6.09 to act as Trustee, the Trustee shall resign immediately as Trustee in the manner and with the effect specified in Section 7.01 hereof. 
  
 Section 6.10 Reports by the Trustee. Within 60 days after May 15 of each year commencing with the first full year
following the issuance of any class of Notes, the Trustee shall, if required by Section 313(a) of the Trust Indenture Act, transmit to the Noteholders of each class, as provided in Section 313(c) of the Trust Indenture Act, a brief report
describing, among other things, any changes in eligibility and qualifications of the Trustee and any issuance of Class B Notes. 
  
 Section 6.11 Calculation Agent. The Trustee shall act as the Calculation Agent hereunder. Subject to the approval of the Issuer and Noteholders
holding a majority of the Outstanding Principal Balance of the Notes, another Person may become the Calculation Agent on such terms as shall be approved by them. 
  
 Section 6.12 Pledge Agreement. The Trustee shall enter into the Pledge Agreement with NPS on the Closing Date and
shall hold the collateral pledged thereunder as part of the Indenture Estate. The provisions of this Article VI shall apply to the Trustee’s exercise of rights and remedies under the Pledge Agreement, mutatis mutandis. 
  
 ARTICLE VII 
  
 SUCCESSOR TRUSTEES 
  
 Section 7.01 Resignation and Removal of Trustee. The Trustee may resign as to all or any of the classes of Notes at any time without cause by
giving at least 30 days’ prior written notice to the Issuer, the Servicer and the Holders. Holders of a majority of the Outstanding Principal Balance of any class of Notes may at any time remove the Trustee as to such class without cause, with
the consent of the Issuer if no Event of Default shall have occurred and be continuing, by an instrument in writing delivered to the Issuer, the Servicer and the Trustee being removed. In addition, the Issuer may remove the Trustee as to any class
of Notes if: (i) such Trustee fails to comply with Section 310 of the Trust Indenture Act after written request therefor by the Issuer or the Noteholders of the related class who have been bona fide Noteholders for at least six months, (ii) such
Trustee fails to comply with Section 7.02(d) or any other provision hereof, (iii) such Trustee is adjudged a bankrupt or an insolvent, (iv) a receiver or public officer takes charge of such Trustee or its property or (v) such Trustee becomes
incapable of acting. References to the Trustee in this Indenture include any successor Trustee as to all or any of the classes of Notes appointed in accordance with this Article VII. Any resignation or removal of the Trustee pursuant to this Section
7.01 shall not be effective until a successor Trustee shall have been duly appointed and vested as Trustee pursuant to Section 7.02. 
  
 Section 7.02 Appointment of Successor. (a) In the case of the resignation or removal of the Trustee as to any class of Notes under Section 7.01
hereof, the Issuer shall promptly appoint a successor Trustee as to such class; provided that the Noteholders holding a majority of the Outstanding Principal Balance of such class of Notes may appoint, within one year after such resignation or
removal, a successor Trustee as to such class which may be other than the successor Trustee appointed by the Issuer, and such successor Trustee appointed by the Issuer shall be superseded by the successor Trustee so appointed by the Noteholders. If
a successor Trustee as to any class of Notes shall not have been appointed and accepted its appointment hereunder within 60 days after the Trustee gives notice of resignation as to such class, the retiring Trustee, the Issuer, the Servicer or a
majority of the Outstanding Principal Balance of such class of Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee as to such class. Any successor Trustee so appointed by such court shall immediately and
without further act be superseded by any successor Trustee appointed as provided in the first sentence of this paragraph within one year from the date of the appointment by such court. 
  
 (b) Any successor Trustee as to any class of Notes, however appointed, shall execute and deliver to the Issuer, the Servicer
and the predecessor Trustee as to such class an instrument accepting such 
  

 48 

 appointment, and thereupon such successor Trustee, without further act, shall become vested with all the estates,
properties, rights, powers, duties and trusts of such predecessor Trustee hereunder in the trusts hereunder applicable to it with like effect as if originally named the Trustee as to such class herein; provided that, upon the written request of such
successor Trustee, such predecessor Trustee shall, upon payment of all amounts due and owing to it, execute and deliver an instrument transferring to such successor Trustee, upon the trusts herein expressed applicable to it, all the estates,
properties, rights, powers and trusts of such predecessor Trustee, and such predecessor Trustee shall duly assign, transfer, deliver and pay over to such successor Trustee all moneys or other property then held by such predecessor Trustee hereunder
solely for the benefit of such class of Notes. 
  
 (c) If a
successor Trustee is appointed with respect to one or more (but not all) classes of the Notes, the Issuer, the predecessor Trustee and each successor Trustee with respect to each class of Notes shall execute and deliver an indenture supplemental
hereto which shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect to the classes of Notes as to which the predecessor Trustee is not
retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the Notes hereunder by more than one
Trustee. 
  
 (d) Each Trustee shall be an Eligible Institution and
shall meet the Eligibility Requirements, if there be such an institution willing, able and legally qualified to perform the duties of an Trustee hereunder. 
  
 (e) Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any corporation to which substantially all the business of the Trustee may be transferred, shall, subject to the terms of paragraph (c) of this Section 7.02, be the Trustee under
this Indenture without further act. 
  
 ARTICLE VIII 

  
 INDEMNITY 
  
 Section 8.01 Indemnity. The Issuer shall indemnify the Trustee (and
its officers, directors, employees and agents) for, and hold it harmless against, any loss, liability or expense incurred by it without bad faith, gross negligence or willful misconduct on its part in connection with the acceptance or administration
of this Indenture and its duties under this Indenture and the Notes, including the costs and expenses of defending itself against any claim or liability and of complying with any process served upon it or any of its officers in connection with the
exercise or performance of any of its powers or duties and hold it harmless against, any loss, liability or reasonable expense incurred without bad faith, gross negligence or willful misconduct on its part, arising out of or in connection with
actions taken or omitted to be taken in reliance on any Officer’s Certificate furnished hereunder, or the failure to furnish any such Officer’s Certificate required to be furnished hereunder. The Trustee shall notify the Issuer promptly of
any claim asserted against the Trustee for which it may seek indemnity; provided, however, that failure to provide such notice shall not invalidate any right to indemnity hereunder. The Issuer shall defend the claim and the Trustee shall cooperate
in the defense. The Trustee may have separate counsel and the Issuer shall pay the reasonable fees and expenses of such counsel. The Issuer need not pay for any settlements made without its consent; provided that such consent shall not be
unreasonably withheld or delayed. The Issuer need not reimburse any expense or provide any indemnity against any loss, liability or expense incurred by the Trustee through bad faith, gross negligence or willful misconduct. 
  
 Section 8.02 Noteholders’ Indemnity. The Trustee shall be
entitled, subject to such Trustee’s duty during a Default to act with the required standard of care, to be indemnified by the Noteholders of any class of Notes before proceeding to exercise any right or power under this Indenture at the request
or direction of such Holders. 
  
 Section 8.03 Survival.
The provisions of Sections 8.01 and 8.02 hereof shall survive the termination of this Indenture or the earlier resignation or removal of the Trustee. 
  
 ARTICLE IX 
  
 MODIFICATION 
  
 Section 9.01 Modification with Consent of Holders. With the consent of Holders of a majority of the Outstanding Principal Balance of the Notes on the date of any vote of such Holders (voting as a single class),
the 
  

 49 

 Issuer, when authorized by a Board Resolution, may amend or modify this Indenture or the Notes; provided that, without
the consent of Holders of one hundred percent (100%) of the Outstanding Principal Balance of the class of Notes affected thereby, no such amendment may reduce the percentage of Holders of any such class of Notes required to take or approve any
action hereunder; change the amount or the time of payment of any amount owing or payable with respect to any such class of Notes or change the rate or manner of calculation of interest payable with respect to any such class of Notes; alter or
modify the provisions with respect to the Collateral for the Notes or the manner of payment or the order of priorities in which payments or distributions hereunder will be made as between the Holders of such Notes and the Issuer; or consent to any
assignment of the Issuer’s rights to a party other than the Trustee for the benefit of the Noteholders (each, a “Basic Terms Modification”); provided further, that the Holders of a majority of the Outstanding Principal Balance
of the Senior Class of Notes, by written notice to the Trustee, may waive any Default or Event of Default pursuant to Section 4.05 hereof. 
  
 It shall not be necessary for the consent of the Holders under this Section 9.01 to approve the particular form of any proposed amendment or waiver, but
it shall be sufficient if such consent approves the substance thereof. Any such modification approved by the required Holders of any class of Notes will be binding on the Holders of the relevant class of Notes and each party to the Indenture.

  
 After an amendment under this Section 9.01 becomes effective,
the Issuer shall mail to the Holders a notice briefly describing such amendment. Any failure of the Issuer to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amendment. 
  
 After an amendment under this Section 9.01 becomes effective, it shall bind
every Holder, whether or not notation thereof is made on any Note held by such Holder. 
  
 Section 9.02 Modification Without Consent of Holder. The Trustee may agree, without the consent of any Noteholder: 
  
 (a) To evidence the succession of a successor as the Trustee, the removal of the Trustee or the appointment of any separate or additional trustee or
trustees and to define the rights, powers, duties and obligations conferred upon any such separate trustee or trustees or co-trustees; 
  
 (b) To correct, confirm or amplify the description of any property at any time subject to the lien of this Indenture or to convey, transfer, assign,
mortgage or pledge any property to or with the Trustee; 
  
 (c) To
cure any ambiguity in, correct or supplement any defective or inconsistent provision of, or add to or modify any other provisions and agreements in, the Indenture or any other Related Document, in any manner that will not, in the judgment of the
Trustee, materially adversely affect the interests of the Holders of the Notes; 
  
 (d) To grant or confer upon the Trustee for the benefit of the Holders of the Notes any additional rights, remedies, powers, authority or security which may be lawfully granted or conferred and which are not contrary
or inconsistent with the Indenture; 
  
 (e) To add to or modify
the covenants or agreements to be observed by the Issuer, which are not contrary to the Indenture, to add Events of Default for the benefit of the Holders of the Notes; 
  
 (f) To comply with the requirements of the SEC or any regulatory body or any applicable law, rules or regulations; or

  
 (g) To effect any indenture supplemental to the Indenture or
any other amendment, modification, supplement, waiver or consent with respect to the Indenture or any other Related Document; provided, that such supplemental indenture, amendment, modification, supplement, waiver or consent will not
adversely affect the interests of the Holders of the Notes in any material respect as confirmed in an Officer’s Certificate of the Issuer. 
  
 Section 9.03 Subordination and Priority of Payments. The subordination provisions contained in Section 3.07 and Article X hereof may not be amended
or modified without the consent of each Noteholder of each class affected thereby. In no event shall the provisions set forth in Section 3.07 relating to the priority and payment of Expenses be amended or modified. 
  

 50 

 Section 9.04 Execution of Amendments by Trustee. In executing, or accepting the additional trusts
created by, any amendment or modification to this Indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, an
Officer’s Certificate and an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such amendment which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
  
 Section 9.05 Conformity with Trust Indenture Act. Every indenture supplemental hereto pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act as then in effect. 
  
 ARTICLE X 
  
 SUBORDINATION 
  
 Section 10.01 Subordination of the Notes. (a) Each of the Issuer and the Trustee (on behalf of the Holders of each class of Notes) covenants and
agrees, and each Holder, by its acceptance of a Note, covenants and agrees, that the Notes of each class will be issued subject to the provisions of this Article X; and each Holder, by its acceptance of a Note, agrees that all amounts payable on any
Note will, to the extent and in the manner set forth in this Article X and Section 3.07 hereof, be subordinated in right of payment to the prior payment in full of all Expenses payable to the Service Providers pursuant to this Indenture and the
Related Documents. In addition, each Holder of a Class B Note, by its acceptance of a Class B Note, agrees that all amounts payable on any Class B Note will, to the extent and in the manner set forth in this Article X and Section 3.07 hereof, be
subordinated in right of payment to the payment in full of the Class A Notes. Any claim to payment so stated to be subordinated is referred to as a “Subordinated Claim”; each claim to payment to which another claim to payment is a
Subordinated Claim is referred to as a “Senior Claim” with respect to such Subordinated Claim. 
  
 (b) If prior to the payment in full of all Senior Claims then due and payable, the Trustee or any Holder of a Subordinated Claim shall have received any
payment or distribution in respect of such Subordinated Claim in excess of the amount to which such Holder was then entitled under Section 3.07 hereof, then such payment or distribution shall be received and held in trust by such Person and paid
over or delivered to the Trustee for application as provided in such Section 3.07. 
  
 (c) If any Service Provider, the Trustee or Holder of any Senior Claim receives any payment in respect of any Senior Claim which is subsequently invalidated, declared preferential, set aside and/or required to be
repaid to a trustee, receiver or other party, then, to the extent such payment is so invalidated, declared preferential, set aside and/or required to be repaid, such Senior Claim shall be revived and continue in full force and effect, and shall be
entitled to the benefits of this Article X, all as if such payment had not been received. 
  
 (d) The Trustee (on its own behalf and on behalf of the Holders) and the Issuer each confirm that the payment priorities specified in Section 3.07 hereof shall apply in all circumstances. 
  
 (e) Each Holder, by its acceptance of a Note, authorizes and expressly
directs the Trustee on its behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this Article X, and appoints the Trustee its attorney-in-fact for such purposes, including, in the event of any
dissolution, winding up, liquidation or reorganization of the Issuer (whether in bankruptcy, insolvency, receivership, reorganization or similar proceedings or upon an assignment for the benefit of creditors or otherwise) any actions tending towards
liquidation of the property and assets of the Issuer or the filing of a claim for the unpaid balance of its Notes in the form required in those proceedings. 
  
 (f) If payment on the Notes is accelerated as a result of an Event of Default, the Issuer shall promptly notify the holders of the Senior Claims of such
acceleration. 
  
 (g) After all Senior Claims are paid in full and
until the Subordinated Claims are paid in full, and to the extent that such Senior Claims shall have been paid with funds that would, but for the subordination pursuant to this Article X, have been paid to and retained by such holders of
Subordinated Claims, the holders of Subordinated Claims shall be subrogated to the rights of holders of Senior Claims to receive payments applicable 
  

 51 

 to Senior Claims. A payment made under this Article X to holders of Senior Claims which otherwise would have been made to
the holders of Subordinated Claims is not, as between the Issuer and the holders of Subordinated Claims, a payment by the Issuer. 
  
 (h) No right of any holder of any Senior Claim to enforce the subordination of any Subordinated Claim shall be impaired by an act or failure to act by the
Issuer or the Trustee or by any failure by either the Issuer or the Trustee to comply with this Indenture. 
  
 (i) Each Holder by accepting a Note acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a
consideration to each holder of any Senior Claim, whether such Senior Claim was created or acquired before or after the issuance of such Holder’s claim, to acquire and continue to hold such Senior Claim and such holder of any Senior Claim shall
be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold such Senior Claim. Each holder of a Subordinated Claim agrees to comply with the provisions of Section 4.12 hereof. 
  
 ARTICLE XI 
  
 DISCHARGE OF INDENTURE 
  
 Section 11.01 Discharge of Liability on the Notes. (a) When (i) the Issuer delivers to the Trustee all Outstanding Notes (other than Notes replaced
pursuant to Section 2.08 hereof) for cancellation or (ii) all Outstanding Notes have become due and payable, whether at maturity or as a result of the mailing of a notice of an Optional Redemption pursuant to Section 3.09(a) hereof or any other
Redemption pursuant to Section 3.09(c) hereof and the Issuer irrevocably deposits in the Redemption Account funds sufficient to pay at maturity or upon redemption all Outstanding Notes, including interest thereon to maturity or the Redemption Date
(other than Notes replaced pursuant to Section 2.08), and if in either case the Issuer pays all other sums payable hereunder by the Issuer, then this Indenture shall, subject to Section 11.01(b), cease to be of further effect. The Trustee shall
acknowledge satisfaction and discharge of this Indenture on demand of the Issuer accompanied by an Officer’s Certificate and an Opinion of Counsel, at the cost and expense of the Issuer, to the effect that any conditions precedent to a
discharge of this Indenture have been met. 
  
 (b) Notwithstanding
clause (a) above, the Issuer’s obligations in Section 8.01 and the Trustee’s obligations in Section 12.14 shall survive the satisfaction and discharge of this Indenture. 
  
 ARTICLE XII 
  
 MISCELLANEOUS 
  
 Section 12.01 Right of Trustee to Perform. If the Issuer for any reason fails to observe or punctually to perform any of its obligations to the
Trustee, whether under this Indenture or any of the other Related Documents or otherwise, the Trustee shall have power (but shall have no obligation), on behalf of or in the name of the Issuer or otherwise, to perform such obligations and to take
any steps which the Trustee may, in its absolute discretion, consider appropriate with a view to remedying, or mitigating the consequences of, such failure by the Issuer; provided that no exercise or failure to exercise this power by the Trustee
shall in any way prejudice the Trustee’s other rights under this Indenture or any of the other Related Documents. 
  
 Section 12.02 Waiver. Any waiver by any party of any provision of this Indenture or any right, remedy or option hereunder shall only prevent and
estop such party from thereafter enforcing such provision, right, remedy or option if such waiver is given in writing and only as to the specific instance and for the specific purpose for which such waiver was given. The failure or refusal of any
party hereto to insist in any one or more instances, or in a course of dealing, upon the strict performance of any of the terms or provisions of this Indenture by any party hereto or the partial exercise of any right, remedy or option hereunder
shall not be construed as a waiver or relinquishment of any such term or provision, but the same shall continue in full force and effect. No failure on the part of the Trustee to exercise, and no delay on its part in exercising, any right or remedy
under this Indenture will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies provided in
this Indenture are cumulative and not exclusive of any rights or remedies provided by law. 
  

 52 

 Section 12.03 Severability. In the event that any provision of this Indenture or the application
thereof to any party hereto or to any circumstance or in any jurisdiction governing this Indenture shall, to any extent, be invalid or unenforceable under any applicable statute, regulation or rule of law, then such provision shall be deemed
inoperative to the extent that it is invalid or unenforceable and the remainder of this Indenture, and the application of any such invalid or unenforceable provision to the parties, jurisdictions or circumstances other than to whom or to which it is
held invalid or unenforceable, shall not be affected thereby nor shall the same affect the validity or enforceability of this Indenture. The parties hereto further agree that the holding by any court of competent jurisdiction that any remedy pursued
by the Trustee hereunder is unavailable or unenforceable shall not affect in any way the ability of the Trustee to pursue any other remedy available to it. 
  
 Section 12.04 Restrictions on Exercise of Certain Rights. The Trustee and, during the continuance of a payment
Default with respect to the Senior Class of Notes, the Senior Trustee, in its capacity as trustee of such class and except as otherwise provided in Section 4.04, may sue for recovery or take any other steps for the purpose of recovering any of the
obligations hereunder or any other debts or liabilities whatsoever owing to it by the Issuer. Each of the Noteholders shall at all times be deemed to have agreed by virtue of the acceptance of the Notes that only the Trustee and, during the
continuance of a payment Default with respect to the Senior Class of Notes, the Senior Trustee, in its capacity as trustee and except as provided in Section 4.04, may take any steps for the purpose of procuring the appointment of an administrative
receiver, examiner, receiver or similar officer or the making of an administration order or for instituting any bankruptcy, reorganization, arrangement, insolvency, winding up, liquidation, composition, examination or any like proceedings under the
laws of Delaware. 
  
 Section 12.05 Notices. All notices,
demands, certificates, requests, directions, instructions and communications hereunder (“Notices”) shall be in writing and shall be effective (a) upon receipt when sent through the mails, registered or certified mail, return receipt
requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, or (b) one Business Day after delivery to an overnight courier, or (c) on the date personally delivered to an authorized officer of
the party to which sent, or (d) on the date transmitted by legible telecopier transmission with a confirmation of receipt, or (e) in the case of reports under Article III hereof and any other report which is of a routine nature, on the date
transmitted by electronic mail or sent by first class mail or transmitted by legible telecopier transmission, in all cases addressed to the recipient as follows: 
  
 if to the Issuer, to: 
  
 Cinacalcet Royalty Sub LLC 
 c/o NPS
Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108 
 Attention: General Counsel 
 Facsimile: (801) 583-4961 
  
 with copies to: 
  
 Foley & Lardner LLP 
 3000 K Street, N.W.

 Suite 500 
 Washington, D.C.
20007 
 Attention: Thomas E. Hartman, Esq. 
 Facsimile: (202) 672-5399 
  
 if
to the Servicer, to: 
  
 NPS Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108

 Attention: General Counsel 
 Facsimile: (801) 583-4961 
  

 53 

 if to the Trustee, the Registrar or the Paying Agent, to: 
  
 U.S. Bank National Association 
 Mail Code EP-MN-WS3C 
 60 Livingston Avenue

 St. Paul, Minnesota 55107 
 Attention: Corporate Trust Department 
 Facsimile: (651) 495-8097 
 Telephone: (651) 495-3909 
  
 A copy of each notice given hereunder to any party hereto shall also be given to each of the other parties hereto. Each party hereto may, by notice given in accordance
herewith to each of the other parties hereto, designate any further or different address to which subsequent Notices shall be sent. 
  
 Section 12.06 Assignments. This Indenture shall be a continuing obligation of the Issuer and shall (i) be binding upon the Issuer and its
successors and assigns and (ii) inure to the benefit of and be enforceable by the Trustee, and by its successors, transferees and assigns. The Issuer may not assign any of its obligations under the Indenture, or delegate any of its duties
hereunder. 
  
 Section 12.07 Reserved. 

 
 Section 12.08 Application to Court. The Trustee may at any time
after the service of an Acceleration Notice apply to any court of competent jurisdiction for an order that the terms of this Indenture be carried into execution under the direction of such court and for the appointment of a Receiver of the
Collateral or any part thereof and for any other order in relation to the administration of this Indenture as the Trustee shall deem fit and it may assent to or approve any application to any court of competent jurisdiction made at the instigation
of any of the Noteholders and shall be indemnified by the Issuer against all costs, charges and expenses incurred by it in relation to any such application or proceedings. 
  
 Section 12.09 Governing Law. THIS INDENTURE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 
  
 Section 12.10 Jurisdiction. (a) Each of the parties hereto agrees that the U.S. federal and New York State courts located in The City of New York
shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Indenture and, for such purposes, submits to the jurisdiction of such courts. Each of the
parties hereto waives any objection which it might now or hereafter have to the U.S. federal or New York State courts located in The City of New York being nominated as the forum to hear and determine any suit, action or proceeding, and to settle
any disputes, which may arise out of or in connection with this Indenture and agrees not to claim that any such court is not a convenient or appropriate forum. Each of the parties hereto agrees that the process by which any suit, action or
proceeding is begun may be served on it by being delivered in connection with any suit, action or proceeding in The City of New York to the Person named as the process agent of such party in Exhibit F at the address set out therein or at the
principal New York City office of such process agent, if not the same. 
  
 (b) The submission to the jurisdiction of the courts referred to in Section 12.10(a) shall not (and shall not be construed so as to) limit the right of the Trustee to take proceedings against the Issuer in any other
court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 
  
 (c) Each of the parties hereto hereby consents generally in respect of any
legal action or proceeding arising out of or in connection with this Indenture to the giving of any relief or the issue of any process in connection with such action or proceeding, including the making, enforcement or execution against any property
whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such action or proceeding. 
  
 Section 12.11 Counterparts. This Indenture may be executed in one or more counterparts by the parties hereto, and each such counterpart shall be
considered an original and all such counterparts shall constitute one and the same instrument. 
  

 54 

 Section 12.12 Table of Contents, Headings, Etc. The Table of Contents and headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms and provisions hereof. 
  
 Section 12.13 Trust Indenture Act. This Indenture shall not be
qualified under the Trust Indenture Act and shall not be subject to the provisions of the Trust Indenture Act, although it shall incorporate such provisions for ease of reference. 
  
 Section 12.14 Confidential Information. The Trustee, in its individual capacity and as Trustee, agrees and
acknowledges that all Confidential Information provided to the Trustee by NPS or Amgen is considered to be proprietary and confidential information of NPS or Amgen, as applicable. The Trustee agrees to take all reasonable precautions necessary to
keep the Confidential Information confidential, which precautions shall be no less stringent than those which the Trustee employs to protect its own confidential information. The Trustee shall not disclose to any third party other than as set forth
below, and shall not use for any purpose other than the exercise of the Trustee’s rights and the performance of its obligations under this Indenture, any Confidential Information of Amgen without the prior written consent of Amgen. The Trustee
shall limit access to Confidential Information received hereunder to (i) its directors, officers and employees, and (ii) its legal advisors, to each of whom disclosure of Confidential Information is necessary for the purposes described above;
provided, however, that in each case such party has expressly agreed to maintain such Confidential Information in confidence under terms and conditions substantially identical to the terms of this Section 12.14. 
  
 The Trustee agrees that Amgen has no responsibility whatsoever for any
reliance on Confidential Information by the Trustee or by any person to whom the Confidential Information is disclosed in connection with this Indenture, whether related to the purposes described above or otherwise. Without limiting the generality
of the foregoing, the Trustee agrees that Amgen makes no representation or warranty whatsoever to it with respect to Confidential Information or its suitability for such purposes. The Trustee further agrees that it shall not acquire any rights
against Amgen or any employee, officer, director, representative or agent of Amgen (together with Amgen, “Amgen Parties”) as a result of the disclosure of Confidential Information to the Trustee or to any Noteholder or Beneficial
Holder and that no Amgen Party has any duty, responsibility, liability or obligation to any Person as a result of any such disclosure. 
  
 In the event the Trustee is required to disclose any Confidential Information received hereunder in order to comply with any laws, regulations or court
orders, it may disclose such Confidential Information only to the extent necessary for such compliance, provided, however, that it shall give Amgen reasonable advance written notice of any such court proceeding in which such disclosure may be
required pursuant to a court order so as to afford Amgen a full and fair opportunity to oppose the issuance of such order and to appeal therefrom and shall cooperate reasonably with Amgen in opposing such order and in securing confidential treatment
of any Confidential Information to be disclosed and/or obtaining a protective order narrowing the scope of such disclosure. 
  
 The Trustee agrees that Amgen is an express third-party beneficiary of the provisions of this Section 12.14. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 55 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the date
first written above. 
  

			
	 CINACALCET ROYALTY SUB LLC,
 as Issuer

		
	 By:
	 	 /s/ Hunter Jackson

	 Name:
	 	 Hunter Jackson

	 Title:
	 	 President

	
	 U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Trustee

		
	 By:
	 	 /s/ Lori-Anne Rosenberg

	 Name:
	 	 Lori-Anne Rosenberg

	 Title:
	 	 Vice President

 EXHIBIT A 
  
 FORM OF CLASS A NOTE 
  
 Due March 30, 2017 
  

			
	No.                     	 	CUSIP:                     
		
	$            	 	 

  
 CINACALCET ROYALTY SUB
LLC, a limited liability company organized under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum set
forth on Schedule I on or before March 30, 2017 (the “Final Maturity Date”) and to pay interest quarterly in arrears on the Outstanding Principal Balance hereof at a rate per annum equal to 8.0% (the “Stated Interest
Rate”), from the date hereof until the Outstanding Principal Balance hereof is paid or duly provided for, which interest shall be due on each Payment Date and payable not later than the immediately succeeding Payment Date (together with
Additional Interest on the amount of unpaid interest from the Payment Date on which it was due until the date on which it is paid, compounded quarterly on each Payment Date). If a B&W Payment or Amgen Payment is made, whether by the Trustee
pursuant to Section 3.08 of the Indenture or by Amgen as a payment or offset to discharge a liability of NPS to Amgen, the Stated Interest Rate shall be increased by 0.75% during the period beginning on the first day any such B&W Payment or an
Amgen Payment is outstanding and ending on the date on which NPS has reimbursed the entire amount of such B&W Payment or Amgen Payment and all other B&W Payments and Amgen Payments together with the entire amount of the increase in the
Stated Interest Rate imposed by this sentence. Interest on this Class A Note in each Interest Accrual Period shall be calculated on the basis of a 360-day year and the actual number of days elapsed in such Interest Accrual Period. 
  
 This Class A Note is a duly authorized issue of Notes of the Issuer,
designated as its “Secured 8% Notes, due 2017”, issued under the Indenture dated as of December 22, 2004 (as amended or supplemented from time to time, the “Indenture”), between the Issuer and U.S. Bank National
Association, as Trustee (the “Trustee”). The Indenture also provides for the issuance of Class B Notes. All capitalized terms used in this Note and not defined herein shall have the respective meanings assigned to such terms in the
Indenture. Reference is made to the Indenture and all indentures supplemental thereto for a statement of the respective rights and obligations thereunder of the Issuer, the Trustee, the Class A Noteholders and the Class B Noteholders, if any. This
Class A Note is subject to all terms of the Indenture. 
  
 The
Issuer will pay the Outstanding Principal Balance of this Class A Note prior to the Final Maturity Date on the Payment Dates and in the amounts specified in the Indenture, subject to the availability of the Available Collections Amount therefor
after making payments entitled to priority under Section 3.07 of the Indenture. 
  
 The Issuer may redeem all or part of the Outstanding Principal Balance of this Class A Note prior to the Final Maturity Date on the Payment Dates, in the amounts and under the circumstances specified in the Indenture.

  
 Any amount of Premium or interest on this Class A Note that is
not paid when due shall, to the fullest extent permitted by applicable law, bear interest (“Additional Interest”) at a fluctuating interest rate per annum equal to the Stated Rate of Interest from the date when due until such amount
is paid or duly provided for, compounded quarterly and payable on the next succeeding Payment Date, subject to the availability of the Available Collections Amount therefor after making payments entitled to priority under Section 3.07 of the
Indenture. 
  
 The indebtedness evidenced by the Class A Notes is,
to the extent and in the manner provided in the Indenture, senior in right of payment to the right of payment of the Class B Notes, and this Class A Note is issued subject to such provisions. The maturity of this Class A Note is subject to
acceleration upon the occurrence and during the continuance of the Events of Default specified in the Indenture. 
  
 This Class A Note is and will be secured by the collateral pledged as security therefor as provided in the Indenture. 
  
 Subject to and in accordance with the terms of the Indenture, there will be
distributed quarterly on each Payment Date commencing on March 30, 2005, to the Person in whose name this Class A Note is registered at the 

  

 A-1 

 
close of business on the Record Date with respect to such Payment Date, in the manner specified in Section 3.07 of the Indenture, such Person’s pro rata
share (based on the aggregate percentage of the Outstanding Principal Balance of the Class A Notes held by such Person) of the aggregate amount distributable to all Holders of Class A Notes on such Payment Date. 
  
 All amounts payable in respect of this Class A Note shall be payable in U.S.
dollars in the manner provided in the Indenture to the Holder hereof on the Record Date relating to such payment. The final payment with respect to this Class A Note, however, shall be made only upon presentation and surrender of this Class A Note
by the Noteholder or its agent at the Corporate Trust Office or agency of the Trustee or Paying Agent specified in the notice given by the Trustee or Paying Agent with respect to such final payment. At such time, if any, as this Class A Note is
issued in the form of one or more Definitive Notes, payments on a Payment Date shall be made by check mailed to each Noteholder of such a Definitive Note on the applicable Record Date at its address appearing on the Register maintained with respect
to the Class A Notes. Alternatively, upon application in writing to the Trustee, not later than the applicable Record Date, by a Noteholder, any such payments shall be made by wire transfer to an account designated by such Noteholder at a financial
institution in New York, New York. The final payment with respect to any such Definitive Note, however, shall be made only upon presentation and surrender of such Definitive Note by the Noteholder or its agent at the Corporate Trust Office or agency
of the Trustee or Paying Agent specified in the notice of such final payment given by the Trustee or Paying Agent. Any reduction in the principal amount of this Class A Note (or any one or more predecessor Class A Notes) effected by any payments
made on any Payment Date shall be binding upon all future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer of, in exchange or in lieu of or upon the refinancing of this Class A Note, whether or not noted
hereon. 
  
 The Holder of this Class A Note agrees, by acceptance
hereof, to pay over to the Trustee any money (including principal, Premium and interest) paid to it in respect of this Note in the event that the Trustee, acting in good faith, determines subsequently that such monies were not paid in accordance
with the priority of payment provisions of the Indenture or as a result of any other mistake of fact or law on the part of the Trustee in making such payment. 
  

This Class A Note is issuable only in registered form. A Holder may transfer this Note only by delivery of a written application to the Registrar
stating the name of the proposed transferee, a Confidentiality Agreement duly executed by such transferee and by otherwise complying with the terms of the Indenture. No such transfer shall be effected until, and such transferee shall succeed to the
rights of a Holder only upon, final acceptance and registration of the transfer by the Registrar in the Register. When this Class A Note is presented to the Registrar with a request to register the transfer or to exchange it for an equal principal
amount of Class A Notes of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements for such transactions are met (including, in the case of a transfer, that such Note is duly
endorsed or accompanied by a written instrument of transfer in form satisfactory to the Trustee and Registrar duly executed by the Holder thereof or by an attorney who is authorized in writing to act on behalf of the Holder and that the transferee
has executed and delivered a Confidentiality Agreement to the Issuer). No service charge shall be made for any registration of transfer or exchange of this Class A Note, but the party requesting such new Note or Notes may be required to pay a sum
sufficient to cover any transfer tax or similar governmental charge payable in connection therewith. This Class A Note may not be transferred to any Person engaged in the business of developing, manufacturing or marketing pharmaceutical or
diagnostic products, or any Affiliate of such a Person. 
  
 Prior
to the registration of transfer of this Class A Note, the Issuer and the Trustee may deem and treat the Person in whose name this Class A Note (as of the day of determination or as of such other date as may be specified in the Indenture) is
registered as the absolute owner and Holder hereof for the purpose of receiving payment of all amounts payable with respect to this Class A Note and for all other purposes, and neither the Issuer nor the Trustee shall be affected by notice to the
contrary. 
  
 The Indenture permits the amendment or modification
of the Indenture and the Class A Notes by the Issuer with the consent of the Holders of a majority of the Outstanding Principal Balance of all Notes on the date of any vote of such Holders (voting as a single class); provided that, without the
consent of Holders of one hundred percent (100%) of the Outstanding Principal Balance of the class of Notes affected thereby, no such amendment may (i) reduce the percentage of Holders of any such class of Notes required to take or approve any
action hereunder; (ii) change the amount or the time of payment of any amount owing or payable with respect to any such class of Notes or change the rate or manner of calculation of interest payable with respect to any such class of Notes; (iii)
alter or modify the provisions with respect to the Collateral for the Notes or the manner of payment or the order of priorities 

  

 A-2 

 
in which payments or distributions hereunder will be made as between the Holders of such Notes and the Issuer; or (iv) consent to any assignment of the
Issuer’s rights to a party other than the Trustee for the benefit of the Noteholders (each, a “Basic Terms Modification”). Any such amendment or modification shall be binding on every Holder hereof, whether or not notation
thereof is made upon this Class A Note. The Indenture also permits the Trustee to agree, without the consent of any Noteholder, (a) to any modification (other than a Basic Terms Modification) of, or the waiver or authorization of any breach or
prospective breach of, any provision of any Related Document or of the relevant Notes to correct a manifest error or an error which is of a formal, minor or technical nature or (b) to modify the provisions of the Indenture or the Purchase and Sale
Agreement relating to the timing of movement of monies received among the Accounts by the Trustee. 
  
 The subordination provisions contained in Section 3.07 and Article X of the Indenture may not be amended or modified without the consent of each
Noteholder of the class affected thereby and each Noteholder of the class of Notes ranking senior thereto. 
  
 The Indenture also contains provisions permitting the Holders of Notes representing a majority of the Outstanding Principal Balance of the Senior Class of
Notes, on behalf of the Holders of all of the Class A Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver shall be
conclusive and binding upon all present and future Holders of this Class A Note and of any Class A Note issued upon the registration of transfer of, in exchange or in lieu of or upon the refinancing of this Class A Note, whether or not notation of
such consent or waiver is made upon this Class A Note. 
  
 The
term “Issuer” as used in this Class A Note includes any successor to the Issuer under the Indenture. 
  
 The Issuer is permitted by the Indenture, under certain circumstances, to merge or consolidate, subject to the rights of the Trustee and the Holders of
Class A Notes under the Indenture. 
  
 The Class A Notes are
issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
  
 This Class A Note shall in all respects be governed by, and construed in accordance with, the laws of the State of New York, including all matters of
construction, validity and performance. 
  
 Unless the certificate
of authentication hereon has been executed by the Trustee whose name appears below by manual or facsimile signature, this Class A Note shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 

 

 A-3 

 IN WITNESS WHEREOF, the Issuer has caused this Class A Note to be signed manually or by facsimile by its
duly authorized Manager. 
  

							
	 Date:  
	 	CINACALCET ROYALTY SUB LLC	 	 
				
	 	 	By:	 	  

	 	 
	 	 	Name:	 	 	 	 
	 	 	Title:	 	 	 	 

  
 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
  
 This Class A Note is one of the
Secured 8% Notes due 2017 designated above and referred to in the within-mentioned indenture. 
  

							
	 Date:  
	  	 U.S. BANK NATIONAL ASSOCIATION, not in its
individual capacity but solely as Trustee

			
	 	  	By:	  	  

	 	  	 	  	Authorized Signatory	 	 

  
  

 A-4 

 FORM OF TRANSFER NOTICE 
  
 FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
  
 Insert Taxpayer Identification No.
                     
  

	
	____________________________________________________________________________________________________________________________________
	(Please print or typewrite name and address including zip code of assignee)

 the within Note and all rights thereunder, hereby irrevocably constituting and appointing  
                                       
                               attorney to transfer said Note on the books of the Issuer with
full power of substitution in the premises. 
  

			
	
	 	

	Date:	 	[Signature of Transferor]

  
 NOTE: The signature to this assignment
must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change whatsoever. 
  
 [THE FOLLOWING PROVISIONS TO BE 
 INCLUDED ON
ALL NOTES OTHER THAN 
 PERMANENT REGULATION S GLOBAL NOTES] 
  
 In connection with any transfer of this Note occurring prior to the date which is the end of the period referred to in Rule
144(k) under the Securities Act, the undersigned confirms that without utilizing any general solicitation or general advertising that: 
  
 [Check One] 
  
  ̈ (a) this Note is being transferred in compliance with the exemption from registration under the Securities Act
of 1933 provided by Rule 144A thereunder. 
  
 or 
  
  ̈ (b) this Note is being transferred other than in accordance with (a) above and documents are being furnished which comply with the conditions of transfer set forth in this Note and the Indenture. 
  
 If none of the foregoing boxes is checked, the Trustee or other Registrar shall not be
obligated to register this Note in the name of any Person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 2.11 of the Indenture shall have been satisfied. 

 

			
	
	 	

	Date:	 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change
whatsoever.

  
 TO BE COMPLETED BY PURCHASER IF (a)
ABOVE IS CHECKED. 
  
 The undersigned represents and warrants
that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not
to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

 A-5 

 Dated: 
  

	
	

	NOTICE: to be executed by an executive officer

  
  

 A-6 

 Schedule I 
  
 CINACALCET ROYALTY SUB LLC 
 Class A Note Due
March 30, 2017 
  
 No.
             
  

							
	 Date

	 	 Principal Amount

	 	 Notation Explaining Principal Amount
Recorded

	 	 Authorized Signature
 of Trustee
or
 Custodian

  
  
  

 A-7 

 EXHIBIT F 
  
 AGENTS FOR SERVICE OF PROCESS 
  

					
	 Party

	 	 Jurisdiction

	 	 Appointed Agent

	Cinacalcet Royalty Sub LLC	 	Delaware	 	The Corporation Trust Company
			
	Cinacalcet Royalty Sub LLC	 	New York	 	CT Corporation System

  
  

 F-1 

 EXHIBIT H 
  
 FORM OF DISTRIBUTION REPORT FOR CLASS A NOTES 
  

	(i)	With respect to each Payment Date, (A) the balances on deposit on the Calculation Date immediately preceding the prior Payment Date, (B) the aggregate amounts of deposits and
withdrawals between such Calculation Date and the Calculation Date immediately preceding the Payment Date and (C) the balances on deposit in the Collection Account, Interest Reserve Account and any other Account established under this Indenture on
the Calculation Date immediately preceding such Payment Date. 

  

	(ii)	Analysis of Collection Account Activity Balance on Preceding Calculation Date 

  

	 	•	 	Collections during period 

  

	 	•	 	Aggregate Note Payments 

  
 Balance on current Calculation Date 
  
 Analysis of current Payment Date distributions 
  

	(iii)	Payments on each class of Notes on current Payment Date 

  

	 	•	 	Interest Amount on each class of Notes 

  

	 	•	 	Additional Interest, if any 

  

	 	•	 	Opening Outstanding Principal Balance 

  

	(iv)	Payments on each March 30 Payment Date 

  

	 	•	 	Cash Sweep Principal Amount 

  

	 	•	 	Cash Sweep Premium Percentage 

  

	 	•	 	Cash Sweep Premium 

  

	 	•	 	Amount allocable to principal 

  

	 	•	 	Amount allocable to premium 

  

	 	•	 	Closing Outstanding Principal Balance 

  

	(v)	Payments on each March 30 Payment Date per $100,000 Initial Outstanding Principal Balance of Notes 

  
 Opening Outstanding Principal Balance 
  
 Total Principal Payments 
  
 Closing Outstanding Principal Balance 
  
 Total Interest 
  
 Total Premium 
  

	(v)	On each Distribution Report for each March 30 Payment Date, a comparison of the actual amortization of the Notes to the Base Case Amortization Schedule as of such Payment Date

  

 H-1 

 EXHIBIT I 
  
 FORM OF CERTIFICATE 
  
                     ,
     
  
 U.S. Bank National Association, 
     as Trustee 
 Mail Code EP-MN-WS3C 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107 
 Attention: Corporate Trust Department 
  
 Cinacalcet Royalty Sub LLC 
 c/o NPS Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108 
 Attention: General Counsel 
  

	 	Re:	Cinacalcet Royalty Sub LLC (the “Issuer”) 

 Notes 
  
 Dear Sirs: 
  
 This letter relates to U.S.
$                     principal amount of Class      Notes of the Issuer represented by a Class
     Note which bears a legend (the “Legended Note”) outlining restrictions upon transfer of such Legended Note. Pursuant to Section 2.01 of the Indenture dated as of December 22, 2004 (the
“Indenture”) relating to the Class      Notes and certain other classes of Notes, we hereby certify that we are (or we will hold such securities on behalf of) a person outside the United States to whom the
Class     Notes may be transferred in accordance with Rule 904 of Regulation S promulgated under the U.S. Securities Act of 1933, as amended (“Regulation S”). Accordingly, you are hereby requested to
exchange the Legended Note for an unlegended Note representing an identical principal amount of Class      Notes, all in the manner provided for in the Indenture. 
  
 Each of you is entitled to rely upon this letter and is irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in
Regulation S. 
  

			
	Very truly yours,
	
	[Euroclear] [Clearstream]
		
	By:	 	 
	 	 	Authorized Signature

  
  
  

 I-1 

 EXHIBIT J 
  
 FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS PURSUANT TO REGULATION S 
  
                     ,      
  
 U.S. Bank National Association 
 Mail Code
EP-MN-WS3C 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107

 Attention: Corporate Trust Department 
  
 Cinacalcet Royalty Sub LLC 
 c/o NPS Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108 
 Attention: General Counsel 
  

	 	Re:	Cinacalcet Royalty Sub LLC (the “Issuer”) 

 Notes 
  
 Dear Sirs: 
  
 In connection with our proposed sale of
U.S.$                     aggregate principal amount of the Class      Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the Securities Act of 1933, as amended (“Regulation S”) and, accordingly, we represent that: 
  
 (1) the offer of the Class      Notes was not made to a person in the U.S.; 
  
 (2) at the time the buy order was originated, the transferee was outside the
U.S. or we and any person acting on our behalf reasonably believed that the transferee was outside the U.S.; 
  
 (3) no directed selling efforts have been made by us in the U.S. in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as
applicable; 
  
 (4) the transaction is not part of a plan or
scheme to evade the registration requirements of the U.S. Securities Act of 1933; and 
  
 (5) we are not engaged in, and are not an affiliate of any firm, corporation, partnership, association, trust or other legal entity engaged in, the business of developing, manufacturing or marketing pharmaceutical or
diagnostic products. 
  
 Each of you is entitled to rely upon this
letter and is irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the
meanings set forth in Regulation S. 
  

			
	Very truly yours,
	
	[Name of Transferor] 
		
	By:	 	  

	 	 	Authorized Signature

  
  

 J-1 

 EXHIBIT K 
  
 FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH 
 TRANSFERS TO NON-QIB ACCREDITED INVESTORS 
  
                     ,      
  
 Cinacalcet Royalty Sub LLC 
 c/o NPS Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108 
 Attention: General Counsel 
  
 [                    ] 
 [                    ] 
  
 As Purchasers in connection with the 
 Private Placement Memorandum referred to below 
  
 [                    ] 
 [                    ] 
  
 Ladies and Gentlemen: 
  
 In connection with our proposed purchase of Notes (the “Notes”) of Cinacalcet Royalty Sub LLC (the
“Issuer”), we confirm that: 
  
 1. We have duly
executed and delivered to the Issuer a Confidentiality Agreement and have subsequently received a copy of the Private Placement Memorandum dated December 14, 2004 (the “Private Placement Memorandum”) relating to the Notes and such
other information as we deem necessary in order to make our investment decision. We acknowledge that we have read and agreed to the matters stated in the section entitled “Transfer Restrictions” of such Private Placement Memorandum
and the restrictions on duplication and circulation of such Private Placement Memorandum. 
  
 2. We understand that any subsequent transfer of the Notes is subject to certain restrictions and conditions set forth in the Private Placement Memorandum under “Transfer Restrictions” and the undersigned
agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except in compliance with such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”). 
  
 3. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, that the Notes will only be in the form of definitive physical certificates and that the Notes may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf
of any accounts for which we are acting as hereinafter stated, that if we should sell any Notes in the future, we will do so only (1) (A) to the Issuer or any subsidiary thereof, (B) in accordance with Rule 144A under the Securities Act to a
“qualified institutional buyer” (as defined therein), (C) to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes to the Trustee (as defined in the Indenture) a signed letter
containing certain representations and agreements relating to the restrictions on transfer of the Notes (the form of which letter can be obtained from the Trustee) and an opinion of counsel acceptable to the Issuer that such transfer is in
compliance with the Securities Act, (D) in an offshore transaction in compliance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available) or
pursuant to another available exemption from registration under the Securities Act, as applicable or (F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing any of the
Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein and (2) in each case, in accordance with any applicable securities laws of any state in the U.S. or any other applicable jurisdiction and in
accordance with the legend to be set forth in the Notes, which will reflect the substance of this paragraph. 
  

 K-1 

 4. We understand that, on any proposed resale of any Notes, we will be required to furnish to the Issuer
and the Trustee such certifications, legal opinions and other information as the Issuer and the Trustee may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. 
  
 5. We are an institutional “accredited investor” (as defined in
Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any
accounts for which we are acting are each able to bear the economic risks of our or their investment. 
  
 6. We are acquiring the Notes purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion. 
  
 7. We are not acquiring the Notes with a view to distribution thereof or with any present intention of offering or selling the Notes, except as permitted above, provided that the disposition of our property and
property of any accounts for which we are acting as fiduciary shall remain at all times within our control. 
  
 8. We represent that we are not engaged in, and are not an affiliate of any any firm, corporation, partnership, association, trust or other legal entity
engaged in, the business of developing, manufacturing or marketing pharmaceutical or diagnostic products. 
  
 You, the Issuer and the Trustee are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  
  

			
	Very truly yours,
		
	By:	 	

	 	 	Name:
	 	 	Title:

  
  
  

 K-2 

 EXHIBIT M-1 
  
 FORM OF CERTIFICATE TO DTC REGARDING INTEREST 
  
 Euroclear 
 [Address] 
  
 AND/OR 
  
 Clearstream 
 [Address] 
  

	 	Re:	Cinacalcet Royalty Sub LLC 

  
 Reference is hereby made to the Indenture, dated as of December 22, 2004 (the “Indenture”), made by and between Cinacalcet Royalty Sub
LLC (the “Issuer”) and U.S. Bank National Association, as Trustee (the “Trustee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 This letter relates to
$[                    ] principal amount of Class      Notes that are held in the form of a beneficial interest in the
Temporary Regulation S Global Note (CUSIP No.     ) through [insert name of DTC] by the undersigned (the “Holder”) in the name of [insert name of Participant]. The Holder of such Temporary Regulation S
Global Note hereby requests the receipt of payment of interest installments due and payable [on the applicable Payment Date] pursuant to Section 2.05 of the Indenture. 
  
 The Holder hereby represents and warrants that it (i) is not a U.S. person, (ii) does not hold the above-referenced
Temporary Regulation S Global Note for the account or benefit of a U.S. person (other than a distributor), (iii) has executed and delivered a Confidentiality Agreement to the Issuer, and (iv) is not engaged in, and is not an affiliate of any Person
engaged in, the business of developing, manufacturing or marketing pharmaceutical or diagnostic products. Terms in this certificate have the meanings given to them in Regulation S under the Securities Act of 1933, as amended. 
  
 This certificate and the statements contained herein are made for your
benefit and the benefit of the Paying Agent. 
  

			
	 [Name of Holder]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 M-1-1 

 EXHIBIT M-2 
  
 FORM OF DTC CERTIFICATE REGARDING INTEREST 
  
 U.S. Bank National Association, 
     as Paying Agent

 Mail Code EP-MN-WS3C 
 60 Livingston Avenue 
 St. Paul, Minnesota 55107 
 Attention: Corporate Trust Department 

 

	 	Re:	Cinacalcet Royalty Sub LLC 

  
 Reference is hereby made to the Indenture, dated as of December 22, 2004 (the “Indenture”), made by and between Cinacalcet Royalty Sub
LLC (the “Issuer”) and U.S. National Association, as Trustee (the “Trustee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 
  
 This letter relates to
$[                    ] principal amount of Class      Notes that are held in the form of a beneficial interest in the
Temporary Regulation S Global Note (CUSIP No.     ) through [insert name of DTC] by the undersigned (the “Holder”) in the name of [insert name of Participant]. Certain Holders of the beneficial interests
in such Temporary Regulation S Global Note have requested the receipt of payment of interests installments due and payable [on the applicable Payment Date] pursuant to Section 2.05 of the Indenture. 
  
 We have received from such Holders certifications to the effect that they (i)
are not U.S. persons, (ii) do not hold the above-referenced Temporary Regulation S Global Note for the account or benefit of U.S. persons (other than distributors), (iii) has executed and delivered a Confidentiality Agreement to the Issuer, and (iv)
is not engaged in, and is not an affiliate of any Person engaged in, the business of developing, manufacturing or marketing pharmaceutical or diagnostic products. Terms in this certificate have the meanings given to them in Regulation S under the
Securities Act of 1933, as amended. 
  
 Accordingly, the Holders
of the beneficial interests in the Temporary Regulation S Global Note are entitled to receive interest, principal and premium, if any, in accordance with the terms of the Indenture in the amount of
$[                    ]. 
  

			
	 [Clearstream] [Euroclear]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 EXHIBIT N 
  
 FORM OF CONFIDENTIALITY AGREEMENT 
  
                     , 20    

  
 Cinacalcet Royalty Sub LLC 
 c/o NPS Pharmaceuticals, Inc. 
 420 Chipeta Way 
 Salt Lake City, Utah 84108 
 Attention: Secretary 
  
 CONFIDENTIALITY AGREEMENT 
  
 In connection with our interest in the potential purchase of Cinacalcet Pharmaceutical
Royalty Monetization Asset (PhaRMASM) Secured 8% Notes due 2017 issued by you (the “Notes”), we
have requested that you furnish us with the Private Placement Memorandum, dated December 14, 2004, relating to the Notes (the “Private Placement Memorandum”). In addition to receiving the Private Placement Memorandum, we may also
have conversations with you or your representatives or receive additional information from you or your representatives about the Notes or your business. As used in this letter agreement, the term “Information” means (i) the Private
Placement Memorandum, (ii) any additional information we receive from you or your representatives about the Notes or your business, and (iii) any internal reports or analyses we prepare that incorporate or utilize any information described in
clauses (i) or (ii) (in the case of clauses (ii) and (iii), whether oral or written, whether in tangible or electronic form, or otherwise). The term Information also includes all confidential and proprietary information of Amgen, Inc.
(“Amgen”) related to that certain Development and License Agreement by and between NPS Pharmaceuticals, Inc. (“NPS”) and Amgen, effective as of December 27, 1995, as amended (the “License
Agreement”), including but not limited to product sales and royalties paid under the License Agreement, the business and operations of Amgen, Amgen finances, and such other information relating thereto as may be provided by you, NPS or
Amgen (“Amgen Information”). The term Information will not, however, include information which (i) is or becomes publicly available other than as a result of a disclosure by us, (ii) was already known to us, as evidenced by our
contemporaneous written records at the time of disclosure by you or (iii) was disclosed to us by a third party who, to the best of our knowledge, had no obligation to you, NPS or Amgen not to disclose such information to others. 
  
 We represent and warrant that we are not in the business of developing, manufacturing or
marketing pharmaceutical or diagnostic products. We represent and warrant that we are not an affiliate of an entity which is in the business of developing, manufacturing or marketing pharmaceutical or diagnostic products. 
  
 As a condition to receiving the Information, we hereby agree that: 
  

	1.	In consideration of your making the Information available to us, and Amgen agreeing to permit such action by you in respect of Information which may be restricted from disclosure
under the License Agreement, we (i) will take all reasonable precautions to keep the Information confidential, which precautions will be no less stringent than those we employ to protect our own confidential information, and will not (except as
required by applicable law, regulation or legal process, and only after compliance with paragraph 2 below), without your prior written consent, disclose any Information in any manner whatsoever and (ii) will not use any Information for any purpose
other than in connection with our considering or making an investment in the Notes 

  

	2.	 In the event that we are requested pursuant to, or required by, applicable law, regulation or legal process to disclose any of the Information, we will notify Amgen
and you promptly (unless such notice is not permitted by applicable law or regulation) so that (i) Amgen or you are afforded a full and fair opportunity to seek, at Amgen’s or your expense, a protective order or other appropriate remedy, and
appeal from any denial thereof, and we agree to cooperate reasonably with Amgen and you in seeking such order and in securing confidential treatment for any Information to be disclosed or (ii) in Amgen’s or your sole discretion, as applicable,
Amgen or you may waive compliance with the terms of this letter agreement. In the event that no such protective order or other remedy is obtained, or that Amgen or you do not waive compliance with the terms of this letter 

	 	 
agreement, we will furnish only that portion of the Information which we are advised by counsel is legally required and will exercise all reasonable efforts
to obtain reliable assurance that confidential treatment will be accorded the Information. We represent and warrant to you that we are not aware of any applicable law, regulation or legal process that we reasonably foresee will require the
disclosure of Information, other than to you as permitted hereunder and pursuant to the terms hereof. 

  

	3.	If we decide not to purchase the Notes, we will promptly inform you of that decision and, in such case, and at any time upon your request, we will (i) promptly deliver to you all
copies of the Information in our possession (except as described in the following clause) and (ii) promptly destroy all copies of any written Information (whether in tangible or electronic form, or otherwise) that we have created, including, without
limitation, any notes we have taken on any discussions with you, provided, in each case, that we may retain one copy of the Information, subject to the provisions of this letter agreement, if necessary to comply with applicable law or regulation).
Any oral Information will continue to be subject to the terms of this letter agreement. 

  

	4.	We acknowledge that the Private Placement Memorandum is dated December 14, 2004, and that you have not updated, and have no obligation to update, the Private Placement Memorandum in
any respect for events, developments or circumstances (including, without limitation, the level of royalty payments for Cinacalcet or the sales of Cinacalcet compared to the projections contained in the Independent Consultant’s Report included
as Appendix A to the Private Placement Memorandum). No express or implied representation or warranty as to the accuracy or completeness of any Information or as to the suitability of the Information for evaluating a possible investment in the Notes
is made by you or any representative acting for you or as a broker or market maker for the Notes, and we agree that none of such persons will have any liability relating thereto or for any errors therein or omissions therefrom. We agree that we
acquire no rights against Amgen or any employee, officer, director, representative or agent of Amgen (together with Amgen, the “Amgen Representatives”) as a result of the disclosure of Information to us or our Representatives and
that no Amgen Representative has any duty, responsibility, liability or obligation to us as a result of such disclosure. 

  

	5.	We may disclose Information to our advisors, attorneys and affiliates who have a need to know the Information in connection with our investment decision (our
“Representatives”), but only if we deliver to each such Representative a copy of this letter agreement executed by us and if such Representative expressly agrees in writing to maintain the Information in confidence
under terms and conditions substantially identical to this letter agreement. We will be responsible for any breach of this letter agreement by any of our Representatives. 

  

	6.	If we propose to transfer, sell, or otherwise dispose of any Notes at any time, we agree to (i) abide by the transfer restrictions described in the Private Placement Memorandum,
(ii) inform any proposed transferee of the Notes of such transfer restrictions, including the requirement that such proposed transferee enter into a confidentiality agreement with you and (iii) not furnish any Information to such proposed
transferee, or transfer, sell or dispose of any Note to such proposed transferee, without receiving evidence that such proposed transferee has entered into a confidentiality agreement with you. 

  

	7.	We acknowledge that remedies at law may be inadequate to protect you against any actual or threatened breach of this letter agreement by us, and, without prejudice to any other
rights and remedies otherwise available to you, we agree to the granting of injunctive relief in your favor without proof of actual damages. 

  

	8.	We acknowledge that we are aware of the restrictions imposed by the United States securities laws on the purchase or sale of securities of an issuer or an affiliate or controlling
person of the issuer (such as, in our case, NPS) by any person who has received material, non-public information from the issuer or an affiliate or controlling person of the issuer, and on the communication of such information to any other person
when it is reasonably foreseeable that such other person is likely to purchase or sell such securities in reliance upon such information. 

  

	9.	We agree that (i) neither party to the License Agreement expressly or implicitly waives any of its rights, whether contractual or otherwise, that such party has or may have under or
in connection with the License Agreement or otherwise with respect to us and (ii) no failure or delay by you in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. 

  

	10.	We agree that this letter agreement is for the benefit of, and may be enforced by, Amgen or you, acting either independently or together. 

	11.	This letter agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts between residents of that State and executed in
and to be performed in that State. 

  

	12.	No modification of this letter agreement or waiver of the terms and conditions hereof will be effective, unless approved in writing by each of Amgen, you and us.

  

	13.	This letter agreement will, subject to the proviso below, terminate eighteen (18) months after the earlier of the date we sell the Notes or the date the Notes mature; provided,
however, in respect solely of restrictions herein concerning maintaining the confidentiality of Information that is Amgen Information (and not otherwise excluded from restriction by the last sentence of the first paragraph of this letter), this
letter agreement will terminate five years after the expiration or termination of the License Agreement. 

  
 Please confirm your agreement with the foregoing by signing and returning to the undersigned the duplicate copy of this letter enclosed herewith. 
  

			
	 Very truly yours,

	  

	 [Please Print Name]

		
	 By:
	 	  

		
	 Name: 
	 	  

		
	 Title: 
	 	  

		
	 Address:
	 	  

	 	 	  

	 	 	  

  

			
	Accepted and Agreed as of the date first written above:
	
	CINACALCET ROYALTY SUB LLC
		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  

	
	 Private Placement Memorandum Copy No:
            

 APPENDIX A 
  
 LICENSED TECHNOLOGY 
  
 Patents: 
  
 United States Patent No. 5,858,684, issued January 12, 1999 
 United States Patent No. 5,688,938, issued November 18, 1997

 United States Patent No. 5,763,569, issued June 9, 1998 
 United States Patent No. 5,962,314, issued October 5, 1999 
 United States Patent No. 5,981,599, issued November 9, 1999 
 United States Patent No. 6,011,068, issued January 4, 2000 
 United States
Patent No. 6,001,884, issued December 14, 1999 
 United States Patent No. 6,031,003, issued February 29, 2000 
 United States Patent No. 6,211,244, issued April 3, 2001 
 United States
Patent No. 6,313,146, issued November 6, 2001 
 United States Patent No. 6,342,532, issued January 29, 2002 
 United States Patent No. 6,362,231, issued March 26, 2002 
 United States
Patent No. 6,710,088, issued March 23, 2004 
 United States Patent No. 6,750,255, issued June 15, 2004 
  
 Patent Applications: 
  
 United States Patent Application No. 09/579,564, filed May 26, 2000 
 United States Patent Application No. 10/326,713, filed December 19, 2002 
 United States Patent Application No. 10/389,093,
filed March 13, 2003 
  
 Non U.S. Patents and Patent Applications:

  
 Australia Patent No. 673500 granted March 4, 1997 
 Australia Patent No. 711247 granted January 20, 2000 
 Australia Patent No.
757697 granted June 26, 2003 
 Canada Pending Patent Application No. 2115828 
 European Allowed Patent Application No. 02016612.0 
 Mexico Patent No. 207952 granted August 21, 2001 
 Mexico Patent No. 207954 granted May 24, 2002 
 Russia Patent No. 2147574
granted April 20, 2000 
 South Africa Patent No. 92/6360 granted June 30, 1993 
 Australia Patent No. 702629 granted February 10, 2000 
 Canada Pending Patent Application No. 2173747 
 European Patent No. 0724561 
 Mexico Patent No. 222133 granted August 13, 2004

 Russia Patent No. 2194499 granted December 20, 2002 
 Australia
Patent No. 070903 granted December 9, 1999 
 Australia Patent No. 747853 granted September 5, 2002 
 Brazil Pending Patent Application No. P1 9509411-3 
 Canada Pending Patent
Application No. 2202879 
 European Allowed Patent Application No. 01204920.1 
 Mexico Patent No. 201736 granted May 4, 2001 
 Russia Patent No. 2195446 granted December 27, 2002 

 APPENDIX B 
  
 QUARTERLY AMOUNTS 
  

				
	 Quarter Ending

	  	Amounts

	 December 31, 2004
	  	$	12,825,000
	 March 31, 2005
	  	 	14,476,092
	 June 30, 2005
	  	 	18,068,769
	 September 30, 2005
	  	 	24,034,898
	 December 31, 2005
	  	 	33,842,418
	 March 31, 2006
	  	 	48,705,167
	 June 30, 2006
	  	 	63,677,983
	 September 30, 2006
	  	 	77,038,828
	 December 31, 2006
	  	 	87,947,779
	 March 31, 2007
	  	 	96,504,963
	 June 30, 2007
	  	 	105,285,069
	 September 30, 2007
	  	 	114,827,428
	 December 31, 2007
	  	 	125,097,113
	 March 31, 2008
	  	 	135,913,672
	 June 30, 2008
	  	 	146,281,143
	 September 30, 2008
	  	 	156,097,862
	 December 31, 2008
	  	 	165,336,054
	 March 31, 2009
	  	 	173,830,524
	 June 30, 2009
	  	 	181,255,492
	 September 30, 2009
	  	 	187,913,903
	 December 31, 2009
	  	 	193,887,563
	 March 31, 2010
	  	 	199,187,476
	 June 30, 2010
	  	 	203,576,272
	 September 30, 2010
	  	 	207,158,157
	 December 31, 2010
	  	 	210,013,208
	 March 31, 2011
	  	 	212,379,957
	 June 30, 2011
	  	 	214,739,859
	 September 30, 2011
	  	 	217,166,078
	 December 31, 2011
	  	 	219,718,463
	 March 31, 2012
	  	 	222,404,146
	 June 30, 2012
	  	 	225,118,352
	 September 30, 2012
	  	 	227,821,531
	 December 31, 2012
	  	 	230,525,414
	 March 31, 2013
	  	 	233,254,024
	 June 30, 2013
	  	 	236,034,795
	 September 30, 2013
	  	 	238,854,512
	 December 31, 2013
	  	 	241,705,556
	 March 31, 2014
	  	 	244,591,805
	 June 30, 2014
	  	 	247,515,872
	 September 30, 2014
	  	 	250,474,741
	 December 31, 2014
	  	 	253,467,515
	 March 31, 2015
	  	 	256,496,160
	 June 30, 2015
	  	 	259,568,579
	 September 30, 2015
	  	 	262,681,005
	 December 31, 2015
	  	 	265,839,962
	 March 31, 2016
	  	 	269,016,180
	 June 30, 2016
	  	 	272,238,568
	 September 30, 2016
	  	 	275,502,917
	 December 31, 2016
	  	 	278,816,068Loan Agreement

 EXHIBIT 10.12A 
  
 LOAN AGREEMENT 
  
 Dated as of January 21, 2005 
  
 between 
  
 TERCICA, INC., 
 a Delaware corporation, 
  
 as “Borrower”, 
  
 and 
  
 VENTURE LENDING & LEASING IV, INC., 
 a Maryland corporation, 
  
 as “Lender” 

 LOAN AGREEMENT 
  
 The Borrower and Lender identified on the cover page of this document have entered or anticipate entering into one or more
transactions pursuant to which Lender agrees to make available to Borrower a loan facility governed by the terms and conditions set forth in this document and one or more Supplements executed by Borrower and Lender which incorporate this document by
reference. Each Supplement constitutes a supplement to and forms part of this document, and will be read and construed as one with this document, so that this document and the Supplement constitute a single agreement between the parties
(collectively referred to as this “Agreement”). 

 Accordingly, the parties agree as follows: 
  
 ARTICLE 1 - INTERPRETATION 
  
 1.1 Definitions. The terms defined in Article 10 and in the Supplement will have the meanings therein specified for purposes of this Agreement.

  
 1.2 Inconsistency. In the event of any inconsistency
between the provisions of any Supplement and this document, the provisions of the Supplement will be controlling for the purpose of all relevant transactions. 
  

ARTICLE 2 - THE COMMITMENT AND LOANS 
  
 2.1 The Commitment. Subject to the terms and conditions of this Agreement, Lender agrees to make term loans to Borrower from time to time from the
Closing Date and to, but not including, the Termination Date in an aggregate principal amount not exceeding the Commitment. The Commitment is not a revolving credit commitment, and Borrower does not have the right to repay and reborrow hereunder.
Each Loan requested by Borrower to be made on a single Business Day shall be for a minimum principal amount set forth in the Supplement, except to the extent the remaining Commitment is a lesser amount. 
  
 2.2 Notes Evidencing Loans; Repayment. Each Loan shall be evidenced by
a separate Note payable to the order of Lender, in the total principal amount of the Loan. Principal and interest of each Loan shall be payable at the times set forth in the Note and regularly scheduled payments thereof and each Terminal Payment
shall be effected by automatic debit of the appropriate funds from Borrower’s Primary Operating Account as specified in the Supplement hereto. 
  
 2.3 Procedures for Borrowing. 
  
 (a) Borrower shall give Lender, at least five (5) Business Days’ prior to a proposed Borrowing Date, written notice of any request for borrowing
hereunder (a “Borrowing Request”). Each Borrowing Request shall be in substantially the form of Exhibit “B” to the Supplement, shall be executed by a responsible executive or financial officer of Borrower, and shall state
how much is requested, and shall be accompanied by such other information and documentation as Lender may reasonably request. 
  
 (b) No later than 1:00 p.m. Pacific Standard Time on the Borrowing Date, if Borrower has satisfied the conditions precedent in Article 4, Lender shall
make the Loan available to Borrower in immediately available funds. 
  
 2.4 Interest. Except as otherwise specified in the applicable Note, Basic Interest on the outstanding principal balance of each Loan shall accrue daily at the Designated Rate from the Borrowing Date until the Maturity Date. If the
outstanding principal balance of such Loan is not paid on the Maturity Date, interest shall accrue at the Default Rate until paid in full, as further set forth herein. 
  
 2.5 Terminal Payment. Except as otherwise provided in the Supplement, Borrower shall pay the Terminal Payment with
respect to each Loan on the Maturity Date of such Loan. 
  
 2.6
Interest Rate Calculation. Basic Interest, along with charges and fees under this Agreement and any Loan Document, shall be calculated for actual days elapsed on the basis of a 360-day year, which results in higher interest, charge or fee
payments than if a 365-day year were used. In no event shall Borrower be obligated to pay Lender interest, charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect. 
  
 2.7 Default Interest. Any unpaid payments of principal or interest or
the Terminal Payment with respect to any Loan shall bear interest from their respective maturities, whether scheduled or accelerated, at the Designated Rate for such Loan plus five percent (5.00%) per annum, until paid in full, whether before
or after judgment (the “Default Rate”). Borrower shall pay such interest on demand. 
  
 2.8 Late Charges. If Borrower is late in making any payment of principal or interest or Terminal Payment under this Agreement by more than five (5) days, Borrower agrees to pay a late charge of three and
one-half percent (3.5%) of the installment due, but not less than fifty dollars ($50.00) for any one such delinquent payment. This late charge may be charged by Lender for the purpose of defraying the expenses incidental to the handling of such
delinquent amounts. Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Agreement and represents a fair and reasonable estimate of the costs that will be sustained
by Lender due to the failure of Borrower to make timely payments. Borrower further agrees that proof of 

 
actual damages would be costly and inconvenient. Such late charge shall be paid without prejudice to the right of Lender to collect any other amounts
provided to be paid or to declare a default under this Agreement or any of the other Loan Documents or from exercising any other rights and remedies of Lender. 
  

2.9 Lender’s Records. Principal, Basic Interest, Terminal Payments and all other sums owed under any Loan Document shall be evidenced by
entries in records maintained by Lender for such purpose. Each payment on and any other credits with respect to principal, Basic Interest, Terminal Payments and all other sums outstanding under any Loan Document shall be evidenced by entries in such
records. Absent manifest error, Lender’s records shall be conclusive evidence thereof. 
  
 2.10 Grant of Security Interests; Filing of Financing Statements. 
  
 (a) To secure the timely payment and performance of all of Borrower’s Obligations to Lender, Borrower shall grant to Lender continuing
security interests in all of the Collateral effective upon Borrower’s submission of the initial Borrowing Request. In connection with the foregoing, Borrower will provide Lender with reasonable advance notice of its intent to submit the its
initial Borrowing Request (the “Notice of Intent to Borrow”), which Notice shall contain and shall constitute a grant of the security interest and Liens contemplated hereunder; upon receipt of the Notice of Intent to Borrow, Lender shall
be authorized to prepare and file any financing statements describing the Collateral without otherwise obtaining the Borrower’s signature or consent with respect to the filing of such financing statements. 
  
 (b) Borrower is and shall remain absolutely and unconditionally liable
for the performance of its obligations under the Loan Documents. 
  
 (c) All Collateral pledged by Borrower under this Agreement and any Supplement shall secure the timely payment and performance of all Obligations under this Agreement, the Notes and the other Loan Documents. Except as expressly
provided in this Agreement, no Collateral pledged under this Agreement or any Supplement shall be released until such time as all Obligations under this Agreement and the other Loan Documents have been satisfied and paid in full. 
  
 ARTICLE 3 - REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents and warrants that, except as set forth in the Supplement
or the Schedule of Exceptions delivered to Lender separately by Borrower: 
  
 3.1 Due Organization. Borrower is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of its incorporation, and is duly qualified to conduct business and is in
good standing in each other jurisdiction in which its business is conducted or its properties are located, except where the failure to be so qualified would not reasonably be expected to have a Material Adverse Effect. 
  
 3.2 Authorization, Validity and Enforceability. The execution,
delivery and performance of all Loan Documents executed by Borrower are within Borrower’s powers, have been duly authorized, and are not in conflict with Borrower’s articles or certificate of incorporation or by-laws, or the terms of any
charter or other organizational document of Borrower, as amended from time to time; and all such Loan Documents constitute valid and binding obligations of Borrower, enforceable in accordance with their terms (except as may be limited by bankruptcy,
insolvency and similar laws affecting the enforcement of creditors’ rights in general, and subject to general principles of equity). 
  
 3.3 Compliance with Applicable Laws. Borrower has complied with all licensing, permit and fictitious name requirements necessary to lawfully
conduct the business in which it is engaged, and to any sales, leases or the furnishing of services by Borrower, including without limitation those requiring consumer or other disclosures, the noncompliance with which would not reasonably be
expected to have a Material Adverse Effect. 
  
 3.4 No
Conflict. The execution, delivery, and performance by Borrower of all Loan Documents are not in conflict with any law, rule, regulation, order or directive, or any indenture, agreement, or undertaking to which Borrower is a party or by which
Borrower is bound in any material respect. Without limiting the generality of the foregoing, the issuance by Borrower to Lender (or its designee) of Borrower’s shares of common stock pursuant to this Agreement and the grant of registration
rights in connection therewith do not violate any agreement or instrument by which 

 
Borrower is bound or require the consent of any holders of Borrower’s securities other than consents which have been obtained prior to the Closing Date.

  
 3.5 No Litigation, Claims or Proceedings. There is no
litigation, tax claim, proceeding or dispute pending, or, to the knowledge of Borrower, threatened against or affecting Borrower, its property or the conduct of its business in which the granting of the relief requested is likely and would
reasonably be expected to have a Material Adverse Effect.  
  
 3.6 [Intentionally Omitted.] 
  
 3.7 No
Subsidiaries. Borrower is not a majority owner of or in a control relationship with any other business entity. 
  
 3.8 Environmental Matters. To its knowledge after reasonable inquiry, Borrower has concluded that Borrower is in compliance with Environmental
Laws, except to the extent a failure to be in such compliance would not reasonably be expected to have a Material Adverse Effect. 
  
 3.9 No Event of Default. No Default or Event of Default has occurred and is continuing. 
  
 3.10 Full Disclosure. None of the representations or warranties made
by Borrower in the Loan Documents as of the date such representations and warranties are made or deemed made, and none of the statements contained in any exhibit, report, statement or certificate furnished by or on behalf of Borrower in connection
with the Loan Documents (including disclosure materials delivered by or on behalf of Borrower to Lender prior to the Closing Date or pursuant to Section 5.2 hereof), contains any untrue statement of a material fact or omits any material fact
required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they are made, not misleading as of the time when made or delivered. 
  
 3.11 Specific Representations Regarding Collateral. 
  
 (a) Title. Except for the security interests created by this
Agreement and Permitted Liens, (i) Borrower is and will be the unconditional legal and beneficial owner of the Collateral, and (ii) the Collateral is genuine and subject to no Liens. There exist no prior assignments or encumbrances of record with
the U.S. Patent and Trademark Office or Copyright Office affecting any Collateral in favor of any third party other than Lender. 
  
 (b) Rights to Payment. The names of the obligors, amount owing to Borrower, due dates and all other information with respect to the Rights to
Payment are and will be correctly stated in all material respects in all Records relating to the Rights to Payment. Borrower further represents and warrants, to its knowledge, that each Person appearing to be obligated on a Right to Payment has
authority and capacity to contract and is bound as it appears to be. 
  
 (c) Location of Collateral. Borrower’s chief executive office, Inventory, Records, Equipment, and any other offices or places of business are located at the address(es) shown on the Supplement or on a later certificate furnished
by Borrower. 
  
 (d) Business Names. Other than its full
corporate name, Borrower has not conducted business using any trade names or fictitious business names except as shown on the Supplement. 
  
 3.12 Copyrights, Patents, Trademarks and Licenses. 
  

(a) To Borrower’s knowledge, Borrower owns or is licensed or otherwise has the right to use all of the patents, trademarks, service marks, trade
names, copyrights, contractual franchises, authorizations and other similar rights that are reasonably necessary for the operation of its business, without conflict with the rights of any other Person. 
  
 (b) To Borrower’s knowledge, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, by Borrower infringes upon any rights held by any other Person. 
  
 3.13 Regulatory Compliance. Borrower has met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA.
No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that could have a Material Adverse Effect. Borrower is not an “investment
company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of its important activities, in the business of 

 
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal
Reserve System). Borrower has complied with all the provisions of the Federal Fair Labor Standards Act. 
  
 3.14 Survival. The representations and warranties of Borrower as set forth in this Agreement survive the execution and delivery of this Agreement.

  
 ARTICLE 4 - CONDITIONS PRECEDENT 
  
 4.1 Conditions to First Loan. The obligation of Lender to make its
first Loan hereunder is, in addition to the conditions precedent specified in Section 4.2 and in the Supplement, subject to the fulfillment of the following conditions and to the receipt by Lender of the documents described below, duly executed and
in form and substance reasonably satisfactory to Lender and its counsel and delivered on the Closing Date (or such later date as Lender may have agreed in writing), and is subject to no other conditions: 
  
 (a) Resolutions. A certified copy of the resolutions of the Board of
Directors of Borrower authorizing the execution, delivery and performance by Borrower of the Loan Documents. 
  
 (b) Incumbency and Signatures. A certificate of the secretary of Borrower certifying the names of the officer or officers of Borrower authorized to
sign the Loan Documents, together with a sample of the true signature of each such officer. 
  
 (c) Legal Opinion. On or before January 31, 2005, the opinion of legal counsel for Borrower in substantially the form of opinion attached to the Supplement as Exhibit “F”. 
  
 (d) Articles and By-Laws. Certified copies of the Articles or
Certificate of Incorporation and By-Laws of Borrower, as amended through the Closing Date. 
  
 (e) This Agreement. A counterpart of this Agreement and an initial Supplement, with all schedules completed and attached thereto. 
  
 (f) Financing Statements. At the time of submission of the Notice of Intent to Borrow, filing copies (or other
evidence of filing satisfactory to Lender and its counsel) of such UCC financing statements, collateral assignments, account control agreements, and termination statements, with respect to the Collateral as Lender shall reasonably request.

  
 (g) Intellectual Property Security Agreement. At the
time of submission of the Notice of Intent to Borrow, an Intellectual Property Security Agreement executed by Borrower substantially in the form attached as Exhibit “D” to the Supplement. 
  
 (h) Lien Searches. At the time of submission of the Notice of Intent
to Borrow, UCC lien, judgment, bankruptcy and tax lien searches of Borrower from such jurisdictions or offices as Lender may reasonably request, all as of a date reasonably satisfactory to Lender and its counsel. 
  
 (i) [Intentionally Omitted.] 
  
 (j) Equity Consideration. A stock purchase agreement pursuant to which
Borrower shall issue and deliver to Lender (or its designee) shares of Borrower’s common stock in the amounts and at the times as is specified in the Supplement and in connection with which Borrower and Lender have entered into a stock escrow
agreement. 
  
 4.2 Conditions to All Loans. The obligation
of Lender to make its initial Loan and each subsequent Loan is subject to the following further conditions precedent and no additional conditions that: 
  
 (a) No Default. No Default or Event of Default has occurred and is continuing or will result from the making of any such Loan, and the
representations and warranties of Borrower contained in Section 3.1 and 3.11(a) are true and correct as of the Borrowing Date of such Loan. 
  
 (b) Corporate Funding Conditions. All applicable Corporate Funding Conditions remain in effect. 
  
 (c) Borrowing Request. Borrower shall have delivered to Lender a
Borrowing Request for such Loan. 
  
 (d) Note. Borrower
shall have delivered an executed Note evidencing such Loan, substantially in the form of Exhibit “A” attached to the Supplement. 
  
 (e) Supplemental Lien Filings. Borrower shall have executed and delivered such amendments or supplements to this Agreement and additional Security
Documents, financing statements and third party waivers as Lender may reasonably request in 

 
connection with the proposed Loan, in order to create, protect or perfect or to maintain the perfection of Lender’s Liens on the Collateral. 

 
 ARTICLE 5 - AFFIRMATIVE COVENANTS 
  
 Effective upon Borrower’s submission of its Borrowing Request for the
initial Loan and until satisfaction of all Obligations, Borrower will: 
  
 5.1 [Intentionally omitted]. 
  
 5.2
Forms 10-K and 10-Q. Cause to be to be filed with the Securities and Exchange Commission (“SEC”) all Forms 10-K and 10-Q within ten days of the dates required to be filed, including any applicable extensions, pursuant to applicable SEC
regulations. 
  
 5.3 Quarterly Reporting Certificate With
the initial Borrowing Request hereunder, and thereafter on a quarter-annual basis no later than twenty (20) days after the end of each of Borrower’s fiscal quarters, a certificate of the chief financial officer or other executive officer of
Borrower substantially in the form of Exhibit “C” to the Supplement stating (i) whether any of Borrower’s Deposit Accounts or investment/securities accounts have been moved, or any new accounts opened, and if so, setting forth
the details thereof and the action which Borrower is taking or proposes to take with respect thereto; (ii) confirming the locations where Borrower stores or maintains material Inventory; and (iii) confirming the locations of Borrower’s place(s)
of business, other material Collateral locations, and any changes in Borrower’s name, legal structure or jurisdiction of organization. 
  
 5.4 Existence. Keep all Borrower’s property in good working order and condition, ordinary wear and tear excepted. 
  
 5.5 Insurance. Obtain and keep in force insurance in such amounts and
types as is usual in the type of business conducted by Borrower, with insurance carriers having a policyholder rating of not less than “A” and financial category rating of Class VII in “Best’s Insurance Guide,” unless
otherwise approved by Lender. Such insurance policies must cover commercial general liability and casualty loss exposures, and shall list Lender as an additional insured or loss payee, as applicable, on endorsement(s). Borrower shall furnish to
Lender such endorsements, and upon Lender’s request, copies of any or all such policies. So long as no Event of Default has then occurred, proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to
replace the property subject to the claim, provided that such replacement property shall automatically be deemed part of the Collateral. 
  
 5.7 [Intentionally Omitted.] 
  
 5.8 [Intentionally Omitted.] 
  
 5.9 Special Collateral Covenants. 
  
 (a) Maintenance of Collateral. Do all things reasonably necessary to maintain, preserve, protect and keep all Collateral in good working order and
salable condition, ordinary wear and tear excepted, deal with the Collateral in all ways as are considered good practice by owners of like property, and use the Collateral lawfully and, to the extent applicable, only as permitted by Borrower’s
insurance policies. Maintain, or cause to be maintained, complete and accurate Records relating to the Collateral. 
  
 (b) Financing Statements and Other Actions. In connection with the funding of the initial Loan, and at all times thereafter so long as any
Obligations remain outstanding, reasonably enable Lender to maintain a first perfected security interest in the Collateral in favor of Lender subject only to Permitted Liens; perform such other acts, and execute and deliver to Lender such additional
conveyances, assignments, agreements and instruments, as Lender may at any time reasonably request in connection with the administration and enforcement of this Agreement or Lender’s rights, powers and remedies hereunder. 
  
 (c) Liens. Not create, incur, assume or permit to exist any Lien or
grant any other Person a negative pledge on any Collateral, except Permitted Liens. 
  
 (d) Documents of Title. Except with respect to Permitted Liens or transfers permitted pursuant to Section 6.5 hereof, not sign or authorize the signing of any financing statement or other document naming
Borrower as debtor or obligor, or acquiesce or cooperate in the issuance of any bill of lading, warehouse receipt or other document or instrument of title with respect to any Collateral, except those negotiated to Lender, or those naming Lender as
secured party. 
  
 (e) [Intentionally omitted].

 (f) Decals, Markings. At the reasonable request of Lender following an Event of Default, firmly
affix a decal, stencil or other marking to designated items of Equipment, indicating thereon the security interest of Lender. 
  
 (g) Agreement With Real Property Owner/Landlord. Obtain and maintain such acknowledgments, consents, waivers and agreements from the landlord with
respect to any real property on which Equipment in excess of $250,000 in original cost is located after June 1, 2005, as Lender may require, all in form and substance reasonably satisfactory to Lender. 
  
 5.10 Authorization for Automated Clearinghouse Funds Transfer. (i)
Authorize Lender to initiate debit entries to Borrower’s Primary Operating Account, specified in the Supplement hereto, through Automated Clearinghouse (“ACH”) transfers, in order to satisfy the Obligations; (ii) provide Lender at
least ten (10) days notice of any change in Borrower’s Primary Operating Account; and (iii) grant Lender any additional authorizations necessary to begin ACH debits from a new account which becomes the Primary Operating Account. 
  
 ARTICLE 6 - NEGATIVE COVENANTS 
  
 During the term of this Agreement and until satisfaction of all Obligations,
Borrower will not: 
  
 6.1 Indebtedness. Be indebted for
borrowed money, the deferred purchase price of property, or leases which would be capitalized in accordance with GAAP; or become liable as a surety, guarantor, accommodation party or otherwise for or upon the obligation of any other Person, except:

  
 (a) Indebtedness incurred for the acquisition of supplies or
inventory on normal trade credit; and other indebtedness incurred pursuant to one or more transactions permitted under Section 6.4; 
  
 (b) Indebtedness of Borrower under this Agreement; 
  
 (c) Any Indebtedness approved by Lender prior to the Closing Date; 
  
 (d) Indebtedness not to exceed One Million Dollars ($1,000,000) in aggregate principal amount outstanding at any time
secured by security interest covered by clause (c) of the definition of Permitted Lien; 
  
 (e) Subordinated Debt; 
  
 (f)
Indebtedness other than Indebtedness described in clauses (a) through (e) of this Section 6.1, provided such other Indebtedness under this subsection (f) shall not exceed One Million Dollars ($1,000,000.00) in the aggregate at any given time;

  
 (g) Extensions, refinancings and renewals of any items of
Indebtedness described in (a) through (f) above, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower; and 
  
 (h) Indebtedness assumed (or taken subject to) in connection with the acquisition of another Person or the assets of another
Person not to exceed Five Million Dollars ($5,000,000) or such greater amount as Lender may have consented to in connection with Section 6.5(viii) hereof; . 
  
 6.2 Liens. Create, incur, assume or permit to exist any Lien, or grant any other Person a negative pledge, on any of Borrower’s property,
except Permitted Liens. Borrower and Lender agree that this covenant is not intended to constitute a lien, deed of trust, equitable mortgage, or security interest of any kind on any of Borrower’s real property, and this Agreement shall not be
recorded or recordable. Notwithstanding the foregoing, however, violation of this covenant by Borrower shall constitute an Event of Default. 
  
 6.3 [Intentionally Omitted.] 
  
 6.4 Changes. Liquidate or dissolve. 
  
 6.5 Transfers; Mandatory Prepayment. 
  
 (a) Sell, transfer, lease, license or otherwise dispose of (a “Transfer”) any of Borrower’s assets except (i) exclusive or non-exclusive
licenses of Intellectual Property in the ordinary course of business consistent with industry practice; (ii) Transfers of worn-out, obsolete or surplus property (each as determined by the Borrower in its reasonable judgment) not constituting
Equipment as to which a Loan was made hereunder; (iii) Transfers of Inventory not constituting Equipment as to which a Loan was made hereunder; (iv) Transfers constituting Permitted Liens; (v) [Intentionally Omitted.]; (vi) Transfers of Collateral
(other than 

 
Intellectual Property and Equipment as to which a Loan was made hereunder) for fair consideration and in the ordinary course of its business; (vii)
investments in joint ventures, strategic alliances, licensing and similar arrangements customary in Borrower’s industry and which do not require Borrower to assume or otherwise become liable for the obligations of any third party not directly
related to or arising out of such arrangement or, without the prior written consent of Lender, require Borrower to transfer ownership of non-cash assets to such joint venture or other entity; and (viii) acquisitions by Borrower of the assets or
stock of, or mergers or consolidations with another Person, so long as in connection with such transaction Borrower does not assume or take subject to Indebtedness in excess of Five Million Dollars ($5,000,000), provided however, that
with Lender’s consent, Borrower may enter into such transactions where it assumes or takes subject to Indebtedness in excess of Five Million Dollars ($5,000,000); (ix) the sale of all or substantially all of the assets or stock of Borrower
provided that the Person acquiring such assets or stock (the “Acquiror”) agrees in writing, with the consent of Lender, to assume all of the Obligations. 
  
 (b) If Lender elects to withhold consent in connection with a transaction described in Section 6.5(a)(viii), or in
connection with a transaction described in Section 6.5(a)(ix) where the Acquiror has offered to assume the Obligations, then notwithstanding anything to contrary contained herein, Borrower shall be entitled to proceed with the proposed transaction
subject to requirement that Borrower shall pay (or shall cause the Acquiror to pay) to Lender no later than twenty (20) days after the closing of such transaction the full amount of principal and all then accrued and unpaid interest owing on each
outstanding Loan as of the date of payment, without any obligation to pay any interest that has not yet accrued or the Terminal Payments that would otherwise be payable in connection with each such Loan. If in connection with a transaction described
in Section 6.5(a)(ix) the Acquiror has not offered or is unwilling or fails to assume the Obligations, and Borrower proceeds with the proposed transaction, then no later than twenty (20) days after the closing of such transaction, Borrower shall
prepay (or shall cause the Acquiror to pay) to Lender all outstanding Loans in whole, by tendering to Lender cash payment in respect of such Loans in an amount equal to: (i) all accrued and unpaid Basic Interest on such Loans as of the date of
prepayment; (ii) the Terminal Payments on such Loans; and (iii) an amount equal to the undiscounted, total amount of all installment payments of principal and Basic Interest that would have accrued and been payable from the date of prepayment
through the stated Maturity Date of the Loans had such Loans remained outstanding and been paid in accordance with the terms of the related Notes. Pending receipt by Lender of payment in full of the Obligations as provided in this Section 6.5(b),
Lender’s Liens on the Collateral shall continue, notwithstanding any transfer of such assets by Borrower to the Acquiror or any other Person pursuant to the relevant transaction. Upon receipt of payment of the Obligations, Lender’s Liens
shall terminate as provided in Section 8.9 hereof. 
  
 6.6
[Intentionally Omitted.] 
  
 6.7 [Intentionally
Omitted.] 
  
 6.8 [Intentionally Omitted.]

  
 6.9 Compliance. Become an “investment
company” or controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the
purpose of purchasing or carrying margin stock, or use the proceeds of any Loan for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, fail to
comply with the Federal Fair Labor Standards Act or violate any law or regulation, which violation would reasonably be expected to have a Material Adverse Effect or a material adverse effect on the Collateral or the priority of Lender’s Lien on
the Collateral, or permit any of its subsidiaries to do any of the foregoing. 
  
 6.10 Other Deposit and Securities Accounts. From and after the date on which Borrower submits its initial Borrowing Request hereunder, maintain any deposit accounts or accounts holding securities owned by
Borrower except (i) Deposit Accounts and investment/securities accounts as set forth in the Supplement, and (ii) subject to any Permitted Liens, other Deposit Accounts and securities/investment accounts, in each case, with respect to which Borrower
and Lender shall have taken such action as Lender reasonably deems necessary to obtain a perfected first security interest therein. 

 ARTICLE 7 - EVENTS OF DEFAULT 
  
 7.1 Events of Default; Acceleration. Upon the occurrence and during the continuation of any Default, the obligation
of Lender to make any additional Loan shall be suspended. The occurrence of any of the following (each, an “Event of Default”) shall terminate any obligation of Lender to make any additional Loan; and shall, at the option of Lender (1)
make all sums of Basic Interest and principal, all Terminal Payments, and any Obligations and other amounts owing under any Loan Documents immediately due and payable without notice of default, presentment or demand for payment, protest or notice of
nonpayment or dishonor or any other notices or demands, and (2) give Lender the right to exercise any other right or remedy provided by contract or applicable law: 
  
 (a) Borrower shall fail to pay any principal, interest or Terminal Payment under this Agreement or any Note, or fail to pay
any fees or other charges when due under any Loan Document, and such failure continues for three (3) Business Days or more after the same first becomes due; or an Event of Default as defined in any other Loan Document shall have occurred.

  
 (b) Any representation or warranty made, or financial
statement, certificate or other document provided, by Borrower under any Loan Document shall prove to have been false or misleading in any material respect when made or deemed made herein. 
  
 (c) Borrower shall fail to pay its debts generally as they become due or
shall commence any Insolvency Proceeding with respect to itself; an involuntary Insolvency Proceeding shall be filed against Borrower, or a custodian, receiver, trustee, assignee for the benefit of creditors, or other similar official, shall be
appointed to take possession, custody or control of the properties of Borrower, and such involuntary Insolvency Proceeding, petition or appointment is acquiesced to by Borrower or is not dismissed within sixty (60) days; or the dissolution or
termination of the business of Borrower. 
  
 (d) Borrower shall be
in default beyond any applicable period of grace or cure under any other agreement involving the borrowing of money, the purchase of property, the advance of credit or any other monetary liability of any kind to Lender or to any Person which results
in the acceleration of payment of such obligation in an amount in excess of Five Million Dollars ($5,000,000), individually or in the aggregate. 
  
 (e) [Intentionally Omitted.] 
  
 (f) Except as expressly permitted by the Loan Documents, including without limitation under the Intellectual Property Security Agreement, Section 6 of
Part 2 of the Supplement, and Section 6.5 hereof, any sale, transfer or other disposition of all or a substantial or material part of the assets of Borrower, including without limitation to any trust or similar entity, shall occur. 
  
 (g) [Intentionally Omitted.] 
  
 (h) Borrower shall breach or fail to perform or observe any covenant
contained in Section 5.9, Article 6 or any other covenant contained in this Agreement or any other Loan Document (other than a covenant which is dealt with specifically elsewhere in this Article 7) and, if such breach or failure is susceptible of
being cured, the breach of such covenant is not cured within 30 days after the sooner to occur of Borrower’s receipt of notice of such breach from Lender or the date on which such breach first becomes known to any officer of Borrower;
provided, however that if such breach is susceptible of being cured but not within such 30-day period and Borrower timely notifies Lender of such fact and Borrower diligently pursues such cure, then the cure period shall be extended to
the date requested in Borrower’s notice but in no event more than 90 days from the initial breach; provided, further, that such additional 60-day opportunity to cure shall not apply in the case of any failure to perform or observe
any covenant which has been the subject of a prior failure within the preceding 180 days or which is a willful and knowing breach by Borrower. 
  
 7.2 Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, Lender shall be entitled to, at its option,
exercise any or all of the rights and remedies available to a secured party under the UCC or any other applicable law, and exercise any or all of its rights and remedies provided for in this Agreement and in any other Loan Document. The obligations
of Borrower under this Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any Obligations is rescinded or must otherwise be returned by Lender upon, on account of, or in connection with, the
insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. 

 7.3 Sale of Collateral. Upon the occurrence and during the continuance of an Event of Default,
Lender may sell all or any part of the Collateral, at public or private sales, to itself, a wholesaler, retailer or investor, for cash, upon credit or for future delivery, and at such price or prices as Lender may deem commercially reasonable. Any
such public or private sales shall be held at such times and at such place(s) as Lender may determine. In case of the sale of all or any part of the Collateral on credit or for future delivery, the Collateral so sold may be retained by Lender until
the selling price is paid by the purchaser, but Lender shall not incur any liability in case of the failure of such purchaser to pay for the Collateral and, in case of any such failure, such Collateral may be resold. Lender may, instead of
exercising its power of sale, proceed to enforce its security interest in the Collateral by seeking a judgment or decree of a court of competent jurisdiction. Without limiting the generality of the foregoing, if an Event of Default is in effect,

  
 (1) Subject to the rights of any third parties, Lender may
license, or sublicense, whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any Copyrights, Patents or Trademarks included in the Collateral throughout the world for such term or terms, on such conditions and
in such manner as Lender shall in its sole discretion determine; 
  
 (2) Lender may (without assuming any obligations or liability thereunder), at any time and from time to time, enforce (and shall have the exclusive right to enforce) against any licensee or sublicensee all rights and remedies of Borrower
in, to and under any Copyright Licenses, Patent Licenses or Trademark Licenses and take or refrain from taking any action under any thereof, and Borrower hereby releases Lender from, and agrees to hold Lender free and harmless from and against any
claims arising out of, any lawful action so taken or omitted to be taken with respect thereto other than claims arising out of Lender’s gross negligence or willful misconduct; and 
  
 (3) Upon request by Lender, Borrower will execute and deliver to Lender a power of attorney, in form and substance
reasonably satisfactory to Lender for the implementation of any lease, assignment, license, sublicense, grant of option, sale or other disposition of a Copyright, Patent or Trademark. In the event of any such disposition pursuant to this clause
3, Borrower shall supply its know-how and expertise relating to the products or services made or rendered in connection with Patents, the manufacture and sale of the products bearing Trademarks, and its customer lists and other records relating
to such Copyrights, Patents or Trademarks and to the distribution of said products, to Lender. 
  
 7.4 Borrower’s Obligations Upon Default. Upon the request of Lender after the occurrence and during the continuance of an Event of Default, Borrower will: 
  
 (a) Assemble and make available to Lender the Collateral at such
place(s) as Lender shall reasonably designate, segregating all Collateral so that each item is capable of identification; and 
  
 (b) Subject to the rights of any lessor, permit Lender, by Lender’s officers, employees, agents and representatives, to enter any premises
where any Collateral is located, to take possession of the Collateral, to complete the processing, manufacture or repair of any Collateral, and to remove the Collateral, or to conduct any public or private sale of the Collateral, all without any
liability of Lender for rent or other compensation for the use of Borrower’s premises. 
  
 ARTICLE 8 - SPECIAL COLLATERAL PROVISIONS 
  
 8.1 Compromise and Collection. Borrower and Lender recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Rights to Payment; that certain of
the Rights to Payment may be or become uncollectible in whole or in part; and that the expense and probability of success of litigating a disputed Right to Payment may exceed the amount that reasonably may be expected to be recovered with respect to
such Right to Payment. Borrower hereby authorizes Lender, after and during the continuance of an Event of Default, to compromise with the obligor, accept in full payment of any Right to Payment such amount as Lender shall negotiate with the obligor,
or abandon any Right to Payment. Any such action by Lender shall be considered commercially reasonable so long as Lender acts in good faith based on information known to it at the time it takes any such action. 
  
 8.2 Performance of Borrower’s Obligations. After the occurrence
and during the continuance of a Default or an Event of Default, without having any 

 
obligation to do so, upon reasonable prior notice to Borrower, Lender may perform or pay any obligation which Borrower has agreed to perform or pay under
this Agreement, including, without limitation, the payment or discharge of taxes or Liens levied or placed on or threatened against the Collateral. In so performing or paying, Lender shall determine the action to be taken and the amount necessary to
discharge such obligations. Borrower shall reimburse Lender on demand for any amounts paid by Lender pursuant to this Section, which amounts shall constitute Obligations secured by the Collateral and shall bear interest from the date of demand at
the Default Rate. 
  
 8.3 Power of Attorney. For the
purpose of protecting and preserving the Collateral and Lender’s rights under this Agreement, Borrower hereby until payment in full of the Obligations and termination of Lender’s commitment hereunder irrevocably appoints Lender, with full
power of substitution, as its attorney-in-fact with full power and authority, after the occurrence and during the continuance of an Event of Default, to do any act which Borrower is obligated to do hereunder; to exercise such rights with respect to
the Collateral as Borrower might exercise; to use such Inventory, Equipment, Fixtures or other property as Borrower might use; to enter Borrower’s premises; to give notice of Lender’s security interest in, and to collect the Collateral;
and before or after Default, to execute and file in Borrower’s name any financing statements, amendments and continuation statements necessary or desirable to perfect or continue the perfection of Lender’s security interests in the
Collateral. Borrower hereby ratifies all that Lender shall lawfully do or cause to be done by virtue of this appointment. 
  
 8.4 Authorization for Lender to Take Certain Action. The power of attorney created in Section 8.3 is a power coupled with an interest and shall be
irrevocable until payment in full of the Obligations and termination of Lender’s commitment hereunder. The powers conferred on Lender hereunder are solely to protect its interests in the Collateral and shall not impose any duty upon Lender to
exercise such powers. Lender shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and in no event shall Lender or any of its directors, officers, employees, agents or representatives be
responsible to Borrower for any act or failure to act, except for gross negligence or willful misconduct. After the occurrence and during the continuance of an Event of Default, Lender may exercise this power of attorney without notice to or assent
of Borrower, in the name of Borrower, or in Lender’s own name, from time to time in Lender’s sole discretion and at Borrower’s expense. To further carry out the terms of this Agreement, after the occurrence and during the continuance
of an Event of Default, Lender may: 
  
 (a) Execute any
statements or documents or take possession of, and endorse and collect and receive delivery or payment of, any checks, drafts, notes, acceptances or other instruments and documents constituting Collateral, or constituting the payment of amounts due
and to become due or any performance to be rendered with respect to the Collateral. 
  
 (b) Sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts; drafts, certificates and statements under any commercial or standby letter of credit relating to
Collateral; assignments, verifications and notices in connection with Accounts; or any other documents relating to the Collateral, including without limitation the Records. 
  
 (c) Use or operate Collateral or any other property of Borrower for the purpose of preserving or liquidating
Collateral. 
  
 (d) File any claim or take any other action
or proceeding in any court of law or equity or as otherwise reasonably deemed appropriate by Lender for the purpose of collecting any and all monies due or securing any performance to be rendered with respect to the Collateral. 
  
 (e) Commence, prosecute or defend any suits, actions or proceedings or
as otherwise reasonably deemed appropriate by Lender for the purpose of protecting or collecting the Collateral. In furtherance of this right, upon the occurrence and during the continuance of an Event of Default, Lender may apply for the
appointment of a receiver or similar official to operate Borrower’s business. 
  
 (f) Prepare, adjust, execute, deliver and receive payment under insurance claims, and collect and receive payment of and endorse any instrument in payment of loss or returned premiums or any other insurance
refund or return, and apply such amounts at Lender’s sole discretion, toward repayment of the Obligations or replacement of the Collateral. 
  
 8.5 Application of Proceeds. Any Proceeds and other monies or property received by Lender pursuant to the terms of this Agreement or any Loan

 
Document may be applied by Lender first to the payment of expenses of collection, including without limitation reasonable attorneys’ fees, and then to
the payment of the Obligations in such order of application as Lender may elect. 
  
 8.6 Deficiency. If the Proceeds of any disposition of the Collateral are insufficient to cover all costs and expenses of such sale and the payment in full of all the Obligations, plus all other sums required to
be expended or distributed by Lender, then Borrower shall be liable for any such deficiency. 
  
 8.7 Lender Transfer. Upon the transfer of all or any part of the Obligations, Lender may transfer all or part of its security interest in the Collateral and shall be fully discharged thereafter from all
liability and responsibility with respect to such security interest so transferred, and the transferee shall be vested with all the rights and powers of Lender hereunder with respect to such security interest so transferred, but with respect to any
security interest not so transferred, Lender shall retain all rights and powers hereby given. 
  
 8.8 Lender’s Duties. 
  
 (a) Lender shall use reasonable care in the custody and preservation of any Collateral in its possession. Without limitation on other conduct which may be considered the exercise of reasonable care, Lender shall be deemed to have
exercised reasonable care in the custody and preservation of such Collateral if such Collateral is accorded treatment substantially equal to that which Lender accords its own property, it being understood that Lender shall not have any
responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, declining value, tenders or other matters relative to any Collateral, regardless of whether Lender has or is deemed to have knowledge of such
matters; or taking any necessary steps to preserve any rights against any Person with respect to any Collateral. Under no circumstances shall Lender be responsible for any injury or loss to the Collateral, or any part thereof, arising from any cause
beyond the reasonable control of Lender. 
  
 (b) Lender may
at any time deliver the Collateral or any part thereof to Borrower and the receipt of Borrower shall be a complete and full acquittance for the Collateral so delivered, and Lender shall thereafter be discharged from any liability or responsibility
therefor. 
  
 (c) Neither Lender, nor any of its directors,
officers, employees, agents, attorneys or any other person affiliated with or representing Lender shall be liable for any claims, demands, losses or damages, of any kind whatsoever, made, claimed, incurred or suffered by Borrower or any other party
through the ordinary negligence of Lender, or any of its directors, officers, employees, agents, attorneys or any other person affiliated with or representing Lender. 
  
 8.9 Termination of Security Interests. Upon the payment in full of the Obligations and satisfaction of all
Borrower’s obligations under this Agreement and the other Loan Documents, and if Lender has no further obligations under its Commitment, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to
Borrower. Upon any such termination, the Lender shall, at Borrower’s expense, execute and deliver to Borrower such documents as Borrower shall reasonably request to evidence such termination. 
  
 ARTICLE 9 - GENERAL PROVISIONS 
  
 9.1 Notices. Any notice given by any party under any Loan Document
shall be in writing and personally delivered, sent by overnight courier, or United States mail, postage prepaid, or sent by facsimile, or other authenticated message, charges prepaid, to the other party’s or parties’ addresses shown on the
Supplement. Each party may change the address or facsimile number to which notices, requests and other communications are to be sent by giving written notice of such change to each other party. Notice given by hand delivery shall be deemed received
on the date delivered; if sent by overnight courier, on the next Business Day after delivery to the courier service; if by first class mail, on the third Business Day after deposit in the U.S. Mail; and if by facsimile, on the date of transmission.

  
 9.2 Binding Effect. The Loan Documents shall be binding
upon and inure to the benefit of Borrower and Lender and their respective successors and assigns; provided, however, that Borrower may not assign or transfer Borrower’s rights or obligations under any Loan Document. Lender reserves the right to
sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Lender’s rights and obligations under the Loan Documents. In connection with any of the foregoing, Lender may disclose all documents and
information which Lender now or hereafter may have relating to 

 
the Loans, Borrower, or its business; provided that any person who receives such information shall have agreed in writing in advance to maintain the
confidentiality of such information on terms reasonably acceptable to Borrower. 
  
 9.3 No Waiver. Any waiver, consent or approval by Lender of any Event of Default or breach of any provision, condition, or covenant of any Loan Document must be in writing and shall be effective only to the
extent set forth in writing. No waiver of any breach or default shall be deemed a waiver of any later breach or default of the same or any other provision of any Loan Document. No failure or delay on the part of Lender in exercising any power,
right, or privilege under any Loan Document shall operate as a waiver thereof, and no single or partial exercise of any such power, right, or privilege shall preclude any further exercise thereof or the exercise of any other power, right or
privilege. Lender has the right at its sole option to continue to accept interest and/or principal payments due under the Loan Documents after default, and such acceptance shall not constitute a waiver of said default or an extension of the Maturity
Date unless Lender agrees otherwise in writing. 
  
 9.4 Rights
Cumulative. All rights and remedies existing under the Loan Documents are cumulative to, and not exclusive of, any other rights or remedies available under contract or applicable law. 
  
 9.5 Unenforceable Provisions. Any provision of any Loan Document executed by Borrower which is prohibited or
unenforceable in any jurisdiction, shall be so only as to such jurisdiction and only to the extent of such prohibition or unenforceability, but all the remaining provisions of any such Loan Document shall remain valid and enforceable. 
  
 9.6 Accounting Terms. Except as otherwise provided in this Agreement,
accounting terms and financial covenants and information shall be determined and prepared in accordance with GAAP. 
  
 9.7 Indemnification; Exculpation. Borrower shall pay and protect, defend and indemnify Lender and Lender’s employees, officers, directors,
shareholders, affiliates, correspondents, agents and representatives (other than Lender, collectively “Agents”) against, and hold Lender and each such Agent harmless from, all claims, actions, proceedings, liabilities, damages (excluding
any special, punitive or consequential damages), losses, expenses (including, without limitation, reasonable attorneys’ fees and costs) and other amounts incurred by Lender and each such Agent, arising from (i) the matters contemplated by this
Agreement or any other Loan Documents, (ii) any dispute between Borrower and a third party, or (iii) any contention that Borrower has failed to comply with any law, rule, regulation, order or directive applicable to Borrower’s business;
provided, however, that this indemnification shall not apply to any of the foregoing incurred as the result of Lender’s or any Agent’s gross negligence or willful misconduct. This indemnification shall survive the payment and
satisfaction of all of Borrower’s Obligations to Lender. 
  
 9.8 Reimbursement. Subject to the limitations set forth in Section 11 of Part 2 of the Supplement, Borrower shall reimburse Lender for all costs and expenses, including without limitation reasonable attorneys’ fees and
disbursements expended or incurred by Lender in any arbitration, mediation, judicial reference, legal action or otherwise in connection with (a) the preparation and negotiation of the Loan Documents, (b) the amendment and enforcement of the Loan
Documents, including without limitation during any workout, attempted workout, and/or in connection with the rendering of legal advice as to Lender’s rights, remedies and obligations under the Loan Documents, (c) collecting any sum which
becomes due Lender under any Loan Document, (d) any proceeding for declaratory relief, any counterclaim to any proceeding, or any appeal, or (e) the protection, preservation or enforcement of any rights of Lender. For the purposes of this section,
attorneys’ fees shall include, without limitation, fees incurred in connection with the following: (1) contempt proceedings; (2) discovery; (3) any motion, proceeding or other activity of any kind in connection with an Insolvency Proceeding;
(4) garnishment, levy, and debtor and third party examinations; and (5) postjudgment motions and proceedings of any kind, including without limitation any activity taken to collect or enforce any judgment. All of the foregoing costs and expenses
shall be payable upon demand by Lender, and if not paid within forty-five (45) days of presentation of invoices shall bear interest at the highest applicable Default Rate. 
  
 9.9 Execution in Counterparts. This Agreement may be executed in any number of counterparts which, when taken
together, shall constitute but one agreement. 
  
 9.10 Entire
Agreement. The Loan Documents are intended by the parties as the final 

 
expression of their agreement and therefore contain the entire agreement between the parties and supersede all prior understandings or agreements concerning
the subject matter hereof. This Agreement may be amended only in a writing signed by Borrower and Lender. 
  
 9.11 Governing Law and Jurisdiction. 
  
 (a) THIS AGREEMENT AND THE LOAN DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA.

  
 (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF CALIFORNIA OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF BORROWER AND LENDER CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF BORROWER AND LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS,
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. BORROWER AND LENDER EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY CALIFORNIA LAW. 
  
 9.12 Waiver of Jury Trial. BORROWER AND LENDER EACH WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN
DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS,
TORT CLAIMS, OR OTHERWISE. BORROWER AND LENDER EACH AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEMS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR
THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
  
 ARTICLE 10 - DEFINITIONS 
  
 The definitions appearing in this Agreement or any Supplement shall be applicable to both the singular and plural forms of the defined terms: 

 
 “Account” means any “account,” as such term is defined in the
UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts and other forms of obligations (other than
forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter received or acquired by or belonging or owing to Borrower (including, without limitation, under any trade name, style or division thereof) whether
arising out of goods sold or services rendered by Borrower or from any other transaction, whether or not the same involves the sale of goods or services by Borrower (including, without limitation, any such obligation that may be characterized as an
account or contract right under the UCC) and all of Borrower’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of Borrower’s rights to any goods represented by
any of the foregoing (including, without limitation, unpaid seller’s rights of rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and all monies due or to become due to Borrower
under all purchase orders and contracts for the sale of goods or the performance of services or both by Borrower or in connection with any other transaction (whether or not yet earned by performance on the part of Borrower), now in existence or
hereafter 

 
occurring, including, without limitation, the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees
of any kind given by any Person with respect to any of the foregoing. 
  
 “Affiliate” means any Person which directly or indirectly controls, is controlled by, or is under common control with Borrower. “Control,” “controlled by” and “under common control with” mean
direct or indirect possession of the power to direct or cause the direction of management or policies (whether through ownership of voting securities, by contract or otherwise); provided, that control shall be conclusively presumed when any Person
or affiliated group directly or indirectly owns fifty percent (50%) or more of the securities having ordinary voting power for the election of directors of a corporation. 
  
 “Agreement” means this Loan Agreement and each Supplement thereto, as each may be amended or supplemented from time to
time. 
  
 “Bankruptcy Code” means the Federal Bankruptcy Reform
Act of 1978 (11 U.S.C. §101, et seq.), as amended. 
  
 “Basic Interest” means the fixed rate of interest payable on the outstanding balance of each Loan at the applicable Designated Rate. 
  

“Borrowing Date” means the Business Day on which the proceeds of a Loan are disbursed by Lender. 
  
 “Borrowing Request” means a written request from Borrower in substantially
the form of Exhibit “B” to the Supplement, requesting the funding of one or more Loans on a particular Borrowing Date. 
  
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York City or San Francisco are authorized or
required by law to close. 
  
 “Chattel Paper” means any
“chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Closing Date” means the date of this Agreement. 
  
 “Collateral” means all of Borrower’s right, title and interest in and to the following property, whether now owned or
hereafter acquired and wherever located: (a) all Receivables; (b) all Equipment; (c) all Fixtures; (d) all General Intangibles (specifically excluding the Unpledged Intellectual Property); (e) all Inventory; (f) all Investment Property; (g) all
Deposit Accounts; (h) all other Goods and personal property of Borrower, whether tangible or intangible and whether now or hereafter owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever located; (i) all Records; and
(j) all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of each of the foregoing. 
  

“Commitment” means the obligation of Lender to make Loans to Borrower up to the aggregate principal amount set forth in the Supplement. 
  
 “Copyright License” means any written agreement granting any right to use
any Copyright or Copyright registration now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Copyrights” means all of the following now owned or hereafter acquired by Borrower or in which Borrower now hold or hereafter acquires any interest: (i)
all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof or of any other country; (ii) all registrations, applications and recordings in the United States Copyright Office or in any
similar office or agency of the United States, any State thereof or any other country; (iii) all continuations, renewals or extensions thereof; and (iv) any registrations to be issued under any pending applications. 
  
 “Corporate Funding Conditions” means the occurrence of each and all of the
following: 
  
 (a) Chip Scarlett (“Scarlett”) is then serving on a
full-time basis as Borrower’s Chief Executive Officer; 
  
 (b) Scarlett
delivers to Lender a written certification that Genentech has not terminated or revoked the license agreement between Borrower and Genentech relating to Borrower’s core technology, and that he is not aware of any current intention by Genentech
to revoke or terminate such license agreement; and 
  
 (c) Borrower’s new
drug application submission for Severe Primary IGFD (the “NDA Submission”) has not been rejected by the United States Food and Drug Administration (“FDA”), without being subsequently refiled by Borrower with the FDA. and accepted
by the FDA; 

 (d) Scarlett delivers to Lender a written certification that the FDA has not issued to Borrower a non-approvable letter
with respect to the NDA Submission. 
  
 “Default” means an event
which with the giving of notice, passage of time, or both would constitute an Event of Default. 
  
 “Default Rate” is defined in Section 2.7. 
  
 “Deposit Accounts” means any “deposit accounts,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest. 
  
 “Designated Rate” means the rate of interest per
annum described in the Supplement as being applicable to an outstanding Loan from time to time. 
  
 “Documents” means any “documents,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest.

  
 “Environmental Laws” means all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental authorities, in each case
relating to environmental, health, or safety matters. 
  
 “Equipment” means any “equipment,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and any and all additions,
substitutions and replacements of any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. 
  
 “Event of Default” means any event described in Section 7.1. 
  
 “Fixtures” means any “fixtures,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower
or in which Borrower now holds or hereafter acquires any interest. 
  
 “GAAP” means generally accepted accounting principles and practices consistent with those principles and practices promulgated or adopted by the Financial Accounting Standards Board and the Board of the American Institute
of Certified Public Accountants, their respective predecessors and successors. Each accounting term used but not otherwise expressly defined herein shall have the meaning given it by GAAP. 
  
 “General Intangibles” means any “general intangibles,” as such
term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all right, title and interest that Borrower may now or
hereafter have in or under any contract, all customer lists, Copyrights, Trademarks, Patents, websites, domain names, and all applications therefor and reissues, extensions, or renewals thereof, other rights to Intellectual Property, interests in
partnerships, joint ventures and other business associations, Licenses, permits, trade secrets, proprietary or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge,
know-how, software, data bases, data, skill, expertise, recipes, experience, processes, models, drawings, materials and records, goodwill (including, without limitation, the goodwill associated with any Trademark, Trademark registration or Trademark
licensed under any Trademark License), claims in or under insurance policies, including unearned premiums, uncertificated securities, money, cash or cash equivalents, deposit, checking and other bank accounts, rights to sue for past, present and
future infringement of Copyrights, Trademarks and Patents, rights to receive tax refunds and other payments and rights of indemnification. 
  
 “Goods” means any “goods,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or
hereafter acquires any interest. 
  
 “Indebtedness” of any Person
means at any date, without duplication and without regard to whether matured or unmatured, absolute or contingent: (i) all obligations of such Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, notes, or
other similar instruments; (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business; (iv) all obligations of such Person as lessee under
capital leases; (v) all obligations of such Person 

 
to reimburse or prepay any bank or other Person in respect of amounts paid under a letter of credit, banker’s acceptance, or similar instrument, whether
drawn or undrawn; (vi) all obligations of such Person to purchase securities which arise out of or in connection with the sale of the same or substantially similar securities; (vii) all obligations of such Person to purchase, redeem, exchange,
convert or otherwise acquire for value any capital stock of such Person or any warrants, rights or options to acquire such capital stock, now or hereafter outstanding, except to the extent that such obligations remain performable solely at the
option of such Person; (viii) all obligations to repurchase assets previously sold (including any obligation to repurchase any accounts or chattel paper under any factoring, receivables purchase, or similar arrangement); (ix) obligations of such
Person under interest rate swap, cap, collar or similar hedging arrangements; and (x) all obligations of others of any type described in clause (i) through clause (ix) above guaranteed by such Person. 
  
 “Insolvency Proceeding” means (a) any case, action or proceeding before any
court or other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the benefit of creditors, composition, marshalling
of assets for creditors, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors, undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code. 
  
 “Instruments” means any “instrument,” as such term is defined in
the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Intellectual Property” means all Copyrights, Trademarks, Patents, Licenses, trade secrets, source codes, customer lists, proprietary or confidential
information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge, know-how, software, data bases, skill, expertise, experience, processes, models, drawings, materials, records and goodwill
associated with the foregoing. 
  
 “Intellectual Property Security
Agreement” means any Intellectual Property Security Agreement executed and delivered by Borrower in favor of Lender, as the same may be amended, supplemented, or restated from time to time. 
  
 “Inventory” means any “inventory,” as such term is defined in the
UCC, wherever located, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, and, in any event, shall include, without limitation, all inventory, goods and other personal property that are
held by or on behalf of Borrower for sale or lease or are furnished or are to be furnished under a contract of service or that constitute raw materials, work in process or materials used or consumed or to be used or consumed in Borrower’s
business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in transit or in the constructive, actual or exclusive possession of Borrower or is held by others for
Borrower’s account, including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all such property first may be in the possession or custody of any carriers,
forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons. 
  
 “Investment Property” means any “investment property,” as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 

 
 “Letter of Credit Rights” means any “letter of credit rights,”
as such term is defined in the UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest, including any right to payment under any letter of credit. 
  
 “License” means any Copyright License, Patent License, Trademark License or
other license of rights or interests now held or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest and any renewals or extensions thereof. 
  
 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance,
levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a security interest, and the filing
of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction.  

 “Loan” means an extension of credit by Lender under this Agreement. 
  
 “Loan Documents” means, individually and collectively, this Loan Agreement,
each Supplement, each Note, the Intellectual Property Security Agreement, and any other security or pledge agreement(s) executed in connection with this Agreement, and all other contracts, instruments, addenda and documents executed in connection
with this Agreement or the extensions of credit which are the subject of this Agreement. 
  
 “Material Adverse Effect” or “Material Adverse Change” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, or condition
(financial or otherwise) of Borrower; (b) a material impairment of the ability of Borrower to perform under any Loan Document; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against Borrower of any
Loan Document. 
  
 “Maturity Date” means, with regard to a Loan,
the earlier of (i) its maturity by reason of acceleration, or (ii) its stated maturity date; and is the date on which payment of all outstanding principal, accrued interest, and the Terminal Payment with respect to such Loan is due. 
  
 “Note” means a promissory note substantially in the form attached to the
Supplement as Exhibit “A”, executed by Borrower evidencing each Loan. 
  
 “Obligations” means all debts, obligations and liabilities of Borrower to Lender currently existing or now or hereafter made, incurred or created under, pursuant to or in connection with this Agreement or any other Loan
Document, whether voluntary or involuntary and however arising or evidenced, whether direct or acquired by Lender by assignment or succession, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined,
and whether Borrower may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable; and all renewals, extensions and modifications thereof; and all
attorneys’ fees and costs incurred by Lender in connection with the collection and enforcement thereof as provided for in any Loan Document. 
  
 “Patent License” means any written agreement granting any right with respect to any invention on which a Patent is in existence now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Patents” means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (a) all letters patent of, or rights corresponding thereto in, the
United States or any other county, all registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto in, the United States or any other country, including, without limitation, registrations,
recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country; (b) all reissues, continuations, continuations-in-part or extensions
thereof; (c) all petty patents, divisionals, and patents of addition; and (d) all patents to be issued under any such applications. 
  
 “Permitted Lien” means: 
  
 (a) involuntary Liens; 
  
 (b) Liens for current taxes or other governmental or regulatory assessments which are not delinquent, or which are contested in good faith by the
appropriate procedures and for which appropriate reserves are maintained in accordance with GAAP; 
  
 (c) security interests on any property held or acquired by Borrower in the ordinary course of business securing Indebtedness incurred or assumed
for the purpose of financing all or any part of the cost of acquiring such property; provided, that such Lien attaches solely to the property acquired with such Indebtedness (and the proceeds of such property), and that the principal amount
of such Indebtedness does not exceed one hundred percent (100%) of the cost of such property; and further provided, that such property is not equipment or other Collateral with respect to which a Loan has been made hereunder;

  
 (d) Liens in favor of Lender; 
  
 (e) bankers’ liens, rights of setoff and similar Liens incurred
on deposits made in the ordinary course of business; 
  
 (f) materialmen’s, mechanics’, repairmen’s, employees’ or other like Liens arising in the ordinary course of business and which are not delinquent for more than 45 days or are being contested in good faith by
appropriate proceedings; 

 (g) any judgment, attachment or similar Lien, so long as the same either (A) does not secure
Indebtedness in excess of $5,000,000 individually or in aggregate, or (B) secures Indebtedness in excess of $5,000,000 individually or in aggregate and the holders of such Lien have not initiated formal action to execute or foreclose upon the
Collateral; 
  
 (h) exclusive or non-exclusive licenses or
sublicenses of Patents, Patent Licenses, Trademarks or Trademark Licenses made or entered into in the ordinary course of Borrower’s business and consistent with industry practice, including pursuant to research and development collaborations;

  
 (i) Liens to secure Indebtedness permitted under
Section 6.1 hereof; and 
  
 (j) Liens which have been
approved by Lender in writing prior to the Closing Date. 
  
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, other entity
or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof). 
  
 “Proceeds” means “proceeds,” as such term is defined in the UCC and, in any event, shall include, without
limitation, (a) any and all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to Borrower from time to time in respect of the Collateral, (b) any and all proceeds of any insurance, indemnity,
warranty or guaranty payable to Borrower from time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to Borrower from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) any claim of Borrower against third parties (i) for past, present
or future infringement of any Copyright, Patent or Patent License or (ii) for past, present or future infringement or dilution of any Trademark or Trademark License or for injury to the goodwill associated with any Trademark, Trademark registration
or Trademark licensed under any Trademark License and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. 
  
 “Qualified Public Offering” means the closing of a firmly underwritten public offering of Borrower’s common stock with
aggregate proceeds of not less than $20,000,000 (prior to underwriting expenses and commissions). 
  
 “Receivables” means all of Borrower’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and Letter of Credit Rights. 
  
 “Records” means all Borrower’s computer programs, software, hardware,
source codes and data processing information, all written documents, books, invoices, ledger sheets, financial information and statements, and all other writings concerning Borrower’s business. 
  
 “Related Person” means any Affiliate of Borrower, or any officer, employee,
director or equity security holder of Borrower or any Affiliate. 
  
 “Rights to Payment” means all Borrower’s accounts, instruments, contract rights, documents, chattel paper and all other rights to payment, including, without limitation, the Accounts, all negotiable certificates of
deposit and all rights to payment under any Patent License, any Trademark License, or any commercial or standby letter of credit. 
  
 “Security Documents” means this Loan Agreement, the Supplement hereto, the Intellectual Property Security Agreement, and any and all account control
agreements, collateral assignments, chattel mortgages, financing statements, amendments to any of the foregoing and other documents from time to time executed or filed to create, perfect or maintain the perfection of Lender’s Liens on the
Collateral. 
  
 “Subordinated Debt” means any Indebtedness
incurred by Borrower that is subordinated to the Indebtedness owing by Borrower to Lender in accordance with the provisions of Section 4 of Part 2 of the Supplement. 
  
 “Supplement” means that certain supplement to the Loan Agreement, as the same may be amended or restated from time to time,
and any other supplements entered into between Borrower and Lender, as the same may be amended or restated from time to time. 

 “Supporting Obligations” means any “supporting obligations,” as such term is defined in the
UCC, now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Terminal Payment” means, with respect to a Loan, an amount payable on the Maturity Date of such Loan in an amount equal to that percentage of the
original principal amount of such Loan specified in the Supplement. 
  
 “Termination Date” has the meaning specified in the Supplement. 
  
 “Threshold Amount” has the meaning specified in the Supplement. 
  
 “Trademark License” means any written agreement granting any right to use any Trademark or Trademark registration now owned or hereafter acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest. 
  
 “Trademarks” means all of the following property now owned or hereafter acquired by Borrower or in which Borrower now holds or hereafter acquires any interest: (a) all trademarks, tradenames, corporate names, business
names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared or appear, designs and general intangibles of like nature, now existing or hereafter adopted or acquired,
all registrations and recordings thereof, and any applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of
the United States, any State thereof or any other country or any political subdivision thereof and (b) reissues, extensions or renewals thereof. 
  
 “UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of California; provided, that in the event
that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a
jurisdiction other than the State of California, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment,
perfection, priority or remedies and for purposes of definitions related to such provisions. Unless otherwise defined herein, terms that are defined in the UCC and used herein shall have the meanings given to them in the UCC. 
  
 “Unpledged Intellectual Property” means those particular Intellectual
Property rights of Borrower that are implicated by Borrower’s license agreements with Genentech and Fujisawa, and any intellectual property that is in-licensed by Borrower from a third party, including without limitation Genetech and Fujisawa,
and any internal improvements relating to such technology. 
  
 [Signature Page Follows] 

 [Signature Page to Loan Agreement] 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written. 
  
 BORROWER: 
  

			
	TERCICA, INC.
		
	By:	 	 /s/ Timothy P. Lynch

	Name:	 	Timothy P. Lynch
	Title:	 	Chief Financial Officer
	
	LENDER:
	
	VENTURE LENDING & LEASING IV, INC.
		
	By:	 	 /s/ Brian Best

  

	Name:	 	 Brian Best

  

	Title:	 	 Vice President

 SUPPLEMENT 
 to the 
 Loan Agreement 
 Dated as of January 21, 2005 
 between 
 Tercica, Inc. (“Borrower”) 
 and 
 Venture Lending & Leasing IV, Inc. (“Lender”) 
  
 This is a Supplement identified in the document entitled Loan Agreement dated
as of January 21, 2005, between Borrower and Lender. All capitalized terms used in this Supplement and not otherwise defined in this Supplement have the meanings ascribed to them in Section 10 of the Loan Agreement, which is incorporated in its
entirety into this Supplement. In the event of any inconsistency between the provisions of that document and this Supplement, this Supplement is controlling. 
  
 In addition to the provisions of the Loan Agreement, the parties agree as follows: 
  
 Part 1. - Additional Definitions: 
  
 “Commitment”: Subject to the terms and conditions set forth in the Loan Agreement and this Supplement,
Lender commits to make Working Capital Loans to Borrower up to the aggregate original principal amount of Fifteen Million Dollars ($15,000,000.00). Working Capital Loans are sometimes referred to herein individually as a “Loan” or
collectively as “Loans”. 
  
 “Commitment
Extension Request” is defined in Section 5 of Part 2 of this Supplement. 
  
 “Designated Rate”: The Designated Rate for each Loan shall be a fixed rate of interest per annum equal to the seven and one-half percent (7.50%) per annum. 
  
 “Loan Commencement Date” means, with respect to a Loan, the
first day of the first full calendar month following the Borrowing Date of such Loan if such Borrowing Date is not the first day of a month; and is the same day as the Borrowing Date if the Borrowing Date is the first day of a month. 
  
 “Terminal Payment”: Each Working Capital Loan shall have a
Terminal Payment equal to nine and 221/1000 (9.221%) percent of the original principal amount of such Working Capital Loan. 
  
 “Termination Date”: The Termination Date is the earlier of: (a) the date Lender may terminate making Loans or extending other credit
pursuant to the rights of Lender under Article 7 of the Loan Agreement: or (b) April 30, 2005, unless prior to that date Borrower has delivered its Commitment Extension Request, in which event the Termination Date shall be either (x) if as of April
30, 2005, Borrower has not yet completed the closing of a follow-on equity round in the amount of at least Forty Million Dollars ($40,000,000), June 30, 2005, unless on or before June 30, 2005, Borrower’s NDA Submission has been rejected
the FDA, without being subsequently refiled by Borrower and accepted by the FDA, in which case the Termination Date shall be extended to August 31, 2005 to enable Borrower time to refile and have accepted the NDA Submission, or (y) if on or before
April 30, 2005, Borrower has completed the closing of a follow-on equity round in the amount of at least Forty Million Dollars ($40,000,000), December 31, 2005, unless on or before December 31, 2005, Borrower’s NDA Submission has been
rejected, without being subsequently refiled and accepted, in which case the Termination Date shall be extended to February 28, 2006 to enable Borrower time to refile and have accepted the NDA Submission. 
  
 “Threshold Amount” means Two Hundred Fifty Thousand Dollars
($250,000). 
  
 “Working Capital Loan” means any
Loan requested by Borrower and funded by Lender under the Commitment for general corporate purposes of Borrower. 

 Part 2. - Additional Covenants and Conditions: 
  
 1. Use of Proceeds; Limitations on Loans. 
  
 (a) Working Capital Loans. Subject to the terms and conditions of the
Loan Agreement and this Supplement, Lender agrees to make Working Capital Loans to Borrower from time to time from the Closing Date up to and including the Termination Date in an aggregate original principal amount up to but not exceeding the then
unfunded portion of the Working Capital Loan Commitment. The proceeds of each Working Capital Loan shall be used by Borrower for general corporate purposes. 
  
 (b) Minimum Funding Amount. Except to the extent the remaining Commitment is a lesser amount, any Loan(s)
requested by Borrower to be made on a single Business Day shall be for a minimum aggregate principal amount of One Million Dollars ($1,000,000.00). Borrower shall not submit a Borrowing Request more frequently than once each month. 
  
 2. Repayment of Loans. Principal of and interest on each Loan
shall be payable as set forth in the Note evidencing such Loan, in substantially in the form attached hereto as Exhibit “A”. 
  
 (a) Payments on Borrowing Date. If the Borrowing Date of a Loan coincides with the Loan Commencement Date for such Loan, then on the Borrowing
Date, Borrower shall pay interest only, in advance for the ensuing month, on the outstanding principal balance of the Loan at the rate of 604/1000 of one percent (0.604%) per month. If the Borrowing Date is earlier than the Loan Commencement Date,
then on the Borrowing Date, Borrower shall pay (i) interest only at the daily equivalent of 604/1000 of one percent (0.604%) per month, in advance, on the outstanding principal balance of the Loan for the period from the Borrowing Date through the
last day of the calendar month in which such Borrowing Date occurs, and (ii) a first monthly payment of interest only, in advance, for the month commencing on the Loan Commencement Date, at the rate of 604/1000 of one percent (0.604%) per month.

  
 (b) Subsequent Payments. Commencing on the first day of
the second full calendar month following the Borrowing Date of a Loan, and continuing for each of the next succeeding four (4) months, Borrower shall make five (5) monthly payments of interest only, in advance, on the outstanding principal balance
of the Loan at the rate of 604/1000 of one percent (0.604%) per month. Commencing on the first day of the 7th full
calendar month after the Borrowing Date of such Loan, and continuing on the first day of each consecutive calendar month thereafter, principal of and interest on such Loan at the Designated Rate shall be payable, in advance, in thirty (30) equal,
consecutive installments of principal and interest, followed by the Terminal Payment on such Loan, all as more particularly set forth in the payment schedule to be prepared by the parties at the time of execution of the Note evidencing such Loan,
consistent with the terms of this Section 2. 
  
 3.
Prepayments. No Loan may be voluntarily prepaid except as provided in this Section 3. Borrower may voluntarily prepay all, but not less than all, Loans in whole, but not in part, at any time by tendering to Lender cash payment in respect of
such Loans in an amount equal to: (i) all accrued and unpaid Basic Interest on such Loans as of the date of prepayment; (ii) the Terminal Payments on such Loans; and (iii) an amount equal to the undiscounted, total amount of all installment payments
of principal and Basic Interest that would have accrued and been payable from the date of prepayment through the stated Maturity Date of the Loans had such Loans remained outstanding and been paid in accordance with the terms of the related Notes.
The Loans shall also be subject to prepayment in the events and in the amounts described in Section 6.5 of the Loan Agreement. 
  
 4. Subordination of Debt. During the term of the Loan Agreement and until performance of all Obligations to Lender, Borrower shall not incur or
permit to exist any Indebtedness for borrowed money (except for Indebtedness permitted under Section 6.1 of the Loan Agreement) unless the holder’s right to repayment of such Indebtedness, the priority of any Lien securing the same, and the
rights of the holder thereof to enforce remedies against Borrower following default have been made subordinate to the Liens of Lender and the prior payment of the Obligations to Lender under the Loan Documents pursuant to a written subordination
agreement approved by Lender in its reasonable discretion in writing, which agreement may provide that regularly scheduled payments of accrued interest on such subordinated Indebtedness may be paid by Borrower and retained by the holder so long as
no Event of Default has occurred; provided, however, that nothing in this Section 4 shall limit in any manner 
  

 2 

 Borrower’s ability to issue convertible subordinated debt if the terms of subordination thereof are no less
favorable to Lender than those which are typically applicable in convertible subordinated debt of comparable companies then issued pursuant to Rule 144A of the Securities Act of 1933. 
  
 5. Issuance of Stock to Lender. 
  
 (a) As additional consideration for the making of the Commitment, Lender or its assignee has earned and shall have received
in escrow, upon the execution hereof and as a condition to the initial Loan: (i) seventy-five thousand (75,000) fully paid and nonassessable shares of Borrower’s Common Stock. If Borrower elects to extend the Termination Date (i.e., the
availability of Lender’s commitment) beyond April 30, 2005 by giving Lender written notice of such election prior to April 30, 2005 (a “Commitment Extension Request”), then within five (5) Business Days of giving such Request Borrower
shall issue and deliver to the escrow account established for the benefit of Lender or its assignee an additional thirty-seven thousand five hundred (37,500) full paid and nonassessable shares of Borrower’s Common Stock; provided,
however, that if and when Borrower requests the initial Loan, Lender elects not to fund on the basis of Borrower’s failure to satisfy all of the Corporate Funding Conditions and/or the occurrence of an Event of Default under Section 7.1(f) or
7.1(h) of the Loan Agreement, then Lender shall return, or cause its assignee to return to Borrower the $75,000 commitment fee described in Section 8 below, as well as to release to Borrower from escrow the initial 75,000 shares of Common Stock
issued to Lender upon execution of the Loan Documents and, if applicable, the additional 37,500 shares issued in connection with Borrower’s Commitment Extension Request... 
  
 (b) If and when Borrower requests and Lender advances the initial Loan, then as an additional condition precedent to such
Loan, Borrower shall issue and deliver directly to Lender or its assignee within five (5) Business Days of the Borrowing Date of such Loan an additional fifty-six thousand two hundred fifty (56,250), fully paid and nonassessable shares of
Borrower’s Common Stock. 
  
 (c) If and when Borrower
requests and Lender advances a Loan the principal amount of which causes the aggregate original principal amount of all prior Loans to exceed $5,000,000, then as an additional condition precedent to such Loan, Borrower shall issue and deliver
directly to Lender or its assignee within five (5) Business Days of the Borrowing Date of such Loan an additional fifty-six thousand two hundred fifty (56,250) fully paid and nonassessable shares of Borrower’s Common Stock. 
  
 (d) Borrower’s obligations to issue its shares of Common Stock to Lender
under this Section 5 shall constitute a covenant under Article 5 of the Loan Agreement. Borrower acknowledges that Lender has assigned its rights to receive all such shares of Common Stock to its parent, Venture Lending & Leasing IV, LLC
(“VLL”); in connection therewith, Borrower shall issue all such shares of Common Stock directly to VLL. Upon request of Borrower, Lender shall furnish to Borrower a copy of the agreement in which Lender assigned the shares to VLL.
Contemporaneous with the execution of this Supplement, VLL and Borrower shall enter into a Common Stock Agreement in form and substance mutually acceptable to the parties, which shall grant to VLL piggy-back registration rights with respect to the
shares of Common Stock issuable under this Section 5. This covenant shall also be a condition precedent to the initial Loan pursuant to Section 4.1 of the Loan Agreement. 
  
 6. No Lien on Certain Intellectual Property. Lender agrees to exclude the Unpledged Intellectual Property from the
Collateral over which Borrower has granted to Lender a Lien to secure the Obligations. 
  
 7. Forbearance of Exercise of Remedies Against Intellectual Property. 
  
 (a) Notwithstanding anything to the contrary contained in Article 7 and 8 of the Loan Agreement or elsewhere in the Loan Documents, following the
occurrence and during the continuance of an Event of Default, other than an Event of Default under Section 7.1(c) involving a voluntary Insolvency Proceeding or dissolution of Borrower or termination of Borrower’s business, or an Event of
Default under Section 7.1(f) or (h), Lender agrees to forbear from selling, leasing, licensing or otherwise disposing of any Collateral comprising Intellectual Property for a period of up to ninety (90) days after the occurrence of such Event of
Default (such 90-day period being referred to herein as the “Forbearance Period”), provided that at all times during the Forbearance Period: 
  

	 	(i)	Borrower shall continue to have a duly constituted and acting board of directors, and executive management working on a full time basis for Borrower; 

  

 3 

	 	(ii)	Borrower is exercising on a continuous and diligent basis reasonable commercial efforts to consummate a financing or other transaction that will enable it to satisfy and discharge
its Obligations to Lender; 

  

	 	(iii)	Borrower shall cooperate with Lender in its exercise of rights under Sections 5.9 of the Loan Agreement; 

  

	 	(iv)	No Insolvency Proceeding is commenced by or against Borrower; and 

  

	 	(v)	No Person who holds or acquires a Lien on or against all or any material portion of Borrower’s Intellectual Property actually exercises foreclosure or similar remedies against
such property. 

  
 Subject to paragraph (b) below, upon the breach
of any of the events under clauses (i) through (v) above, the Forbearance Period shall immediately and automatically terminate and Lender may thereupon commence, continue and complete any exercise of its rights and remedies against Intellectual
Property Collateral, all as provided in the Loan Documents and under applicable law. 
  
 (b) If during the Forbearance Period, Lender proposes or arranges a private or public sale of all or a material portion of the Intellectual Property Collateral (which sale shall not be consummated during the
Forbearance Period), Lender shall give notice of such proposed sale to Borrower, including notice of the minimum price to be paid or bid in such sale. If Borrower’s Board of Director determines in good faith that the proposed sale would not be
commercially reasonable, then Borrower may, within five (5) Business Days of receipt of the initial notice from Lender, deliver a written objection, following which the parties agree to meet promptly and to confer in good faith to resolve any
disagreements as to value or the proposed sale. Unless the parties have otherwise agreed as a result of such meet-and-confer, Borrower shall obtain, at its sole expense, within thirty (30) days after the initial notice from Lender, a written
appraisal of the orderly liquidation value of the Intellectual Property, prepared by a recognized, independent appraiser with experience evaluating similar types of property (in which event, the 60-day limitation on the Forbearance Period shall be
extended if, and only as, necessary to afford Borrower the full thirty (30) days to obtain such appraisal). If such appraisal is not timely delivered, or if the value concluded by the independent appraisal is not more than one hundred twenty percent
(120%) of the minimum price or bid in any transaction proposed by Lender for the same Intellectual Property Collateral, then Lender may proceed with the proposed transaction (but not sooner than the expiration of the Forbearance Period unless
Borrower approves otherwise) on price terms not materially more favorable to the transferee than originally proposed by Lender. If the value concluded by the independent appraisal is more than one hundred twenty percent (120%) of the minimum price
or bid in any transaction proposed by Lender, then the 90-day limitation on the Forbearance Period (as may have been extended for the appraisal as aforesaid) shall be extended and the parties shall cooperate with one another to realize the higher
valuation, provided that if the Forbearance Period (as so extended) terminates for any reason other than that set forth in clause (ii) of paragraph (a) above, Lender may thereupon commence, continue and complete any exercise of its rights and
remedies against Intellectual Property Collateral, all as provided in the Loan Documents and under applicable law, and in all events, Lender shall be free to enforce such rights and remedies and complete one or more sales or other dispositions of
the Intellectual Property after the earlier of (i) one hundred eighty (180) days after the occurrence of the Event of Default, or (ii) one hundred twenty (120) days after the delivery of the appraisal report to Borrower. 
  
 (c) At any time during the Forbearance Period, Lender will discontinue and
forbear from enforcing its rights and remedies against the Collateral upon tender to Lender by Borrower or by another Person for its account all amounts payable under Section 3 of Part 2 of this Supplement. 
  
 8. Completion of Due Diligence; Payment and Disposition of
Commitment Fee. The parties acknowledge that Borrower previously has paid to Lender a commitment fee in the amount of Seventy-five Thousand Dollars ($75,000.00). Lender agrees that if and when Borrower has utilized at least $1,000,000 of the
Commitment, on the Borrowing Date applicable to the Working Capital Loan that satisfies such utilization amount, Lender shall refund the $75,000 commitment fee to Borrower, which refund may take the form of a credit against the payments due from
Borrower on such date in respect of such Working Capital Loan. 
  

 4 

 9. Borrower’s Early Termination of Commitment. At any time prior to the Termination
Date, so long as Borrower has not previously utilized any portion of the Commitment, Borrower may elect to terminate the Commitment by written notice to Lender. Notwithstanding such termination by Borrower, Lender shall be entitled to retain the
$75,000 commitment fee described in Section 8 above, as well as the initial 75,000 shares of Common Stock issued to Lender upon execution of the Loan Documents and, if applicable, the additional 37,500 shares of Common Stock issued in connection
with Borrower’s Commitment Extension Request. 
  
 10.
Debits to Account for ACH Transfers. For purposes of Section 2.2 and 5.10 of the Loan Agreement, Borrower’s Primary Operating Account is: 
  
 To be supplied separately by Borrower to Lender. 
  
 Loans will be advanced to the account specified above and payments will be automatically debited from the same account. 
  
 11. Documentation Fee Payment. As an additional condition precedent
under Section 4.1 of the Loan Agreement and pursuant to Section 9.8(a) thereof, upon the execution of this Supplement, Borrower shall pay to Lender Lender’s reasonable and actual attorneys’ fees, costs and expenses incurred and expended in
connection with the preparation and negotiation of the Loan Documents and Lender’s out-of-pocket costs of perfecting its Liens against Collateral, up to $30,000.00. 
  
 Part 3. - Additional Representations: 
  
 Borrower represents and warrants that as of the Closing Date and each Borrowing Date: 
  

	 	a)	Its chief executive office is located at: 651 Gateway Boulevard, South San Francisco, California 94080. 

  

	 	b)	Its Equipment is located at: 

  
 651 Gateway Boulevard, South San Francisco, California 94080 
  
 Cambrex Bio Sciences Baltimore, Inc., 5901 East Lombard Street, Baltimore, Maryland 21224 
  
 Baxter Pharmaceutical Solutions LLC, 927 South Curry Pike, Bloomington,
Indiana 47402 
  

	 	c)	Its Inventory is located at:. 

  
 651 Gateway Boulevard, South San Francisco, California 94080 
  
 Cambrex Bio Sciences Baltimore, Inc., 5901 East Lombard Street, Baltimore, Maryland 21224 
  
 Baxter Pharmaceutical Solutions LLC, 927 South Curry Pike, Bloomington,
Indiana 47402 
  
 McKesson HBOC, 14665 Rothgeb Dr., Rockville,
MD 20850 
  

	 	d)	Its Records are located at: [same as (a) above]. 

  

	 	e)	In addition to its chief executive office, Borrower maintains offices or operates its business at the following locations: NONE. 

  

	 	f)	Other than its full corporate name, Borrower has conducted business using the following trade names or fictitious business names: Tercica Limited and Tercica Medica, Inc.

  

	 	g)	Borrower’s Delaware state corporation I.D. number is 3464370. 

  

	 	h)	Borrower’s federal tax identification number is 26-0042539. 

  

 5 

	 	i)	Borrower’s Other Deposit and Investment Accounts: In addition to Borrower’s Primary Operating Account at State Street Bank Trust identified above, Borrower
maintains to following other deposit and investment accounts: 

  

	 	    	To be supplied separately by Borrower to Lender. 

  

			
	 	 	 
	 	 	 
		
	 	 	 
		
	 	 	 

  
 Part 4. -
Additional Loan Documents: 
  

			
	 Form of Note for Working Capital Loans
	 	 Exhibit “A”

	 Form of Borrowing Request
 Form of Compliance Certificate
	 	 Exhibit “B”
 Exhibit “C”

	 Form of Intellectual Property Security Agreement
	 	 Exhibit “D”

	 Form of Landlord Waiver
	 	 Exhibit “E”

	 Form of Legal Opinion
	 	 Exhibit “F”

  
 [Signature page
follows.] 
  

 6 

 IN WITNESS WHEREOF, the parties have executed this Supplement as of the date first above written.

  

					
	 	 	BORROWER:
		
	 	 	Tercica, Inc.
			
	 	 	By:	 	 /s/ Timothy P. Lynch

	 	 	Name:	 	Timothy P. Lynch
	 	 	Title:	 	Chief Financial Officer
			
	 Address for Notices:
	 	Attn:	 	Chief Financial Officer
	 	 	 	 	651 Gateway Boulevard, Suite 950
	 	 	 	 	South San Francisco, California 94080
	 	 	 	 	Fax #: (650) 624-4940
		
	 	 	LENDER:
		
	 	 	VENTURE LENDING & LEASING IV, INC.
			
	 	 	By:	 	 /s/ Brian Best

	 	 	Name:	 	 Brian Best

	 	 	Title:	 	 Vice President

			
	 Address for Notices:
	 	Attn:	 	Chief Financial Officer
	 	 	 	 	2010 North First Street, Suite 310
	 	 	 	 	San Jose, California 95131
	 	 	 	 	Fax #: (408) 436-8625

  
  

 7 

 EXHIBIT “A” 
  
 FORM OF PROMISSORY NOTE 
  

			
	 	 	[Note No. X-XXX]
		
	 $__________________
	 	_________________, 2005
	 	 	San Jose, California

  
 The undersigned
(“Borrower”) promises to pay to the order of VENTURE LENDING & LEASING IV, INC., a Maryland corporation (“Lender”), at its office at 2010 North First Street, Suite 310, San Jose, California 95131, or at such other place as
Lender may designate in writing, in lawful money of the United States of America, the principal sum of
                                 Dollars
($            ), with Basic Interest thereon from the date hereof until maturity, whether scheduled or accelerated, at a fixed rate per annum of seven and one-half percent (7.50%)
(the “Designated Rate”), except as otherwise provided herein, together with a Terminal Payment in the sum of [9.221% of face amount of Loan] Dollars
($            ) payable on the Maturity Date. 
  
 This Note is one of the Notes referred to in, and is entitled to all the benefits of, a Loan Agreement dated as of January 21, 2005, between Borrower and
Lender (the “Loan Agreement”). Each capitalized term not otherwise defined herein shall have the meaning set forth in the Loan Agreement. The Loan Agreement contains provisions for the acceleration of the maturity of this Note upon the
happening of certain stated events. 
  
 Principal of and interest
on this Note shall be payable as follows: 
  
 [If the
Borrowing Date of the Loan coincides with the Loan Commencement Date for this Loan] On the Borrowing Date, Borrower shall pay interest only, in advance for the ensuing month, on the outstanding principal balance of this Note at the rate of
604/1000 of one percent (0.604%) per month (the “Interim Rate”). 
  
 [If the Borrowing Date is earlier than the Loan Commencement Date for this Loan] On the Borrowing Date, Borrower shall pay (i) interest only at the daily equivalent of 604/1000 of one percent (0.604%)
per month (the “Interim Rate”), in advance, on the outstanding principal balance of this Note for the period from the Borrowing Date through the last day of the calendar month in which such Borrowing Date occurs, and (ii) a first monthly
payment of interest only, in advance, for the month commencing on the Loan Commencement Date, at the rate of 604/1000 of one percent (0.604%) per month. 
  
 Commencing on the first day of the second full calendar month following the Borrowing Date of this Note, and continuing for each of the next succeeding
four (4) months, Borrower shall make five (5) monthly payments of interest only, in advance, at the Interim Rate on the outstanding principal balance of the Loan. Commencing on the first day of the 7th full calendar month after the Borrowing Date, and continuing on the first day of each consecutive calendar month thereafter, principal of and interest on this
Note at the Designated Rate shall be payable, in advance, in thirty (30) equal, consecutive installments of principal and interest, followed by the Terminal Payment on such Loan on the first day of the next succeeding month. 
  
 This Note may be voluntarily prepaid only as permitted under Section 3 of
Part 2 of the Supplement to the Loan Agreement, and is subject to prepayment upon the happening of certain events set forth in Section 6.5 of the Loan Agreement. 
  
 Any unpaid payments of principal or interest on this Note shall bear interest from their respective maturities, whether
scheduled or accelerated, at a rate per annum equal to the Default Rate. Borrower shall pay such interest on demand. 
  
 Interest, charges and fees shall be calculated for actual days elapsed on the basis of a 360-day year, which results in higher interest, charge or fee
payments than if a 365-day year were used. In no event shall Borrower be obligated to pay interest, charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect. 

 If Borrower is late in making any payment under this Note by more than five (5) days, Borrower agrees to
pay a “late charge” of three and one-half percent (3.5%) of the installment due, but not less than fifty dollars ($50.00) for any one such delinquent payment. This late charge may be charged by Lender for the purpose of defraying the
expenses incidental to the handling of such delinquent amounts. Borrower acknowledges that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Note and represents a fair and reasonable
estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments. Borrower further agrees that proof of actual damages would be costly and inconvenient. Such late charge shall be paid without prejudice to
the right of Lender to collect any other amounts provided to be paid or to declare a default under this Note or any of the other Loan Documents or from exercising any other rights and remedies of Lender. 
  
 This Note shall be governed by, and construed in accordance with, the laws of
the State of California. 
  

			
	 Tercica, Inc.

		
	 By:
	 	  

	 Name:
	 	  

	 Its:
	 	  

 EXHIBIT “B” 
  
 FORM OF BORROWING REQUEST 
 [and NOTICE OF INTENT TO BORROW] 
  
 [Date]

  
 Venture Lending & Leasing IV, Inc. 
 2010 North First Street, Suite 310 
 San Jose, CA 95131 
  
 Re: Tercica, Inc. 
  
 Gentlemen: 
  
 Reference is made to the Loan Agreement dated as of January 21, 2005 (as amended from time to time, the “Loan Agreement”, the capitalized terms
used herein as defined therein), between Venture Lending & Leasing IV, Inc. and Tercica, Inc. (the “Company”). 
  
 The undersigned is the
                                 of the Company, and hereby requests on behalf of
the Company a Loan under the Loan Agreement, and in that connection certifies as follows: 
  
 1. The amount of the proposed Loan is
                                        
and     /100 Dollars ($                    ). The Borrowing Date of the proposed Loan is
                         , 2005. 
  
 2. As of this date, no Default or Event of Default has occurred and is continuing, or will result from the making of the
proposed Loan, and the conditions precedent described in Article 4 of the Loan Agreement have been met. 
  
 3. [If this is the request for the initial Loan] This Borrowing Notice also constitutes Borrower’s Notice of Intent to Borrow, given pursuant
to Section 2.10 of the Loan Agreement, and as such, Borrower hereby grants to Lender continuing security interests in all of the Collateral, and has executed and delivered herewith two original counterparts of the Intellectual Property Security
Agreement. 
  
 The Company shall notify you promptly before the
funding of the Loan if any of the matters to which I have certified above shall not be true and correct on the Borrowing Date. 
  

			
	 Very truly yours,

	
	 Tercica, Inc.

		
	 Name:
	 	  

	 Title:*
	 	 

	*	Must be executed by Borrower’s Chief Financial Officer or other executive officer. 

 EXHIBIT “C” 
  
 QUARTERLY CERTIFICATE 
  
 Venture Lending & Leasing IV, Inc. 
 2010 North First Street, Suite 310

 San Jose, CA 95131 
  
 Re: Tercica, Inc. 
  
 Gentlemen: 
  
 Reference is made to the Loan Agreement dated as of January 21, 2005 (as the same have been and may be amended from time to time, the “Loan Agreement”, the capitalized terms used herein as defined therein),
between Venture Lending & Leasing IV, Inc. and Tercica, Inc. (the “Company”). 
  
 The undersigned authorized representative of the Company submits this report and certificate (“Quarterly Certificate”) to Lender pursuant to Section 5.3 of the Loan Agreement, and hereby certifies as
follows: 
  
 1. As of the date hereof, the Company maintains offices and/or
operations at the following locations: 
  

			
	
  

	  

	 	.

  
 2. As of the date hereof, the Company
maintains Inventory (other than de minimis amounts) at the following locations [if the location is owned, leased of controlled by a third party, please indicate the name, contact person and phone number for such third party]: 
  

			
	
  

	  

	 	.

  
 3. Since the date of the most recent
Quarterly Certificate, the Company has not relocated any material portion o fits Collateral (other than Inventory) from locations previously disclosed to Lender in the Supplement to the Loan Agreement or in a prior Quarterly Certificate, except as
follows: 
  

			
	
  

	  

	 	.

  
 4. Since the date of the most recent
Quarterly Certificate, the Company has established and/or discontinued operations or business at the following locations: 
  

			
	
  

	  

	 	.

  
 5. Since the date of the most recent
Quarterly Certificate, the Company has not changed its corporate name, legal structure of jurisdiction of organization, except as follows: 
  

			
	
  

	  

	 	.

  
 6. As required under Section 2(d) of
the Intellectual Property Security Agreement, since the later of the date of such Agreement or the most recent Quarterly Certificate, except as described herein, the Company has not made or filed any applications or registrations in respect of any
patents, copyrights or trademarks, and the status of any outstanding applications or registrations is as follows: 
  

			
	
  

	  

	 	.

  
 7. Pursuant to Section 6.10 of the
Loan Agreement: (i) as of the date hereof, it maintains only those Deposit Accounts and investment/securities accounts set forth below; and (ii) a control agreement has been executed and delivered to Lender with respect to each such account [Note:
If the Company has established any new account(s) since the date of the last compliance certificate, please so indicate]. 

 Deposit Accounts 
  
  

									
	 Name of Institution

	 	 Account Number

	 	 Control Agt.
 In
place?

	 	 Complies

	 	 New
 Account

	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

					
	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

					
	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

  
 Investment Accounts 

 
  

									
	 Name of Institution

	 	 Account Number

	 	 Control Agt.
 In
place?

	 	 Complies

	 	 New
 Account

	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

					
	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

					
	 __________________
	 	 __________________
	 	 YES / NO
	 	 YES / NO
	 	 YES / NO

  

			
	Very truly yours,
	
	  

		
	Name:	 	  

	Title:*	 	  

  

	*	Must be executed by Borrower’s Chief Financial Officer or other executive officer. 

 EXHIBIT “D” 
  
 FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT 

 INTELLECTUAL PROPERTY SECURITY AGREEMENT 
  
 This Intellectual Property Security Agreement (this “Agreement”) is
made as of                          , 2005, by and between TERCICA, INC., a Delaware corporation
(“Grantor”), and VENTURE LENDING & LEASING IV, INC., a Maryland corporation (“Secured Party”). 
  
 RECITALS 
  
 A. Pursuant to a Loan Agreement and Supplement thereto, both dated as of January 21, 2005 (the “Loan Agreement” and the “Supplement,”
respectively) between Grantor, as borrower, and Secured Party, as lender, Secured Party agreed to make certain advances of money and to extend certain financial accommodations to Grantor in the amounts and manner set forth in the Loan Agreement and
Supplement. All capitalized terms used herein without definition shall have the meanings ascribed to them in the Loan Agreement. 
  
 B. Pursuant to the Supplement, Grantor agreed to execute and deliver this Agreement upon the occurrence or non-occurrence of certain events and conditions
described therein. 
  
 NOW, THEREFORE, THE PARTIES HERETO AGREE AS
FOLLOWS: 
  
 1. Grant of Security Interest. As collateral
security for the prompt and complete payment and performance of all of Grantor’s present or future Obligations, Grantor hereby grants a security interest and mortgage to Secured Party, as security, in and to Grantor’s entire right, title
and interest in, to and under the following Intellectual Property, now owned or hereafter acquired by Grantor or in which Grantor now holds or hereafter acquires any interest (all of which shall collectively be called the “Collateral” for
purposes of this Agreement), but specifically excluding the Unpledged Intellectual Property notwithstanding the provisions of subsections (a) through (g) below: 
  
 (a) Any and all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State
thereof or of any other country; all registrations, applications and recordings in the United States Copyright Office or in any similar office or agency of the United States, and State thereof or any other country; all continuations, renewals, or
extensions thereof; and any registrations to be issued under any pending applications, including without limitation those set forth on Exhibit A attached hereto (collectively, the “Copyrights”); 
  
 (b) All letters patent of, or rights corresponding thereto in, the United
States or any other country, all registrations and recordings thereof, and all applications for letters patent of, or rights corresponding thereto in, the United States or any other country, including, without limitation, registrations, recordings
and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country; all reissues, continuations, continuations-in-part or extensions thereof; all petty
patents, divisionals, and patents of addition; and all patents to be issued under any such applications, including without limitation the patents and patent applications set forth on Exhibit B attached hereto (collectively, the
“Patents”); 
  
 (c) All trademarks, trade names,
corporate names, business names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any of the foregoing have appeared or appear, designs and general intangibles of like nature, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and any applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in
any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, and reissues, extensions or renewals thereof, and the entire goodwill of the business of Grantor connected with and
symbolized by such trademarks, including without limitation those set forth on Exhibit C attached hereto (collectively, the “Trademarks”); 
  

 1 

 (d) Any and all claims for damages by way of past, present and future infringement of any of the rights
included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; 
  
 (e) All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties
arising from such use to the extent permitted by such license or rights; 
  
 (f) All amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and 
  
 (g) All proceeds and products of the foregoing, including without limitation, all payments under insurance or any indemnity or warranty payable in respect
of any of the foregoing. 
  
 2. Covenants and Warranties.
Grantor represents, warrants, covenants and agrees as follows: 
  
 (a) Grantor is now the sole owner of the Collateral, except for exclusive or non-exclusive licenses or sublicenses granted by Grantor to its customers in the ordinary course of business consistent with industry practice; 
  
 (b) During the term of this Agreement, Grantor will not transfer or otherwise
encumber any interest in the Collateral, except for licenses or sublicenses granted by Grantor in the ordinary course of business consistent with industry practice; 
  
 (c) To its knowledge, each of the Patents is valid and enforceable, and no part of the Collateral has been judged invalid or
unenforceable, in whole or in part, and no claim has been made that any part of the Collateral violates the rights of any third party; 
  
 (d) Grantor shall deliver to Secured Party within twenty (20) days of the last day of each fiscal quarter in which there is a change or update to the
reported contents from the previous fiscal quarter, as part of its quarterly report under Section 5.3 of the Loan Agreement, a listing of any applications or registrations that Grantor has made or filed in respect of any patents, copyrights or
trademarks and the status of any outstanding applications or registrations, in each case only if they do not constitute Unpledged Intellectual Property. Grantor shall promptly advise Secured Party of any material change in the composition of the
Collateral; provided, however, that the failure to deliver such report shall not constitute an Event of Default unless such failure remains uncured for sixty days or more; 
  
 (e) [intentionally omitted]; 
  
 (f) Grantor shall apply for registration (to the extent not already registered) with the United States Patent and Trademark Office or the United States
Copyright Office, as applicable: (i) those intellectual property rights listed on Exhibits A, B and C hereto within thirty (30) days of the date of this Agreement; and (ii) those additional intellectual property rights developed
or acquired by Grantor from time to time in connection with any product or service, prior to the sale or licensing of such product or the rendering of such service to any third party (including without limitation revisions or additions to the
intellectual property rights listed on such Exhibits A, B and C), except, in each case, with respect to such rights that Grantor determines in its sole but reasonable commercial judgment need not be registered to protect its own
business interests. Grantor shall, from time to time, execute and file such other instruments, and take such further actions as Secured Party may reasonably request from time to time to perfect or continue the perfection of Secured Party’s
interest in the Collateral. Grantor shall give Secured Party notice of all such applications or registrations; and 
  

 2 

 (g) Grantor shall not enter into any agreement that would materially impair or conflict with
Grantor’s obligations hereunder without Secured Party’s prior written consent, which consent shall not be unreasonably withheld. Grantor shall not permit the inclusion in any material contract to which it becomes a party of any provisions
that could or might in any way prevent the creation of a security interest in Grantor’s rights and interests in any property included within the definition of the Collateral acquired under such contracts. 
  
 3. Further Assurances; Attorney in Fact. 
  
 (a) On a continuing basis, Grantor will make, execute, acknowledge and
deliver, and file and record in the proper filing and recording places in the United States, all such instruments, including appropriate financing and continuation statements and collateral agreements and filings with the United States Patent and
Trademark Office and the Register of Copyrights, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by Secured Party, to perfect Secured Party’s security interest in all Copyrights, Patents
and Trademarks and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to Secured Party the grant or perfection of a security interest in all Collateral. 
  
 (b) Grantor hereby irrevocably appoints Secured Party as Grantor’s
attorney-in-fact, with full authority in the place and stead of Grantor and in the name of Grantor, from time to time in Secured Party’s discretion from and after the occurrence and during the continuance of an Event of Default, to take any
action and to execute any instrument which Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including (i) to modify, in its sole discretion, this Agreement without first obtaining Grantor’s approval of
or signature to such modification by amending Exhibits A, B and C, hereof, as appropriate, to include reference to any right, title or interest in any Copyrights, Patents or Trademarks acquired by Grantor after the execution
hereof (other than Unpledged Intellectual Property) or to delete any reference to any right, title or interest in any Copyrights, Patents or Trademarks in which Grantor no longer has or claims any right, title or interest, (ii) to file, in its sole
discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Grantor where permitted by law, and (iii) subject to Section 7 of Part 2 of the Supplement, after the
occurrence and during the continuance of an Event of Default, to transfer the Collateral into the name of Secured Party or a third party to the extent permitted under the California Uniform Commercial Code. 
  
 (c) Secured Party agrees that it shall release its Lien on the Collateral (as
such term is defined herein) on the terms and conditions set forth in the Supplement and to execute and deliver, at Grantor’s sole cost and expense, all documents and instruments necessary to effectuate such release. 
  
 4. Events of Default. The occurrence of any of the following shall
constitute an Event of Default under this Agreement: 
  
 (a) An
Event of Default under the Loan Agreement; or 
  
 (b) Grantor
breaches any warranty or agreement made by Grantor in this Agreement and, as to any breach that is capable of cure, Grantor fails to cure such breach within thirty (30) days of the sooner to occur of Grantor’s receipt of notice of such breach
from Secured Party or the date on which such breach first becomes known to Grantor. 
  
 5. Amendments. This Agreement may be amended only by a written instrument signed by both parties hereto, except for amendments permitted under Section 3 hereof to be made by Secured Party alone. 
  

 3 

 6. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original but all of which together shall constitute the same instrument. 
  
 Remainder of this page intentionally left blank; signature page follows 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above
written. 
  

					
	Address of Grantor:	 	 GRANTOR:
  
 TERCICA, INC.

			
	 651 Gateway Blvd., Suite 950
 South San
Francisco, Ca 94080
 Attn: Chief Financial Officer
	 	By:	 	  

	 	Name:	 	  

	 	Its:	 	  

  

					
	Address of Secured Party:	 	 SECURED PARTY:
  
 VENTURE LENDING & LEASING IV, INC.

			
	 2010 North First Street, Suite 310
 San Jose,
CA 95131
 Attn: Chief Financial Officer
	 	By:	 	  

	 	Name:	 	  

	 	Its:	 	  

  

 5 

 EXHIBITS A, B AND C TO BE COMPLETED BY GRANTOR IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT

  
 EXHIBIT A 
  
 Copyrights 
  

					
	 Description

	 	 Registration Number

	 	 Registration Date

  

 6 

 EXHIBIT B 
  
 Patents 
  

					
	 Description

	 	 Registration/Serial Number

	 	 Registration/Application Date

  

 7 

 EXHIBIT C 
  

Trademarks 
  

					
	 Description

	 	 Registration/Application Number

	 	 Registration/Application Date

  

 8 

  
 EXHIBIT “E”

  
 FORM OF LANDLORD WAIVER 
  
 SAMPLE 
  
 Recording Requested By: Venture Lending & Leasing IV, Inc. 
 and When Recorded Return to: 
  
 Venture Lending
& Leasing IV, Inc. 
 2010 North First Street, Suite 310 
 San
Jose, CA 95131 
  
 LANDLORD/MORTGAGEE WAIVER 
  
 In order to induce VENTURE LENDING & LEASING IV, INC.
(“Lender”) to, among other things, provide financing, which is secured by certain equipment and other personal property assets (collectively, “Equipment”), to TERCICA, INC., a Delaware corporation (“Tenant”), pursuant
to that certain Loan Agreement dated as of January 21, 2005, between Lender and Tenant, and any supplements, extensions, renewals and replacements thereof (the “Loan Agreement”), some or all of which Equipment may be located upon that
certain real property located at [651 Gateway Boulevard, South San Francisco, California 94080], more particularly described on Exhibit “A” attached hereto (the “Real Property”), the undersigned declares and agrees as follows:

  
 1. The undersigned has an interest in the Real Property as (as
indicated): 
  

			
	 	    	Landlord
		
	 	    	Mortgagee or Beneficiary under a Deed of Trust; or
		
	 	    	Other (describe):
                                        
                                        
                                        
              
	 	    	_________________________________________________________________________________

  
 2. The undersigned
agrees that the Equipment shall at all times be deemed personal property, even though it may be placed on or affixed to the Real Property. Lender shall have the right, at all reasonable times, to enter upon the Real Property to take possession and
dispose of the Equipment pursuant to the terms of the Loan Agreement or otherwise, free of any claim to, interest in, or lien on the Equipment in favor of the undersigned; provided that if Lender, in removing the Equipment damage any improvements of
the undersigned on the Real Property, Lender will, at its own expense, cause the same to be repaired. 
  
 3. Any right or interest in the Equipment that the undersigned now has or may hereafter acquire because of the location or installation of the Equipment
on the Real Property or otherwise is hereby made subject, subordinate and inferior to the rights of Lender to the Equipment under the terms of the Loan Agreement; provided, that the undersigned shall continue to retain all rights to bring an action
in unlawful detainer and trespass against Tenant for nonpayment of its lease or any other breaches of agreements with the undersigned, subject to Lender’s rights with respect to the Equipment. 
  
 4. Each reference herein to Lender and the undersigned shall be deemed to
include their respective successors and assigns, all of whom shall be bound by and entitled to the benefits of the provisions hereof. 
  
 Executed this              day of
                            , 2005. 
  

			
	 
	 (please print or type name)

		
	By:	 	 

  
 Exhibit “A”

  
 [Legal description of the property attached.] 

  
 EXHIBIT “F”

  
 FORM OF LEGAL OPINION 
  
 Substantially the following opinions will be issued to Lender in an opinion letter from
Borrower’s counsel on or before January 31, 2005, on Borrower’s counsel’s standard form of opinion letter subject to customary exceptions to opinions: 
  
 1. The Company has been duly incorporated and is a validly existing corporation in good standing
under the laws of the State of Delaware and has the requisite corporate power to own its property and assets, to conduct its business as it is currently being conducted and to enter into and perform its obligations under the Transaction Documents.
The Company is qualified as a foreign corporation to do business and is in good standing in the State of California. 
  
 2. The execution, delivery and performance by the Company of the Transaction Documents have been duly authorized by all requisite
corporate action on the part of the Company and do not require any further approval of its directors or stockholders. 
  
 3. Each of the Transaction Documents has been duly executed and delivered by the Company and constitutes a valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms. 
  
 4. The execution and delivery by the Company of each of the Transaction Documents and the performance by the Company of the
Transaction Documents as of the date hereof will not violate or contravene or be in conflict with: (a) any provision of the Organizational Documents; (b) any provision of the General Corporation Law of the State of Delaware and any provision of any
federal or California law, rule or regulation applicable to the Company in commercial transactions of the nature contemplated by the Transaction Documents; or (c) any order, judgment or decree of any court or other governmental agency which is known
to us and which is binding on the Company or any of its property, the violation or contravention of which would materially and adversely affect the Company.

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