Document:

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                                                                    Exhibit 10.3

                              "LICENSE AGREEMENT"

        Confidential treatment requested for portions of this document

         LICENSE AGREEMENT (this "Agreement") dated as of the     day of      ,
1999, (the "Effective Date") by and among Jean-Louis Dasseux, with an address at
7898 Huron Oaks Drive, Brighton, Michigan 48116, Renate Sekul with an address at
Wichernstrasse 13, D-68526 Ladenburg, Germany, Klaus Buttner with an address at
Eichendorffstrasse 6, D-74925 Epfenbach, Germany, Isabelle Cornut with an
address at Meisenweg 10, D-68535 Edingen-Neckarhausen, Germany, Guenther Metz
with an address at Schenkendorfstrasse 1, D-53173 Bonn, Germany, and Jean
Dufourcq with an address at Avenue Schweizer, F-33600 Pessac, France
(individually an "Inventor" and collectively the "Inventors"), and Esperion
                  --------                        ---------
Therapeutics, Inc., a Delaware corporation with a principal place of business at
3621 S. State Street, 695 KMS Place, Ann Arbor, Michigan 48108 (the "Company").

                              W I T N E S S E T H :
                              - - - - - - - - - - -

         WHEREAS, the Inventors own or have exclusive rights to certain patent
rights, proprietary information and know-how with respect to compositions and
uses of peptide mimetics of Apoprotein A-I; and

         WHEREAS, the Company has an interest in acquiring exclusive rights to
the Licensed Patents (as defined below) and non-exclusive rights to the Know-How
(as defined below) from the Inventors and continuing the development thereof and
products based thereon; and

         WHEREAS, the parties desire to enter into an agreement pursuant to
which (i) the Inventors shall license to the Company the Licensed Patents and
Know-How, and (ii) the Company will pursue the continued development of the
Licensed Patents and Know-How and ultimately the commercialization of products
based thereon.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereto agree as follows:

                             SECTION 1. DEF1NITIONS

         For the purpose of this Agreement, the following words and phrases
shall have the meanings set forth below:

     1.1 "Affiliate" means, with respect to Company, any other Person that
          ---------
directly, or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with the Company. For purposes hereof,
the term "control" (including, with its correlative meanings, the terms
          -------
"controlled by" and "under common control with", with respect to the Company,
 -------------       -------------------------
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of the

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.
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Company (whether through the ownership of voting securities, by contract or
otherwise); provided that in each event in which any Person owns directly or
indirectly more than 50% of the securities having ordinary voting power for the
election of directors or other governing body of a corporation or more than 50%
of the ownership interest of any other Person, such Person shall be deemed to
control such corporation or other Person.

     1.2 "Confidential Information" means any and all information (in any and
          ------------------------
every form and media) not generally known in the relevant trade or industry,
which was obtained from any party or any Affiliate thereof in connection with
this Agreement or the respective rights and obligations of the parties
hereunder, including, without limitation, (a) information on trade secrets of
such party or any Affiliate thereof, (b) information relating to existing or
contemplated products, services, technology, designs, processes, formulae,
research and development (in any and all stages) of such party or any Affiliate
thereof, (c) information relating to the Licensed Patents, the Know-How or the
Licensed Products, and (d) information relating to business plans, methods of
doing business, sales or marketing methods, customer lists, customer usages
and/or requirements and supplier information of such party or any Affiliate
thereof, except that "Confidential Information" shall not include any
information which (i) at the time of disclosure, is generally known to the
public, (ii) after disclosure, becomes' part of the public knowledge (by
publication or otherwise) other than by breach of this Agreement by the
receiving party, (iii) the receiving party can verify by contemporaneous written
documentation was in its possession at the time of disclosure and which was not
obtained, directly or indirectly, from the other parry or any Affiliate thereof,
(iv) the receiving party can verify by contemporaneous written documentation
results from research and development by the receiving party or any Affiliate
thereof independent of disclosures by the other party or any Affiliate thereof
or (v) the receiving party can prove was obtained from any Person who had the
legal right to disclose such information, provided that such information was not
obtained to the knowledge of the receiving party or any Affiliate thereof by
such Person, directly or indirectly, from the other party or any Affiliate
thereof on a confidential basis.

     1.3 "Control" (i) means with respect to any Licensed Patents, excluding
          -------
Improvement(s), the possession of the ability to grant a license or sublicense
with respect thereto as provided for herein without violating the terms of any
agreement with, or the rights of, any third Person and, (ii) means with respect
to any Know-How and Improvement(s), that such Know-How or Improvement is known
to, in the custody of and owned solely by one or more of the Inventors, and such
Inventors are free to grant a license or sublicense hereunder without violating
the terms of any agreement with, or rights of, any third Person.

     1.4 "FDA" means the United States Food and Drug Administration or any
          ---
successor agency thereof, or equivalent thereof in any country other than the
United States.

     1.5 "Field" means Apoprotein A-I mimetics as described in the Licensed
          -----
Patents for the diagnosis and/or treatment of atherosclerosis and related
metabolic diseases.

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     1.6 "Governmental Approval" means any and all approvals, licenses,
          ---------------------
registrations or authorizations, including pricing approval, of any Federal,
State or local agency, department, bureau or other governmental entity, foreign
or domestic, necessary for the manufacture, use, storage, import, transport and
sale of the Licensed Products in any regulatory jurisdiction.

     1.7 "Improvement" means any modification of a Licensed Product which is
          -----------
conceived by one or more of the Inventors during the term of this Agreement,
provided that, such modification (i) if unlicensed, would infringe one or more
claims of any Patent included within the Licensed Patents, and (ii) is
Controlled by, such Inventor(s).

     1.8 "Licensed Product" means any product the manufacture, use or sale of
          ----------------
which would infringe at least one claim of any of the Licensed Patents.

     1.9 "Know-How" means any and all non-patented proprietary technology and
          --------
information necessary for the practice of the Licensed Patents, that is
Controlled by one or more of the Inventors.

     1.10 "Licensed Patents" means all Patents(i) which have issued as of the
           ----------------
date of this Agreement, a list of which is attached hereto as Appendix A, (ii)
which consist of applications pending as of the date of this Agreement, a list
of which is attached hereto as Appendix B, and all patents issuing thereon, and
(iii) which consist of any improvement, and in each case described in clauses
(i) through (iii) hereof including any reissue, extension, substitution,
continuation-in-part thereof and any provisional applications and any foreign
counterparts and all patents that issue therefrom Controlled by one or more of
the Inventors.

     1.11 "NDA" means a complete New Drug Application and all supplements
           ---
thereto filed with the FDA, including all documents, data and other information
concerning a Licensed Product which are necessary for, or included in, FDA
approval to market such Licensed Product as more fully defined in 21 C.F.R.
(Sec.)314.5 et seq. For purposes of this Agreement, "NDA" shall also include any
            -------
analogous foreign applications f6r governmental and/or regulatory approval.

     1.12 "Net Sales" means gross receipts received by the Company, whether or
           ---------
not invoiced, and/or its Affiliates for the sale or other disposition of the
Licensed Products, less the sum of the following (collectively, "Permitted
                                                                 ---------
Deductions"):
----------
     (1)  discounts and rebates actually allowed in amounts customary in the
          trade;

     (2)  ales taxes, customs and tariff duties and/or use taxes directly
          imposed and with reference to particular sales;

     (3)  transportation and delivery charges (including insurance premiums
          related to transportation and delivery) prepaid or allowed; and

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     (4)  amounts actually repaid, allowed or credited on returns.

         In the event of any sale of the Licensed Products by the Company to any
Affiliate for resale to its customers, "Net Sales" shall be based on the greater
                                        ---------
of the amount actually received by the Company from its Affiliate or the amount
actually received by such Affiliate from its customers for the sale of the
Licensed Products, less (in either such case) the Permitted Deductions.

         Where Licensed Products are not sold, but are otherwise disposed of,
the Net Sales of such products for the purpose of computing royalties shall be
the selling price at which such products or products of a similar kind and
quality, sold in similar quantities, are currently being offered for sale by
Company, its sublicensees and/or Affiliates. Where such products are not
currently being offered for sale by Company, the Net Sales of products otherwise
disposed of, for purpose of computing royalties, shall be the average selling
price at which products of similar kind and quality, sold in similar quantities,
are then currently being offered for sale by other manufacturers. Where such
products are not currently sold or offered for sale by Company or others, then
the Net Sales, for the purpose of computing royalties, shall be the Company's
cost of manufacture, determined by Company's accounting procedures, plus fifty
percent (50%).

         If the Company, its sublicensees, or any of its Affiliates sells any
Licensed Products in combination with other items which are not Licensed
Products ("Other Items") at a single invoice price "Net Sales" for purposes
           -----------                              ---------
computing royalty payments on the combination shall be determined as follows:

               (1) if all Licensed Products and Other Items contained in the
          combination are available separately, "Net Sales" for purposes of
          computing royalty payments shall be determined by multiplying Net
          Sales of the combination of the fraction A/A + B, where A is the
          selling price of all Licensed Products in the combination and B is the
          selling price of all Other Items in the combination;

               (2) if the combination includes Other Items which are not sold
          separately (but all Licensed Products contained in the combination are
          available separately), "Net Sales" for purposes of computing royalty
                                  ---------
          payments shall be determined by multiplying Net Sales of the
          combination by A/C, where A is as defined above and C is the selling
          price of the combination; and

               (3) if neither the Licensed Products nor the Other Items
          contained in the combination are sold separately, "Net Sales" for
          purposes of computing royalty payments shall be determined by
          multiplying Net Sales of the combination by the fraction D/D + E,
          where D is the cost of manufacture of all Licensed Products in the
          combination and E is the cost of manufacture of all Other Items in the
          combination, all as reasonably determined by the Company (which
          determination shall be conclusive).

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     1.13 "Patent" means (i) unexpired letters patent (including inventor's
           ------
certificates) which have not been held invalid or unenforceable by a court of
competent jurisdiction from which no appeal can be taken or has been taken
within the required time period, including, without limitation, any
substitution, extension, registration, confirmation, reissued, reexamination,
renewal or any like filing thereof, and (ii) pending applications for letters
patent.

     1.14 "Person" means any individual, estate, trust, partnership, joint
           ------
venture, association, firm, corporation or company, or governmental body, agency
or official, or any other entity.

     1.15 "U.S. Dollars" and the sign "$" each means lawful currency of the
           ------------                -
United States of America.

                                SECTION 2. GRANT

     2.1 Grant of License. Upon the terms and subject to the conditions herein
         ----------------
stated, the Inventors hereby grant the Company (a) an exclusive, worldwide
license, with the right to grant sublicenses, under the Licensed Patents to
make, have made, use, import, offer for sale, sell and otherwise dispose of the
Licensed Products in the Field, and (b) subject to any pre-existing rights of
third Persons, a non-exclusive worldwide license, with the right to grant
sublicenses, under the Know-How to make, have made, use, import, offer for sale,
sell and otherwise dispose of the Licensed Products in the Field.

     2.2 Delivery of Know-How. Pursuant to the license granted in Section 2.1
         --------------------
hereof, the Inventors shall promptly deliver to the Company originals or copies
of all of their records, data and documentation relating to the Know-How, not
already known to and/or in the possession of the Company as of the Effective
Date.

                             SECTION 3. DEVELOPMENT

     3.1 Development Effort. The Company shall use commercially reasonable
         ------------------
efforts to develop and commercialize the Licensed Products.

     3.2 Development Review. The Company will make available to the Inventors an
         ------------------
annual summary of the Company's development efforts hereunder as follows: The
Inventors hereby designate Dr. Jean-Louis Dasseux as their representative to
receive such annual summaries, which summaries will disclose, in detail
appropriate to the intent of the review, the activities undertaken pursuant to
Section 3.1 hereof and any significant developments during the preceding year.
The Inventors may change their representative on written notice to the Company,
but only to another of the Inventors who is not involved in any competitive
activities in drug discovery or development, or a consultant to or employed by
any third party so engaged. Such annual summaries will be held by

                                      -5-
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the Inventors' representative in confidence. The Inventors may elect at any time
(but not more than once each year) to designate an independent consultant who is
acceptable to both the Company and the Inventors, for the purpose of determining
compliance by the Company with its diligence obligations under Section 3.1
hereof. Such consultant shall enter into a written confidentiality agreement
satisfactory to the Company, and shall disclose to the Inventors only whether
the Company, in the opinion of such consultant, is in compliance with its
diligence obligations under Section 3.1 hereof. The Company will provide such
consultant with commercially reasonable access to information. The consultant
shall conduct his/her review during normal business hours, and in a manner that
does not interfere with the Company's business, and will complete his/her review
within a reasonable time (not to exceed two weeks). The cost of such consultant,
which will be borne solely by the Company, shall not exceed $1500 for each
review plus reasonable out-of-pocket expenses. In the event that the Inventors'
representative or consultant believes that the Company has not made a
commercially reasonable effort pursuant to Section 3.1 hereof, then the parties
shall enter into good faith discussions to resolve the issue(s) raised,
including a cure for the potential breach in diligence, and allowing for a
reasonable period of time within which the breach can be resolved. If the
parties, however, are unable to agree on whether there has, in fact, been a
breach of the Company's diligence obligations under Section 3.1 hereof, then the
dispute will be resolved by binding arbitration, provided that, if the
arbitrator determines that the Company s diligence obligations have not been
satisfied, the Inventors shall have the right to terminate this Agreement and
the Company's rights hereunder.

     3.3 Development Charges. All costs incurred by the Company in the
         -------------------
development of the Licensed Products, including, without limitation, payments
for clinical trials and other studies, tests and all filings and applications
and other actions necessary for achieving Governmental Approval of the Licensed
Products, shall be the sole responsibility of the Company.

                    SECTION 4. ROYALTIES AND OTHER PAYMENTS

     4.1 License Fees. The Company shall pay to the Inventors an initial license
         ------------
fee of $50,000 in cash, which initial license fee shall be paid on the Effective
Date.

     4.2 Milestone and Royalty Obligations.
         ---------------------------------

     4.2.1. For the rights, privileges and licenses granted hereunder, the
Company shall pay the amounts set forth in this Section to the Inventors in the
manner hereinafter provided during the term of this Agreement as follows:

     (1)  a milestone payment in the amount of $50,000 in cash shall be made by
          the Company to the Inventors within fifteen (15) business days after
          the identification of the first lead candidate, which the Company
          decides to advance into pre-phase I evaluation, as a potential
          Licensed Product;

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     (2)  a milestone payment in the amount of [**] in cash shall be made by
          the Company to the Inventors within fifteen (15) business days after
          the enrollment of the first patient in a Phase HI clinical trial for
          the first Licensed Product after generation of data in a Phase H trial
          of data satisfactory to the Company supporting a clinical indication
          for which the Company is seeking approval;

     (3)  a milestone payment in the amount of [**] in cash shall be made by
          the Company to the Inventors within fifteen (15) business days after
          submission of the first NDA in the United States or Europe for the
          first Licensed Product;

     (4)  a milestone payment in the amount of [**] in cash shall be made by
          the Company to the Inventors within fifteen (15) business days after
          submission of the first NDA in the United States or Europe for the
          second and third Licensed Products;

     (5)  a milestone payment in the amount of [**] in cash shall be made by the
          Company to the Inventors within fifteen (15) business days after
          approval of the first NDA in the United States or Europe for the first
          Licensed Product; and

     (6)  a milestone payment in the amount of [**] in cash shall be made by the
          Company to the Inventors within fifteen (15) business days after
          approval of the first NDA in the United State s or Europe for the
          second and third Licensed Products.

[**] of the milestone payments made pursuant to clauses (iii) through (vi) of
this Section 4.2.1 shall be creditable against future royalties owed by the
Company to the Inventors pursuant to Section 4.2.2 hereof.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.

                                      -7-
<PAGE>

     4.2.2. The Company shall pay to the Inventors royalties in the amount of
[**] of the Net Sales of the Licensed Products by the Company and its
Affiliates, and the Company shall pay the Inventors [**] of the royalties
received by the Company based on the sales of the Licensed Products by its
sublicensees and [**] of all other cash payments received by the Company from
its sublicenses, excluding equity and research payments. In the event that the
Company licenses additional patents from third parties which are required to
practice the Licensed Patents, the Company shall be entitled to reduce Company's
royalty payments to the Inventors hereunder by the amount of such royalty
payments paid by the Company to such third parties; provided that the reduction
for any given year does not reduce the royalties paid to the Inventors for such
year to an amount less than [**] of Net Sales. In the event that no valid
current claims of any Licensed Patent (including any claims of any patent
application included therein) exist in a country with respect to a Licensed
Product, then the royalties otherwise payable by the Company to the Inventors
with respect to such Licensed Product in such country will be reduced by [**].

     4.3 Limitation on Royalties. Notwithstanding anything to the contrary
         -----------------------
contained herein, (a) no royalties shall be payable by the Company with respect
to the Net Sales of the Licensed Products to any of its Affiliates thereof
(although such sales may be used as the basis for calculating Net Sales pursuant
to Section 1. 12 hereof and the royalties payable to the Inventors based upon
such Affiliates' Net Sales), and (b) no multiple royalties shall be payable in
the event that any of the Licensed Products or the manufacture, use or sale
thereof is covered by more than one patent included in the Licensed Patents.

     4.4 Unlicensed Competition. The Company shall promptly notify the
         ----------------------
Inventors, in writing, of any substantial unlicensed competition by any Person
making, using, selling or importing a product in any geographic area which
product infringes one or more claims of any Licensed Patent. If, one (1) year
after such notice by Company, Company, after diligent efforts, has not abated
such infringement (e.g., by sublicense or legal action), Inventors shall
                   ----
negotiate with Company in good faith in an attempt to adjust the royalty
provided in Section 4.2.2 hereof, provided that, Company presents Inventors with
evidence, satisfactory to Inventors, that such unlicensed competition, and not
other market factors, is materially adversely affecting Net Sales.

     4.5 Withholding Taxes. The parties acknowledge and agree that there may be
         -----------------
deducted from any payments or royalties otherwise due and payable hereunder any
taxes or other payments required to be paid by Inventors under applicable law
with respect to such payments or royalties or otherwise relating to the Licensed
Products.

     4.6 Payments to Inventors. All payments to be made by the Company to the
         ---------------------
Inventors under this Agreement shall be made by the Company to Jean-Louis
Dasseux, and the Company shall have no responsibility whatsoever with respect to
the division of any such payment among Inventors or the receipt by any
particular Inventor of any particular portion of any such payment.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.

                                      -8-
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                SECTION 5. PAYMEENT OF ROYALTIES, ACCOUNTING FOR
                            ROYALTIES, RECORDS, ETC.

     5.1 Payment. Royalties payable hereunder shall be paid within 60 days after
         -------
the end of each calendar quarter, based on the Net Sales of the Licensed
Products by the Company and its sublicensees and Affiliates during the preceding
calendar quarter.

     5.2 Accounting Reports. With each quarterly payment, the Company shall
         ------------------
deliver to Jean-Louis Dasseux, on behalf of the Inventors, a full and accurate
accounting that sets forth the following information:

          (a)  total receipts for each Licensed Product sold or otherwise
               disposed of by Company and/or its Affiliates subject to royalty,
               by country, and, to the extent used in any royalty calculations
               during such quarter, the exchange rate set forth in Section 5.3
               of this Agreement;

          (b)  Royalties and other payments received by Company in connection
               with any sublicense of Company's rights under this Agreement, and
               compensation due to Inventors on sales or other disposition of
               Licensed Products by sublicensees and other cash payments
               pursuant to such sublicense; and

          (c)  total royalties and/or compensation payable to the Inventors.

     5.3 Accounting: Foreign Currency. The aggregate amount of the Net Sales of
         ----------------------------
the Licensed Products used for computing the royalties payable hereunder shall
be computed in U.S. Dollars, and all payments of such royalties shall be made in
U.S. Dollars. For purposes of determining the amount of royalties due, the
amount of the Net Sales of the Licensed Products in any foreign currency shall
be computed by converting such amounts into U.S. Dollars at the prevailing
commercial rate of exchange for purchasing U.S. Dollars, as quoted in The Wall
Street Journal, on the last business day of the calendar quarter with respect to
which such royalty payment is payable hereunder.

     5.4 Records. The Company shall keep, and shall cause each of its Affiliates
         -------
and sublicensees to keep, for five (5) years, complete and accurate records of
the Net Sales of the Licensed Products sold in sufficient detail to allow the
royalties payable by the Company to be accurately determined. The Inventors
shall have the right for a period of five (5) years after receiving any report
or statement with respect to royalties due and payable hereunder by the Company
to appoint an independent accounting firm to inspect and audit the relevant
records of the Company and its Affiliates to verify such report or statement.
The Company and its Affiliates shall make their records available for inspection
and audit by such independent accounting firm during regular business hours at
such place or places where such records are customarily kept, upon reasonable
notice to the Company, to the extent reasonably necessary to verify the accuracy
of the reports and payments required hereunder. The cost of any such inspection
and audit shall be paid by the Inventors unless such inspection and audit
discloses for any calendar quarter examined that there shall have been a
discrepancy of greater than seven and one-half

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percent (7-1/2%) between the royalties payable hereunder by the Company and the
royalties actually paid by the Company with respect to such calendar quarter, in
which case the Company shall be responsible for the payment of the entire cost
of such inspection and audit. In all cases, the Company shall pay to the
Inventors any underpaid royalties promptly and with interest at the prime rate
quoted by Citibank, N.A. on the date such payment was due.

                         SECTION 6. PATENT PROSECUTION

     6.1 Prosecution Obligation. The Company shall apply for, and maintain
         ----------------------
during the term of this Agreement any and all Licensed Patents in the European
Patent Community, Japan, the United States of America and Canada and such other
countries in which the Company desires in its sole discretion to commercialize
the Licensed Products. All reasonable costs and expenses of the prosecution and
maintenance of the Licensed Patents in such countries (including all
governmental filing fees) shall be paid by the Company. The Inventors shall
render reasonable assistance to the Company in filing and prosecuting such
applications and maintaining the Licensed Patents in such countries whenever
requested to do so, at the Company's expense.

                   SECTION 7. REPRESENTATIONS AND WARRANTIES.

     7.1 By the Company. The Company hereby represents and warrants to the
         --------------
Inventors that (a) the Company has full legal right, power and authority to
execute, deliver and perform its obligations under this Agreement, (b) the
execution, delivery and performance by the Company of this Agreement do not
contravene or constitute a default under any provision of applicable law or its
articles or by-laws (or equivalent documents) or of any agreement, judgment,
injunction, order, decree or other instrument binding upon the Company, (c) all
licenses, consents, authorizations and approvals, if any, required for the
execution, delivery and performance by the Company of this Agreement have been
obtained and are in full force and effect and all conditions thereof have been
complied with, and no other action by or with respect to, or filing with, any
governmental authority or any other Person is required in connection with this
execution, delivery and performance by the Company of this Agreement, (d) this
Agreement constitutes a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, and (e) Company's patent
counsel, Patrea Pabst, Esq. has had full access to and has reviewed to her
satisfaction the complete and correct files relating to the prosecution of the
Licensed Patents.

     7.2 By The Inventors. The Inventors hereby jointly and severally represent
         ----------------
and warrant to the Company that (a) the Inventors have full legal right, power
and authority to execute, deliver and perform their obligations under this
Agreement, (b) the execution, delivery and performance by the Inventors of this
Agreement do not contravene or constitute a default under any provision of
applicable law or of any agreement, judgment, injunction, order, decree or other
instrument binding upon the Inventors, (c) all licenses, consents,
authorizations and approvals, if any, required for the

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<PAGE>

execution, delivery and performance by the Inventors of this Agreement have been
obtained and are in full force and effect and all conditions thereof have been
complied with, and no other action by or with respect to, or filing with, any
governmental authority or any other Person is required in connection with the
execution, delivery and performance by the Inventors of this Agreement, (d) to
the best knowledge of the Inventors, the Inventors are the exclusive owners of
all legal and beneficial right, title and interest in and to the Licensed
Patents, (e) as of the Effective Date (and without undertaking any independent
investigation), the Inventors are not aware of any patent or other right of any
third Person that would be infringed or violated by the practice of the Licensed
Patents as contemplated by Section 2.1 hereof, (f) the Inventors have caused to
be made available to the Company complete and correct files of their patent
counsel relating to the prosecution of the Licensed Patents, and (g) this
Agreement constitutes a valid and binding agreement of the Inventors,
enforceable against the Inventors, in accordance with its terms.

     7.3 Survival of Representations and Warrants. The representations and
         ----------------------------------------
warranties contained herein shall survive the execution, delivery and
performance of this Agreement by the parties, notwithstanding any investigation
at any time on or prior to the date hereof made by or on behalf of any party or
parties.

                      SECTION 8. THIRD PARTY INFRINGEMENT

     8.1 Third Party Infringement.

         8.1.1. Notice. In the event that either party becomes aware of any
                ------
substantial infringement of the Licensed Patents, such party shall notify the
other party of the substantial infringement in writing and must provide a
summary of the relevant facts and circumstances known to such party relating to
such infringement. Neither party will notify a third Person of the substantial
agreement of any of the Licensed Patents without first obtaining consent of the
other party, which consent shall not be unreasonably withheld or delayed. The
parties agree to consult with each other, prior to the commencement of any legal
or patent office proceedings, as to the most effective way of pursuing such
matter.

         8.1.2. Company Options. During the term of this Agreement, the Company
                ---------------
shall have the right, but shall not be obligated, to prosecute, at its own
expense, any infringements of the Licensed Patents, to defend the Licensed
Patents and to recover, for its own account, any damages, awards or settlements
resulting therefrom. The Inventors hereby agree that the Company may join one or
more of the Inventors as a party plaintiff in any such suit, without expense to
the Inventors. The Company shall hold harmless and indemnify the Inventors from
and against any order for costs arising without fault of the Inventors that may
be made against the Inventors by reason of being named a party plaintiff in such
proceedings. The Company shall have sole control of any such suit and all
negotiations for its settlement or compromise, provided that, the Company shall
not settle or compromise any such suit or enter into any consent order for the
settlement or compromise thereof that adversely affects the Licensed Patents
without

                                      -11-
<PAGE>

the prior written consent of a majority of the Inventors, or Jean-Louis Dasseux
(on behalf of the Inventors), which consent shall not be unreasonably withheld
or delayed. The total cost of any infringement action commenced or defended
solely by the Company shall be borne by the Company.

         8.1.3. Investors' Options. If, within one (1) year after having been
                ------------------
notified of any, potential infringement subject to the provisions of Sections
8.1.2, the Company shall have been unsuccessful in causing the alleged infringer
to desist and shall not have brought and shall not be diligently prosecuting an
infringement action, or if the Company notifies the Inventors at any time prior
thereto of its intention not to bring suit against any alleged infringer, then,
in those events only, the Inventors shall have the right, but shall not be
obligated, to prosecute, at their own expense, any infringements of the Licensed
Patents, to defend the Licensed Patents and to recover, for their own account,
any damages, awards or settlements resulting therefrom. The Company hereby
agrees that the Inventors may join the Company as a party plaintiff in any such
suit, without expense to the Company. The Inventors shall hold harmless and
indemnify the Company from and against any order for costs arising without fault
of the Company that may be made against the Company by reason of being named a
party plaintiff in such proceedings. The Inventors shall have sole control of
any such suit and all negotiations for its settlement or compromise, provided
that the Inventors shall not settle or compromise any such suit or enter into
any consent order for the settlement or compromise thereof that adversely
affects the Licensed Patents or any of the licenses or rights of the Company
hereunder, without the prior written consent of the Company which consent shall
not be unreasonably withheld or delayed. The total cost of any infringement
action commenced or defended solely by the Inventors shall be borne by the
Inventors.

     8.2 Infringement Charges Against the Company. In the event that any action,
         ----------------------------------------
suit or proceeding is brought against, or written notice or threat thereof is
provided to, the Company alleging infringement of any patent or unauthorized use
or misappropriation of technology arising out of or in connection with the
Company's practice of Licensed Patents, the Company shall defend at its own
expense such action, suit or proceeding and, in futherance of such rights, the
Inventors hereby agree that the Company may join one or more of the Inventors as
a party in such suit, without expense to the Inventors. The Company shall hold
harmless and indemnify the Inventors from and against any order for costs
arising without fault of the Inventors that may be made against the Inventors in
such proceedings. The Inventors agree to cooperate with the Company, at the
Company's expense, in connection with the Company's response to or defense of
such action, suit or proceeding, or notice or threat thereof

     8.3 Cooperation. In the event that a party shall undertake the enforcement
         -----------
and/or defense of the Licensed Patents by legal or patent office proceedings
pursuant to this Agreement, the other party shall, at the request and expense of
the party undertaking such enforcement and/or defense, cooperate in all
reasonable respects and, to the extent possible, have its employees testify when
requested and make available relevant records, papers, information, samples and
the like.

                                      -12-
<PAGE>

     8.4 Company Rights. The Company shall have the sole right in accordance
         --------------
with the terms and conditions hereof to sublicense any alleged infringer for
future use of the Licensed Patents to which it has exclusive rights under
Section 2.1 of this Agreement.

                           SECTION 9. INDEMNIFICATION

     9.1 Indemnification. The Company hereby agrees that it shall be responsible
         ---------------
for, indemnify, hold harmless and defend the Inventors and their Affiliates and
heirs, successors and assigns (collectively, the "Indemnities"), from and
against any and all claims, demands, losses, liabilities, damages, costs and
expenses (including the cost of settlement, reasonable legal and accounting fees
and any other expenses for investigating or defending any actions or threatened
actions) (collectively, "Losses") suffered or incurred by any Indemnitee arising
out of, relating to, resulting from or in connection with (a) a claim brought by
a third Person of personal injury (including death) or property damage caused by
a Licensed Product manufactured by or for the Company its Affiliates or
sublicensees, (b) the exercise of any of the rights and/or licenses granted
herein to Company, its Affiliates, or any sublicensee, and (c) any action, suit
or other proceeding, or compromise, settlement or judgment, relating to any of
the foregoing matters described in subparagraph (a) hereof with respect to which
the Indemnitees are entitled to indemnification hereunder. The foregoing shall
not apply to the extent that such Losses are due to the willful misconduct or
gross negligence of any of the Indemnitees.

     9.2 Notice of Claims. In the event that a claim is made pursuant to Section
         ----------------
9.1 above against any Indemnitee, the Indemnitee agrees to promptly notify the
Company of such claim or action and, in any such case the Company shall assume
control of the defense of such claim or action; provided, however, that (a) all
Indemnitees shall be entitled to participate therein (through a single counsel
of their own choosing) at the Indemnitees' sole cost and expense, (b) the
Indemnitees shall fully cooperate with the Company in all reasonable respects,
and (c) the Company shall not settle or compromise any such claim or action
without the prior written consent of the Indemnitees, unless such settlement or
compromise includes a general release of the Indemnities from any and all
liability with respect thereto and does not include an admission of liability on
the part of any Indemnitee, and does not impose any restriction on the conduct
by such Indemnitee of any of its activities.

                          SECTION 10. CONFIDENTIALITY

     10.1 Confidentiality. The parties each recognize that the Confidential
          ---------------
Information of the other party and any and all Affiliates and sublicensees
thereof constitute valuable confidential and proprietary information.
Accordingly, the parties each agree that they and any Affiliates shall, during
the term of this Agreement and for a period of five (5) years after the
termination hereof for any reason, hold in confidence all Confidential
Information of the other party (including this Agreement and the terms hereof)
and not use the same for any purpose other dm as set forth in this Agreement or
disclose the same to any other Person except to the extent that it is necessary
for such

                                      -13-
<PAGE>

party to enforce its rights under this Agreement or if required by law or any
governmental authority (including, without limitation, any stock exchange upon
which such party's shares or other equity securities may be traded); provided,
however' if any party shall be required by law to disclose any such Confidential
Information to any other Person, such party shall give prompt written notice
thereof to the other party and shall minimize such disclosure to the amount
required. Notwithstanding the foregoing, either party may disclose Confidential
Information of the other (a) to such party's attorneys, accountants and other
professional advisors under an obligation of confidentiality to such party, (b)
to such party's banks or other financial institutions or venture capital sources
for the purpose of raising capital or borrowing money or maintaining compliance
with agreements, arrangements and understandings relating thereto, and (c) to
any Person who proposes to purchase or otherwise succeed (by merger, operation
of law or otherwise) to all of such party's right, title and interest in, to and
under this Agreement, if such Person identified in subparagraphs (b) and (c) of
this Section IO. I agrees to maintain the confidentiality of such Confidential
Information pursuant to a written agreement in form and substance reasonably
satisfactory to the parties. The standard of care required to be observed
hereunder shall be not less than the degree of care which each party uses to
protect its own information of a confidential nature. The Company agrees that
any and all Affiliates and sublicensees thereof shall enter into and maintain
appropriate confidentiality agreements prior to receiving Confidential
Information belonging to the Inventors and/or relating to the subject matter of
this Agreement.

                SECTION 11. INTELLECTUAL PROPERTY; IMPROVEMENTS

     11.1 Rights to Propriety Technology. Neither party shall through this
          ------------------------------
Agreement obtain any rights to the other party's proprietary technology except
for such rights as are expressly granted or allocated under this Agreement.

     11.2 Improvements and Filing, Prosecution and Maintenance of Patents.
          ---------------------------------------------------------------

          11.2.1. Any improvement to the Licensed Patents, the Know-How or any
Licensed Product discovered or developed by any party during the term of this
Agreement shall be owned solely by such party, provided that, any Improvement
shall be subject to the license granted to Company under Section 2. 1(c) hereof.

          11.2.2. Subject to Company'sobligationsetforthinSection6.lhereofifany
improvements owned by either party are deemed patentable, such party shall be
entitled to file and prosecute patent applications related thereto and maintain
patents issued thereon, in its own name and, at its own cost. The other party
shall render reasonable assistance to such party in filing such applications
whenever requested to do so, at such party's sole cost and expense. The Company
and the Inventors agree to sign and execute such forms and documents as may be
reasonably requested by the other party as being necessary or desirable to vest
or confirm in such other party title to all such improvements owned by such
other party.

                                      -14-
<PAGE>

                     SECTION 12. LIMITATIONS ON LIABILITY

     12.1 No Warranties. Except as expressly set forth in Section 7 hereof,
          -------------
neither party makes any representations or warranties as to any matter
whatsoever. EACH PARTY HEREBY DISCLAIMS ANY AND ALL OTHER REPRESENTATIONS AND
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LICENSED PATENTS, THE
KNOW-HOW AND THE LICENSED PRODUCTS, INCLUDING, WITHOUT LMTATION, ANY WARRANTIES
OF MERCHANTABI]LITY OR FITNESS FOR ANY PARTICULAR PURPOSE.

     12.2 Limitations of Liability. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE
          ------------------------
LIABLE TO THE OTHER PARTY OR ANY OTHER PERSON FOR ANY SPECIAL, CONSEQUENTIAL OR
INDIRECT DAMAGES OF ANY KIND WHATSOEVER.

     12.3 Force Majeure. No party shall be liable for failure or delay in
          -------------
performing any of its obligations hereunder if such failure or delay is
occasioned by compliance with any governmental regulation, request or order, or
by circumstances beyond the reasonable control of the party so failing or
delaying, including, without limitation, Acts of God, war, insurrection, fire,
flood, accident, labor strikes, work stoppage or slowdown (whether or not such
labor event is within the reasonable control of the parties), or inability to
obtain raw materials, supplies, power or equipment necessary to enable such
party to perform its obligations hereunder. Each party shall (a) promptly notify
the other party in writing of any such event of force majeure, the expected
duration thereof and its anticipated effect on the ability of such party to
perform its obligations hereunder, and (b) make reasonable efforts to remedy any
such event of force majeure.

                          SECTION 13. NON-USE OF NAMES

     Neither party shall use the name of the other party nor the name of any of
Affiliates or employees of such other party, nor any adaptation thereof, in any
advertising, promotional or sales literature without prior written consent
obtained from such other party in each case (which consent shall not be
unreasonably withheld or delayed).

                           SECTION 14. PATENT MARKING

     The Company shall mark all Licensed Products made, used, offered for sale,
sold or imported under this Agreement, or their containers, in accordance with
the applicable patent marking laws.

                                      -15-
<PAGE>

                        SECTION 15. TERM AND TERMINATION

     15.1 Term. This Agreement shall be effective from the date of its execution
          ----
by the parties and, unless sooner terminated in accordance with the provisions
of this Section 15, shall continue until the later to occur of (i) 10 years from
the date of this Agreement, or (ii) the last to expire of any Patent included
within the Licensed Patents.

     15.2 Events of Default. Each party shall have the right to terminate this
          -----------------
Agreement upon the occurrence of any of the following events (each, an "Event of
                                                                        --------
Default") with respect to the other party (the "Defaulting Party"): (a) to the
-------                                         ----------------
extent permitted by law, the Inventors may terminate this Agreement if a decree
or order shall have been entered by a court of competent jurisdiction adjudging
the Company bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, readjustment, arrangement, composition or similar relief
for the Company under any bankruptcy law or any other similar applicable
statute, law or regulation, or a decree or order of a court of competent
jurisdiction shall have been entered for the appointment of a receiver or
liquidator or trustee or assignee in bankruptcy or insolvency of the Company or
a substantial part of its property, or for the winding up or liquidation of its
affairs; and (b) to the extent permitted by law, the Inventors may terminate
this Agreement if the Company shall institute proceedings to be adjudicated a
voluntary bankrupt, or shall consent to the filing of a bankruptcy petition
against it, or shall file a petition or answer or consent seeking
reorganization, readjustment, arrangement, composition, liquidation or similar
relief under any bankruptcy law or any other similar applicable statute, law or
regulation, or shall consent to the appointment of a receiver or liquidator or
trustee or assignee in bankruptcy or insolvency of it or of a substantial part
of its property, or shall make an assignment for the benefit of creditors, or
shall be unable to pay its debts generally as they become due.

     15.3 Termination. Each party may terminate this Agreement upon the
          -----------
occurrence of an Event of Default specified in Section 15.2 by giving written
notice thereof to the other party, which notice shall specifically identify the
reason(s) for such termination. In addition, (i) the Company may terminate this
Agreement at any time by giving at least ninety (90) days' prior written notice
to the Inventors; and (ii) this Agreement shall terminate upon written notice of
a material breach of the terms of this Agreement to a Defaulting Party unless
the same and all of its effects are remedied within thirty (30) days after such
written notice thereof is given by the other party to the Defaulting Party. The
failure by the Company substantially to comply with the diligence obligations
set forth in Section 3.1 of this Agreement, or to pay the Inventors any
royalties or other payments when due and payable in accordance with the
provisions of Section 4 hereof shall be deemed a material breach of this
Agreement.

     15.4 Consequences of Termination. Upon the termination of this Agreement by
          ---------------------------
the Company for any reason other than an Event of Default on the part of the
Inventors, all rights and obligations of the Company hereunder shall revert to
the Inventors. The termination of this Agreement for any reason shall be without
prejudice to (i) the right of the Inventors to receive all amounts accrued under
Section 4 hereof prior to the effective date of such termination, (ii) the
rights and obligations of the parties

                                      -16-
<PAGE>

pursuant to Sections 6, 8 and 9 hereof, and (iii) any other remedies as may now
or hereafter be available to any party, whether under this Agreement or
otherwise. Upon any termination of this Agreement which results in the reversion
to the Inventors of the rights and obligations of the Company hereunder pursuant
to the first sentence of this Section 15.4 (a) the Company and its Affiliates
and sublicensees shall immediately discontinue the manufacture, use and sale of
the Licensed Products, and (b) each party and its Affiliates shall immediately
cease the use of all Confidential Information obtained from the other party or
any Affiliate thereof, provided that, upon termination of this Agreement by the
Company, the Inventors may, in their sole discretion, ratify and maintain in
full force and effect any sublicense(s) of the rights granted under this
Agreement.

                          SECTION 16. EXPORT CONTROLS

         All obligations to furnish goods, technology, or software under this
Agreement are subject to U.S. Export Control Laws and Regulations. Company
agrees to comply fully with all applicable laws and regulations before exporting
any goods, technology, or software to any Person. Company recognizes and agrees
that its obligations to comply with U.S. export control laws and regulations
survive the termination or expiration of this Agreement.

                           SECTION 17. MISCELLANEOUS

     17.1 Notices. All notices, reports and/or other communications made in
          -------
accordance with this Agreement, shall be deemed to be duly made or given (i)
when delivered by hand, (ii) three days after being mailed by registered or
certified mail (air mail if mailed overseas), return receipt requested, or (iii)
when received by the addressee, if sent by facsimile transmission or by Express
Mail, Federal Express or other express delivery service (receipt requested), in
each case addressed to such party at its address set forth below (or to such
other address as such party may hereafter designate as to itself by notice to
the other party hereto):

         In the case of the Company:

                  Esperion Therapeutics, Inc.
                  3621 S. State Street
                  695 KMS Place
                  Ann Arbor, MI 48108
                  Attention: President
                  Telecopier: (734)  332-0516

                                      -17-
<PAGE>

         with a copy to:

                  Sills Cummis Radin
                  Tischman Epstein & Gross, P.A.
                  One Riverfront Plaza
                  Newark, New Jersey  07102
                  Attention: Ira A. Rosenberg, Esq.
                  Telecopier: (973)  643-6500

         In the case of the Inventors:

                  To his or her address set forth at the beginning of this
                  Agreement

         with a copy to:

                  Ann L. Gisolfi, Esq.
                  Pennie & Edmonds LLP
                  1155 Avenue of the Americas
                  New York, New York 10036
                  Telecopier: (212)  869-9741

     17.2 Amendment, etc. This Agreement may not be amended or modified, nor may
          --------------
any right or remedy of any party be waived, unless the same is in writing and
signed by such party or a duly authorized representative of such party. The
waiver by any party of the breach of any term or provision hereof by any other
party shall not be construed as a waiver of any other subsequent breach.

     17.3 No Waiver: Remedies. No failure or delay by any party in exercising
          -------------------
any of its rights or remedies hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or remedy preclude any
other or further exercise thereof or the exercise of any other right or remedy.
The rights and remedies of the parties provided in this Agreement are cumulative
and not exclusive of any rights or remedies provided by law.

     17.4 Assignment. Neither party may assign or otherwise transfer this
          ----------
Agreement or any -of its rights, duties or obligations hereunder without the
prior written consent of the other party.

     17.5 Sublicense of Rights by the Company. If the Company sublicenses any of
          -----------------------------------
its rights under this Agreement to a sublicensee, such sublicensee shall be
bound by the terms and conditions of this Agreement. The Company shall advise
the Inventors in writing of any such sublicense and provide the Inventors with a
copy of any sublicense within thirty (30) days of execution of such sublicense;
provided that, the Company may redact such copy to delete any financial
provisions.

     17.6 The Company as Guarantor. The Company shall guarantee and be
          ------------------------
responsible for the payment of all royalties due and the making of reports under
this

                                      -18-
<PAGE>

Agreement by reason of the development and sales of any Licensed Products by the
Company, its Affiliates and sublicensees and their compliance with all
applicable terms of this Agreement. The performance or satisfaction of any
obligations of the Company under this Agreement by any of its Affiliates or
sublicensees shall be deemed performance or satisfaction of such obligation by
the Company.

     17.7 Relationship of Parties. The Company, on the one hand, and the
          -----------------------
Inventors, on the other hand, are not (and nothing in this Agreement shall be
construed to constitute them) partners, joint venturers, agents, representatives
or employees of each other (except that Jean-Louis Dasseux is an employee of the
Company), nor to create any relationships between them other than that of an
independent contractor. Neither the Company, on one hand, nor the Inventors, on
the other hand, shall have any responsibility or liability for the actions of
the other party except as specifically provided herein. Neither the Company, on
one hand, nor the Inventors, on the other hand, shall have any right or
authority to bind or obligate the other in any manner or make any representation
or warranty on behalf of the other. The foregoing provisions of this Section
17.7 relate solely to the relationship between the Company, on the one hand, and
the Inventors, on the other hand. All covenants, representations and warranties
of the Inventors hereunder are joint and several obligations of the Inventors to
the Company hereunder and one or more Inventors may act as agent or
representative of the other Inventors hereunder to the extent expressly provided
herein.

     17.8 Expenses. Unless otherwise provided herein, all costs and expenses
          --------
incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party which shall have incurred the same and the
other party shall have no liability relating thereto.

     17.9 Entire Agreement. This Agreement constitutes the entire agreement
          ----------------
between the parties and supersedes all prior proposals, communications,
representations and agreements, whether oral or written, with respect to the
subject matter hereof.

     17.10 Severability. Any term or provision of this Agreement which is
           ------------
invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions hereof in any other jurisdiction.

     17.11 Counterparts. This Agreement may be signed in any number of
           ------------
counterparts,each of which shall be deemed an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument.

     17.12 Headings. The headings used in this Agreement are for convenience of
           --------
reference only and shall not affect the meaning or construction of this
Agreement.

     17.13 Governing Law. This Agreement, including the performance and
           -------------
enforceability hereof, shall be governed by and construed in accordance with the
laws of the State of Michigan, without reference to choice of law doctrine. Each
party hereby

                                      -19-
<PAGE>

submits itself for the sole purpose of this Agreement and any controversy
arising hereunder to the jurisdiction of the courts located in the State of
Michigan and any courts of appeal therefrom, and waives any objection (on the
grounds of lack of jurisdiction, or forum non conveniens or otherwise) to the
                                          --- ----------
exercise of such jurisdiction over it by any such courts.

     17.14 Arbitration. Except as expressly provided herein, any dispute,
           -----------
controversy, or claim arising out of or relating to this Agreement, its
validity, construction or enforceability or the breach of any of the terms or
provisions hereof shall be settled by arbitration under the Commercial
Arbitration Rules of the American Arbitration Association by a panel of three
arbitrators, one selected by each party and the third selected by the other two
arbitrators. Any arbitration proceeding commenced by either party shall be held
in the New York City, New York. The decision of the arbitrators shall be final
and binding upon the parties and judgment upon the decision by the arbitrators
may be entered in any court of competent jurisdiction, and execution may be had
thereon. The expense of such arbitration, including attorneys' fees, shall be
allocated between the parties as the arbitrators may decide and as the claims
and interests of each party may prevail. Notwithstanding anything to the
contrary contained in this Section 17.14, any dispute, controversy or claim
relating to actual or threatened unauthorized use or disclosure of any
Confidential Information, or the validity, applicability, enforceability or
infringement of any patent rights, shall not be required to be submitted to
arbitration hereunder and may be resolved by a court of competent jurisdiction.

     17.15 Representative of Inventors. Each of Inventors, by executing this
           ---------------------------
Agreement, irrevocably appoints Jean-Louis Dasseux (the "Inventors'
Representative") as his agent and true and lawful attorney-in-fact, with full
power of substitution, with full capacity and authority and in his sole
discretion, to act in the name of and for and on behalf of each of them in
connection with all matters arising out of, resulting from, contemplated by or
related or incident to this Agreement. Without limiting the generality of the
foregoing, the powers of the Inventors' Representative shall include the power
to represent each of the Inventors with respect to all aspects of this
Agreement, which power shall include, without limitation, the power to (i)
receive any payment or transfer to be made pursuant to this Agreement, (ii)
waive any and all conditions of this Agreement, (iii) amend this Agreement and
any agreement executed in connection herewith in any respect, (iv) settle claims
for indemnity pursuant to Section 9.1 hereof, (v) retain legal counsel and be
reimbursed by Inventors for all fees, expenses and other charges of such legal
counsel, (vi) receive notices or other communications, (vii) deliver any
notices, certificates or other documents required, and (viii) take all such
other action and to do all such other things as the Inventors' Representative
deems necessary or advisable with respect to this Agreement. The Company shall
have the absolute right and authority to rely upon the acts taken or omitted to
be taken by the Inventors' Representative on behalf of the Inventors and the
Company shall have no duty to inquire as to the acts and omissions of Inventors'
Representative. Each of the Inventors acknowledge and agree that (i) all
deliveries by the Company to Inventors Representative shall be deemed deliveries
to each of the Inventors, (ii) the Company shall not have any liability with
respect to any aspect of the distribution or communication of such deliveries

                                      -20-
<PAGE>

between the Inventors' Representative and any of the Inventors or among any
thereof, and (iii) any disclosure made to the Inventors Representative by or on
behalf of the Company shall be deemed to be disclosure made to each. In the
event the Inventors' Representative refuses to, or is no longer capable of,
serving as Inventors' Representative hereunder, each of the Inventors shall
promptly appoint a successor Inventors' Representative who shall thereafter by a
successor Inventors' Representative hereunder.

                            [SIGNATURE PAGE FOLLOWS]

                                      -21-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written below.

                                                     EXPERION THERAPEUTICS, INC.

                                          By:  /s/ Roger S. Newton
                                             ----------------------------------
                                               Roger S. Newton, President & CEO

                                               /s/ Jean-Louis Dasseux
                                             ----------------------------------
                                               Jean-Louis Dasseux

                                               /s/ Renate Sekul
                                             ----------------------------------
                                               Renate Sekul

                                               /s/ Klaus Buttner
                                             ----------------------------------
                                               Klaus Buttner

                                               /s/ Isabelle Cornut
                                             ----------------------------------
                                               Isabelle Cornut

                                               /s/ Guenther Metz
                                             ----------------------------------
                                               Guenther Metz

                                               /s/ Jean Defourcq
                                             ----------------------------------
                                               Jean Dufourcq

                                      -22-
<PAGE>

                                  APPENDIX A
                                  ----------

                        Amended as of February 22, 2000

--------------------------------------------------------------------------------
         Title                        Patent No.              Issue Date
         -----                        ----------              -----------
--------------------------------------------------------------------------------
APOLIPOPROTEIN AI               US 6,004,925            12/21/99
AGONISTS AND THEIR USE
TO TREAT DYSLIPIDEMIC
DISORDERS (10001)
--------------------------------------------------------------------------------
<PAGE>

<TABLE>
<CAPTION>
                                                            APPENDIX B
                                                            ----------

                                                  Amended as of February 22, 2000

---------------------------------------------------------------------------------------------------------------------------
                        Title                                                   Serial No.              Filing Date
                        -----                                                   ----------              -----------
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                             <C>                     <C>
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               PCT/US98/20327          09/28/98
DYSLIPIDEMIC DISORDERS (10001)
-------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               08/940,096              09/28/97
DYSLIPIDEMIC DISORDERS (5005)
---------------------------------------------------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               PCT/US98/20326          09/28/98
DYSLIPIDEMIC DISORDERS (50051)
-------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               08/940,093              09/28/97
DYSLIPIDEMIC DISORDERS (18-mer)
-------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               PCT/US98/20328          09/28/81
DYSLIPIDEMIC DISORDERS (18-mer)
---------------------------------------------------------------------------------------------------------------------------
GENE THERAPY APPROACHES TO SUPPLY APOLIPOPROTEIN                                08/940,136              09/29/97
A-I AGONISTS AND THEIR USE TO TREAT DYSLIPIDEMIC
DISORDERS
-------------------------------------------------------------------------------
GENE THERAPY APPROACHES TO SUPPLY APOLIPOPROTEIN                                PCT/US98/20329          09/28/98
A-I AGONISTS AND THEIR USE TO TREAT DYSLIPIDEMIC
DISORDERS
---------------------------------------------------------------------------------------------------------------------------
PEPTIDE/LIPID COMPLEX FORMATION BY CO-                                          08/942,597              10/02/97
LYOPHILIZATION
---------------------------------------------------------------------------------------------------------------------------
PEPTIDE/LIPID COMPLEX FORMATION BY CO-                                          PCT/US98/20330          09/28/98
LYOPHILIZATION
---------------------------------------------------------------------------------------------------------------------------
MULTIMERIC APO AI AGONIST COMPOUNDS                                             09/453,841              12/01/99
---------------------------------------------------------------------------------------------------------------------------
MULTIMERIC APO AI AGONIST COMPOUNDS                                             09/453,840              12/01/99
---------------------------------------------------------------------------------------------------------------------------
BRANCHED APO AI AGONIST COMPOUNDS                                               09/453,833              12/01/99
---------------------------------------------------------------------------------------------------------------------------
LIPID COMPLEXES OF APO AI AGONIST COMPOUNDS                                     09/453,838              12/01/99
---------------------------------------------------------------------------------------------------------------------------
METHOD OF TREATING DYSLIPIDEMIA                                                 09/453,826              12/01/99
---------------------------------------------------------------------------------------------------------------------------
METHOD OF TREATING SEPTIC SHOCK                                                 09/453,605              12/01/99
---------------------------------------------------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               09/453,834              12/01/99
DYSLIPIDEMIC DISORDERS (10001)
---------------------------------------------------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               09/465,719              12/17/99
DYSLIPIDEMIC DISORDERS (5005)
---------------------------------------------------------------------------------------------------------------------------
APOLIPOPROTEIN AI AGONISTS AND THEIR USE TO TREAT                               09/465,718              12/17/99
DYSLIPIDEMIC DISORDERS (18-mer)
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

The foregoing Amended Appendices A and B to the License Agreement entered into
between Esperion Therapeutics, Inc. and the Inventors on August 23, 1999 are
hereby Acknowledged and Agreed to:

/s/ Roger S. Newton                             2/22/00
--------------------------------            ---------------------------
By Esperion Therapeutics, Inc.              Date

/s/ Jean-Louis Dasseux                      February 22, 2000
---------------------------------           ---------------------------
By the Inventors,
  as represented by Jean-Louis Dasseux<PAGE>

Confidential treatment requested for portions of this document.

                                                                    Exhibit 10.4

                               LICENSE AGREEMENT

                                    between

                        INEX PHARMACEUTICALS CORPORATION

                                      and

                          ESPERION THERAPEUTICS, INC.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.
<PAGE>

                               LICENSE AGREEMENT
                               -----------------

     LICENSE AGREEMENT dated as of the ___ 16th ___ day of March, 1999 between
INEX PHARMACEUTICALS CORPORATION, a British Columbia corporation, having its
principal place of business at 100 - 8900 Glenlyon Parkway, Burnaby, B.C.
Canada V5J 5J8 (hereinafter referred to as "INEX"), and ESPERION THERAPEUTICS,
INC., a Delaware corporation having its principal place of business at 3621 S.
State Street, 695 KMS Place, Ann Arbor, MI, 48108, USA (hereinafter referred to
as "ESPERION").

                                  INTRODUCTION

1.  INEX has research and development facilities and experienced scientists,
technical associates and assistants and other personnel which enable it to
conduct research and development activities in the area of biotechnology and the
application thereof to the development, production and manufacture of
pharmaceutical products using that technology.

2.  ESPERION is in the business of the research and development of
pharmaceutical products.

3.  INEX is the assignee of European Patent serial number EP 0461559 Bl entitled
"Wirkstofffreie Liposomen zur Behandlung von Atherosklerose," granted and
registered in various states of the European Union (herein sometimes called
"Braun").

4.  The University of British Columbia, Vancouver, B.C.  Canada ("UBC") is the
assignee of US Patent Application S.N.  08/507,170 entitled "Liposome
Compositions and Methods for the Treatment of Atherosclerosis" (herein sometimes
called "Hope/Rodrigueza").

5.  INEX has by license agreement with UBC the right to sublicense
Hope/Rodrigueza, on terms and conditions set out therein, and subject to the
prior written consent of UBC.

6.  ESPERION desires to license from INEX the exclusive right to develop, make,
have made, use, import and sell products subject to Hope/Rodrigueza, Braun and
certain improvements to these patents.

7.  INEX is willing, for the consideration and on the terms set forth herein, to
license ESPERION for such purposes.

In consideration of the mutual covenants and promises contained in this
Agreement and other good and valuable consideration, INEX and ESPERION agree as
follows:

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.

                                       2
<PAGE>

                                  ARTICLE I.
                                  DEFINITIONS

As used in this Agreement, the following terms, whether used in the singular or
plural, shall have the following meanings:

        1.1 "Affiliate" means any corporation, company, partnership, joint
             ---------
venture or other person or entity which controls, is controlled by or is under
common control with a Party. For purposes of this Section 1. 1, "control" shall
mean (a) in the case of corporate entities, direct or indirect ownership of at
least 50% of the stock or shares entitled to vote for the election of directors;
and (b) in the case of non-corporate entities, direct or indirect ownership of
at least 50% of the equity interest or the power to direct the management and
policies of such noncorporate entities.

        1.2 "Combination Product(s)" means a product that includes a Licensed
             ---------------------
Product sold in combination with another component(s) whose manufacture, use or
sale by an unlicensed party would not constitute an infringement of the Licensed
Patents or Know-How.

        1.3 "Confidential Information" means (a) all proprietary information and
             ------------------------
materials, patentable or otherwise, of a Party which is disclosed in writing by
or on behalf of such Party to the other Party, including DNA sequences, vectors,
cells, substances, formulations, techniques, methodology, equipment, data,
reports, know-how, preclinical and clinical trials and the results thereof,
sources of supply, patent positioning and business plans, including any negative
developments, and (b) any other information, oral or written, designated in
writing by the disclosing Party to the other Party as confidential or
proprietary within ten (IO) days of such disclosure, whether or not related to
the making, use, importing or selling of Licensed Products.

        1.4 "Distributor" means a third party which is not an Affiliate or
             -----------
Sublicensee of ESPERION and which is a distributor, wholesaler or other entity
purchasing Licensed Products from ESPERION or an Affiliate or Sublicensee for
resale.

        1.5 "Enhancements" means any information, patentable or otherwise,
             ------------
developed or acquired by ESPERION (other than information licensed from INEX
pursuant to the terms of Section 2.1 of this Agreement) during the term of this
Agreement which is required to develop, use or manufacture Licensed Products and
which is related solely to compositions and uses of Large Unilammelar Vesicles
(LUVS) and is otherwise not associated with any therapeutic agent other than an
apoprotein or other cholesterol lowering drug.

        1.6    "Field" means
                -----

       For the Hope/Rodrigueza and Braun patents, human and veterinary
therapeutics (the "Basic Field");

                                       3
<PAGE>

       For Improvements, human and veterinary therapeutics, but limited to
products that use or include Large Unilammelar Vesicles (LUVS) as a therapeutic
agent which are not associated with any other therapeutic agent other than an
apoprotein (the "Improvements Field");

       For Know-How, human and veterinary therapeutics, but limited to products
that use or include Large Unilammelar Vesicles (LUVS) as a therapeutic agent
which are not associated with any other therapeutic agent other than an
apoprotein (the "Know-How Field");

       Together, the Basic Field, Improvements Field and Know-How Field comprise
the Field.

        1.7 "Future INEX Technology" means future inventions conceived, acquired
             ----------------------
or reduced to practice by INEX outside the scope of a development and supply
agreement between the parties as contemplated in Article VII after the date of
this Agreement.

        1.8 "Improvements" means any inventions or improvements conceived,
             ------------
reduced to practice, developed, acquired or controlled by INEX or any of its
Affiliates at any time after the date hereof under a development and commercial
supply agreement between the Parties as contemplated in Article VII. For greater
clarity, "Improvements" does not include Future INEX Technology.

        1.9 "IND" means an Investigational New Drug application or its
equivalent or any corresponding foreign application or registration.

        1.10 "Know-How" means all trade secret and/or confidential and
proprietary information, without regard to form, including but not limited to,
technical or non-technical data, formulas, patterns, compilations, programs,
devices, methods, techniques, drawings, discoveries and/or inventions which have
been developed, acquired, or are controlled by INEX or any of its Affiliates as
of the date of this Agreement, for use in connection with the development or
uses of methods or compositions which are disclosed by INEX to ESPERION. Such
"Know-How" must not be generally known by, or readily ascertainable by proper
means by others and must have been the subject of reasonable efforts to maintain
its secrecy. Information shall no longer be considered to be Know-How, should
the information become publicly known through no fault of ESPERION or should it
be disclosed to ESPERION by a person under no obligation of confidentiality.

        1.11  "Licensed Patents" means

        Hope/Rodrigueza - United States patent application serial number
        ---------------
08/507,170 entitled "Liposome Compositions and Methods for the Treatment of
Atherosclerosis", and any patent claims issued therefrom and patent claims
issued from any corresponding continuations, continuations-in-part, divisions,
re-exams, or foreign applications claiming priority from such application;

                                       4
<PAGE>

        Braun - European Patent serial number EP 04615 59 B 1 entitled
        -----
"Wirkstofffreie Liposomen zur Behandlung von Atherosklerose," registered in
Switzerland, Sweden, Spain, Austria, Netherlands, Luxembourg, Italy, United
Kingdom, Greece, France, Denmark, Belgium, Germany and any patent claims issued
from any corresponding continuations, continuations-in-part, divisions, reissues
and foreign applications claiming priority from such patent;

        Improvements shall be included as invented pursuant to a development and
commercial supply agreement as contemplated in Article VII; and

        Future INEX Technology in the Improvements Field may be included upon
written agreement signed by the Parties pursuant to Section 2.2 hereof

        For greater clarity, Licensed Patents excludes other currently existing
intellectual property of INEX, except those required to practice the inventions
defined by the Hope/Rodrigueza and Braun patents.  "Required to practice" as
used in this definition means necessary, not just useful or useable.  INEX
represents and warrants that it has no knowledge of any such other currently
existing intellectual property of INEX which is required to practice the
inventions defined by the Hope/Rodrigueza and Braun patents.

        1.12 "Licensed Products" means human and veterinary therapeutic
              -----------------
compositions and methods which, but for an immunity from suit under the Licensed
Patents or Know-How, would infringe one or more of the Licensed Patents or Know-
How.

        1.13 "NDA" means a New Drug Application or its equivalent or any
              ---
corresponding foreign application or registration.

        1.14 "Net Annual Sales" means the aggregate United States dollar
              ----------------
equivalent of gross revenues derived by or payable to ESPERION or its Affiliates
from or on account of the sale of Licensed Products to third parties, in any
given calendar year, less (a) reasonable credits or allowances, if any, actually
granted on account of price adjustments, recalls, rejection or return of items
previously sold, (b) excise taxes, sales taxes, value added taxes, consumption
taxes, customs and other duties or other taxes imposed upon and paid with
respect to such sales (excluding income or franchise taxes of any kind), (c)
separately itemized insurance and transportation costs incurred in shipping
Licensed Products to such third parties and (d) fees paid to Distributors,
dealers and other persons or entities which are not Affiliates of ESPERION but
which purchase Licensed Products from Esperion or its Affiliates for resale
(collectively, the "Permitted Deductions"). No deduction shall be made for any
item of cost incurred by ESPERION, its Affiliates, or Distributors in preparing,
manufacturing, shipping or selling Licensed Products except as permitted
pursuant to clauses (a), (b), (c) and (d) of the foregoing sentence. Net Annual
Sales shall not include any transfer between any of ESPERION and any of its
Affiliates for resale. Fair market value shall be assigned to any and all non-
cash consideration such as but not limited to any credit, barter, benefit,
advantage or concession received by

                                       5
<PAGE>

ESPERION or its Affiliates in payment for Licensed Products. As used in this
definition, a "sale" shall have occurred when Licensed Products are billed out
or invoiced. Notwithstanding anything herein to the contrary, the following
shall not be considered a sale of a Licensed Product under this Agreement: (i)
the transfer of a Licensed Product to a third party without consideration to
ESPERION in connection with the development or testing of a Licensed Product; or
(ii) the transfer of a Licensed Product to a third party without consideration
in connection with the marketing or promotion of the Licensed Product (e.g.,
                                                                       ---
pharmaceutical samples).

        1.15 "Party" means INEX or ESPERION; "Parties" means INEX and ESPERION.
               -----

        1.16 "Sublicensee" means a third party which is not an Affiliate of
              -----------
ESPERION and to whom ESPERION has granted a sublicense to make, have made, use,
import or sell Licensed Products. Without limiting the generality of the
foregoing, a Sublicensee shall be deemed to include any third party who is
granted a sublicense hereunder by ESPERION pursuant to the terms of the outcome
or settlement of any infringement or threatened infringement action.

        1.17 "Sublicensing Royalties" means all royalties, revenues, receipts,
              ----------------------
monies and the fair market value of all non-cash consideration such as but not
limited to any credit, barter, benefit, advantage or concession payable to
ESPERION by a Sublicensee which is, or may be reasonably construed as being
calculated on or based on the making, using or selling of Licensed Products by
the Sublicensee. For the avoidance of doubt, Sublicensing Royalties shall not
include payments which are reasonably construed as initial or periodic sub-
licensing fees, funds for research and development, milestone payments or equity
investments.

        1.18 "Territory" means worldwide.
               ---------
        1.19 "UBC License Agreement" means the License Agreement dated July 1,
              ---------------------
1998 by and between INEX and UBC.

        1.20 "Valid Claim" means a claim of an unexpired issued patent which
              -----------
shall not have been withdrawn, canceled or disclaimed, nor held invalid by a
court of competent jurisdiction in an unappealed or unappealable decision.

                                  ARTICLE II.

                          PATENT AND KNOW-HOW LICENSES

        2.1 Licenses. Subject to the payment of the Milestone Payments provided
            --------
for in Article III of this Agreement, the royalties provided for in Article IV
or this Agreement

                                       6
<PAGE>

and the fulfillment of the other terms and conditions of this Agreement, and
subject to the reservation set forth in Section 2.3 hereof, INEX hereby grants
to ESPERION:

                (a) an exclusive license for the Field in the Territory under
the Licensed Patents; and

                (b) an exclusive license for the Field to use the Know-How in
the Territory; for the sole and exclusive purpose of developing, making, having
made, importing, using and selling Licensed Products in the Territory, including
the right to grant sublicenses under these rights as set out in Section 2.4
hereof. The licenses granted pursuant to Section 2. 1 (a) shall continue in
effect until the expiration of the last patent licensed to ESPERION hereunder,
or until otherwise terminated according to this Agreement. The licenses granted
pursuant to Section 2.1 (b) shall continue in effect as provided in Section 4. 1
(b) of this Agreement.

        2.1.1.  Exclusivity.  In order to establish exclusivity for ESPERION,
                -----------
INEX hereby agrees that it shall not, without ESPERION's prior written consent,
grant to any other person or entity a license or other right, under the Licensed
Patents or Know-How, to develop, make, have made, import, use, lease and/or sell
Licensed Products in the Field during the period of time in which this Agreement
is in effect.

        2.2.  Further Right.  ESPERION shall have the first right to
              -------------
negotiate an exclusive license in the Improvements Field to any Future INEX
Technology. If the Parties are unable to agree on the terms of such exclusive
license, INEX will not license such Future INEX Technology to a third party on
more favourable financial terms than those first offered to ESPERION. This fight
shall be exhausted as to any specific item of Future INEX Technology upon
ESPERION's failure to initiate negotiations within thirty (30) days of receiving
terms for such exclusive license for such specific item of Future INEX
Technology, or having initiated negotiations, upon the Parties' failure to
execute such exclusive license within a reasonable period but in any event not
less than ninety (90) days.

        2.3.  Reservation of Rights.  INEX retains the non-exclusive right
              ---------------------
under the Licensed Patents and the Know-How to practice the inventions solely
for internal research purposes in the Field, which right shall not be assigned,
sublicensed or delegated without ESPERION's consent. ESPERION and INEX
acknowledge and agree that UBC may use Hope/Rodrigueza without charge in any
manner whatsoever for research, scholarly publication, educational or other non-
commercial use. INEX may not use Hope/Rodrigueza for any commercial purpose in
the Field.

        2.4.  Sublicenses.  ESPERION shall have the right to sublicense
              -----------
rights granted in Section 2. 1, subject to MX's right to review and comment on
the proposed sublicense as provided below. ESPERION shall provide a brief
summary of the nature of the proposed sublicense and the name of such proposed
sublicensee, except to the extent prohibited by the terms of any confidentiality
agreement between ESPERION and such proposed sublicensee, and sufficient
portions of the proposed sublicensing agreement to

                                       7
<PAGE>

permit RNEX to evaluate whether the agreement contains covenants by the
Sublicensee to observe and perform similar terms and conditions to those in the
UBC License Agreement and in this Agreement. If INEX does not provide ESPERION
with its comments within ten (IO) calendar days after such request is given by
ESPERION, INEX shall be deemed to have waived its right to review and comment.
Within ten (IO) calendar days after execution of a sublicensing agreement,
ESPERION shall provide INEX with a copy thereof. Within thirty (30) calendar
days after receiving such copy, INEX shall notify ESPERION, in express terms, of
any deficiency or failure of the sublicensing agreement to satisfy the terms and
conditions of the UBC License Agreement and this Agreement. The consent of UBC
shall not be required. All sublicenses granted by ESPERION shall be personal to
the sublicensee and shall not be assignable without the prior written consent of
INEX, except as provided by this Section 2.4. Such sublicenses shall terminate
upon the termination of ESPERION's rights granted herein unless events of
default are cured by ESPERION or Sublicensee within sixty (60) days of
notification by INEX of default and/or as provided by the terms of this
Agreement. Each sublicense shall contain covenants by the Sublicensee to observe
and perform similar terms and conditions to those in the UBC License Agreement
and in this Agreement. INEX agrees that if ESPERION has provided to INEX notice
that ESPERION has granted a sublicense to a Sublicensee under this Agreement,
then in the event INEX terminates this Agreement for any reason provided
hereafter, INEX shall provide to such Sublicensee written notice of such
termination no less than sixty (60) days prior to the effective date of such
termination. The Sublicensee may during such sixty (60) day period provide to
INEX notice wherein the Sublicensee: (a) reaffirms the terms and conditions of
this Agreement as it relates to the rights the Sublicensee has been granted
under the sublicense; (b) agrees to abide by all of the terms and conditions of
this Agreement applicable to Sublicensees and to discharge directly all
pertinent obligations of ESPERION which ESPERION is obligated hereunder to
discharge with respect to such sublicense; and (c) acknowledges that INEX shall
have no obligations to the Sublicensee other than its obligations set forth in
this Agreement with regard to ESPERION. INEX agrees that upon such Sublicensee's
notice and provided such Sublicensee is not in material breach of its
sublicense, INEX shall grant to such Sublicensee license rights and terms
equivalent to the sublicense rights and terms which ESPERION shall have granted
to such Sublicensee.

        2.5.  Delivery of Know-How. Upon execution and delivery by the parties
              --------------------
of this Agreement, INEX shall make available to ESPERION originals or copies of
all of its records, data and documentation relating to the Licensed Patents and
Know-How, including, without limitation, scientific data and regulatory
submissions and documentation, manufacturing process, reagents, formulations and
other information relevant to the development, manufacture, purification,
formulation, use, importation or sale of any Licensed Products.

                                       8
<PAGE>

                                 ARTICLE III.

                     MILESTONE PAYMENTS AND SUBLICENSE FEES

        3.1 Milestone Payments. In consideration of the licenses granted by INEX
            ------------------
to ESPERION under this Agreement, ESPERION shall make the following milestone
payments to INEX:

                 Milestone                                Amount
                 ---------                                ------

1. Execution of this Agreement                          US$250,000

2. Upon the enrollment of the first                     US[**    ]
   patient in a Phase II Clinic Trial

3. Upon the enrollment of the first                     US[**    ]
   patient in a Phase III Clinic Trial

4. Upon submission of first NDA in                      US[**    ]
   U.S. or Europe

5. Upon approval of first NDA in                        US[**    ]
   U.S. or Europe

                                        Total           US$8.75 Million
                                                        ===============

        ESPERION shall make the milestone payments to INEX whether the milestone
is achieved by ESPERION itself, or by an Affiliate or a Sublicensee.  For the
purposes of this Section 3.  1, "Phase II Clinical Trial" shall mean a clinical
trial for which an efficacy endpoint is defined in the clinical protocol and for
which data are collected and "Phase III Clinical Trial" shall mean a clinical
trial which is sized to enable measurement of statistically significant efficacy
for the purposes of filing for approval with regulatory authorities.

        3.2. Independent Consideration. Subject to the credits described in
             -------------------------
Section 4.2 of this Agreement, the amounts payable to INEX pursuant to Section
3.1 hereof shall be in addition to, and not in lieu of, the royalties payable to
INEX pursuant to Article IV of this Agreement.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission.  The omitted
portions have been filed separately with the Commission.

                                       9
<PAGE>

                                  ARTICLE IV.

                         PATENT AND KNOW-HOW ROYALTIES

        4.1 Royalties.
            ---------
                (a) ESPERION shall pay to INEX during the term of the licenses
granted in Section 2.1 of this Agreement earned royalties at the rate set forth
on Schedule A hereto on all Net Annual Sales in the Territory of Licensed
Products by ESPERION, its Affiliates, and Distributors. If a Licensed Product is
made, used or sold by a Sublicensee in any part of the Territory, ESPERION shall
pay to INEX the earned royalties on all Sublicensing Royalties as set out in
Schedule A hereto. One royalty on either Licensed Patents or Know-How shall be
due with respect to each sale of a Licensed Product; and under no circumstance
shall ESPERION be obligated to pay both royalties.

                (b)  Royalties based upon Licensed Products solely involving
Know-How and not involving Licensed Patents shall be payable for a period of ten
(10) years after the first sale in each such country in the Territory of
Licensed Products. Upon the expiration of the royalty obligations set forth in
subsection (a) above with respect to any Know-How in any country in the
Territory, the licenses granted under Section 2. 1 (b) of this Agreement with
respect to such Know-How in such country in the Territory shall become fully
paid licenses. ESPERION may, upon such expiration, elect to continue in effect
the exclusive nature of the license of any Know-How in any country in the
Territory by continuing to pay to INEX fifty percent (50%) of the earned royalty
specified on Schedule A hereto. Such exclusive license shall remain in effect so
long as ESPERION pays such royalty; if and when such royalty payments are
terminated, the license shall become a fully paid, non-exclusive license with
respect to such Know-How in such country in the Territory. All royalty
obligations under this paragraph 4. 1 (b) shall cease should information cease
to be Know-How under the circumstances provided in Section 1.10.

                (c) For purposes of calculating royalties, in the event that a
Licensed Product which is approved for commercial sale by an applicable
regulatory authority includes both component(s) covered by a Valid Claim of a
Licensed Patent (a "Patented Component") and a component which is diagnostically
useable or therapeutically active alone or in a combination which does not
require the Patented Component, and such component is not covered by a Valid
Claim of a Licensed Patent (an "Unpatented Component"), then Net Annual Sales of
the Combination Product shall be calculated using one of the following methods:

                        (i)  By multiplying the Net Annual Sales of the
                             Combination Product during the applicable royalty
                             accounting period ("accounting period") by a
                             fraction, the numerator of which is the aggregate
                             gross selling price of the Patented Component(s)
                             contained in the Combination Product if sold

                                       10
<PAGE>

                             separately, and the denominator of which is the sum
                             of the gross selling price of both the Patented
                             Component(s) and the Unpatented Component(s)
                             contained in the Combination Product if sold
                             separately; or

                        (ii) In the event that no such separate sales are made
                             of the Patented Component(s) or the Unpatented
                             Component(s) during the applicable accounting
                             period, or in the event that either the Patented
                             Component(s) or the Unpatented Component(s) have
                             not been sold separately for at least one (1) year,
                             Net Annual Sales for purposes of determining
                             royalties payable hereunder shall be calculated by
                             multiplying the Net Sales of the Combination
                             Product by a fraction, the numerator of which is
                             the fully allocated production cost of the Patented
                             Component(s) and the denominator of which is the
                             sum of the fully allocated production costs of the
                             Patented Component(s) and the Unpatented
                             Component(s) contained in the Combination Product;
                             provided, however, that Net Annual Sales for
                             purposes of determining such royalties shall not be
                             less than fifty percent (50%) of the Net Annual
                             Sales of the Combination Product for the accounting
                             period, The fully allocated production costs shall
                             be determined by using ESPERION's accounting
                             procedures, which procedures must conform to
                             generally accepted accounting procedures (GAAP).

        4.2 Creditability of Milestone Payments. [**] of each of the fourth and
            -----------------------------------
fifth milestone payments will be creditable towards royalties owed to INEX,
except that in a given year, INEX's royalties will not be reduced below fifty
per cent (50%) of royalties owed in that year. Remaining credits will be carried
forward until exhausted.

        4.3 Third Party Royalties. For any Licensed Product which is not a
            ---------------------
Combination Product or for any Patented Component of a Combination Product, if
ESPERION, its Affiliates or Distributors, in order to operate under or exploit
the licenses granted under Article II of this Agreement in any country in the
Territory, must pay royalties to one or more third parties to obtain a license
or similar right in the absence of which the Licensed Products could not legally
be made, used, imported or sold in any country in the Territory, and such
royalties are, in fact, paid ESPERION, may deduct from royalties thereafter
payable to INEX on Net Annual Sales in such country in the Territory an amount
equal to up to fifty percent (50%) of such third party royalty payments,
provided that the total royalties otherwise due to INEX on Net Annual Sales in
such country in the Territory in any calendar year shall not be reduced by more
than fifty percent (50%) as a result of such deduction.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

                                       11
<PAGE>

        4.3.1 In this Section 4.3.1., "Unlicensed Competitive Product" means any
product which is commercially competitive with a Licensed Product, and which is
reasonably construed as infringing a Licensed Patent. In the event that an
Unlicensed Competitive Product is reducing the market share of any Licensed
Product, INEX and ESPERION agree to enter good faith negotiations for a
reduction in royalties payable on Net Annual Sales, such reduction in royalties
to be not more that 50% of the royalties otherwise payable, if such reduction is
required for ESPERION to make a Licensed Product competitive in the marketplace,
provided that any such reduction shall be effective no earlier than twelve (12)
months after the first commercial sale of the Unlicensed Competitive Product.

        4.4 Reports and Payment. ESPERION shall deliver to INEX within thirty
            -------------------
(30) days after the end of each calendar quarter a written report showing its
computation of royalties due under this Agreement upon Net Annual Sales by
ESPERION and its Affiliates and upon Sublicensing Royalties received from
Sublicensees, during such calendar quarter. All Net Annual Sales and
Sublicensing Royalties shall be segmented in each such report according to sales
by ESPERION, each Affiliate and each Sublicensee, as well as on a country-by-
country basis, including the rates of exchange used to convert such royalties to
United States dollars from the currency in which such sales were made. For the
purposes hereof, the rates of exchange to be used for converting royalties
hereunder to United States dollars shall be those in effect for the purchase of
dollars at CitiBank, New York, New York, on the last business day of the quarter
with respect to which the payment is due. ESPERION, simultaneously with the
delivery of each such report, shall tender payment in United States dollars of
all royalties shown to be due thereon.

        4.5 Foreign Royalties. Where royalties are due INEX hereunder for sales
            -----------------
of Licensed Products in a country in the Territory where, by reason of currency
regulations or taxes of any kind, it is impossible or illegal for ESPERION, any
Affiliate or Sublicensee to transfer royalty payments to INEX for Net Annual
Sales in that country in the Territory, such royalties shall be deposited in
whatever currency is allowable by the person or entity not able to make the
transfer for the benefit or credit of INEX in an accredited bank in that country
in the Territory that is reasonably acceptable to INEX.

        4.6 Records. ESPERION shall keep, and shall require all Affiliates and
            -------
Sublicensees to keep, full, true and accurate books of accounts and other
records containing all information and data which may be necessary to ascertain
and verify the royalties payable hereunder for a period of five (5) years after
the date such royalties became payable. After the first commercial sale of
Licensed Products and for a period of one (1) year following termination of this
Agreement, INEX shall have the right from time to time (not to exceed twice
during each calendar year) to have an independent firm of accountants inspect
such books, records and supporting data. Such independent firm of accountants
shall perform these audits at INEX's expense upon reasonable prior notice and
during ESPERION's regular business hours, and shall agree as a condition to such
audit to maintain the confidentiality of all information of ESPERION disclosed
or observed in connection with such audit and to disclose to INEX only whether

                                       12
<PAGE>

ESPERION has complied with its obligations under this Agreement.  If the result
of such audit demonstrates an underpayment to INEX of 5% or more, ESPERION shall
pay for the reasonable costs of such audit.

                                  ARTICLE V.

                        DUE DILIGENCE AND ANNUAL REPORTS

        5.1 Due Diligence.  ESPERION shall use commercially reasonable
            -------------
efforts in such portions of the Territory as is commercially reasonable but at a
minimum in the United States, and three countries of the European Community to:

                (a)  conduct all necessary and appropriate preclinical and
clinical trials and control the manner and extent of such trials in order to
file IND's and NDA's which it believes will be sufficient to obtain approval to
sell Licensed Products;

                (b)  prepare, file and diligently prosecute all governmental
applications necessary to obtain approvals to sell Licensed Products; and

                (c)  diligently market Licensed Products.

        5.2 Annual Reports.  ESPERION shall make annual reports, due on each
            --------------
anniversary of this Agreement, to INEX setting forth in general terms,
sufficient for evaluation by INEX of the diligence obligations contained herein,
the efforts it made to develop Licensed Products during the previous year,
including pre-clinical and clinical efforts and all submissions to regulatory
bodies, and the efforts it intends to make in the upcoming year on these
matters.

                                  ARTICLE VI.

                         REPRESENTATIONS AND WARRANTIES

        6.1 By ESPERION.  ESPERION hereby represents and warrants to INEX
            -----------
that (a) ESPERION has full legal right, power and authority to execute, deliver
and perform its obligations under this Agreement, (b) the execution, delivery
and performance by ESPERION of this Agreement do not contravene or constitute a
default under any provision of applicable law or its articles or by-laws (or
equivalent documents) or of any agreement, judgment, injunction, order, decree
or other instrument binding upon ESPERION, (c) all licenses, consents,
authorizations and approvals, if any, required for the execution and delivery by
ESPERION of this Agreement have been obtained and are in full force and effect
and all conditions thereof have been complied with, and no other action by or
with respect to, or filing with, any governmental authority or any other person
or entity is required in connection with the execution, delivery and performance
by ESPERION of this Agreement, and (d) this Agreement constitutes a valid and
binding agreement of ESPERION, enforceable against ESPERION in accordance with
its terms,

                                       13
<PAGE>

except as such enforceability may be limited by bankruptcy, insolvency,
moratorium or creditors' rights generally.

        6.2 By INEX.  INEX hereby represents and warrants to ESPERION that
            -------
(a) INEX has full legal right, power and authority to execute, deliver and
perform its obligations under this Agreement, (b) the execution, delivery and
performance by INEX of this Agreement do not contravene or constitute a default
under any provision of applicable law or of any agreement, judgment, injunction,
order, decree or other instrument binding upon INEX or otherwise relating to the
Licensed Patents or the Know-How, (c) all licenses, consents, authorizations and
approvals, if any, required for the execution, delivery and performance by INEX
of this Agreement have been obtained and are in full force and effect and all
conditions thereof have been complied with, and no other action by or with
respect to, or filing with, any governmental authority or any other person or
entity is required in connection with the execution, delivery and performance by
FNEX of this Agreement as of the date of this Agreement, (d) INEX is the
exclusive owner of all legal and beneficial right, title and interest in and to
the Braun Patent; (e) INEX is the sole and exclusive owner of the Know-How, free
and clear of any lien, claim or encumbrance or rights of any other person or
entity, except with respect to such Know-How of which FNEX is the sole and
exclusive licensee pursuant to the UBC License Agreement, (f) INEX is the sole
and exclusive licensee of Hope/Rodrigueza other than in favor of UBC pursuant to
the UBC License Agreement, (g) the UBC License Agreement and Research Agreement
effective February 1, 1993 are the only agreements between INEX and UBC or
otherwise relating to Hope/Rodrigueza, (h) the UBC License Agreement is in full
force and effect and has not been breached by INEX or, to the best knowledge of
INEX, UBC, and the representations and warranties made by FNEX and, to the best
of INEX's knowledge, UBC in the UBC License Agreement are sufficient to permit
the granting by FNEX of the license in Article II hereof on the date hereof, (i)
to the best knowledge of INEX, the practice of the Licensed Patents and/or the
Know-How, as embodied in the methods and compositions of the Hope/Rodrigueza and
Braun patents, and the development, manufacture, use, importation, offer for
sale, sale or commercialization of any method or composition described therein
can be enjoyed without infringing or violating any patent right of any person or
entity except that INEX provides no opinion, legal or otherwise, with respect to
certain patents set forth on Schedule B and 0) this Agreement constitutes a
valid and binding agreement of INEX, enforceable against it in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or creditors' rights generally.

        6.3 Survival of Representations and Warranties. The representations and
            ------------------------------------------
warranties contained herein shall survive the execution, delivery and
performance of this Agreement by the parties, notwithstanding any investigation
at any time made by or on behalf of any Party or Parties, subject to any
necessary changes which do not affect the employment by the Parties of the
rights granted in this Agreement.

                                       14
<PAGE>

                                 ARTICLE VII.

                FUTURE AGREEMENTS: INTELLECTUAL PROPERTY RIGHTS

        7.1 Future Agreements.  While not being bound to reach any further
            -----------------
agreement, the Parties acknowledge that development and commercial supply
agreements may arise between the Parties in the future. It is the non-binding
proposal of the Parties that ESPERION and INEX will negotiate contracts for the
supply of materials, as well as services, which would support pre-clinical
development, clinical development, and regulatory submissions. The contracts
will be negotiated in good faith, but costs of such materials and services will
not exceed INEX's reasonable fully burdened costs plus twenty percent (20%)
profit. INEX will have the right of first offer for commercial supply of bulk
drug product, with terms to be negotiated in good faith; however such terms will
not exceed INEX's reasonable fully burdened costs plus twenty percent (20%)
profit.

        7.2 Prosecution and Maintenance of Licensed Patents.
            -----------------------------------------------
                (a)  ESPERION shall be responsible for and pay all future costs
of prosecuting and maintaining the Hope/Rodrigueza and Braun patents. ESPERION
shall advise INEX in writing of all significant actions which it undertakes
concerning the prosecution and maintenance of Hope/Rodrigueza and Braun, and
shall, except to the extent protected by attorney-client privilege between
ESPERION and its attorneys, provide copies of the substantive correspondence and
documents which it sends or receives in connection therewith to INEX and, in the
case of Hope/Rodrigueza, also to UBC. ESPERION shall diligently prosecute and
maintain the Hope/Rodrigueza and Braun patents, and ESPERION shall not
irrevocably alter the scope of patent coverage of such patents without prior
review by INEX and consideration of the opinion of INEX's patent advisor(s).
Should ESPERION seek to discontinue or not pursue Hope/Rodrigueza and/or Braun
in any specific jurisdiction, then ESPERION shall provide INEX, and in the case
of Hope/Rodrigueza, also UBC, with notice of its decision to discontinue or not
to pursue such patent in sufficient time, not to be less than forty-five (45)
days, whereupon INEX shall become entitled to continue or pursue such patent in
such jurisdiction at its own expense.

Failure of ESPERION to maintain a granted or issued patent in a jurisdiction
does not relieve ESPERION of the increased earned royalty obligation for that
jurisdiction set out in Schedule A.
                        ----------
                (b)  INEX and ESPERION shall each make available to the other
Party or such other Party's authorized attorneys, agents or representatives,
such of its employees whom the other Party in its reasonable judgment deems
necessary in order to assist it in obtaining patent protection of the
Hope/Rodrigueza and/or Braun patents. INEX and ESPERION shall each execute all
legal documents reasonably necessary to support the filing, maintenance and
prosecution of said patent applications. ESPERION shall, at the request of INEX
and, in the case of Hope/Rodrigueza, UBC, enter into such

                                       15
<PAGE>

further agreements and execute any and all documents as may reasonably be
required to ensure that ownership of the Licensed Patents remains with the legal
owner.

        7.3 Improvements and Future INEX Technology. INEX shall have the
right and responsibility to decide whether or not to seek or continue to seek or
maintain patent protection on any Improvement or Future INEX Technology in any
country, and shall have the right to file for, procure and maintain patents on
any Improvement or Future INEX Technology in any country. Obligations of
ESPERION regarding patent prosecution or costs for Improvements or Future INEX
Technology, if any, shall be determined by written agreement of the Parties.

        7.4 Infringement. This Section 7.4 is subject to the rights of UBC in
Section 11.1(a).

                (a) Each Party shall promptly report in writing to the other
Party during the term of this Agreement any (i) known infringement or suspected
infringement of any of the Licensed Patents in the Territory, or (ii)
unauthorized use or misappropriation of Know-How or Confidential Information by
a third party in the Territory of which it becomes aware, and shall provide the
other Party with all available evidence supporting said infringement, suspected
infringement or unauthorized use or misappropriation.

                (b)  Except as provided in subsection (c) below, ESPERION shall
have, upon receiving the prior written consent of INEX, not to be unreasonably
withheld, the right anywhere in the Territory to defend an allegation of
invalidity of one or more Licensed Patents, and to initiate an infringement or
other appropriate suit against any third party who at any time has infringed, or
is suspected of infringing, or is anticipated to infringe any of the Licensed
Patents or of using without proper authorization all or any portion of the
Confidential Information and/or Know-How. Provided that it has first granted its
prior written consent, not to be unreasonably withheld, INEX agrees to co-
operate to the extent of executing all necessary documents and to vest in
ESPERION the right to institute any such suits, in the name of ESPERION or INEX
or both, so long as all the direct or indirect costs and expenses of bringing
and conducting any such litigation or settlement shall be borne by ESPERION and
in such event all recoveries shall inure to ESPERION. For purposes of this
Agreement, if ESPERION requests in writing INEX's prior written consent to any
matter, as required hereby, and INEX does not either grant or deny such consent
within ten (10) days of receiving such request from ESPERION, INEX shall be
deemed to have granted the requested consent. In the event of any litigation:

       (b.i)   Each Party shall keep the other fully informed of the actions
and positions taken or proposed to be taken by such Party and actions and
positions taken by all other parties to such litigation;

       (b.ii)   No decision or action concerning or governing any final
disposition of the litigation shall be taken without five (5) days prior
notification thereof to INEX;

                                       16
<PAGE>

       (b.iii)   INEX may elect to participate formally in the litigation to
the extent that the court may permit, but any additional expenses generated by
such formal participation shall be paid by INEX (subject to the possibility of
recovery of some or all of such additional expenses from such other parties to
the litigation);

       (b.iv)   If a Party to a litigation is willing to make or accept an
offer of settlement and the other is not, then the unwilling party shall conduct
all further proceedings at its own expense, and shall be responsible to account
to the willing party for any deficiency in litigated or settled result from that
which it would have been entitled to in the offer, but shall be entitled to
retain unto itself the benefit of any litigated or settled result entailing a
greater payment of costs, damages, accounting of profits and settlement costs
than that provided in such offer;

                (c)  In the event that ESPERION elects not to initiate an
infringement or other appropriate suit pursuant to subsection (b) above,
ESPERION shall promptly advise INEX of its intent not to initiate such suit, and
INEX shall have the right, in INEX's sole discretion, and at the expense of
INEX, of initiating an infringement suit, a defense of patent validity, or other
appropriate suit against any third party who at any time has infringed, or is
suspected of infringing, or is anticipated to infringe any of the Licensed
Patents or of using without proper authorization all or any portion of the
Confidential Information and Know-How. At INEX's request, ESPERION shall offer
reasonable assistance to INEX in connection with such litigation at no charge to
INEX except for reimbursement of reasonable out-of-pocket expenses, including
salaries of ESPERION personnel, incurred in rendering such assistance.

        7.5 Claimed Infringement.  In the event that a third party at any
            --------------------
time provides written notice of a claim to, or brings an action, suit or
proceeding against, either Party or any of their respective Affiliates or
Sublicensees, claiming infringement of such third party's patent rights or
unauthorized use or misappropriation of its know-how, based upon an assertion or
claim arising out of the development, use, manufacture, distribution,
importation or sale of Licensed Products, such Party shall promptly notify the
other Party, and if Hope/Rodrigueza is involved, UBC, of the claim or the
commencement of such action, suit or proceeding, enclosing a copy of the claim
and/or all papers served. INEX agrees to make available to ESPERION its advice
and counsel regarding the technical merits of any such claim at no cost to
ESPERION. THE ENTIRE RESPONSIBILITY OF INEX IN THE CASE OF ANY CLAIMED
INFRINGEMENT OR VIOLATION OF ANY THIRD PARTY'S RIGHTS OR UNAUTHORIZED USE OR
MISAPPROPRIATION OF ANY THIRD PARTY'S KNOW-HOW IS SET OUT IN THIS AGREEMENT.

        7.6 Williams Claim.
            --------------

            In this Agreement, "Williams Claim" means any and all legal claims
against INEX, INEX' Affiliates and/or INEX Indemnitees (as defined in Section
10.1) based on the allegation that INEX misappropriated confidential information
and inventions which form the basis of Hope/Rodrigueza including, without
limitation, the [**] a copy of which has been provide to ESPERION. Except to the
extent provided in the immediately preceding sentence, the "Williams Claim"
shall not include the claim of Mr. Williams that he is a co-inventor of
Hope/Rodrigueza, of which ESPERION acknowledges it was informed by INEX prior to
the date of said letter.

        7.6.1.  INEX shall provide an adequate defense, at its own cost and
expense, to any claim related to the Williams Claim. INEX shall give five (5)
days' prior written notice to ESPERION prior to taking any material action with
respect to such defense. INEX further agrees that it shall not settle or
compromise any claim or action related in any way to the Williams Claim unless
it receives the prior written consent of ESPERION, provided, however, that INEX
shall not be required to receive such prior written consent if, and only if, (i)
the settlement or compromise of the claim or action does not reduce, diminish or
otherwise limit the license or other rights granted to ESPERION herein; and (ii)
a general release to the Williams Claim is obtained by the INEX Indemnitees and
the ESPERION Indemnitees (each as defined in Article X below).

        7.6.1.1  In the event any claim or action related in any way to the
Williams Claim is asserted against ESPERION and/or any ESPERION Indemnitees,
INEX shall be responsible for the defense thereof and shall pay all damages
awarded, all amounts paid in settlement or compromise thereof, and all legal
costs and other losses, as provided in Section 10.2 of this Agreement. The
obligations of INEX under this Section 7.6.1.1 shall not be subject to the
limitation on INEX's liability set forth in Section 10.6 of this Agreement.

        7.6.2  If INEX settles or compromises any claim or action related in any
way to the Williams Claim (which settlement or compromise shall be subject to
the prior written consent of ESPERION, except as provided in Section 7.6.1), and
the effect of such settlement or compromise is to reduce, diminish or otherwise
limit the license or other rights granted to ESPERION herein, this Agreement
shall be deemed amended at the time of such settlement or compromise to provide
that (i) a further [**] of all subsequent milestone payment obligations of
ESPERION pursuant to Article III hereof shall also become creditable as provided
in Section 4.2, and where payments under Article III hereof shall also become
creditable as provided in Section 4.2, and where payments under Article III have
been previously made, [**] of such payments shall also become creditable as
provided in Section 4.2; and (ii) in each country where a competing product
licensed under Hope/Rodrigueza or Braun is introduced, all royalty obligations
of ESPERION to INEX hereunder resulting from sales of Licensed Products such
countries shall be reduced by [**].

        7.6.3  INEX shall provide ESPERION with reasonable assistance in the
event that ESPERION seeks to rely on the facts relating to the Williams Claim in
a claim or action against Mr. Williams, his heirs and assigns, or any
organization or corporation representing the rights of Mr. Williams or any
Affiliate of Mr. Williams (collectively, the "Williams Parties"). If under
applicable law INEX is a necessary party to any claim or action brought by or
against ESPERION involving any of the Williams Parties, at ESPERION's request
INEX shall become a nominal party to such claim or action at ESPERION's expense.
ESPERION shall indemnity INEX for Losses incurred by INEX in connection with
such claim or action, to the extent set forth in Section 10.1 below. Where INEX
is not a necessary party to such claim or action, INEX' consent to joining such
action may be withheld by INEX in its sole discretion.

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

                                       17
<PAGE>

                                 ARTICLE VIII.

                            CONFIDENTIAL INFORMATION

        8.1    Treatment of Confidential Information.  Each Party hereto shall
               -------------------------------------
maintain the Confidential Information of the other Party in confidence, and
shall not disclose, divulge or otherwise communicate such Confidential
Information to others, or use it for any purpose, except pursuant to, and in
order to carry out, the terms and objectives of this Agreement, and hereby
agrees to exercise every reasonable precaution to prevent and restrain the
unauthorized disclosure of such Confidential Information by any of its
directors, officers, employees, consultants, subcontractors, sublicensees or
agents.

        8.2 Release from Restrictions.  The provisions of Section 8.1 shall
            -------------------------
not apply to any Confidential Information disclosed hereunder which:

                (a) was known or used by the receiving Party or its Affiliates
prior to its date of disclosure to the receiving Party, as evidenced by the
prior written records of the receiving Party or its Affiliates; or

                (b) either before or after the date of the disclosure to the
receiving Party is lawfully disclosed to the receiving Party or its Affiliates
by an independent, unaffiliated third party rightfully in possession of the
Confidential Information; or

                (c) either before or after the date of the disclosure to the
receiving Party becomes published or generally known to the public through no
fault or omission on the part of the receiving Party or its Affiliates; or

                (d) the Party can verify by written documentation results from
research and development by the receiving Party or any of its Affiliates
independent and in advance of disclosure by the other Party thereof, or

                (e) is disclosed by the receiving party to its attorneys,
accountants or other advisors, actual or potential lenders, investors or
purchasers, each of whom shall be subject to a confidentiality restriction; or

                (f) is required to be disclosed by the receiving Party to comply
with applicable laws, to defend or prosecute litigation or to comply with
governmental regulations, provided that the receiving Party provides prior
written notice of such

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

                                       18
<PAGE>

disclosure to the other Party and takes reasonable and lawful actions to avoid
and/or minimize the degree of such disclosure.

        8.3 Publications.  The following restrictions shall apply with
            ------------
respect to the disclosure in scientific journals or publications by any Party or
any employee or consultant of any Party relating to the inventions contained in
the Licensed Patents and the Know-How:

                (a) a Party (the "publishing Party") shall provide the other
Party with an advance copy of any proposed publication which may be in draft
form) and such other Party shall have a reasonable opportunity to recommend any
changes it reasonably believes are necessary to preserve patent rights or know
how belonging in whole or in part to INEX or E8PERION, and the incorporation of
such recommended changes shall not be unreasonably refused; and

                (b) if such other Party informs the publishing Party, within
thirty (30) days of receipt of an advance copy of a proposed publication, that
such publication in its reasonable judgment could be expected to have a material
adverse effect on any patent rights or know how belonging in whole or in part to
INEX or ESPERION, the publishing Party shall, to the extent permitted by its
agreements with its employees and consultants, delay or prevent such publication
as proposed. In the case of inventions, the delay shall be sufficiently long to
permit the timely preparation and filing of a patent application(s) or
application(s) for a certificate of invention on the information involved but
not less than sixty (60) days.

                                  ARTICLE IX.

                                  TERMINATION

        9.1 Term.  This Agreement shall remain in effect for ten (IO) years
            ----
from the first commercial sale of a Licensed Product or until the last to expire
of the Licensed Patents, or until the last to expire of the licenses granted
pursuant to Article II, above, whichever is longer, on a country-by-country
basis.

        9.2 Voluntary Termination.  ESPERION may terminate the licenses
            ---------------------
under this Agreement at any time by providing ninety (90) days prior written
notice to INEX.

        9.3 Termination for Breach.  Each Party shall be entitled to
            ----------------------
terminate this Agreement and the licenses granted hereunder to the other Party
by written notice to the other Party in the event that the other Party shall be
in default of any of its obligations hereunder, and shall fail to remedy any
such default within sixty (60) days after notice thereof by the non-breaching
Party. Any such notice shall specifically state that the non-breaching Party
intends to terminate this Agreement in the event that the breaching Party shall
fail to remedy the default. Any such notice shall set out expressly the actions

                                       19
<PAGE>

required of the breaching Party to remedy the default. Where the alleged default
identified is of an obligation to maintain insurance (as in Sections 10.4 or
11.1(b)) or an obligation of indemnity in Article X, the termination date shall
be the effective date of the written notice provided (which effective date shall
take into account the sixty (60) day cure period described above). If the
alleged default relates to an obligation other than in Section 10.4, Section
11.1(b) or Article X, and if the existence of said breach is in dispute, the
license and all rights granted to ESPERION pursuant to this Agreement and all
obligations and commitments of ESPERION to INEX and/or to UBC shall continue
until finallydeterminedbyarbitrationorotherjudicialprocessasprovidedherein. In
the event a breach is finally determined, the remedy for such breach may take
effect from the date of first occurrence of such breach.

        9.4 Termination upon Bankruptcy.  This Agreement shall automatically
            ---------------------------
and immediately terminate without notice to ESPERION upon (a) the bankruptcy,
insolvency, liquidation or dissolution of ESPERION; (b) the filing of any
voluntary petition for bankruptcy, dissolution, liquidation or winding-up of the
affairs of ESPERION; or (c) the filing of any involuntary petition for
bankruptcy, dissolution, liquidation or winding-up of the affairs of ESPERION
which is not dismissed within one hundred twenty (I 20) days of the date on
which it is filed or commenced.

        9.5 Continuing Obligations.  Upon any termination of this Agreement
            ----------------------
to this Article IX, neither Party shall be relieved of any obligations incurred
prior to such termination.

        9.6 Disposition of Licensed Products.  Upon any termination of this
            --------------------------------
Agreement pursuant to Sections 9.2, 9.3 or 9.4 hereof, ESPERION shall within
thirty (30) days of the effective date of such termination notify INEX in
writing of the amount of Licensed Products which ESPERION, its Affiliates and
Sublicensees then have completed on hand, the sale of which would, but for the
termination, be subject to royalty, and ESPERION, its Affiliates and
Sublicensees shall thereupon be permitted during the one (1) year following such
termination to sell that amount of Licensed Products, provided that ESPERION
shall pay the aggregate royalty thereon at the conclusion of the earlier of the
last such sale or such one (1) year period. Except as provided in this
Agreement, all sublicenses granted by ESPERION shall forthwith terminate upon
the termination of this Agreement.

        9.7 Survival of Obligations; Return of Confidential Information.
            -----------------------------------------------------------
                (a)  Notwithstanding any termination of this Agreement, the
obligations of the Parties under Section 7.5 and Article VIII and Article X
hereof, as well as under any other provisions which by their nature are intended
to survive any such termination, shall survive and continue to be enforceable.
Upon any termination of this Agreement pursuant to Section 9.2, 9.3 or 9.4
hereof, each Party shall promptly return to the other Party all written
Confidential Information, and all copies thereof (except for one archival copy
to be retained by a person designated by such Party (who shall not make

                                       20
<PAGE>

such Confidential Information generally available to employees or other
representatives of such Party) for the purpose of confirming which information
to hold in confidence hereunder), of the other Party which is not covered by a
license surviving such termination;

                (b) Upon termination, ESPERION shall promptly deliver to INEX,
     at no cost to INEX, all animal and human data and such other information,
     materials (including biological materials) and documents in ESPERION's
     possession that INEX may require in order to obtain approval of applicable
     government regulatory agencies to market Licensed Products. Upon
     termination, ESPERION shall also promptly deliver to INEX, at no cost to
     INEX, all Licensed Patents, patent prosecution records and, Know-How in its
     possession or control, and shall destroy any copies of such materials
     (except for one archival copy to be retained by a person designated by such
     Party (who shall not make such Confidential Information generally available
     to employees or other representatives of such Party) for the purpose of
     confirming which information to hold in confidence hereunder); and

                (c) Termination shall give effect to a non-exclusive, royalty-
     free license from ESPERION to INEX, to make, have made, use or sell, any
     and all Enhancements to Licensed Products in the Territory.

        9.8 Arbitration. In the event of any unresolvable dispute, difference,
            -----------
or question arising between the Parties in connection with this Agreement or any
clause or the construction thereof, or the rights, duties or liabilities of
either Party, or the scope or validity of any patent licensed hereunder, the
matter shall be submitted for arbitration in accordance with the rules of the
American Arbitration Association. Arbitration shall take place in continental
North America or as otherwise agreed by the Parties. A single arbitrator shall
be appointed by agreement of the Parties to resolve all such disputes,
differences or questions. The arbitrator shall be guided by the contents of this
Agreement in arriving at a decision to resolve the dispute, but may rely on
extrinsic evidence where appropriate and/or necessary. The Parties shall share
the cost of the arbitration unless, in the arbitrator's opinion, the position
advanced by one of the Parties, or the nature or manner of presenting it, is
such that it would be unfair to so apportion such expenses, in which case the
arbitrator may apportion such expenses differently. In cases where validity or
scope of a patent is in issue, either party shall have the right to elect to
have the arbitration conducted by three arbitrators, each party selecting one
and those arbitrators selecting the third.

                                  ARTICLE X.

                   INDEMNIFICATION AND LIABILITY LIMITATIONS

        10.1 Indemnification by ESPERION. ESPERION hereby agrees that it shall
             ---------------------------
be responsible for, indemnify, hold harmless and defend INEX and its Affiliates,
and their respective Board of Governors, directors, officers, employees,
faculty, students, invitees, managing members, shareholders, partners,
attorneys, accountants, consultants and

                                       21
<PAGE>

agents, and their respective heirs, successors and assigns (collectively, the
"INEX Indemnities"), and UBC and its Affiliates and their respective directors,
officers, Board of Governors, employees, faculty, students, invitees, managing
members, shareholders, partners, attorneys, accountants, consultants and agents
and their respective heirs, successors and assigns (collectively, the "UBC
Indemnities") from and against any and all claims, demands, losses, liabilities,
damages, costs and expenses (including the cost of settlement, reasonable legal
and accounting fees and any other expenses for investigating or defending any
actions or threatened actions) (collectively, "Losses") suffered or incurred by
any INEX Indefinite or UBC Indemnity arising out of, relating to, resulting from
or in connection with (a) any third party claims arising out of or relating to
the breach of any representation or warranty made by ESPERION herein, (b) any
third party claims arising out of or relating to the default by ESPERION in the
performance or observance of any of its obligations to be performed or observed
hereunder, (c) any third party claims arising out of or relating to any injury
or death to any person or damage to any property caused by any Licensed Product,
whether claimed by reason of breach of warranty, negligence, product defect or
otherwise, and regardless of the form in which any such claim is made except to
the extent that such injury, death or damage is caused by the negligence or
willful misconduct of any INEX Indemnity or UBC Indemnity, and (d) any claim or
action which INEX is made a party at the request of ESPERION pursuant to Section
7.6.3 above. The foregoing shall not apply to the extent that such Losses are
due to the negligence or willful misconduct of any of the INEX Indemnities or
the gross negligence or willful misconduct of any of the UBC Indemnities or are
on account of or arising out of the Williams Claim.

        10.2 Indemnification by INEX. INEX hereby agrees that it shall be
             -----------------------
responsible for, indemnify, hold harmless and defend ESPERION and ESPERION's
Affiliates, and their respective Board of Governors, directors, officers,
employees, faculty, students, invitees, managing members, shareholders,
partners, attorneys, accountants, consultants and agents and their respective
heirs, successors and assigns (collectively, the "ESPERION Indemnities"), from
and against any and all Losses suffered or incurred by any ESPERION Indemnity
arising out of, relating to, resulting from or in connection with (a) any third
party claims arising out of or relating to the breach of any representation or
warranty made by INEX herein, and (b) any third party claims arising out of or
relating to the default by INEX in the performance or observance of any of its
obligations to be performed or observed hereunder, and (c) losses relating to
the Williams Claim that are (i) damages, costs, and expenses awarded against any
ESPERION Indemnity relating to the Williams Claim, (ii) any amounts payable in
connection with the settlement or compromise of any claims relating to the
Williams Claim, and (iii) any legal expenses, such as but not limited to,
reasonable legal fees, and any other expenses for investigating or defending any
actions or threatened actions. Reasonable legal fees, in this section, means
legal fees paid to attorneys appointed by FNEX to defend ESPERION against the
Williams Claim, or should ESPERION select its own attorneys to make such
defense, reasonable legal fees that explicitly distinguish legal expenses
relating to the Williams Claim from all other business between ESPERION and its
own attorneys. The foregoing shall not apply to the extent that such Losses are
due to the negligence or willful misconduct of any of ESPERION Indemnities.

                                       22
<PAGE>

        10.3 Notice of Claims. In the event that a claim is made pursuant to
             ----------------
Section IO. I or 10.2 above against any person or entity which seeks
indemnification hereunder (the "Indemnity"), the Ingenuity agrees to promptly
notify the indemnifying Party (the "Indemnity") of such claim or action and, in
the case of any claim by a third Person against the Indemnity, the Indemnity
may, at its option, elect to assume control of the defense of such claim or
action; provided, however, that (a) the Indemnity shall be entitled to
participate therein (through counsel of its own choosing) at the Indemnity's
sole cost and expense, and (b) the Indemnitor shall not settle or compromise any
such claim or action without the prior written consent of the Indemnity, unless
such settlement or compromise includes a general release of the Indemnity and
all of the other INEX Indemnities or ESPERION Indemnities, as the case may be,
from any and all liability with respect thereto.

        10.4  Liability.  No Party shall be liable for special, incidental or
              ---------
consequential damages or for loss of profit or lost revenue, even if such Party
has been advised of the possibility of such damage.

        10.5 Insurance. If available on commercially reasonable terms (as
             ---------
determined in good faith by the Board of Directors of ESPERION), ESPERION shall
obtain product liability insurance in an amount not less than US Five Million
Dollars (US$5,000,000) per occurrence, and US Five Million Dollars
(US$5,000,000) annual aggregate, naming INEX and UBC as a named-insured. This
provision shall take effect at the time a Licensed Product is being commercially
sold (other than for the purpose of obtaining regulatory approval) by ESPERION,
an Affiliate, Sublicensee or Distributor.

        10.6  Limitation on Liability.  INEX's liability for damages under this
              -----------------------
Agreement (regardless of form of action, whether in contract, tort or warranty)
shall not exceed the aggregate milestone payments and royalties paid to INEX.

        10.7 Actions Between the Parties. For the avoidance of doubt, in
             ---------------------------
connection with actions brought by one party hereto against the other (whether
for breach of any provisions hereof, any representation or warranty made herein
or otherwise), each party expressly reserves all of its rights and remedies
under applicable law, including, without limitation, the right to sue for breach
of contract.

                                       23
<PAGE>

                                  ARTICLE XI.

                                UBC PROVISIONS

        11.1  Limitations to License.  ESPERION and INEX agree to the following
              ----------------------
additional limitations, terms and conditions to the licenses granted herein, in
relation to Hope/Rodrigueza, expressly for the benefit of UBC:

                (a) In the event a suit under Section 7.4 involves
     Hope/Rodrigueza, the rights of INEX shall be transferred to UBC.

                (b) One month prior to the first sale of a Licensed Product,
     ESPERION will give notice to UBC of the terms and amount of the public
     liability, product liability and errors and omissions insurance which it
     has placed in respect of the same, which in no case shall be less than the
     insurance which a reasonable and prudent businessman carrying on a similar
     line of business would acquire. This insurance shall be placed with a
     reputable and financially secure insurance carrier, and where available on
     commercially reasonable terms, shall include UBC, its Board of Governors,
     faculty, officers, employees, students and agents as additional insureds,
     and shall provide primary coverage with respect to the activities
     contemplated by this Agreement. Such policy shall include severability of
     interest and cross-liability clauses and shall provide that the policy
     shall not be canceled or materially altered except upon at least thirty
     (30) days written notice to UBC. UBC shall have the right to propose
     reasonable amendments to the terms or the amount of coverage contained in
     the policy. Failing the parties agreeing on the appropriate terms or the
     amount of coverage, then the matter shall be determined by arbitration as
     provided for herein. ESPERION shall provide UBC with certificates of
     insurance evidencing such coverage seven (7) days before commencement of
     sales of any Licensed Product and ESPERION covenants not to sell any
     Licensed Product before such certificate is provided and approved by UBC.
     ESPERION shall require that each Sublicensee under this Agreement shall
     procure and maintain, during the term of the sublicense, public liability,
     product liability and efforts and omissions insurance consistent with the
     terms of this section. ESPERION shall use commercially reasonable efforts
     to ensure that any and all such policies of insurance required pursuant to
     this clause shall contain a waiver of subrogation against UBC, its Board of
     Governors, faculty, officers, employees, students and agents.

                (c) UBC shall not be restricted from presenting at symposia,
     national or regional professional meetings, or from publishing in journals
     or other publications accounts of its research relating to Hope/Rodrigueza,
     provided, however, that ESPERION shall have the same right to review such
     publication as it has with respect to publications made by INEX pursuant to
     Section 8.3 above. For practical application of this provision, INEX agrees
     to provide to ESPERION any and all publication(s) INEX receives from UBC
     relating to the inventions contained in the Licensed Patents and the Know-
     How to ESPERION within ten (IO) business days of such receipt.

                                       24
<PAGE>

                (d) ESPERION shall not use any of the UBC's registered trade-
     marks or make reference to UBC or its name in any advertising or publicity
     whatsoever, without the prior written consent of UBC, except as required by
     law. Nothing herein shall prevent ESPERION from making or issuing factual
     statements to the public regarding its business or use of Hope/Rodrigueza.
     If ESPERION is required by law to act in contravention of this provisions,
     ESPERION shall provide UBC with sufficient advance notice in writing to
     permit UBC to bring an application or other proceeding to contest the
     requirement.

                (e) UBC's total liability, whether under the express or implied
     terms of this Agreement, in tort (including negligence), or at common law,
     for any loss or damage suffered by ESPERION, whether direct, indirect,
     special, or any other similar or like damage that may arise or does arise
     from any action by UBC, its Board of Governors, officers, employees,
     faulty, students, or agents shall be limited to the sum of Cdn$l0,000. In
     no event shall UBC be liable for consequential or incidental damages
     arising from actions related to this Agreement.

        11.2 The Parties acknowledge and confirm that in relation to
Hope/Rodrigueza:

                (a) UBC makes no representations, conditions, or warranties,
     either express or implied, with respect to Licensed Products. Without
     limiting the generality of the foregoing, UBC specifically disclaims any
     implied warranty, condition or representation that the Licensed Products

                        (i)  shall correspond with a particular description;

                        (ii)  are of merchantable quality;

                        (iii)  are fit for a particular purpose; or

                        (iv) are durable for a reasonable period of time.

UBC shall not be liable for any loss, whether direct, consequential, incidental,
or special which ESPERION suffers arising from any defect, error, fault or
failure to perform with respect to the Licensed Products, even if UBC has been
advised of the possibility of such defect, error, fault, or failure.  ESPERION
acknowledges that it has been advised by UBC to undertake its own due diligence
with respect to the Licensed Products.

                (b)  Nothing in this Agreement shall be construed as:

                                       25
<PAGE>

                        (i) a warranty or representation by UBC as to title to
     Hope/Rodrigueza or that anything made, used, sold or otherwise disposed of
     under the license granted in this Agreement is or will be free from
     infringement of patents, copyrights, trademarks, industrial design or other
     intellectual property rights,

                        (ii) an obligation by UBC to bring or prosecute or
     defend actions or suits against third parties for infringement of patents,
     copyrights, trade-marks, industrial designs or other intellectual property
     or contractual rights, or

                        (iii) the conferring by UBC of the right to use in
advertising or publicity the name of UBC or UBC Trade-marks.

                                 ARTICLE XII.

                                 MISCELLANEOUS

        12.1 Publicity. Neither Party, nor any of its Affiliates, shall
             ---------
originate any publicity, news release or other public announcement, written or
oral, relating to this Agreement or the existence of an arrangement between the
Parties, without the prior written approval of the other Party, which approval
shall not be unreasonably withheld, except as otherwise required by law.

        12.2 Non-Use of Names. Neither Party shall use the name of the other
             ----------------
Party, nor any adaptation thereof, in any advertising, promotional or sales
literature without prior written consent obtained from such other Party in each
case (which consent shall not be unreasonably withheld or delayed).

        12.3 Assignment. Except as otherwise provided in this Agreement, neither
             ----------
this Agreement nor any of the rights or obligations hereunder may be assigned by
either Party without the prior written consent of the other Party, except either
to an Affiliate or to a third-party who acquires all or substantially all of the
business of the assigning Party by merger, sale of assets or otherwise.

        12.4 Governing Law. This Agreement shall be governed by and interpreted
             -------------
in accordance with the laws of the State of Michigan, without regard to
conflicts of law principles.

        12.5 Force Majeure. In the event that either Party is prevented from
             -------------
performing or is unable to perform any of its obligations under this Agreement
due to any act of God; fire; casualty; flood; war; strike; lockout; failure of
public utilities; injunction or any act,

                                       26
<PAGE>

exercise, assertion or requirement of governmental authority; epidemic;
destruction of production facilities; riots; insurrection; inability to procure
or use materials, labor, equipment, transportation or energy; or any other cause
beyond the reasonable control of the Party invoking this Section 12.5 if such
Party shall have used its reasonable efforts to avoid such occurrence, such
Party shall give notice to the other Party in writing promptly, and thereupon
the affected Party's performance shall be excused and the time for performance
shall be extended for the period of delay or inability to perform due to such
occurrence.

        12.6 Waiver. The waiver by either Party of a breach or a default of any
             ------
provision of this Agreement by the other Party shall not be construed as a
waiver of any succeeding breach of the same or any other provision, nor shall
any delay or omission on the part of either Party to exercise or avail itself of
any right, power or privilege that it has or may have hereunder operate as a
waiver of any right, power or privilege by such Party.

        12.7 Notices. Any notice or other communication in connection with this
             -------
Agreement must be in writing and if by mail, by registered mail, return receipt
requested, and shall be effective when delivered to the addressee at the address
listed below or such other address as the addressee shall have specified in a
notice actually received by the addressor.

       If to INEX:

               Inex Pharmaceuticals Corporation
               100-8900 Glenlyon Parkway
               Burnaby, B.C.
               Canada V5J 5J8

               Telecopier No.: (604) 419-3 202
               Attention: Vice-President, Corporate Development

       If to ESPERION:

               Esperion Therapeutics, Inc.
               3621 S. State Street
               695 KMS Place
               Ann Arbor, MI 48108 USA

               Telecopier No.:
               Attention: President

       With a copy to:

               Sills Cummis Radin Tischman Epstein & Gross
               One Riverfront Plaza

                                       27
<PAGE>

               Newark, New Jersey 07102 USA
               Telecopier No.: (973) 643-6500
               Attention: Ira A.  Rosenberg, Esq.

       If to UBC:

               The Director
               University - Industry Liaison Office University of British
               Columbia
               IRC 331 - 2194 Health Sciences Mail Vancouver, B.C.
               Canada V6T I Z3
               Telephone: (604) 822-8580
               Facsimile: (604) 822-8589

        12.8 No Agency. Nothing herein shall be deemed to constitute either
             ---------
Party as the agent or representative of the other Party, or both Parties as
joint ventures or partners for any purpose. INEX shall be an independent
contractor, not an employee or partner of ESPERION, and the manner in which INEX
renders its services under this Agreement shall be within INEX's sole
discretion. Neither Party shall be responsible for the acts or omissions of the
other Party, and neither Party will have authority to speak for, represent or
obligate the other Party in any way without prior written authority from the
other Party.

        12.9 Entire Agreement. This Agreement and the Schedule hereto (which
             ----------------
Schedule is deemed to be a part of this Agreement for all purposes) contain the
full understanding of the Parties with respect to the subject matter hereof and
supersede all prior understandings and writings relating thereto. No waiver,
alteration or modification of any of the provisions hereof shall be binding
unless made in writing and signed by the Parties by their respective officers
thereunto duly authorized.

        12.10 Headings. The headings contained in this Agreement are for
              --------
convenience of reference only and shall not be considered in construing this
Agreement.

        12.11 Severability. In the event that any provision of this Agreement is
              ------------
held by a court of competent jurisdiction to be unenforceable because it is
invalid or in conflict with any law of any relevant jurisdiction, the validity
of the remaining provisions shall not be affected, and the rights and
obligations of the Parties shall be construed and enforced as if the Agreement
did not contain the particular provisions held to be unenforceable.

        12.12 Successors and Assigns. This Agreement shall be binding upon and
              ----------------------
inure to the benefit of the Parties hereto and their successors and permitted
assigns.

                                       28
<PAGE>

        12.13 Third Parties. None of the provisions of this Agreement shall be
              -------------
for the benefit of or enforceable by any third party.

        12.14 Counterparts. This Agreement may be executed in any number of
              ------------
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

        12.15 Further Assurances. Each party hereto agrees to execute,
              ------------------
acknowledge and deliver such further instruments and do all such further acts as
may be necessary or appropriate to carry out the purposes and intent of this
Agreement.

        IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed as a sealed instrument in their names by their properly and duly
authorized officers or representatives as of the date first above written.

INEX PHARMACEUTICALS CORPORATION

/s/ David J. Main
-----------------------------
David J. Main
Executive Vice President

ESPERION THERAPEUTICS, INC.

/s/ Roger  Newton
-----------------------------
Roger  Newton
President & C.E.O.

                                       29
<PAGE>

                                   SCHEDULE A

                                EARNED ROYALTIES
                                ----------------

1.  Earned Royalties Payable for each Licensed Product
    --------------------------------------------------

    (a) For Sales by ESPERION and Affiliates

          (a.1) In each jurisdiction in the Territory where a Valid Claim under
                a Licensed Patent covers a Licensed Product:

                  [**] on Net Annual Sales from [**]

                  [**] on Net Annual Sales above [**]

          (a.2) In remainder of Territory

                  [**] on Net Annual Sales from [**]

                  [**] on Net Annual Sales above [**]

          Where Licensed Products are sold both in jurisdictions (a.1) and
          (a.2), the [**] of Net Annual Sales shall be allocated to the [**]
          royalty under (a.1) and to the [**] royalty under (a.2) according to
          the relative proportions of total Net Annual Sales made in each
          portion of the territory. The amount of Net Annual Sales over [**]
          shall be allocated to the [**] royalty under (a.1) and the [**]
          royalty under (a.2) according to where such Net Annual Sales occurred.

    (b) For Sales by  Sublicensees

          [**] on Sublicensing Royalties received by ESPERION

                                        SCHEDULE  A
                                        Acknowledgment and Acceptance

                                        INEX          DJM      March 16, 1999
                                              -------------------------------
                                                    Initials   Date

                                        ESPERION      RSN      March 18, 1999
                                                 ----------------------------
                                                    Initials   Date

**Certain portions of this Exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

                                       30
<PAGE>

                                   SCHEDULE B
                                   ----------

                       INEX PROVIDES NO OPINION REGARDING
                       ----------------------------------
                             THE FOLLOWFNG PATENTS
                             ---------------------

US 5746223
WO 9713501
AU 9675956
US 5736157

                                       31

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