Document:

Agreement for Sale and Assignment of Rights

 Exhibit 10.2 
 NOTE: CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT AND
REPLACED BY “[*]”. A COMPLETE COPY OF THIS DOCUMENT INCLUDING THE CONFIDENTIAL
INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 AGREEMENT FOR SALE AND ASSIGNMENT OF RIGHTS 
 NPS PHARMACEUTICALS, INC., 
 NPS ALLELIX CORP. 
 - and - 
 DRUG ROYALTY L.P. 3

  

 Dated as of
July 16, 2007 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE 1	  	
	INTERPRETATION	  	
			
	 1.1
	  	 Definitions
	  	2
	 1.2
	  	 Interpretation
	  	7
	 1.3
	  	 Currency
	  	7
	 1.4
	  	 Distribution and License Agreement
	  	7
		
	ARTICLE 2	  	
	SALE AND ASSIGNMENT	  	
			
	 2.1
	  	 Sale and Assignment
	  	8
	 2.2
	  	 Purchase Price
	  	8
	 2.3
	  	 Payment of Purchase Price
	  	8
	 2.4
	  	 No Obligations Transferred
	  	8
		
	ARTICLE 3	  	
	THE CLOSING	  	
			
	 3.1
	  	 Closing
	  	9
	 3.2
	  	 Closing Deliveries
	  	9
	 3.3
	  	 Closing Deliveries by the Purchaser
	  	10
		
	ARTICLE 4	  	
	REPRESENTATIONS AND WARRANTIES OF THE VENDOR	  	
			
	 4.1
	  	 Organization, Standing and Power
	  	10
	 4.2
	  	 Authority, Execution and Delivery; Enforceability
	  	11
	 4.3
	  	 No Conflicts
	  	11
	 4.4
	  	 No Consent
	  	12
	 4.5
	  	 Ownership of Assigned Rights
	  	12
	 4.6
	  	 License, Supply and other Agreements
	  	12
	 4.7
	  	 Patents and Other Intellectual Property
	  	13
	 4.8
	  	 Litigation
	  	14
	 4.9
	  	 Royalties
	  	15
	 4.10
	  	 Reports
	  	15
	 4.11
	  	 Expenses
	  	15
	 4.12
	  	 Disclosure
	  	15
	 4.13
	  	 Business Activities
	  	15
		
	ARTICLE 5	  	
	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	  	
			
	 5.1
	  	 Organization
	  	16
	 5.2
	  	 Authorization
	  	16
	 5.3
	  	 No Conflicts
	  	16
	 5.4
	  	 No Consent
	  	17

  

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	 5.5
	  	 Expenses
	  	17
	 5.6
	  	 Litigation
	  	17
	 5.7
	  	 Availability of Funds
	  	17
		
	ARTICLE 6	  	
	REPRESENTATIONS AND WARRANTIES OF PARENT	  	
			
	 6.1
	  	 Organization, Standing and Power
	  	17
	 6.2
	  	 Authority, Execution and Delivery; Enforceability
	  	18
	 6.3
	  	 No Conflicts
	  	18
	 6.4
	  	 No Consent
	  	18
	 6.5
	  	 Litigation
	  	18
		
	ARTICLE 7	  	
	COVENANTS	  	
			
	 7.1
	  	 Remittance of Royalties
	  	19
	 7.2
	  	 Maintenance of License, Supply and other Agreements
	  	19
	 7.3
	  	 Reports; Other Information
	  	20
	 7.4
	  	 Patent Obligations
	  	21
	 7.5
	  	 Termination of License Agreement
	  	23
	 7.6
	  	 Confidentiality
	  	24
	 7.7
	  	 Books and Records
	  	25
	 7.8
	  	 Purchaser May Perform
	  	25
	 7.9
	  	 Grant of Security Interest
	  	25
	 7.10
	  	 Costs and Expenses
	  	26
	 7.11
	  	 No Contravention of Vendor’s Residual Rights; End of Term
	  	26
	 7.12
	  	 Certain Factual Representations of the Vendor
	  	26
	 7.13
	  	 Cure Period
	  	26
		
	ARTICLE 8	  	
	TERMINATION; SURVIVAL	  	
			
	 8.1
	  	 Termination
	  	26
	 8.2
	  	 Survival
	  	27
		
	ARTICLE 9	  	
	INDEMNITY	  	
			
	 9.1
	  	 Indemnification by the Vendor and the Parent
	  	27
	 9.2
	  	 Indemnification by the Purchaser
	  	28
	 9.3
	  	 Procedure for Claims
	  	28
	 9.4
	  	 Tax Matters
	  	29
		
	ARTICLE 10	  	
	GUARANTEE OF VENDOR'S OBLIGATIONS	  	
			
	 10.1
	  	 Guarantee
	  	29
	 10.2
	  	 Guarantee Binding
	  	29

  

 - ii - 

					
	 10.3
	  	 Costs and Expenses
	  	30
	 10.4
	  	 Subrogation
	  	30
	 10.5
	  	 Enforcement
	  	30
		
	ARTICLE 11	  	
	MISCELLANEOUS	  	
			
	 11.1
	  	 Further Assurances
	  	30
	 11.2
	  	 Specific Performance
	  	30
	 11.3
	  	 Notices
	  	31
	 11.4
	  	 Successors and Assigns
	  	32
	 11.5
	  	 No Partnership
	  	32
	 11.6
	  	 Entire Agreement
	  	33
	 11.7
	  	 True Sale Security Agreement
	  	33
	 11.8
	  	 Amendments, Supplements, Waivers
	  	34
	 11.9
	  	 Severability
	  	34
	 11.10
	  	 Governing Law
	  	34
	 11.11
	  	 Waiver of Jury Trial
	  	34
	 11.12
	  	 Time
	  	34
	 11.13
	  	 Counterparts
	  	35

  

					
	 Schedule 1.4
	  	-	  	Table of Concordance of License Agreement Provisions
			
	 Schedule 4.5
	  	-	  	Gautvik and Asahi Agreements
			
	 Schedule 4.7
	  	-	  	Patents
			
	 Schedule 4.7(a)
	  		  	Opinions of Counsel
			
	 Schedule 4.8
	  	-	  	Litigation
			
	 Schedule 7.6(d)
	  	-	  	Form of Press Release

  

 - iii - 

 THIS AGREEMENT FOR SALE AND ASSIGNMENT OF RIGHTS
is made as of the 16th day of July, 2007. 
 BETWEEN:

 NPS ALLELIX CORP., 
 a
corporation existing under the laws of the Province of Ontario 
 (collectively with its successors and permitted assigns, the
“Vendor”) 
 - and - 
 NPS PHARMACEUTICALS, INC., 
 a corporation existing under the laws of the State of Delaware 
 (collectively with its successors and permitted assigns, the “Parent”) 
 - and - 
 DRUG ROYALTY L.P. 3,

 a Cayman Islands limited partnership 
 (collectively with its successors and permitted assigns, the “Purchaser”) 
 WHEREAS
capitalized terms used and not otherwise defined in the following recitals have the meanings specified in Section 1.1; 
 AND WHEREAS
pursuant to the License Agreement, the Vendor granted to Nycomed an exclusive license under the Licensed Technology, including a right of sublicense, to market, sell, offer for sale, use, import and distribute Products and Devices within the
Original Territory; 
 AND WHEREAS the Vendor has agreed to sell, assign, transfer, convey and deliver to the Purchaser the Assigned Rights
in consideration of the payment by the Purchaser to the Vendor of the Purchase Price on the terms and subject to the conditions specified herein, and the Purchaser and the Vendor wish to enter into this Agreement to effect the sale, assignment,
transfer, conveyance and delivery to the Purchaser of the Assigned Rights on the terms and subject to the conditions specified herein; 
  

 - 1 - 

 NOW THEREFORE, in consideration of the recitals and mutual covenants specified herein, and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties agree as follows: 
 ARTICLE 1

 INTERPRETATION 
  

	1.1	Definitions 

 For the purposes of this
Agreement, subject to Section 1.4, the following terms shall have the respective meanings set out below, and grammatical variations of such terms shall have corresponding meanings: 
 “Affiliate”, in respect of any Person, means any other Person which, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with the subject Person, and a Person which has an entity which is an Affiliate under the foregoing shall also be deemed to be an Affiliate of such entity; 
 “Agreement” means this agreement of sale and assignment of rights and includes all exhibits, appendices and schedules hereto as an
integral part hereof, as any of the foregoing or this Agreement are amended, modified, supplemented, restated or replaced from time to time; 
 “Asahi” means Asahi Kasei Pharma Corporation; 
 “Asahi Agreement” means the [*]; 
 “Assigned Rights” means all of the Vendor’s right, title and interest in, to and under the following rights under the License
Agreement and the Distribution Agreement: 
  

	 	(a)	the right to receive the Purchaser Royalty Interest; 

  

	 	(b)	the right to receive Reports during the Term; and 

  

	 	(c)	the right to inspect and audit the books and records of Nycomed under Section 7.8 of the License Agreement and under Section 15.11 of the Distribution Agreement, as
applicable, in respect of Royalties received during the Term (including, for certainty, the right to select the auditor or independent certified public accountant in connection therewith) and the right to receive a copy of the auditor’s report
under Section 7.8.2 of the License Agreement and under Section 15.11.2 of the Distribution Agreement, as applicable; 

 “Bill of Sale” means the bill of sale dated the date hereof delivered by the Vendor to the Purchaser at the Closing evidencing the sale, assignment, transfer, conveyance and delivery of the Assigned Rights to the Purchaser;

 “Business Day” means any day that is not a Saturday, Sunday or other day on which banks are required or authorized by law
to be closed in Toronto, Ontario or New York, New York; 
  

 - 2 - 

 “CIS” means the Commonwealth of Independent States, comprising as of the Effective Date
of the License Agreement, Russia, Ukraine, Belarus, Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, Uzbekistan, Armenia, Azerbaijan, Georgia and Moldovia; 
 “Closing” has the meaning specified in Section 3.1; 
 “Closing
Document” means any document, instrument, undertaking or agreement required under this Agreement to be delivered by the Vendor or the Purchaser at the Closing; 
 “Damages” means any damage, loss, claim, cost, liability, demand or expense (including reasonable out-of-pocket expenses of investigation and reasonable legal fees and expenses in connection with any
action, suit or proceeding), but excluding punitive and consequential damages; 
 “Device” has the meaning specified in the
License Agreement; 
 “Distribution Agreement” means the distribution and license agreement dated April 20, 2004 between
the Vendor and Nycomed, as amended on July 1, 2004 and as further amended on June 5, 2007, in the form that is attached to the License Agreement as Exhibit 20(a); 
 “Encumbrance” means any lien, charge, security interest, mortgage, option, privilege, pledge, trust or deemed trust (whether contractual,
statutory or otherwise arising) or any other encumbrance, right or claim of any other Person of any kind whatsoever whether choate or inchoate, or any agreement (whether written or oral) to create any of the foregoing; 
 “EU” means the member states from time to time of the European Union; 
 “First Payment” has the meaning specified in Section 2.3; 
 “Gautvik Agreement” means [*]; 
 “Gautvik Patents” means those patents purchased by the Vendor pursuant to the Gautvik Agreement; 
 “Governmental Authority” means any government, regulatory or administrative agency or commission, governmental department, ministry, bureau, commission or agency, court, tribunal, governmental arbitrator or arbitration
board or other similar body, or other governmental authority or instrumentality, whether federal, provincial, state or municipal (domestic or foreign); 
 “Improvement” has the meaning specified in the License Agreement; 
 “indemnified
party” has the meaning specified in Section 9.3(a); 
  

 - 3 - 

 “Infringement Payments” means all collections, recoveries, damages, awards, settlement
payments or any other payments, compensation or consideration of any kind which are received by the Vendor and are intended as compensation for deemed Net Sales under Sections 9.7.2, 9.7.3 and 9.8.1 of the License Agreement and under Sections 8.6.2
and 8.6.3 of the Distribution Agreement, as applicable, in either case as a result of any litigation, arbitration or other legal proceeding to enforce the License Agreement or the Distribution Agreement, as applicable, the Licensed Technology or the
NPS Trademarks to the extent such litigation, arbitration or other legal proceeding results in payments arising from infringement of any of the Licensed Technology or the NPS Trademarks; 
 “Infringement Sales” means the sales or deemed sales that give rise to an Infringement Payment; 
 “Knowledge of the Vendor” means the actual knowledge of the Vendor after due inquiry; 
 “License Agreement” means the license agreement dated as of July 2, 2007 between NPS Allelix Corp. and Nycomed, including all
schedules and exhibits thereto; 
 “Licensed Technology” has the meaning specified in the License Agreement; 
 “Material Adverse Effect” means a material adverse effect on: (a) the ability of the Vendor to perform its obligations under this
Agreement, (b) the validity or enforceability of this Agreement or the rights or remedies of the Purchaser hereunder, (c) the timing, amount or duration of the Royalties, (d) the Assigned Rights, or (e) the Products; 

“Net Sales” has the meaning specified in the License Agreement and further includes Infringement Sales; 
 “New Arrangement” has the meaning specified in Section 7.5; 
 “New License Agreement” has the meaning specified in Section 7.5; 
 “New Royalty Interest” has the meaning specified in Section 7.5; 
 “NPS Know-How” has the meaning specified in the License Agreement; 
 “NPS Trademarks” has the meaning specified in the License Agreement; 
 “Nycomed” means Nycomed Danmark APS, a corporation existing under the laws of the Kingdom of Denmark and its successors or assigns;

 “Nycomed Consent” means the consent to assignment agreement dated June 8, 2007 between Nycomed and the Vendor;

  

 - 4 - 

 “Nycomed Direction” means the written direction of the Vendor to Nycomed dated as of the
date hereof to pay the Purchaser Royalty Interest to the Purchaser Account and to deliver the Reports to the Purchaser; 
 “Original
Territory” means the EU, European countries outside EU, CIS and Turkey; 
 “Parent” has the meaning specified on the
first page of this Agreement; 
 “Patent 151 License” means the [*]; 
 “Patents” means the NPS Patents (as such term is defined in the License Agreement) other than [*]; 
 “Person” means an individual, firm, corporation, company, limited liability company or other body corporate (with or without share
capital), partnership, trust, joint venture, association, executor, administrator or other legal representative, Governmental Authority or other entity or organization howsoever formed; 
 “PPSA” means the Personal Property Security Act (Ontario) and any successor statute, as in effect from time to time; 

“Product” has the meaning specified in the License Agreement; 
 “Purchase Price” has the meaning specified in Section 2.2; 
 “Purchaser” has the meaning specified on the first page of this Agreement; 
 “Purchaser Account” means the following account: 
 [*] 
 “Purchaser Royalty Interest” means, in respect of any calendar year or part thereof
occurring during the Term, the right to receive 100% of the Royalties on Net Sales; 
 “Reports” means the Royalty Reports
and the reports or notices under Sections 7.6, 7.8, 9.4, 9.6.1, 9.6.2, 9.7.1, 9.7.2, 9.7.3, 9.8.1 and 9.8.3 of the License Agreement and under Sections 8.5.1, 8.6.1, 8.6.2, 8.6.3, 8.6.4, 8.7.1, 15.9.1 and 15.11 of the Distribution Agreement, as
applicable; 
 “Royalties” means the following payments the Vendor is entitled to receive pursuant to the License Agreement
and the Distribution Agreement, as applicable: 
  

	 	(a)	all of the royalties payable by Nycomed in respect of the Net Sales of Products sold by Nycomed, its Affiliates or Sublicensees anywhere in the Original Territory (as calculated in
accordance with the License Agreement or the Distribution Agreement, as applicable) arising during the Term, including under Section 7.5 of the License Agreement and under Section 15.2 of the Distribution Agreement, as applicable;

  

 - 5 - 

	 	(b)	any payments in respect of sales that, pursuant to Section 4.6 of the License Agreement, are to be included in Net Sales for purposes of Section 7.5 of the License
Agreement, or that are deemed to be Net Sales pursuant to Section 7.3 of the License Agreement, and any gross profits recovered pursuant to Section 7.4 of the License Agreement; 

  

	 	(c)	any interest on amounts referred to in clauses (a) and (b) above payable to the Vendor pursuant to the License Agreement, including under Section 7.9 of the License
Agreement and under Section 15.9.4 of the Distribution Agreement, as applicable; and 

  

	 	(d)	any Infringement Payments, 

 but does not include any
payments that the Vendor is entitled to receive pursuant to Section 7.2 of the License Agreement or Section 15.1 of the Distribution Agreement, as applicable. In addition, notwithstanding any of the foregoing to the contrary, the aggregate
amount of the Royalties included within the Assigned Rights (and conveyed to the Purchaser hereunder) shall not exceed the amount that is 2.5 times the amount of the Purchase Price actually paid by the Purchaser to the Vendor under Section 2.3,
provided that for purposes of this calculation the First Payment shall be deemed to be $50,000,000; 
 “Royalty Reports”
means the reports Nycomed is required to furnish to the Vendor pursuant to Section 7.6 of the License Agreement and Section 15.9.1 of the Distribution Agreement, as applicable; 
 “Security Agreement” means the security agreement dated as of the date hereof between the Vendor and the Purchaser; 
 “Sublicensee” means a sublicensee of Nycomed, including any distributor or subdistributor, as contemplated in the License Agreement;

 “Supply Agreement” means the agreement dated February 24, 2005 between the Vendor and Nycomed with respect to the
supply of Products and Devices by the Vendor to Nycomed, as amended on October 13, 2005; 
 “Term” means the period from
and including April 1, 2007 up to and including the Termination Date; 
 “Termination Date” has the meaning specified in
Section 8.1; 
 “Third Party Claim” has the meaning specified in Section 9.3; 
 “Vendor” has the meaning specified on the first page of this Agreement; and 
  

 - 6 - 

 “Vendor Account” means the following account: 
 [*] 
  

	1.2	Interpretation 

 (a) When a reference is made
in this Agreement to an “Article”, “Section”, “Schedule” or “Exhibit”, such reference shall be to an Article, Section, Schedule or Exhibit to this Agreement unless otherwise indicated. 
 (b) The words “include,” “includes” and “including” when used herein shall be deemed in each case to be followed by the
words “without limitation” and shall not be construed to limit any general statement which it follows to the specific or similar items or matters immediately following it. 
 (c) None of the parties hereto shall be or be deemed to be the drafter of this Agreement for the purposes of construing this Agreement against another
party. 
 (d) All uses of the words “hereto”, “herein”, “hereof”, “hereby” and “hereunder”
and similar expressions refer to this Agreement. 
 (e) Unless otherwise specified in this Agreement, words in the singular include the
plural and vice versa and words importing one gender include all genders. 
 (f) The headings and captions in this Agreement are for
convenience and reference purposes only and shall not be considered a part of, or affect the construction or interpretation of, any provision of this Agreement. 
  

	1.3	Currency 

 Unless specified otherwise, all
references to monetary amounts in this Agreement are to references to the lawful currency of the United States of America. 
  

	1.4	Distribution and License Agreement 

 If the
License Agreement is terminated in accordance with Section 2.11 thereof such that the Distribution Agreement is in effect, then: (a) all references in this Agreement to the License Agreement (other than the definition of License Agreement
in Section 1.1) shall thereafter be deemed to be references to the Distribution Agreement, (b) the defined terms specified in Part 1 of Schedule 1.4 shall thereafter replace the corresponding terms in Section 1.1, and
(c) references to specific provisions of the License Agreement in this Agreement shall be deemed to be references to the corresponding provisions in the Distribution Agreement, including as more particularly set out in Part 2 of Schedule 1.4.

  

 - 7 - 

 ARTICLE 2 
 SALE AND ASSIGNMENT 
  

	2.1	Sale and Assignment 

 (a) On the terms and
subject to the conditions of this Agreement, the Vendor hereby sells, assigns, transfers, conveys and delivers to the Purchaser, and the Purchaser hereby purchases from the Vendor, all right, title and interest of the Vendor in and to the Assigned
Rights free and clear of all Encumbrances. 
 (b) For purposes of clarification, the Vendor is entitled to receive, and the Purchaser shall
have no interest in, any accrued but unpaid Royalties based on Net Sales arising prior to April 1, 2007. 
 (c) Notwithstanding
Section 2.1(a), the Nycomed Direction will provide that both the Purchaser and the Vendor are entitled to receive copies of all Reports. 
  

	2.2	Purchase Price 

 The aggregate purchase price
for the Assigned Rights is up to $75,000,000 (the “Purchase Price”) and will be paid by the Purchaser to the Vendor as specified in Section 2.3. 
  

	2.3	Payment of Purchase Price 

 (a) The sum of
$50,000,000 less the amount of all Royalties received by the Vendor relating to Net Sales from April 1, 2007 to, but not including, the date hereof (the “First Payment”) will be paid by the Purchaser to the Vendor upon Closing
by delivery by or on behalf of the Purchaser of immediately available funds in the requisite amount to the Vendor Account. 
 (b) $25,000,000
will be paid by the Purchaser to the Vendor within 30 days of (i) the Purchaser receiving the Royalty Report for the fourth quarter of 2009 if such report confirms that annual Net Sales in the Original Territory for the calendar year 2009 are
equal to or greater than €[*] (the “2009 Threshold”; or (ii) if the 2009 Threshold is not achieved, the Purchaser receiving the relevant Royalty Reports that confirm that cumulative Net Sales in the Original Territory for
the calendar years 2007, 2008 and 2009 are equal to or greater than €[*]. 
 (c) All payments will be made as and when due by delivery
by or on behalf of the Purchaser of immediately available funds in the requisite amount to the Vendor Account without any deductions or set-offs (except as specifically provided for in Section 2.3(a)). 
  

	2.4	No Obligations Transferred 

 Notwithstanding
any provision of this Agreement: 
  

	 	(a)	the sale, assignment, transfer, conveyance and delivery to the Purchaser of the Assigned Rights pursuant to this Agreement shall not in any way subject the Purchaser to, or
transfer, affect or modify, any obligation or liability of the Vendor under the License Agreement, including the responsibility thereunder (if any) to prosecute or maintain the Patents; and 

  

 - 8 - 

	 	(b)	the Purchaser expressly does not assume or agree to become responsible for any obligation or liability of the Vendor of any kind whatsoever, whether presently in existence or
arising or asserted hereafter, whether under the License Agreement or otherwise, except for actions taken by the Purchaser in exercising its rights under the License Agreement that are part of the Assigned Rights. All such obligations and
liabilities (for certainty, including any and all existing and/or potential obligations under each of the Asahi Agreement, the Gautvik Agreement and the Patent 151 License, including royalty or milestone payments payable thereunder) are, and from
and after the Closing shall be retained by and remain obligations and liabilities of, the Vendor. 

 ARTICLE 3

 THE CLOSING 
  

	3.1	Closing 

 The closing of the transactions
contemplated by this Agreement, including the transfer to the Purchaser of all of the Vendor’s right, title and interest in and to the Assigned Rights, shall take place on the date hereof (the “Closing”) at the offices of the
Purchaser’s counsel, Davies Ward Phillips & Vineberg LLP, in Toronto, Ontario. 
  

	3.2	Closing Deliveries 

 The Purchaser
acknowledges that, at the Closing, the Vendor has delivered or has caused to be delivered to the Purchaser: 
  

	 	(a)	a current Certificate of Status from the Ontario Ministry of Consumer and Business Services; 

  

	 	(b)	a current certificate of Good Standing for the Parent; 

  

	 	(c)	the Nycomed Consent, duly executed and delivered by Nycomed; 

  

	 	(d)	the Nycomed Direction, duly executed and delivered by the Vendor; 

  

	 	(e)	the Bill of Sale, duly executed and delivered by the Vendor; 

  

	 	(f)	the Security Agreement, duly executed and delivered by the Vendor; 

  

	 	(g)	the conditional assignment agreements and additional documentation relating to the registration of the conditional assignment of the Patents in each of the United Kingdom, France,
Germany, Spain, Italy, The Netherlands, Austria and Greece, duly executed and delivered by the Vendor; 

  

 - 9 - 

	 	(h)	a certified copy of each of the Asahi Agreement, the Gautvik Agreement, the Patent 151 License and the License Agreement (including the Distribution Agreement and the Supply
Agreement, which are attached as exhibits thereto); 

  

	 	(i)	standard corporate existence and authority opinions and enforceability opinions on this Agreement, the Bill of Sale, the Security Agreement, the conditional assignment agreements
(including any related mortgages and pledges) referred to in Section 3.2(g), the Distribution Agreement and the License Agreement, a perfection and registration opinion with respect to the Security Agreement, a no conflict with laws opinion on
this Agreement and the License Agreement and a true sale opinion from counsel to the Vendor; and 

  

	 	(j)	standard corporate existence and authority opinions and an enforceability opinion on this Agreement from counsel to the Parent; 

  

	 	(k)	PPSA financing statements to (x) perfect the sale of the Assigned Rights to the Purchaser, to the extent the Assigned Rights are “accounts” as defined in the PPSA,
(y) to create, evidence and perfect the precautionary Encumbrance granted pursuant to the provisions of Section 7.9 and (z) to perfect the security interest granted in the Security Agreement. 

  

	3.3	Closing Deliveries by the Purchaser 

 The
Vendor acknowledges that, at the Closing, the Purchaser has delivered or has caused to be delivered to the Vendor: 
  

	 	(a)	payment by a wire transfer of immediately available funds to the Vendor Account, in the amount equal to the First Payment; and 

  

	 	(b)	the Nycomed Direction, duly executed and delivered by the Purchaser. 

 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF THE VENDOR 
 The Vendor hereby represents and warrants to the Purchaser as of the date hereof as follows and acknowledges that the Purchaser is relying on such
representations and warranties in entering into this Agreement. 
  

	4.1	Organization, Standing and Power 

 (a) The
Vendor is a corporation duly incorporated, validly existing and in good standing under the laws of the Province of Ontario and has full corporate power and authority and possesses all governmental franchises, licences, permits, authorizations and
approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted. 
 (b) The Vendor is not insolvent and no proceedings have been taken or authorized by the Vendor, or to the Knowledge of the Vendor been taken or threatened by any other Person, 

  

 - 10 - 

 
with respect to the bankruptcy, insolvency, liquidation, dissolution or winding up of the Vendor. The Vendor will not become insolvent or be put in insolvent
circumstances or become unable to meet its obligations as they become due, in each case within the meaning of applicable bankruptcy, insolvency and similar laws to which the Vendor is subject, by or as a result of entering into this Agreement or
immediately after the Closing. The Vendor is not entering into this Agreement for the purpose of injuring, obstructing, impeding, defeating, hindering, delaying, defrauding or oppressing the rights and claims of creditors or others against the
Vendor. 
  

	4.2	Authority, Execution and Delivery; Enforceability 

 The Vendor has full power and authority to execute and deliver the Closing Documents and to sell, assign, transfer, convey and deliver the Assigned Rights to the Purchaser and to perform all of the obligations to be performed by the Vendor
hereunder and under the Closing Documents. The execution and delivery of this Agreement and the Closing Documents and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action of
the Vendor. This Agreement has been and each Closing Document has been or will be duly executed and delivered by the Vendor and constitute the Vendor’s legal, valid and binding obligations, enforceable against the Vendor in accordance with its
respective terms, subject to creditors’ rights and general principles of equity. 
  

	4.3	No Conflicts 

 (a) The execution and delivery
of this Agreement and the Closing Documents by the Vendor do not and will not, and the consummation of the transactions contemplated hereby and thereby and the compliance by the Vendor with the terms hereof and thereof will not: 
  

	 	(i)	conflict with, result in a breach or violation of, constitute a default (with or without notice or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a loss of a benefit under, any provision of (i) any applicable statute, law, ordinance, rule or regulation of any Governmental Authority, or any judgment, order, writ, decree, permit or
license of any court or any Governmental Authority to which the Vendor or its properties or assets may be subject, (ii) any agreement (whether written or oral), commitment or instrument to which the Vendor is a party or by which the Vendor or
any of its assets is bound (including any agreement to which the Vendor is a party relating to the Assigned Rights, or the Licensed Technology or the Licensor Trademarks), except that the Vendor has not obtained Nycomed’s consent to the grant
of a security interest in the Distribution Agreement, or (iii) the bylaws of the Vendor; 

  

	 	(ii)	result in the creation or imposition of any Encumbrance on the License Agreement, the Assigned Rights, the Licensed Technology or the Licensor Trademarks except as contemplated in
Section 7.9 and the Security Agreement in favour of the Purchaser; or 

  

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	 	(iii)	relieve any party (or their respective Affiliates) to the License Agreement or the Asahi Agreement of any of its obligations or enable it to terminate or suspend its obligations
thereunder. 

 (b) The sale of the Assigned Rights by the Vendor does not constitute a “sale in bulk” by the Vendor
for purposes of the Bulk Sales Act (Ontario). 
  

	4.4	No Consent 

 No consent (other than the
Nycomed Consent), approval, license, permit, order or authorization of, or registration, declaration or filing with, any Person is required to be obtained or made by the Vendor in connection with the execution and delivery by the Vendor of this
Agreement or any Closing Document, the performance by the Vendor of its obligations under this Agreement or any Closing Document or the consummation of any of the transactions contemplated hereby or thereby, including, for certainty, the consent of
any Affiliate or Sublicensee, to assign the Vendor’s rights to the Assigned Rights, except that the Vendor has not obtained Nycomed’s consent to the grant of a security interest in the Distribution Agreement. 
  

	4.5	Ownership of Assigned Rights 

 (a) The Vendor
is the sole and exclusive owner of all legal and equitable title to the Assigned Rights and has good and valid title to the Assigned Rights free and clear of (i) all Encumbrances and (ii) any right of deduction, set-off, counterclaim or
offset for any reason. Upon completion of the Closing and filing of the applicable PPSA financing statements to perfect the sale, if the Assigned Rights are “accounts” as defined in the PPSA, the Purchaser will have acquired good and valid
title to the Assigned Rights, free and clear of (i) any and all Encumbrances of any kind whatsoever and (ii) any right of deduction, set-off, counterclaim or offset for any reason, except for the Encumbrances in favour of the Purchaser
contemplated herein. The Vendor has not assigned, and has not in any other way conveyed, transferred or granted any Encumbrance to any Person in respect of, all or any portion of its right, title and interest in or to the Assigned Rights or agreed
or committed to do any of the foregoing. 
 (b) There are no other contracts, arrangements or understandings (whether written or oral) to
which the Vendor is a party relating to the Assigned Rights, other than pursuant to the Gautvik Agreement and the Asahi Agreement as more particularly described on Schedule 4.5. 
 (c) Other than the Purchaser under this Agreement, no Person has any entitlement to receive, in whole or in part, any of the Royalties, other than
pursuant to the Gautvik Agreement and the Asahi Agreement as more particularly described on Schedule 4.5. 
  

	4.6	License, Supply and other Agreements 

 (a)
Each of the License Agreement, the Distribution Agreement, the Supply Agreement, the Patent 151 License and the Asahi Agreement is the legal, valid and binding obligation of the Vendor and, to the Knowledge of the Vendor, of each other party
thereto, enforceable in accordance with its terms (subject to laws affecting the rights of creditors generally and principles of equity) and is in full force and effect, except that the Vendor’s and Nycomed’s performance and all
obligations under the Distribution Agreement have been excused in all respects until midnight on September 1, 2007 in accordance with, and subject to, Section 2.11 of the License Agreement. 
  

 - 12 - 

 (b) There is no breach or default, or event which, either individually or in aggregate, with other
events, upon notice or passage of time, or both, would reasonably be expected to give rise to any breach or default in the performance of any of the License Agreement, the Distribution Agreement, the Supply Agreement or the Asahi Agreement by the
Vendor or, to the Knowledge of the Vendor, by any counterparty thereto. 
 (c) The Vendor has not waived any rights or defaults under the
License Agreement, the Distribution Agreement, the Asahi Agreement or the Supply Agreement and has not released any counterparty thereto, in whole or in part, and has not itself been released from any of its obligations under the License Agreement,
the Distribution Agreement, the Asahi Agreement or the Supply Agreement that would reasonably be expected to adversely affect the Assigned Rights. 
 (d) A true, correct and complete certified copy of each of the Asahi Agreement, the Gautvik Agreement, the Patent 151 License and the License Agreement (including the Supply Agreement and the Distribution Agreement, which are attached as
exhibits thereto) has been delivered to the Purchaser concurrent with the delivery of this Agreement. None of the Asahi Agreement, the Supply Agreement, the Distribution Agreement, the Patent 151 License or the License Agreement has been cancelled,
terminated, subordinated or rescinded, in whole or in part, except as specified in Section 2.11 of the License Agreement. The Vendor has not received, and has no reasonable belief that the Vendor may receive, any notice of a counterparty’s
intention to terminate or request any amendment or consent to assignment of the License Agreement, the Distribution Agreement, the Supply Agreement or the Patent 151 License. To the Knowledge of the Vendor, no Person that is a party to such
agreement has made any claim challenging the enforceability of any of the Asahi Agreement, the Distribution Agreement, the Supply Agreement, the Patent 151 License, the License Agreement (or any part thereof) or the Vendor’s rights in or to the
Assigned Rights. 
 (e) The Vendor has the benefit of the freedom to operate provisions of the Asahi Agreement. 
 (f) The Vendor has not assigned any of its rights under the License Agreement, the Patent 151 License or the Asahi Agreement, and each of the License
Agreement and the Asahi Agreement is free and clear of all Encumbrances. 
 (g) To the Knowledge of the Vendor, Nycomed has not granted a
sublicense pursuant to Section 2.1 of the License Agreement. 
  

	4.7	Patents and Other Intellectual Property 

 (a)
Schedule 4.7 sets forth a complete list, including status, of all patent applications and issued patents which comprise the Patents that are applicable in the Original Territory as of the date hereof. The Vendor is the exclusive owner of the entire
right, title and interest in and to the Patents free and clear of any Encumbrances other than the encumbrances in respect of the Licensed Technology that are specifically created under or by the Asahi Agreement. The 

  

 - 13 - 

 
Vendor is the owner of the entire right, title and interest in and to any patent applications which are included in the Patents, free and clear of any
Encumbrances. The Vendor has not received written notice that any Person has challenged the validity or enforceability of the Patents. To the Knowledge of the Vendor, there is no infringement of the Patents by any Person. The Vendor has not received
any demand or claim by any Person that such Person has any ownership interest in any of the Patents, or that any of the Patents are, or may be, invalid or unenforceable or that any Product infringes upon or may infringe upon any patent, copyright,
trademark, trade secret or other intellectual property right of any third party. All appropriate patent fees required to be paid with respect to the applications listed on Schedule 4.7 have been paid. To the Knowledge of the Vendor, the sale of the
existing Product in the Original Territory as currently sold by Nycomed does not infringe any issued patent of any third party or infringes any other trademarks or trade secrets of any third party. Except as set forth in Schedule 4.7(a), the Vendor
has not requested any written opinions of counsel relating to any third party patent or published patent application which may be considered to relate to any Product or Device. 
 (b) To the Knowledge of the Vendor, no third party has a claim or has claimed any ownership rights or received any demand or claim by any Person that any
of the Licensed Technology or Licensor Trademarks is infringing or may infringe upon any patent, copyright, trademark, trade secret or any other intellectual property rights of any third party. 
 (c) Except as set forth in Schedule 4.7(c) other than pursuant to the License Agreement, the Vendor has not entered into any contract, agreement,
commitment or undertaking granting to any Person the right within the Original Territory (i) under the Patents or (ii) to use the Licensed Technology, in either case, to market or sell Products or any other product. 
 (d) The Vendor has not granted to any Governmental Authority a license relating to the Licensed Technology and, to the Knowledge of the Vendor, there is
no reason to believe that the Vendor is or will be required to grant any such license to any Governmental Authority. 
 (e) The manufacture,
use and sale of the existing Product as currently being manufactured, used or sold by Nycomed does not fall within the claims of the Gautvik Patents within the Original Territory. 
 (f) The Vendor does not have any actual knowledge that the Product currently sold by Nycomed in the Original Territory at the time of manufacturing does
not fall within the scope of [*]. 
  

	4.8	Litigation 

 Except as set out on Schedule
4.8, there is no: (a) action, suit, claim or proceeding pending or, to the Knowledge of the Vendor, threatened against the Vendor, at law or in equity, (b) arbitration proceeding to which the Vendor is a party, or (c) any inquiry by
any Governmental Authority pending or, to the Knowledge of the Vendor, threatened against the Vendor, which, if adversely determined, would question the validity or enforceability of the Licensed Technology, the Licensor Trademarks, the License
Agreement or the Assigned Rights, or prevent the consummation of the transactions contemplated by this Agreement or otherwise 

  

 - 14 - 

 
adversely affect the Assigned Rights or the rights granted or licensed by the Vendor to Nycomed under the License Agreement. There is no action or suit by
the Vendor pending or threatened in writing against others relating to the Licensed Technology, the Licensor Trademarks, the License Agreement, the Assigned Rights or the Products or Devices. None of the Patents is subject to any outstanding decree,
order, judgment, or stipulation restricting in any manner the use or licensing thereof by the Vendor or, to the Knowledge of the Vendor, Nycomed. Schedule 4.7 sets forth a list of all patent office proceedings, including oppositions, interferences
or re-examinations, relating to the Patents. 
  

	4.9	Royalties 

 All Royalties required to be paid
by Nycomed pursuant to the License Agreement for any period ending on or prior to April 1, 2007 have been paid in full as and when due. No Royalties have been received by the Vendor from Nycomed for the period from April 1, 2007 to the
date hereof. 
  

	4.10	Reports 

 The Vendor has provided to the
Purchaser true, correct and complete copies of all Royalty Reports received by the Vendor from Nycomed as of the date hereof. 
  

	4.11	Expenses 

 The Purchaser will not be liable
for any brokerage commission, finder’s fee or other like payment in connection with the transactions contemplated by this Agreement because of any action taken by, or agreement or understanding reached by, the Vendor. 
  

	4.12	Disclosure 

 No representation or warranty
made by the Vendor in this Agreement contains any untrue statement of a material fact or omits to state any material fact necessary to make any such representation or warranty not misleading to a prospective buyer of the Assigned Rights. 

 

	4.13	Business Activities 

 (a) Neither the Vendor
nor, to the Knowledge of the Vendor, Nycomed participates (directly or through an agent) within the United States in soliciting the order, negotiating the contract of sale, or performing any other services necessary for the consummation of sales of
Products or Devices (both as defined in the License Agreement) by Nycomed, its affiliates, distributors, subdistributors or sublicensees. 
 (b) Neither the Vendor nor, to the Knowledge of the Vendor, Nycomed participates (directly or through an agent) from the United States in soliciting, negotiating, or performing any other activities or services required to arrange or
incident to the sublicense, subdistribution, or any subsequent sale or exchange of intellectual property underlying the License Agreement. This representation shall not apply to any activities associated with the execution of the License Agreement
(including any solicitation, negotiation or other activities related to the entering into of the License Agreement). 
  

 - 15 - 

 (c) Neither the Vendor nor, to the Knowledge of the Vendor, Nycomed holds out any person or place within
the United States as a point to which sales orders of Products or Devices should be sent. 
 (d) Any Product or Device sold in the Original
Territory that gives rise to payments under the License Agreement is not manufactured, held in, or physically distributed from any location within the United States. 
 (e) No marketing activity with respect to the Products or Devices, including the display, promotion, or sale of samples, is carried out (directly or through an agent) from within the United States by the Vendor or, to
the Knowledge of the Vendor, Nycomed. 
 (f) The Vendor reasonably believes that Products and Devices sold outside the United States are for
use, consumption, or disposition outside the United States. 
 (g) All sales of Products or Devices which generate royalties under the
License Agreement or the Distribution Agreement are made to Persons that are not Affiliates of either Nycomed or the Vendor. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 
 The Purchaser hereby represents and warrants to the Vendor as of the date hereof as follows and acknowledges that the Vendor is relying on such
representations in entering into this Agreement: 
  

	5.1	Organization 

 The Purchaser is a limited
partnership duly organized, validly existing and in good standing under the laws of the Cayman Islands and has full organizational power and authority and possesses all governmental franchises, licences, permits, authorizations and approvals
necessary to enable it to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted. 
  

	5.2	Authorization 

 The Purchaser has full power
and authority to execute and deliver this Agreement and to perform all of the obligations to be performed by the Purchaser hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been
duly authorized by all necessary partnership action of the Purchaser. This Agreement has been duly executed and delivered by the Purchaser and constitutes the Purchaser’s legal, valid and binding obligation, enforceable against the Purchaser in
accordance with its terms. 
  

	5.3	No Conflicts 

 The execution and delivery of
this Agreement by the Purchaser do not, and the consummation of the transactions contemplated hereby and the compliance by the Purchaser with the terms hereof will not conflict with, result in a breach or violation of, constitute a default 

  

 - 16 - 

 
(with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss
of a material benefit under, any provision of: (a) any applicable statute, law, ordinance, rule or regulation of any Governmental Authority, or any judgment, order, writ, decree, permit or license of any court or any Governmental Authority to
which the Purchaser or its properties or assets may be subject, (b) any material contract, commitment or instrument to which the Purchaser is a party or by which the Purchaser or any of its assets is bound, or (c) the governing documents
of the Purchaser. 
  

	5.4	No Consent 

 No consent, approval, license,
permit, order or authorization of, or registration, declaration or filing with, any Person is required to be obtained or made by the Purchaser in connection with the execution and delivery by the Purchaser of this Agreement, the performance by the
Purchaser of its obligations under this Agreement or the consummation of any of the transactions contemplated hereby. 
  

	5.5	Expenses 

 The Vendor will not be liable for
any brokerage commission, finder’s fee or other like payment in connection with the transactions contemplated by this Agreement because of any action taken by, or agreement or understanding reached by, the Purchaser. 
  

	5.6	Litigation 

 There is no: (a) action,
suit, claim or proceeding pending or, to the knowledge of the Purchaser, threatened against the Purchaser, at law or in equity, (b) arbitration proceeding to which the Purchaser is a party, or (c) any inquiry by any Governmental Authority
pending or, to the knowledge of the Purchaser, threatened against the Purchaser, which, if adversely determined, would prevent the consummation of the transactions contemplated by this Agreement. 
  

	5.7	Availability of Funds 

 The Purchaser has or
has access to sufficient funds to enable the Purchaser to consummate the transactions contemplated in this Agreement. 
 ARTICLE 6 

 REPRESENTATIONS AND WARRANTIES OF PARENT 
 The Parent hereby represents and warrants to the Purchaser as of the date hereof as follows and acknowledges that the Purchaser is relying on such representations and warranties in entering into this Agreement.

  

	6.1	Organization, Standing and Power 

 (a) The
Parent is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has full corporate power and authority and possesses all governmental franchises, licences, permits, authorizations and
approvals necessary to enable it to own, lease or otherwise hold its properties and assets and to carry on its business as presently conducted. 
  

 - 17 - 

 (b) The Parent is not insolvent and no proceedings have been taken or authorized by the Parent, or to the
Knowledge of the Parent been taken or threatened by any other Person, with respect to the bankruptcy, insolvency, liquidation, dissolution or winding up of the Parent. The Parent will not become insolvent or be put in insolvent circumstances or
become unable to meet its obligations as they become due, in each case within the meaning of applicable bankruptcy, insolvency and similar laws to which the Parent is subject, by or as a result of entering into this Agreement or immediately after
the Closing. 
  

	6.2	Authority, Execution and Delivery; Enforceability 

 The Parent has full power and authority to execute and deliver this Agreement and to perform all of the obligations to be performed by the Parent hereunder. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary corporate action of the Parent. This Agreement has been duly executed and delivered by the Parent and constitutes the Parent’s legal, valid and binding obligation,
enforceable against the Parent in accordance with its terms, subject to creditors’ rights and general principles of equity. 
  

	6.3	No Conflicts 

 The execution and delivery of
this Agreement by the Parent do not and will not, and the consummation of the transactions contemplated hereby and the compliance by the Parent with the terms hereof will not, conflict with, result in a breach or violation of, constitute a default
(with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a benefit under, any provision of (i) any applicable statute, law, ordinance, rule
or regulation of any Governmental Authority, or any judgment, order, writ, decree, permit or license of any court or any Governmental Authority to which the Parent or its properties or assets may be subject, (ii) any agreement (whether written
or oral), commitment or instrument to which the Parent is a party or by which the Parent or any of its assets is bound, or (iii) the bylaws of the Parent. 
  

	6.4	No Consent 

 No consent, approval, license,
permit, order or authorization of, or registration, declaration or filing with, any Person is required to be obtained or made by the Parent in connection with the execution and delivery by the Parent of this Agreement, the performance by the Parent
of its obligations under this Agreement or the consummation of any of the transactions contemplated hereby. 
  

	6.5	Litigation 

 Except as set out on Schedule
4.8, there is no: (a) action, suit, claim or proceeding pending or, to the knowledge of the Parent, threatened against the Parent, at law or in equity, (b) arbitration proceeding to which the Parent is a party, or (c) any inquiry by
any Governmental Authority pending or, to the knowledge of the Parent, threatened against the Parent, which, if adversely determined, would prevent the consummation of the transactions contemplated by this Agreement. 
  

 - 18 - 

 ARTICLE 7 
 COVENANTS 
  

	7.1	Remittance of Royalties 

 (a) The Vendor
shall direct Nycomed pursuant to the Nycomed Direction to, during the Term, make payments of the Royalties directly to the Purchaser Account, but otherwise in the manner provided in the License Agreement. 
 (b) If, notwithstanding the terms of the Nycomed Direction, Nycomed or any Sublicensee, Affiliate of Nycomed or any other Person makes any payment on
account of the Purchaser Royalty Interest to the Vendor, then the Vendor shall be deemed to be holding such funds in trust for the Purchaser and shall promptly, and in any event no later than three Business Days following the receipt by the Vendor
of such payment, remit the entire amount of such payment to the Purchaser without deduction, set-off, claim, counterclaim or offset (except to the extent of Royalties received by the Vendor and deducted by the Purchaser from the First Payment);
provided, however, that if the Purchaser notifies the Vendor in writing that any amount required to be remitted to the Purchaser by Nycomed or any Sublicensee or Affiliate was not remitted to the Purchaser, and the Purchaser has confirmed with
Nycomed or such Sublicense or Affiliate that such amount was instead remitted to the Vendor, then the Vendor shall promptly remit such amounts to the Purchaser and, in any event, within one Business Day of receipt of such notice from the Purchaser.

 (c) All payments referred to in Section 7.1(a) and (b) shall be made, unless otherwise agreed in writing by the parties, by wire
transfer of immediately available funds to the Purchaser Account. 
 (d) If at any time the Purchaser receives or has received any payment or
other money relating to the Licensed Technology that is not in respect of the Assigned Rights or that the Purchaser is not otherwise entitled to under this Agreement or a Closing Document, the Purchaser shall be deemed to be holding such funds in
trust for the Vendor and shall forthwith upon receipt of such funds and, in any event, within five Business Days thereof, deliver the same to the Vendor Account without deduction, set-off, claim, counter-claim or offset. 
  

	7.2	Maintenance of License, Supply and other Agreements 

 (a) Subject to Section 7.4(b)(ii), at all times and from time to time during the Term, the Vendor shall (i) comply fully with all of its obligations under the License Agreement, the Distribution Agreement, the Supply Agreement,
the Patent 151 License and the Asahi Agreement, and (ii) immediately notify the Purchaser in writing in the event the Vendor receives notice from or on behalf of a counterparty to any of the License Agreement, the Distribution Agreement, the
Supply Agreement, the Patent 151 License or the Asahi Agreement that the Vendor is in default thereunder or that a party thereto has terminated or intends to terminate the License Agreement, the Distribution Agreement, the Supply Agreement, the
Patent 151 License or the Asahi Agreement. 
  

 - 19 - 

 (b) During the Term, the Vendor shall not, without prior written consent of the Purchaser: (i) sell,
assign, transfer, convey, deliver, create any Encumbrance on or otherwise dispose of any right, interest or obligation in, to or under the License Agreement, the Distribution Agreement or the Patent 151 License; (ii) forgive, release or
compromise any Royalties owed by or to become owing to the Vendor pursuant to the License Agreement or the Distribution Agreement; (iii) amend, modify, supplement, restate or otherwise alter any of the License Agreement, the Distribution
Agreement or the Asahi Agreement in a manner which, either individually or in the aggregate, could reasonably be expected to adversely affect the Assigned Rights; (iv) terminate the Asahi Agreement, the License Agreement or the Distribution
Agreement; (v) amend or modify the Supply Agreement in a manner which, either individually or in the aggregate, could reasonably be expected to adversely affect the Assigned Rights, (vi) terminate the Supply Agreement, except pursuant to a
written agreement pursuant to which Nycomed or any of its successors or assigns agrees to manufacture, or have a third party manufacture, the Product, or (vii) consent to any of the foregoing. Notwithstanding the foregoing, the Vendor shall be
permitted to assign the License Agreement, the Distribution Agreement and the Supply Agreement to an Affiliate to which the Patents, the Patent 151 License and this Agreement are also assigned in accordance with Sections 7.4(e) and 11.4,
respectively, without the Purchaser’s consent; provided, however, that prior to such assignment of the License Agreement and the Distribution Agreement, such assignee shall grant to the Purchaser a valid perfected first priority security
interest therein on the same terms as the security interest granted to the Purchaser under the Security Agreement. The Purchaser acknowledges that, pursuant to Section 2.11 of the License Agreement: (i) upon the delivery of the Release
Certificate (as defined in the License Agreement) by Nycomed to the Vendor as set forth in Section 6.8 of the License Agreement, the Distribution Agreement shall be immediately terminated and deemed null and void in all respects upon the date
of such delivery; and (ii) in the event that the Release Certificate is not delivered as set forth in Section 6.8 of the License Agreement, subject to Section 16.8 of the License Agreement, the License Agreement shall be immediately
terminated and deemed null and void in all respects. 
  

	7.3	Reports; Other Information 

 (a) If,
notwithstanding the terms of the Nycomed Direction, any Report required by this Agreement to be delivered to the Purchaser is delivered to, or otherwise received by or on behalf of the Vendor, the Vendor shall promptly, and in any event no later
than three Business Days following the receipt thereof by or on behalf of the Vendor, deliver such Report to the Purchaser in accordance with Section 11.3 (without the necessity of delivering a copy to the Purchaser’s counsel) by overnight
courier service. 
 (b) The Vendor shall provide to the Purchaser, as promptly as practicable, but in any event within five Business Days of
receipt by the Vendor: (i) copies of any notice, report or other written communication with, from or on behalf of Nycomed or any other Person directly relating to the License Agreement, the Asahi Agreement, the Nycomed Direction or the Assigned
Rights, in each case to the extent the foregoing could, individually or in the aggregate, reasonably be expected to result in an adverse effect to the Assigned Rights, (ii) copies of any notice, report or other written communication with, from
or on behalf of Nycomed or any other Person relating to any of, the Asahi Agreement, the Gautvik Agreement, the Licensed Technology, any sublicense agreement with any Sublicensee or Affiliate, any Product, the total 

  

 - 20 - 

 
amounts invoiced in respect of the Net Sales of Products sold by Nycomed, its Affiliates or Sublicensees, the Royalties or any other matters reasonably
related thereto, in each case, to the extent the foregoing relates to any Assigned Rights or would reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect, (iii) notice (in writing in reasonable
detail) of any oral communication with, from or on behalf of Nycomed which would reasonably be understood to be a material development with respect to any of the Asahi Agreement, the Gautvik Agreement, the Assigned Rights or Products,
(iv) notice of any actions, suits, claims, investigations or proceedings commenced or threatened in writing against, relating to or involving or otherwise affecting the Asahi Agreement, the Gautvik Agreement Licensed Technology, the License
Agreement, any sublicense agreement with any Sublicensee or Affiliate, any Product, the total amounts invoiced in respect of the Net Sales of Products sold by Nycomed, its Affiliates or Sublicensees, the Royalties or any other matters reasonably
related thereto to the extent the foregoing relates to any Assigned Right or would reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect, and (v) a copy of each report, notice or other written
communication referred to in Sections 6.8, 9.7.4, 9.7.5, 16 and 17 of the License Agreement and Sections 19 and 20 of the Distribution Agreement, as applicable. 
  

	7.4	Patent Obligations 

 (a) For so long as the
License Agreement remains in effect: 
  

	 	(i)	the Vendor shall provide or cause to be provided to the Purchaser copies of all correspondence received from Nycomed pursuant to Section 9.4 of the License Agreement;

  

	 	(ii)	subject to the terms of the License Agreement, the Vendor shall procure that Nycomed shall prosecute and maintain the Patents in the Original Territory that could be necessary or
advantageous for the Vendor to fulfill its obligations under the License Agreement; and 

  

	 	(iii)	subject to the terms of the License Agreement, in the event Nycomed intends to allow any Patent in the Original Territory to lapse or become abandoned, the Vendor shall consult with
the Purchaser to determine whether such Patent is necessary for or advantageous to the Vendor’s fulfillment of its obligations under the License Agreement, and the Vendor shall have the right (but not the obligation) to assume further
responsibility for the prosecution, maintenance and defence of such Patent at the Vendor’s expense. If the Vendor intends to allow any such Patent to lapse or become abandoned, the Purchaser shall have the right (but not the obligation) to
assume further responsibility for the prosecution, maintenance and defence of such Patent at the Purchaser’s expense. 

 (b) At any time that the Distribution Agreement is in effect: 
  

	 	(i)	 the Vendor shall, subject to the rights of Nycomed under the Distribution Agreement: (A) to the full extent allowed by law, prosecute and maintain in 

  

 - 21 - 

	 	 
full force and effect each pending patent application included in the Patents in the Original Territory, and (B) maintain and keep in full force and
effect any issued Patents in the Original Territory. The Vendor shall provide or cause to be provided to the Purchaser copies of all correspondence with any patent office or counsel’s analysis in writing, including drafts of responses with
sufficient time to provide the Purchaser time to review and comment on such response; and 

  

	 	(ii)	subject to the terms of the Distribution Agreement, the Vendor shall pursue and prosecute any claim under any Patent applicable within the Original Territory that could reasonably
be necessary or advantageous for the Vendor to fulfill its obligations under the License Agreement and in respect of which the Vendor is advised by Purchaser’s patent counsel has a reasonable legal basis for allowance. The Vendor will not
abandon prosecution of any pending claim under a Patent without the prior written consent of the Purchaser acting reasonably. In addition, prior to issuance of a patent from a pending patent application included in Patents or abandonment of a patent
application included in Patents, the Vendor shall file, or if Nycomed is primarily responsible for the prosecution and maintenance of the Patents, shall procure that Nycomed shall file, to the extent permitted by law, a continuation or divisional
application of the patent application unless: (A) the Vendor has prior written consent from the Purchaser not to file such a continuation or divisional application, or (B) as of the date of such issuance or abandonment, the term of all
Patents has expired. 

 (c) If the Vendor or Nycomed proposes not to pay or to continue to pay all required maintenance or
other government fees as are necessary or desirable to diligently maintain any issued patent included in the Patents within the Original Territory, the Vendor shall promptly notify the Purchaser of such proposal prior to making any decision in
respect thereof. The Purchaser shall have the right (but not the obligation) to assume responsibility for maintenance of such Patent in such countries at the Purchaser’s expense, provided that, if the Purchaser chooses to exercise such right,
the Purchaser shall notify the Vendor thereof in writing within a reasonable period of time. 
 (d) If the Vendor shall have received written
notice of infringement of any Patent and none of the Vendor, Nycomed or any other Person has initiated legal proceedings against such infringer as permitted pursuant to the License Agreement, then, subject to the terms of the License Agreement, if
requested by the Purchaser, the Vendor shall initiate legal proceedings against such infringer with counsel selected by the Purchaser and at the Purchaser’s expense, and the Purchaser will have the right to control such legal action. The Vendor
will cooperate fully with the Purchaser in any such legal action. 
 (e) The Vendor may not sell or otherwise transfer (save in respect of
the License Agreement and the Distribution Agreement) any Patent to any Person without the prior written consent of the Purchaser, such consent to be at the Purchaser’s sole discretion. Notwithstanding the foregoing, the Vendor may transfer the
Patents to an Affiliate to which the License Agreement, the Distribution Agreement, the Patent 151 License and this Agreement are also 

  

 - 22 - 

 
assigned in accordance with Sections 7.2(b) and 11.4, respectively, without the Purchaser’s prior written consent; provided, however, that prior to such
transfer, such assignee shall grant to the Purchaser a valid perfected first priority security interest in such transferred Patents on the same terms as the security interest granted to the Purchaser under the Security Agreement and the
documentation referred to in Section 3.2(g). 
  

	7.5	Termination of License Agreement 

 (a) If the
License Agreement is terminated by Nycomed or, subject to Section 7.2, by the Vendor, and at such time the Licensed Technology remains economically valuable (as determined by the Purchaser in its sole discretion acting reasonably), then the
Vendor shall thereafter use commercially reasonable efforts to enforce its rights under Sections 16.5 and 16.6 of the License Agreement and for a period of 12 months following the effective date of any such termination use its commercially
reasonable efforts: (a) to negotiate, execute and deliver (i) a new license agreement (the “New License Agreement”) for the license of the Licensed Technology, on terms that are substantially similar (when taken as a
whole) as those contained in the License Agreement and that do not adversely affect the Assigned Rights, or (ii) any other arrangement for the exploitation of the Licensed Technology, in each case providing for the payment of royalties or other
consideration to the same extent and for the same period of time that Royalties are currently payable to the Vendor pursuant to the License Agreement or the economic equivalent thereof on terms that are reasonably satisfactory to the Purchaser and
the Vendor (collectively, the “New Arrangement”); and (b) to obtain all approvals and consents which are necessary in connection therewith. 
 (b) The Vendor shall obtain the Purchaser’s written consent in accordance with Section 7.2 prior to entering into any New Arrangement and shall keep the Purchaser reasonably informed as to the status of
negotiations with respect to and completion of the New Arrangement. Promptly upon the Vendor entering into the New Arrangement, the Vendor shall provide the Purchaser with a certified true, correct and complete copy of the agreement or contract
relating to the New Arrangement and the Purchaser shall be entitled to all Royalties under such New Arrangement to the same extent and under the same terms as set forth in the definition of the Purchaser Royalty Interest herein (the “New
Royalty Interest”). 
 (c) If the Vendor does not complete such negotiation, execution and delivery and obtain such approvals and
consents within 12 months of its commencing the process of obtaining a New License Agreement, then the Vendor shall provide reasonable assistance to and cooperate with the Purchaser, at the Purchaser’s cost and expense, and the Purchaser shall
be authorized in the name of the Vendor for the benefit of the Purchaser, at the Purchaser’s sole discretion, cost and expense (including the Purchaser’s payment of the Vendor’s reasonable attorney fees in connection therewith, if
any), to negotiate, execute and deliver a New License Agreement for the license of the Licensed Technology on terms that are no more extensive (when taken as a whole), without the Vendor’s permission, than the terms contained in the License
Agreement, but in any event, with respect to the following matters, the New License Agreement shall include provisions at least as favourable to the Vendor as those contained in the License Agreement: disclaimers of the Vendor’s liability,
intellectual property ownership and control, commercialization diligence and indemnification of the Vendor. In the event the Vendor enters into a New Arrangement, the Vendor agrees to comply with the provisions of this Agreement in 

  

 - 23 - 

 
connection with the New License Agreement and references herein to the Purchaser Royalty Interest, the License Agreement and the Assigned Rights shall be
deemed to be references to the New Purchaser Royalty Interest, the New License Agreement, and all of the right, title and interest (but none of the obligations) of the Vendor in and to the New License Agreement, respectively, and references to
Nycomed shall be deemed to be references to the other party to the New License Agreement and that other party’s Affiliates. 
  

	7.6	Confidentiality 

 (a) All information
furnished by the Purchaser to the Vendor or by the Vendor to the Purchaser in connection with this Agreement and the transactions contemplated hereby, as well as the terms, conditions and provisions of this Agreement and any other agreement
delivered pursuant hereto, shall be kept confidential by the Vendor, the Purchaser and the Parent and shall be used by the Vendor, the Purchaser and the Parent only in connection with this Agreement and the transactions contemplated hereby, except
in connection with the enforcement of rights under this Agreement and except to the extent that such information: (i) is already known by the party to whom the information is disclosed or in the public domain at the time the information is
disclosed, (ii) thereafter becomes lawfully obtainable from other sources other than as a result of a breach of an obligation of confidentiality, (iii) is required to be disclosed in any document to be filed with any Governmental
Authority, or (iv) is required to be disclosed under securities laws or regulations applicable to the Vendor, the Purchaser or their respective Affiliates, or by court or administrative order. Notwithstanding the foregoing, the Purchaser may
disclose such information to its manager and partners and each of its and their respective Affiliates, directors, officers, investors, bankers, financing sources, ratings agencies, advisors, trustees and representatives and the Vendor and the Parent
may disclose such information to its Affiliates, directors, officers, bankers, advisors, investors, financing sources, strategic partners and representatives, provided that such Persons shall be informed of the confidential nature of such
information and shall be obligated to keep such information confidential pursuant to the terms of this Section 7.6. 
 (b) The parties
shall use reasonable efforts, acting in good faith, to cooperate with each other with respect to the scope and substance of all disclosures regarding this Agreement to or as required by any Governmental Authority, including the United States
Securities and Exchange Commission. In addition, the parties will coordinate in advance with each other in connection with the redaction of certain provisions of this Agreement with respect to any SEC filings of this Agreement, and each party shall
use reasonable efforts to seek confidential treatment for such terms if so requested by the other party. Notwithstanding the foregoing, each party shall ultimately retain control over the scope of information to be disclosed to any Governmental
Authority for purposes of complying with any applicable law. 
 (c) The parties shall be free to publicly disclose information contained in
any materials that have previously been approved for public disclosure by the other party, without further approvals from the other party hereunder, to the extent there have been no material additions or changes thereto. 
 (d) The Vendor and the Parent acknowledge that each party will, after Closing, make a public announcement of the transactions contemplated by this
Agreement in the form of the 

  

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press release set out in Schedule 7.6(d). Except as set forth in this Section 7.6, no announcement or other disclosure, public or otherwise, concerning
the financial or other terms of this Agreement shall be made, either directly or indirectly, by any party hereto without first obtaining the written approval of the other party and agreement upon the nature and text of such announcement or
disclosure, such approval and agreement not to be unreasonably withheld or delayed. 
  

	7.7	Books and Records 

 Each of the parties will
treat the sale and assignment to the Purchaser of the Assigned Rights pursuant to Section 2.1 as a sale and assignment on its books and records. 
  

	7.8	Purchaser May Perform 

 If the Vendor fails
to observe or perform any covenant, condition or agreement contained in this Agreement, and such failure shall continue unremedied for a period of 30 days after notice thereof from the Purchaser to the Vendor, the Purchaser may (but shall not be
obliged to) perform, or cause performance of, such covenant, condition or agreement, provided that the Purchaser shall in any event first have given the Vendor written notice of its intent to do the same. 
  

	7.9	Grant of Security Interest 

 (a) The Vendor
shall enter into and perform its obligations under the Security Agreement, including, as general and continuing security for the due payment and performance of all of the Vendor’s obligations under this Agreement, the grant to the Purchaser of
a legal, valid and enforceable first priority security interest in and to the Licensed Technology, the License Agreement and the Distribution Agreement, on the terms of and subject to the conditions contained in the Security Agreement. 

(b) After the Closing, from time to time, as and when requested by the Purchaser, the Vendor shall use its commercially reasonable efforts to procure
the cooperation of Asahi as reasonably deemed necessary by the Purchaser in connection with the registration of the Asahi Agreement with the relevant Government Authorities in the Original Territory by the Purchaser or its designee. 
 (c) As soon as possible following the Closing and, in any case, within 60 days from the date hereof, the Vendor shall take such actions as are required
to perfect the registers (for certainty, including, as required, ensuring that the Vendor’s name and address are correctly referenced therein) in the patent offices in which the Patents are registered in each of the jurisdictions listed in
Section 3.2(g) in order to, or in order to enable the Purchaser to, within such 60-day period, record on such patent registers each of the documents referred to in Section 3.2(g). 
 (d) As soon as possible following the Closing and, in any case, within 15 days from the date hereof, the Vendor shall obtain the written consent of
Nycomed to the grant of a security interest in the Distribution Agreement by the Vendor as contemplated in the Security Agreement. 
  

 - 25 - 

	7.10	Costs and Expenses 

 Subject to the
provisions of the next paragraph, each party shall be responsible for and bear all of its own costs and expenses (including attorney fees and any brokers, finders or investment banking fees or prior commitment in respect thereof) incurred in
connection with this Agreement and the Closing. 
  

	7.11	No Contravention of Vendor’s Residual Rights; End of Term 

 (a) The Purchaser shall not take any action or omit to take any action that would materially impair the Vendor’s: (i) residual rights in, to or under the License Agreement; or (ii) rights to payments
under Section 2.3(b). 
 (b) At the end of the Term, the Purchaser shall take such actions, and execute such documents, certificates and
instruments, as reasonably requested by the Vendor or the Parent to terminate the security interests granted by the Vendor and the Parent hereunder and pursuant to the Security Agreement and to direct Nycomed to thereafter pay the royalties under
the License Agreement and the Distribution Agreement and deliver the Reports to the Vendor or to such other Person as the Vendor may determine in its sole discretion. 
  

	7.12	Certain Factual Representations of the Vendor 

 The Vendor shall use reasonable efforts to ensure that each of the factual representations and warranties set out in Section 4.13 relating solely to any activities of the Vendor or its Affiliates which activities are directly or
indirectly in its control shall remain true and accurate at all times during the Term. During the Term, the Vendor shall notify the Purchaser as soon as practical in the event that the Vendor becomes aware that any aspect of such representations and
warranties becomes wholly or partially inaccurate. 
  

	7.13	Cure Period 

 The Vendor or the Purchaser, as
applicable, shall have 60 days after receiving notice from the other party to cure the breach of any covenant contained in this Agreement or in any Closing Document. 
 ARTICLE 8 
 TERMINATION; SURVIVAL 
  

	8.1	Termination 

 This Agreement shall terminate
on the earlier of: (i) the date (the “Termination Date”) that the aggregate amount of the payments received by the Purchaser in respect of the Purchaser Royalty Interest is equal to the amount that is 2.5 times the amount of
the Purchase Price actually paid by the Purchaser to the Vendor under Section 2.3, provided that for purposes of this calculation the First Payment shall be deemed to be $50,000,000; (ii) the expiration or termination of the License
Agreement pursuant to Section 16.1 or 16.2 thereof; or (iii) the termination of the License Agreement by Nycomed and the failure by the Vendor or the Purchaser to enter into a New License Agreement within 12 months after such termination
in accordance with Section 7.5. 
  

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	8.2	Survival 

 (a) The representations and
warranties in Sections 4.1, 4.2, 4.5, 4.6(a), 4.6(d), 4.6(e), 4.6(f), 4.7(a), 4.7(b), 4.7(d), 5.1, 5.2, 6.1 and 6.2 shall survive the Closing until the Termination Date. The other representations and warranties in Article 4, Article 5 and
Article 6 shall survive the Closing until the second anniversary of the date hereof. No claim for any breach of a representation or warranty or any claim for indemnification based on a breach of representation or warranty shall be made
following the date when the applicable representation or warranty expires. 
 (b) To the extent not performed, covenants shall survive the
Closing until the Termination Date. 
 ARTICLE 9 
 INDEMNITY 
  

	9.1	Indemnification by the Vendor and the Parent 

 The Vendor and the Parent shall jointly and severally indemnify the Purchaser, and its officers, directors, managers, partners, trust beneficiaries, agents and representatives against, and hold each of them harmless from, any Damages
suffered or incurred by any such Person arising from, relating to or otherwise in respect of: 
  

	 	(a)	any breach of any representation or warranty of the Vendor or the Parent contained in this Agreement or any Closing Document; 

  

	 	(b)	any breach of any covenant of the Vendor or the Parent contained in this Agreement or any Closing Document; 

  

	 	(c)	any liability or obligation of the Vendor arising under the Asahi Agreement or the Gautvik Agreement; 

  

	 	(d)	any deduction, set-off, claim, counterclaim or offset made by Nycomed, any Sublicensee or Affiliate on account of any payment the Purchaser is entitled to receive pursuant to this
Agreement in respect of the Assigned Rights if such deduction, set-off, claim, counterclaim or offset is made to satisfy any obligation or amount owing or alleged to be owing for any withholding taxes on payments from Nycomed to the Vendor under the
License Agreement for any period prior to the commencement of the Term, as contemplated in Section 7.7 of the License Agreement; and 

  

	 	(e)	any liability suffered or incurred by the Purchaser as a result of or arising from the failure of the Vendor to comply with the requirements of any applicable bulk sales legislation
in respect of the purchase and sale of the Assigned Rights under this Agreement. 

  

 - 27 - 

	9.2	Indemnification by the Purchaser 

 The
Purchaser shall indemnify the Vendor, its directors, officers, shareholders and representatives against, and hold them harmless from, any Damages suffered or incurred by any such Person arising from, relating to or otherwise in respect of:

  

	 	(a)	any breach of any representation or warranty of the Purchaser contained in this Agreement; and 

  

	 	(b)	any breach of any covenant of the Purchaser contained in this Agreement. 

  

	9.3	Procedure for Claims 

 (a) Third Party
Claims. In order for a person (the “indemnified party”) to be entitled to any indemnification provided for under Section 9.1 or 9.2 in respect of, arising out of or involving a claim made by any Person against the
indemnified party (a “Third Party Claim”), such indemnified party must notify the indemnifying party in writing (and in reasonable detail) of the Third Party Claim within ten Business Days after receipt by such indemnified party of
notice of the Third Party Claim; provided, however, that failure to give such notification shall not affect the indemnification provided hereunder except to the extent the indemnifying party shall have been actually and materially prejudiced as a
result of such failure. Thereafter, the indemnified party shall deliver to the indemnifying party, within five Business Days after the indemnified party’s receipt thereof, copies of all notices and documents (including court papers) received by
the indemnified party relating to the Third Party Claim. 
 (b) Assumption. If a Third Party Claim is made against an indemnified
party, the indemnifying party shall be entitled to participate in the defence thereof and, if it so chooses, to assume the defence thereof with counsel selected by the indemnifying party; provided, however, that such counsel is not reasonably
objected to by the indemnified party. Should the indemnifying party so elect to assume the defence of a Third Party Claim, the indemnifying party shall not be liable to the indemnified party for any legal expenses subsequently incurred by the
indemnified party in connection with the defence thereof. If the indemnifying party assumes such defence, the indemnified party shall have the right to participate in the defence thereof and to employ counsel, at its own expense, separate from the
counsel employed by the indemnifying party, it being understood that the indemnifying party shall control such defence. The indemnifying party shall be liable for the fees and expenses of counsel employed by the indemnified party for any period
during which the indemnifying party has not assumed the defence thereof. If the indemnifying party chooses to defend or prosecute a Third Party Claim, all the indemnified parties shall cooperate in the defence or prosecution thereof. Such
cooperation shall include the retention and (upon the indemnifying party’s request) the provision to the indemnifying party of records and information that are reasonably relevant to such Third Party Claim, and making employees available on a
mutually convenient basis to provide additional information and explanation of any material provided hereunder. Whether or not the indemnifying party assumes the defence of a Third Party Claim, the indemnified party shall not admit any liability
with respect to, or settle, compromise or discharge, such Third Party Claim without the indemnifying party’s prior written consent (which consent shall not be unreasonably withheld). If the indemnifying party assumes the defence of a Third
Party Claim, the 

  

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indemnified party shall agree to any settlement, compromise or discharge of a Third Party Claim that the indemnifying party may recommend and that by its
terms obligates the indemnifying party to pay the full amount of the liability in connection with such Third Party Claim, which releases the indemnified party completely in connection with such Third Party Claim and that would not otherwise
adversely affect the indemnified party. 
 (c) Other Claims. In the event any indemnified party should have a claim against any
indemnifying party under Section 9.1 or 9.2 that does not involve a Third Party Claim being asserted against or sought to be collected from such indemnified party, the indemnified party shall deliver notice of such claim with reasonable
promptness to the indemnifying party. The failure by any indemnified party so to notify the indemnifying party shall not relieve the indemnifying party from any liability that it may have to such indemnified party under Section 9.1 or 9.2,
except to the extent that the indemnifying party demonstrates that it has been materially prejudiced by such failure. 
  

	9.4	Tax Matters 

 The Purchaser acknowledges that
neither the Vendor nor the Parent or any of their respective employees or Affiliates has rendered any tax advice related to the receipt by the Purchaser of payments pursuant to the Purchase Agreement and that neither the Vendor nor the Parent or any
of their respective employees or Affiliates has provided any representation regarding the application of the tax law of any jurisdiction to the Purchaser in connection with the receipt of such payments. Neither the Vendor nor the Parent or any of
their respective employees or Affiliates shall be liable or otherwise incur an obligation to the Purchaser or its Affiliates as a result of any tax liabilities (including any penalties or fines) incurred by the Purchaser or its Affiliates arising
out of, or resulting from, the Purchaser’s tax planning in connection with the consummation of the transaction contemplated herein; provided, however, that the foregoing shall not relieve the Vendor and the Parent of any obligation arising
under Section 9.1(a). 
 ARTICLE 10 
 GUARANTEE OF VENDOR’S OBLIGATIONS 
  

	10.1	Guarantee 

 The Parent hereby absolutely,
unconditionally and irrevocably guarantees to the Purchaser, during the Term, the punctual and complete fulfillment and performance when due of all of the Vendor’s (including its successors and permitted assignees) obligations under this
Agreement and the Security Agreement, including any obligations that accrued after the filing of a bankruptcy petition or the commencement of a bankruptcy proceeding, notwithstanding any automatic stays or other laws that limit the accrual of
obligations post-filing or post-commencement (for purposes of this Article 10, the “Guarantee”). 
  

	10.2	Guarantee Binding 

 The liability of the
Parent under the Guarantee shall be binding upon the Parent and its successors and permitted assigns, shall not be subject to any counterclaim, set-off, deduction or defence based upon any claim that the Parent may have against the Purchaser under

  

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this Agreement or otherwise and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected by, any
circumstance or condition whatsoever (whether or not the Parent shall have any knowledge or notice thereof) that might otherwise constitute a legal or equitable discharge or defence of a guarantor (including the insolvency or bankruptcy of the
Vendor); provided, however, that any claim of the Purchaser under this Guarantee against the Parent shall be subject to, and the Parent shall have available to it in defence of any such claim, any and all of the Vendor’s rights and defences,
whether arising under this Agreement, the other Closing Documents or otherwise, in respect of any such claim, other than those defences in respect of good standing, valid existence, corporate capacity, due authorization, due execution or delivery
and, as noted above, financial condition of the Vendor. 
  

	10.3	Costs and Expenses 

 To the extent Vendor is
unable to financially satisfy any claims determined to be due and owing to Purchaser, the Parent shall pay all costs and expenses (including legal fees and expenses) reasonably incurred by or on behalf of the Purchaser in enforcing the obligations
of the Parent under this Guarantee. 
  

	10.4	Subrogation 

 To the extent of any payment by
the Parent to the Purchaser under this Guarantee, the Parent shall succeed to all corresponding claims that the Purchaser may have and otherwise shall be subrogated to the rights of the Purchaser against the Vendor in respect thereof. 
  

	10.5	Enforcement 

 The Purchaser shall first seek
to enforce the Obligations against the Vendor before seeking to enforce this Guarantee, but the Purchaser shall not be required to exhaust all of its remedies against the Vendor before enforcing this Guarantee. 
 ARTICLE 11 
 MISCELLANEOUS

 11.1 Further Assurances 
 After the Closing, from time to time, as and when requested by any party, each party shall execute and deliver, or cause to be executed and delivered, all such documents, certificates and instruments, and shall take, or cause to be taken,
all such further or other actions, as such other party may deem reasonably necessary, desirable or appropriate to carry out all of the provisions of this Agreement and to consummate all of the transactions contemplated by this Agreement. 

11.2 Specific Performance 
 Each of the
parties hereto acknowledges that the other party may have no adequate remedy at law if it fails to perform any of its obligations under this Agreement. In such event, each of the parties agrees that the other party shall have the right, in addition
to any other rights it may have (whether at law or in equity), to pursue equitable remedies such as injunction and specific performance of this Agreement. 
  

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	11.3	Notices 

 All notices or other communications
required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent electronically, by facsimile or e-mail (with proof of electronic transmission), or sent, postage prepaid, by registered, certified or express mail
or overnight courier service and shall be deemed given when so delivered by hand, facsimile or e-mail, or if mailed, three Business Days after mailing (one Business Day in the case of express mail or overnight service), as follows: 
  

	 	(a)	if to the Purchaser: 

 Drug Royalty L.P. 3 
 c/o Drug Royalty Corporation Inc. 
 Suite
3120, Royal Bank Plaza 
 Toronto, ON 
 Canada M5J 2J3 
  

			
	Attention of:	  	Behzad Khosrowshahi
	Fax No.:	  	(416) 863-5161
	E-mail:	  	bk@drugroyalty.com

 with a copy (which shall not constitute notice) to: 
 Davies Ward Phillips & Vineberg LLP 
 P.O. Box 63 
 Suite 4400, 1 First Canadian Place 
 Toronto, ON 
 Canada M5X 1B1 
  

			
	Attention of:	  	Gillian R. Stacey
	Fax No.:	  	(416) 863-0871
	E-Mail:	  	gstacey@dwpv.com

  

	 	(b)	if to the Vendor: 

 NPS Allelix Corp. 
 c/o Blake, Cassels & Graydon LLP 
 199 Bay Street 
 Suite 2800, Commerce Court West 
 Toronto ON M5L 1A9 
 Canada 
  

			
	Attention of:	  	Chris Hale
	Fax No.:	  	(416) 863-2653

  

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 with a copy to the Parent 
  

	 	(c)	if to the Parent: 

 NPS Pharmaceuticals Inc. 
 Morris Corporate Center 1 
 4th
Floor, Building B 
 300 Interpace Parkway 
 Parsippany, New Jersey 07054 
 United States of America 
  

			
	Attention of:	  	Vice-President, Corporate Development
	Fax No.:	  	(973) 316-6463

 with a copy to (at the above-noted address): 
  

			
	Attention of:	  	General Counsel
	Fax No.:	  	(973) 316-6463

 or to such other address or addresses as any party may from time to time designate by notice as provided herein.

  

	11.4	Successors and Assigns 

 This Agreement shall
inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto. This Agreement may not be assigned in whole or in part by any party without the prior written consent of the other parties; provided,
however, that: (a) the Purchaser may assign this Agreement in whole or in part without the prior written consent of the Vendor or the Parent: (i) by way of security to a financial institution or other lender, (ii) to any Person that
directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Purchaser, (iii) to a special purpose vehicle created to be bankruptcy remote or for financing purposes or
(iv) as part of a sale of a material part of the Purchaser, in any case whether by way of reorganization or otherwise, provided only that any such assignee shall have, or have access to, funding sufficient to permit it to meet its obligations
hereunder, and the Purchaser shall give prompt notice of any such assignment to the Vendor and the Parent within 10 Business Days after the occurrence thereof; and (b) the Vendor may assign this Agreement in whole or in part without the prior
written consent of the Purchaser to any Affiliate that is organized under the laws of Canada, any province of Canada or any state in the United States of America to which the License Agreement, the Distribution Agreement, the Patent 151 License and
the Patents are also assigned in accordance with Sections 7.2(b) and 7.4(e), respectively, provided that such assignment could not reasonably be expected to result in or give rise to a material adverse effect on the validity or enforceability of
this Agreement or the rights or remedies of the Purchaser hereunder. 
  

	11.5	No Partnership 

 Nothing in this Agreement
shall be deemed in any way or for any purpose to constitute either party as a partner of the other party in the conduct of any business. For all 

  

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purposes of this Agreement, the parties are independent contractors. Except to the limited extent expressly provided in this Agreement, neither party shall
have the authority to bind, obligate or represent the other party. 
  

	11.6	Entire Agreement 

 This Agreement, the
Nycomed Direction, the Nycomed Consent, the Bill of Sale and the Security Agreements, including the Schedules and Exhibits hereto and thereto, together constitute the entire agreement and understanding between the parties hereto with respect to the
subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter (including, for certainty, the letter of intent dated April 26, 2007). 
  

	11.7	True Sale Security Agreement 

 (a) The Vendor
and the Purchaser intend and agree that the sale, assignment, transfer, conveyance and delivery of the Assigned Rights at the Closing be and is a true sale by the Vendor to the Purchaser that is absolute and irrevocable and that provides the
Purchaser with the full benefits of ownership of the Assigned Rights from and after the Closing, and neither the Vendor nor the Purchaser intends the transactions contemplated hereunder to be, or for any purpose to be characterized as, a loan from
the Purchaser to the Vendor. The Vendor waives any right to contest or otherwise assert that this Agreement is other than a true sale by the Vendor to the Purchaser under applicable law, which waiver shall be enforceable against the Vendor in any
bankruptcy or insolvency proceeding relating to the Vendor. If, notwithstanding the intention of the parties hereto, the sale by the Vendor of the Assigned Rights shall be characterized as a loan and not a sale, or such sale shall for any reason be
ineffective or unenforceable, then this Agreement shall be deemed to constitute a security agreement under the PPSA and applicable law. The Vendor consents to the Purchaser filing any PPSA financing statements that in the Purchaser’s
determination may be necessary to evidence the Purchaser’s ownership of the Assigned Rights. 
 (b) Solely as a precaution, in the event
a court of competent jurisdiction should hold for any reason that the sale, assignment, transfer, conveyance and delivery to the Purchaser of the Assigned Rights at the Closing is not a “true sale” at law and that the Purchaser only has a
security interest in the Assigned Rights, the Vendor hereby grants as continuing security for the due and timely payment and performance by the Vendor of all of its indebtedness, liabilities and obligations (whether direct, indirect, absolute,
contingent or otherwise) to the Purchaser arising pursuant to this Agreement or any other Closing Document, a security interest in the Assigned Rights, and this Agreement shall constitute a security agreement for purposes of the PPSA. In furtherance
of the foregoing, the Vendor hereby authorizes the Purchaser to authenticate in the name of the Vendor and file one or more PPSA financing statements (or similar documents) with respect to the Assigned Rights to evidence the granting of such
security interest, provided that the Purchaser shall provide the Vendor with a reasonable opportunity to review any such PPSA financing statements or similar documents prior to filing. For greater certainty, the Purchaser shall not file this
Agreement in connection with the filing of any such PPSA financing statements or similar documents. 
  

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	11.8	Amendments, Supplements, Waivers 

 This
Agreement may be amended or supplemented only by a written agreement signed by the Purchaser, the Vendor and the Parent. Any waiver of, or consent to depart from, the requirements of any provision of this Agreement shall be effective only if it is
in writing and signed by the party giving it, and only in the specific instance and for the specific purpose for which it has been given. No failure on the part of any party to exercise, and no delay in exercising, any right under this Agreement
shall operate as a waiver of such right. No single or partial exercise of any such right shall preclude any other or further exercise of such right or the exercise of any other right. 
  

	11.9	Severability 

 If any provision of this
Agreement is held to be invalid or unenforceable, the remaining provisions shall nevertheless be given full force and effect. 
  

	11.10	Governing Law 

 (a) This Agreement shall be
governed by and construed, interpreted and enforced in accordance with the laws of the State of New York, without giving effect to the principles of conflicts of law thereof except as set forth in Sections 5-1401 of the New York General Obligations
Law. 
 (b) Each party hereby irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of the State of New
York located in New York County, New York and the U.S. federal district courts in the Southern District of the State of New York. 
  

	11.11	Waiver of Jury Trial 

 Each party hereby
waives to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any claim, demand, action or cause of action directly or indirectly arising out of, under or in connection with this Agreement or any
transaction contemplated hereby, and each party hereby agrees and consents that any such claim, demand, action or cause of action shall be decided by court trial without a jury, and that either party hereto may file an original counterpart or a copy
of this Section 11.11 with any court as written evidence of the consent of the signatories hereto to the waiver of their right to trial by jury. Each party (a) certifies that no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other party hereto have been induced to enter into this Agreement by,
among other things, the mutual waivers and certifications in this Section 11.11. 
  

	11.12	Time 

 Time is of the essence of this
Agreement and each of its provisions. 
  

 - 34 - 

	11.13	Counterparts 

 This Agreement may be executed
in one or more counterparts, all of which when taken together shall be considered one and the same agreement. This Agreement may be delivered by either party by facsimile or by electronic delivery and, if so executed and delivered, shall be legally
valid and binding on the party executing in such manner. 
 SIGNING PAGE TO IMMEDIATELY FOLLOW THIS PAGE 
  

 - 35 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement. 
  

			
	NPS ALLELIX CORP.
		
	 by
	 	 
		 	Name:
		 	Title:
	
	 NPS PHARMACEUTICALS, INC.
 (solely for
purposes of Article 6, Article 9
 and Article 10)

		
	 by
	 	 
		 	Name:
		 	Title:
	
	 DRUG ROYALTY L.P. 3, by its
 General Partner, DRC
 MANAGEMENT LLC 3

		
	 by
	 	 
		 	Name: Behzad Khosrowshahi
		 	Title: Manager

 [Agreement of Purchase and Sale – Signature Page] 
  

 - 36 - 

 SCHEDULE 1.4 
 TABLE OF CONCORDANCE OF LICENSE AGREEMENT PROVISIONS 
 Part 1 – Defined Terms 

“Licensed Technology” has the meaning specified in the Distribution Agreement, as such definition is supplemented by the SPCs; 
 “NPS Know-How” means the Know-How (as such term is defined in the Distribution Agreement); 
 “NPS Trademarks” means the Licensor Trademarks (as such term is defined in the Distribution Agreement); 
 “Patents” means the Licensor Patents (as such term is defined in the Distribution Agreement), as such definition is supplemented by the SPCs;

 “Reports” means the Royalty Reports and the reports or notices under Sections 8.5.1, 8.6.2, 8.6.3, 8.6.4, 8.7.1, 15.9.1, 15.11, 19 and 20
of the Distribution Agreement; 
 “SPCs” means the supplementary protection certificates listed under the heading “SPC Summary” in
Schedule 4.7; 
 Part 2 – Table of Concordance 
  

			
	 Section of
License Agreement
	  	Corresponding Section of
Distribution Agreement
	 2.1
	  	2.1
	 2.11
	  	N/A
	 4.6
	  	N/A
	 7.2
	  	15.1
	 7.3
	  	N/A
	 7.5
	  	15.2
	 7.7
	  	15.10
	 7.8
	  	15.11
	 7.8.2
	  	15.11.2
	 7.9
	  	15.9.4
	 9.7.2, 9.7.3 and 9.8.1
 (definition of “Infringement
Payment”)
	  	8.6.2, 8.6.3
	 9.4
	  	N/A
	 16.1
	  	19.1
	 16.2
	  	19.2
	 16.5
	  	19.5
	 16.6
	  	19.6

 SCHEDULE 4.5 
 GAUTVIK AND ASAHI AGREEMENTS 
 [*] 

 SCHEDULE 4.7 
 PATENTS 
 [*] 

 SCHEDULE 4.7(A) 
 OPINIONS OF COUNSEL 
 [*] 

 SCHEDULE 4.8 
 LITIGATION 
 [*] 

 SCHEDULE 7.6(d) 
 FORM OF PRESS RELEASE 
 (attached)Distribution and License Agreement

 Exhibit 10.3 
 NOTE: CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT
AND REPLACED BY “[*]”. A COMPLETE COPY OF THIS DOCUMENT INCLUDING THE
CONFIDENTIAL INFORMATION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. 
 DISTRIBUTION AND LICENSE AGREEMENT 
 BY AND BETWEEN 
 NPS ALLELIX CORP. 
 NPS PHARMACEUTICALS, INC. 
 AND 
 NYCOMED GmbH 
 DATED 
 SEPTEMBER 24, 2007 

 Table of Contents 
  

					
	 	 	 	  	Page
	 ARTICLE 1
	 	 DEFINITIONS
	  	1
			
	 ARTICLE 2
	 	 MANAGEMENT OF COLLABORATIVE ACTIVITIES
	  	11
			
	 2.1
	 	 Management Committee
	  	11
			
	 2.2
	 	 Joint Development Committee
	  	13
			
	 2.3
	 	 Additional Committees
	  	14
			
	 2.4
	 	 Minutes of Committee Meetings
	  	15
			
	 2.5
	 	 Independent Action
	  	15
			
	 2.6
	 	 Compliance with Law
	  	15
			
	 ARTICLE 3
	 	 LICENSE GRANTS AND ASSIGNMENTS
	  	15
			
	 3.1
	 	 NPS Grants and Assignments
	  	15
			
	 3.2
	 	 Sublicenses
	  	16
			
	 3.3
	 	 Nycomed Grants
	  	16
			
	 3.4
	 	 NPS Retained Rights; Transfer of Rights
	  	16
			
	 3.5
	 	 Nycomed Right of First Negotiation
	  	16
			
	 3.6
	 	 Licenses under Existing Third Party Agreements
	  	17
			
	 ARTICLE 4
	 	 DEVELOPMENT
	  	18
			
	 4.1
	 	 Development Rights
	  	18
			
	 4.2
	 	 Development Responsibilities
	  	18
			
	 4.3
	 	 Development Efforts; Manner of Performance; Reports
	  	20
			
	 4.4
	 	 Right to Audit
	  	21
			
	 4.5
	 	 Regulatory Submissions and Regulatory Approvals
	  	21
			
	 ARTICLE 5
	 	 COMMERCIALIZATION
	  	23
			
	 5.1
	 	 Commercialization in the Territory
	  	23
			
	 5.2
	 	 Advertising and Promotional Materials
	  	24
			
	 5.3
	 	 Sales and Distribution
	  	24
			
	 5.4
	 	 Complaints
	  	24
			
	 5.5
	 	 Adverse Event Reporting Procedures
	  	24
			
	 5.6
	 	 Recalls, Market Withdrawals or Corrective Actions
	  	25
			
	 ARTICLE 6
	 	 MANUFACTURE AND SUPPLY
	  	25
			
	 6.1
	 	 General
	  	25
			
	 6.2
	 	 Manufacture and Supply for the Territory
	  	25
			
	 6.3
	 	 Transfer of Responsibility and Technology
	  	26

 Table of Contents 
  

					
	 	 	 	  	Page
	 6.4
	 	 Subsequent Information
	  	26
			
	 6.5
	 	 [*] Process
	  	26
			
	 6.6
	 	 Master Cell Bank and Working Cell Banks
	  	27
			
	 6.7
	 	 Other Ongoing Rights and Responsibilities
	  	27
			
	 ARTICLE 7
	 	 FINANCIAL PROVISIONS
	  	27
			
	 7.1
	 	 Signing Fee
	  	27
			
	 7.2
	 	 First Milestone Payment
	  	27
			
	 7.3
	 	 Milestone Payments
	  	28
			
	 7.4
	 	 Payment of Royalties on Net Sales
	  	29
			
	 7.5
	 	 Existing Third Party Agreement Payments
	  	30
			
	 7.6
	 	 Audits
	  	30
			
	 7.7
	 	 Tax Matters
	  	30
			
	 7.8
	 	 United States Dollars
	  	31
			
	 7.9
	 	 Currency Exchange
	  	31
			
	 7.10
	 	 Blocked Payments
	  	31
			
	 7.11
	 	 Late Payments
	  	31
			
	 7.12
	 	 Shared Development Costs
	  	31
			
	 ARTICLE 8
	 	 INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED MATTERS
	  	32
			
	 8.1
	 	 Ownership of Inventions
	  	32
			
	 8.2
	 	 Prosecution and Maintenance of Patent Rights
	  	32
			
	 8.3
	 	 Third Party Infringement
	  	34
			
	 8.4
	 	 Patent Invalidity Claim
	  	35
			
	 8.5
	 	 Claimed Infringement
	  	36
			
	 8.6
	 	 Patent Term Extensions
	  	36
			
	 8.7
	 	 Patent Marking
	  	36
			
	 8.8
	 	 Trademarks
	  	36
			
	 ARTICLE 9
	 	 CONFIDENTIALITY AND PUBLICITY
	  	38
			
	 9.1
	 	 Confidential Information
	  	38
			
	 9.2
	 	 Employee, Consultant and Advisor Obligations
	  	39
			
	 9.3
	 	 Publicity
	  	39
			
	 9.4
	 	 Publications
	  	39

  

 ii 

 Table of Contents 
  

					
	 	 	 	  	Page
	 ARTICLE 10
	 	 REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS; INDEMNIFICATION
	  	40
			
	 10.1
	 	 Exclusivity Covenant
	  	40
			
	 10.2
	 	 Mutual Representations and Warranties
	  	40
			
	 10.3
	 	 Additional NPS Representations and Warranties
	  	41
			
	 10.4
	 	 Existing Third Party Agreements
	  	42
			
	 10.5
	 	 Disclaimer of Warranties
	  	42
			
	 10.6
	 	 Indemnification
	  	42
			
	 10.7
	 	 Procedure for Indemnification
	  	43
			
	 10.8
	 	 Assumption of Defense
	  	44
			
	 ARTICLE 11
	 	 TERM AND TERMINATION
	  	44
			
	 11.1
	 	 Term
	  	44
			
	 11.2
	 	 Termination
	  	44
			
	 11.3
	 	 Effects of Termination
	  	45
			
	 11.4
	 	 Continuation of Agreement if NPS Becomes Insolvent
	  	49
			
	 11.5
	 	 License Grant Effective Upon Expiration of Term
	  	50
			
	 11.6
	 	 Survival
	  	50
			
	 ARTICLE 12
	 	 FINAL DECISION-MAKING; DISPUTE RESOLUTION
	  	50
			
	 12.1
	 	 Arbitration
	  	50
			
	 ARTICLE 13
	 	 MISCELLANEOUS
	  	51
			
	 13.1
	 	 Choice of Law
	  	51
			
	 13.2
	 	 Notices
	  	51
			
	 13.3
	 	 Severability
	  	52
			
	 13.4
	 	 Captions
	  	52
			
	 13.5
	 	 Integration
	  	52
			
	 13.6
	 	 Independent Contractors; No Agency
	  	52
			
	 13.7
	 	 Assignment; Successors
	  	53
			
	 13.8
	 	 Expenses
	  	53
			
	 13.9
	 	 Execution in Counterparts; Facsimile Signatures
	  	53
			
	 13.10
	 	 No Consequential or Punitive Damages
	  	53
			
	 13.11
	 	 Non-Solicitation
	  	53
			
	 13.12
	 	 Transfer of NPS Intellectual Property; NPS Allelix No Longer a Party
	  	53

  

 iii 

 DISTRIBUTION AND LICENSE AGREEMENT 
 This Distribution and License Agreement (this “Agreement”) is made and effective as of the 24th day of September, 2007 (the
“Effective Date”) by and between NPS Allelix Corp., a Canadian corporation (“NPS Allelix”), having offices at MaRS Centre, 101 College Street, South Tower, Suite 800, Toronto, ON MSG 1L8 Canada, NPS Pharmaceuticals,
Inc., a Delaware corporation (“NPS US”, and, together with NPS Allelix, collectively, “NPS”), having offices at Morris Corporate Center 1, 4th Floor, Building B, 300 Interpace Parkway, Parsippany, NJ 07054, and
Nycomed GmbH, a German corporation with company registration number Hrb Nr 701257 (“Nycomed”), having offices at Byk Gulden Str. 2, 78467 Konstanz. 
 INTRODUCTION 
 1. NPS Controls certain patents, know-how and other rights related to the Product;

 2. Nycomed has considerable knowledge and experience in developing, promoting and marketing pharmaceutical products throughout the
Territory; 
 3. NPS and Nycomed believe that a distribution and license arrangement regarding the Product in the Territory would be
desirable; and 
 4. On the terms and subject to the conditions set forth herein, NPS and Nycomed therefore desire to provide for the
development, manufacture and commercialization of Product as described herein. 
 NOW, THEREFORE, for and in consideration of the mutual
covenants contained herein, NPS and Nycomed, intending to be legally bound, hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 As used in this
Agreement, the following terms, whether used in the singular or plural, shall have the meanings set forth below: 
 1.1
“Additional Indication” shall mean any indication for Product other than the Primary Indication. 
 1.2
“Affiliate” shall mean with respect to any Party, any Person controlling, controlled by or under common control with such Party. For purposes of this Section 1.2, “control” shall mean (a) in the case of a Person
that is a corporate entity, direct or indirect ownership of fifty percent (50%) or more of the stock or shares having the right to vote (or such lesser percentage which is the maximum allowed to be owned by a foreign corporation in a particular
jurisdiction) for the election of directors of such Person and (b) in the case of a Person that is an entity, but is not a corporate entity, the possession, directly or indirectly, of the power to direct, or cause the direction of, the
management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  

 1 

 1.3 “API” shall mean the drug substance/active pharmaceutical ingredient of the
Compound. 
 1.4 “Calendar Quarter” shall mean for each Calendar Year, each of the three (3) month periods
ending March 31, June 30, September 30 and December 31; provided, however, that the first calendar quarter for the first Calendar Year shall extend from the Effective Date to the end of the first complete calendar
quarter thereafter. 
 1.5 “Calendar Year” shall mean, for the first calendar year, the period commencing on the
Effective Date and ending on December 31 of the calendar year during which the Effective Date occurs, and each successive period beginning on January 1 and ending twelve (12) consecutive calendar months later on December 31.

 1.6 “CIGIM” shall mean chemotherapy-induced gastrointestinal mucositis. 
 1.7 “Claims” shall mean all charges, complaints, actions, suits, proceedings, hearings, investigations, claims and demands.

 1.8 “CMO” shall mean a contract manufacturing organization. 
 1.9 “Commercialization” or “Commercialize” shall mean any and all activities directed to obtaining marketing,
pricing and reimbursement approvals, marketing, promoting, Detailing, distributing, importing, exporting, offering for sale or selling a product. Commercialization shall not include any activities related to Development or Manufacturing. 

1.10 “Compound” shall mean the compound known as teduglutide, as further described in Schedule 1.10, and any analogues,
fragments, derivatives, receptors and compositions thereof. 
 1.11 “Control” or “Controlled” shall
mean, with respect to any intellectual property right or other intangible property, the possession (whether by license or ownership, or by control over an Affiliate having possession by license or ownership) by a Party of the ability to grant to the
other Party access and/or a license or sublicense as provided herein without violating the terms of any agreement with any Third Party. 
 1.12 “Co-Owned Patent Rights” shall mean the NPS Patent Rights, to the extent that such NPS Patent Rights were solely owned by NPS prior to the assignment in Section 3.1(b) hereof. 
 1.13 “Country” shall mean any generally recognized sovereign entity. 
 1.14 “Cover”, “Covering” or “Covered” shall mean, with respect to Product or Compound, or with
respect to technology, that, in the absence of a license granted under a Valid Claim, the Manufacture, use, Commercialization, Development or importation of Product or the practice of such technology would infringe such Valid Claim. 
  

 2 

 1.15 “CPI” shall mean the Consumer Price Index – Urban Wage Earners Clerical
Workers, U.S. City Average, All Items, 1982-84 = 100, published by the United States Department of Labor, Bureau of Statistics (or its successor equivalent index). 
 1.16 “Development” or “Develop” shall mean non-clinical and clinical research and drug development activities associated with development of Product for Regulatory Approval as
a drug product, including without limitation toxicology, test method development and stability testing, process development, formulation development, delivery system development, quality assurance and quality control development, statistical
analysis, clinical studies (including pre- and post-approval studies and Investigator Sponsored Clinical Studies), regulatory affairs, and product approval and clinical study regulatory activities (excluding regulatory activities directed to
obtaining pricing and reimbursement approvals). 
 1.17 “Development Costs” shall mean costs incurred by the Parties
after the Effective Date and specifically attributable to Developing the Compound or a Product, and may include without limitation: 
 (a) the out-of-pocket costs and expenses incurred to the extent not covered by (b) through (d); 
 (b) the costs of internal scientific, medical, technical or managerial personnel engaged in such efforts, which costs shall be determined based on the applicable FTE Rate, unless another basis is otherwise agreed by the Parties in
writing; 
 (c) the costs and expenses of clinical supplies for such efforts, including without limitation,
(i) direct costs and expenses incurred to purchase and/or package comparator or combination drugs or devices, and (ii) direct costs and expenses of disposal of clinical samples; and 
 (d) the direct costs and expenses incurred in connection with manufacturing process development and validation, manufacturing
scale-up and improvements, stability testing and quality assurance/quality control development, and qualification and validation of Third Party contract manufacturers. 
 1.18 “Development Plan” shall mean the plan for the Development of the Compound or a Product for any Indication including, without limitation, the budget and nature, number and schedule of
Development activities. 
 1.19 “Device” shall mean the drug delivery device described in Schedule 1.19 hereto and
any future Improvements or replacements thereof. 
 1.20 “Diligent Efforts” shall mean, with respect to Product, the
carrying out of obligations in a diligent and sustained manner using efforts not less than the efforts a Party devotes to a product of similar market potential, profit potential or strategic value resulting from its own research efforts, but
excluding consideration of any obligation to the other Party under this Agreement. 
  

 3 

 1.21 “Drucker License Agreement” shall mean the License Agreement, dated
September 28, 1995, by and among 1149336 Ontario Inc., Daniel J. Drucker, M.D. and Allelix Biopharmaceuticals Inc. 
 1.22
“EMEA” shall mean the European Medicines Agency or any successor agency thereto. 
 1.23 “Equivalent
Product” shall mean any pharmaceutical product (other than any branded non-generic versions but Equivalent Product specifically includes any added-value generic versions) containing a glucagon-like peptide-2 (GLP-2) or any analog, homologue
(including, but not limited to, teduglutide), or derivative or fragment thereof, including compositions thereof. 
 1.24
“European Union” or “EU” shall mean the Countries of the European Union, as it is constituted as of the Effective Date and as it may be expanded from time to time. 
 1.25 “Executive Officers” shall mean the Chief Executive Officer of NPS (or a senior executive officer of NPS designated by
NPS’ Chief Executive Officer) and Nycomed’s Chief Executive Officer (or a senior executive officer of Nycomed designated by Nycomed’s Chief Executive Officer). 
 1.26 “Existing Third Party Agreements” shall mean the Drucker License Agreement, [*], the UTAUS License Agreement and the
Restoragen License Agreement. 
 1.27 “FDA” shall mean the United States Food and Drug Administration or any
successor agency thereto. 
 1.28 “Field” shall mean the treatment and diagnosis of all Indications in humans and
animals. 
 1.29 “First Commercial Sale” shall mean, with respect to Product in a Country, the first commercial sale
of Product in such Country. 
 1.30 “FTE” shall mean a full-time equivalent person year (consisting of a total of
1,750 hours) of work. 
 1.31 “FTE Rate” shall mean [*], increased or decreased by the percentage increase or
decrease in the CPI as of the then most recent December 31 over the level of the CPI on December 31, 2006. 
 1.32
“Future Partner” shall mean a Third Party to whom NPS grants rights to Commercialize or distribute Product in North America. 
 1.33 “GAAP” shall mean United States generally accepted accounting principles. 
 1.34
“Governmental Authority” shall mean any court, tribunal, arbitrator, agency, legislative body, commission, official or other instrumentality of (a) any government of any Country, (b) a federal, state, province, county,
city or other political subdivision thereof or (c) any supranational body. 
  

 4 

 1.35 “[*] Process” shall mean the process for manufacturing Compound currently
being Developed by NPS which, for the avoidance of doubt, is a different process than the secreted process. 
 1.36
“Indications” shall mean the Primary Indication and the Additional Indications. 
 1.37 “Investigator
Sponsored Clinical Study” shall mean a human clinical study of Product that is sponsored and conducted by a Third Party under an agreement with a Party pursuant to which such Party provides clinical supplies of Product and/or funding for
such clinical study. 
 1.38 “Joint Intellectual Property” shall mean Joint Know-How and Joint Patent Rights,
collectively. 
 1.39 “Joint Know-How” shall mean any Know-How that is developed or acquired jointly by the Parties
or their Affiliates or sublicensees in connection with their collaborative activities pursuant to this Agreement during the Term including Joint Inventions. 
 1.40 “Joint Patent Rights” shall mean Patent Rights that Cover Joint Inventions or Joint Know-How. 
 1.41 “Know-How” shall mean any information and materials, whether proprietary or not and whether patentable or not, including without limitation ideas, concepts, formulas, methods, procedures,
designs, compositions, plans, documents, data, inventions, discoveries, trade secrets, works of authorship, compounds and biological materials, solely to the extent such know-how is directly related to the research, Development, Manufacture or
Commercialization of Compound or Product in the Field. 
 1.42 “Losses” shall mean any and all damages (including all
incidental, consequential, statutory and treble damages), awards, deficiencies, settlement amounts, defaults, assessments, fines, dues, penalties, costs, fees, liabilities, obligations, taxes, liens, losses, lost profits and expenses (including
without limitation court costs, interest and reasonable fees of attorneys, accountants and other experts) incurred by or awarded to Third Parties and required to be paid to Third Parties with respect to a Claim by reason of any judgment, order,
decree, stipulation or injunction, or any settlement entered into in accordance with the provisions of this Agreement, together with all documented out-of-pocket costs and expenses incurred in complying with any judgments, orders, decrees,
stipulations and injunctions that arise from or relate to a Claim of a Third Party. 
 1.43 “Major EU Country” shall
mean the United Kingdom, Germany, France, Italy and Spain. 
 1.44 “Manufacturing” or “Manufacture”
shall mean activities directed to producing, manufacturing and processing Product. 
  

 5 

 1.45 “Master Cell Bank” means NPS’ master cell banks containing the host
cells (with the plasmid incorporated therein) used in the fermentation process for the production of recombinant glycine2-human glucagon-like peptide-2(ALX-600(Teduglutide)) as a secreted material in the fermentation culture broth and as a fusion
peptide for the inclusion bodies in the host cell. The Master Cell Bank for the secreted process is designated [*] and is used to generate the Working Cell Bank for such process. The Master Cell Bank for the [*] Process is designated [*] and
is used to generate the Working Cell Bank designated [*]. 
 1.46 “NDA” shall mean a new drug application or
supplemental new drug application or any amendments thereto submitted to the FDA in the United States. 
 1.47 “NEC”
means necrotizing enterocolitis. 
 1.48 “Net Sales” shall mean, with respect to Product, the gross invoiced
commercial sales of Product by Nycomed, its Affiliates and sublicensees to Third Parties in the Territory (and for the purposes of Section 4.5 only, sales of Product by NPS, its Affiliates or Future Partners, in Canada and/or Mexico, as
applicable), less the following deductions to the extent included in the gross invoiced sales price for Product or otherwise directly paid, allowed, accrued, or incurred by Nycomed, its Affiliates or sublicensees with respect to the sale of Product:

 (a) quantity or cash discounts, credits, retroactive price reductions, rebates, allowances and adjustments granted,
to the extent usual and customary in the pharmaceutical industry and consistent with Nycomed’s usual course of dealing for its products other than Product (including, without limitation, government mandated and managed healthcare negotiated
rebates); 
 (b) amounts repaid, credited or written off by reason of rejections, recalls, billing errors and returns;

 (c) sales, excise, turnover, inventory, value-added, and similar taxes assessed on the sale of Product (other than
income taxes of Nycomed, its Affiliates or sublicensees), and import and customs duties; and 
 (d) transportation,
importation, shipping insurance and other handling expenses. 
 Notwithstanding the foregoing, in any case where Product is sold or otherwise disposed of in
a transaction that is not an arm’s length sale of Product exclusively for cash that is separate from any sale or disposition of other products or of services, Net Sales shall mean the greatest of: 
 (x) the Net Sales amount for Product sold in such transaction determined as provided above, with any non-cash consideration attributable
to such transaction valued at fair market value; 
 (y) if there has been any arm’s length sale of Product separate from
any sale or disposition of other products or of services to a non-sublicensee Third Party, the Net Sales amount, determined as provided above, for the most contemporaneous such sale; or 
  

 6 

 (z) if there has been no such arm’s length sale, the fraction of the overall value
of such transaction reasonably attributed to Product sold in such transaction, with any non-cash consideration attributable to such transaction valued at fair market value. 
 For sake of clarity, sales by Nycomed, its Affiliates or sublicensees to distributors and wholesalers shall be considered sales to Third Parties.

 1.49 “North America” shall mean the United States, Mexico and Canada. 
 1.50 [*]. 
 1.51 “NPS
Intellectual Property” shall mean NPS Know-How and NPS Patent Rights. 
 1.52 “NPS Know-How” shall mean any
Know-How that is Controlled by NPS on the Effective Date, but shall not include Joint Know-How. 
 1.53 “NPS Patent
Rights” shall mean Patent Rights, to the extent that they (a) Cover NPS Know-How or are directly related to the Manufacture, use, Commercialization or Development of Compound or Product in the Field, and (b) are Controlled by NPS,
but shall not include Joint Patent Rights. 
 1.54 “NPS Royalty Term” shall mean the NPS Initial Royalty Term and the
NPS Secondary Royalty Term. 
 1.55 “NPS Initial Royalty Term” shall mean the period commencing on the Effective Date
and ending on the later of, on a Country-by-Country and Product-by-Product basis, (a) ten (10) years from First Commercial Sale of Product in such Country and (b) the expiration or termination of the last to expire Valid Claim of a
Patent Right listed on Schedule 1.55 Covering such Product in such Country. 
 1.56 “NPS Secondary Royalty Term”
shall mean the period commencing at the end of the NPS Initial Royalty Term, on a Country-by-Country and Product-by-Product basis, and ending twenty (20) years from First Commercial Sale of Product, on a Country-by-Country and
Product-by-Product basis. 
 1.57 “Nycomed Intellectual Property” shall mean Nycomed Know-How and Nycomed Patent
Rights. 
 1.58 “Nycomed Know-How” shall mean any Know-How that either (a) is Controlled by Nycomed on the
Effective Date or (b) comes within Nycomed’s Control during the Term, including Nycomed Sole Inventions, but shall not include Joint Know-How. 
 1.59 “Nycomed Patent Rights” shall mean Patent Rights, to the extent that they (a) Cover Nycomed Know-How or are directly related to the Manufacture, use, Commercialization or Development
of Compound or Product in the Field, and (b) are Controlled by Nycomed, but shall not include Joint Patent Rights. 
  

 7 

 1.60 “Nycomed Royalty Term” shall mean the Nycomed Initial Royalty Term and the
Nycomed Secondary Royalty Term. 
 1.61 “Nycomed Initial Royalty Term” shall mean the period commencing on the
Effective Date and ending, on the later of, on a Country-by-Country and Product-by-Product basis, (a) ten (10) years from First Commercial Sale of such Product in such Country on a Country-by-Country and Product-by-Product basis and
(b) the expiration or termination of the last to expire Valid Claim of a Patent Right Covering such Product in such Country. 
 1.62 “Nycomed Secondary Royalty Term” shall mean the period commencing at the end of the Nycomed Initial Royalty Term, on a Country-by-Country and Product-by-Product basis, and ending twenty (20) years from
First Commercial Sale of Product, on a Country-by-Country and Product-by-Product basis. 
 1.63 “Ongoing Studies”
shall mean the following clinical studies: (a) CL0600-004 entitled “A Study of the Efficacy of Teduglutide in Subjects with Parenteral Nutrition-Dependent Short Bowel Syndrome”, (b) CL0600-005 entitled “A Study of the
Efficacy of Teduglutide in Subjects with Parenteral Nutrition-Dependent Short Bowel Syndrome Who Completed Protocol CL0600-004”, and (c) CL0600-017 entitled “Pharmacokinetics of 20mg Teduglutide in Subjects with Moderately Impaired
Hepatic Function Compared to Healthy Subjects with Normal Hepatic Function”. 
 1.64 “Parties” shall mean NPS
and Nycomed. 
 1.65 “Party” shall mean either NPS or Nycomed. 
 1.66 “Patent Rights” shall mean patents and patent applications and all substitutions, divisions, continuations,
continuations-in-part, any patent issued with respect to any such patent applications, any reissue, reexamination, renewal or extension (including any supplemental protection certificate) of any such patent, and any confirmation patent or
registration patent or patent of addition based on any such patent, and all counterparts thereof in any Country. 
 1.67
“Person” shall mean any natural person, corporation, firm, business trust, joint venture, association, organization, company, partnership or other business entity, or any government, or any agency or political subdivisions thereof.

 1.68 “Phase III Clinical Study” shall mean a clinical study of Product in human subjects to confirm with
statistical significance the efficacy and safety of Product performed to obtain Regulatory Approval for Product in any Country, which shall be deemed commenced when the first patient in such study has received his or her initial dose of Product.

 1.69 “Phase IV Clinical Study” shall mean a clinical study initiated after Product has been granted Regulatory
Approval in any Country, and which is aimed at strengthening the clinical evidence for Product to be used in the Commercialization of Product. 
 1.70 “Primary Indication” shall mean SBS. 
  

 8 

 1.71 “Product” shall mean any pharmaceutical formulation, dosing and
administration form containing the Compound as an active ingredient. 
 1.72 “Regulatory Approval” shall mean, with
respect to a particular Indication for Product, any approval (including price approvals), registration, license or authorization from any Governmental Authority required for the Manufacture, Development, Commercialization, distribution, sale,
storage or transport of Product for such Indication in any Country of the Territory, and shall include, without limitation, an approval, registration, license or authorization granted in connection with any Regulatory Approval Application.

 1.73 “Regulatory Approval Application” shall mean, with respect to a particular Indication for Product, the
submission to the relevant Governmental Authority of an appropriate application seeking any Regulatory Approval, and shall include, without limitation, a marketing authorization application, supplementary application or variation thereof, NDA or any
equivalent applications in any Country of the Territory. 
 1.74 “Regulatory Authority” shall mean any federal,
national, multinational, state, provincial or local regulatory agency, department, bureau or other governmental entity with authority over the marketing and sale of a pharmaceutical product in a Country, including without limitation FDA in the
United States and EMEA in the EU. 
 1.75 “Restoragen License Agreement” shall mean the Exclusive License Agreement,
dated November 21, 2002, by and between Restoragen, Inc. and NPS Pharmaceuticals, Inc. 
 1.76 “SBS” shall mean
short bowel syndrome. 
 1.77 “SBS Clinical Supply Cost” shall mean, with respect to Product or the Device, as
applicable, for Development for the Primary Indication, [*]. 
 1.78 “Successful Proof of Concept Study” shall mean
proof of efficacy in a particular Indication in the form of a clinical study that generates, confirms or otherwise provides an adequate benefit-risk for Product through statistically meaningful endpoints, which may be derived from one or more doses
in accordance with the statistical analysis plan described in a Development Plan and which is used as the basis for a decision to move forward with a Regulatory Approval strategy for an Indication or a label change for a previous Indication for
Product. 
 1.79 “Territory” shall mean the entire world and all Countries, territories and possessions therein,
except for North America. 
 1.80 “Third Party” shall mean any Person other than a Party or any of its Affiliates.

 1.81 “United States” shall mean the United States of America and its territories and possessions. 
 1.82 “UTAUS License Agreement” shall mean the Non-Exclusive Patent License Agreement, UTAUS Agreement No. 02-073, dated
May 15, 2004, by and between the Board of Regents of the University of Texas System and NPS Allelix Corp. 
  

 9 

 1.83 “Validation Batch” shall mean any one of each of three (3) consecutive
batches of API or dosage form which conform to the critical parameters described in the process and which are Manufactured according to the Manufacturing process. 
 1.84 “Valid Claim” shall mean, with respect to any Country, a Claim of an issued and unexpired patent or a Claim included in a pending patent application within the NPS Intellectual Property,
Nycomed Intellectual Property or Joint Intellectual Property in such Country Covering the Compound or Product which has not been held unenforceable, unpatentable or invalid by a decision of a court or other Governmental Authority of a competent
jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue, disclaimer or otherwise. 
 1.85 “Working Cell Banks” means NPS’ working cell banks containing the host cells (with the plasmid incorporated therein)
used in the fermentation process for the production of recombinant glycine2-human glucagon-like peptide-2(ALX-0600(Teduglutide)) as a secreted material in the fermentation culture broth and as a fusion peptide for the inclusion bodies in the host
cell. The Working Cell Banks for the secreted process are designated [*] and are generated from the Master Cell Bank for such process. The Working Cell Bank for the [*] Process is designated [*] and is generated from the Master Cell Bank designated
[*]. 
 1.86 Additional Definitions. Each of the following definitions is set forth in the Section of this
Agreement indicated below: 
  

			
	 Definition
	  	Section
	 1974 Convention
	  	13.1
	 Active Party
	  	4.2(g)
	 Additional Committees
	  	2.3
	 Agreement
	  	Preamble
	 ATCC
	  	6.6
	 Breaching Party
	  	11.2(c)
	 [*]
	  	6.6
	 CIGIM Proposal
	  	4.2(e)
	 Code
	  	11.3(c)
	 Competing Product
	  	10.1
	 Confidential Information
	  	9.1
	 Controlling Party
	  	6.4
	 Developing Party
	  	6.5(b)
	 Effective Date
	  	Preamble
	 Improvement
	  	8.1(c)
	 IND
	  	4.2(e)
	 Indemnified Party
	  	10.7(a)
	 Indemnifying Party
	  	10.7(a)
	 Initial Development Plan
	  	4.2(c)
	 Initial Enforcement Rights Party
	  	8.3(c)
	 Invalidity Claim
	  	8.4

  

 10 

			
	 Definition
	  	Section
	 Joint Development Committee
	  	2.2(a)
	 Joint Inventions
	  	8.1(b)
	 Joint Development Plans
	  	2.2(b)(v)
	 Litigation Condition
	  	10.7(b)
	 Management Committee
	  	2.1(a)
	 Milestone Data
	  	4.5(b)(i)
	 Negotiation Period
	  	3.5
	 Non-Breaching Party
	  	11.2(c)
	 NPS
	  	Preamble
	 NPS Allelix
	  	Preamble
	 NPS US
	  	Preamble
	 NPS Sole Inventions
	  	8.1(a)
	 Nycomed
	  	Preamble
	 Nycomed Offer
	  	3.5
	 Nycomed Royalty Term
	  	4.5(b)(i)
	 Nycomed Sole Inventions
	  	8.1(a)
	 Offer Period
	  	3.5
	 Passive Party
	  	4.2(g)
	 Primary Indication Announcement
	  	4.5(b)(i)
	 Product Trademarks
	  	8.8(a)
	 Promotional Materials
	  	5.2(a)
	 Product Trademark Infringement Claim
	  	8.8(e)(i)
	 Secondary Enforcement Rights Party
	  	8.3(c)
	 Severed Clause
	  	13.3
	 Shared Development Costs
	  	7.12(a)
	 Sole Inventions
	  	8.1(a)
	 Term
	  	11.1
	 Termination Notice
	  	7.2
	 Termination Period
	  	7.2
	 Third Party Claim
	  	10.7(a)
	 Trademark Infringement Notice
	  	8.8(e)(ii)

 ARTICLE 2 
 MANAGEMENT OF COLLABORATIVE ACTIVITIES 
 2.1 Management Committee. 
 (a) Composition and Responsibilities. The management committee (the “Management Committee”) shall consist
of two (2) members, one of which shall be an Executive Officer of NPS and one of which shall be an Executive Officer of Nycomed. Upon reasonable prior written notice to the other Party, a Party may designate a substitute to temporarily attend
and perform the functions of such Party’s designee at any meeting of the Management Committee. NPS and Nycomed each may, on advance written notice to the other 

  

 11 

 
Party, invite non-member representatives of such Party to attend meetings of the Management Committee. The Management Committee shall perform the following
functions: 
 (i) Manage and oversee the Development and Commercialization of each Indication for Product in the
Territory pursuant to the terms of this Agreement; 
 (ii) Review and approve the Development Plan for any Indications
of Product in the Territory and any material amendments to such Development Plan; 
 (iii) Approve any Development Plan
and budget for the Primary Indication or any Additional Indication for both the Territory and North America where the Parties mutually agree to share Development Costs; 
 (iv) Review and approve the Promotional Materials; 
 (v) Review and approve the progress of the other committees; 
 (vi) In accordance with the procedures established in Section 2.1(c) resolve disputes, disagreements and deadlocks unresolved
by the other committees; and 
 (vii) Have such other responsibilities as may be assigned to the Management Committee
pursuant to this Agreement or as may be mutually agreed upon by the Parties from time to time. 
 (b) Meetings. The
Management Committee shall meet in person at least once during every Calendar Year, and more frequently as NPS and Nycomed deem appropriate or as required to resolve disputes, disagreements or deadlocks in the other committees, on such dates, and at
such places and times, as the Parties shall agree; provided that the Parties shall endeavor to have the first meeting of the Management Committee within thirty (30) days after the Effective Date. The Management Committee shall arrange to meet
in person or convene otherwise to assess and approve any Development Plan submitted to the Management Committee in each Calendar Year so that such plans will be reviewed and approved within thirty (30) days following submission to the
Management Committee. To the extent any such Development Plan is not approved and needs to be reformulated by the Joint Development Committee, such plans shall be reviewed by the Management Committee as soon as reasonably practicable after
resubmission of same. Meetings of the Management Committee that are held in person shall alternate between offices of NPS and Nycomed, or such other place as such Parties may agree. The members of the Management Committee also may convene or be
polled or consulted from time to time by means of telecommunications, video conferences, electronic mail or correspondence, as deemed necessary or appropriate. 
 (c) Decision-Making. The Management Committee may make decisions with respect to any subject matter that is subject to the
Management Committee’s decision-making authority and functions as set forth in Section 2.1(a). With respect to any issue relating to the Development or Commercialization of Product, if the Executive Officers cannot resolve such issue after
good faith negotiations within ten (10) business days after the matter has been brought to the Management Committee’s attention, then such matter shall be decided by the Executive Officer of Nycomed; provided that, to the extent such issue
relates to a Development 

  

 12 

 
Plan for both the Territory and North America where the Parties mutually agree to share Development Costs, any such decision may not change or otherwise
affect in any material respect the key parameters of such Development Plan, including, without limitation, the resources to be provided by NPS, the expenditures to be incurred by NPS and the design and expected outcomes to achieve regulatory
approval in North America. 
 2.2 Joint Development Committee. 
 (a) Establishment and Composition. Within thirty (30) days after the Effective Date, the Parties shall establish a joint
development committee (the “Joint Development Committee”), and NPS and Nycomed shall designate an equal number of representatives, up to a maximum total of six (6) members on such Joint Development Committee. Each of NPS and
Nycomed may replace any or all of its representatives on the Joint Development Committee at any time upon written notice to the other Party. Such representatives shall include individuals who have clinical trial and regulatory experience and
expertise in pharmaceutical drug development. A Party may designate a substitute to temporarily attend and perform the functions of such Party’s designee at any meeting of the Joint Development Committee. NPS and Nycomed each may, on advance
written notice to the other Party, invite non-member representatives of such Party to attend meetings of the Joint Development Committee. The Joint Development Committee shall be chaired by a representative appointed by Nycomed. The chairperson
shall appoint a secretary of the Joint Development Committee. 
 (b) Responsibilities. The Joint Development Committee
shall perform the following functions: 
 (i) Prepare and implement the Development Plans, including the budget, in the
Territory for each Indication; 
 (ii) As early as necessary in each year beginning with the first full Calendar Year
after the Effective Date, update and amend the Initial Development Plan and prepare the Development Plans for the Primary Indication and for any Additional Indications in the Territory for the following Calendar Year so that it can submit such
proposed Development Plans to the Management Committee no later than September 30 of such year for review and approval; 
 (iii) Prepare the Development strategy and develop protocols for clinical studies for Indications for Commercialization; 
 (iv) Review and recommend to the Management Committee any material amendments or modifications to the Development Plans; 
 (v) Prepare any Development Plans for the Primary Indication or any Additional Indication for both the Territory and North America
where the Parties mutually agree to share Development Costs, including any Development Plans relating to the [*] Process (the “Joint Development Plans”); 
 (vi) Coordinate use of Product Trademarks on a Country-by-Country and global basis; 
  

 13 

 (vii) Coordinate and monitor regulatory strategy and activities for Product; and

 (viii) Have such other responsibilities as may be assigned to the Joint Development Committee pursuant to this
Agreement or as may be mutually agreed upon by the Parties from time to time. 
 (c) Meetings. The Joint Development
Committee shall meet in person at least two (2) times during every Calendar Quarter, and more frequently as NPS and Nycomed deem appropriate or as reasonably requested by either such Party, on such dates, and at such places and times, as such
Parties shall agree; provided that the Parties shall endeavor to have the first meeting of the Joint Development Committee within thirty (30) days after the establishment of the Joint Development Committee. Meetings of the Joint Development
Committee that are held in person shall alternate between the offices of NPS and Nycomed, or such other place as the Parties may agree. The members of the Joint Development Committee also may convene or be polled or consulted from time to time by
means of telecommunications, video conferences, electronic mail or correspondence, as deemed necessary or appropriate. 
 (d) Decision-Making. The Joint Development Committee may make decisions with respect to any subject matter that is subject to the Joint Development Committee’s decision-making authority and functions as set forth in
Section 2.2(b). All decisions of the Joint Development Committee shall be made by unanimous vote or written consent, with NPS and Nycomed each having collectively, among its respective members, one vote in all decisions. If the Joint
Development Committee cannot reach consensus within ten (10) business days after it has first met and attempted to reach such consensus, then such issue shall be decided by Nycomed’s representatives in the Joint Development Committee;
provided, however, that any issue relating to material changes in budgets, Development Plans or other material matters shall be referred on the eleventh (11th) business day to the Management Committee for resolution. 
 2.3 Additional Committees. The Parties may mutually agree to establish additional committees (“Additional Committees”) at any
time after the Effective Date, including but not limited to (a) a joint commercialization committee to oversee the Commercialization of Product in the Territory and (b) a joint manufacturing committee to develop strategies for dosage forms
and strength, presentation and commercial sourcing of Product and to identify and implement, whether through Nycomed or a Third Party, any additional Development studies with respect to Product that may be required to support any filings for
Regulatory Approval in the Territory. Each Party shall designate an equal number of representatives, up to a maximum to be agreed by the Parties. Such representatives shall include individuals who have experience and expertise in pharmaceutical
product marketing, sales and regulatory matters. All such Additional Committees may make decisions with respect to any subject matter that is subject to their decision-making authority and functions as mutually agreed between the Parties. All
decisions of any Additional Committees shall be made by unanimous vote or written consent, with NPS and Nycomed each having collectively, among its respective members, one vote in all decisions. If any Additional Committee cannot reach consensus
within ten (10) business days after it has first met and attempted to reach such consensus, such issue shall be decided by Nycomed’s representatives in any Additional Committee; provided, however, that any issue relating to material
changes in budgets, commercialization or manufacturing plans or other material matters shall be referred on the eleventh (11th) business day to the Management Committee for resolution. 
  

 14 

 2.4 Minutes of Committee Meetings. Definitive minutes of all committee meetings shall be finalized
by Nycomed’s representatives in the applicable Committee no later than thirty (30) days after the meeting to which the minutes pertain as follows: 
 (a) Distribution of Minutes. Within ten (10) days after a committee meeting, the secretary of such committee shall prepare and
distribute to all members of such committee draft minutes of the meeting. Such minutes shall provide a list of any issues already resolved and yet to be resolved, either within such committee or through the relevant resolution process. 

(b) Review of Minutes. The Party members of each committee shall have ten (10) days after receiving such draft minutes to
collect comments thereon and provide them to the secretary of such committee. If no comments are provided the minutes shall deemed to be approved by both Parties. 
 (c) Discussion of Comments. Upon the expiration of such second ten (10) day period, the Parties shall have an additional ten
(10) days to discuss each other’s comments and finalize the minutes. The secretary and chairperson(s) of such committee shall each sign and date the final minutes. The signature of such chairperson(s) and secretary upon the final minutes
shall indicate each Party’s assent to the minutes. 
 (d) Expenses. Each Party shall be responsible for all travel
and related costs and expenses for its members and other representatives to attend meetings of, and otherwise participate on, a committee. 
 2.5 Independent Action. Subject to the terms of this Agreement, the activities and resources of each Party shall be managed by such Party, acting independently and in its individual capacity. 
 2.6 Compliance with Law. Each Party hereby covenants and agrees to comply in all material respects with all laws and regulations applicable to its
activities in connection with the Development, Manufacture and Commercialization of Product. 
 ARTICLE 3 
 LICENSE GRANTS AND ASSIGNMENTS 
 3.1
NPS Grants and Assignments. 
 (a) Exclusive License to Develop and Commercialize. Upon the terms and subject to
the conditions of this Agreement and the Existing Third Party Agreements, NPS hereby grants to Nycomed an exclusive, royalty-bearing right and license, with the right to grant sublicenses solely as set forth in Section 3.2, under the NPS
Intellectual Property and NPS’ rights in the Joint Intellectual Property to the extent necessary or useful to Develop and Commercialize the Compound and Product in the Field in the Territory. 
  

 15 

 (b) Assignment of Co-Owned Patent Rights. Upon the terms and subject to the
conditions of this Agreement, NPS hereby assigns to Nycomed, and Nycomed accepts from NPS, an undivided fifty percent (50%) interest in the Co-Owned Patent Rights, solely to the extent and for the purpose of prosecuting and maintaining such
Co-Owned Patent Rights in the EU during the Term. Upon Nycomed’s request, NPS shall execute an assignment of such Co-Owned Patent Rights for the purpose of filing such assignment with the relevant patent offices. 
 (c) Manufacturing License. Upon the terms and subject to the conditions of this Agreement and the Existing Third Party Agreements,
NPS hereby grants to Nycomed a co-exclusive right and license, with the right to grant sublicenses solely as set forth in Section 3.2, under the NPS Intellectual Property and NPS’ rights in the Joint Intellectual Property to the extent
necessary or useful to Manufacture the Compound and Product in the Field in the Territory for Development and Commercialization by Nycomed in the Territory. 
 3.2 Sublicenses. Under the rights granted in Section 3.1, Nycomed shall (i) be entitled to sublicense to its Affiliates, and (ii) subject to the following sentence, be entitled to grant
sublicenses to Third Parties, solely for purposes relating to the Development, Manufacture or Commercialization of Compound or Product in the Field in the Territory in accordance with this Agreement. To the extent Nycomed sublicenses Development and
Commercialization rights to a country of the European Union, such sublicense shall be subject to NPS consent, which shall not be unreasonably withheld. Nycomed shall ensure that each of its Affiliates and permitted sublicensees or subcontractors
accepts and complies with all of the terms and conditions of this Agreement as if such Affiliates or permitted sublicensees or subcontractors were a party to this Agreement and Nycomed shall guarantee its Affiliates’ and permitted
sublicensees’ or subcontractors’ performance under this Agreement. 
 3.3 Nycomed Grants. 
 (a) License to Manufacture and Develop. Upon the terms and subject to the conditions of this Agreement, Nycomed hereby grants to
NPS a co-exclusive, non-royalty-bearing right and license, with the right to grant sublicenses to its Affiliates, under the Nycomed Intellectual Property, the Co-Owned Patent Rights and Nycomed’s rights in the Joint Intellectual Property, to
Manufacture and Develop the Compound or Product in the Field. 
 (b) Grant-Back License to Commercialize. Upon the
terms and subject to the conditions of this Agreement, Nycomed hereby grants to NPS a co-exclusive, non-royalty-bearing right and license, with the right to grant sublicenses, under the Nycomed Intellectual Property, the Co-Owned Patent Rights and
Nycomed’s rights in the Joint Intellectual Property, to Commercialize Compound or Product in the Field outside the Territory. 
 3.4
NPS Retained Rights; Transfer of Rights. Any rights of NPS not expressly granted to Nycomed under the provisions of this Agreement shall be retained by NPS. 
 3.5 Nycomed Right of First Negotiation. NPS shall have the right to license its rights in the Product outside the Territory to a Future Partner. If NPS decides to license such rights, NPS shall first offer such
license to Nycomed by delivering a written notice to Nycomed of its intent to license such rights. Nycomed shall have [*] from its receipt of such notice (the 

  

 16 

 
“Offer Period”) to submit a written offer (the “Nycomed Offer”) to NPS for such license rights, setting forth the material
terms and conditions of the proposed license. If Nycomed submits the Nycomed Offer within the Offer Period, NPS shall have [*] to evaluate the Nycomed Offer and to provide written notice to Nycomed of its acceptance or rejection of the Nycomed
Offer. NPS shall consider the Nycomed Offer in good faith. If NPS accepts the Nycomed Offer, the Parties shall negotiate in good faith to enter into a definitive license agreement within [*] from the date of acceptance (the “Negotiation
Period”). If (a) the Parties have not entered into a definitive license agreement upon the expiration of the Negotiation Period, (b) NPS rejects the Nycomed Offer or (c) Nycomed does not submit the Nycomed Offer within the
Offer Period, then NPS shall have [*] from the end of the Negotiation Period to consummate an agreement with a potential Future Partner on terms at least as favorable to NPS as the Nycomed Offer. Upon consummation of such agreement with a Future
Partner and subject to any confidentiality obligations relating thereto, if Nycomed requests, NPS shall disclose the material terms of such agreement to Nycomed (or, in the case of such confidentiality obligations, to an independent auditor selected
by Nycomed and reasonably acceptable to NPS). 
 3.6 Licenses under Existing Third Party Agreements. 
 (a) Stand-By Licenses. At any time during the Term after the Termination Period, Nycomed may enter into stand-by licenses
with any Third Parties to the Existing Third Party Agreements to ensure the survival or substitution of licenses or sublicenses granted to Nycomed under this Agreement. If Nycomed decides to seek to obtain a stand-by license from any such Third
Party to an Existing Third Party Agreement, Nycomed shall notify NPS of such decision and shall provide NPS with regular updates regarding such ongoing negotiations. NPS agrees to provide reasonable assistance to Nycomed in obtaining such stand-by
licenses and any amendments to the Existing Third Party Agreements required to obtain such stand-by licenses; provided however, that (i) any stand-by license shall provide that such license is effective only upon the termination of the license
granted to NPS pursuant to the applicable Existing Third Party Agreement and (ii) NPS shall have no obligation to agree to any amendments to an Existing Third Party Agreement that are substantially less favorable to NPS than the terms existing
on the Effective Date. Nycomed shall be solely responsible for making any and all payments owed to Third Parties under such stand-by licenses (other than, for the avoidance of doubt, the existing licenses to NPS under the Existing Third Party
Agreements, except as otherwise specified in this Agreement). For clarity, any stand-by licenses obtained pursuant to this Section 3.6(a) shall not be subject to the terms of Section 7.5(b). 
 (b) Step-In Right. Subject to the provisions of the Existing Third Party Agreements, if NPS fails to take any action under an
Existing Third Party Agreement that would be reasonably likely to result in an event of default and subsequent termination of the licenses under such Existing Third Party Agreement, such as a failure to make payments when due, then Nycomed may, in
its discretion, provide NPS with written notice of its intent to take such action in the place of NPS. In any event, NPS shall promptly inform Nycomed of any such failure to take action and shall request that each Third Party to an Existing Third
Party Agreement send a copy of any notice of material breach or other similar notice required to be sent under such Existing Third Party Agreement simultaneously to NPS and Nycomed upon any such occurrence. If NPS fails to take such action within
ten (10) days (or such shorter period if necessary to prevent an event of default) after receipt of such notice, then Nycomed shall have 

  

 17 

 
the right to take such action that it believes is reasonably required to prevent such event of default and termination under such Existing Third Party
Agreement. Any payments made in connection with an Existing Third Party Agreement by Nycomed on behalf of NPS pursuant to this Section 3.6 may be offset against any payments owed by Nycomed to NPS under Sections 7.2 and 7.4(a) hereof. For
clarity, the terms of this Section 3.6(b) shall not in any way limit NPS’ obligations under Section 10.4. 
 ARTICLE 4 

 DEVELOPMENT 
 4.1
Development Rights. Either Party shall have the right to Develop the Compound and Product at its discretion, subject to the rights and obligations set forth in this Article 4. 
 4.2 Development Responsibilities. 
 (a) Ongoing Studies for the Primary Indication. NPS shall be responsible for completion, at its sole expense, of the Ongoing Studies. If required to obtain Regulatory Approval in the Territory, Nycomed shall be
responsible, at its sole expense, for undertaking an additional Phase III Clinical Study for the Primary Indication; provided, however, that to the extent Nycomed conducts any such additional Phase III Clinical Study for the Primary Indication and
such data is also required to obtain regulatory approval or approval for label expansion of Product in the United States, then NPS may elect to utilize such data for such purpose and in such case shall reimburse [*] of Nycomed’s expenses for
such additional Phase III Clinical Study. 
 (b) Additional Indications. At any time after the Effective Date, if
either Party desires to Develop an Additional Indication, such Party shall submit a proposal for such Additional Indication to the Joint Development Committee for its review and subsequent approval by the Management Committee. Such proposal shall
include, at a minimum, (A) any data and other information supporting the rationale for Developing each Additional Indication from a scientific, regulatory and Commercial standpoint, (B) a reasonably detailed outline of the major
Developmental activities for such Additional Indication, and (C) an estimate of the timeframe for and cost of such Development. In the event that the Management Committee does not approve any NPS suggestion for the Development of any Additional
Indication, NPS or any Future Partner of NPS shall have the right to Develop, at its sole expense, the Compound for such Additional Indication for North America. Notwithstanding the foregoing, if the Joint Development Committee decides to Develop
any Indication for Product for the Territory, NPS or any Future Partner of NPS shall not be obligated to Develop such Indication (other than SBS to the extent provided in Section 4.2(a)) for North America. 
 (c) Initial Development Plan; Annual Review. The initial Development Plan for the Primary Indication in the Territory shall be
approved by the Joint Development Committee by February 15, 2008 and attached to this Agreement as Schedule 4.2(c) (the “Initial Development Plan”). The Joint Development Committee shall review any Development Plans no
less frequently than annually and shall develop detailed and specific Development updates for each Calendar Year until the completion of the Product Development activities covered by any Development Plans. The Joint Development Committee shall
submit all such updates to the 

  

 18 

 
Management Committee for review and approval no later than September 30 of the prior Calendar Year. The Joint Development Committee may also develop and
submit to the Management Committee from time to time other proposed modifications to any Development Plans. The Management Committee shall review such proposed modifications presented by the Joint Development Committee and may approve such proposed
modifications and/or any other proposed modifications that the Management Committee may consider from time to time in its discretion and, upon such approval by the Management Committee, any Development Plans shall be amended accordingly. 

(d) Joint Development Plans. If the Parties agree to jointly Develop any Indications on a global basis, the Parties shall
consider the specific sales potential and regulatory requirements on an Indication-by-Indication and Country-by-Country basis in designing any studies and in selecting the primary investigators, the key opinion leader and the trial centers used to
Develop such Indication in such Country; provided that any such Joint Development Plans may not adversely affect the commercial potential of Product outside the Territory. Each Party shall be responsible for fifty percent (50%) of all costs and
expenses associated with such joint Development of any Indication. If Nycomed desires to change any Joint Development Plan previously agreed by the Parties and NPS does not agree to such change, then NPS may elect not to participate in such Joint
Development Plan and shall not be obligated to pay any costs or expenses associated with such Joint Development Plan; provided, however, that any such changes to a Joint Development Plan may not adversely affect the commercial potential of Product
outside the Territory. In the event of such an election not to participate by NPS, NPS may subsequently opt-in to such Development Plan in accordance with Section 4.2(g). 
 (e) Development of CIGIM. Notwithstanding anything herein to the contrary, if NPS desires to conduct clinical Development of the
Compound for CIGIM prior to having a meeting with the FDA regarding an Investigational New Drug (an “IND”) application for clinical studies for CIGIM to the FDA, NPS shall submit a proposed clinical plan (the “CIGIM
Proposal”) to Nycomed for its review. Such CIGIM Proposal shall include, at a minimum, (A) any data and other information supporting the rationale for Developing CIGIM from a scientific, regulatory and Commercial standpoint, (B) a
reasonably detailed outline of the major clinical Developmental activities for CIGIM, and (C) an estimate of the timeframe for and cost of such clinical Development. Nycomed shall have [*] from its receipt of the CIGIM Proposal to evaluate the
CIGIM Proposal and shall provide written notice to NPS of its approval or disapproval of the CIGIM Proposal within such [*] period. Nycomed shall consider the CIGIM Proposal in good faith. During such period, NPS shall use commercially reasonable
efforts to respond in a timely manner to Nycomed’s reasonable requests for further information regarding the CIGIM Proposal. NPS shall consider Nycomed’s comments to the CIGIM Proposal in good faith and shall take into consideration the
potential results of any clinical studies conducted for CIGIM on the approvals of Product for other Indications. If Nycomed does not give written notice of its approval or disapproval to NPS within the [*] period, then Nycomed shall be deemed to
have approved of the CIGIM Proposal. Notwithstanding the foregoing, NPS agrees not to perform any clinical studies in humans prior to having an effective IND for clinical studies pursuant to 21 CFR 312.40(b). For the avoidance of doubt, after an IND
for clinical studies becomes effective, Nycomed shall no longer have a right of approval as set forth in this Section 4.2(e). 
  

 19 

 (f) Phase IV Clinical Studies. Nycomed shall be responsible for conducting any
Phase IV Clinical Studies in the Territory and shall be responsible for all costs related to such Phase IV Clinical Studies. NPS shall be responsible for conducting any Phase IV Clinical Studies outside the Territory and shall be responsible for all
costs related to such Phase IV Clinical Studies. 
 (g) Buy-In Rights for Clinical Studies. In the event that a Party
(the “Active Party”) is conducting or has completed Phase III Clinical Studies for any Additional Indication without the sharing of costs from the other Party (the “Passive Party”), the Passive Party shall be
offered the rights to utilize the results from such studies for such Additional Indication in the Passive Party’s territory by reimbursing the Active Party an amount equal to [*] of the Active Party’s costs incurred after the Effective
Date for all such studies conducted by the Active Party after the Effective Date for such Additional Indication plus interest on such amount equal to an annual compound rate of [*] of such amount beginning on the date the Active Party began
incurring costs for such studies up to the date of payment. The Active Party shall submit such offer promptly after the publishing of data by the Active Party from such Phase III Clinical Study. The Passive Party shall have no other rights to such
results. For the avoidance of doubt, any reimbursements made pursuant to this Section 4.2(g) are in addition to any milestone payments due pursuant to Section 7.2 for events occurring prior to the exercise of such buy-in which, in the case
of Nycomed exercising such buy-in right, shall be paid together with such buy-in reimbursement. 
 (h) Clinical Site
Management. In the case of Joint Development Plans, the intention of the Parties is that each Party shall manage clinical trials under such Joint Development Plan that are conducted in its respective territory. 
 (i) Investigator-Initiated Trials. If any clinical trials are initiated by a Third Party in connection with an Investigator
Sponsored Clinical Study involving a Party, then such Party shall promptly notify the other Party of such clinical trial and shall provide the other Party with such information about such clinical trial as the other Party shall reasonably request.

 4.3 Development Efforts; Manner of Performance; Reports. 
 (a) Efforts. Each of NPS and Nycomed shall use Diligent Efforts to execute and to perform, or cause to be performed, the
Development activities assigned to it herein and to cooperate with the other in carrying out such Development activities, in each case in good scientific manner and in compliance with all applicable laws and regulations and good clinical and
laboratory practice. 
 (b) Progress Reports. Within thirty (30) days after the end of each Calendar Quarter in
which Development activities are performed, each Party will provide to the Joint Development Committee a written progress report, which will describe the Development activities such Party has performed or caused to be performed during such Calendar
Quarter, evaluate the work performed in relation to the goals of such Development activities, and provide such other information as may be reasonably requested by the Joint Development Committee with respect to such Development activities.

  

 20 

 (c) Termination of Development. Subject to Section 4.2(a), Nycomed shall have
the sole discretion with respect to Development of Product in the Territory, including the right to decide whether to develop the Product in a particular Indication and whether to continue such Development. If at any time prior to First Commercial
Sale Nycomed ceases all activities in connection with Development or Commercialization of Compound or Product in the Territory for a period of at least two (2) years for reasons within Nycomed’s reasonable control, then NPS may deem a
constructive termination at will pursuant to Section 11.2(a) to have occurred and all effects of termination in Section 11.3(a) shall apply. For the purposes of this Section 4.3(c), acts of government, Regulatory Authorities or price
reimbursement bodies, measures taken for reasons of patient safety or reasonable expected risk of infringement of Third Party intellectual property shall not be deemed within Nycomed’s control. 
 4.4 Right to Audit. Each Party shall use Diligent Efforts to ensure that the other Party’s authorized representatives, and shall ensure that
Regulatory Authorities, in both cases to the extent permitted by applicable law, may, during regular business hours, (a) examine and inspect its facilities or, subject to any Third Party confidentiality restrictions or obligations, the
facilities of any subcontractor or any investigator site used by it in the performance of Development of Product, and (b) subject to applicable law and any Third Party confidentiality restrictions or obligations, inspect and copy all data,
documentation and work products relating to the activities performed by it, the subcontractor or investigator site, including, without limitation, the medical records of any patient participating in any clinical study. This right to inspect and copy
all data, documentation, and work products relating to Product may be exercised at any time during the Term (subject to each Party’s record retention policies then in effect), or such longer period as shall be required by applicable law.

 4.5 Regulatory Submissions and Regulatory Approvals. 
 (a) Ownership of Regulatory Submissions. 
 (i) North America. NPS shall own all regulatory submissions, including all regulatory approval applications, for regulatory
approvals in North America and shall be solely responsible for seeking and obtaining all regulatory approvals for Product in North America. 
 (ii) Territory. Nycomed shall own all regulatory submissions, including all Regulatory Approval Applications, for Regulatory Approvals in the Territory and shall be solely responsible for seeking
and obtaining all Regulatory Approvals in the Territory. 
 (b) Access to Data. 
 (i) Delivery of Milestone Data. Upon NPS’ public announcement of the results of the Phase III Clinical Study relating to the
Primary Indication (the “Primary Indication Announcement”), NPS shall deliver to Nycomed all available quality-controlled safety data as well as quality-controlled efficacy data supporting the primary endpoints and selected
secondary endpoints available to NPS relating to such study at the time of the Primary Indication Announcement, including without limitation any tables, listings, figures and analysis (the “Milestone Data”). 
  

 21 

 (ii) Each Party shall have access to data contained or referenced in submissions
or applications for Regulatory Approvals as may be reasonably necessary to enable either Party to fulfill its obligations under this Agreement to Develop, Manufacture, and/or Commercialize Product in the Field in the Territory but only to the extent
that (A) such access is required to maintain Regulatory Approvals already obtained for Product and (B) the Party requesting access has funded Development Costs for Product. Each Party shall provide appropriate notification to applicable
Regulatory Authorities of any right of reference so granted to the other Party. Notwithstanding the foregoing, NPS shall have a right of reference to all data contained or referenced in submissions or applications for Regulatory Approval as may be
reasonably necessary to enable NPS to Develop, Manufacture and/or Commercialize Product in Canada and Mexico; provided, however, that in the case where such data being referenced for Canada and/or Mexico was not the subject of cost-sharing by NPS
pursuant to Section 4.2(a), Section 4.2(g) or a Joint Development Plan, NPS shall pay, and, if applicable, shall ensure that any Future Partner shall pay, Nycomed royalty payments based on Net Sales of Product in Canada and/or Mexico, as
applicable, for the particular Indication for which regulatory approval is being sought in Canada and/or Mexico, as applicable, at the rate of (A) [*] during the Nycomed Initial Royalty Term and (ii) [*] during the Nycomed Secondary
Royalty Term. At any time during the Nycomed Royalty Term, if the aggregate sales of an Equivalent Product in Canada and/or Mexico, as applicable, reach [*] of the aggregate sales of Product in such Indication in such Country, then the royalty
described in this Section 4.5(b)(i) payable in such Country shall be reduced to zero for such Product for such Indication in such Country. 
 (iii) Each Party shall provide the other Party with access to all CMC, preclinical and clinical data Controlled by such Party that is required or useful in order to prepare Regulatory Approval Applications, but
only to the extent that the Party requesting access has funded Development Costs for Product under a Joint Development Plan or pursuant to a buy-in right under this Agreement. In addition to the foregoing, NPS shall provide all such data to Nycomed
that (I) relates to Product or Compound and exists as of the date hereof, (II) relates to the Ongoing Studies or (III) relates to the technology that is the subject of Schedules 4.5(b)(iii) and 6.3 which sets forth a list of data that may be
accessed by Nycomed, subject to the terms and conditions of this Section 4.5(b)(iii). 
 (c) Participation in Meetings
in the Territory. NPS will have the right to participate as an observer in all material meetings and other contact with Regulatory Authorities pertaining to a Regulatory Approval Application or Regulatory Approval in the Territory for Product.
Nycomed shall provide NPS with reasonable advance notice of all such meetings and other contact and advance copies of all related documents and other relevant information relating to such meetings or other contact. Nycomed shall also promptly
provide to NPS all material correspondence and written conversation summaries between it and any Regulatory Authority in the Territory. 
 (d) Regulatory Correspondence. 
 (i) Nycomed shall provide NPS with reasonable
advance notice of all material meetings (whether face-to-face or teleconference) and advance copies of all related documents and other relevant information relating to such meetings or other contact. Nycomed shall provide NPS with drafts of any
material documents or other material correspondence 

  

 22 

 
pertaining to Regulatory Approval Applications in the Territory to be submitted by Nycomed to Regulatory Authorities, including without limitation, any
proposed labeling, when feasible sufficiently in advance of submission so that NPS may review and comment upon such documents and other correspondence and have a reasonable opportunity to influence the substance of such submissions. Nycomed shall
promptly provide to NPS copies of any material documents or other material correspondence pertaining to Product registration, including without limitation all proposed labeling received from Regulatory Authorities in the Territory. Nycomed shall
promptly provide NPS with copies of all other material documents and correspondence pertaining to Product after they have been submitted to, or received from, Regulatory Authorities in the Territory. Nycomed shall provide NPS with any English
translations of such documents and correspondence that Nycomed has produced for its own use. 
 (ii) NPS shall provide
Nycomed with reasonable advance notice of all material meetings (whether face-to-face or teleconference). NPS shall provide Nycomed with drafts of any material documents or other material correspondence pertaining to regulatory approval applications
outside the Territory to be submitted by NPS to Regulatory Authorities, including without limitation, any proposed labelling, when feasible sufficiently in advance of submission so that Nycomed may review and comment upon such documents and other
correspondence. NPS shall promptly provide to Nycomed copies of any material documents or other material correspondence pertaining to Product registration, including without limitation all proposed labelling received from Regulatory Authorities
outside the Territory. NPS shall promptly provide Nycomed with copies of all other material documents and correspondence pertaining to Product after they have been submitted to, or received from, Regulatory Authorities outside the Territory.

 ARTICLE 5 
 COMMERCIALIZATION 
 5.1 Commercialization in the Territory. 
 (a) Nycomed’s Responsibilities. Nycomed shall be solely responsible for Commercializing Product in the Territory. Nycomed
shall use Diligent Efforts to Commercialize Product in the Territory and to carry out its obligations under this Agreement in all Countries in the Territory where Regulatory Approvals have been obtained. 
 (b) Coordination; Semi-Annual Reports. The Parties shall coordinate the Commercialization of Product in the Territory with the
Commercialization of Product in North America with the objective of coordination of global product positioning and sharing of best practices and strategies. Nycomed shall provide NPS reports semi-annually with respect to its Commercialization
activities for the past six (6) month period and its plans for the subsequent six (6) month period. Such reports shall set forth in summary form the results of Nycomed’s Commercialization activities performed during such semi-annual
period, the actual budget for the past six (6) month period and the forecasted budget for the subsequent six (6) month period. 
 (c) Decisions with Respect to Product in the Territory. Nycomed shall have the sole discretion with respect to Commercialization decisions for Product in the Territory, 

  

 23 

 
including the right to decide whether to launch and market the Product in a Country of the Territory, and whether to seek Regulatory Approval for Product in
a Country of the Territory. 
 (d) Exports. Nycomed shall use Diligent Efforts to prevent Product distributed for sale
in the Territory from being exported to a Country in North America for sale. NPS shall use Diligent Efforts to prevent Product distributed for sale in a Country in North America from being exported to a Country in the Territory for sale. 

5.2 Advertising and Promotional Materials. 
 (a) Nycomed shall develop written sales, promotional and advertising materials relating to Product and its Indications (the “Promotional Materials”) for use in the Territory. Such Promotional
Materials shall be compliant with all applicable laws and regulations. All such Promotional Materials and all documentary information and oral presentations (where practicable) regarding the marketing and promotion of Product in Countries of the
Territory shall acknowledge the Parties’ distribution and license arrangement and shall display the Nycomed and NPS names and logos with equal prominence, subject to any limitations imposed by applicable law. 
 (b) Nycomed shall provide to NPS copies of all Promotional Materials used by Nycomed for the Territory (translated into English
where applicable). Nycomed will submit any core Promotional Materials to NPS for review and shall give NPS an opportunity to comment on such Promotional Materials. Nycomed agrees to consider in good faith any comments NPS may have with respect to
such Promotional Materials. 
 (c) Promotional Materials for use in all Countries of the Territory will be reviewed
and approved by Nycomed in accordance with Nycomed’s standard operating procedures. Copies of all Promotional Materials used in the Territory will be archived by Nycomed in accordance with applicable laws and regulations. 
 5.3 Sales and Distribution. Nycomed shall be responsible for booking sales and shall warehouse and distribute Product in the Territory.

 5.4 Complaints. Each Party will maintain a record of any and all complaints it receives with respect to Product. Each Party will
notify the other Party in reasonable detail of any complaint received by the Party with respect to Product manufactured, used or sold within forty-eight (48) hours after the event, and in any event, in sufficient time to allow the other Party
and its Affiliates and sublicensees to comply with any and all regulatory and other requirements imposed upon them in any jurisdiction in which Product is being marketed or tested in clinical studies. 
 5.5 Adverse Event Reporting Procedures. Each Party will (a) provide the other Party with safety data from clinical studies in its control and
post-marketing reports necessary or desirable for the other Party to comply with all applicable laws and regulations with respect to Product and (b) report and provide such information to the other Party in such a manner and time so as to
enable the other Party to comply with all applicable laws and regulations. Nycomed shall maintain a global safety database for Product and shall generate adverse event reports for NPS’ use in North America. NPS shall have access to all data in
the global safety database. Nycomed 

  

 24 

 
shall be responsible for submitting such adverse events reports to the applicable Regulatory Authorities in the Territory. Details on procedures and
responsibilities shall be negotiated by the pharmacovigilance personnel of the Parties and set forth in a Pharmacovigilance Agreement to be entered into by the Parties within ninety (90) days after the Effective Date. 
 5.6 Recalls, Market Withdrawals or Corrective Actions. 
 (a) In the event that any Regulatory Authority issues or requests a recall or takes a similar action in connection with Product in
the Territory, or in the event either Party determines that an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal in the Territory, the Party notified of such recall or similar action, or the
Party that desires such recall or similar action, shall within twenty-four (24) hours, advise the other Party thereof by telephone or facsimile. Nycomed, in consultation with NPS, shall decide whether to conduct a recall in the Territory
(except in the case of a government mandated recall, when Nycomed may act without such advance notice but shall notify NPS as soon as possible) and the manner in which any such recall shall be conducted. NPS will make available to Nycomed, upon
request, all of NPS’ pertinent records that Nycomed may reasonably request to assist Nycomed in effecting any recall. Nycomed shall bear the expense of any such recall in the Territory. 
 (b) In the event that any Regulatory Authority issues or requests a recall or takes a similar action in connection with Product in
any Country of North America, or in the event either Party determines that an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal in any Country in North America, the Party notified of such
recall or similar action, or the Party that desires such recall or similar action, shall within twenty-four (24) hours, advise the other Party thereof by telephone or facsimile. NPS, in consultation with Nycomed, shall decide whether to conduct
a recall in such Country in North America (except in the case of a government mandated recall, when NPS may act without such advance notice but, shall notify Nycomed as soon as possible) and the manner in which any such recall shall be conducted.
Nycomed will make available to NPS, upon request, all of Nycomed’s pertinent records that NPS may reasonably request to assist NPS in effecting any recall. NPS shall bear the expense of any such recall in North America. 
 ARTICLE 6 
 MANUFACTURE AND SUPPLY

 6.1 General. The purpose of this Article 6 shall be to enable Nycomed to take over responsibilities relating to the manufacture
and supply of the Compound, Product and Device for the Territory. In addition, the Parties will source clinical trial materials for the Primary Indication from and after the completion of the Ongoing Studies from the existing Third Party
manufacturers listed on Schedule 6.1, unless otherwise mutually agreed by the Parties. 
 6.2 Manufacture and Supply for the
Territory. After the Effective Date, Nycomed shall be responsible for Manufacturing and supply of the Compound and Product for the Territory. Nycomed shall use Diligent Efforts to ensure supply of Product through itself or Third Parties,
including, without limitation, the negotiation of Manufacturing and supply obligations and amendment of Regulatory Approvals to permit such supply chain. 
  

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 6.3 Transfer of Responsibility and Technology. Subject to Section 6.7, NPS
shall transfer the process technology to support such activities for the current process within [*] after the Effective Date and for the [*] Process within [*] after the Effective Date in accordance with the technology transfer schedule attached
hereto as Schedule 6.3. Nycomed may not utilize any of the technology transferred hereunder relating to the [*] Process for any purpose other than the Development and Manufacturing of the Compound and Product. Nycomed shall reimburse NPS for
[*] of its costs of internal scientific, medical, technical or managerial personnel engaged in transferring the current process and for [*] of its costs of internal scientific, medical, technical or managerial personnel engaged in transferring the
[*] Process, which costs in each case shall be determined based on the applicable FTE Rate. NPS shall not be obligated to devote, and Nycomed shall not be obligated to reimburse for, more than [*] of a FTE for the purpose of transferring the current
process or more than [*] of a FTE for the purpose of transferring the [*] Process. To the extent practicable, NPS shall accommodate Nycomed on any reasonable request to convert such information into another form that is required or requested by a
Regulatory Authority. 
 6.4 Subsequent Information. Information relating to the process technology for the current
process which comes under the Control of either Party (the “Controlling Party”) or its Affiliates during the Term after the transfer in Section 6.3 shall be transferred to the other Party as soon as reasonably practicable after
it becomes available to the Controlling Party. The Controlling Party shall use reasonable efforts not to, and to cause its Affiliates not to, enter into any agreement with any entity which prevents such information obtained as a result of such
agreement being made available to the other Party. 
 6.5 [*] Process. 
 (a) CMO Activities. NPS shall be responsible for overseeing the research and development of the [*] Process with the
CMOs currently in progress. NPS and Nycomed shall cooperate to transfer the responsibility for such oversight in the Territory to Nycomed within a reasonable timeframe. 
 (b) Joint Development Plans. Nycomed shall be responsible for implementing and overseeing any Joint Development Plans
prepared by the Joint Development Committee relating to the [*] Process and the Parties shall each be responsible for fifty percent (50%) of the costs and expenses of implementing any such Joint Development Plans. If NPS does not agree to any
such Joint Development Plans, then NPS may elect not to participate and shall not be obligated to pay any costs or expenses associated with such Joint Development Plan. In the event of such an election not to participate by NPS, each Party may
pursue its own Development relating to the [*] Process and shall be responsible for its own costs and expenses incurred in connection therewith. Thereafter, if either Party desires to utilize any Improvements Developed solely by the other Party (the
“Developing Party”) relating to the [*] Process, such Party shall be offered the rights to such Improvements by reimbursing the Developing Party an amount equal to [*] of the Developing Party’s costs incurred after the
Effective Date to Develop such Improvements plus interest on such amount equal to an annual compound rate of [*] of such amount beginning on the date the Developing Party began incurring costs for such Developing such Improvements up to the date of
payment. 
  

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 6.6 Master Cell Bank and Working Cell Banks. NPS is currently a party to a certain Laboratory
Services and Confidentiality Agreement, dated as of [*], by and between NPS and [*], as amended on January 1, 2006, under which [*] performs certain contract research duties for NPS. As promptly as practicable after the Effective Date, NPS
shall transfer to [*] or ATCC Patent Depository, which is in the business of maintaining legal compliant storage of materials for patent purposes (“ATCC”), or another Third Party appointed by NPS and approved by Nycomed, such
approval not to be unreasonably withheld or delayed, the Master Cell Bank and Working Cell Banks and the technology related thereto under a trust agreement allowing royalty free access to Nycomed, NPS and any Future Partner in such a manner as to
prevent either party from depleting these materials such that harm is caused to the other party. As part of such trust agreement, a mechanism for storage fees, withdrawals and manufacture of additional Working Cell Banks will be defined. Nycomed and
NPS (or their respective assignee or sublicense) shall each cover fifty percent (50%) of the total costs and expenses of the activities required to maintain such trust. Until the trust agreement is in place, NPS shall deliver to Nycomed Master
Cell Banks or Working Cell Banks as needed by Nycomed for purposes of performing its obligations hereunder. 
 6.7 Other Ongoing Rights
and Responsibilities. 
 (a) Common Technical Document. NPS shall be responsible for the initial preparation of the
CMC sections of the common technical document for the processes relating to Manufacture of Product, and shall provide a copy of such section to Nycomed for preparation of its Regulatory Approval Application with the applicable Regulatory Authorities
in the Territory. 
 (b) Validation Batches. NPS shall retain the ongoing Validation Batches for Product and shall be
responsible for finalizing the validation summary reports prepared in connection with the Validation Batches. 
 (c) CMO
Activities. Nycomed shall inform NPS of any activities by Nycomed and any CMOs to prepare Product for approval for filing with the Regulatory Authorities and for First Commercial Sale in the Territory. 
 ARTICLE 7 
 FINANCIAL PROVISIONS 

 7.1 Signing Fee. No later than five (5) days after the Effective Date, Nycomed shall pay to NPS the amount of ten
million dollars ($10,000,000) for the rights granted in this Agreement. For the avoidance of doubt, NPS shall retain such ten million dollar ($10,000,000) signing fee even in the event of a termination of this Agreement by Nycomed pursuant to
Section 11.2(a). 
 7.2 First Milestone Payment. No later than fourteen (14) days after the later of (a) the
Primary Indication Announcement and (b) the transfer by NPS to Nycomed of the Milestone Data (the “Termination Period”), Nycomed shall pay to NPS the amount of twenty-five million dollars ($25,000,000) for the rights granted in
this Agreement, provided, that if Nycomed has delivered to NPS a written notice of termination (a “Termination Notice”) before the end of the Termination Period, Nycomed shall have no obligation to pay the amount set forth in this
Section 7.2. 
  

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 7.3 Milestone Payments. 
 (a) Primary Indication Milestones. Nycomed shall make the non-refundable, non-creditable payments to NPS set forth below not
later than ten (10) business days after the date of the corresponding milestone event set forth below relating to the Primary Indication has been achieved: 
  

					
	 Milestone Event
	  	Payment	 
	 Acceptance for filing of Regulatory Approval Application by the EMEA
	  	$	[	*]
	 Approval by the (a) EMEA or (b) the first Major EU Country*
	  	$	[	*]
	 Launch of Product in the first Major EU Country
	  	$	[	*]

  

	*	Only payable if approval occurs on or before [*]; provided that approval shall be deemed to have occurred notwithstanding any post-approval conditions. 

 (b) Additional Indication Milestones. To the extent the Parties agree to develop Additional Indications (of which examples of
potential indications are mentioned below) as set out in Section 4.2(b) above: 
 (i) NEC Milestones. Nycomed
shall make the non-refundable, non-creditable payments to NPS set forth below not later than ten (10) business days after the date of the corresponding milestone event set forth below relating to the NEC has been achieved: 
  

					
	 Milestone Event
	  	Payment	 
	 Successful Proof of Concept Study
	  	$	[	*]
	 Acceptance for filing of Regulatory Approval Application by the EMEA
	  	$	[	*]
	 Launch of Product in the first Major EU Country
	  	$	[	*]

 (ii) CIGIM Milestones. Nycomed shall make the non-refundable,
non-creditable payments to NPS set forth below not later than ten (10) business days after the date of the corresponding milestone event set forth below relating to CIGIM has been achieved: 
  

					
	 Milestone Event
	  	Payment	 
	 Successful Proof of Concept Study
	  	$	[	*]
	 Acceptance for filing of Regulatory Approval Application by the EMEA
	  	$	[	*]
	 Launch of Product in the first Major EU Country
	  	$	[	*]

  

 28 

 (iii) Crohn’s Milestones. Nycomed shall make the non-refundable,
non-creditable payments to NPS set forth below not later than ten (10) business days after the date of the corresponding milestone event set forth below relating to Crohn’s related indications has been achieved: 
  

					
	 Milestone Event
	  	Payment	 
	 Successful Proof of Concept Study
	  	$	[	*]
	 Acceptance for filing of Regulatory Approval Application by the EMEA
	  	$	[	*]
	 Launch of Product in the first Major EU Country
	  	$	[	*]

 (iv) Other Additional Indications. Nycomed shall make the non-refundable,
non-creditable payments to NPS set forth below not later than ten (10) business days after the date of the corresponding milestone event set forth below relating to any Additional Indication not specified in (i) through (iii) above
has been achieved: 
  

					
	 Regulatory Milestone Event
	  	Payment	 
	 Successful Proof of Concept Study
	  	$	[	*]
	 Acceptance for filing of Regulatory Approval Application by the EMEA
	  	$	[	*]
	 Launch of Product in the first Major EU Country
	  	$	[	*]

 (c) Commercialization Milestone. In addition to all other amounts payable
under this Agreement, Nycomed shall make a non-refundable, non-creditable, one-time milestone payment to NPS related to the marketing and sale of Product in the Territory in the amount of [*] for the first Calendar Year period that commences after
the 2007 Calendar Year during which aggregate Net Sales of Product in the Territory equal or exceed [*]. 
 7.4 Payment of Royalties on
Net Sales. 
 (a) Royalty Rates. Subject to adjustment pursuant to Section 7.4(b), Nycomed shall pay NPS
royalty payments based on Net Sales of Products in the Territory at the rate of (i) [*] percent [*] during the NPS Initial Royalty Term and (ii) [*] percent [*] during the NPS Secondary Royalty Term. 
 (b) Reduction of Royalty. At any time after the Effective Date during the NPS Royalty Term, if the aggregate sales of an Equivalent
Product in a Country reach [*] percent [*] of the aggregate sales of Product in the Indications for which Product is then sold in such Country, then the royalty payable in such Country shall be reduced to zero for such Product for such Indications
in such Country. 
 (c) Royalty Payment Schedules; Reports. Royalty payments due pursuant to Section 7.4(a) are
due and payable within thirty (30) days of the end of each Calendar Quarter during the NPS Royalty Term during which there were Net Sales of Product in the Territory. Nycomed shall accompany each payment of royalties under this Agreement with a
report setting forth, on a Country-by-Country basis in the Territory, the amount of gross sales of Product in 

  

 29 

 
such Country, a calculation of Net Sales, the currency conversion rate used and the United States Dollar-equivalent of such Net Sales, and a calculation of
the amount of royalty payment due on such Net Sales. 
 7.5 Existing Third Party Agreement Payments. 
 (a) Nycomed shall be responsible for paying all royalties that are payable by NPS to Third Parties under the [*] as a result of the
Development, Manufacture or Commercialization of Product in the Territory pursuant to this Agreement. Nycomed shall pay all such royalties directly to [*] at the times and in the manner required by the [*]. Subject to Section 3.6(b), NPS shall
be responsible for all amounts due and payable to Third Parties under the Existing Third Party Agreements other than the [*] as set forth above. 
 (b) In the event that Nycomed determines that it must acquire rights to any intellectual property owned by a Third Party in order to Develop, Manufacture or Commercialize Product, Nycomed shall have the right
to acquire such rights through a license or otherwise. Nycomed shall be solely responsible for making any and all payments owed to Third Parties under such licenses; provided, however, that if at any time within four (4) months after the
Effective Date Nycomed makes a determination that it must acquire any such licenses, then Nycomed may offset any royalty payments owed under such licenses against any royalty payments owed by Nycomed to NPS under Sections 7.4(a) hereof. During the
four (4) month period described in the preceding sentence, NPS shall have the right to take the lead in any negotiations to acquire such rights to Third Party intellectual property hereunder and thereafter shall take the lead only if Nycomed so
requests. 
 7.6 Audits. Each Party shall keep complete and accurate records of the underlying Development Costs, Cost of Goods and
Net Sales relating to the reports and payments required under this Agreement. Each Party will have the right twice annually at its own expense to have an independent, certified public accountant, selected by such Party and reasonably acceptable to
the other Party, review any such records of the other Party in the location(s) where such records are maintained by the other Party upon reasonable notice and during regular business hours and under obligations of confidence, for the sole purpose of
verifying the basis and accuracy of payments made under this Agreement within the prior thirty-six (36) month period. If the review of such records reveals that the other Party has failed to accurately report information pursuant to this
Agreement, then the other Party shall promptly pay to the auditing Party any resulting amounts due, together with interest calculated in the manner provided in Section 7.11. If any such under payments are greater than five percent (5%) of
the amounts actually due for a Calendar Quarter, the other Party shall pay all of the costs of such review. 
 7.7 Tax Matters. The
Parties shall use all reasonable and legal efforts to reduce tax withholding on payments made to NPS hereunder. Notwithstanding such efforts, if Nycomed concludes, after consultation with NPS, that tax withholdings under the laws of any Country are
required with respect to payments to NPS, Nycomed shall deduct and withhold the required amount and pay it to the appropriate Governmental Authority. In such a case, Nycomed will promptly provide NPS with original receipts or other evidence
reasonably desirable and sufficient to allow NPS to document such tax withholdings adequately for purposes of claiming foreign tax credits and similar benefits. 
  

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 7.8 United States Dollars. All dollar ($) amounts specified in this Agreement are United
States dollar amounts. 
 7.9 Currency Exchange. With respect to Net Sales invoiced or expenses incurred in United States dollars, the
Net Sales or expense amounts and the amounts due to the receiving Party hereunder shall be expressed in United States dollars. With respect to Net Sales invoiced or expenses incurred in a currency other than United States dollars, the Net Sales or
expense shall be expressed in the currency in which such Net Sales were invoiced or such expense was incurred together with the United States dollar equivalent, calculated using the average of the spot rate on the first and last business days of the
Calendar Quarter in which the Net Sales were made or the expense was incurred. The 12:00 Noon Buying Rates, as certified by the NY Federal Reserve Bank (currently and historical rates can be found on their website at www.ny.frb.org), shall be used
as the source of spot rates. All payments shall be made in United States dollars. 
 7.10 Blocked Payments. In the event that, by
reason of applicable laws or regulations in any Country, it becomes impossible or illegal for Nycomed or an Affiliate or sublicensee of Nycomed, to transfer, or have transferred on its behalf, distribution fees or other payments to NPS, Nycomed
shall promptly notify NPS of the conditions preventing such transfer and such distribution fees or other payments shall be deposited in local currency in the relevant Country to the credit of NPS in a recognized banking institution designated by NPS
or, if none is designated by NPS within a period of thirty (30) days, in a recognized banking institution selected by Nycomed or its Affiliate or sublicensee, as the case may be, and identified in a notice given to NPS. 
 7.11 Late Payments. The paying Party shall pay interest to the receiving Party on the aggregate amount of any payments that are not paid on or
before the date such payments are due under this Agreement at a rate of prime plus three (3) points per annum or the highest rate permitted by applicable law, calculated on the number of days such payments are paid after the date such payments
are due and compounded monthly. 
 7.12 Shared Development Costs. 
 (a) Shared Development Costs. Unless otherwise specified herein, the Development Costs for any Indications that the Parties jointly
agree to pursue under a Joint Development Plan (the “Shared Development Costs”) shall be shared such that each Party pays fifty percent (50%) of such Shared Development Costs. 
 (b) Reporting of Shared Development Costs. Within fifteen (15) days after the end of each of the first three (3) Calendar
Quarters of each Calendar Year during the Term, each Party shall submit to the other Party a reasonably detailed report of all Shared Development Costs incurred by such Party during the prior Calendar Quarter. Within sixty (60) days after the
end of each Calendar Year during the Term, each Party shall submit to the other Party a reasonably detailed report of all Shared Development Costs incurred by such Party during the prior Calendar Year, reflecting any year-end reconciliations and
adjustments applicable to the previous three (3) Calendar Quarters’ reported results. 
  

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 (c) Payment of Shared Development Costs. Within thirty (30) days after the
delivery of the quarterly and year-end reports described in Section 7.12(b), the Parties shall make payments to each other to the extent necessary to effect the division of the Shared Development Costs described in Section 7.12(a).

 ARTICLE 8 
 INTELLECTUAL PROPERTY OWNERSHIP, PROTECTION AND RELATED 
 MATTERS 
 8.1 Ownership of Inventions. 
 (a) Sole Inventions. Subject to Section 8.1(c), each Party shall exclusively own all inventions made during the Term solely by such Party, its employees, agents and consultants (“Sole Inventions”). Sole
Inventions of Nycomed, its employees, agents and consultants are referred to herein as “Nycomed Sole Inventions”. Any Patent Rights filed Covering Nycomed Sole Inventions shall be Nycomed Patent Rights Sole Inventions of NPS, its
employees, agents and consultants are referred to herein as “NPS Sole Inventions”. Any Patent Rights filed Covering NPS Sole Inventions shall be NPS Patent Rights. 
 (b) Joint Inventions. Subject to Section 8.1(c), the Parties shall jointly own all inventions made during the Term jointly by
employees, agents and consultants of Nycomed and employees, agents and consultants of NPS, on the basis of each Party having an undivided interest in the whole (“Joint Inventions”). Any Patent Rights filed Covering Joint Inventions
shall be Joint Patent Rights. 
 (c) Assigned Improvements. Notwithstanding Section 8.1(a) or 8.1(b), in the event
a Nycomed Sole Invention or Joint Invention is a discovery, invention, improvement or new use related to the Compound or Product (an “Improvement”), such Improvement (a) shall be jointly owned by NPS and Nycomed in the EU and
shall be designated a Co-Owned Patent Right in the EU hereunder and (b) shall be the sole and exclusive property of NPS in all Countries other than any Country of the EU and Nycomed agrees to assign and hereby does assign its entire right,
title and interest in and to such Improvements to NPS in all Countries other than any Country of the EU. Thereafter, all such assigned Inventions shall be part of the NPS Intellectual Property. 
 (d) Inventorship. For purposes of determining whether an invention is a Nycomed Sole Invention, a NPS Sole Invention or a Joint
Invention, questions of inventorship shall be resolved in accordance with United States patent laws. 
 8.2 Prosecution and Maintenance of
Patent Rights. 
 (a) Registration as Co-Owner. Upon the terms and subject to the conditions of the Existing Third
Party Agreements, Nycomed shall have the right to register as a co-owner of the Co-Owned Patent Rights with all applicable patent or trademark offices in the Territory, and to act as a representative in prosecuting and maintaining such Co-Owned
Patent Rights for both Parties in the Territory. 
  

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 (b) NPS-Controlled Patent Rights. 
 (i) Nycomed shall have the first right to take the lead in the filing, prosecution and maintenance of the NPS Patent Rights in the
Territory. If Nycomed elects not to undertake (or, after commencement of such filing, prosecution and/or maintenance, desires to cease the prosecution or the maintenance of any such NPS Patent Rights), then Nycomed shall notify NPS of such election
and NPS, subject to the terms of the Existing Third Party Agreements, shall be entitled to file, prosecute and/or maintain such NPS Patent Rights. 
 (ii) NPS shall have the right to take the lead in the filing, prosecution and maintenance of the NPS Patent Rights outside the Territory. If NPS elects not to undertake (or, after commencement of such filing,
prosecution and/or maintenance, desires to cease the prosecution or the maintenance of any such NPS Patent Rights), then NPS shall notify Nycomed of such election and Nycomed, subject to the terms of the Existing Third Party Agreements, shall be
entitled to file, prosecute and/or maintain such NPS Patent Rights. 
 (c) Nycomed-Controlled Patent Rights. Nycomed
shall have the first right to take the lead in the filing, prosecution and maintenance of the Nycomed Patent Rights. If Nycomed elects not to undertake (or, after commencement of such filing, prosecution and/or maintenance, desires to cease the
prosecution or the maintenance of any Nycomed Patent Rights), then Nycomed shall notify NPS of such election and NPS, subject to the terms of the Existing Third Party Agreements, shall be entitled to file, prosecute and/or maintain such Nycomed
Patent Rights. NPS shall have the right to review and comment on Nycomed’ prosecution and/or maintenance of any Nycomed Patent Rights. 
 (d) Joint Patent Rights. Upon the terms and subject to the conditions of the Existing Third Party Agreements, Nycomed shall have the first right to take the lead in the filing, prosecution and maintenance of
Joint Patent Rights. If Nycomed elects not to undertake (or, after commencement of such filing, prosecution and/or maintenance, desires to cease the prosecution or the maintenance of any Joint Patent Rights), then Nycomed shall notify NPS of such
election and NPS shall be entitled to file, prosecute and/or maintain such Joint Patent Rights. The non-prosecuting Party shall have the right to review and comment on the prosecuting Party’s prosecution and/or maintenance of any Joint Patent
Rights. 
 (e) Costs and Expenses. Nycomed shall reimburse NPS for reasonable costs and expenses incurred by NPS,
including without limitation costs of reasonable time spent by NPS personnel on patent preparation and prosecution calculated at the applicable FTE Rate, in preparing, filing, prosecuting and/or maintaining the NPS Patent Rights and the Joint Patent
Rights Covering Product in the Territory. Nycomed shall bear its own costs and expenses incurred by Nycomed in preparing, filing, prosecuting and/or maintaining NPS Patent Rights or the Joint Patent Rights. NPS shall invoice Nycomed for all costs
and expenses reimbursable by Nycomed pursuant to this Section 8.2(e) and Nycomed shall pay such invoices within thirty (30) days after receipt thereof. 
 (f) Cooperation. Each Party agrees to cooperate with the other Party with respect to the preparation, filing, prosecution and
maintenance of patents and patent applications pursuant to this Section 8.2. The Party responsible for preparing, filing, prosecuting and/or maintaining Patent Rights Covering Product in the Territory or Joint Patent Rights shall provide the
other Party with advance copies (which may be in draft form) of all material filings as well as 

  

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copies of all material correspondence from the relevant patent office, in each case relating to such Patent Rights, and shall consider in good faith all
comments from such other Party relating to such filings and correspondence. In addition, each Party shall on a regular basis or upon reasonable request, and in no event less than on a quarterly basis, inform the other Party of any changes or updates
relating to the prosecution of Patent Rights Covering the Product, including but not limited to prior art (including but not limited to prior art cited by patent authorities), bars to patentability brought up by national patent offices and
strategies to overcome said bars and shall use Diligent Efforts to harmonize the prosecution of said Patent Rights. 
 (g) NPS shall provide to Nycomed access to all data, documentation, or personnel (including but not limited to inventors) controlled by NPS that are required or useful in order to establish a freedom-to-operate opinion for the use,
Development, Manufacture or Commercialization of the Compound, Product or Compound and to maintain, file, prosecute or defend the any Patent Rights Covering the Product or Compound. 
 8.3 Third Party Infringement. 
 (a) Notice. Each Party shall promptly report in writing to the other Party during the Term any known or suspected (i) infringement of any of the NPS Patent Rights or Nycomed Patent Rights or Joint Patent Rights or
(ii) unauthorized use of any of the NPS Know-How, Nycomed Know-How or Joint Know-How of which such Party becomes aware, and shall provide the other Party with all available evidence supporting such known or suspected infringement or
unauthorized use. 
 (b) Initial Right to Enforce. Subject to Section 8.3(c) below and the provisions of any Third
Party license agreement under which NPS’ rights in NPS Patent Rights or Nycomed’s rights in Nycomed Patent Rights are granted, (i) NPS shall have the first right to initiate a suit or take other appropriate action that it believes is
reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce the Patent Rights outside the Territory and (ii) Nycomed shall have the first right to initiate a suit or take
other appropriate action that it believes is reasonably required to protect (i.e., prevent or abate actual or threatened infringement or misappropriation of) or otherwise enforce the Patent Rights in the Territory. 
 (c) Step-In Right. Subject to the provisions of any Third Party license agreement under which NPS’ rights in NPS Patent Rights
are granted or Nycomed’s rights in Nycomed Patent Rights are granted, if the Party with the first right to enforce (the “Initial Enforcement Rights Party”) the NPS Intellectual Property or the Nycomed Intellectual Property
fails to initiate a suit or take other appropriate action that it has the initial right to initiate or take pursuant to Section 8.3(b) within ninety (90) days after becoming aware of the basis for such suit or action, then the other Party
(the “Secondary Enforcement Rights Party”) may, in its discretion, provide the Initial Enforcement Rights Party with written notice of such Secondary Enforcement Rights Party’s intent to initiate a suit or take other
appropriate action with respect to such infringement in the Territory. If the Secondary Enforcement Rights Party provides such notice and the Initial Enforcement Rights Party fails to initiate a suit or take such other appropriate action within
thirty (30) days after receipt of such notice from the Secondary Enforcement Rights Party, then the Secondary Enforcement Rights Party shall have the right to 

  

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initiate a suit or take other appropriate action that it believes is reasonably required to protect the NPS Intellectual Property or the Nycomed Intellectual
Property from such infringement in the Territory. 
 (d) Conduct of Certain Actions; Costs. The Party initiating suit
shall have the sole and exclusive right to select counsel for any suit initiated by it pursuant to Section 8.3(b) or 8.3(c). If required under applicable law in order for the initiating Party to initiate and/or maintain such suit, the other
Party shall join as a party to the suit. Such other Party shall offer reasonable assistance to the initiating Party in connection therewith at no charge to the initiating Party except for reimbursement of reasonable out-of-pocket expenses incurred
in rendering such assistance. The initiating Party shall assume and pay all of its own out-of-pocket costs incurred in connection with any litigation or proceedings initiated by it pursuant to Sections 8.3(b) and 8.3(c), including without limitation
the fees and expenses of the counsel selected by it. The other Party shall have the right to participate and be represented in any such suit by its own counsel at its own expense. 
 (e) Recoveries. With respect to any suit or action referred to in Sections 8.3(b) and 8.3(c) in the Territory, any recovery
obtained as a result of any such proceeding, by settlement or otherwise, shall be applied in the following order of priority: 
 (i) first, the Parties shall be reimbursed for all costs incurred in connection with such proceeding paid by the Parties and not otherwise recovered; and 
 (ii) second, any remainder shall be treated as Net Sales under the Agreement. 
 8.4 Patent Invalidity Claim. If a Third Party at any time asserts a Claim that any NPS Patent Rights, Nycomed Patent Rights or Joint Patent Rights
are invalid or otherwise unenforceable (an “Invalidity Claim”), control of the response to such Claim in the Territory shall, as between the Parties, be determined in the same manner as enforcement rights with respect to such NPS
Patent Rights, Nycomed Patent Rights or Joint Patent Rights are determined pursuant to Sections 8.3(b) and 8.3(c), with the time periods set forth in Section 8.3(c) shortened where necessary to provide the Secondary Enforcement Rights Party
sufficient time to respond without a loss of rights, and the non-controlling Party shall cooperate with the controlling Party in the preparation and formulation of such response, and in taking other steps reasonably necessary to respond, to such
Invalidity Claim. Neither Party shall settle or compromise any Invalidity Claim without the consent of the other Party, which consent shall not be unreasonably withheld or delayed. If an Invalidity Claim arises in connection with a suit or action
referred to in Section 8.3(b) or 8.3(c), the Parties shall confer with one another regarding the appropriateness of having the Party that is controlling such suit or action in accordance with Section 8.3(b) or Section 8.3(c) continue
to control such suit or action and the sharing of cost and expenses with respect to such suit or action; provided that in the absence of any agreement by the Parties to the contrary, control of the Invalidity Claim shall remain with the same Party,
and the costs and expenses of responding to the Invalidity Claim shall be borne by the Parties in accordance with the provisions of Section 8.3. If the Invalidity Claim does not arise in connection with a suit or action referred to in
Section 8.3(b) or 8.3(c), the costs and expenses of responding to the Invalidity Claim shall be treated as Development Costs and borne by the Parties accordingly. 
  

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 8.5 Claimed Infringement. In the event that a Party becomes aware of any Claim that the
Development, Manufacture or Commercialization of Product infringes the intellectual property rights of any Third Party, such Party shall promptly notify the other Party. In any such instance, the Parties shall cooperate and shall mutually agree upon
an appropriate course of action. Each Party shall provide to the other Party copies of any notices it receives from Third Parties regarding any patent nullity actions, any declaratory judgment actions and any alleged infringement or misappropriation
of Third Party intellectual property relating to the Development, Manufacture or Commercialization of Product. Such notices shall be provided promptly, but in no event after more than fifteen (15) days following receipt thereof. 
 8.6 Patent Term Extensions. Nycomed shall have the first right to file for patent term extension wherever applicable to Patent Rights in the
Territory Controlled by either Party that Cover Product to the extent such extension is allowed by applicable law in a particular Country. If Nycomed chooses not to file (or, after commencement of such filing, desires to cease pursuing any such
extension) for patent term extension Covering the Compound or Product or choose to file only for such Patent Rights that are non-royalty-bearing, then Nycomed shall notify NPS and NPS shall have right to file for patent term extension for Patent
Rights that are royalty-bearing. Each Party, upon request by the other Party, shall provide reasonable assistance to the other Party in executing the necessary documents for any such extensions. The Parties shall, if necessary and appropriate, use
reasonable efforts to agree upon a joint strategy relating to patent term extensions. All filings for such extensions shall be made upon request by the Party having the right to decide on the filing in accordance with this Section 8.6 or, in
the case of Joint Patent Rights and Co-Owned Patent Rights, by the Party responsible for filing, prosecuting and maintaining such Patent Rights in accordance with Section 8.2(a). 
 8.7 Patent Marking. Nycomed agrees to comply with the patent marking statutes in each Country in the Territory in which Product is sold by
Nycomed, its Affiliates and/or its sublicensees. 
 8.8 Trademarks. 
 (a) General. The Products shall be Commercialized under trademarks and trade dress selected by mutual agreement of the Parties (the
“Product Trademarks”). Nycomed may select a Product Trademark for use in connection with the Product in the Territory. NPS may select a Product Trademark for use in connection with the Product in North America. The Parties shall
coordinate the use of the Product Trademarks on a global basis and on a Country-by-County basis, including by mutual agreement through the Joint Development Committee. 
 (b) Non-Use of Similar Marks. Notwithstanding any other provision in this Agreement, during the Term, neither Party nor any of its
Affiliates shall market, promote, sell and/or distribute any product (other than Product) under the Product Trademarks or any substantially similar trade names or trademarks. 
  

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 (c) Trademark Filing and Expenses. Nycomed shall be solely responsible for the
filing and maintenance of the Product Trademarks in the Territory and all costs and expenses related thereto. NPS shall be solely responsible for the filing and maintenance of the Product Trademarks in North America and all costs and expenses
related thereto. 
 (d) Marking of Promotional Materials. To the extent permitted by local law, Nycomed shall
include NPS’ name with prominence equal to that of Nycomed (or Nycomed’s local Affiliate, if such local Affiliate is the Nycomed entity most prominently included), or as close thereto as permitted by local law, on all Product packaging and
other materials related to Product. 
 (e) Trademark Infringement. 
 (i) With respect to any and all Claims instituted by Third Parties against Nycomed or NPS or any of their respective Affiliates for
trademark infringement involving the use, sale, license or marketing of the Products (each, a “Product Trademark Infringement Claim”), Nycomed shall be solely responsible for any and all Losses arising out of or resulting from such
Product Trademark Infringement Claims in the Territory and NPS shall be solely responsible for any and all Losses arising out of or resulting from such Product Trademark Infringement Claims in North America. The Parties shall cooperate with each
other in the defense and settlement of any Product Trademark Infringement Claims. 
 (ii) In the event that a Party
becomes aware of actual or threatened infringement of the Product Trademark, that Party shall promptly notify the other Party in writing (a “Trademark Infringement Notice”). Nycomed shall have the right but not the obligation to
bring an action with respect to such infringement against any Third Party for infringement of a Product Trademark in the Territory and NPS shall have the right but not the obligation to bring an action with respect to such infringement against any
Third Party for infringement of a Product Trademark in North America. A Party shall exercise this first right by providing the other Party written notice of its intention to initiate and prosecute the action or proceeding within sixty (60) days
after giving or receiving a Trademark Infringement Notice. During the Term, in the event that either Party does not undertake such an infringement action with respect to a Product Trademark, the other Party shall be permitted to do so. If either
Party is not recognized by the applicable court or other relevant body as having the requisite standing to pursue such action, then the other Party may join such Party as party-plaintiff. If a Party elects to pursue such infringement action, the
other Party may (i) elect to participate in such action, in which case such Party shall bear one-half of the out-of-pocket costs and expenses of the action (including, without limitation, court costs, reasonable fees of attorneys, accountants
and other experts and other expenses of litigation or proceedings) and shall share any recovery in proportion to their actual damages, or (ii) elect not to participate in such action, in which case such Party shall have no obligation to pay for
any of the costs or expenses of the action and shall not receive any portion of any recoveries and the other Party shall bear all costs and expenses of the action and retain all recoveries. For the purposes of this Section 8.8(e)(ii), the Party
that brings suit to enforce a given trademark shall also have the right to control settlement of such Claim. 
  

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 ARTICLE 9 
 CONFIDENTIALITY AND PUBLICITY 
 9.1 Confidential Information. During the Term and for a period
of five (5) years after any termination or expiration hereof, each Party agrees to keep in confidence and not to disclose to any Third Party, or use for any purpose, except pursuant to, and in order to carry out, the terms and objectives of
this Agreement, any Confidential Information of the other Party. As used herein, “Confidential Information” shall mean all trade secrets or confidential or proprietary information designated as such in writing by the disclosing
Party, whether by letter or by the use of an appropriate stamp or legend, prior to or at the time any such trade secret or confidential or proprietary information is disclosed by the disclosing Party to the receiving Party. Notwithstanding the
foregoing, information which is orally or visually disclosed to the receiving Party by the disclosing Party, or is disclosed in writing without an appropriate letter, stamp or legend, shall constitute Confidential Information if (a) it would be
apparent to a reasonable person, familiar with the disclosing Party’s business and the industry in which it operates, that such information is of a confidential or proprietary nature, the maintenance of which is important to the disclosing
Party, or if (b) the disclosing Party, within thirty (30) days after such disclosure, delivers to the receiving Party a written document or documents describing such information and referencing the place and date of such oral, visual or
written disclosure and the names of the employees or officers of the receiving Party to whom such disclosure was made and indicating such information should be deemed Confidential Information. The restrictions on the disclosure and use of
Confidential Information set forth in the first sentence of this Section 9.1 shall not apply to any Confidential Information that: 
 (a) was known by the receiving Party prior to disclosure by the disclosing Party hereunder (as evidenced by the receiving Party’s written records); 
 (b) is or becomes part of the public domain through no fault of the receiving Party; 
 (c) is disclosed to the receiving Party by a Third Party having a legal right to make such a disclosure without violating any
confidentiality or non-use obligation that such Third Party has to the disclosing Party; or 
 (d) is independently
developed by the receiving Party (as evidenced by the receiving Party’s written records). 
 The Receiving Party shall have the right to disclose any
Confidential Information provided hereunder if, in the reasonable opinion of the Receiving Party’s legal counsel, such disclosure is necessary to comply with the terms of this Agreement, or the requirements of any law. Where possible, the
Receiving Party shall notify the Disclosing Party of the Receiving Party’s intent to make such disclosure of Confidential Information pursuant to the provision of the preceding sentence sufficiently prior to making such disclosure so as to
allow the Disclosing Party adequate time to take whatever action the Disclosing Party may deem to be appropriate to protect the confidentiality of the information. 
  

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 9.2 Employee, Consultant and Advisor Obligations. Each Party agrees that it and its Affiliates
shall provide or permit access to Confidential Information received from the other Party only to the receiving Party’s employees, consultants, advisors and permitted subcontractors, sublicensees and sub-distributors, and to the employees,
consultants, advisors and permitted subcontractors, sublicensees and sub-distributors of the receiving Party’s Affiliates, who have a need to know such Confidential Information to assist the receiving Party with the activities contemplated by
this Agreement and who are subject to obligations of confidentiality and non-use with respect to such Confidential Information similar to the obligations of confidentiality and non-use of the receiving Party pursuant to Section 9.1; provided
that NPS and Nycomed shall each remain responsible for any failure by its Affiliates, and its and its Affiliates’ respective employees, consultants, advisors and permitted subcontractors, sublicensees and sub-distributors, to treat such
Confidential Information as required under Section 9.1 (as if such Affiliates, employees, consultants, advisors and permitted subcontractors, sublicensees and sub-distributors were Parties directly bound to the requirements of
Section 9.1). 
 9.3 Publicity. Upon the execution of this Agreement, the Parties shall jointly issue a press release regarding
the subject matter of this Agreement, the form of which shall be agreed between the Parties prior to execution. After such initial press release, neither Party shall issue a press release or public announcement or other disclosure relating to
Product or this Agreement without the prior written approval of the other Party, which approval shall not be unreasonably withheld. Notwithstanding the foregoing, a Party may make such disclosures as may be required by applicable law, provided that,
whenever possible, at least ten (10) days prior to any such disclosure, the disclosing Party shall notify the nondisclosing Party sufficiently prior to making such disclosure, and shall provide the nondisclosing Party with a written copy
thereof, so as to allow the nondisclosing Party adequate time to provide comment (which comments shall be given due consideration by the disclosing Party) and take whatever other action it may deem to be appropriate to protect the confidentiality of
the information being disclosed. Each Party agrees that it shall cooperate fully with the other with respect to all disclosures regarding this Agreement to the United States Securities and Exchange Commission and any other Governmental Authority,
including requests for confidential treatment of proprietary information of either Party included in any such disclosure. 
 9.4
Publications. Subject to the restrictions provided below, either Party may publish or present the results of Development carried out on Product, subject to the prior review by the other Party for patentability and protection of such other
Party’s Confidential Information. Each Party shall provide to the other Party the opportunity to review and approve any proposed abstracts, manuscripts or summaries of presentations that cover the results of Development of Product. Each Party
shall designate a Person or Persons who shall be responsible for approving such publications. Such designated person shall respond in writing promptly and in no event later than fifteen (15) days after receipt of the proposed material with
either approval of the proposed material or a specific statement of concern, based upon either the need to seek patent protection or concern regarding competitive disadvantage arising from the proposal. No reply shall be deemed as an approval of the
submitted application. In the event of concern, the submitting Party agrees not to submit such publication or to make such presentation that contains such information until the other Party is given a reasonable period of time (not to exceed ninety
(90) days) to seek patent protection for any material in such publication or presentation that it 

  

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believes is patentable or to resolve any other issues, and the submitting Party shall remove from such proposed publication any Confidential Information of
the other Party as requested by such other Party. With respect to any proposed abstracts, manuscripts or summaries of presentations by investigators or other Third Parties, such materials shall be subject to review under this Section 9.4 to the
extent that NPS or Nycomed, as the case may be, has the right to do so. 
 ARTICLE 10 
 REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS; 
 INDEMNIFICATION 
 10.1 Exclusivity Covenant. During the Term, neither NPS, Nycomed nor any of
their respective Affiliates shall directly or indirectly market, sell or offer for sale, or otherwise Commercialize, any compounds or products (other than the Compound and Product) in the Territory containing a glucagon-like peptide-2 or any analog
or derivative thereof (each, a “Competing Product”); provided, however, that if either Party obtains such a Competing Product through the acquisition of or merger with a Third Party or any other circumstances under which a Third
Party becomes an Affiliate of such Party, such Party shall have a period of one (1) year from the date of consummation of such acquisition or merger or other triggering event, to divest of or otherwise dispose of any ongoing economic interest
in such Competing Product in all Countries. 
 10.2 Mutual Representations and Warranties. NPS and Nycomed each represents and
warrants to the other Party that, as of the Effective Date: 
 (a) it has full corporate right, power and authority to
enter into this Agreement and to perform its respective obligations under this Agreement and that it has the right to grant to the other the licenses and sublicenses granted pursuant to this Agreement; 
 (b) except for any Regulatory Approvals, manufacturing approvals, antitrust approvals and/or similar approvals necessary for the
Development, Manufacture or Commercialization of Product, all necessary consents, approvals and authorizations of all Governmental Authorities and other persons required to be obtained by it as of the Effective Date in connection with the execution,
delivery and performance of this Agreement have been obtained; 
 (c) notwithstanding anything to the contrary in this
Agreement, the execution and delivery of this Agreement by such Party, the performance of such Party’s obligations hereunder and the licenses and sublicenses to be granted by such Party pursuant to this Agreement (a) do not conflict with
or violate any requirement of applicable laws or regulations existing as of the Effective Date and applicable to such Party and (b) do not conflict with, violate, breach or constitute a default under, and are not prohibited or materially
restricted by, any contractual obligations of such Party or any of its Affiliates existing as of the Effective Date; 
 (d) such Party is duly authorized, by all requisite corporate action, to execute and deliver this Agreement and the execution, delivery and performance of this Agreement by such Party does not require any shareholder action or
approval or the approval or consent of any 

  

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Third Party, and the Person executing this Agreement on behalf of such Party is duly authorized to do so by all requisite corporate action; and 

(e) this Agreement is a legal and valid obligation binding upon it and is enforceable against it in accordance with its terms.

 10.3 Additional NPS Representations and Warranties. NPS additionally represents and warrants to Nycomed as of the Effective Date
that: 
 (a) To NPS’ knowledge, there are no intellectual property rights of a Third Party that are not licensed
to Nycomed hereunder that could prevent the Manufacture, use or sale of Product in the Territory within the Field; 
 (b) (i) except as otherwise set forth in an Existing Third Party Agreement, NPS solely and exclusively Controls the NPS Intellectual Property and owns good title to the NPS Patents Rights, and, to NPS’ knowledge, no Third Party
has any right, title or interest (including without limitation all liens, security interests, charges and other encumbrances of any kind) in the NPS Intellectual Property, and, (ii) to NPS’ knowledge, the NPS Intellectual Property has not
been developed or obtained by NPS or its Affiliates in violation of any contractual obligation to any Third Party or by misappropriation from any Third Party; 
 (c) there are no pending Claims, judgments or settlements against or owed by NPS pending with respect to the NPS Intellectual
Property, and, to NPS’ knowledge, NPS has not received written notice of any threatened Claims or litigation seeking to invalidate any NPS Patent Rights; 
 (d) there are no investigations, inquiries or other proceedings pending before or threatened by any Governmental Authority with
respect to the NPS Intellectual Property; 
 (e) the development of Product has been conducted by NPS and its
Affiliates and, to the knowledge of NPS, its subcontractors in compliance in all material respects with all applicable laws, rules and regulations, including all public health and safety provisions of state law and regulations, permits, governmental
licenses, registrations, approvals, concessions, franchises, authorizations, orders, injunctions and decrees and applicable laws, rules and regulations; 
 (f) no publications or disclosure has been made by NPS or, to NPS’ knowledge, any Third Parties relating to Compound or Product that may invalidate or otherwise harm the Nycomed Patent Rights or NPS Patent
Rights; 
 (g) no officer of NPS involved in the negotiation or preparation of this Agreement is aware of any adverse
events having occurred in any study or other safety issue involving Product or Compound which is reasonably likely to prevent the further successful Development of Compound or Product; and 
 (h) the NPS Drug Safety Monitoring Board has been made aware of all adverse events during the Development of Compound or Product
and has not expressed concerns about the safety of Compound or Product nor has it recommended the termination of the further Development of Product or Compound. 
  

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 10.4 Existing Third Party Agreements. NPS additionally represents, warrants and covenants to
Nycomed that NPS has provided Nycomed with complete and correct copies of the Existing Third Party Agreements and the Existing Third Party Agreements are in full force and effect as of the Effective Date. NPS will use all reasonable efforts to
maintain in full force and effect and to fully perform its obligations thereunder in good faith and to keep Nycomed fully informed of any material development pertaining thereto. NPS shall not, without the prior written approval of Nycomed
(i) amend any Existing Third Party Agreements or (ii) make any election or exercise any right or option to terminate in whole or in part any Existing Third Party Agreement that in either case materially and adversely affect Nycomed’s
rights under this Agreement. The Existing Third Party Agreements are the only agreements as of the Effective Date between NPS and any Third Party that impose an obligation to pay royalties or any other amounts to a Third Party based on the
Development, Manufacture or Commercialization of Product. 
 10.5 Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN
THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY, AND EACH PARTY HEREBY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
AND NONINFRINGEMENT. EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION OF PRODUCT PURSUANT TO THIS AGREEMENT WILL BE SUCCESSFUL. 
 10.6 Indemnification. 
 (a) By Nycomed. Nycomed shall defend, indemnify and hold harmless NPS and its Affiliates and each of their officers, directors, shareholders, employees, successors and assigns from and against all Claims of Third Parties, and all
associated Losses, to the extent arising out of (i) Nycomed’s negligence or willful misconduct in performing any of its obligations under this Agreement, (ii) a breach by Nycomed of any of its representations, warranties, covenants or
agreements under this Agreement, or (iii) the Manufacture, use or Commercialization of Products in the Territory; provided, however, that in all cases referred to in this Section 10.6(a), Nycomed shall not be liable to indemnify NPS for
any Losses of NPS to the extent that such Losses of NPS were caused by: (x) the negligence or willful misconduct or wrongdoing of NPS; (y) any breach by NPS of its representations, warranties, covenants or agreements hereunder or
(z) a claim based on infringement of Third Party Intellectual Property Rights by the Product as it exists on the Effective Date. 
 (b) By NPS. NPS shall defend, indemnify and hold harmless Nycomed and its Affiliates and each of their officers, directors, shareholders, employees, successors and assigns from and against all Claims of Third
Parties, and all associated Losses, to the extent arising out of (a) NPS’ negligence or willful misconduct in performing any of its obligations under this Agreement or (b) a breach by NPS of any of its representations, warranties,
covenants 

  

 42 

 
or agreements under this Agreement; provided, however, that in all cases referred to in this Section 10.6(b), NPS shall not be liable to indemnify
Nycomed for any Losses of Nycomed to the extent that such Losses of Nycomed were caused by: (x) the negligence or willful misconduct or wrongdoing of Nycomed or (y) any breach by Nycomed of its representations, warranties, covenants or
agreements hereunder. 
 10.7 Procedure for Indemnification. 
 (a) Notice. Each Party will notify promptly the other if it becomes aware of a Claim (actual or potential) by any Third Party (a
“Third Party Claim”) for which indemnification may be sought by that Party and will give such information with respect thereto as the other Party shall reasonably request. If any proceeding (including any governmental investigation)
is instituted involving any Party for which such Party may seek an indemnity under Section 10.6 (the “Indemnified Party”), the Indemnified Party shall not make any admission or statement concerning such Third Party Claim, but
shall promptly notify the other Party (the “Indemnifying Party”) orally and in writing and the Indemnifying Party and Indemnified Party shall meet to discuss how to respond to any Third Party Claims that are the subject matter of
such proceeding. The Indemnifying Party shall not be obligated to indemnify the Indemnified Party to the extent any admission or statement made by the Indemnified Party or any failure by such Party to notify the Indemnifying Party of the Claim
materially prejudices the defense of such Claim. 
 (b) Defense of Claim. If the Indemnifying Party elects to defend
or, if local procedural rules or laws do not permit the same, elects to control the defense of a Third Party Claim, it shall be entitled to do so provided it gives notice to the Indemnified Party of its intention to do so within forty-five
(45) days after the receipt of the written notice from the Indemnified Party of the potentially indemnifiable Third Party Claim (the “Litigation Condition”); provided that the Indemnifying Party expressly agrees the
Indemnifying Party shall be responsible for satisfying and discharging any award made to the Third Party as a result of such proceedings or settlement amount agreed with the Third Party in respect of the Third Party Claim without prejudice to any
provision in this Agreement or right at law which will allow the Indemnifying Party subsequently to recover any amount from the Indemnified Party to the extent the liability under such settlement or award was attributable to the Indemnified Party.
Subject to compliance with the Litigation Condition, the Indemnifying Party shall retain counsel reasonably acceptable to the Indemnified Party (such acceptance not to be unreasonably withheld, refused, conditioned or delayed) to represent the
Indemnified Party and shall pay the fees and expenses of such counsel related to such proceeding. In any such proceeding, the Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of the Indemnified Party. The Indemnified Party shall not settle any Claim for which it is seeking indemnification without the prior consent of the Indemnifying Party which consent shall not be unreasonably withheld, refused, conditioned or
delayed. The Indemnified Party shall, if requested by the Indemnifying Party, cooperate in all reasonable respects in the defense of such Claim that is being managed and/or controlled by the Indemnifying Party. The Indemnifying Party shall not,
without the written consent of the Indemnified Party (which consent shall not be unreasonably withheld, refused, conditioned or delayed), effect any settlement of any pending or threatened proceeding in which the Indemnified Party is, or based on
the same set of facts could have been, a party and indemnity could have been sought 

  

 43 

 
hereunder by the Indemnified Party, unless such settlement includes an unconditional release of the Indemnified Party from all liability on Claims that are
the subject matter of such proceeding. If the Litigation Condition is not met, then neither Party shall have the right to control the defense of such Third Party Claim and the Parties shall cooperate in and be consulted on the material aspects of
such defense at the each Party’s own expense; provided that if the Indemnifying Party does not satisfy the Litigation Condition, the Indemnifying Party may at any subsequent time during the pendency of the relevant Third Party Claim irrevocably
elect, if permitted by local procedural rules or laws, to defend and/or to control the defense of the relevant Third Party Claim so long as the Indemnifying Party also agrees to pay the reasonable fees and costs incurred by the Indemnified Party in
relation to the defense of such Third Party Claim from the inception of the Third Party Claim until the date the Indemnifying Party assumes the defense or control thereof. 
 10.8 Assumption of Defense. Notwithstanding anything to the contrary contained herein, an Indemnified Party shall be entitled to assume the
defense of any Third Party Claim with respect to the Indemnified Party, upon written notice to the Indemnifying Party pursuant to this Section 10.8, in which case the Indemnifying Party shall be relieved of liability under Section 10.6(a)
or 10.6(b), as applicable, solely for such Third Party Claim and related Losses. 
 ARTICLE 11 
 TERM AND TERMINATION 
 11.1
Term. Unless terminated earlier in accordance with this Article 11, this Agreement shall remain in force for the period commencing on the Effective Date and ending on the later of, on a Country-by-Country and Product-by-Product basis,
(a) twenty (20) years from First Commercial Sale of such Product in such Country and (b) the expiration or termination of the last to expire Valid Claim of a Patent Right Covering such Product in such Country (the
“Term”). 
 11.2 Termination. 
 (a) Termination During Termination Period. At any time during the Termination Period, Nycomed may terminate this Agreement
immediately by providing a Termination Notice to NPS. 
 (b) Termination at Will. Prior to the First Commercial Sale of
Product in the Territory, Nycomed may terminate this Agreement by providing one hundred eighty (180) days’ written notice to NPS. After the First Commercial Sale of Product in the Territory, Nycomed may terminate this Agreement by
providing three hundred sixty-five (365) days’ written notice to NPS. At any time after receipt of a termination notice from Nycomed pursuant to this Section 11.2(a), NPS may elect to terminate this Agreement anytime prior to the
requisite time period and, upon such election, the effects of termination set forth in Section 11.3(a) shall apply. 
 (c) Termination For Material Breach. Upon any material breach of this Agreement by a Party (the “Breaching Party”), the other Party (the “Non-Breaching Party”) may terminate this Agreement by
providing thirty (30) days’ written notice to the Breaching Party in the case of a breach of a payment obligation and sixty (60) days’ written notice to the 

  

 44 

 
Breaching Party in the case of any other material breach. The termination shall become effective at the end of the notice period unless the Breaching Party
cures such breach during such notice period; provided that the Non-Breaching Party may, by notice to the Breaching Party, designate a later date for such termination in order to facilitate an orderly transition of activities relating to Product.
Notwithstanding the foregoing, (i) if such breach, by its nature, is incurable, the Non-Breaching Party may terminate this Agreement immediately upon written notice to the Breaching Party and (ii) if such breach (other than a payment
breach), by its nature, is curable, but not within the forgoing cure period, then such cure period shall be extended if the Breaching Party provides a written plan for curing such breach to the Non-Breaching Party and uses Diligent Efforts to cure
such breach in accordance with such written plan; provided that no such extension shall exceed ninety (90) days without the consent of the Non-Breaching Party. 
 (d) Termination For Insolvency. To the extent permitted by applicable law, if either Party shall become insolvent, or shall make or
seek to make or arrange an assignment for the benefit of creditors, or if proceedings in voluntary or involuntary bankruptcy shall be initiated by, on behalf of or against such Party (and, in the case of any such involuntary proceeding, not
dismissed within ninety (90) days), or if a receive or trustee of such Party’s property shall be appointed and not discharged within ninety (90) days, the other Party may terminate this Agreement by providing thirty
(30) days’ written notice to the other Party. The termination shall become effective at the end of the notice period. 
 11.3
Effects of Termination. 
 (a) Certain Rights and Obligations Upon Termination At Will, if Nycomed is the Breaching
Party or if Nycomed Becomes Insolvent. If Nycomed terminates this Agreement in accordance with Section 11.2(b) or if NPS terminates this Agreement in accordance with Section 11.2(c) or 11.2(d), then: 
 (i) Licenses. The licenses granted to Nycomed in Section 3.1 shall terminate; 
 (ii) Assignments. All of Nycomed’s rights and interests in the Co-Owned Patent Rights shall revert to NPS and Nycomed shall
have no further ownership interest in the Co-Owned Patent Rights. Nycomed shall execute any assignments or other documentation necessary or desirable to transfer such Co-Owned Patent Rights to NPS. 
 (iii) Return of Materials. Nycomed shall as promptly as commercially practicable transfer to NPS or NPS’ designee at
Nycomed’s expense (A) all of Nycomed’s right, title and interest in and to any Product Trademarks (including any goodwill associated therewith), any registrations and design patents for any of the foregoing and any internet domain
name registrations for such Product Trademarks and slogans; (B) possession and ownership of all governmental or regulatory correspondence, conversation logs, filings and approvals (including all Regulatory Approvals) relating to the
Development, Manufacture or Commercialization of Product in Nycomed’s possession or control, (C) copies of all data, reports, records and materials in Nycomed’ possession or control relating to the Development, Manufacture or
Commercialization of Product, including all non-clinical and clinical data relating to Product, and (D) all records and materials in Nycomed’s possession or control 

  

 45 

 
containing Confidential Information of NPS (provided that Nycomed may keep one copy of such materials for archival purposes only); provided that in the case
of clauses (C) and (D) above, such materials are only required to be transferred to the extent containing information for which NPS has funded Development Costs under a Joint Development Plan or pursuant to a buy-in right under this
Agreement; 
 (iv) Manufacturing Activities. Nycomed shall (A) supply NPS or its designee with clinical and
commercial quantities of Product for the Territory for the shorter of (1) [*] and (2) [*] from the effective date of such termination; provided, however, that NPS shall reimburse Nycomed for Nycomed’s [*] with respect to Product; and
(B) transfer or cause to be transferred the completed Manufacturing process (together with any unique mold or tooling used solely in connection therewith) for Product to NPS or NPS’ designee upon NPS’ request, and at NPS’ cost
and expense, and shall cooperate with NPS to effect the transition of such Manufacturing responsibilities; 
 (v)
Exclusivity Obligation. Nycomed’s obligation under Section 10.1 shall continue for a period of three (3) years after the effective date of such termination, but NPS’ obligation shall terminate; 
 (vi) Appointment as Distributor. Following termination and to the extent allowable by applicable law, Nycomed shall appoint NPS as
its exclusive distributor of Product in the Territory, grant NPS the right to appoint sub-distributors and thereafter, at NPS’ option, to supply Product to NPS in the Territory on terms no less favorable than those on which Nycomed supplied
Product prior to such termination to its most favored distributor in each Country of the Territory, until such time as all Regulatory Approvals in the Territory have been transferred to NPS, NPS has obtained all necessary Manufacturing approvals and
NPS has procured or developed its own source of Product supply, provided that NPS shall indemnify, defend and hold Nycomed and its Affiliates harmless from all Claims, damages, and liabilities arising out of NPS’ use or sale of Product in the
Territory thereafter, unless attributable to Nycomed’s failure to Manufacture Product (where and to the extent performed by Nycomed) in accordance with applicable specifications; 
 (vii) Third Party Agreements. If NPS reasonably requests, and to the extent within Nycomed’s control, Nycomed shall transfer
to NPS any Third Party agreements relating to the Development, Manufacture or Commercialization of Product to which Nycomed is a party, provided that NPS agrees to assume and perform all obligations arising under such agreements after the date of
such assignment; 
 (viii) Disclosure and Delivery. Subject to Section 11.3(a)(iii) above, Nycomed shall transfer
to NPS any Nycomed Know-How, to the extent then used in connection with the Manufacture, Commercialization or Development of Product. Such transfer shall be effected by the delivery of documents, to the extent such Know-How is not embodied in
documents, and to the extent that such Know-How is not fully embodied in documents, Nycomed shall make its employees and agents who have knowledge of such Know-How in addition to that embodied in documents available to NPS for interviews,
demonstrations and training to effect such transfer in a manner sufficient to enable NPS to practice such Know-How as theretofore practiced by Nycomed; 
  

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 (ix) Sublicensees. Each of Nycomed’s sublicensees with respect to Product
shall continue to have the rights and license set forth in their sublicense agreements, subject to the continued performance of the obligations thereunder; provided, however that such sublicensee agrees in writing that NPS is entitled to enforce all
relevant terms and conditions of such sublicense agreement directly against such sublicensee; and provided, further that such sublicensee is not then in breach of its sublicense agreement; 
 (x) Disposition of Inventory. NPS shall have the option, exercisable within thirty (30) days following the effective date of
such termination, to purchase any inventory of Product affected by such termination at Nycomed’s [*] therefor. NPS may exercise such option by written notice to Nycomed during such thirty (30) day period. Upon such exercise, the Parties
will establish mutually agreeable payment and delivery terms for the sale of such inventory. If NPS does not exercise such option during such thirty (30) day period, of if NPS provides Nycomed with its intention not to exercise such option,
then Nycomed and its Affiliates and sublicensees will be entitled, during the period ending on the last day of the sixth (6th) full month following the effective date of such termination, to sell any inventory of Product affected by such
termination that remain on hand as of the effective date of such termination, so long as Nycomed pays to NPS the then-applicable portion of the Product Marketing Contribution or royalties on Net Sales, as applicable, in accordance with the terms and
conditions set forth in this Agreement; 
 (xi) Development Costs. Nycomed shall continue to fund its share of all
budgeted Development Costs for six (6) months following provision by NPS of such notice of termination (inclusive of any cure period), at which point its obligations with respect thereto shall cease; and 
 (xii) Cooperation. Nycomed shall execute all documents and take all such further actions as may be reasonably requested by NPS in
order to give effect to the foregoing clauses (i) through (x). 
 (b) Certain Rights and Obligations Upon Termination
if NPS is the Breaching Party or Becomes Insolvent. Without limiting any other legal or equitable remedies that Nycomed may have, if Nycomed terminates this Agreement in accordance with Section 11.2(c) or 11.2(d), then: 
 (i) Return of Materials. Nycomed shall as promptly as commercially practicable transfer to NPS or NPS’ designee at NPS’
expense (A) all of Nycomed’ right, title and interest in and to any Product Trademarks (including any goodwill associated therewith), any registrations and design patents for any of the foregoing and any internet domain name registrations
for such Product Trademarks and slogans; (B) possession and ownership of all governmental or regulatory correspondence, conversation logs, filings and approvals (including all Regulatory Approvals) relating to the Development, Manufacture or
Commercialization of Product in Nycomed’s possession or control, (C) copies of all data, reports, records and materials in Nycomed’s possession or control relating to the Development, Manufacture or Commercialization of Product,
including all non-clinical and clinical data relating to Product, and (D) all records and materials in Nycomed’s possession or control containing Confidential Information of NPS (provided that Nycomed may keep one copy of such 

  

 47 

 
materials for archival purposes only); provided that in the case of clauses (C) and (D) above, such materials are only required to be transferred
to the extent containing information for which NPS has funded Development Costs under a Joint Development Plan or pursuant to a buy-in right under this Agreement; 
 (ii) Manufacturing Activities. Nycomed shall (A) supply NPS with clinical and commercial quantities of Product for the
Territory for the shorter of (1) the period until NPS or NPS’ designee has established and validated a Manufacturing process for Product and is approved to Manufacture clinical trial and commercial supplies of Product and
(2) twenty-four (24) months from the effective date of such termination; provided, however, that NPS shall reimburse Nycomed for [*] percent [*] of Nycomed’s [*] with respect to Product; and (B) transfer or cause to be
transferred the completed Manufacturing process (together with any unique mold or tooling used solely in connection therewith) for Product to NPS or NPS’ designee upon NPS’ request, and at NPS’ cost and expense, and shall cooperate
with NPS to effect the transition of such Manufacturing responsibilities; 
 (iii) Exclusivity Obligation. NPS’
obligation under Section 10.1 shall continue for a period of three (3) years after the effective date of such termination, but Nycomed’s obligation shall terminate; 
 (iv) Appointment as Distributor. Following termination and to the extent allowable by applicable law, Nycomed shall appoint NPS as
its exclusive distributor of Product in the Territory, grant NPS the right to appoint sub-distributors and thereafter, at NPS’ option, to supply Product to NPS in the Territory and shall cooperate to transfer all Regulatory Approvals in the
Territory to NPS at NPS’ expense, provided that NPS shall indemnify, defend and hold Nycomed and its Affiliates harmless from all Claims, damages, and liabilities arising out of NPS’ use or sale of Product in the Territory thereafter,
unless attributable to Nycomed’s failure to Manufacture Product (where and to the extent performed by Nycomed) in accordance with applicable specifications; 
 (v) Third Party Agreements. If NPS reasonably requests, and to the extent within Nycomed’s control, Nycomed shall transfer to
NPS any Third Party agreements relating to the Development, Manufacture or Commercialization of Product to which Nycomed is a party, provided that NPS agrees to assume and perform all obligations arising under such agreements after the date of such
assignment; 
 (vi) Disclosure and Delivery. Subject to Section 11.3(b)(i) above, Nycomed shall transfer to NPS
any Nycomed Know-How, to the extent then used in connection with the Manufacture, Commercialization or Development of Product. Such transfer shall be effected by the delivery of documents, to the extent such Know-How is not embodied in documents,
and to the extent that such Know-How is not fully embodied in documents, Nycomed shall make its employees and agents who have knowledge of such Know-How in addition to that embodied in documents available to NPS for interviews, demonstrations and
training to effect such transfer in a manner sufficient to enable NPS to practice such Know-How as theretofore practiced by Nycomed; 
  

 48 

 (vii) Sublicensees. Each of Nycomed’s sublicensees with respect to Product
shall continue to have the rights and license set forth in their sublicense agreements, subject to the continued performance of the obligations thereunder; provided, however that such sublicensee agrees in writing that NPS is entitled to enforce all
relevant terms and conditions of such sublicense agreement directly against such sublicensee; and provided, further that such sublicensee is not then in breach of its sublicense agreement; 
 (viii) Disposition of Inventory. NPS shall within thirty (30) days following the effective date of such termination purchase
any inventory of Product affected by such termination at [*] percent [*] of [*] therefor; 
 (ix) Development Costs.
Nycomed shall have no obligation to continue to fund what would have been its share of all budgeted Development Costs following delivery of notice of termination; provided, however, that Nycomed shall be responsible to NPS for all costs of
appropriately closing any ongoing clinical studies for which Nycomed is the sponsor or, at NPS’ or any Future Partner’s election, transferring such clinical studies to NPS or its Future Partner, as the case may be; 
 (x) Termination Costs. NPS shall upon Nycomed’s reasonably documented requested reimburse Nycomed for all reasonable
out-of-pocket costs incurred in returning the materials and deliverables to NPS pursuant to subsections (i), (vi) and (vii) above; and 
 (xi) Cooperation. Nycomed shall execute all documents and take all such further actions at NPS’ expense as may be reasonably requested by NPS in order to give effect to the foregoing clauses
(i) through (x). 
 (c) Certain Rights and Obligations Upon Termination by Nycomed during the Termination Period.
If Nycomed terminates this Agreement during the Termination Period in accordance with Section 11.2(a), then all rights and obligations between the Parties shall terminate as of the date NPS receives a Termination Notice hereunder; provided,
however, that, notwithstanding the foregoing, Nycomed shall continue to be obligated to pay to NPS the signing fee in Section 7.1 and the terms of Sections 11.3(b)(b)(i) and 11.3(b)(b)(vi) shall apply. The Parties further agree to execute all
documents and take all such further actions as may be reasonably required in order to give effect to the continuing obligations under this Section 11.3(c). 
 11.4 Continuation of Agreement if NPS Becomes Insolvent. In lieu of termination by Nycomed under Section 11.2(d) with the effects set forth in Section 11.3(b), Nycomed shall have the option to
continue this Agreement in full force and effect. Any licenses or rights granted under or pursuant to this Agreement by NPS to Nycomed are, and shall otherwise be deemed to be, for purposes of Section 365(n) of Title 11, US Code (the
“Code”), licenses of rights to “intellectual property” as defined under Section 101(35A) o the Code. The Parties agree that during the Term, Nycomed, as licensee of rights under this Agreement, shall retain and may
fully exercise all of its rights and elections under the Code, subject to the continued performance of its obligations under this Agreement. 
  

 49 

 11.5 License Grant Effective Upon Expiration of Term. Solely upon the expiration of the Term, and
not including any earlier termination permitted hereunder, Nycomed shall have a non-exclusive, fully paid, royalty-free right and license to Manufacture, Commercialize and import Compound, Product and the Device in the Territory in the Field.

 11.6 Survival. In the event of any expiration or termination of this Agreement, all financial obligations under Article 7 owed as
of the effective date of such expiration or termination shall remain in effect, and (b) the provisions set forth in Article 9 and Article 13 and in Sections, 10.1, 10.5, 10.6, 11.2, and 11.3, and all other provisions contained in this Agreement
that by their terms survive expiration or termination of this Agreement, shall survive. In addition, in the event of an expiration of this Agreement (but not in the event of any termination of this Agreement pursuant to Section 11.2), the
licenses granted in Section 3.1 shall survive as perpetual, fully paid-up, non-royalty-bearing, nonexclusive licenses. 
 ARTICLE 12

 FINAL DECISION-MAKING; DISPUTE RESOLUTION 
 12.1 Arbitration. Any dispute arising out of or relating to this Agreement that is not resolved by the Management Committee, including without limitation the interpretation of this Agreement and any breach or
alleged breach of this Agreement, shall be resolved through binding arbitration as follows: 
 (a) A Party may submit
such dispute to arbitration by notifying the other Party, in writing, of such dispute. Within thirty (30) days after receipt of such notice, the Parties shall designate in writing a single arbitrator to resolve the dispute; provided, however,
that if the Parties cannot agree on an arbitrator within such thirty (30)-day period, the arbitrator shall be selected by the office of the American Arbitration Association (the “AAA”). The arbitrator shall be a lawyer knowledgeable
and experienced in the law concerning the subject matter of the dispute, and shall not be an Affiliate, employee, consultant, officer, director or stockholder of either Party or of an Affiliate of either Party. 
 (b) Within thirty (30) days after the designation of the arbitrator, the arbitrator and the Parties shall meet, at which time
the Parties shall be required to set forth in writing all disputed issues and a proposed ruling on the merits of each such issue. 
 (c) The arbitrator shall set a date for a hearing, which shall be no later than forty-five (45) days after the submission of written proposals pursuant to Section 12.1(b), to discuss each of the issues identified by the
Parties. The Parties shall have the right to be represented by counsel. Except as provided herein, the arbitration shall be governed by the Commercial Arbitration Rules of the AAA; provided, however, that the Federal Rules of Evidence shall apply
with regard to the admissibility of evidence and the arbitration shall be conducted by a single arbitrator. 
 (d) The
arbitrator shall use his or her best efforts to rule on each disputed issue within thirty (30) days after the completion of the hearings described in this Section 12.1. The determination of the arbitrator as to the resolution of any
dispute shall be binding and conclusive upon all Parties. All rulings of the arbitrator shall be in writing and shall be delivered to the Parties. 
  

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 (e) The (i) attorneys’ fees of the Parties in any arbitration,
(ii) fees of the arbitrator and (iii) costs and expenses of the arbitration shall be borne by the Parties as determined by the arbitrator. 
 (f) Any arbitration pursuant to this Section 12.1 shall be conducted in New York, New York. 
 (g) Nothing in this Section 12.1 shall be construed as limiting in any way the right of a Party to seek injunctive relief with respect to any actual or threatened breach of this Agreement from, or to bring
an action in aid of arbitration in, a court of law. 
 ARTICLE 13 
 MISCELLANEOUS 
 13.1 Choice of Law. This Agreement shall be governed by
and interpreted under, the laws of the State of New York excluding: (a) its conflicts of laws principles; (b) the United Nations Conventions on Contracts for the International Sale of Goods; (c) the 1974 Convention on the Limitation
Period in the International Sale of Goods (the “1974 Convention”); and (d) the Protocol amending the 1974 Convention, done at Vienna April 11, 1980. 
 13.2 Notices. Any notice or report required or permitted to be given or made under this Agreement by one of the Parties to the other shall be in
writing and shall be deemed to have been delivered upon personal delivery or (a) in the case of notices provided between Parties in the continental United States, four days after deposit in the mail or the business day next following deposit
with a reputable overnight courier and (b) in the case of notices provided by telecopy (which notice shall be followed immediately by an additional notice pursuant to clause (a) above if the notice is of a default hereunder), upon
completion of transmissions to the addressee’s telecopier, as follows (or at such other addresses or facsimile numbers as may have been furnished in writing by one of the Parties to the other as provided in this Section 13.2): 

 

			
	If to NPS:	  	 NPS Allelix Corp.
 c/o NPS Pharmaceuticals,
Inc.
 Morris Corporate Center
 4th Floor, Building B

300 Interpace Parkway
 Parsippany, NJ 07054
 United States of America
 Facsimile No.: 973.316.6463
  
 Attention: Chief Executive Officer

  

 51 

			
	With a copy to:	  	 NPS Pharmaceuticals, Inc.
 Office of General Counsel

  
 Morris Corporate Center 1
 4th Floor, Building B
 300 Interpace Parkway
 Parsippany, NJ 07054
 United States of America
  
 Attention: General Counsel
 Facsimile No.: 973.316.6463

		
	And with a copy to:	  	 Morgan, Lewis & Bockius LLP
 502 Carnegie Center

 Princeton, New Jersey 08540
  
 Attention: Randall B. Sunberg
 Facsimile No.:
609.919.6701

		
	If to Nycomed:	  	 Nycomed GmbH
 Byk Gulden Str. 2
 78467 Konstanz
  
 Attention: General Counsel
 Facsimile No.: +497531842982

 13.3 Severability. If, under applicable law or regulation, any provision of this Agreement
is invalid or unenforceable, or otherwise directly or indirectly affects the validity of any other material provision(s) of this Agreement (such invalid or unenforceable provision, a “Severed Clause”), it is mutually agreed that
this Agreement shall endure except for the Severed Clause. The Parties shall consult one another and use their best efforts to agree upon a valid and enforceable provision that is a reasonable substitute for the Severed Clause in view of the intent
of this Agreement. 
 13.4 Captions. All captions herein are for convenience only and shall not be interpreted as having any
substantive meaning. 
 13.5 Integration. This Agreement constitutes the entire agreement between the Parties hereto with respect to
the within subject matter and supersedes all previous agreements, whether written or oral. This Agreement may be amended only in writing signed by properly authorized representatives of each of NPS and Nycomed. 
 13.6 Independent Contractors; No Agency. Neither Party shall have any responsibility for the hiring, firing or compensation of the other
Party’s employees or for any employee benefits. No employee or representative of a Party shall have any authority to bind or obligate the other Party to this Agreement for any sum or in any manner whatsoever, or to create or impose any
contractual or other liability on the other Party without said Party’s written approval. For all purposes, and notwithstanding any other provision of this Agreement to the contrary, Nycomed’ legal relationship under this Agreement to NPS
shall be that of independent contractor. 
  

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 13.7 Assignment; Successors. Neither NPS nor Nycomed may assign this Agreement in whole or in
part, nor any rights hereunder, without the prior written consent of the other Party; provided that (a) either Party may assign this Agreement to an Affiliate, (b) this Agreement may be assigned by a Party to a Third Party in connection
with a sale or transfer of all or substantially all of such Party’s business or assets to which this Agreement relates and (c) NPS may assign its rights to receive the royalty payments under Section 7.4 to a Third Party. Any
assignment made other than in accordance with the immediately preceding sentence shall be wholly void and invalid, and the assignee in any such assignment shall acquire no rights whatsoever, and the non-assigning Party shall not recognize, nor shall
it be required to recognize, such assignment. This Section 13.7 limits both the right and the power to assign this Agreement and/or rights under this Agreement. This Agreement shall be binding upon, and shall inure to the benefit of, all
permitted successors and assigns. 
 13.8 Expenses. Each Party shall pay its own expenses (including legal and accounting fees)
incurred in connection with the negotiation and execution of this Agreement and any related documentation. 
 13.9 Execution in
Counterparts; Facsimile Signatures. This Agreement may be executed in counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, and both of which counterparts, taken together, shall constitute
one and the same instrument even if both Parties have not executed the same counterpart. Signatures provided by facsimile transmission shall be deemed to be original signatures. 
 13.10 No Consequential or Punitive Damages. NEITHER PARTY HERETO WILL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY,
PUNITIVE OR MULTIPLE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 13.10
IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY WITH RESPECT TO THIRD PARTY CLAIMS. 
 13.11
Non-Solicitation. During the Term, and for a period of one (1) year thereafter, neither Party shall either directly or indirectly solicit, recruit, induce, encourage or attempt to induce or encourage any employee of the other Party or any
independent contractor primarily dedicated to the Development, Manufacture or Commercialization of Product to terminate his or her employment with such other Party and become employed by or consult for such other Party whether or not such employee
is a full-time employee of such other Party, and whether or not such employment is pursuant to a written agreement or is at-will. 
 13.12
Transfer of NPS Intellectual Property; NPS Allelix No Longer a Party. NPS Allelix and NPS US shall each be Party to this Agreement for so long as either NPS Allelix or NPS US Controls any rights in or to the NPS Intellectual Property. At such
time as NPS Allelix transfers all of its rights in the NPS Intellectual Property to NPS US, NPS Allelix shall no longer be a Party hereunder and all references to NPS contained in this Agreement shall refer solely to NPS US; provided, however, that
NPS Allelix shall not be excused from any of its obligations under this Agreement to the extent that NPS Allelix is required for the fulfillment of any such obligations hereunder. 
 [Signature Page Follows] 
  

 53 

 IN WITNESS WHEREOF, NPS and Nycomed have caused this Agreement to be duly executed by their authorized
representatives under seal, in duplicate on the Effective Date. 
  

					
	NPS ALLELIX CORP.
		
	By:	 	 
		 	Name:	 	N. Anthony Coles
		 	Title:	 	Chief Executive Officer

  

					
	NPS PHARMACEUTICALS, INC.
		
	By:	 	 
		 	Name:	 	N. Anthony Coles
		 	Title:	 	Chief Executive Officer

  

			
	NYCOMED GmbH
		
	 By:
	 	 
		 	Name:
		 	Title:
		
	 By:
	 	 
		 	Name:
		 	Title:

 [SIGNATURE PAGE TO DISTRIBUTION
AND LICENSE AGREEMENT] 
  

 SCHEDULE 1.10 
 Compound Description 
 STATEMENT ON A NONPROPRIETARY NAME ADOPTED BY THE USAN COUNCIL:

  

			
	 USAN
	  	TEDUGLUTIDE
		
	 PRONUNCIATION
	  	te due’ gloo tide
		
	 THERAPEUTIC CLAIM
	  	treatment of intestinal diseases characterized by chemical or surgical damage of the intestinal epithelium such as Short Bowel Syndrome (SBS) or damage to the intestinal epithelium due to
disease (glucagon-like peptide-2 (GLP-2) analog)

 CHEMICAL NAMES 
  

	 	1.)	ALX 0600 ( 2-glycine-1-33-glucagon-like peptide II (human) ) 

  

	 	2.)	[2-glycine]-1-33-glucagon-like peptide II (human) 

 STRUCTURAL
FORMULA 
 

 
  

			
	 MOLECULAR FORMULA
	  	C164H252N44O55S
		
	 MOLECULAR WEIGHT
	  	3752
		
	 TRADEMARK
	  	Unknown as yet
		
	 MANUFACTURER
	  	NPS Pharmaceuticals
		
	 CODE DESIGNATION
	  	ALX 0600
		
	 CAS REGISTRY NUMBER
	  	287714-30-1

 SCHEDULE 1.55 
 Royalty-Bearing Patents 
 [*] 

 SCHEDULE 4.2(c) 
 Initial Development Plan 
 [*] 

 SCHEDULE 4.5(b)(iii) 
 Access to Data for Regulatory Approval Applications 
 [*] 

 SCHEDULE 6.1 
 Third Party Manufacturers 
 [*] 

 SCHEDULE 6.3 
 Technology Transfer 
 [*]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]