Document:

Form of Indemnification Agreement

 Exhibit 10.3 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (“Agreement”) is made as of
                 , 2006 by and between NOVACEA, INC., a Delaware corporation (the “Company”), and
                             (“Indemnitee”). 
  
 RECITALS 
  
 WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers or
in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the
corporation; 
  
 WHEREAS, the Board of Directors of the Company
(the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its
subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being
increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The bylaws of the Company require
indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (“DGCL”). The bylaws and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

  
 WHEREAS, the uncertainties relating to such insurance and to
indemnification have increased the difficulty of attracting and retaining such persons; 
  
 WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to
assure such persons that there will be increased certainty of such protection in the future; 
  
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so
that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
  
 WHEREAS, this Agreement is a supplement to and in furtherance of the By-laws of the Company and any resolutions adopted pursuant thereto, and shall not be
deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; 

 WHEREAS, Indemnitee does not regard the protection available under the Company’s By-laws and
insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to
serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified; and 
  
 WHEREAS, the Company entered into that certain Indemnification Agreement with the Indemnitee, dated as of
                     (the “Prior Agreement”), and the Company and the Indemnitee desire this Agreement to supersedes the Prior
Agreement and any other existing indemnification agreement between Indemnitee and the Company. 
  
 NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 
  
 Section 1. Services to the Company. Indemnitee will serve or continue to serve as an officer, director or key
employee of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his resignation or is terminated by the Company. 
  
 Section 2. Definitions. As used in this Agreement: 
  

(a) A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following
events: 
  
 i. Acquisition of Stock by Third Party. Any Person
(as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company’s then outstanding
securities; 
  
 ii. Change in Board of Directors. During any
period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person
who has entered into an agreement with the Company to effect a transaction described in Sections 2(a)(i), 2(a)(iii) or 2(a)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at
least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the
members of the Board; 
  
 iii. Corporate Transactions. The
effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after
such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; 
  

 -2- 

 iv. Liquidation. The approval by the stockholders of the Company of a complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and 
  
 v. Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement. 
  
 For purposes of this Section 2(a), the following terms shall have the following
meanings: 
  
 (A) “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended. 
  
 (B) “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under
an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 
  
 (C) “Beneficial Owner” shall have the meaning
given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with
another entity. 
  
 (b) “Corporate Status” describes the
status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, limited liability company, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was
serving at the request of the Company. 
  
 (c) “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
  
 (d) “Enterprise” shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee
benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary. 
  
 (e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, being or preparing to be a witness in, or 

  

 -3- 

 
otherwise participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding,
including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 13(d) only, Expenses incurred by Indemnitee in
connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or
fines against Indemnitee. 
  
 (f) “Independent Counsel”
means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify
such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
  
 (g) The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism,
investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, in which
Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or of any action on his part while acting as director or
officer of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other
enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement; except one initiated by an
Indemnitee to enforce his rights under this Agreement. 
  
 (h)
Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the
Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants
or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner “not opposed to
the best interests of the Company” as referred to in this Agreement. 
  

 -4- 

 Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in
accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf
in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding
had no reasonable cause to believe that his conduct was unlawful. 
  
 Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or
a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually
and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Company. No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent
that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification. 
  
 Section 5.
Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a
participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred
by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in such Proceeding, the Company also shall
indemnify Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful. For purposes of this Section and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
  
 Section 6. Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to
the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith. 
  

 -5- 

 Section 7. Additional Indemnification. 
  
 (a) Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall
indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor)
against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding. 
  
 (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be
limited to: 
  
 i. to the fullest extent permitted by the
provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and 
  
 ii. to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date
of this Agreement that increase the extent to which a corporation may indemnify its officers and directors. 
  
 Section 8. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any
indemnity in connection with any claim made against Indemnitee: 
  
 (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity
provision; or 
  
 (b) for (i) an accounting of profits made
from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(a) hereof) or similar provisions of state statutory law or common
law, or (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case
under the Exchange Act; or 
  
 (c) except as provided in
Section 13(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors,
officers, employees or other indemnitees, unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law. 
  

 -6- 

 Section 9. Advances of Expenses. Notwithstanding any provision of this Agreement to the
contrary, the Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty (30) days after the receipt by the Company of a
statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to
repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right
of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall
constitute an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. This Section 9 shall not apply to any claim
made by Indemnitee for which indemnity is excluded pursuant to Section 8. 
  
 Section 10. Procedure for Notification and Defense of Claim. 
  
 (a) Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of
Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the
Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably
necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such action, suit or proceeding. The omission by Indemnitee to notify the Company hereunder will not relieve the Company
from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the
Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification. 
  
 (b) The Company will be entitled to participate in the Proceeding at its own expense. 
  
 Section 11. Procedure Upon Application for Indemnification. 
  
 (a) Upon written request by Indemnitee for indemnification pursuant to the
Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following methods, which shall be at the election of Indemnitee: (i) by a
majority vote of the Disinterested Directors, even though less than a quorum of the Board 

  

 -7- 

 
or (ii) by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee. Indemnitee shall cooperate with the
person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so
cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom. 
  
 (b) In the event the
determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as provided in this Section 11(b). If a Change in Control shall not have
occurred, the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred,
the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board of Directors, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the
Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the
Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is
without merit. If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have
been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent
Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act
as Independent Counsel under Section 11(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
  

 -8- 

 Section 12. Presumptions and Effect of Certain Proceedings. 
  
 (a) In making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for
indemnification in accordance with Section 10(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement
that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 
  
 (b) Subject to Section 13(e), if the person, persons or entity empowered or selected under Section 11 of this Agreement to determine whether
Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall, to the fullest
extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a
reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating
of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders
pursuant to Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board of Directors has resolved to submit such determination to the stockholders
for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after
such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement. 
  
 (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of
nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful. 

 

 -9- 

 (d) Reliance as Safe Harbor. For purposes of any determination of good faith, Indemnitee shall be
deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of
their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable
care by the Enterprise. The provisions of this Section 12(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in
this Agreement. 
  
 (e) Actions of Others. The knowledge
and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 
  
 Section 13. Remedies of Indemnitee. 
  
 (a) Subject to Section 13(e), in the event that (i) a
determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification
pursuant to Section 3, 4 or 7 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or
threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the
Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a
single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which
Indemnitee first has the right to commence such proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under
Section 5 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
  
 (b) In the event that a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled to
indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may
be. 
  

 -10- 

 (c) If a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement by Indemnitee of a material fact, or an
omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law. 
  
 (d) The Company shall, to the fullest extent not prohibited by law, be
precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or
before any such arbitrator that the Company is bound by all the provisions of this Agreement. It is the intent of the Company that the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement
or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder. The Company shall
indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to
Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance
policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be. 
  
 (e) Notwithstanding anything in this Agreement to the contrary, no
determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding. 
  
 Section 14. Non-exclusivity; Survival of Rights; Insurance; Subrogation. 
  
 (a) The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s Certificate of Incorporation, the Company’s By-laws, any agreement, a vote of stockholders or a resolution of directors, or
otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status
prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s
bylaws and certificate of incorporation and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be
exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 
  

 -11- 

 (b) To the extent that the Company maintains an insurance policy or policies providing liability
insurance for directors, officers, employees, or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall
be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice
of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in
the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such
policies. 
  
 (c) In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 
  
 (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a
director, officer, employee or agent of any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification
or advancement of Expenses from such other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise. 
  

Section 15. Duration of Agreement. This Agreement shall continue until and terminate upon the later of: (a) 10 years after the date
that Indemnitee shall have ceased to serve as a director or officer of the Company or (b) 1 year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of
Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of
Indemnitee and his heirs, executors and administrators. 
  
 Section 16. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, 

  

 -12- 

 
each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal
or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 
  
 Section 17. Enforcement. 
  
 (a) The Company expressly confirms and agrees that it has entered into this
Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or
officer of the Company. 
  
 (b) This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation of the Company, the By-laws of the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any
rights of Indemnitee thereunder. 
  
 Section 18.
Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver. 
  
 Section 19. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
  
 Section 20. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be
deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third
business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with
receipt of oral confirmation that such transmission has been received. 
  
 (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company. 
  

 -13- 

 (b) If to the Company to 
  
 Novacea, Inc.  
 601 Gateway Blvd., Suite 800 
 South San Francisco, CA 94080 
  
 or to any other address as may have been furnished to Indemnitee by the Company. 
  
 Section 21. Contribution. To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the
relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
  
 Section 22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the Company
and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware
Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding
arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably RL&F Service Corp., One Rodney Square, 10th Floor, 10th and
King Streets, Wilmington, Delaware 19801 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as
if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any
such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 
  
 Section 23. Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed
to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

  

 -14- 

 Section 24. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 
  
 Section 25. Entire Agreement. This Agreement constitutes the full
and entire understanding and agreement among the parties with regard to the subjects hereof and this Agreement supersedes all prior agreements relating to the subject matter hereto, including the Prior Agreement. 
  

 -15- 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first
above written. 
  

									
	 NOVACEA, INC.
	  	 	  	INDEMNITEE
				
	 By:
	  	
	  	 	  	

	 Name:
	  	 	  	Name:	  	 
	Office:	  	 	  	Address:	  	

				
	 	  	 	  	 	  	

				
	 	  	 	  	 	  	

  

 -16-License Agreement, dated as of July 1, 2002

 Exhibit 10.5 
  
 LICENSE AGREEMENT 
  
 This License Agreement (the “Agreement”) is made and entered into as of the 1st day of July, 2002 (the “Effective Date”), by and
between the UNIVERSITY OF PITTSBURGH OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION, a non-profit corporation, organized and existing under the laws of the Commonwealth of Pennsylvania, having its principal office at 4200 Fifth Avenue, Pittsburgh,
Pennsylvania 15260 (“UNIVERSITY”) and NOVACEA, INC., a Delaware corporation having its primary place of business at 601 Gateway Boulevard, Suite 450, South San Francisco, California 94080 (“LICENSEE”). 
  
 WHEREAS, UNIVERSITY is the owner of certain PATENT RIGHTS and KNOW-HOW (as
hereinafter defined) and has the right to grant licenses under such PATENT RIGHTS and KNOW-HOW, 
  
 WHEREAS, UNIVERSITY desires to have the PATENT RIGHTS and KNOW-HOW utilized in the public interest; 
  
 WHEREAS, LICENSEE has represented to UNIVERSITY, to induce UNIVERSITY to
enter into this Agreement, that LICENSEE, shall commit itself to a thorough, vigorous and diligent program of exploiting the PATENT RIGHTS and KNOW-HOW so that public utilization results therefrom; and 
  
 WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS and
KNOW-HOW upon the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties hereto, intending to be legally bound, agree as follows: 
  
 ARTICLE 1 - DEFINITIONS 
  
 For purposes of this Agreement, the following words and phrases shall have the following meanings: 
  
 1.1 “AFFILIATE” shall mean, with respect to UNIVERSITY, any
clinical or research entity that is operated or managed as a facility under the UPMC Health System, whether or not owned by UNIVERSITY. 
  
 1.2 “KNOW-HOW” shall mean any and all non-patented, proprietary technology and information (including, without limitation, research data,
designs, formulas, process information, clinical data, and other information pertaining or relating to any technology or invention claimed in the Patent Rights) existing as of the Effective Date as a result of activities conducted in the
laboratories of Drs. Donald Trump and/or Candace Johnson, which is necessary or useful for the practice of the Patent Rights, or for the manufacture, use, offer for sale or sale of a Licensed Product. 
  
 1.3 “LICENSED PRODUCT” shall mean VITAMIN D and one or more
cytotoxic agents administered or otherwise used or offered for use in a mariner which would, but for the license granted herein, infringe one or more of the PATENT RIGHTS. 

 1.4 “LICENSEE” shall mean NOVACEA, INC. and all entities directly or indirectly
controlling, controlled by or under common control with NOVACEA, INC. 
  
 1.5 “NET SALES” shall mean LICENSEE’s and any sublicensee’s invoiced price for LICENSED PRODUCTS, less the sum of the following: 
  

	 	(a)	actual cost of freight charges or freight absorption and insurance, separately stated in such invoice; 

  

	 	(b)	actual trade, quantity or cash discounts allowed, if any; 

  

	 	(c)	taxes such as sales taxes, tariff duties and/or use taxes separately stated on each invoice and borne by the seller; and 

  

	 	(d)	credit allowances given or made for rejection or return of previously sold goods. 

  
 1.6 “PATENT RIGHTS” shall mean the interest of UNIVERSITY in: 
  

	 	(a)	the United States and foreign patents and/or patent applications listed in Exhibit “A” attached hereto; 

  

	 	(b)	United States and foreign patents issued from the applications listed in Exhibit “A” and from divisionals, continuations and continuations-in-part of these applications;

  

	 	(c)	claims of U.S. and foreign continuation-in-part applications, and of the resulting patents, which are directed to subject matter specifically described in the U.S. and foreign
applications listed in Exhibit “A”; and 

  

	 	(d)	claims of all foreign patent applications, and of the resulting patents, which are directed to subject matter specifically described in the United States patents and/or patent
applications described in (a), (b) or (c) above. 

  
 1.7 “SUB-LICENSE REVENUES” shall mean all consideration paid to LICENSEE in return for the grant of a sub-license under the PATENT RIGHTS, including license fees and milestone payments but excluding:
(i) the purchase of equity in LICENSEE, (ii) payments or reimbursement for consulting, research, development, or other services. (iii) reimbursement for patent expenses or other actual disbursements of LICENSEE, and (iv) running
royalties payable as a function of the manufacture, sale or use of a LICENSED PRODUCT. 
  
 1.8 “VITAMIN D” shall mean cholecalciferol, as well as all derivatives and analogs thereof or thereto. 
  
 ARTICLE 2 - GRANT 
  
 2.1 To the extent it may lawfully do so, UNIVERSITY hereby grants to LICENSEE a worldwide sole and exclusive license under the PATENT RIGHTS and KNOW-HOW
to make, 

 
have made, use, offer for sale and sell the LICENSED PRODUCTS. The license granted hereby is subject to the rights of the United States government, if any,
as set forth in 35 U.S.C. Section 200, et seq. 
  
 2.2
UNIVERSITY reserves a royalty-free, non-exclusive right to practice under the PATENT RIGHTS to use LICENSED PRODUCTS for its own noncommercial research and educational purposes. 
  
 2.3 LICENSEE shall have the right to enter into sub-licensing arrangements for the rights, privileges and licenses granted
hereunder upon notice to and prior written approval of UNIVERSITY, which approval shall not be unreasonably withheld or delayed. Any such sub-licensing arrangement shall terminate upon termination of this Agreement. 
  
 2.4 Any sub-license granted by LICENSEE hereunder shall provide that the
obligations to UNIVERSITY of Sections 2, 7, 8, 9, 10 and 13 of this Agreement shall be binding upon the sub-licensee as if it were party to this Agreement. 
  
 2.5 LICENSEE shall forward to UNIVERSITY a copy of any and all sub-license agreements promptly upon execution thereof. Such copies and the non-public
information reflected therein shall be kept confidential by UNIVERSITY. 
  
 2.6 The license granted hereunder shall not be construed to confer any rights upon LICENSEE by implication, estoppel or otherwise as to any intellectual property other than PATENT RIGHTS and KNOW-HOW. 
  
 ARTICLE 3 - DUE DILIGENCE 
  
 3.1 LICENSEE shall use best efforts consistent with prudent business judgment
to bring one or more LICENSED PRODUCTS to market and to continue active marketing efforts for such LICENSED PRODUCTS throughout the term of this Agreement. 
  
 3.2 Without limiting Section 3.1, above, LICENSEE shall adhere to each of the following milestones: 
  

	 	(a)	begin a Phase II trial of a LICENSED PRODUCT within 18 months after the Effective Date; 

  

	 	(b)	begin a Phase II trial of a LICENSED PRODUCT for a second clinical indication within 24 months after the Effective Date; and 

  

	 	(c)	begin a pivotal Phase 111 trial of a LICENSED PRODUCT within 48 months after the Effective Date. 

  
 3.3 LICENSEE’s failure to perform in accordance with Section 3.1 or Section 3.2 shall constitute a material
breach of this Agreement. Such breach shall entitle UNIVERSITY to terminate as provided in Section 10.1(a), below. 

 ARTICLE 4 - ROYALTIES AND OTHER CONSIDERATION 
  
 4.1 In consideration of the rights, privileges and license granted by
UNIVERSITY hereunder, LICENSEE shall pay royalties and other consideration as follows: 
  

	 	(a)	as an initial license fee, within ten (10) days execution of the Agreement, One Hundred Thousand Dollars ($100,000) and 50,000 fully-paid shares of Common Stock of LICENSEE,
upon the terms set forth in the Stock Issuance Agreement attached hereto as Exhibit “B”, (plus the reimbursement of reasonable patent expenses incurred as of the Effective Date); 

  

	 	(b)	within ten (10) days following the issuance of a United States patent claiming priority from U.S. Patent [*] and which includes, inter alia, claims substantially identical to
those identified as pending claims [*] in UNIVERSITY’s “Response to Office Action” dated October 3, 2001, a milestone payment of 50,000 Shares of fully-paid Common Stock of LICENSEE upon the terms set forth in Exhibit
“B”; and 

  

	 	(c)	royalties in an amount equal to [*] percent ([*]%) of NET SALES determined in a manner consistent with Section 4.7, below. 

  
 4.2 Royalty payments pursuant to Section 4.1(c), above, shall be paid to
UNIVERSITY in United States dollars and directed to the address set forth in Section 12 hereof within sixty (60) days after March 31, June 30, September 30 and December 31 of each calendar year during the term
of this Agreement. LICENSEE shall have the right to reduce the royalty rate payable under Section 4.1(c) in any calendar quarter by [*] of the royalty rate paid to any third party, by judgment, contract or otherwise, for the right to
manufacture, use or sell any LICENSED PRODUCT in such calendar quarter; provided, however, that the royalty rate due UNIVERSITY hereunder shall in no event be reduced to less than [*] percent ([*]%) of NET SALES. 
  
 4.3 Commencing on the first anniversary of the Effective Date, LICENSEE shall
pay to UNIVERSITY a minimum annual royalty, which amount shall be creditable against royalties actually due to the UNIVERSITY with respect to NET SALES in such calendar year. The first such payment shall be One Hundred Thousand Dollars ($100,000).
The amount of such annual payment shall increase each year by Twenty-Five Thousand Dollars ($25,000), up to a maximum of Two Hundred Fifty Thousand Dollars ($250,000) per year. 
  
 4.4 UNIVERSITY shall also receive: (i) [*] percent ([*]%) of all SUB-LICENSE REVENUES received by LICENSEE within the
first twelve (12) months after the Effective Date; (ii) [*] percent ([*]%) of all SUB-LICENSE REVENUES received more than twelve (12) months but fewer than twenty-four (24) months after the EFFECTIVE DATE, and of such payments;
and (iii) [*] percent ([*]%) of all SUB-LICENSE REVENUES received more than twenty-four (24) months after the Effective Date. 
  

 [*] Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 4.5 Payments pursuant to this Agreement which are overdue shall bear interest calculated from the due
date until payment is received at the rate of eight percent (8%) per annum. 
  
 4.6 LICENSEE shall sell LICENSED PRODUCTS to UNIVERSITY and its AFFILIATES upon request at such price(s) and on such terms and conditions as such products are made available to LICENSEE’s most favored commercial
customer. 
  
 4.7 NET SALES as to the VITAMIN D component of each
LICENSED PRODUCT sold by LICENSEE shall be determined and reported by LICENSEE solely in the manner provided in this Section 4.7. Following the end of each calendar quarter, LICENSEE shall ascertain the gross sales of all VITAMIN D products
sold by it during such calendar quarter, and calculate a “net sales” figure for all its sales of VITAMIN D in such calendar quarter by deducting from its gross sales figure those items reflected in subsections (a) through (d) of
Section 1.5, above (the “VITAMIN D NET”). From the VITAMIN D NET, LICENSEE shall deduct the gross invoiced amount of all sales of VITAMIN D by LICENSEE during such calendar quarter which LICENSEE can demonstrate, by reference to data
published by IMS or a comparably reputable objective source, was directly attributable to use of VITAMIN D other than in conjunction with a cytotoxic agent which would otherwise violate the PATENT RIGHTS, i.e. sales of VITAMIN D for monotherapy and
sales of VITAMIN D for use in combination with other compounds where such compound is not covered by claims of the PATENT RIGHTS. The result of this calculation shall be considered the NET SAT ES as to the VITAMIN D component of a LICENSED PRODUCT
by LICENSEE for purposes of this - Agreement. 
  
 ARTICLE 5 -
REPORTS 
  
 5.1 Within sixty (60) days after each
March 31, June 30, September 30 and December 31 of each calendar year during the term of this Agreement, LICENSEE shall deliver to UNIVERSITY true, accurate and detailed reports of the following information in a form
reasonably acceptable to UNIVERSITY: 
  

	 	(a)	number of LICENSED PRODUCTS sold by LICENSEE and all sub-licensees; 

  

	 	(b)	total gross billings for all such LICENSED PRODUCTS; 

  

	 	(c)	deductions set forth in Section 1.5; 

  

	 	(d)	the basis for any calculation of NET SALES made by LICENSEE pursuant to Section 4.7; 

  

	 	(e)	total royalties due; and 

  

	 	(f)	the total SUB-LICENSE REVENUE received by LICENSEE during such calendar quarter. 

 5.2 If no payment is due hereunder with respect to any calendar quarter commencing in the calendar
quarter in which first commercial sale of a LICENSE PRODUCT occurs, LICENSEE shall so advise UNIVERSITY in writing within sixty (60) days after the end of such calendar quarter. 
  
 5.3 LICENSEE shall keep, and shall require that its sub-licensees keep, true and accurate books of account, in accordance
with generally accepted accounting principles, containing all information that may be necessary for the purpose of showing the amounts payable to UNIVERSITY hereunder. Such books of account shall be kept at LICENSEE’S principal place of
business. Such books and the supporting data related thereto shall be open at all reasonable times for three (3) years following the end of the calendar year to which they pertain to the inspection of UNIVERSITY or its agents for the purpose of
verifying LICENSEE’s royalty statement or compliance in other respects with this Agreement. The fees and expenses of UNIVERSITY’s representatives shall be borne by UNIVERSITY; however, if an error of more than five percent of the total
payments due or owing for any year is discovered, then LICENSEE shall bear the reasonable fees and expenses of UNIVERSITY’s representatives. 
  
 ARTICLE 6 - PATENT PROSECUTION 
  
 6.1 During the term of this Agreement UNIVERSITY has or shall apply for, seek prompt issuance of and maintain the PATENT RIGHTS in the United States and
in such foreign countries as may be designated by LICENSEE in a written notice to UNIVERSITY within a reasonable time in advance of the required foreign filing dates. UNIVERSITY shall use patent counsel selected in good faith consultation with
LICENSER. LICENSEE shall have the opportunity to consult with and advise UNIVERSITY in the prosecution, filing and maintenance of such patents. 
  
 6.2 Within thirty (30) days after the Effective Date, and upon presentation of reasonable documentation, LICENSEE shall reimburse UNIVERSITY for fees
and costs, including attorneys’ fees, relating to the filing, prosecution and maintenance of the PATENT RIGHTS prior to the Effective Date, in an amount not to exceed Twenty-Five Thousand Dollars ($25,000). Following the Effective Date, all
reasonable fees and costs, including attorneys’ fees relating to the filing, prosecution and maintenance of the PATENT RIGHTS shall be reimbursed by LICENSEE within thirty (30) days after receipt of a reasonable documentation of such fees
and expenses. Payments pursuant to this Section 6.2 shall not be creditable against royalties. 
  
 ARTICLE 7 - INFRINGEMENT ACTIONS 
  
 7.1 LICENSEE shall inform UNIVERSITY promptly in writing of any alleged infringement of the PATENT RIGHTS by a third party and shall provide to UNIVERSITY any available evidence thereof. 
  
 7.2 LICENSEE shall have the right, but shall not the obligation, to prosecute
at its own expense all infringements of the PATENT RIGHTS; provided, however, that such right to bring such an infringement action shall remain in effect only for so long as the license granted herein remains exclusive. In furtherance of such right,
LICENSEE may include UNIVERSITY as a party plaintiff in any such suit without expense to UNIVERSITY. The total cost of any such 

 
infringement action commenced or defended solely by LICENSEE shall be borne by LICENSEE, and UNIVERSITY shall receive a percentage of any recovery or damages
for past infringement derived therefrom which is equal to the percentage royalty due UNIVERSITY under Article 4. LICENSEE shall indemnify UNIVERSITY against any order for costs that may be made against UNIVERSITY in such proceedings. 
  
 7.3 If within six (6) months after having been notified of any alleged
infringement, LICENSEE shall have been unsuccessful in persuading the alleged infringer to desist and shall not have brought and shall not be diligently prosecuting an infringement action, or if LICENSEE shall notify UNIVERSITY at any time prior
thereto of its intention not to bring suit against any alleged infringer, then, and in those events only, UNIVERSITY shall have the right, but not the obligation, to prosecute at its own expense any infringement of the PATENT RIGHT’S, and
UNIVERSITY may, for such purposes, use the name of LICENSEE as party plaintiff UNIVERSITY shall bear all costs and expenses of’ any such suit in any settlement or other conclusion, by litigation or otherwise, UNIVERSITY shall keep any recovery
or damages for past infringement derived therefrom. 
  
 7.4 In the
event that a declaratory judgment action alleging invalidity or infringement of any of the PATENT RIGHTS shall be brought against UNIVERSITY, UNIVERSITY shall promptly notify LICENSEE. LICENSEE, at its option, shall have the right, within thirty
(30) days after receipt of such notice, to intervene and take over the sole defense of such action at its own expense. 
  
 7.5 In any infringement suit either party may institute to enforce the PATENT RIGHTS pursuant to this Agreement, the other party shall, at the request and
expense of the party initiating such suit, cooperate in all reasonable respects including, without limitation, having its employees testify when requested and making available relevant records, papers, information, samples, specimens, and the like.

  
 ARTICLE 8 - INDEMNIFICATION/INSURANCE/LIMITATION OF
LIABILITY 
  
 8.1 LICENSEE shall at all times during the term
of this Agreement and thereafter indemnify, defend and hold UNIVERSITY, its trustees, officers, employees and affiliates (“INDEMNITEES”) harmless against all claims and expenses, including legal expenses and reasonable attorneys’
fees, arising out of the death of or injury to any person or persons or out of any damage to property or the environment, and against any other claim, proceeding, demand, expense and liability of any kind whatsoever resulting from the production,
manufacture, sale, use, lease, consumption or advertisement of the LICENSED PRODUCTS or arising from, any obligation of LICENSEE hereunder, except to the extent that such claim or liability is the result of the gross negligence or intentional
misconduct of an INDEMNITEE. 

 8.2 LICENSEE shall obtain and carry in full force and effect liability insurance which shall protect
LICENSEE and UNIVERSITY in regard to events covered by Section 8.1 above, as provided below: 
  

			
	 COVERAGE

	  	 LIMITS

		
	(a) Workers’ Compensation	  	Statutory
		
	(b) Employer’s Liability	  	$1,000,000
		
	(c) Commercial General Liability, including, but not limited to, Products, Contractual, Fire, Legal and Personal Injury	  	$1,000,000 Combined Single Limits for Bodily Injury and Property Damage
		
	(d) Umbrella Liability	  	$3,000,000

  
 The UNIVERSITY shall
be named as an additional insured with respect to insurance policies identified in Sections 8.2(c) and 8.2(d), above. 
  
 Certificates of insurance evidencing the coverage required above shall be filed with the UNIVERSITY’s Office of Risk Management, 1817 Cathedral of
Learning, Pittsburgh, PA 15260, no later than thirty (30) days after execution of this Agreement and annually thereafter. Such certificates shall provide that the insurer will give the UNIVERSITY not less than thirty (30) days advance
written notice of any material changes in or cancellation of coverage. 
  
 8.3 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY GIVEN BY UNIVERSITY THAT THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED HEREUNDER SHALL NOT
INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. 
  
 ARTICLE 9 -
ASSIGNMENT 
  
 9.1 This Agreement is not assignable without
the prior written consent of UNIVERSITY and any attempt to do so shall be null and void; provided, however, that LICENSEE may assign this agreement in the context of a merger or acquisition of LICENSER or the sale by LICENSEE of substantially all of
the assets to which this Agreement relates. 
  
 ARTICLE 10 -
TERMINATION 
  
 10.1 UNIVERSITY shall have the right to
terminate this Agreement if: 
  

	 	(a)	LICENSEE shall default in the performance of any of the obligations herein contained and such default has not been cured within forty-five (45) days after receiving written
notice thereof from UNIVERSITY; or 

	 	(b)	LICENSER shall cease to carry out its business, become bankrupt or insolvent, apply for or consent to the appointment of a trustee, receiver or liquidator of its assets or seek
relief under any law for the aid of debtors. 

  
 10.2 LICENSEE may terminate this Agreement upon three (3) months prior written notice to UNIVERSITY and upon payment of all amounts due UNIVERSITY through the effective date of termination. 
  
 10.3 Upon termination of this Agreement, neither party shall be released from
any obligation that matured prior to the effective date of such termination LICENSEE and any sublicensee may, however, after the effective date of such termination, sell all products under the LICENSED PATENTS which LICENSEE produced prior to the
effective date of such termination, provided that LICENSEE shall pay to UNIVERSITY the royalties thereon as required by Article 4 hereof and submit the reports required by Article 5 hereof. 
  
 ARTICLE 11 - NOTICES 
  
 11.1 Any notice or communication pursuant to this Agreement shall be
sufficiently made or given if sent by certified or registered mail, postage prepaid, or by overnight courier, with proof of delivery by receipt, addressed to the address set forth below, if different from the address first set forth above, or to
such other address as a party shall designate by written notice to the other party. 
  
 In the case of UNIVERSITY: 
  
 Director, Office of Technology Management 
 University of Pittsburgh 
 200 Gardner Steel Conference Center 
 Thackeray & O’Hara Streets 
 Pittsburgh, PA 15260 
  
 ARTICLE 12 - AMENDMENT, MODIFICATION 
  
 12.1 This Agreement may not be amended or modified except by the execution of a written instrument signed by the parties
hereto. 
  
 ARTICLE 13 - MISCELLANEOUS 
  
 13.1 This Agreement shall be construed and interpreted in accordance with the
laws of the Commonwealth of Pennsylvania. The exclusive forum for the resolution of any disputes arising. hereunder or with respect hereto shall be the state and federal courts of original jurisdiction in and for Allegheny County, Pennsylvania.

  
 13.2 The parties acknowledge that this Agreement sets forth
the entire understanding and intentions of the parties hereto as to the subject matter hereof and supersedes all previous understandings between the parties, written or oral, regarding such subject matter. 

 13.3 Nothing contained in this Agreement shall be construed as conferring upon either party any right to
use in advertising, publicity or other promotional activities any name, trade name, trademark, or other designation of the other party, including any contraction, abbreviation, or simulation of any of the foregoing. Without the express written
approval of the other party, neither party shall use any designation of the other party in any promotional activity associated with this Agreement or the PATENT RIGHTS. Neither party shall issue any press release or make any public statement in
regard to this Agreement without the prior written approval of the other party. 
  
 13.4 If one or more of the provisions of this Agreement shall be held invalid, illegal or unenforceable, the remaining provisions shall not in any way be affected or impaired thereby. In the event any provision is
held illegal or unenforceable, the parties shall use reasonable efforts to substitute a valid, legal and enforceable provision which, insofar as is practical, implements purposes of the provision held invalid, illegal or unenforceable. 

 
 13.5 Failure at any time to require performance of any of the provisions
herein shall not waive or diminish a party’s right thereafter to demand compliance therewith or with any other provision. Waiver of any default shall not waive any other default. A party shall not be deemed to have waived any rights hereunder
unless such waiver is in writing and signed by a duly authorized officer of the party malting such waiver. 
  
 13.6 LICENSEE acknowledges that UNIVERSITY is free to publish the results of the research activities of its faculty, staff and students, even though such
publication may involve the PATENT RIGHTS. UNIVERSITY agrees to submit to LICENSEE any proposed publication or presentation regarding the subject mailer specifically described in the PATENT RIGHTS for prior review by LICENSEE at least sixty
(60) days before its submittal for publication or its presentation. LICENSEE may within thirty (30) days after receipt of such proposed publication, request that such proposed publication be delayed not more than ninety (90) days in
order to allow for protection of intellectual property rights 
  
 IN WITNESS WHEREOF, the parties have set their hands and seals as of the date set forth on the first page hereof. 
  

			
	 UNIVERSITY OF PITTSBURGH – OF THE
 COMMONWEALTH SYSTEM OF HIGHER
 EDUCATION

		
	By	 	 /s/ Jerome Cochran

	 	 	 Jerome Cochran
 Executive Vice Chancellor

	
	 NOVACEA, INC.

		
	By	 	 /s/ Brad Goodwin

	 	 	 Brad Goodwin
 Chief Executive Officer

 EXHIBIT A 
 PATENT RIGHTS 
  
 PATENT RIGHTS shall mean
all intellectual property described and claimed in the U.S. Patent [*], and U.S. Patent [*], and foreign patents and patent applications filed thereon, and any subsequent United States and foreign patent applications filed thereon and patents issued
from those applications, including divisionals, continuations; and any United States or foreign patent applications that claim any improvements to the invention claimed in the foregoing which are within the scope of any of the claims of the
foregoing patents or patent applications. 
  

 [*] Certain information on this page has been omitted and filed separately with the Securities and Exchange
Commission. Confidential treatment has been requested with respect to the omitted portions. 

 EXHIBIT B 
 STOCK ISSUANCE AGREEMENT 
  
 This Stock Issuance Agreement (the “Agreement”), dated as of the      day of July, 2002, by and between NOVACEA, Inc., a Delaware corporation (the “Company”), and THE UNIVERSITY OF PITTSBURGH
OF THE COMMONWEALTH SYSTEM OF HIGHER EDUCATION (the “Purchaser”) 
  
 WITNESSETH: 
  
 WHEREAS,
the Company and the Purchaser are entering into a License Agreement dated July 1, 2002 (the “License Agreement”); and 
  
 WHEREAS, as part of the consideration for the Purchaser entering into the License Agreement, the Company proposes to issue and sell to the Purchaser
50,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), and the Purchaser desires to purchase such shares from the Company, all upon the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE,- in consideration of the premises and mutual covenants and
agreements contained herein, and intending to be legally bound, the parties hereto agree as follows: 
  

	1.	Purchase of Shares 

  
 Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company agrees to issue and sell to the
Purchaser, and the Purchaser agrees to purchase from the Company, on the Closing Date (as defined below), 50,000 shares of the Common Stock (the “Shares”). At the closing hereunder (the “Closing”), the Shares shall be issued to
and registered in the name of the Purchaser together with and in partial consideration of the execution and delivery by the Purchaser of the License Agreement. The Closing shall take place at such time and place as the Purchaser and the Company
shall mutually agree upon, but in any event shall be on or before July 15, 2002 (the “Closing Date”). 
  

	2.	Representations and Warranties of the Company. 

  
 The Company represents and warrants to the Purchaser that: 
  

	 	(a)	Organization. The Company and each of its subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation and has all requisite corporate power and authority to carry on its business as now conducted and proposed to be conducted and to own its properties. The Company and each of its subsidiaries is duly licensed or qualified as a foreign
corporation in good standing in all other jurisdictions where the nature of its businesses or the ownership of its properties so requires, except where the failure to be so licensed or qualified would not have a materially adverse effect on the
financial condition of the Company and its subsidiaries taken as a whole. 

	 	(b)	Capitalization. On the Closing Date, the authorized capital Shares of the Company is as shown on Exhibit “A” attached hereto. All shares of the Company’s
capital stock that are issued and outstanding have been validly issued and are fully paid, nonassessable and outstanding. No other shares of capital stock of the Company are or will then be issued or outstanding and, except as identified in Exhibit
“A” hereto, no subscription, warrant, option or other right to purchase or acquire any securities convertible into or exchangeable for such capital stock, with or without consideration, are or will then be existing, authorized or
outstanding. All of the outstanding securities of the Company have been offered and sold in compliance with applicable federal and state securities laws. 

  

	 	(c)	Authorization:   Consents. The execution, delivery and performance by the Company of this Agreement have been duly authorized by all requisite corporate action on
the part of the Company. Upon the duly authorized execution and delivery of this Agreement, this Agreement will constitute a valid and binding obligation of the Company enforceable in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and equitable principles. All authorizations, approvals, permits and consents required in connection with the execution, delivery
and performance of this Agreement and all other documents contemplated hereby have been obtained, including, without limitation, any registration, qualification, notification or other filing required under applicable federal and state securities
laws. 

  

	 	(d)	Share Validity. The Shares shall, upon such issuance, sale, exercise and delivery, be duly authorized, validly issued, fully paid and non-assessable, and free and clear of
any and all liens and preemptive and other similar rights. 

  

	 	(e)	No Conflict. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby or thereby, nor compliance with the terms and
provisions hereof or thereof, nor the offer, issuance or sale of the Shares, will conflict with or violate or (with or without notice or lapse of time or both) constitute a breach of, or default under, any such laws, rules, regulations, licenses,
permits or authorizations, or any order, judgment or decree, or the Company’s Certificate of Incorporation, as amended, or Bylaws or any agreement or other instrument by which the Company or any of its subsidiaries is bound or to which the
Company or any of its subsidiaries or any of their respective properties is subject; nor will any such action result in the imposition of any lien or encumbrance upon any asset or property of the Company. 

	 	(f)	Securities Law Compliance. (i) Based in part upon the representations of the Purchaser set forth in Section 3 hereof, the offer and sale by the Company of the
Shares hereunder is exempt from (1) the registration and prospectus delivery requirements of the Securities Act of 1933, as amended and the rules and regulations of the Securities and Exchange Commission (the “Commission”) promulgated
thereunder, and (2) the registration and/or qualification provisions of all applicable state securities and “blue sky” laws. 

  

	 	(g)	Representations. The representations and warranties by the Company in this Agreement, and in any documents, written statements, certificates, exhibits or schedules furnished
or to be furnished by the Company pursuant hereto, or in connection with the transactions contemplated hereby, when considered together do not contain and will not contain any untrue statement of fact or omit to state a material fact necessary to
make the statements contained therein not misleading. 

  

	 	(h)	Piggyback Registration. The Company shall use its best efforts to grant to the Purchaser the same “piggyback” registration rights as are granted to Oregon Health
Sciences University pursuant to the terms of that certain First Amended and Restated Investors’ Rights Agreement dated as of July 6, 2001, by and among the Company and the other parties thereto (the “IRA”). Specifically, the
Company shall use its best efforts to cause the IRA to be amended no later than September 15, 2002, to make the Purchaser a party to the IRA for the purposes of Sections 1.3, 1.5, 1.7 and 1.8 of the IRA. 

  

	 	(i)	Company’s Right of First Refusal. Before any of the Shares may be sold or otherwise transferred by Purchaser, the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this subsection (i). In the event Purchaser proposes to sell or otherwise dispose of the Shares, in whole or part, it shall deliver to the Company a written notice (the
“Notice”) stating: (A) Purchaser’s bona fide intention to sell or otherwise transfer some or all of the Shares (the “Offered Shares”), (B) the name of each proposed purchaser or transferee (the “Proposed
Transferee”), (C) the number of the Offered Shares to be transferred to each Proposed Transferee, and (D) the bona fide cash price or fair market value of other consideration for which Purchaser proposes to transfer the Offered Shares
(the “Offered Price”), and Purchaser shall offer the Offered Shares at the Offered Price to the Company or its assignee(s). At any time within 10 days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written
notice to Purchaser, elect to purchase all of the Offered Shares at the Offered Price. In the event that the Company or its assignee(s) exercises its rights under this subsection, payment of the Offered Price shall be made, by check or wire
transfer, within 40 days after Company’s receipt of the Notice. The sale shall constitute a representation and warranty by the Purchaser that the Offered Shares being sold are free and clear of all liens and encumbrances. The rights of first
refusal under this subsection shall not apply to, and shall terminate immediately before, the closing of the Company’s initial public offering of Common Stock with net proceeds to the Company of no less than $20,000,000 pursuant to a
registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended. 

	3.	Representations and Warranties of the Purchaser. 

  
 The Purchaser represents and warrants to the Company that: 
  

	 	(a)	Purchase for Investment 

  

	 	(i)	This Agreement is made with the Purchaser in reliance upon the Purchaser’s representation to the Company, which by its acceptance hereof the Purchaser hereby confirms, that the
Shares will be acquired for investment for its own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and that it has no present intention of selling, granting participations in, or otherwise
distributing the same, but subject nevertheless to any requirement of law that the disposition of its property shall at all times be within its control. By executing this Agreement, the Purchaser further represents that it does not have any
contract, undertaking, agreement, or arrangement with any person to sell, transfer, or grant participations to such person, or to any third person, with respect to any of the Shares. 

  

	 	(ii)	The Purchaser understands that the Shares are not registered under the Securities Act of 1933, as amended (the “Act”), on the ground that the sale provided for in this
Agreement and the issuance of the Shares hereunder is exempt from registration under the Act pursuant to Section 4(2) thereof, and that the Company’s reliance on such exemption is predicated in part on the Purchaser’s representations
set forth herein. 

  

	 	(iii)	The Purchaser represents that it is experienced in evaluating and investing in companies such as the Company, has such knowledge and experience in financial business matters as to
be capable of evaluating the merits and risks of its investment and has the ability to bear the economic risks of its investment. The Purchaser further represents that it has had, during the course of the transaction and prior to its purchase of the
Shares, the opportunity to ask questions of, and receive answers from, the Company concerning the terms and conditions of the offering and to obtain additional information (to the extent the Company possessed such information or could acquire it
without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it or to which it had access. 

  

	 	(iv)	The Purchaser agrees that the Company, if it so desires, may permit transfers by the Purchaser of the Shares purchased hereunder only when the securities have been registered under
the Act, any applicable state securities law and any other applicable securities legislation or when the request for transfer is accompanied by an opinion of counsel, which 

	 	 	opinion and the counsel rendering same shall be acceptable to the Company, to the effect that the transfer or proposed transfer does not require registration under the Act, any
state securities law or any other applicable securities legislation, and the Purchaser agrees that a legend to such effect, if the Company so desires, may be placed on the certificates or instruments representing any of the Shares and a stop
transfer order may be placed with respect thereto. 

  

	 	(b)	Purchase for Investment. The Purchaser has obtained all authorizations and approvals, if any, necessary to its execution, delivery and performance of this Agreement and upon
the duly authorized execution and delivery hereof by the Company, this Agreement constitutes the Purchaser’s valid and legally binding obligation, enforceable in accordance with the terms thereof, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization or similar laws affecting creditors rights generally and by equitable principles. 

  

	 	(c)	Corporate Power. The Purchaser represents and warrants that it has the requisite power and authority to carry on its business as presently conducted and to enter into this
Agreement and perform its obligations hereunder and thereunder. 

  

	4.	Conditions to the Purchaser’s Obligations to Purchase. 

  
 The obligation of the Purchaser to consummate the transaction contemplated herein is subject to the fulfillment to the Purchaser’s satisfaction, on
or before the Closing Date, of each of the following conditions: 
  

	 	(a)	Representations and Warranties. The representations and warranties of the Company contained herein shall be true and correct as of the date hereof and as of the Closing Date
with the same force and effect as if made on such date. 

  

	 	(b)	Performance. The Company shall have performed and fulfilled all obligations and conditions herein required to be performed or fulfilled by it on or prior to the Closing Date,
and all documents delivered in connection herewith shall be reasonably satisfactory in form and content to the Purchaser and its legal counsel. 

  

	 	(c)	Consents; Corporate Proceedings. The Company shall have obtained all consents, permits and waivers of governmental authorities or other third parties and taken all corporate
and other proceedings necessary for the execution, delivery and performance of this Agreement and the transactions contemplated hereby as shall be reasonably satisfactory in scope, form and substance to the Purchaser and its legal counsel and the
Purchaser and its legal counsel shall have received copies of all documents and instruments reflecting or evidencing the same. 

	 	(d)	No Injunction. No temporary, preliminary or permanent injunction or any order by any federal or state court of competent jurisdiction shall have been issued or threatened
which prohibits or otherwise seeks to prohibit, restrain, enjoin or delay the consummation of any of the transactions contemplated by this Agreement, including without limitation the issuance, sale and delivery of the Shares to the Purchaser.

  

	 	(e)	Good Standing; Certificate of Incorporation. The Company shall have delivered to the Purchaser a certificate of the Secretary of State of the State of Delaware (the
“State”), issued within three business days prior to the Closing Date, indicating that the Company is a corporation created, organized and validly existing under the laws of the State. 

  

	5.	Conditions to the Company’s Obligation to Sell. 

  
 The obligation of the Company to issue and sell the Shares hereunder is subject to the fulfillment to the Company’s satisfaction, at or before the
Closing Date, of each of the following conditions, any of which may be waived in whole or in part by the Company: 
  

	 	(a)	Representations and Warranties. The representations and warranties of the Purchaser contained herein shall be true and correct as of the date hereof and as of the Closing
Date with the same force and effect as if made on each such date. 

  

	 	(b)	Performance. The Purchaser shall have performed and fulfilled all obligations and conditions herein required to be performed or fulfilled by it on or prior to the Closing
Date, and if the Closing Date is a date other than the date hereof, a certificate of an authorized officer of the Purchaser to such effect dated the Closing Date shall be delivered to the Company. 

  

	6.	Termination. 

  

	 	(a)	Termination by Mutual Written Consent. This Agreement may be terminated and the transactions contemplated hereby may be abandoned, for any reason, at any time prior to the
Closing Date, by the mutual written consent of the Company and the Purchaser. 

  

	 	(b)	Termination by the Company or the Purchaser. This Agreement may be terminated and the transactions contemplated hereby may be abandoned by action of the Company or the
Purchaser if and to the extent that (i) the Closing shall not have occurred at or prior to the close of business on July 15, 2002; provided, however, that the right to terminate this Agreement under this Section 6(b) shall not be
available to any party whose failure to fulfill any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date; or (ii) any court or governmental authority of competent
jurisdiction shall have issued an order, decree, writ or ruling or taken any other action, or there shall be in effect any statute, rule or regulation, temporarily, preliminarily or permanently restraining, enjoining or otherwise prohibiting the
purchase of the Shares hereunder, or the consummation of the transactions contemplated by this Agreement. 

	 	(c)	Termination by the Purchaser. This Agreement may be terminated and the transactions contemplated hereby may be abandoned by action of the Purchaser at any time prior to the
Closing Date if (i) the Company shall have failed to comply with any of the covenants or agreements contained in this Agreement to be complied with or performed by the Company at or prior to such date of termination, (ii) there shall have
been a misrepresentation or breach by the Company with respect to any representation or warranty made by it in this Agreement, or (iii) there shall have occurred and be continuing any condition, event or development having, or reasonably likely
to have, a material adverse effect on the business, operations, financial condition or prospects of the Company and its subsidiaries taken as a whole. 

  

	 	(d)	Termination by the Company. This Agreement may be terminated and the transactions contemplated hereby may be abandoned by action of the Company, at any time prior to the
Closing Date, if (i) the Purchaser shall have failed to comply with any of the covenants or agreements contained in this Agreement to be complied with or performed by the Purchaser at or prior to such date of termination, or (ii) there
shall have been a misrepresentation or breach by the Purchaser with respect to any representation or warranty made by the Purchaser in this Agreement. 

  

	7.	Indemnification. 

  

	 	(a)	The Company agrees to indemnify and hold harmless the Purchaser, each person who controls the Purchaser within the meaning of Section 15 of the Securities Act and/or
Section 20 of the Securities Exchange Act of 1934, as amended, and each of the officers, directors, employees, agents, affiliates and associates of the foregoing in their respective capacities as such, to the fullest extent lawful, from and
against any and all actions, suits, claims, proceedings, costs, losses, damages, judgments, amounts paid in settlement and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) to the extent relating to or
arising out of any inaccuracy in or breach, violation or non-observance of any of the representations, warranties, covenants or agreements made by the Company herein and regardless of whether suffered or incurred in connection with litigation
commenced by one or more third parties. 

	 	(b)	The Purchaser agrees to indemnify and hold harmless the Company, each person who controls the Company within the meaning of Section 15 of the Securities Act and/or
Section 20 of the Securities Exchange Act of 1934, as amended, and each of the officers, directors, employees, agents, affiliates and associates of the foregoing in their respective capacities as such, to the fullest extent lawful, from and
against any and all actions, suits, claims, proceedings, costs, losses, damages, judgments, amounts paid in settlement and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) to the extent relating to or
arising out of any inaccuracy in or breach, violation or non-observance of any of the representations, warranties, covenants or agreements made by the Purchaser herein and regardless of whether suffered or incurred in connection with litigation
commenced by one or more third parties. 

  

	 	(c)	The obligations of the parties under this Section 7 shall inure to the benefit of any transferees or assignees of the Purchaser. 

  

	8.	Miscellaneous. 

  

	 	(a)	Waivers and Amendments. Neither this Agreement nor any of the provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed instrument in
writing signed by all of the parties hereto. 

  

	 	(b)	No Impairment. The Company will not, by amendment of its Certificate of Incorporation or otherwise, avoid or seek to avoid the observance or performance of any agreement or
covenant hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Agreement. 

  

	 	(c)	Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made by the Company or the Purchaser and the Closing of the
transactions contemplated hereby. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the Company or the Purchaser pursuant hereto or in connection with the transactions contemplated
hereby shall be deemed to be representations and warranties by the Company or the Purchaser hereunder as of the date of such certificate or instrument. 

  

	 	(d)	Successors and Assigns. The provisions hereof shall inure to the benefit of, and be binding upon, the parties hereto, their successors and assigns. 

 

	 	(e)	Entire Agreement. This Agreement and the other documents and agreements delivered pursuant hereto constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof. 

  

	 	(f)	Certain Expenses. Each party agrees to bear its own expenses in connection with the negotiation, execution and performance of this Agreement. 

	 	(g)	Delays or Omissions. No delay or omission in exercising any right, power or remedy accruing to the Purchaser upon any breach or default of the Company under this Agreement
shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default. Any waiver, permit, consent or approval of any kind on the part of the Purchaser or the Company of any breach or default under this
Agreement or any waiver of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing. All remedies, either under this Agreement, or by law or otherwise afforded to a
party to this Agreement, shall be cumulative and not alternative. 

  

	 	(h)	Severability. If any section or provision of this Agreement, or any covenant, stipulation, obligation, agreement, act or action, or any part thereof, made, assumed, entered
into or taken hereunder or any application thereof, is for any reason held to be illegal or invalid, such illegality or invalidity shall not affect the remainder thereof or any other section or provision hereof or any covenant, stipulation,
obligation, agreement, act or action, or part hereof, made, assumed, entered into or taken hereunder, which shall be construed and enforced as if such illegal or invalid portion were not contained herein, nor shall such illegality or invalidity
affect any legal and valid application thereof, and each such section, provision, covenant, stipulation, obligation, agreement, act or action, or part thereof, shall be deemed to be effective, operative, made, entered into or taken in the manner and
to the fullest extent permitted by law. 

  

	 	(i)	Headings. The headings of the various sections and paragraphs of this Agreement have been inserted for convenience only, are not a part of this Agreement and shall not be
deemed in any manner to modify, explain, enlarge or restrict any of the provisions of this Agreement. 

  

	 	(j)	Governing Law. This Agreement shall be deemed to be an agreement under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance
with the laws of said state, with jurisdiction to adjudicate all claims arising hereunder residing in the courts of said state and the U.S. District Court for the State of Delaware. 

  

	 	(k)	Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed to have been given, made or delivered when actually received by whatever
means of transmission or when deposited in the mail and sent by registered or certified mail, postage prepaid, by facsimile transmission with confirmation of receipt addressed, as the case may be, as follows: 

  
 If to the Company: 
  
 601 Gateway Blvd., Suite 450 
 South San Francisco, CA 94080 
 Attention:
President 

 If to the Purchaser: 
  
 Director, Office of Technology Management 
 University of Pittsburgh 
 200 Gardner Steel Conference Center 
 Thackeray & O’Hara Streets 
 Pittsburgh, PA 15260 
  

	 	(l)	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute a single instrument.

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

  

							
	ATTEST:	 	 	 	NOVACEA, INC.
				
	 	 	 	 	By:	 	  

	  

	 	 	 	Title:	 	CEO
			
	ATTEST:	 	 	 	 UNIVERSITY OF PITTSBURGH – OF
 THE
COMMONWEALTH SYSTEM
 HIGHER EDUCATION

				
	 	 	 	 	By:	 	  

	 	 	 	 	 	 	Jerome Cochran
	  

	 	 	 	Title:	 	Executive Vice Chancellor

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]