Document:

Noncompetition Agreement

 Exhibit 10.6 
  
 NONCOMPETITION AGREEMENT 
  
 This Noncompetition Agreement (this “Noncompetition Agreement”) is entered into on December 17, 2004, among Star Gas Partners, L.P., a
Delaware limited partnership, Star Gas LLC, a Delaware limited liability company (collectively, the “Sellers”), and Inergy Propane, LLC, a Delaware limited liability company (“Buyer”). 
  
 On November 18, 2004, Buyer, the Sellers and Inergy, L.P. entered into an
Interest Purchase Agreement (the “Interest Purchase Agreement”) pursuant to which Buyer is purchasing all of the propane business and certain other related businesses of the Sellers. Section 4.4 of the Interest Purchase Agreement
contemplates and requires the execution and delivery of this Noncompetition Agreement as a condition to the consummation of the transactions under the Interest Purchase Agreement. 
  
 In consideration of the amounts paid by Buyer to the Sellers pursuant to the Interest Purchase Agreement, the parties hereby
agree as follows: 
  
 1. Covenant Not to Compete.

  
 (a) The Sellers hereby acknowledge and recognize the highly
competitive nature of the Business (as defined in the Interest Purchase Agreement) being acquired by Buyer pursuant to the Interest Purchase Agreement, including the intellectual property, trade secrets and confidential information of the Business
being acquired. Accordingly, except as provided in Sections 1(b) and 1(c), the Sellers hereby agree that they (and their subsidiaries) will not, directly or indirectly, during the period commencing on the date of this Agreement and ending on the
fifth anniversary of such date (the “Noncompetition Period”), own, manage, operate, control or participate in the ownership, management, operation or control of, or have any interest, financial or otherwise, in or act as a partner,
manager, member, principal, agent, representative, consultant or independent contractor of, or licensor to, or in any way assist, any Person (as defined in the Interest Purchase Agreement) in the conduct of any Competitive Business now or at any
time during the Noncompetition Period in either (i) any of the Prohibited States (as defined below) or (ii) the business locations in which the Business was conducted on the date of this Agreement or within 50 miles of any of such locations. In
addition, the Sellers will not, directly or indirectly, during the Noncompetition Period use or license in connection with any Competitive Business activities any name, trade name or trademark that was previously used in connection with the Business
or that is similar to those previously used in connection with the Business in either (A) any of the Prohibited States or (B) the business locations in which the Business was conducted on the date of this Agreement or within 50 miles of any of such
locations. “Competitive Business” means the business of marketing, distributing, storing, transporting and selling propane gas on a retail or wholesale basis. “Prohibited States” means each of the following states:
Florida, Indiana, Maine, Massachusetts, Michigan, Minnesota and Ohio. 
  
 (b) Notwithstanding anything in Section 1(a) to the contrary, the Sellers may own up to 5% of the outstanding equity securities in any Person that is listed upon a national stock exchange or actively traded in the over-the-counter market.

 (c) Notwithstanding anything in Section 1(a) to the contrary, the Sellers may (i) continue to own and
operate the Retained Propane Assets (as defined in the Interest Purchase Agreement) at the locations and substantially as operated as of the date hereof and continue to use any name, trade name, or trademark used in connection therewith on the date
of this Agreement, and (ii) expand their involvement in the Competitive Business pursuant to any Seller (or any subsidiary thereof) acquiring, directly or indirectly, a third party (or its assets or operations) already engaged in the Competitive
Business prior to such acquisition, so long as the gross revenues of such acquired third party for the most-recently completed fiscal year prior to such acquisition and during the current fiscal year generated by such acquired third party from
Competitive Business activities is less than 10% of the total gross revenues of such acquired third party for such period. 
  
 2. Potential Unenforceability of Section 1. Although the Sellers and Buyer consider the restrictions contained in Section 1 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in Section 1 is an unreasonable or otherwise unenforceable restriction against the Sellers, neither this
Noncompetition Agreement nor the provisions of Section 1 will be rendered void, but will be deemed amended as to such restriction as such court may judicially determine or indicate to be reasonable or, if such court does not so determine or
indicate, to the maximum extent that any pertinent statute or judicial decision may indicate to be a reasonable restriction under the circumstances. 
  
 3. Specific Performance. Recognizing that irreparable damage will result to Buyer in the event of the breach or threatened breach of any of the
foregoing covenants and assurances by the Sellers contained in Section 1, and that Buyer’s remedies at law for any such breach or threatened breach will be inadequate, Buyer and its successors and permitted assigns, in addition to such other
remedies that may be available to them, are entitled to, and the Sellers agree not to oppose Buyer’s request for, an injunction, including a mandatory injunction, to be issued by any court of competent jurisdiction ordering compliance with this
Noncompetition Agreement or enjoining and restraining the Sellers, and each and every Person acting in concert or participation with the Sellers, from the continuation of such breach and, in addition thereto, the Sellers will pay to Buyer all
ascertainable damages, including costs and reasonable attorneys’ fees as provided in Section 10. Buyer is not required to obtain a bond in an amount greater than $1,000. The covenants and obligations of the Sellers set forth in Section 1 are in
addition to and not in lieu of or exclusive of any other obligations and duties of the Sellers to Buyer, whether express or implied in fact or in law. 
  
 4. Entire Agreement; Modification. This Noncompetition Agreement, along with the Interest Purchase Agreement, embodies the entire agreement between
the parties with respect to the subject matter hereof. This Noncompetition Agreement may not be amended or modified except by a writing signed by an authorized representative of the party against whom enforcement of the change is sought. No waiver
of the performance or breach of, or default under, any condition or obligation of this Noncompetition Agreement will be deemed to be a waiver of any other performance, or breach of, or default under the same or any other condition or obligation of
this Noncompetition Agreement. 
  

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 5. Waiver of Breach. The waiver by any party, or the failure by either party to claim a breach (or
give notice with respect thereto), of any provision of this Noncompetition Agreement will not be, or be deemed to be, a waiver of any subsequent breach, or deemed to affect in any way the effectiveness, of such provision. 
  
 6. Parties in Interest and Assignment. 
  
 (a) This Agreement is binding upon and is for the benefit of the parties and
their respective successors and permitted assigns. Except as expressly provided in this Agreement, nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties or their respective successors and permitted
assigns any rights, remedies or obligations or liabilities under or by reason of this Agreement. 
  
 (b) Except as provided in Section 6(c), neither this Agreement nor any of the rights, duties or obligations of any party may be transferred or assigned to
any Person except by a written agreement executed by all of the parties. 
  
 (c) Notwithstanding Section 6(b), Buyer may transfer and assign all or any portion of its rights under this Agreement to an Affiliate (as defined in the Interest Purchase Agreement) of Buyer or in connection with any
merger, consolidation or conversion of Buyer or any sale of all or a significant portion of the assets associated with the Business. 
  
 7. Execution in Multiple Originals. This Noncompetition Agreement may be executed in multiple originals, each of which is deemed an original but
all of which together constitute but one and the same instrument. 
  
 8. Notice. Any notice, request, consent or communication under this Noncompetition Agreement will be effective only if it is sent in accordance with Section 15.1 of the Interest Purchase Agreement. 
  
 9. Governing Law. This Noncompetition Agreement is governed by and
construed, interpreted and enforced in accordance with the Laws of the State of Delaware applicable to agreements made and to be performed entirely within such State, including all matters of enforcement, validity and performance. 
  
 10. Attorneys’ Fees. If any legal action or other proceeding is
brought by any party to this Noncompetition Agreement for the enforcement or interpretation of any of the rights, obligations or provisions of this Noncompetition Agreement, or because of an alleged dispute, breach, default or misrepresentation in
connection with any of the provisions of this Noncompetition Agreement, the prevailing party in such action or proceeding is entitled to recover reasonable attorneys’ fees and all other costs and expenses incurred in such action or proceeding,
in addition to any other relief to which it may be entitled. 
  
 11. Captions. The headings of the sections of this Noncompetition Agreement have been inserted for convenience of reference only and do not restrict or otherwise modify any of the terms or provisions of this Noncompetition Agreement.

  
 [The remainder of this page intentionally has been left blank]

  

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 The parties have executed this Noncompetition Agreement on the date set forth in the introductory
paragraph. 
  

					
	 STAR GAS PARTNERS, L.P.

		
	 By:
	 	 Star Gas LLC, its general partner

			
	 	 	 By:
	 	 /S/    IRIK P. SEVIN

	 	 	 Name:
	 	 Irik P. Sevin

	 	 	 Title:
	 	 Chief Executive Officer

	
	 STAR GAS LLC

		
	 By:
	 	 /S/    IRIK P.
SEVIN

	 Name:
	 	 Irik P. Sevin

	 Title:
	 	 Chief Executive Officer

	
	 INERGY PROPANE, LLC

		
	 By:
	 	 /S/    JOHN J.
SHERMAN

	 Name:
	 	 John J. Sherman

	 Title:
	 	 President and CEO

  

 4Amended and Restated Marketing and Sales Service Agreement

 Exhibit 10.1 
  

			
	 *
	 	Certain confidential information contained in this document, marked by brackets, has been omitted and filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.

  
 AMENDED AND
RESTATED 
 MARKETING AND SALES SERVICE AGREEMENT 
  
 THIS AMENDED AND RESTATED MARKETING AND SALES SERVICE AGREEMENT (the “Agreement”) is entered into and effective as
of January 1, 2003 (the “Effective Date”), by and between Lilly ICOS LLC, a Delaware Limited Liability Company (the “Company”), Eli Lilly and Company, an Indiana corporation (“Lilly”), and ICOS Corporation, a Delaware
corporation (“ICOS”) (each such entity may be referred to herein as a “Party”). This Agreement amends, restates and supersedes the First Agreement (as defined below). 
  
 RECITALS 
  
 The Company, Lilly and ICOS entered into a Marketing and Sales Service Agreement dated as of September 30, 1998 (the “First Agreement”). Since
that time, the Company, Lilly and ICOS have collaborated on how best to jointly promote the Company’s products to customers in accordance with the terms set forth in the First Agreement. Each Party agrees that such promotional efforts could be
enhanced by amending and restating such First Agreement as set forth below. 
  
 AGREEMENT 
  
 In
consideration of the foregoing, and the covenants and promises contained in this Agreement, the Company, Lilly and ICOS agree as follows: 
  
 ARTICLE I 
 DEFINITIONS

  
 As used herein, the following terms will have the
following meanings: 
  
 1.1 “Affiliate” has the meaning set
forth in Section 1.1 of the LLC Agreement. 
  
 1.2 “Allocated
Business-to-Business Expenses” means the cost of indirect business-to-business activities incurred on behalf of the Company in the Shared Territory associated with Product access, Product availability, Product distribution (excluding any
distribution expenses reimbursed under the Manufacturing Services Agreement between the Parties), and Product reimbursement for segments of the business including but not limited to: long-term care, managed care, government, public health
authorities and the veterans administration, but only to the extent applicable for the Product. Allocated Business-to-Business Expense does not include direct business-to-business expenses included in Marketing and Other Selling Expenses.

 1.3 “Calendar Quarter” means each three (3) month period ending on March 31, June 30, September 30, or
December 31. 
  
 1.4 “Calendar Year” means the twelve (12) month
period ending on December 31st.  
  
 1.5 “cGMPs” means current Good Manufacturing Practices pursuant to 21 C.F.R. § 210 et seq., as amended from time to
time. 
  
 1.6 “Country Detail Allocation” has the meaning
assigned to it in section 4.1. 
  
 1.7 “Detail” means a
person-to-person meeting between a Targeted Physician and a professional sales representative (whether an employee or third-party agent) of Lilly or ICOS during which a presentation of the Product is made to such Targeted Physician as either a Sole
Detail, Primary Detail, Secondary Detail or Third Detail. For purposes of this Agreement, “presentation” will mean that the professional sales representative discusses with such Targeted Physician the uses and benefits of the Product.
Details performed in a particular country shall be reported pursuant to section 8.2 hereof in a manner consistent with the basis on which they were counted for purposes of budget planning (i.e. by each distinct sales force). Detail does not include
a Pre-Launch Detail. 
  
 1.8 “Detail Position Factor”
means the percentage weighting attributed to each reimbursable Detail Priority. For Sole Details the factor is [*], for Primary Details the factor is [*], for Secondary Details the factor is [*] and for Third Details the factor
is [*]. 
  
 1.9 “Detail Priority” means the position in
which sales representatives are instructed to Detail the Product (i.e. Sole Detail, Primary Detail, Secondary Detail and Third Detail). For the purposes of this agreement, Detail Priority will be defined on a country by country basis for each
distinct sales force promoting the Product within the Shared Territory. Actual Detail Priority will not be captured for each Detail recorded by each sales representative; however, Lilly and ICOS must provide reasonable assurance to the Company that
such Detail Priority is implemented by the sales representatives. This assurance may be provided by such items as published call plans or incentive programs specifically communicated to the sales representative. 
  
 1.10 “Effective Sales Representative” means the equivalent of a sales
representative providing Details on a full time basis adjusted by the agreed upon Detail Position Factor associated with the assigned Detail Priority for the sales representative. For example, if a sales representative provides Primary Details on a
full time basis, that sales representative constitutes [*] of an Effective Sales Representative. 
  
 1.11 “FDA” means the United States Food and Drug Administration and any successor agency or entity that may be established hereafter. “FDA” will also be deemed to include the applicable
regulatory authority having jurisdiction over the Product in any particular country or region within the Shared Territory (for example, the European Medicines Evaluation Agency for the European Union). 
  
 1.12 “FDA Risk Management Plan Expenses” means all expenses
associated with activities required by the FDA for the marketing of Cialis in the US and not included in Sales Force Promotional Effort Expenses, Sales Force Incentives, IMS Data Expenses, or Marketing and Other Selling Expenses. 
  
 *Confidential Treatment Requested. 
  

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 1.13 “FDCA” means the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301 et seq.), as amended
from time to time, together with any rules and regulations promulgated thereunder. “FDCA” will also be deemed to include the applicable statutory, regulatory and/or other body of law applicable to the Product in any particular country or
region within the Shared Territory. 
  
 1.14 “ICOS Cost per Sales
Representative” means the applicable ICOS Cost per Sales Representative for a particular Calendar Year, determined in the manner specified in Article VII, as adjusted in the manner described therein. 
  
 1.15 “IMS Data Expenses” means expenses for purchase of sales and marketing
data useful for the marketing of the Product in the Shared Territory from IMS Health or other data providers. 
  
 1.16 “Launch Date” means, with respect to a particular country in the Shared Territory, the date upon which the first marketable shipment of Product occurs within such country after regulatory
approval as a result of a purchase order from a third-party (i.e., not a Party to this Agreement or an Affiliate thereof). 
  
 1.17 “Lilly Cost per Sales Representative” means the applicable Lilly Cost per Sales Representative for a particular Calendar Year, determined in the
manner specified in Article VII, as adjusted in the manner described therein. 
  
 1.18 “LLC Agreement” means the Limited Liability Company Agreement of Lilly ICOS LLC entered into by and between ICOS and Lilly and dated September 30, 1998, as amended from time to time in accordance therewith. 

 
 1.19 “Major EU Countries” means [*] and [*]. 
  
 1.20 “Marketing and Other Selling Expenses” means direct costs and expenses
other than Sales Force Promotional Effort Expenses incurred on behalf of the Company associated with marketing, promoting and selling the Product in the Shared Territory. Such expenses would include but not be limited to the following:
direct-to-consumer marketing, disease awareness programs, health care professional marketing (including samples and customer programs), direct business-to-business expenses, medical marketing, market research, and administrative support, Allocated
Business to Business Expenses, IMS Data Expenses, FDA Risk Management Expenses, Sales Force Incentives plus a reasonable allocation of overhead costs that are specifically associated with such marketing and promotional activities, to the extent the
Company has pre-approved such costs and expenses pursuant to Section 7.1, and has not otherwise reimbursed Lilly or ICOS therefor. 
  
 1.21 “NDA” means the New Drug Application for the Product filed with the FDA pursuant to 21 U.S.C. § 357 and 21 C.F.R. § 314, as such laws may
be amended form time to time, together with all additions, deletions and supplements thereto. “NDA” will also be deemed to include any similar authorization, approval, consent, license, permit, franchise, permission, notification, filing
or registration required in a particular country or region within the Shared Territory to market, sell and distribute Product in such country or region. 
  
 *Confidential Treatment Requested. 
  

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 1.22 “Non-Major EU Countries” means the Shared Territory excluding the United States, the Major EU
Countries, Canada and Mexico. 
  
 1.23 “Package Inserts”
means labeling that is approved by the FDA that meets the specific requirements as set forth in 21 C.F.R. §§ 201.56 and 201.57 (as such regulations may be amended from time to time), or similar labeling in countries within the Shared
Territory other than the United States. 
  
 1.24 “PDMA” means the
Prescription Drug Marketing Act of 1987, as amended from time to time, together with any rules or regulations promulgated thereunder. “PDMA” will also be deemed to include the applicable statutory, regulatory and/or other body of law
applicable to similar subject matter in any particular country or region within the Shared Territory. 
  
 1.25 “Prelaunch Detail” means a person-to-person meeting occurring prior to the Launch Date between a Targeted Physician and a professional representative of Lilly or ICOS during which a discussion is
held regarding sexual dysfunction and other topics specified by the Company consistent with regulatory restrictions on pre-approval discussions in the applicable country. 
  
 1.26 “Primary Detail” means a Detail during which the Product is the primary product presentation to be delivered. Actual
Detail Priority will not be captured for each Detail recorded by each sales representative; however, Lilly and ICOS must provide reasonable assurance to the Company that such Detail Priority is implemented by the sales representatives. This
assurance may be provided by such items as published call plans or incentive programs specifically communicated to the sales representative. 
  
 1.27 “Product” means any product of the Company consisting of a pharmaceutical preparation(s) that contains a PDE5 Agent and is intended for use in the
treatment or prevention of human diseases or conditions, including without limitation Cialis® (tadalafil). For purposes of this Agreement, “PDE5 Agent” means an agent that blocks, inhibits or stimulates the biochemical activities of, or alters the expression of, the cyclic guanosine monophosphate-binding, cyclic
guanosine monophosphate-specific phosphodiesterase. 
  
 1.28
“Promotional Materials” means any materials (including, without limitation, Product labeling and Package Inserts) used for advertising and promoting the Product in the Shared Territory, including promotional materials produced by the
Company (examples include, but are not limited to, journal ads, brochures, service items, managed care pull through sheets, formulary presentations, price lists, monographs, Internet pages and websites, and telephone, radio or television
advertisements) and materials produced by outside sources (examples include, but are not limited to, medical reprints and textbooks) to the extent created in cooperation with or distributed by the Company, and any other items defined as labeling or
advertising in 21 U.S.C. § 201(m) or 21 C.F.R. § 202.1(l)(1) (as such laws may be amended from time to time). 
  
 1.29 “Sales Force Promotional Effort” means, with respect to a particular country in the Shared Territory, the aggregate number of Effective Sales
Representatives planned for a particular Calendar Year. 
  

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 1.30 “Sales Force Promotional Effort Expenses” means those expenses related to Sales Force Promotional
Effort within the Shared Territory, calculated in the manner specified in Section 7.  
  
 1.31 “Sales Force Incentives” means those cash incentives not constituting a Sales Force Promotional Effort Expense paid to sales representatives (including sales force management) that are
attributable to Product performance and determined in accordance with each Party’s respective sales force incentive program as pre-approved by the Company in accordance with Section 7.9. 
  
 1.32 “Sales Force Structure” means the structure used by Lilly or ICOS, as
the case may be, from time to time to conduct its sales and marketing operations in a specific country including, without limitation, number of sales representatives, sales territory configurations and sales force relationships with medical
professionals. 
  
 1.33 “Secondary Detail” means a Detail
during which the Product is the second product presentation to be delivered. Actual Detail Priority will not be captured for each Detail recorded by each sales representative; however, Lilly and ICOS must provide reasonable assurance to the Company
that such Detail Priority is implemented by the sales representatives. This assurance may be provided by such items as published call plans or incentive programs specifically communicated to the sales representative. 
  
 1.34 “Shared Territory” means Canada, Mexico, the United States of America
(not including its territories or possessions), the countries of the European Union/European Free Trade Area (in other words, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain,
Sweden, the United Kingdom, Iceland, Liechtenstein, Norway and Switzerland) and those additional countries that hereafter become included in the definition of “Territory” set forth in Section 1.1 of the LLC Agreement. 
  
 1.35 “Sole Detail” means a Detail during which the Product is the sole
product presentation to be delivered. Actual Detail Priority will not be captured for each Detail recorded by each sales representative; however, Lilly and ICOS must provide reasonable assurance to the Company that such Detail Priority is
implemented by the sales representatives. This assurance may be provided by such items as published call plans or incentive programs specifically communicated to the sales representative. 
  
 1.36 “Targeted Physicians” means any health care professional in the Shared Territory with prescribing authority whose
practice or prescribing activities is focused on an area of medicine relevant to the Product, including but not limited to: Urology, General Practice, Family Practice, Internal Medicine, Endocrinology, Diabetology, Cardiology or Psychiatry. If the
Parties agree with respect to any country, “Targeted Physicians” may also include any licensed pharmacist. 
  
 1.37 “Third Detail” means a Detail during which the Product is the third product presentation to be delivered. Actual Detail Priority will not be
captured for each Detail recorded by each sales representative; however, Lilly and ICOS must provide reasonable assurance to the Company that such Detail Priority is implemented by the sales representatives. This assurance may be provided by such
items as published call plans or incentive programs specifically communicated to the sales representative. 
  

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 ARTICLE II 
 RESPONSIBILITIES OF THE COMPANY 
  
 2.1
Responsibilities of the Company. With respect to the Shared Territory, the Company will be responsible for the following functions: 
  
 A. Direction. The Company will have overall responsibility for the approval, supervision, coordination and direction of the joint promotion
activities contemplated by this Agreement. 
  
 B.
Guidelines. The Company will establish guidelines to govern the joint promotion of the Product (the “Promotional Guidelines”). The Promotional Guidelines will include initial provisions describing (i) the authority of each Project
Director (who are to be appointed by Lilly and ICOS pursuant to Sections 3.1(A) and 3.2(A)), (ii) the types of decisions and actions that must be presented to the Company for approval, and (iii) the procedures to be followed by Lilly and ICOS in
conducting marketing and sales activities on behalf of the Company. The Promotional Guidelines will be completed by the Company as soon as practicable following the execution of this Agreement. Notwithstanding their completion, Lilly and ICOS may
mutually revise the Promotional Guidelines from time to time during the term of this Agreement; provided, however, that any material revisions to the Promotional Guidelines must be approved in advance by the Company. 
  
 C. Annual Promotional Plan. The Company will develop a detailed annual
promotional plan which will outline the strategy for the marketing and sale of the Product by Lilly and ICOS on the Company’s behalf in each country within the Shared Territory (the “Promotional Plan”). The Promotional Plan for a
specific Calendar Year will be completed as soon as practicable prior to the beginning of the Calendar Year, and will not be considered final until the Company’s overall budget has been reviewed and approved by the Company’s Board (as
defined in the LCC Agreement). To the extent practicable, the Parties will align the timing of development of the Promotional Plan to Lilly and ICOS’ internal annual business planning processes. The Promotional Plan will specify the marketing
strategy to be used for the joint promotion of the Product, types of Promotional Materials to be developed, levels of Promotional Support (as described in Section 2.1(E)), distribution plans for Product samples (and/or vouchers that enable patients
to obtain complimentary samples of the Product free of charge from pharmacists) and such other matters as the Company determines to be appropriate. The Company may adjust the Promotional Plan during the course of a year based upon unanticipated
changes in circumstances. 
  
 D. Pricing and Distribution.
Unless the Company elects otherwise with respect to any country within the Shared Territory, the Company will make all sales of the Product and will have sole control of distribution (other than Product samples) and pricing of the Product. The
Company will determine strategies and tactics with respect to pricing, contracting and other related activities with managed care organizations, mail order pharmacies, wholesalers and other distribution channels for Products. The Company will
utilize a pricing strategy commensurate with the therapeutic profile of the Product. 
  
 E. Promotional Support. The Company will either directly or indirectly provide, at its sole expense, the appropriate resources required to facilitate marketing, planning, and 
  

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 professional services support of the Product in the manner contemplated by this Agreement. In particular, the Company
will approve the amount of funds to be spent on an annual basis for each country in the Shared Territory for matters including, but not limited to, Marketing Expenses, and other Selling Expenses, Allocated Business-to-Business Expenses, IMS Data
Expenses, FDA Risk Management Plan Expenses, and Sales Force Incentives. The determination will be based upon, among other factors, an annual analysis of historical and forecasted promotional activity of leading competitors in the relevant
therapeutic class and other leading pharmaceutical products prescribed by a broad base of physicians. 
  
 F. Training Support from the Company. The Company will either directly or indirectly provide to Lilly and ICOS, at the Company’s sole expense,
initial sales training materials for the Product. The Company will also either directly or indirectly provide to Lilly and ICOS, at the Company’s sole expense, all later-developed sales training, launch and sales meeting materials concerning
the Product. 
  
 G. Trademark, Labeling, Package Inserts and
Promotional Materials. The Company will develop any trademark(s) to be used in the promotion of the Product. The Company will develop the Product label and related Package Inserts for each country within the Shared Territory. In addition, the
Company will, at its sole cost, develop, prepare, produce and make available to Lilly and ICOS appropriate quantities of all Promotional Materials to be used to jointly promote the Product within the Shared Territory. All such Promotional Materials
will comply with all applicable governing laws and/or regulations. The Company will, where legally permissible, take all reasonable steps to ensure that both Lilly’s and ICOS’ name and/or logos appear in equal prominence on the Product
label, Package Inserts, sample packages, and Promotional Material. 
  
 H. Monitoring Detailing. The Company will have the right to monitor the number and the qualitative impact of the Parties’ respective activities relating to conducting Details, using such means as are reasonable and customary in
the industry. If the Company, in the course of such monitoring, discovers that there is an apparent difference in the qualitative impact between the Parties’ Details, and the Company determines that the difference is material, then the Company
will investigate the difference and will take whatever steps it deems appropriate to address the difference in light of the result of such investigation. 
  
 I. Determination of Sales Force Promotional Effort. The Company will annually determine the Sales Force Promotional Effort and the expected number
and type of Details to be provided for the Product for each country within the Shared Territory pursuant to the procedures stated in Article IV. 
  
 J. Other Responsibilities. The Company will be responsible for taking such other action as may be reasonably necessary to accomplish the purpose of
this Agreement. 
  

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 ARTICLE III 
 PROMOTION OF PRODUCT 
  
 3.1 Lilly
Responsibilities. Lilly will be responsible for the following: 
  
 A. Lilly Project Director. Lilly will name at least one (1) individual to serve as its Project Director. The Lilly Project Director will be the primary Lilly contact person for all purposes of this Agreement, except to the extent
this Agreement provides otherwise or the Parties otherwise agree. In addition, the Lilly Project Director will be responsible for managing communications and performing other activities as specified in this Agreement. Lilly’s initial Project
Director will be the Cialis Product Team Marketing Director. Lilly may designate a new Project Director by providing the Company and ICOS with written notice thereof, provided that any new designee will have a comparable level of authority within
the Lilly organization. 
  
 B. Product Detailing. Lilly
will use its commercially reasonable efforts to conduct Details so as to promote the Product to Targeted Physicians in a manner consistent with all applicable laws, rules and regulations, and the Promotional Guidelines adopted pursuant to this
Agreement. 
  
 C. Other Activities. Lilly will conduct
other activities relating to marketing and promotion of Products as reasonably requested by the Company from time to time. 
  
 3.2 ICOS Responsibilities. ICOS will be responsible for the following: 
  
 A. ICOS Project Director. ICOS will name at least one (1) individual to serve as its Project Director. The ICOS Project Director will be the
primary ICOS contact person for all purposes of this Agreement, except to the extent this Agreement provides otherwise or the Parties otherwise agree. In addition, the ICOS Project Director will be responsible for managing communications and
performing other activities as specified in this Agreement. ICOS’ initial Project Director will be the Vice-President of Sales and Marketing. ICOS may designate a new Project Director by providing the Company and Lilly with written notice
thereof, provided that any new designee will have a comparable level of authority within the ICOS organization. 
  
 B. Product Detailing. ICOS will use its commercially reasonable efforts to conduct Details so as to promote the Product to Targeted Physicians in a
manner consistent with all applicable laws, rules and regulations, and the Promotional Guidelines adopted pursuant to this Agreement. 
  
 C. Other Activities. ICOS will conduct other activities relating to marketing and promotion of Products as reasonably requested by the Company from
time to time. 
  
 ARTICLE IV 
 SALES FORCE PROMOTIONAL EFFORTS 
  
 4.1 Sales Force Promotional Effort. Prior to the end of each Calendar Year, for the following Calendar Year, with respect to each country within the Shared
Territory, [*] will determine the Sales Force Promotional Effort (in addition, [*] will also make a preliminary determination of the Sales Force Promotional Effort for the next succeeding Calendar Year). In 
  
 *Confidential Treatment Requested. 
  

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 establishing the Sales Force Promotional Effort, [*] will consider, among other factors, (i) the market
opportunity for the Product in the particular country, (ii) the regulatory and other structural issues unique to such country, and (iii) the promotional options other than physician detailing (e.g., DTC advertising, formulary positioning) available
in such country. [*] shall then allocate the Sales Force Promotional Effort between Lilly and ICOS, subject to the provisions of section 4.2 and 4.3 (the number of position-adjusted Details allocated to Lilly or ICOS for a particular country
in a particular Calendar Year is referred to herein as the “Country Detail Allocation”). In establishing the Lilly and ICOS Country Detail Allocations, [*] will consider, among other factors, (i) the then-existing Sales Force
Structure of Lilly and ICOS for such country and the costs to each Party to establish and maintain such sales force, (ii) the specific types of Targeted Physicians the sales representatives should target when performing Details, (iii) the
third-party alternatives available for physician Detailing in such country, and (iv) the overall regional allocation targets specified in section 4.2(C). Notwithstanding [*] establishing the Sales Force Promotional Effort in the manner
described above, at any time prior to the end of any Calendar Year, [*] may make adjustments to the Sales Force Promotional Effort during such Calendar Year (or for the next succeeding Calendar Year) based on changes in circumstances or
failure of assumptions underlying the original determination. 
  
 4.2 Default
Allocation of the Sales Force Promotional Effort. For the initial Calendar Year for which ICOS is directly providing Details in a country (with the exception of the United States), ICOS may choose to provide from [*]% of the Sales Force
Promotional Effort in such country. If, during any subsequent Calendar Year, [*] cannot determine ICOS’ and Lilly’s respective allocations of the Sales Force Promotional Effort for any country for the following Calendar Year, then
(subject to the provisions of Section 4.3) at [*] option, the prior Calendar Year’s allocation shall be used. If [*] does not elect this option then between [*] and [*] percent [*] of the Sales Force
Promotional Effort for such country shall be allocated to ICOS (with the actual percentage to be determined by [*] in its discretion). Lilly shall provide the balance of the Sales Force Promotional Effort (i.e., the difference between the
Sales Force Promotional Effort and the number of Effective Sales Representatives provided by ICOS), assuming ICOS meets its minimum obligation.  
  
 A. Detail Participation Level. Provided that ICOS provides at least [*] percent [*] of the Sales Force Promotional Effort in a
country (or such lesser amount as determined by [*] in accordance with section 4.2(C)), ICOS’ election not to provide [*] percent [*] of the Sales Force Promotional Effort for such country in any given year will not
preclude ICOS from participating fully (providing [*]% of the Detail efforts in such country) in subsequent years. Notwithstanding the foregoing, if ICOS elects to participate fully in such country’s sales force efforts in a
following Calendar Year (“Year X”), then to the extent Lilly elected to use additional Lilly sales staff, and not a third-party sales force, to provide any or all of the Details that ICOS elected not to provide in the year preceding Year
X, [*] will allocate the Sales Force Promotional Effort to be provided in such country for the following Calendar Year between Lilly (taking into consideration the additional Lilly sales personnel maintained to provide incremental Details for
the Company) and ICOS in as equitable a manner as possible, taking into consideration, among other things, [*]. At least twelve months prior to ICOS’ first allocation of the Sales Force Promotional Effort in a particular country in the
Shared Territory outside the United States, the Parties will discuss [*] as a result of ICOS entering such country and providing a portion of the Details, and if ICOS has sales force openings that it intends to fill through external hiring,
ICOS will [*]. 
  
 *Confidential Treatment Requested.

  

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 B. Notice of Detail Participation Level. Subject to [*] having made a preliminary
determination of the Sales Force Promotional Effort for such country at least one year in advance as required by Section 4.1, ICOS shall provide the Company and Lilly at least [*] notice (or, if such preliminary determination is not made by
[*] on a timely basis, [*] days after the preliminary determination of the Sales Force Promotional Effort is actually made) prior to the beginning of the Calendar Year in which it intends to begin providing sales force promotional
effort in a country in the Shared Territory outside the United States (and every anniversary date thereof) regarding ICOS’ anticipated sales force promotional effort for the applicable Calendar Year. Once ICOS has begun providing Details in a
particular country, ICOS shall not decrease its share of the Sales Force Promotional Effort for a particular country from the prior year’s level without the prior written consent of the other Parties, which consent shall not be unreasonably
withheld. 
  
 C. Planning Detail Allocation by Region.
[*] will in good faith seek to establish an allocation of the Sales Force Promotional Effort that is rational and efficient for both Lilly and ICOS, with a target of assuring that ICOS provides at least [*] of the aggregate Sales Force
Promotional Effort in each of the following regions: (1) [*] and (2) the countries in the Shared Territory outside [*] in which ICOS is obligated to provide Details during the applicable Calendar Year. In establishing such allocation,
[*] may determine that it is appropriate for ICOS to provide less than [*] of the Sales Force Promotional Effort (or for Lilly to provide as much as 100% thereof) in a particular country where ICOS is otherwise obligated to
participate. As long as ICOS agrees to provide at least [*] of the aggregate Sales Force Promotional Effort in [*] and the remainder of the Shared Territory (excluding countries or regions in which ICOS is not yet obligated to provide
Details) in accordance with the allocation plan approved by [*], ICOS shall be deemed to have met its minimum obligations per country as set forth in this Article IV. In the event that the Parties cannot after good faith efforts agree on a
regional allocation of the aggregate Sales Force Promotional Effort, the Parties shall revert to a country-by-country allocation consistent with the other provisions of this Article IV. 
  
 4.3 Allocation of Sales Force Promotional Effort through Specified Calendar Year.
Notwithstanding Section 4.1 and 4.2, the Parties hereby agree that the Sales Force Promotional Effort to be determined by [*] for the specified Calendar Year shall be allocated among ICOS and Lilly in the following manner: 
  
 A. United States. With respect to Sales Force Promotional
Effort to be performed in the United States, ICOS shall use [*] efforts to have hired, trained and in the field [*] prior to the anticipated Launch Date in the U.S. a U.S. sales force of at least [*] sales representatives. No
later than the U.S. launch meeting, ICOS will use [*] efforts to have another [*] sales representatives that have been hired, trained and ready to promote the Product at launch in the U.S., for a total of 165 representatives. ICOS
shall then use [*] efforts to maintain, at a minimum, [*] representatives with a Detail Priority no lower than Primary Detail through the end of [*], unless [*] determines from time to time that a lower number of sales
representatives is appropriate. Beginning with [*], ICOS shall be required to provide at least [*] of the applicable Sales Force Promotional Effort (which may require more than [*] sales representatives) unless 
  
 *Confidential Treatment Requested. 
  

 10 

 the Company determines that an alternative allocation is appropriate. With respect to [*] and thereafter,
[*] shall determine ICOS’ and Lilly’s respective Country Detail Allocation for the United States in the manner described in Sections 4.1 and 4.2 
  
 Lilly agrees that ICOS shall be entitled to deliver and be compensated for up to sixteen (16) months of Sole Detail activity
by up to 165 sales representatives, beginning not more than six (6) months prior to the US Launch Date and ending on the earlier of (i) ICOS’ sales force promoting the commercial distribution of a pharmaceutical product other than Product or
(ii) December 31, 2004. ICOS may at its election provide Primary Details rather than Sole Details, and its compensation will be accordingly reduced. If, prior to December 31, 2004, any portion of ICOS’ sales force begins to promote the
commercial distribution of a pharmaceutical product other than Product then (i) the sales representatives that promote such other product shall be not be eligible for Sole Detail reimbursement, but rather the Detail Position Factor will be
determined based on the Detail Priority given Product and (ii) the sales representatives that do not promote such other product shall continue to be eligible for Sole Detail reimbursement until December 31, 2004. 
  
 B. Major EU Countries, Mexico and Canada. With respect to the Sales
Force Promotional Effort to be provided in the Major EU Countries, Mexico and Canada through December 31, [*], the Sales Force Promotional Effort shall be allocated one hundred percent (100%) to Lilly. Beginning January 1, [*] and for
the remainder of the [*] Calendar Year, at least [*] of the applicable Sales Force Promotional Effort for such period shall be allocated to ICOS (subject to the provisions of section 4.2(C)). With respect to the [*] Calendar
Year and thereafter, [*] shall determine ICOS’ and Lilly’s respective allocation of the Sales Force Promotional Effort in Major EU countries, Mexico and Canada in the manner described in Sections 4.1 and 4.2. 
  
 C. Non-Major EU Countries. With respect to the Sales Force
Promotional Effort to be provided in the non-Major EU Countries through the end of the [*] Calendar Year, the Sales Force Promotional Effort shall be allocated one hundred percent (100%) to Lilly. For the [*] Calendar Year, at least
[*] of the applicable Sales Force Promotional Effort shall be allocated to ICOS (subject to the provisions of section 4.2(C)). Thereafter, [*] shall determine ICOS’ and Lilly’s respective allocation of the Sales Force
Promotional Effort in the manner described in Sections 4.1 and 4.2. 
  
 If ICOS does not agree to meet its minimum obligation for Sales Force Promotional Effort as stated above in any Non-Major EU country by [*], then at Lilly’s option, ICOS will have no further rights to participate in the
promotion of the Product in such country at any future time, and such country shall cease to be a part of the Shared Territory and shall instead become part of the Lilly Territory (each such country a “Ceded Country”). Provided, however,
if ICOS enters any such country with the good faith intention to meet its obligations, but is unable to do so due to circumstances beyond its control, such country will not be deemed a Ceded Country provided that ICOS advises Lilly in good faith
that it intends to fulfill its obligations the following year and does in fact do so. 
  
 4.4 Failure to Deliver Allocated Details. Compliance with the Country Detail Allocation will be assessed on an annual basis for each of Lilly and ICOS on a country by country basis. In 
  
 *Confidential Treatment Requested. 
  

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 the event that Lilly and/or ICOS elect to delegate some or all of their allocation of the Sales Force Promotional Effort
to a third-party sales force, the Details reported by the third-party sales force will be considered Details performed by the delegating Party in determining whether the delegating Party has achieved the Country Detail Allocation. If ICOS and/or
Lilly does not complete at least [*]% of the Country Detail Allocation in a specific country, then the non-performing Party will promptly pay to the other Party, no later than March 31st of the year following the Calendar Year in which the Country Detail Allocation was not achieved, an amount equal to (i) the difference between
[*] and the actual percentage of Details performed (calculated as the actual Details divided by the Country Detail Allocation), multiplied by (ii) [*] its Cost per Sales Representative multiplied by (iii) the Effective Sales
Representatives associated with the non-performing Party’s Country Detail Allocation. Notwithstanding the foregoing, neither Lilly nor ICOS will be deemed to have failed to perform any Details that have been delegated to the other Party
pursuant to Section 5.2. If both Parties fail to meet [*]% of the Country Detail Allocation, each shall make a payment to the other as calculated above. 
  

4.5 Verification of Detail Performance. All Detail reports used in verifying the delivery of Country Detail Allocations are subject to audit in accordance with
Section 11.6. 
  
 ARTICLE V 
 DELEGATION OF DETAIL OBLIGATIONS 
  
 5.1 Delegation of Sales Force Promotional Effort. ICOS and Lilly will each perform its respective Country Detail Allocation as determined in accordance with
Article IV. Subject to Sections 5.2 and 15.2, ICOS and Lilly each has the right, but not the obligation, to use a third-party sales force to provide any portion or all of its allocation of the Sales Force Promotional Effort. However, delegation of a
portion or all of its allocation of the Sales Force Promotional Effort does not release the Party from the Country Detail Allocation requirement or other obligations under the agreement. For the purposes of this agreement, the third-party sales
force is considered to be within the Party’s Sales Force Structure and thus calculated within the minimum Effective Sales Representative and Country Detail Allocation requirements. 
  
 5.2 Right of First Negotiation. In the event that either ICOS or Lilly (the
“Delegating Party”) intends to utilize a third-party sales force to provide any of its allocation of the Sales Force Promotional Effort during a Calendar Year, the Delegating Party shall first offer to the other Party (i.e., either ICOS or
Lilly, as applicable) (the “Receiving Party”) the opportunity to negotiate in good faith for the right to conduct such Sales Force Promotional Effort on the Delegating Party’s behalf. The Delegating Party shall provide the Receiving
Party with written notice of its intent, which notice shall contain an identification of the country and the number of Effective Sales Representatives to be delegated to a third-party sales force during the relevant Calendar Year. The Receiving
Party shall have fourteen (14) days to accept or reject the opportunity to negotiate for the right to provide the Effective Sales Representatives. If the Receiving Party rejects the opportunity or fails to respond in writing within fourteen (14)
days, the Delegating Party may proceed to negotiate with any third party. If the Receiving Party responds affirmatively, then ICOS and Lilly will negotiate in good faith for a period of up to [*] days in an effort to agree on commercially
reasonable terms under which the Delegating Party would delegate the applicable number of Effective Sales Representatives to the Receiving Party; provided, however, neither Party shall be obligated to enter into such agreement unless the 

 
 *Confidential Treatment Requested. 
  

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 Parties reach mutually agreeable terms with respect thereto. If the Parties are unable to reach an agreement, the
Delegating Party shall be free to enter into an arrangement with a third party. In the event Effective Sales Representatives are delegated to the Receiving Party (a) the delegated Effective Sales Representatives shall be added to the Receiving
Party’s allocation of the Sales Force Promotional Effort for all purposes of this Agreement and (b) the Receiving Party’s reimbursement for Sales Force Promotional Effort Expenses for the applicable country will be recalculated to account
for the negotiated reimbursement rate if applicable. For purposes of this Section 5.2, an Affiliate’s sales force will not be characterized as a “third-party sales force.” 
  
 ARTICLE VI 
 REGULATORY MATTERS 
  
 ICOS and Lilly will perform
all Product related marketing efforts consistent with all applicable legal and regulatory requirements, including approved labeling. Neither Lilly nor ICOS will promote the Product for any use not approved by the appropriate regulatory authorities,
unless otherwise permitted by local law or regulation, or promote the Product in any manner or with any materials not approved by the Company. Neither Lilly nor ICOS will make any (a) false or misleading representations to customers or others
regarding ICOS or Lilly (as appropriate), the Company or the Product or (b) representations, warranties or guarantees to customers or others with respect to specifications, features or capabilities of the Product except as contained in the Package
Insert or Promotional Material approved by the Company.  
  
 ARTICLE VII 
 REIMBURSEMENT OF COSTS AND EXPENSES 
  
 7.1 Annual Budgets. Prior to the end of each Calendar Year, for the following Calendar Year, [*] will approve the Annual
Promotional Plans prepared for each country within the Shared Territory. The Parties acknowledge that Lilly and ICOS each will use good faith commercially reasonable efforts not to commit to or incur expenses in excess of the amounts budgeted by the
Company without the Company’s express prior approval. However, the Company shall pay expenses incurred in good faith in accordance with guidelines previously approved by the Company that, due to unanticipated business conditions, exceed the
approved budget amounts (e.g., higher Sales Force Incentive Expense due to higher levels of sales.) 
  
 7.2 Reimbursement for Certain Expenses. The Company shall reimburse ICOS and Lilly for Marketing and Other Selling Expenses incurred on behalf of the Company in the Shared Territory. In general, the Company
will reimburse such expenses based on the direct cost of the goods or services associated with marketing, promoting and selling the Product in the Shared Territory. However, certain expenses may be reimbursed via an allocation mechanism which will
be reviewed and approved as a part of the business planning process. 
  
 7.3 Reimbursement for Sales Force Promotional Effort Expenses. Lilly and ICOS shall each be reimbursed for their respective Sales Force Promotional Effort Expenses. The reimbursement shall be calculated on a monthly basis and
be equal to the lesser of (a) the actual Effective Sales Representatives in the field as of the end of the month multiplied by an amount equal to one-twelfth of the respective Lilly or ICOS Cost per Sales Representative or (b) the Company approved
Effective Sales Representatives for each distinct sales force within a country multiplied by an amount equal to one-twelfth of the respective Lilly or ICOS Cost per Sales 
  
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 Representative. Reimbursement for use of third-party sales representatives shall be in accordance with Section 7.8. Such
expenses shall be included in the invoice contemplated by Section 7.10. 
  
 7.4
Determination of the Initial Lilly and ICOS Cost per Sales Representative. The Cost Per Sales Representative shall be calculated on a country by country basis for each of Lilly and ICOS. The guidelines for cost inclusion or exclusion shall be
applied consistently by both Parties. The Cost Per Sales Representative shall represent the ongoing cost of Lilly and ICOS’ sales organization including costs associated with normal turnover. However, the Cost per Sales Representative shall not
include the cost of initial sales representative training or the costs associated with establishing or expanding a sales force. The Cost per Sales Representative calculation shall take into consideration both direct and indirect costs of the sales
force. Lilly and ICOS shall each take into consideration its previously defined accounting and reporting system when determining if a cost is to be considered direct or indirect. Direct costs that are not specifically excluded per other sections of
this Agreement shall be [*]% allocated to the Cost per Sales Representative. Indirect costs that are not specifically excluded per other sections of this Agreement shall be allocated to the Cost per Sales Representative calculation based on
reasonable analysis to be reviewed and agreed to by each Party. In general, costs specifically identifiable by Product should not be included in the Cost per Sales Representative as these costs shall be accounted for under Marketing and Other
Selling Expenses. These costs include such things as Product specific training initiatives, Product samples, customer programs, sample vouchers, IMS Data Expenses and Sales Force Incentives. Finally, a high-level adjustment to be agreed upon by the
Parties shall be applied to cover the reasonable approximation of corporate general and administrative expenses that support the Sales Force Structure. 
  

	 	(a)	Initial Lilly Cost per Sales Representative. The Parties have agreed that the initial Lilly Cost per Sales Representative shall be the amount specified in Attachment A.

  

	 	(b)	Initial ICOS Cost per Sales Representative. The Parties have agreed that the initial ICOS Cost Per Sales Representative for the United States shall be the amount set forth in
Attachment A. The applicable initial rate for other countries in the Territory shall be established through good faith negotiation between the parties as a part of annual planning process prior to year of entry in the applicable country(ies), using
a methodology similar to that used to establish the Lilly rates for the applicable country. This rate shall then be recalculated for each country no later than 60 days following the twelfth month of participation in the promotion of an approved
Product in that country, or after such other period as the parties may agree. The rate shall be recalculated in accordance with provisions outlined above based on costs actually incurred during that twelve month period. This calculation shall then
be made available to Lilly for review and approval. Once the revised rate has been reviewed and approved by Lilly, it will replace the Initial ICOS Cost per Sales Representative for that country. The reimbursement provided to ICOS pursuant to
Section 7.11 for the initial twelve month period of participation in the Sales Force Promotional Effort for a specific country shall then be recalculated based on the revised Initial ICOS Cost per Sales Representative. 

  
 *Confidential Treatment Requested. 
  

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 Based on the outcome of this calculation, either (a) the Company shall reimburse ICOS the difference
between the original reimbursement and the revised reimbursement in the event the revised reimbursement exceeds the original reimbursement or (b) ICOS shall reimburse the Company the difference between the original reimbursement and the revised
reimbursement in the event the revised reimbursement is less than the original reimbursement. The ICOS Cost per Sales Representative from the thirteenth month of participation in a country through the end of the Calendar Year which includes that
month, shall be equal to the revised Initial ICOS Cost per Sales Representative adjusted by the applicable annual inflation factor described in Section 7.5 (subject to pro rata reduction based on the percentage of months remaining in the Calendar
Year). 
  
 7.5 Costs per Sales Representative Inflation Adjustment. Through
2006, the Lilly and ICOS Cost per Sales Representative shall each be adjusted on January 1st of each Calendar Year.
The adjusted Lilly and ICOS Cost per Sales Representative shall be equal to the product of the previous year’s Lilly and ICOS Cost per Sales Representative, respectively, multiplied by the expected pharmaceutical pay increase trend for the
applicable year reported by Mercer Human Resource Consulting Inc. published during the prior year. For example, the inflation adjustment applied as of January 1, 2004 shall be the expected 2004 rate as published in the 2003/2004 report distributed
during the 2003 calendar year. If the Mercer report is not available for a particular country, the Parties shall agree upon an appropriate adjustment. 
  
 7.6 Recalculation of the Cost per Sales Representative. No later than June [*] (and every [*] thereafter), Lilly and ICOS shall recalculate their
respective cost per sales representative in accordance with the provisions outlined in Section 7.4 above, based on actual expenses incurred by each respective company. This rate will become the Cost per Sales Representative as of January
1st of the subsequent Calendar Year (i.e. [*]), and will be subject to the inflation adjustment provisions
outlined in Section 7.5 and 7.7. 
  
 7.7 Hyperinflation. In the event of
unusual and significant changes in the Cost per Sales Representative in the local currency during a given year due to hyperinflationary circumstances, the Parties may agree to adjust the Lilly Cost per Sales representative or ICOS Cost per Sales
Representative more frequently than annually. 
  
 7.8 Reimbursement for Third
Party Sales Forces. In the event that either Lilly or ICOS elect to delegate a portion of all of its allocation of the Sales Force Promotional Effort pursuant to Section 5.1, these costs shall be reimbursed by the Company based on the lesser of
(a) the cost for the applicable number of Effective Sales Representatives determined based on the Party’s allocation of the Sales Force Promotional Effort multiplied by the applicable Lilly or ICOS Cost per Sales Representative or (b) the
actual cost incurred for the contracted third-party sales force. If no Cost per Sales Representative has yet been established for ICOS in a particular country, and if the proposed third-party rate exceeds Lilly’s Cost per Sales Representative
in the applicable country, Lilly will have the right to approve the proposed third-party rate, which approval shall not be unreasonably withheld; provided, that if the parties had a negotiation pursuant to section 5.2 but were unable to come to
terms regarding the country in question, the third-party rate will 
  
 *Confidential Treatment Requested. 
  

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 be deemed approved if it is less than the highest amount ICOS offered to pay Lilly to perform the same Details. In no
event shall the Company reimburse a Party for third-party sales activities at a rate higher than the highest rate offered to the other Party to provide the associated Details (assuming the parties actually negotiated with respect to the country in
question). 
  
 7.9 Sales Force Incentives. The Company shall approve in
advance any Sales Force Incentives program, which approval shall not be unreasonably withheld. The Company will reimburse Lilly and ICOS for Sales Force Incentives paid in accordance with an approved program. To the extent actual Sales Force
Incentives incurred by Lilly and/or ICOS, exceed the amounts determined in accordance with the approved bonus program, the excess bonus amounts will not be reimbursed by the Company.  
  
 7.10 Quarterly Report/Invoice. Unless the Parties agree to a different procedure,
within forty-five (45) days following the end of each Calendar Quarter, ICOS and Lilly each will prepare a report (the “Invoice”) Detailing (a) Marketing and Other Selling Expenses, Allocated Business-to-Business Expenses, FDA Risk
Management Expenses and IMS Data Expenses incurred and (b) Sales Force Promotional Effort Expenses incurred in each country within the Shared Territory during the prior Calendar Quarter. Within forty-five (45) days following the end of each Calendar
Quarter, ICOS and Lilly will each forward its Invoice to the Company with a copy to the other Party for review and approval by a designated representative of each Party. Each Party shall provide sufficient Detail with each Invoice to support the
expenses being charged and will make available to the other Parties all underlying supporting documentation and records. If an objection by a Party with respect to an Invoice is not raised within fifteen (15) days of receipt thereof, such Invoice
will be deemed approved (such approval will not be construed as a waiver of any audit or other rights related thereto). Once approved as described above, each invoice will be submitted to the Company for payment in accordance with the terms set
forth in Section 7.8. If necessary, adjustments or corrections to an Invoice as agreed to by ICOS and Lilly will be made before the Invoice is submitted to the Company for payment. The Company, or its representatives, will have the right to audit
both ICOS and Lilly records with respect to such Invoices, in accordance with Section 8.2(D). 
  
 7.11 Reimbursement Payments. The Company will make any payments due under this Article VII on a quarterly basis to ICOS and Lilly, net fifteen (15) days after approval of an Invoice as described in Section 7.10

  
 7.12 Prelaunch Detail Reimbursement. The Company will approve the type
and amount of Prelaunch Details to be conducted by each of Lilly and ICOS. The Company will reimburse Lilly and ICOS for such activities pursuant to the Prelaunch Detail expenses in accordance with the budget for such activities approved by the
Company. Any claim for expenses related to Pre-launch Details shall be included in the Invoice. 
  

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 7.13 Exchange Rate. When making payments and/or reimbursements to either Lilly or ICOS, the Company will make all
such payments and/or reimbursements in U. S. Dollars. Company agrees in determining such amounts, it will use U. S. Generally Accepted Accounting Principles for the translation of foreign currency transactions and balances into U.S. Dollars.

  
 ARTICLE VIII 
 ACCOUNTING AND REPORTS 
  
 8.1 Books and Records. The Parties will keep comprehensive books and records relating to their respective obligations under this Agreement in accordance with
generally accepted accounting principles. With respect to the Company, such books and records will document Product sold, shipped and returned for the Calendar Year as well as all reimbursed expenses. All such books and records will be maintained
for at least three (3) years following the relevant Calendar Year, or such longer period as is required by law. 
  
 8.2 Reports. The Parties will provide the following information to one another: 
  
 A. Product Sold. After the Launch Date, within twenty (20) business days after the end of each Calendar Quarter, the
Company will deliver to each of Lilly and ICOS a report indicating the quantity of Product sold and the value of these sales, including revenues derived therefrom and Lilly on-hand inventory levels, within the Shared Territory on a
country-by-country basis. 
  
 B. Detailing Report.
Beginning with the Calendar Quarter ended March 31, 2004, within twenty (20) business days after the end of each Calendar Quarter, Lilly and ICOS will deliver to each other and the Company a report indicating. (i) the number of actual sales
representatives for each distinct sales force, (ii) the Detail Priority for each distinct sales force, and (iii) the Details reported by each distinct sales force (including any Details completed by third-party sales forces). 
  
 C. Product Samples Distributed. Beginning with the Calendar Quarter
ended March 31, 2004, within twenty (20) business days after the end of each Calendar Quarter, Lilly and ICOS will deliver to each other and the Company a report indicating the number of Product samples distributed within the Shared Territory on a
country-by-country basis. 
  
 D. Marketing Report. Within
twenty (20) business days of the end of each Calendar Quarter, the Company will deliver to Lilly and ICOS a report regarding marketing activities and associated Expenses. 
  
 E. Audits. Each Party’s audit rights will be provided under, pursuant to and in accordance with the terms of
Section 15.1(d) of the LLC Agreement, which terms are hereby incorporated into this Agreement by this reference. 
  
 F. Adjustments. In the event that any examination or audit of the records as described above discloses an under-payment or over-payment of amounts
due hereunder, written notice of such fact, specifying the amount and basis of the under-payment or over-payment, will promptly be furnished to all Parties by the person who performs the examination or audit. Within thirty (30) days after receipt of
such a notice, the Party owing any payment hereunder will promptly make payment to the Party entitled thereto. 
  

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 G. Report Content. The Company will determine the requirements for the content of the reports
described in Sections 8.2(A) - (D) within the then existing capabilities of the Lilly and ICOS information technology systems. 
  
 ARTICLE IX 
 REPRESENTATIONS OF THE
COMPANY 
  
 The Company represents and warrants to each of
Lilly and ICOS as follows: 
  
 9.1 Authorization. The Company has full
power and authority to execute and deliver this Agreement and to consummate the transactions contemplated herein. This Agreement and the provisions hereof constitute the valid and legally binding obligations of the Company and do not require the
consent, approval or authorization of any person, public or governmental authority or other entity. 
  
 9.2 No Conflicts with Other Instruments. The execution and delivery of this Agreement by the Company, and the performance of its obligations hereunder, are not in violation or breach of, and will not conflict
with or constitute a default under, the LLC Agreement or any material agreement, contract, commitment or obligation to which the Company is a Party or by which it is bound, and will not conflict with or violate any applicable law, rule, regulation,
judgment, order or decree of any governmental agency or court having jurisdiction over the Company or its assets or properties. 
  
 ARTICLE X 
 REPRESENTATIONS BY LILLY
AND ICOS 
  
 Lilly and ICOS each individually, and not
jointly, represents and warrants to the Company as follows: 
  
 10.1
Authorization. Lilly and ICOS each has full power and authority to execute and deliver this Agreement and to consummate the transactions contemplated herein. This Agreement and the provisions hereof constitute the valid and legally binding
obligations of each of Lilly and ICOS and do not require the consent, approval or authorization of any person, public or governmental authority or other entity. 
  

10.2 No Conflicts with Other Instruments. The execution and delivery of this Agreement by each of Lilly and ICOS, and the performance of their respective
obligations hereunder, are not in violation or breach of, and will not conflict with or constitute a default under, the Articles of Incorporation or Bylaws of either Lilly or ICOS, or any material agreement, contract, commitment or obligation to
which either Lilly or ICOS is a Party or by which it is bound, and will not conflict with or violate any applicable law, rule, regulation, judgment, order or decree of any governmental agency or court having jurisdiction over either Lilly or ICOS or
their respective assets or properties. 
  

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 ARTICLE XI 
 OTHER COVENANTS 
  
 11.1 Compliance with
Laws. The Company, Lilly and ICOS each agrees to perform its obligations under this Agreement in compliance with all applicable laws, rules and regulations. Lilly and ICOS will each maintain during the term of this Agreement a compliance program
designed to prevent and detect violations of applicable laws relating to sales and marketing activities; the program maintained by each Party in the United States will be designed in a manner consistent with the Compliance Program Guidance for
Pharmaceutical Manufacturers (the “Guidance”) issued in April, 2003 by the HHS Office of Inspector General, and will address, at a minimum, the legal risk areas discussed in the Guidance (to the extent such Party is responsible for the
relevant activities described in the Guidance). In the event any Party receives notice of an inspection or notification by a governmental entity, including the FDA, relating to the promotion of the Product, Promotional Materials or compliance with
PDMA, the Party receiving such inspection or notification will notify the other Parties as soon as possible but in no event later than twenty-four (24) hours after receipt of such notice or notification, and provide to such other Parties, within
seventy-two (72) hours, copies of all documents, including the FDA Forms 482, 483, Warning Letters and other correspondence and notifications, as such other Parties may request. The Company, Lilly and ICOS agree to cooperate with each other during
any inspection, investigation or other inquiry by the FDA or any other governmental entity, including providing information and/or documentation, as requested by the FDA or other governmental entity, or any of the Parties to this Agreement. The
Company, Lilly and ICOS also agree to discuss any response to observations or notifications received and to give the other Parties an opportunity to comment on any proposed response before it is made. In the event of disagreement concerning the form
or content of such response, however, the Company will be responsible for deciding the appropriate form and content of any response with respect to the Product (“Regulatory Response”). Each Party agrees to conform its respective
activities, with respect to the Product, only to any commitments made by such Party in a Regulatory Response. 
  
 11.2 Adverse Event Reporting. Prior to the commercial launch of the Product in any country, the Company will have developed written procedures for the assessment and reporting of Adverse Events and Serious
Adverse Events for such country, which procedures will be reasonably acceptable in form and substance to Lilly and ICOS. Lilly and ICOS agree to abide by such procedures. Unless otherwise agreed to by the Parties, the Company intends to enter into
an agreement with [*] to utilize [*] adverse event reporting system where [*] would be compensated for such services at its cost. For purposes of this Agreement (a) an “Adverse Event” means any untoward happening in a
patient or clinical investigation subject after the onset of administration of Product without regard to a causal relationship between such Product and the event, whether or not such event is considered drug related and (b) a “Serious Adverse
Event” means any Adverse Event with the following conditions: death, life-threatening, hospitalization or prolonged hospitalization, permanent disability, congenital abnormality, cancer or other condition deemed serious. 
  
  
 11.3 Product
Quality Complaints and Medical and Technical Inquiries. Prior to the commercial launch of the Product in any country, the Company will have developed written procedures for handling and responding to Product quality complaints and the medical
and technical inquiries of customers, physicians, pharmacists and other healthcare professionals with 
  
 *Confidential Treatment Requested. 
  

 19 

 respect to the Product in such country. Lilly and ICOS agree to abide by such procedures. Unless otherwise agreed to by
the Parties, the Company intends to enter into an agreement with [*] to utilize [*] product quality complaints and medical and technical inquiry system where [*] would be compensated for such services at its cost. 
  
 11.4 Intellectual Property Rights. This Agreement is not intended to transfer
or assign any rights, title or interest in or to the intellectual property of any other Party, including patents, trademarks, copyrights and know-how. Copyright interests in Promotional Materials related to Product will be owned by the Company.
Lilly and ICOS may use such copyrighted materials anytime after the Effective Date. 
  
 11.5 Product Recalls. In the event that any governmental entity issues a request, directive or order, or the Company determines in its sole discretion that Product be recalled, Lilly and ICOS will fully cooperate with the Company in
conducting any such recall and will take all appropriate corrective actions. 
  
 11.6 Access to Call Reporting Systems and Sales Representatives. Lilly and ICOS each agrees to provide the other Party, as well as the Company, access restricted to Product, upon reasonable notice and during normal business hours, to
its internal call reporting system for auditing purposes in accordance with Section 15.1(d) of the LLC Agreement. In addition, ICOS agrees to allow Lilly’s sales managers to travel with ICOS’ sales representatives at a reasonable frequency
so that the Lilly sales managers can directly monitor the content, consistency and delivery of the ICOS sales representative’s Details on the Product. Lilly also agrees to provide ICOS with the same monitoring rights set forth in the preceding
sentence. 
  
 11.7 Product Samples. The Parties anticipate that Product
samples, if any, will be provided directly to Lilly and ICOS by the manufacturer thereof and that any such samples will be provided on the same cost basis as the Company pays for Product. Product samples, if any, at the time of shipment to Lilly
and/or ICOS: (A) will comply in all material respects with applicable NDA specifications and internal Company guidelines for acceptance, (B) will conform to the information indicated on the certificates of analysis for such Product samples, (C) will
comply in all material respects with the requirements of the FDCA, (D) will not be products that have been adulterated or misbranded within the meaning of the FDCA and regulations issued thereunder, or any state or local law substantially similar to
the FDCA, and (E) will not be products that may not be introduced into interstate commerce pursuant to federal or state law. In addition, Product samples will have been manufactured, packaged, stored and shipped in conformity with all applicable
cGMPs. 
  
 11.8 Manufacture and Support for the Product. 
  
 A. Adequate Supply. The Company will use commercially
reasonable efforts to ensure that an adequate supply of the Product is manufactured to meet the expected demand for the Product in the Shared Territory. The Company will notify Lilly and ICOS immediately upon the Company’s discovery of any
events or conditions that the Company expects have the potential to have an impact on the Company’s ability to have an adequate supply of Product. The Parties will meet within thirty (30) days after such notice to assess the potential impact of
such event or condition on Lilly’s and ICOS’ ability to fulfill their respective obligations under this Agreement. 
  
 *Confidential Treatment Requested. 
  

 20 

 B. NDAs. With respect to each country in the Shared Territory, the Company will use
commercially reasonable efforts to maintain and support the NDA for the Product. The Company may supplement the NDA, add or delete package or dosage formats of the Product or change the Package Insert as it deems reasonably appropriate consistent
with the Company’s normal business practice (so long as any such supplement, addition, deletion or change is in compliance with all applicable laws, rules and regulations). Lilly and ICOS each acknowledge and accept that FDA approval may be
required for some or all of such matters, and Lilly and ICOS each agree to cooperate with the Company in this regard and to not use any affected materials until the Company has notified Lilly and ICOS each in writing that the Company has received
FDA approval or that it is otherwise permissible to use any such affected materials. The Company will notify Lilly and ICOS of any proposed amendment to the Package Insert or other changes that might impact Lilly’s and ICOS’ obligations
under this Agreement, and will provide Lilly and ICOS with at least fifteen (15) days to comment, before implementation of such amendment or change unless Lilly and ICOS each agrees in writing to some lesser amount of time in which to comment. In
the event of disagreement between the Parties concerning the form or content of such amendment, the Company will have the sole right and responsibility to decide upon the appropriate form and content of such amendment or change; provided, however,
if the Company is unable to make such decision, then it shall be resolved through the dispute resolution procedures set forth in Article 12 of the LLC Agreement. 
  
 11.9 Compliance Audit Request. Each Party will provide the other (and the Company will cause any third Party under contract with it
to provide) with the right to conduct reasonable compliance and quality assurance audits with respect to all distribution operations and activities, sampling activities, and marketing and promotional activities conducted under or in connection with
this Agreement to verify their conformance with applicable legal and regulatory requirements. Such audits will only be conducted upon reasonable notice during reasonable business hours. 
  
 ARTICLE XII 
 TERM, EXTENSION, AND 
 TERMINATION OF AGREEMENT 
  
 12.1 Term. This Agreement will become effective on the Effective Date and will continue in effect unless the Company is dissolved or
it is terminated earlier as described hereunder or by mutual written agreement of the Parties. 
  
 12.2 Termination for Material Breach. In the event that either Lilly or ICOS is in material breach of this Agreement the Company will have the right to terminate this Agreement after ninety (90) days written
notice to Lilly or ICOS (collectively or individually, as the case may be, the “Breaching Party”) unless the Breaching Party cures the breach before the expiration of such period of time. Such notice will set forth in reasonable detail the
specifics of the breach. Similarly, in the event that the Company is in material breach of this Agreement, the Party whom the breach has been committed against (either Lilly and/or ICOS) will have the right to terminate this Agreement after ninety
(90) days written notice to the Company (with a copy to the other Party to this Agreement) unless the Company cures the breach before the expiration of such period of time. Such notice will set forth in reasonable detail the specifics of the breach.

  

 21 

 12.3 Voluntary Termination by the Company. The Company may terminate this Agreement for any reason at any time
during the term of this Agreement and such termination will be effective after thirty (30) days written notice to each Party. During such thirty (30) days, each Party will appropriately commence wind-down efforts, including reasonable termination of
its efforts under this Agreement and the Company will remain responsible for expenses incurred in accordance with this Agreement for such period, but only to the extent that such costs are unavoidable expenses and expenditures. 
  
 12.4 Termination Upon Insolvency. This Agreement may be terminated by a Party hereto
upon notice to the other Parties should a Party (a) become insolvent, or (b) file a petition under any bankruptcy or insolvency law or have any such petition filed against it which has not been stayed within 60 days of such filing. 
  
 12.5 LLC Membership Change. Lilly and ICOS will each have the right, but not the
obligation, to terminate this Agreement if the other Party ceases to be a Member (as defined in Section 1.1 of the LLC Agreement) of the Company. Termination under this Section 12.5 will be effective upon thirty (30) days written notice from the
Party that desires to exercise such termination right to the other Parties. 
  
 12.6 Effect of Termination. Termination of this Agreement will not operate to release any Party from any obligation or liability incurred under the terms of this Agreement prior to or upon termination hereof. Any provision of this
Agreement which by its context is intended to apply after termination of this Agreement will survive its termination, including the provisions of Article VI (Regulatory Matters), Article VII (Reimbursement of Costs and Expenses), Article XIII
(Indemnification), and Article XIV (Confidentiality). 
  
 ARTICLE XIII 
 INDEMNIFICATION 
  

13.1 Indemnification by the Company. The Company shall indemnify, defend and hold ICOS harmless from and against any losses, including product liability, which
arise from any claim, lawsuit or other action by a third party arising out of the manufacture of the Product, the breach by the Company of its warranties or obligations under this Agreement, or the negligence or willful misconduct of the Company,
its employees or its agents, except to the extent such losses result from (i) the breach by Lilly and/or ICOS of their respective warranties or obligations hereunder or (ii) the negligence or willful misconduct of Lilly and/or ICOS, their respective
employees or their respective agents. The Company shall indemnify, defend and hold Lilly harmless in the same manner and under the same conditions, except to the extent Lilly is obligated to indemnify, defend and hold harmless the Company and its
Affiliates pursuant to the Manufacturing Agreement between Lilly and the Company. 
  
 13.2 Indemnification By Lilly. Lilly shall indemnify, defend and hold the Company and ICOS harmless from and against any losses which arise from any claim, lawsuit or other action by a third party arising out of the breach by Lilly
of its warranties or obligations under this Agreement, or the negligence or willful misconduct of Lilly, its employees or its agents, except to the extent such losses result from (i) the breach by the Company and/or ICOS of their respective
warranties or obligations hereunder or (ii) the negligence or willful misconduct of the Company and/or ICOS, their respective employees or their respective agents. 
  

 22 

 13.3 Indemnification by ICOS. ICOS shall indemnify, defend and hold the Company and Lilly harmless from and
against any losses which arise from any claim, lawsuit or other action by a third party arising out of the breach by ICOS of its warranties or obligations under this Agreement, or the negligence or willful misconduct of ICOS, its employees or its
agents, except to the extent such losses result from (i) the breach by the Company and/or Lilly of their respective warranties or obligations hereunder or (ii) the negligence or willful misconduct of the Company and/or Lilly, their respective
employees or their respective agents. 
  
 13.4 Indemnification Procedures.
A Party seeking indemnification hereunder (the “Indemnified Party”) will give written notice to the indemnifying Party (the “Indemnifying Party”) of its indemnification claims hereunder, specifying the amount and nature of the
claim, and giving the Indemnifying Party the right to contest any such claim represented by counsel of its choice. If any such claim is made hereunder by the Indemnified Party and such claim arises from the claims of a third party against the
Indemnified Party and the Indemnifying Party does not elect to undertake the defense thereof by written notice within fifteen (15) days after receipt of the original notice from the Indemnified Party, the Indemnified Party will be entitled to
indemnity pursuant to the terms of this Agreement to the extent of its payment in respect of such claim. To the extent that the Indemnifying Party undertakes the defense of such claim in good faith by proceeding diligently at its expense, and
without materially impairing the financial conditions or operations of the Indemnified Party, the Indemnified Party will be entitled to indemnity hereunder only if, and to the extent that, such defense is unsuccessful as determined by a final
judgment of a court of competent jurisdiction or is settled with the consent of the Indemnifying Party. The Party defending a third-party claim will have the right to choose its own counsel. 
  
 ARTICLE XIV 
 CONFIDENTIALITY 
  
 Except as otherwise expressly provided in this Agreement, each Party will be subject to the confidentiality provisions provided under, pursuant to and in accordance with Section 2.7 of the LLC Agreement, which terms
are by this reference incorporated in and made a part of this Agreement. 
  

 23 

 ARTICLE XV 
 MISCELLANEOUS 
  
 15.1 Subcontracting
Permitted. Each Party acknowledges and agrees that portions of the work to be performed hereunder by the Company may be performed on its behalf by third Parties hired by the Company. If either Lilly or ICOS (as applicable, the
“Subcontracting Party”) determines that proper execution of its obligations hereunder requires the retention, or either Party desires the retention, of one or more subcontractors, the Subcontracting Party will, prior to engaging a third
party to perform services hereunder, obtain a written confidentiality agreement with the subcontractor(s) containing terms no less restrictive than those contained herein. In addition, the Subcontracting Party will be fully responsible to the
Company and the other Party for any portion of the services performed by the subcontractor to the same extent as if such portion of the services was performed directly by the Subcontracting Party. 
  
 15.2 Third Party Sales Force. Subject to compliance with Section 5.2 and 15.1, Lilly
and ICOS will each have the right to subcontract with third Parties to assist in performing the Details required of each such Party hereunder provided that: (a) no such third party is itself, nor is it controlled by, a pharmaceutical, biotechnology
or other similar company that is marketing or selling any compound for any of the approved indications claimed by the Product and (b) the Subcontracting Party uses its best efforts to ensure that the sales and marketing efforts of the third Parties
are integrated and coordinated fully with the sales and marketing strategies of the other Party. 
  
 15.3 Additional Joint Ventures or Other Structures. The Parties agree to review the need to create additional joint ventures or other business structures, in each case applying the global principles set forth
herein to the greatest extent possible, if doing so would maximize the commercial potential of the Product to the Company in different countries and/or regions throughout the Shared Territory. 
  
 15.4 Force Majeure. No Party will be in breach of or liable to any other Party for
loss or damages for any default or delay attributable to any Force Majeure event if the Party affected gives prompt notice of any such cause to the other Parties. The Party giving such notice of Force Majeure will take reasonable and diligent
actions to cure such cause. In addition, the Parties will meet promptly to determine an equitable solution to the effects of any such event. In the event the Party affected by the Force Majeure event cannot resume its compliance with this Agreement
within ninety (90) days of the event, then the other Party may terminate this Agreement. For purposes of this Agreement, “Force Majeure” will mean, without limitation, acts of God, war, fire, flood, earthquake, strike, labor dispute and
the like, provided that such events were not within the reasonable control of the Party affected. 
  
 15.5 Non-Solicitation. From the Effective Date until the termination of activities contemplated by this Agreement and for a period of [*] thereafter, each Party agrees that it will not directly recruit,
solicit or induce any employee, consultant or agent of another Party to terminate his or her relationship with such other Party, except as otherwise provided in Section 4.2(A). However, nothing set forth in this section will prohibit a Party from
indirectly recruiting, soliciting or inducing such individual to leave the other Party through use of advertisements in trade journals and the like or from discussing employment opportunities with such individuals to the extent such individuals
contact such Party first. 
  
 *Confidential Treatment Requested.

  

 24 

 15.6 Use of Trademarks. Use of one Party’s trademark by another Party will be pursuant to a Trademark License
Agreement in form and substance to be agreed upon by the Parties. 
  
 15.7
Limitation of Liability. EXCEPT AS MAY ELSEWHERE HEREIN SPECIFICALLY BE PROVIDED FOR OTHERWISE, IN NO EVENT WILL ANY PARTY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING COSTS OF PROCUREMENT OF
SUBSTITUTE PRODUCTS OR SERVICES, OR FOR ANY LOST PROFITS OF ANY OTHER PARTY, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, ARISING OUT OF THIS AGREEMENT. THESE LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY. 
  
 15.8 Successors and Assigns. Except as otherwise provided
herein, neither this Agreement nor any interest hereunder shall be assignable by either Party without the prior written consent of the other. This Agreement shall be binding upon the successors and permitted assignees of the Parties and the name of
a Party appearing herein shall be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement. Any assignment not in accordance with this Section shall be void.

  
 15.9 Incorporation by Reference. Each Party agrees to the incorporation
of the following provisions, which terms are by this reference incorporated in and made a part of this Agreement (references are to the Section set forth in the LLC Agreement): (a) Dispute Resolution — Article 12, (b) Notices — Section
16.1, (c) Waiver — Section 16.2, (d) Severability — Section 16.3, (e) Further Assurances — Section 16.5, (f) Governing Law — Section 16.6, (g) Counterparts — Section 16.7, (h) Limitation on Rights of Others — Section
16.8, (i) Entire Agreement; Amendment — Section 16.10, (j) Expenses — Section 16.11, (k) Construction — Section 16.12, (l) Disclaimer of Agency — Section 16.13, (m) Rights and Remedies — Section 16.14, and (n)
Attorneys’ Fees — Section 16.15. 
  
 15.10 Applicability. This
Agreement applies only to the activities of the Parties in the Shared Territory. 
  
 15.11 Transition to Amended and Restated Agreement. This Amended and Restated Marketing and Sales Service Agreement has been executed on the dates marked below with retroactive effect to January 1, 2003; provided, however, that
neither Party shall be deemed in breach of this Agreement for failure to timely give or make any notice, report, or accounting prior to the date of execution of this Amended and Restated Marketing and Sales Service Agreement. 
  

 25 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives in the
manner legally binding as of the date first above written. 
  

							
	LILLY ICOS LLC	 	ELI LILLY AND COMPANY
				
	By:	 	 /s/ Paul Clark

	 	By:	 	 /s/ John C. Lecheiter

	Name:	 	 Paul Clark

	 	Name:	 	 John C. Lecheiter

	Title:	 	 Chairman

	 	Title:	 	 Exec. VP, Pharmaceutical Operations

	Date:	 	 December 17, 2004

	 	Date:	 	 December 16, 2004

	 	 	 	 	On behalf of Eli Lilly and Company, Member
			
	ICOS CORPORATION	 	 	 	 
				
	By:	 	 /s/ Paul Clark

	 	 	 	 
	Name:	 	 Paul Clark

	 	 	 	 
	Title:	 	 President and CEO

	 	 	 	 
	Date:	 	 December 17, 2004

	 	 	 	 
	On behalf of ICOS Corporation, Member	 	 	 	 

  

 26 

 Exhibit A 
 Cost Per Sales Representative 
  

	I.	ICOS Cost Per Sales Representative 

  

			
	 Country

	  	Initial Year
ICOS Cost per Sales
Representative

	 United States
	  	[*]

  

	II.	Lilly Cost Per Sales Representative 

  

					
	 Country

	  	Currency

	  	 2003
 Cost per Sales
Representatives

	 United States
	  	USD	  	[*]
	 France
	  	EUR	  	[*]
	 Germany
	  	EUR	  	[*]
	 Italy
	  	EUR	  	[*]
	 Spain
	  	EUR	  	[*]
	 United Kingdom
	  	GBP	  	[*]
	 Austria
	  	EUR	  	[*]
	 Belgium
	  	EUR	  	[*]
	 Denmark/Iceland
	  	DKK	  	[*]
	 Finland
	  	EUR	  	[*]
	 Greece
	  	EUR	  	[*]
	 Netherlands
	  	EUR	  	[*]
	 Norway
	  	NOK	  	[*]
	 Portugal
	  	EUR	  	[*]
	 Sweden
	  	SEK	  	[*]
	 Switzerland
	  	CHF	  	[*]
	 Canada
	  	CAD	  	[*]
	 Mexico
	  	MXN	  	[*]

  
 *Confidential
Treatment Requested.

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