Document:

Sale and Purchase Agreement

 Exhibit 10.85 
 Note: Redacted portions have been marked with [*]. The redacted portions are subject to a request for confidential treatment that has been filed with the Securities and Exchange Commission. 
  
  
 SALE AND PURCHASE AGREEMENT 
 by and between 
 AMGEN INC. 
 and 
 TAKEDA PHARMACEUTICAL COMPANY LIMITED 
 Dated as of February 1, 2008 
  
  

 TABLE OF CONTENTS 
 ARTICLE I 
 DEFINITIONS AND TERMS 

					
			
	Section 1.1	  	Certain Definitions	  	1
	Section 1.2	  	Other Terms	  	8

 ARTICLE II 
 SALE AND PURCHASE OF THE COMPANY 

					
			
	Section 2.1	  	Sale and Purchase	  	8
	Section 2.2	  	Excluded Assets	  	8
	Section 2.3	  	Purchase Price	  	8
	Section 2.4	  	Closing	  	8
	Section 2.5	  	Deliveries by Buyer	  	8
	Section 2.6	  	Deliveries by Seller	  	9
	Section 2.7	  	NAV Adjustment	  	9

 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SELLER 

					
			
	Section 3.1	  	Organization	  	11
	Section 3.2	  	Corporate Authorization	  	11
	Section 3.3	  	Consents and Approvals	  	11
	Section 3.4	  	Non-Contravention	  	11
	Section 3.5	  	Binding Effect	  	12
	Section 3.6	  	Company	  	12
	Section 3.7	  	Historical Financial Statements	  	12
	Section 3.8	  	Litigation and Claims	  	13
	Section 3.9	  	Taxes	  	13
	Section 3.10	  	Benefit Plans	  	13
	Section 3.11	  	Compliance with Laws	  	14
	Section 3.12	  	Labor	  	14
	Section 3.13	  	Contracts	  	14
	Section 3.14	  	Absence of Changes	  	15
	Section 3.15	  	Real and Personal Property	  	15
	Section 3.16	  	Absence of Liabilities	  	15
	Section 3.17	  	Insurance	  	16
	Section 3.18	  	Finders’ Fees	  	16
	Section 3.19	  	No Other Representations or Warranties	  	16

  

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 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF BUYER 

					
			
	Section 4.1	  	Organization	  	16
	Section 4.2	  	Corporate Authorization	  	16
	Section 4.3	  	Consents and Approvals	  	16
	Section 4.4	  	Non-Contravention	  	17
	Section 4.5	  	Binding Effect	  	17
	Section 4.6	  	Finders’ Fees	  	17
	Section 4.7	  	Litigation and Claims	  	17
	Section 4.8	  	Financial Capability	  	17
	Section 4.9	  	No Other Representations or Warranties	  	17

 ARTICLE V 
 COVENANTS 

					
			
	Section 5.1	  	Access and Information	  	18
	Section 5.2	  	Conduct of Business	  	18
	Section 5.3	  	Commercially Reasonable Efforts	  	19
	Section 5.4	  	JFTC Post-Closing Notification	  	19
	Section 5.5	  	Tax Matters	  	20
	Section 5.6	  	Employee Matters	  	22
	Section 5.7	  	Intercompany Contracts and Accounts	  	22
	Section 5.8	  	Further Assurances	  	23
	Section 5.9	  	Confidentiality	  	25
	Section 5.10	  	Public Disclosure	  	27
	Section 5.11	  	Name Change	  	27
	Section 5.12	  	Payment of Certain Liabilities	  	27

 ARTICLE VI 
 CONDITIONS TO CLOSING 

					
			
	Section 6.1	  	Conditions to the Obligations of Buyer and Seller	  	28
	Section 6.2	  	Conditions to the Obligations of Buyer	  	28
	Section 6.3	  	Conditions to the Obligations of Seller	  	28

 ARTICLE VII 
 SURVIVAL; INDEMNIFICATION; REMEDIES 

					
			
	Section 7.1	  	Survival	  	29
	Section 7.2	  	Indemnification by Seller	  	29
	Section 7.3	  	Indemnification by Buyer	  	30

  

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	Section 7.4	  	Indemnification Procedures.	  	30
	Section 7.5	  	Direct Claims	  	31
	Section 7.6	  	Consequential Damages	  	32
	Section 7.7	  	Adjustments to Losses	  	32
	Section 7.8	  	Payments	  	33
	Section 7.9	  	Characterization of Indemnification Payments	  	33
	Section 7.10	  	Mitigation	  	33
	Section 7.11	  	Exclusive Remedies	  	33
	Section 7.12	  	No Set-Off	  	33

 ARTICLE VIII 
 TERMINATION 

					
			
	Section 8.1	  	Termination	  	33
	Section 8.2	  	Effect of Termination	  	33

 ARTICLE IX 
 MISCELLANEOUS 

					
			
	Section 9.1	  	Notices	  	34
	Section 9.2	  	Waivers and Modifications	  	35
	Section 9.3	  	Assignment	  	36
	Section 9.4	  	Third-Party Beneficiaries	  	36
	Section 9.5	  	Entire Agreement	  	36
	Section 9.6	  	Affiliates	  	36
	Section 9.7	  	Expenses	  	36
	Section 9.8	  	Choice of Law	  	36
	Section 9.9	  	Jurisdiction and Venue	  	36
	Section 9.10	  	Waiver of Jury Trial	  	37
	Section 9.11	  	Counterparts	  	37
	Section 9.12	  	Construction	  	37
	Section 9.13	  	Headings	  	38
	Section 9.14	  	Schedules	  	38
	Section 9.15	  	Severability	  	38

 EXHIBITS AND SCHEDULES 
  

					
	EXHIBITS	  		  	
			
	Exhibit 1.1	  	—  	  	[*]
	Exhibit 5.10	  	—  	  	Form of Press Release

  

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 SELLER DISCLOSURE SCHEDULE 
  

					
	Schedule 1.1(a)	  	—  	  	[*]
	Schedule 1.1(b)	  	—  	  	[*]
	Schedule 3.3(a)	  	—  	  	[*]
	Schedule 3.3(b)	  	—  	  	[*]
	Schedule 3.7	  	—  	  	[*]
	Schedule 3.8	  	—  	  	[*]
	Schedule 3.9	  	—  	  	[*]
	Schedule 3.10(a)	  	—  	  	[*]
	Schedule 3.10(b)	  	—  	  	[*]
	Schedule 3.10(c)	  	—  	  	[*]
	Schedule 3.11	  	—  	  	[*]
	Schedule 3.12	  	—  	  	[*]
	Schedule 3.13(a)	  	—  	  	[*]
	Schedule 3.13(c)	  	—  	  	[*]
	Schedule 3.14	  	—  	  	[*]
	Schedule 3.15	  	—  	  	[*]
	Schedule 3.16	  	—  	  	[*]
	Schedule 3.17	  	—  	  	[*]
	Schedule 5.2	  	—  	  	[*]
	Schedule 5.8(d)	  	—  	  	[*]

  

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 This Sale and Purchase Agreement (including its Exhibits and Schedules, this
“Agreement”) is entered into as of February 1, 2008 by and between Amgen Inc., a Delaware corporation (“Seller”), and Takeda Pharmaceutical Company Limited, a Japanese corporation (“Buyer”).
Seller and Buyer are sometimes referred to herein individually as a “Party” and collectively as the “Parties”. 
 R E C I T A L S: 
 WHEREAS, Seller owns all of the issued and outstanding shares of capital stock of Amgen Kabushiki
Kaisha, a Japanese corporation (the “Company”); 
 WHEREAS, Seller, through the Company, is engaged in Japan in the
business of developing and conducting clinical trials and other studies with respect to certain of Seller’s products in support of their approval for commercial sale in Japan (the “Business”); 
 WHEREAS, Seller desires to sell and transfer to Buyer and Buyer desires to purchase and assume from Seller the Transferred Shares, as more
particularly set forth herein; 
 WHEREAS, in connection with the foregoing, Seller and Buyer are entering into the License Agreements
and the Supply Agreement concurrently with this Agreement; and 
 WHEREAS, the respective boards of directors (or similar bodies) of
each of Seller and Buyer have approved the execution and delivery of, and performance under, this Agreement and each of the Ancillary Agreements by such Party, in each case upon the terms and subject to the conditions set forth in this Agreement or
the relevant Ancillary Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties,
covenants and undertakings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 
 ARTICLE I 
 DEFINITIONS AND TERMS

 Section 1.1 Certain Definitions. As used in this Agreement, the following terms have the meanings set forth below:

 “Affiliate” means, with respect to Seller or Buyer, any Person which directly or indirectly controls, is controlled by or
is under common control with Seller or Buyer, as the case may be, for so long as such control exists. For the purposes of this definition, “control” means (a) in the case of any corporate entity, direct or indirect ownership of
more than 50% of the stock having the right to vote for the election of directors thereof, or (b) in the case of any non-corporate entity, direct or indirect ownership of more than 50% of the equity or income interest therein. 
 “Aggregate Loss Limit” means [*]% of the Purchase Price. 

 “Agreement” has the meaning set forth in the Preamble. 
 “Ancillary Agreements” means collectively the License Agreements and the Supply Agreement. 
 “Base Net Asset Value” means [*], which represents (a) the total assets shown on the Pro Forma Balance Sheet, minus (b) the
total liabilities shown on the Pro Forma Balance Sheet. 
 “Benefit Plan” has the meaning set forth in Section 3.10(a).

 “Books and Records” means all books, ledgers, files, reports, plans, records, manuals, laboratory notebooks,
presentations, computer files, emails and other materials (in physical or electronic form or any other form or medium) of, or maintained by, the Company, but excluding any such items to the extent (a) any applicable Law prohibits their
transfer, (b) any transfer thereof otherwise would subject Seller or the Company to any material liability, or (c) they are required for, related to, or used in connection with, any of the Excluded Assets or Excluded Liabilities.

 “Business” has the meaning set forth in the Recitals. 
 “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in Tokyo, Japan or New York, New York are
authorized or obligated by applicable Law or executive order to close. 
 “Buyer” has the meaning set forth in the Preamble.

 “Buyer Indemnified Parties” has the meaning set forth in Section 7.2(a). 
 “Chosen Courts” has the meaning set forth in Section 9.9. 
 “Claim Notice” has the meaning set forth in Section 7.4(a). 
 “Closing” means the closing of the sale and purchase of the Transferred Shares that is the subject of this Agreement. 
 “Closing Date” has the meaning set forth in Section 2.4. 
 “Closing Date Balance Sheet” means the unaudited balance sheet of the Company, which shall set forth the Closing Date Total Assets and
Closing Date Total Liabilities of the Company as of the Closing, prepared, or caused to be prepared, by Buyer in accordance with Section 2.7 hereof and, in the event of a Seller’s Objection, as adjusted by either the agreement of Buyer and
Seller, or by the CPA Firm, acting pursuant to Section 2.7. 
 “Closing Date Exchange Rate” means the average of the
rates of exchange for the conversion of Japanese Yen into U.S. Dollars (or vice versa), quoted under Foreign Exchange in the Wall Street Journal Eastern Edition, for [*] ending on and including [*] immediately prior to [*]. 
  

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 “Closing Date Net Asset Value” means an amount in Japanese Yen, which represents
(a) the Closing Date Total Assets shown on the Closing Date Balance Sheet, minus (b) the Closing Date Total Liabilities shown on the Closing Date Balance Sheet. 
 “Closing Date Total Assets” means the total assets of the Company on the Closing Date, as determined by applying consistent principles, practices, methodologies and policies as those set forth in the
Pro Forma Balance Sheet. 
 “Closing Date Total Liabilities” means the total liabilities of the Company on the Closing Date,
as determined by applying consistent principles, practices, methodologies and policies as those set forth in the Pro Forma Balance Sheet. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Common Stock” has the meaning set
forth in Section 3.6(b). 
 “Company” has the meaning set forth in the Recitals. 
 “Competition Laws” means the Japanese Act concerning Prohibition of Private Monopoly and Maintenance of Fair Trade, the U.S.
Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, and all other applicable Laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade. 

“Confidentiality Agreement” means the confidentiality agreement between Seller and Buyer, effective as of [*], as amended.

 “Contracts” means all material agreements, contracts, leases and subleases, purchase orders, arrangements, commitments
and licenses (other than this Agreement, the Ancillary Agreements and the Intercompany Contracts) to which the Company is a party, whether written or oral, except to the extent included in Excluded Assets. 
 “CPA Firm” means [*] or an alternative accounting firm as to which Seller and Buyer shall mutually agree. 
 “Critical Employees” has the meaning set forth in Section 5.8(d)(i). 
 “Designated Facilities” has the meaning set forth in Section 5.8(d)(ii). 
 “Direct Claim” has the meaning set forth in Section 7.5. 
 “Documents of Title” means collectively (a) the share certificates (kabu-ken) representing the Transferred Shares,
(b) a copy of the board resolution of the Company approving the transfer of the Transferred Shares to Buyer as contemplated hereby, and (c) the written resignations of the directors of the Company effective as of [*]. 
 “Employees” means all current employees of the Company as of [*] or as of [*], as the case may be. 
  

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 “Encumbrance” means any lien, pledge, charge, claim, encumbrance, security interest,
option, mortgage, easement or similar restriction, including, in the case of the Transferred Shares, any right of first refusal or restriction on voting. 
 “Excluded Assets” means collectively the Intellectual Property and other assets listed on Schedule 1.1(a) of the Seller Disclosure Schedule. 
 “Excluded Liabilities” means all the liabilities of Seller or any of its Affiliates relating to, arising out of or resulting from the
Excluded Assets, whether incurred before, on or after [*] 
 “Facility Resources” has the meaning set forth in
Section 5.8(d)(ii). 
 “Final Determination” means when (a) the parties to the dispute have reached an agreement
in writing, (b) a court of competent jurisdiction shall have entered a final and non-appealable order or judgment, or (c) an arbitration or like panel shall have rendered a final and non-appealable determination with respect to disputes
the parties have agreed to submit thereto. 
 “Governmental Authorizations” means all licenses, permits, certificates and
other authorizations and approvals primarily required for, related to, or used in connection with, the Business and issued by or obtained from a Government Entity. 
 “Government Entity” means any Japanese, U.S. or other federal, national, state or local governmental, quasi-governmental, administrative, judicial, regulatory or self-regulatory authority, body,
agency, court, tribunal, commission or similar entity with competent jurisdiction. 
 “Hazardous Substance” means any
substance that is listed, defined, designated or classified as hazardous or toxic under, or otherwise regulated pursuant to, applicable Laws. 
 “Historical Financial Statements” has the meaning set forth in Section 3.7. 
 “Indemnified
Parties” has the meaning set forth in Section 7.2(a). 
 “Indemnifying Party” has the meaning set forth in
Section 7.4(a). 
 “Independent Accounting Firm” has the meaning set forth in Section 5.5(a)(ii). 
 “Individual Loss Limit” means [*]. 
 “Intellectual Property” means (a) trademarks, service marks, brand names, certification marks, collective marks, d/b/a’s, domain names, logos, symbols, trade dress, assumed names, fictitious names, trade names and
other indicia of origin, all applications and registrations for the foregoing, and all goodwill associated therewith and symbolized thereby, including all renewals of same (collectively, “Trademarks”), (b) inventions and
discoveries, whether patentable or not, and all patents, registrations, invention disclosures and applications therefor, including divisions, continuations, continuations-in-part and renewal applications, and including renewals, extensions and
reissues (collectively, “Patents”), (c) trade secrets, 

  

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confidential information and know-how, including processes, schematics, business methods, formulae, drawings, prototypes, models, designs, customer lists and
supplier lists (collectively, “Trade Secrets”), (d) published and unpublished works of authorship, whether copyrightable or not (including databases and other compilations of information), including mask rights and computer
software, copyrights therein and thereto, registrations and applications therefor, and all renewals, extensions, restorations and reversions thereof (collectively, “Copyrights”), and (e) any other intellectual property or
proprietary rights. 
 “Intercompany Contract” has the meaning set forth in Section 5.7. 
 “Japanese GAAP” means generally accepted accounting principles as applied in Japan. 
 “JFTC” has the meaning set forth in Section 5.4. 
 “Knowledge” or any similar phrase means the collective actual knowledge of [*] and [*], in the case of Seller, or of [*] and [*], in the case of Buyer. 
 “Laboratory Access” has the meaning set forth in Section 5.8(d)(ii). 
 “Law” means any common law principle, law, statute, ordinance, rule, regulation, code, order, writ, judgment, injunction or decree
enacted, issued, promulgated, enforced or entered by a Government Entity. 
 “Leased Real Property” means all real property
that is the subject of those leases and subleases governing real property leased by the Company, owned by persons other than the Company, and listed on Schedule 1.1(b) of the Seller Disclosure Schedule. 
 “LIBOR” means the [*] London Interbank Offered Rate with respect to deposits in U.S. Dollars which appears on the Reuters Screen LIBOR01
Page as of [*]., London time, on the day that is [*] days in London preceding [*]. 
 “License Agreements” means the License
Agreements entered into by and between Seller and Buyer concurrently with this Agreement, including one with respect to multiple products, including VectibixTM (panitumumab), and another with respect to AMG706. 
 “Losses” has the meaning set forth in Section 7.2(a). 
 “Material Adverse Effect” means an effect on the assets or properties of the Company that is materially adverse, on a long-term basis,
to the Transferred Business, taken as a whole; provided, however, that none of the following (or the results thereof) shall be a Material Adverse Effect: (a) any change in Law or accounting standards or interpretations thereof
applicable to the Transferred Business, (b) any change in economic, political or business conditions or industry-wide or financial market conditions generally, (c) any loss of employees of, or other adverse effect on, the Transferred
Business as a result of the execution, delivery and performance of this Agreement or the Ancillary Agreements or the announcement of the transactions contemplated hereby or thereby, or (d) any effect on the Excluded Assets or Excluded
Liabilities. 
  

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 “Material Contracts” has the meaning set forth in Section 3.13(a). 
 “NAV Threshold Amount” means the Japanese Yen equivalent of [*], calculated using the Closing Date Exchange Rate. 
 “Notice Period” has the meaning set forth in Section 7.4(a). 
 “Ordinary Course” means the conduct of the Business in accordance with the Company’s normal day-to-day customs, practices and
procedures. 
 “Party” and “Parties” have the meanings set forth in the Preamble. 
 “Permitted Encumbrances” means (a) Encumbrances reflected or reserved against or otherwise disclosed in the Historical Financial
Statements, (b) mechanics’, materialmen’s, warehousemen’s, carriers’, workers’ or repairmen’s liens or other similar common law or statutory Encumbrances arising or incurred in the Ordinary Course, (c) liens
for Taxes, assessments and other governmental charges not yet due and payable or due but not delinquent or being contested in good faith by appropriate proceedings, (d) with respect to real property, (i) easements, quasi-easements,
licenses, covenants, rights-of-way, rights of re-entry or other similar restrictions, including any other agreements, conditions or restrictions that would be shown by a current title registration or other similar registration, report or listing,
(ii) any conditions that may be shown by a current survey or physical inspection, and (iii) zoning, building, subdivision or other similar requirements or restrictions, (e) Encumbrances incurred in the Ordinary Course since the date
of the Historical Financial Statements, (f) Encumbrances created by or resulting from the actions of or ownership by Buyer, and (g) Encumbrances that would not, individually or in the aggregate, be reasonably likely to have a Material
Adverse Effect. 
 “Person” means an individual, a corporation, a kabushiki kaisha, a partnership, an association, a
limited liability company, a Government Entity, a trust or any other entity or organization. 
 “Post-Closing Notification”
has the meaning set forth in Section 5.4. 
 “Pro Forma Balance Sheet” means the pro forma balance sheet of the Company
as of [*], in the form mutually agreed upon by Buyer and Seller, a copy of which Pro-Forma Balance Sheet is attached to this Agreement as Exhibit 1.1. 
 “Purchase Price” has the meaning set forth in Section 2.3. 
 “Purchase Price
Adjustment Amount” has the meaning set forth in Section 2.7(e). 
 “Representatives” means, with respect to
any Person, such Person’s Affiliates and such Person’s and its Affiliates’ respective directors, officers, employees, consultants, advisors and legal counsels. 
 “[*] Employees” has the meaning set forth in Section 5.8(d)(i). 
  

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 “[*] Period” has the meaning set forth in Section 5.8(d)(i). 
 “Section 338 Forms” has the meaning set forth in Section 5.5(a)(i). 
 “Section 338(g) Election” has the meaning set forth in Section 5.5(a)(i). 
 “Seller” has the meaning set forth in the Preamble. 
 “Seller Confidential Information” has the meaning set forth in Section 5.9(a). 
 “Seller Disclosure Schedule” has the meaning set forth in Article III. 
 “Seller Indemnified
Parties” has the meaning set forth in Section 7.3. 
 “Seller Required Approvals” means all consents,
approvals, waivers, authorizations, notices, submissions and filings that are required to be listed and are listed on Schedules 3.3(a) and 3.3(b) of the Seller Disclosure Schedule. 
 “Seller’s Objection” has the meaning set forth in Section 2.7(b). 
 “Seller’s Plans” means the Amgen Inc. Amended and Restated 1991 Equity Incentive Plan, the Amgen Inc. Amended and Restated 1993
Equity Incentive Plan, the Amgen Inc. Amended and Restated 1997 Special Non-Offer Equity Incentive Plan, the Amgen Inc. Amended and Restated 1999 Equity Incentive Plan, the Amgen Inc. Global Management Incentive Plan and the Amgen Inc. Japan
Performance Incentive Plan, and related forms of stock option grant agreements and restricted stock unit agreements under each plan, as applicable, and any other equity or other incentive plan of Seller applicable to any current or former employee
of the Company. 
 “Service Providers” has the meaning set forth in Section 5.8(d)(i). 
 “Supply Agreement” means the Supply Agreement entered into by and between Seller and Buyer concurrently with this Agreement. 

“Support Services” has the meaning set forth in Section 5.8(d)(ii). 
 “Tax Proceedings” has the meaning set forth in Section 5.5(d)(i). 
 “Tax Returns” means all reports and returns required to be filed with respect to Taxes. 
 “Taxes” means all Japanese, U.S. or other federal, national, state or local and all foreign taxes, including income, real and personal
property, stamp, transfer, value-added, sales, use, excise, franchise, workers’ compensation, unemployment insurance, social security, withholding or similar taxes, together with any interest, additions or penalties with respect thereto and any
interest in respect of such additions or penalties. 
 “Third-Party Claim” has the meaning set forth in Section 7.4(a).

  

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 “Transferred Business” means the Business (excluding the Excluded Assets and the
Excluded Liabilities), taken collectively with all rights to be transferred by Seller to Buyer under the License Agreements. 
 “Transfer Taxes” has the meaning set forth in Section 5.5(f). 
 “Transferred Shares” has the
meaning set forth in Section 3.6(b). 
 Section 1.2 Other Terms. Where any term is defined in a particular clause of this
Agreement, that term shall have the meaning ascribed to it in that clause throughout this Agreement. 
 ARTICLE II 
 SALE AND PURCHASE OF THE COMPANY 
 Section 2.1 Sale and Purchase. On the terms and subject to the conditions set forth herein, at [*], Seller shall sell, convey, transfer, assign and deliver to Buyer, and Buyer shall purchase and assume from Seller, the
Transferred Shares. 
 Section 2.2 Excluded Assets. Prior to [*], Seller shall cause the Company to assign, transfer, convey and
deliver (including by way of corporate split) to Seller or its designee all right, title and interest in and to all of the Excluded Assets; it being understood that all the rights of the Company in and to the Intellectual
Property of Seller shall terminate as of [*], except to the extent expressly provided in the License Agreements. Seller or its designee shall assume and be responsible for all Excluded Liabilities. 
 Section 2.3 Purchase Price. On the terms and subject to the conditions set forth herein, in consideration of the sale of the Transferred
Shares, at [*], Buyer shall pay to Seller an amount in cash equal to the U.S. Dollar equivalent to the Base Net Asset Value, calculated using the Closing Date Exchange Rate (the “Purchase Price”), subject to adjustment in
accordance with Section 2.7. 
 Section 2.4 Closing. The Closing shall take place at the offices of [*] at [*] on the later
to occur of (a) [*]following[*] (b) March 31, 2008, or otherwise at such other time and place as the Parties may mutually agree. The date on which the Closing occurs is called the “Closing Date”. 
 Section 2.5 Deliveries by Buyer. At [*] Buyer shall deliver to Seller the following: 
 (a) the Purchase Price, in immediately available funds by wire transfer to an account or accounts, which have been designated by Seller by
notice at least [*] prior to [*]; 
 (b) the certificate to be delivered pursuant to Section 6.3(d); and 
 (c) such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to
Seller, as may be required to give effect to this Agreement. 
  

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 Section 2.6 Deliveries by Seller. At [*], Seller shall deliver, or cause to be delivered, to
Buyer the following: 
 (a) the Documents of Title; 
 (b) the certificate to be delivered pursuant to Section 6.2(d); and 
 (c) such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory to
Buyer, as may be required to give effect to this Agreement. 
 Section 2.7 NAV Adjustment. (a) As soon as practicable but in
no event more than [*] days following [*], Buyer shall prepare, or cause to be prepared, and deliver to Seller the Closing Date Balance Sheet, which shall set forth the Closing Date Total Assets and the Closing Date Total Liabilities of the Company
as of the Closing, and which shall be prepared in the same manner, with consistent classification and estimation methodology, as the Pro Forma Balance Sheet was prepared. Upon completion of the Closing Date Balance Sheet, (i) Buyer shall
(A) derive the Closing Date Net Asset Value from the Closing Date Balance Sheet, and (B) calculate in accordance with Section 2.7(e) the Purchase Price Adjustment Amount (if any) to be paid by Buyer to Seller or by Seller to Buyer, as
the case may be, and (ii) deliver to Seller the Closing Date Balance Sheet and calculations in reasonable explanatory detail with respect to items (A) and (B) referred to in clause (i). 
 (b) Seller and Seller’s accountants shall complete their review of the Closing Date Balance Sheet, and Buyer’s calculation of
the Closing Date Net Asset Value and the Purchase Price Adjustment Amount (if any), within [*] days after Seller’s receipt thereof. In the event that Seller determines that the Closing Date Balance Sheet or any related calculation has not
been prepared on the basis set forth in Section 2.7(a), Seller shall, on or before the last day of such [*]-day period, so inform Buyer in writing (“Seller’s Objection”), setting forth a specific description of the basis
of Seller’s determination and the adjustments to the Closing Date Balance Sheet and the corresponding adjustments to the Closing Date Net Asset Value that Seller believes should be made; provided, however, that no item of dispute
shall be the subject of Seller’s Objection unless the aggregate amount of Seller’s adjustments would cause the Closing Date Net Asset Value (if accepted in accordance with the succeeding clause) to differ from the Closing Date Net Asset
Value reflected on the Closing Date Balance Sheet delivered by Buyer by more than the NAV Threshold Amount. If no Seller’s Objection is received by Buyer on or before the last day of such [*]-day period, then the Closing Date Net Asset Value
set forth on the Closing Date Balance Sheet delivered by Buyer shall be final. Buyer shall have [*] days from its receipt of Seller’s Objection to review and respond to Seller’s Objection. 
 (c) If Seller and Buyer are unable to resolve all of their disagreements with respect to the proposed adjustments set forth in
Seller’s Objection within [*] days following the completion of Buyer’s review of Seller’s Objection, they shall refer any remaining disagreements to the CPA Firm which, acting as experts and not as arbitrators, shall determine,
on the basis set forth in and in accordance with Section 2.7(a), and only with respect to the remaining differences so submitted, whether and to what extent, if any, the 

  

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Closing Date Balance Sheet and the Closing Date Net Asset Value require adjustment. Buyer and Seller shall instruct the CPA Firm to deliver its written
determination to Buyer and Seller no later than [*] days after the remaining differences underlying Seller’s Objection are referred to the CPA Firm. The CPA Firm’s determination shall be conclusive and binding upon Buyer and Seller
and their respective Affiliates. Buyer and Seller shall make readily available, or procure to be made readily available, to the CPA Firm all relevant books and records and any work papers (including the work papers of the parties’ respective
accountants, to the extent permitted by such accountants, but excluding any books, records or other materials that constitute Excluded Assets) relating to the Closing Date Balance Sheet and Seller’s Objection and all other items reasonably
requested by the CPA Firm in connection therewith. The fees and disbursements of the CPA Firm shall be borne equally by Seller and Buyer. 
 (d) Buyer shall timely provide to Seller and its accountants full access to the books and records of the Company and to any other information, including work papers of its accountants (to the extent permitted by such
accountants), and to any employees during regular business hours and on reasonable advance notice, to the extent necessary for Seller to review the Closing Date Balance Sheet and to prepare, or cause to be prepared, Seller’s Objection and
materials for presentation to the CPA Firm in connection with Section 2.7(c). Buyer and its accountants shall have full access to all information used by Seller in preparing Seller’s Objection, including work papers of its accountants (to
the extent permitted by such accountants), but excluding any books, records or other materials that constitute Excluded Assets. 
 (e) The Purchase Price shall be adjusted (the “Purchase Price Adjustment Amount”) by (i) the Base Net Asset Value, minus (ii) the Closing Date Net Asset Value, expressed as a positive, if positive, or as a
negative, if negative; provided, however, that, if the amount that would otherwise constitute a Purchase Price Adjustment Amount is equal to or less than the NAV Threshold Amount, no adjustment to the Purchase Price shall be made and
no Purchase Price Adjustment Amount shall be payable; provided, further, that Buyer or Seller, as the case may be, shall pay the full amount (including the NAV Threshold Amount) of any Purchase Price Adjustment Amount that is more than
the NAV Threshold Amount. If the Purchase Price Adjustment Amount is more than the NAV Threshold Amount and a negative number, then the Purchase Price shall be increased by the Purchase Price Adjustment Amount and Buyer shall promptly (and in any
event within [*]) after the final determination thereof pay to Seller the U.S. Dollar equivalent of the Purchase Price Adjustment Amount, calculated using the Closing Date Exchange Rate, plus interest on such U.S. Dollar amount from [*]
to, but not including, [*] at LIBOR calculated on a 365-day basis, by wire transfer of immediately available funds to an account designated by Seller. If the Purchase Price Adjustment Amount is more than the NAV Threshold Amount and a positive
number, then the Purchase Price shall be decreased by the Purchase Price Adjustment Amount and Seller shall promptly (and in any event within [*]) after the final determination thereof pay to Buyer the U.S. Dollar equivalent of the Purchase
Price Adjustment Amount, calculated using the Closing Date Exchange Rate, plus interest on such U.S. Dollar amount from [*] to, but not including, [*] at LIBOR calculated on a 365-day basis, by wire transfer of immediately available funds to an
account designated by Buyer. 
  

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 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Except as set forth in the disclosure schedule delivered
by Seller to Buyer on [*] (the “Seller Disclosure Schedule”), as of [*], Seller represents and warrants to Buyer as follows: 
 Section 3.1 Organization. Seller is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its
properties and assets and to conduct its business as it is currently being conducted. 
 Section 3.2 Corporate Authorization.
Seller has full corporate power and authority to execute and deliver this Agreement, and to perform its obligations hereunder. The execution, delivery and performance by Seller of this Agreement has been duly and validly authorized and no additional
corporate or shareholder authorization or consent is required in connection with the execution, delivery and performance by Seller of this Agreement. 
 Section 3.3 Consents and Approvals. Except as set forth on Schedule 3.3(a) of the Seller Disclosure Schedule, no consent, approval, waiver, authorization, notice, submission or filing is required to
be obtained by Seller from, or to be given by Seller to, or made by Seller with, any Government Entity, in connection with the execution, delivery and performance by Seller of this Agreement, except where the failure to do so would not, individually
or in the aggregate, be reasonably likely to have a Material Adverse Effect or materially impair or delay Seller’s ability to perform its obligations hereunder. Except as set forth on Schedule 3.3(b) of the Seller Disclosure Schedule, no
consent, approval, waiver, authorization, notice, submission or filing is required to be obtained by Seller from, or to be given by Seller to, or made by Seller with, any Person which is not a Government Entity in connection with the execution,
delivery and performance by Seller of this Agreement, except where the failure to do so would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect or materially impair or delay Seller’s ability to
perform its obligations hereunder. 
 Section 3.4 Non-Contravention. The execution, delivery and performance by Seller of this
Agreement do not and will not (a) violate any provision of the certificate of incorporation, bylaws or articles of incorporation (or similar organizational documents) of Seller or the Company, (b) assuming the receipt of all Seller
Required Approvals set forth on Schedule 3.3(b) of the Seller Disclosure Schedule, to the Knowledge of Seller, result in the breach of, or constitute a default under, or result in the termination, cancellation or acceleration (whether after the
filing of notice or the lapse of time or both) of, any material right or obligation of the Company under, or result in a loss of any material benefit to which the Company is entitled under, any Contract, or result in the creation of any Encumbrance
upon the Transferred Shares, or (c) assuming the receipt of all Seller Required Approvals set forth on Schedule 3.3(a) of the Seller Disclosure Schedule or required to be made or obtained by Buyer, to the Knowledge of Seller, violate or
result in a breach of, or constitute a default under, any Law to which the Company is subject or any Governmental Authorization, other than, in the cases of clauses (b) and (c), violations, breaches, defaults, terminations, cancellations,
accelerations or Encumbrances that would not, individually or in the aggregate, be reasonably likely to have a 

  

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Material Adverse Effect or materially impair or delay Seller’s ability to perform its obligations hereunder. 
 Section 3.5 Binding Effect. This Agreement, when duly executed and delivered by Buyer, constitutes a valid and legally binding obligation of
Seller, enforceable against Seller in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights and remedies generally and to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity). 
 Section 3.6 Company. (a) The Company is a corporation duly organized and validly existing under the Laws of Japan, the Company is not insolvent or subject to any insolvency or similar proceedings, and
no order has been made or petition presented or resolution passed for the winding up of the Company. The Company has all requisite corporate power and authority to own, lease and operate its properties and assets and to conduct its business as it is
currently being conducted. Seller has made available to Buyer complete and correct copies of the articles of incorporation of the Company as currently in effect. 
 (b) As of [*], the authorized capital stock of the Company consists of 10,000 shares of common stock (the “Common
Stock”), of which 9,500 shares of Common Stock are issued and outstanding (the “Transferred Shares”). The Transferred Shares have been duly authorized and validly issued in compliance with applicable Japanese Laws, and are
fully paid and non-assessable. There are no outstanding (i) securities of the Company convertible into or exchangeable for any shares of capital stock of the Company, (ii) options, warrants or other rights to purchase or subscribe for
shares of capital stock of the Company from the Company or that otherwise require the issuance of shares of capital stock by the Company, or (iii) contracts, commitments, agreements, understandings or arrangements of any kind relating to the
issuance or repurchase of any shares of capital stock of the Company, any such convertible or exchangeable securities or any such options, warrants or rights which, in any of the foregoing cases, is binding upon the Company. 
 (c) Seller is the registered and beneficial owner of the Transferred Shares. Seller has good and valid title to the Transferred Shares,
free and clear of all Encumbrances, and, upon consummation of the transactions contemplated hereby, at [*], subject only to the registration of the Transferred Shares in the shareholder register (kabunushi meibo) of the Company, Seller will
convey to Buyer good and valid title to the Transferred Shares, free and clear of all Encumbrances. 
 (d) The Company does
not own, directly or indirectly, any shares of capital stock or other equity interests in any Person, and it is not a member of or participant in any joint venture partnership or similar Person. 
 Section 3.7 Historical Financial Statements. Set forth on Schedule 3.7 of the Seller Disclosure Schedule is a copy of the unaudited
balance sheet and income statement of the Company, including the Excluded Assets and the Excluded Liabilities, for each of the fiscal years ended [*] and [*] and for the [*] months ended [*] (the “Historical Financial Statements”).
The Historical Financial Statements fairly present, in all material respects, the financial condition 

  

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and results of operations of the Company as of the dates thereof or for the periods presented therein in substantial conformity with Japanese GAAP, applied
on a consistent basis, except as otherwise noted therein and subject, in the case of the interim Historical Financial Statements, to normal year-end adjustments and certain presentation items therein. 
 Section 3.8 Litigation and Claims. Except as set forth on Schedule 3.8 of the Seller Disclosure Schedule: 
 (a) there is no civil, criminal or administrative action, suit, demand, claim, hearing or proceeding pending or, to the Knowledge of
Seller, threatened against the Company, other than those that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect or materially impair or delay Seller’s ability to effect the Closing; and

 (b) the Company is not subject to any order, writ, judgment, injunction, decree or award of any Government Entity or any
arbitrator or arbitrators, other than those that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect or materially impair or delay Seller’s ability to effect the Closing. 
 Section 3.9 Taxes. Except as set forth on Schedule 3.9 of the Seller Disclosure Schedule or as would not, individually or in the
aggregate, be reasonably likely to have a Material Adverse Effect: 
 (a) the Company has filed all material Tax Returns
required to be filed by it on or before [*] (taking into account all applicable extensions), and the Company has paid all Taxes shown therein as due and owing; 
 (b) the Tax Returns referred to in Section 3.9(a) above are correct and complete in all material respects; 
 (c) all deficiencies asserted or assessments made as a result of the examination of such Tax Returns have been paid in full; 

(d) no material issues have been raised in writing by the relevant taxing authority in connection with the examination of such Tax
Returns or are currently pending; and 
 (e) no waivers of statute of limitations have been given or requested with respect to
any Taxes of the Company. 
 Section 3.10 Benefit Plans. (a) Seller has listed on Schedule 3.10(a) of the Seller
Disclosure Schedule each material written employment, compensation, benefit, severance or similar contract, agreement, arrangement, program, policy or plan providing for workers’ compensation, disability benefits, severance, supplemental
unemployment benefits, vacation benefits, medical benefits or post-retirement insurance, pension or retirement, or for deferred compensation, profit-sharing, bonuses, stock options, stock appreciation rights or other forms of incentive compensation
or benefits that are maintained or contributed for the benefit of any current or former employee of the Company (each, a “Benefit Plan”). Seller has made available to Buyer copies of each such Benefit Plan; provided,
however, that Buyer acknowledges that 

  

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copies of Seller’s Plans are filed with the U.S. Securities and Exchange Commission and available on its website at www.sec.gov. 
 (b) Each Benefit Plan is in substantial compliance with its terms and applicable Japanese or (with respect to Seller’s Plans only)
U.S. Laws, other than failures to comply that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. Except as mandated by applicable Japanese or (with respect to Seller’s Plans only) U.S. Laws or
as set forth on Schedule 3.10(b) of the Seller Disclosure Schedule, there has been no amendment to, or material change in employee participation or coverage under, any Benefit Plan that would increase materially the expense of maintaining such
Benefit Plan above the level of expense incurred in respect thereof for the most recent fiscal year ended prior to [*]. 
 (c)
Except as set forth on Schedule 3.10(c) of the Seller Disclosure Schedule, none of the execution, delivery or performance of this Agreement will by itself require a payment, or cause acceleration of vesting of a right to payment, under any
Benefit Plan. 
 Section 3.11 Compliance with Laws. Except as set forth on Schedule 3.11 of the Seller Disclosure Schedule,
(a) the Company is in compliance with all applicable Laws, other than failures to comply that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect, and (b) the Company has all Governmental
Authorizations necessary for the conduct of the Business as currently conducted, other than those the absence of which would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect; it being
understood that nothing in this representation is intended to address any compliance issue that is specifically addressed by any other representation or warranty set forth herein. 
 Section 3.12 Labor. Except as set forth on Schedule 3.12 of the Seller Disclosure Schedule: 
 (a) the Company is not a party to or bound by any material labor agreement, union contract or collective bargaining agreement with respect
to the Employees. 
 (b) the Company is in compliance in all material respects with all labor Laws applicable to the Business
and the Employees, is not engaged in any unfair labor practices contrary to Laws applicable to the Employees and no unfair labor practice charge or complaint against the Company is pending or, to Seller’s Knowledge, threatened before any
Government Entity. 
 (c) there is no pending or, to the Knowledge of Seller, threatened strike, walkout or other work
stoppage or any union organizing effort by any of the Employees. 
 Section 3.13 Contracts. (a) Schedule 3.13(a) of the
Seller Disclosure Schedule sets forth a complete and accurate list of the following Contracts (“Material Contracts”): 
 (i) service agreements with clinical research organizations relating to the Licensed Products (as defined in the License Agreements); 
  

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 (ii) leases and subleases governing the Leased Real Property; 
 (iii) joint venture and partnership agreements; 
 (iv) mortgages, indentures, loan or credit agreements, security agreements or other agreements and instruments relating to the borrowing
of money or extension of credit, in each case in excess of [*]; 
 (v) other written Contracts that are not cancelable by the
Company on notice of [*] days or some lesser period and that require payment by the Company after [*] of more than [*] on an annual basis; and 
 (vi) any agreement containing a non-competition provision restricting the Company. 
 (b)
Subject to existing confidentiality obligations, Seller has made available to Buyer copies of all written Material Contracts and accurate written descriptions of all material terms of all oral Material Contracts. 
 (c) To the Knowledge of Seller, all Material Contracts are in full force and effect and are enforceable against each party thereto in
accordance with the terms thereof. Assuming the receipt of all Seller Required Approvals set forth on Schedule 3.3(b) of the Seller Disclosure Schedule, there does not exist under any Material Contract any violation, breach or event of default
or event or condition that (whether after the filing of notice or the lapse of time or both) would constitute a violation, breach or event of default thereunder on the part of the Company or, to the Knowledge of Seller, any other party thereto,
except as set forth on Schedule 3.13(c) of the Seller Disclosure Schedule and except for such violations, breaches, events or conditions that would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect or
materially impair the ability of Seller or Buyer to perform their respective obligations under this Agreement. 
 Section 3.14
Absence of Changes. Except as set forth on Schedule 3.14 of the Seller Disclosure Schedule and except as expressly provided in this Agreement (including the transfer of Excluded Assets pursuant to Section 2.2 and the termination of
Intercompany Contracts pursuant to Section 5.7) or any Ancillary Agreement, since [*], Seller and the Company have conducted the Business only in the Ordinary Course, and the Company has not experienced any event or condition that, individually
or in the aggregate, has had or is reasonably likely to have, a Material Adverse Effect, taking into account Seller’s announcements of its intention to sell, and the fact that it is selling, the Company. 
 Section 3.15 Real and Personal Property. The Company does not own any real property. Except as set forth on Schedule 3.15 of the Seller
Disclosure Schedule, the Company has a valid and binding leasehold interest in the Leased Real Property, and has good title to the personal property it owns or leases, free and clear of all Encumbrances, other than Permitted Encumbrances.

 Section 3.16 Absence of Liabilities. Except as reflected, reserved against or otherwise disclosed in the Historical Financial
Statements and except as set forth on Schedule 3.16 of the 

  

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Seller Disclosure Schedule, the Company does not have any liabilities, other than liabilities of a nature not required to be reflected, reserved against or
otherwise disclosed in the Historical Financial Statements and liabilities that were incurred since the date of the Historical Financial Statements and would not, individually or in the aggregate, be reasonably likely to have a Material Adverse
Effect. 
 Section 3.17 Insurance. Schedule 3.17 of the Seller Disclosure Schedule lists all material insurance policies of
the Company covering its properties, assets, employees and operations (including policies providing property, casualty, liability, and workers’ compensation coverage). All of such policies or renewals thereof are in full force and effect and,
to the Knowledge of Seller, will continue in full force and effect until [*]. 
 Section 3.18 Finders’ Fees. Except for [*],
all of whose fees will be paid by Seller, there is no investment banker, broker, finder or other intermediary that has been retained by or is authorized to act on behalf of Seller or the Company who might be entitled to any fee or commission from
Seller or the Company in connection with the transactions contemplated hereby or by any Ancillary Agreement. 
 Section 3.19 No Other
Representations or Warranties. Except for the representations and warranties contained in this Article, neither Seller nor any other Person makes any other express or implied representation or warranty on behalf of Seller. 
 ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF BUYER 
 As of [*], Buyer represents and warrants to Seller as follows: 
 Section 4.1 Organization. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of Japan. Buyer has all
requisite corporate power and authority to own, lease and operate its properties and assets and to conduct its business as it is currently being conducted. 
 Section 4.2 Corporate Authorization. Buyer has full corporate power and authority to execute and deliver this Agreement, and to perform its obligations hereunder. The execution, delivery and performance by
Buyer of this Agreement has been duly and validly authorized and no additional corporate or shareholder authorization or consent is required in connection with the execution, delivery and performance by Buyer of this Agreement. 
 Section 4.3 Consents and Approvals. Except for the Post-Closing Notification, no consent, approval, waiver, authorization, notice, submission
or filing is required to be obtained by Buyer from, or to be given by Buyer to, or made by Buyer with, any Government Entity or other Person in connection with the execution, delivery and performance by Buyer of this Agreement, other than those the
failure of which to obtain, give or make would not, individually or in the aggregate, materially impair or delay the ability of Buyer to effect the Closing or to perform its obligations under this Agreement. 
  

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 Section 4.4 Non-Contravention. The execution, delivery and performance by Buyer of this
Agreement do not and will not (a) violate any provision of the certificate of incorporation, bylaws or articles of incorporation (or similar organizational documents) of Buyer, (b) result in the breach of, or constitute a default under, or
result in the termination, cancellation, modification or acceleration (whether after the filing of notice or the lapse of time or both) of, any material right or obligation of Buyer under, or result in a loss of any material benefit to which Buyer
is entitled under, any contract, agreement or arrangement to which it is, or its assets are, subject, or result in the creation of any Encumbrance upon any of its assets, or (c) assuming the filing of the Post-Closing Notification and the
receipt of the Seller Required Approvals set forth on Schedule 3.3(a) of the Seller Disclosure Schedule, to the Knowledge of Buyer, violate or result in a breach of, or constitute a default under, any Law to which Buyer is subject, other than,
in the case of clauses (b) and (c), violations, breaches, defaults, terminations, cancellations, accelerations, losses or Encumbrances that would not, individually or in the aggregate, impair or delay the ability of Buyer to effect the Closing
or to perform its obligations under this Agreement. 
 Section 4.5 Binding Effect. This Agreement, when duly executed and
delivered by Seller, constitutes a valid and legally binding obligation of Buyer, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting
creditors’ rights and remedies generally and to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at Law or in equity).

 Section 4.6 Finders’ Fees. Except for [*], all of whose fees will be paid by Buyer, there is no investment banker,
broker, finder or other intermediary that has been retained by or is authorized to act on behalf of Buyer or any Affiliate of Buyer who might be entitled to any fee or commission from Buyer in connection with the transactions contemplated hereby or
by any Ancillary Agreement. 
 Section 4.7 Litigation and Claims. There is no civil, criminal or administrative action, suit,
demand, claim, hearing or proceeding pending or, to the Knowledge of Buyer, threatened against Buyer that, individually or in the aggregate, would impair or delay the ability of Buyer to effect the Closing. Buyer is not subject to any order, writ,
judgment, injunction, decree or award of any Government Entity or any arbitrator or arbitrators that, individually or in the aggregate, would impair or delay the ability of Buyer to effect the Closing. 
 Section 4.8 Financial Capability. On [*], Buyer will have sufficient funds to effect the Closing and all other transactions contemplated
hereby or by any Ancillary Agreement. 
 Section 4.9 No Other Representations or Warranties. Except for the representations and
warranties contained in this Article, neither Buyer nor any other Person makes any other express or implied representation or warranty on behalf of Buyer. 
  

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 ARTICLE V 
 COVENANTS 
 Section 5.1 Access and Information. (a) During the period from [*] until
[*], subject to any applicable Laws relating to the exchange of information and existing confidentiality obligations, Seller shall, or shall cause the Company to, provide to Buyer and its Representatives information reasonably requested by Buyer
relating to the assets of the Company (other than the Excluded Assets), the Books and Records and the Employees; provided, however, that in no event shall Buyer be entitled to any information that (i) based on advice of
Seller’s counsel, would create any potential liability under applicable Laws, including Competition Laws, or would destroy any legal privilege, or (ii) in the reasonable judgment of Seller, would result in the disclosure of any Trade
Secrets of Seller or any third party; it being understood that Buyer shall reimburse Seller promptly for expenses it incurs in complying with any such request by or on behalf of Buyer. All requests for information made
pursuant to this clause (a) shall be directed to such Person or Persons as Seller shall designate. All information received pursuant to this clause (a) shall be governed by the terms of the Confidentiality Agreement. 
 (b) Buyer agrees to retain all Books and Records in existence on [*] for a reasonable period following [*] and to make personnel of Buyer
available to Seller, in each case to the extent that such access is reasonably necessary for Seller to comply with the terms of this Agreement, any Ancillary Agreement or any applicable Law. In no event shall either Party have access to the
consolidated Tax Returns of the other Party. 
 Section 5.2 Conduct of Business. During the period from [*] until [*], except as
set forth on Schedule 5.2 of the Seller Disclosure Schedule or otherwise expressly contemplated by this Agreement (including the transfer of Excluded Assets pursuant to Section 2.2 and the termination of Intercompany Contracts pursuant to
Section 5.7) or any Ancillary Agreement, or as Buyer shall otherwise consent in writing (which consent shall not be unreasonably withheld or delayed), (a) Seller shall conduct, and shall cause the Company to conduct, the Business in the
Ordinary Course, and (b) Seller shall not, and shall cause the Company not to, with respect to the Business: 
 (i)
change or amend the articles of incorporation of the Company; 
 (ii) issue or sell or authorize for issuance and sale any
shares of capital stock of the Company, or any securities convertible into or exchangeable for, or options with respect to, or warrants to purchase or rights to subscribe for, any shares of capital stock of the Company; 
 (iii) declare, set aside or pay any dividend or other distribution in respect of the shares of Common Stock of the Company; 
 (iv) directly or indirectly redeem, purchase or otherwise acquire any shares of Common Stock of the Company; 
 (v) merge or consolidate the Company with or into any other Person or engage in any business combination of any kind; 
  

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 (vi) change any material accounting principles, practices, methodologies or policies,
other than as may be required by Japanese GAAP, U.S. generally accepted accounting principles or applicable Laws; 
 (vii)
grant any material increase in the compensation payable by the Company to any of its directors or officers or to the Employees or in the amount of existing benefits under any Benefit Plan, in each case other than increases in the Ordinary Course
(including any merit, special or promotional increase, bonus or equity incentive award) or as may be required by applicable Laws, and except for any one-time payment to the Employees that Seller, in its sole discretion, may make or fund; 

(viii) other than any capital expenditure or commitment not to exceed [*], enter into any Material Contract or terminate or amend, in
any material manner, any Material Contract; 
 (ix) take any action that would cause insurance coverage for the Business at
currently existing levels to cease to be maintained in full force and effect; 
 (x) write off or write down, or make any
sale, assignment or transfer of any material asset of the Company outside of the Ordinary Course, except for the transfer of Excluded Assets pursuant to Section 2.2; 
 (xi) waive or release any material right or claim of the Company; 
 (xii) incur any long-term indebtedness for borrowed money, other than in the Ordinary Course; and 
 (xiii) enter into any agreement obligating Seller or the Company to do any of the foregoing. 
 Section 5.3 Commercially Reasonable Efforts. Seller and Buyer shall cooperate and use their respective commercially reasonable efforts to
fulfill as promptly as practicable the conditions precedent to the other Party’s obligations hereunder. To the extent that, as an accommodation to Buyer and with Buyer’s written consent, Seller incurs costs that Buyer otherwise would have
to incur in order to secure any consent, approval, waiver or authorization, Buyer shall promptly reimburse Seller for any such costs that are invoiced by Seller to Buyer. 
 Section 5.4 JFTC Post-Closing Notification. Within [*] days following [*], Buyer shall file with the Japan Fair Trade Commission (“JFTC”) a post-Closing notification in connection
with the implementation of this Agreement and the transactions contemplated hereby (the “Post-Closing Notification”) and shall provide Seller with evidence of such filing reasonably satisfactory to Seller. The costs (including all
legal costs) of, and incidental to, such filing and any administrative fees and other fees (including any filing fee) payable to the JFTC shall be borne by Buyer. Subject to applicable Laws relating to the exchange of information and existing
confidentiality obligations, (i) Buyer and Seller shall cooperate and consult in good faith in relation to the preparation and filing of the Post-Closing Notification and any other notification, submission or filing with the JFTC;
provided, however, that, if the information requested contains information that is confidential or proprietary to the providing Party, such Party shall 

  

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not be required to disclose such information to the other Party and may procure the submission thereof directly to the JFTC or to the legal advisors of the
Parties appointed to handle the requisite submission with strict instructions that such information is provided solely for submission to the JFTC or such other Government Entity and may not be disclosed to any other party, and (ii) prior to the
filing of the Post-Closing Notification or any other notification, submission or filing with the JFTC by Buyer, Seller shall have approved the final content thereof (which approval shall not be unreasonably withheld or delayed). Buyer shall timely
inform Seller of any meetings that Buyer may have with the JFTC and Representatives of Seller shall be permitted to attend such meetings. If any Party receives any correspondence or communication from the JFTC, such Party shall, as soon as possible
after the receipt thereof, furnish the other Party with a copy of such correspondence or inform the other Party of the content of the communication. 
 Section 5.5 Tax Matters. (a) Section 338(g) Election. 
 (i)
Buyer, at the request of Seller, shall timely make an election under Section 338(g) of the Code (and any comparable provisions of state, local or non-U.S. Tax Law) with respect to its purchase of the Transferred Shares (the
“Section 338(g) Election”). Seller and Buyer shall jointly prepare the Section 338 Forms and shall timely make any required filings and take any and all other actions necessary to effect the Section 338(g) Election.
For purposes of this clause, “Section 338 Forms” means all Tax Returns, documents, statements and other forms that are required to be submitted to the U.S. Internal Revenue Service or any state, local or non-U.S. Government
Entity in connection with the Section 338(g) Election, including the IRS Forms 8023 and 8883 (including, in each case, any schedules or attachments required to be attached thereto) and any other forms required to be filed by Treasury
Regulations promulgated under Section 338 of the Code or instructions to the Tax Returns. 
 (ii) In connection with the
Section 338(g) Election, Seller shall prepare a draft IRS Form 8883 (or successor form) and provide such draft IRS Form 8883 to Buyer no later than [*] days prior to the due date of such IRS Form 8883. If, within [*] days
after the receipt of the draft IRS Form 8883, Buyer notifies Seller in writing that Buyer disagrees with the draft IRS Form 8883, then the Parties shall attempt in good faith to resolve their disagreement within the [*] days following
Buyer’s notification to Seller of such disagreement. If Buyer does not so notify Seller within [*] days after the receipt of the draft IRS Form 8883, or upon resolution of the disputed items by the Parties, the draft IRS Form 8883
shall become the “Final IRS Form 8883”. If the Parties are unable to resolve their disagreement within the [*] days following any such notification by Buyer, then the Parties shall submit all such disputed items for resolution to a
nationally recognized accounting firm mutually acceptable to the Parties (the “Independent Accounting Firm”), whose decision shall be final and binding upon all Persons involved and whose fees and expenses shall be borne equally by
the Parties. The IRS Form 8883 delivered by the Independent Accounting Firm shall be the “Final IRS Form 8883”. The Parties shall act in good faith to cause the Independent Accounting Firm to deliver the Final IRS Form 8883
within [*] days after such submission. Each Party shall be bound by the allocations described in this clause for all purposes, including determining any Tax, shall (and shall cause its common parent, if any, to) prepare and file all Tax Returns

  

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in a manner consistent with the Section 338(g) Election and such allocations, and shall not take (or permit any Affiliate to take) any position
inconsistent with the Section 338(g) Election or such allocations in any Tax Return, any proceeding before a Government Entity or otherwise. The Purchase Price allocation pursuant to the Final IRS Form 8883 shall be appropriately adjusted
if and when any Purchase Price adjustments are made pursuant to this Agreement. In the event the allocation is disputed by any Government Entity, the Party receiving the notice of such dispute shall promptly notify and consult with the other Party
concerning the resolution of such dispute, and shall keep the other Party apprised of the status of such dispute and the resolution thereof. 
 (b) Liability for Taxes. 
 (i) Seller shall be liable for all Taxes imposed on the
Company for any taxable periods, or portions thereof, ending on or before [*]. 
 (ii) Buyer shall be liable for all Taxes
imposed on the Company for any taxable year, or portion thereof, beginning after [*]. 
 (iii) To the extent necessary to
determine the liability for Taxes for a portion of a taxable year or period that begins before and ends after [*], the determination of the Taxes for the portion of the year or period ending on, and the portion of the year or period beginning after,
[*] shall be determined by assuming that the taxable year or period ended as of the close of business on [*], except that those annual property taxes and similar Taxes and exemptions, allowances or deductions that are calculated on an annual basis
shall be prorated on a time basis. 
 (c) Tax Returns. Seller shall file, or cause to be filed, when due all Tax
Returns that are required to be filed by or with respect to the Company for taxable years or periods ending on or before [*] and shall pay any Taxes due in respect of such Tax Returns, and Buyer shall file, or cause to be filed, when due all Tax
Returns that are required to be filed by or with respect to the Company for taxable years or periods ending after [*]. Seller shall pay Buyer the Taxes for which Seller is liable pursuant to Section 5.5(b) (but which are payable with Tax
Returns to be filed by Buyer pursuant to the previous sentence) within [*] days prior to the due date for the filing of such Tax Returns, and Buyer shall timely pay all other Taxes imposed on the Company for the periods, or portions thereof, ending
after [*]. 
 (d) Contest Provisions. 
 (i) Buyer shall promptly, but in no event more than [*] days following Buyer’s receipt of notice, notify Seller in writing upon
receipt by Buyer or any of its Affiliates of notice of any pending or threatened tax audits, assessments, disputes or proceedings (“Tax Proceedings”) that may affect the Tax liabilities of the Company for which Seller would be
liable hereunder; provided, however, that failure to comply with this provision shall not affect Buyer’s rights hereunder, except to the extent that Seller is prejudiced by such failure. 
 (ii) Buyer shall take all reasonable steps necessary to conduct any Tax Proceedings relating to any claim relating to Taxes for which
Seller may be liable 

  

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hereunder diligently and in good faith, using commercially reasonable efforts to minimize Seller’s liability hereunder. Seller shall be entitled to
participate in and control at its own expense the conduct or resolution of any Tax Proceedings relating to any claim relating to Taxes for which Seller may be liable hereunder. Neither Buyer nor the Company may agree to settle, compromise or offer
to settle or compromise any Tax claim for which Seller may be liable hereunder without the prior written consent of Seller (which consent shall not be unreasonably withheld or delayed). 
 (e) Information. Seller and Buyer agree to furnish, or cause to be furnished, to the other Party, promptly upon reasonable request
therefor, information and assistance relating to the Company as Buyer or Seller, as the case may be, reasonably deems necessary in connection with the filing of any Tax Returns, the preparation for any audit by any taxing authority, the response to
any inquiry by a taxing authority, the mailing or filing of any notice and the prosecution or defense of any Tax Proceedings or any other filing required to be made with any taxing authority or any other matter related to Taxes. 
 (f) Transfer Taxes. Any transfer, stamp, value-added, sales, use, excise, documentary or other similar Taxes and fees
(collectively, “Transfer Taxes”), that are payable or that arise as a result of the consummation of the transactions contemplated hereby, and any recording or filing fees with respect thereto, shall be paid by Buyer. Buyer shall
prepare and timely file all relevant Tax Returns required to be filed in respect of such Transfer Tax and pay the Transfer Tax shown on such Tax Return. 
 (g) Adjustment to Cash Purchase Price. To the extent allowed under applicable Law, any payment by Buyer or Seller under this Section shall be an adjustment to the Purchase Price. 
 (h) Survival of Obligations. The obligations of the Parties set forth in this Section shall remain in effect until the expiration
of the applicable statute of limitations. 
 Section 5.6 Employee Matters. (a) Seller shall cooperate with Buyer in making
any and all appropriate governmental filings, giving employee notices or taking any other actions reasonably necessary to maintain, amend, terminate and administer the Benefit Plans (other than Seller’s Plans) as of [*] or after [*], as Buyer
deems fit, subject to the other provisions of this Section. Buyer shall pay all costs associated with such actions and shall reimburse Seller for any costs incurred by Seller in complying with its obligations under this Section. 
 (b) Nothing in this Section, express or implied, is intended to confer upon any Person other than Buyer, Seller, the Indemnified Parties
and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement. 
 Section 5.7
Intercompany Contracts and Accounts. Except as otherwise expressly provided in this Agreement or any Ancillary Agreement, Seller shall take all actions necessary, prior to or concurrent with [*], (a) to terminate, wind up or otherwise
settle as Seller deems fit all agreements between the Company, on the one hand, and Seller or any of its Affiliates (other than the Company), on the other hand (each, an “Intercompany Contract”), and (b) to cause the net amount
of intercompany accounts between the Company, on the one hand, and the Seller or any 

  

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of its Affiliates (other than the Company), on the other hand, to be satisfied in full by the Seller or by the Company, as the case may be. 
 Section 5.8 Further Assurances. (a) General. From time to time after [*], each Party shall, and shall cause its Affiliates to,
promptly do and perform all such further acts and things and shall execute, acknowledge and deliver such other assurances, agreements, certificates, powers of attorney and other instruments and documents necessary, or that the other Party may
reasonably request, in order to carry out the intent and accomplish the purposes of this Agreement and to evidence, perfect or otherwise confirm its rights hereunder. 
 (b) Nonassignability of Excluded Assets. Notwithstanding anything to the contrary contained herein, to the extent that the sale,
assignment, sublease, transfer, conveyance or delivery or attempted sale, assignment, sublease, transfer, conveyance or delivery by the Company to Seller of any asset that would be an Excluded Asset or any claim or right or any benefit arising
thereunder or resulting therefrom is prohibited by any applicable Law or would require any governmental or third party authorizations, approvals, consents or waivers, and such authorizations, approvals, consents or waivers shall not have been
obtained prior to [*], [*] shall proceed without the sale, assignment, sublease, transfer, conveyance or delivery of such asset. Following [*], the Parties and their respective Affiliates shall use their commercially reasonable efforts, and
cooperate with each other, to, at Seller’s option, (i) obtain promptly such authorizations, approvals, consents or waivers and (ii) terminate, wind up or mitigate the costs associated with such asset; provided, however,
that none of Seller, Buyer or the Company shall be required to pay any consideration therefor, other than filing, recordation or similar fees, which shall be borne by Seller. If Seller elects to obtain such authorization, approval, consent or waiver
pursuant to clause (i), (A) pending such authorization, approval, consent or waiver, the Parties and their respective Affiliates shall cooperate with each other in any mutually agreeable, reasonable and lawful arrangements designed to
provide to Seller the benefits of use of such asset (including preserving the confidentiality of any Confidential Information related thereto) and to Buyer the benefits that it would have obtained had such asset been conveyed by the Company to
Seller prior to [*]; (B) once authorization, approval, consent or waiver for the sale, assignment, sublease, transfer, conveyance or delivery of any such asset is obtained, Buyer shall, or shall cause the Company to, sell, assign, sublease,
transfer, convey or deliver such asset to Seller at no additional cost; and (C) to the extent that any such asset cannot be transferred or the full benefits of use of any such asset cannot be provided to Seller following [*] pursuant to this
Section, then Buyer or the Company and Seller shall enter into such arrangements (including subleasing, sublicensing or subcontracting) to provide to the Parties hereto the economic (taking into account Tax costs and benefits) and operational
equivalent, to the extent permitted, of obtaining such authorization, approval, consent or waiver and the performance by Buyer or the Company, as the case may be, of the obligations thereunder. 
 (c) Additional Assurances in Connection with the Transition of the Excluded Assets. The Parties acknowledge that it is in their
mutual interests to effect the Closing as soon as practicable in accordance with Section 2.4. Buyer acknowledges that Seller intends to work diligently to cause the Company to transfer the Excluded Assets to Seller and/or its designee prior to
[*] pursuant to Section 2.2; provided, however, that the Parties expect that all such asset transfers will not have been completed as of [*], and Buyer shall, and shall cause the 

  

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Company to, cooperate with Seller from and after [*] to ensure a timely, orderly and complete transition of the Excluded Assets from the Company to Seller
and/or its designee in a manner that fully protects the confidential and proprietary nature of such Excluded Assets (including in respect of Buyer). Without limiting the generality of the foregoing, (i) to the extent that any Excluded Asset has
not been transferred by the Company to Seller or its designee prior to [*], Buyer shall, or shall cause the Company to, promptly assign and transfer to Seller or its designee all right, title and interest in and to such asset and, to the extent such
assignment and transfer would require any governmental or third party authorizations, approvals, consents or waivers, cooperate with Seller in the same manner as that set forth in Section 5.8(b), and (ii) Buyer shall cause the Company and
its employees to provide to Seller and/or its designee such services as Seller may reasonably request, at Seller’s expense and direction, to complete the timely transition of the Excluded Assets from the Company to Seller and/or its designee,
in a manner designed to protect and preserve the Seller Confidential Information (including in respect of Buyer), and to ensure Seller’s compliance with applicable Laws and existing third-party obligations in respect of the Excluded Assets, and
on such other terms and conditions as the Parties may mutually agree. 
 (d) [*] and Support Services. 
 (i) In furtherance of Section 5.8(c), prior to [*] Seller may, and during a period of time after [*] not to exceed [*] (the
“[*] Period”) at Seller’s request, Buyer shall, cause the Company to [*] for the [*] Period those Employees to be identified by Seller and reasonably agreed to by Buyer (the “[*] Employees”); provided,
however, that (A) in no event shall the number of such [*] Employees in each area of expertise be less than is reasonably necessary to complete the timely transition of the Excluded Assets from the Company to Seller and/or its designee
in compliance with applicable Laws and existing third-party obligations, and (B) such [*] Employees shall include those Employees who have been directly engaged in clinical development operations and clinical safety in respect of the Excluded
Assets as of [*], including all [*] and Employees involved in [*]. Without limiting the foregoing, prior to [*] Seller may include in the [*] described herein at least the critical Employees whose names are set forth on Schedule 5.8(d) (the
“Critical Employees”), and during the [*] Period at Seller’s request, Buyer shall cause the Company to use commercially reasonable efforts to ensure that the [*] Employees include at least the Critical Employees. Buyer shall,
and shall cause the Company to, use commercially reasonable efforts to facilitate and obtain the relevant [*] in connection with the [*] described herein. Prior to [*] Seller may, and during the [*] Period at Seller’s request, Buyer shall,
cause the Company to enter into such agreements or arrangements with its consultants and temporary contractors who are directly engaged in [*] in respect of the Excluded Assets as of [*], including at least the critical temporary contractors whose
names are set forth on Schedule 5.8(d) (the “Service Providers”), to cause them to continue to provide such services [*] after [*] under [*]. Seller and/or its designee shall [*] Employees and the Service Providers, and shall
be entitled to [*] Employees and the Service Providers such [*] as Seller and/or its designee may determine in its sole discretion. Notwithstanding anything to the contrary contained herein, Buyer shall cause the Company to provide that any Benefit
Plan in which the [*] Employees are eligible to participate will take into account, for purposes of determining eligibility and benefits thereunder, the [*] with the Company, and otherwise to provide 

  

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the [*] Employees with such compensation, benefit and other opportunities as to which the [*] Employees would [*] with the Company. During the [*] Period,
Buyer shall not, and shall cause the Company not to, provide any [*] Employees or Service Providers, and shall use commercially reasonable efforts to [*] Employees and Services Providers. 
 (ii) During the [*] Period, at Seller’s request, Buyer shall cause the Company to (A) [*] Employees and Service Providers, [*]
and information technology resources (collectively, the “Facility Resources”) to be agreed by the Parties, comprising (x) in respect of [*] Employees as of [*], and (y) such other additional Facility Resources as the
Parties may agree in good faith are reasonably necessary to enable the [*] Employees and Service Providers to complete the timely transition of the Excluded Assets from the Company to Seller and/or its designee, in a manner designed to protect and
preserve the Seller Confidential Information (including in respect of Buyer), and to ensure Seller’s compliance with applicable Laws and existing third-party obligations in respect of the Excluded Assets (the “Designated
Facilities”), (B) permit [*] Employees and Service Providers, (C) provide to Seller and/or its designee such clinical data management services as shall be reasonably requested by Seller in support of the Excluded Assets and are
not otherwise being provided by the [*] Employees and Service Providers, including [*] (the “Support Services”), and (D) provide to Seller and/or its designee such [*] as shall be reasonably requested by Seller to ensure drug
supply for ongoing clinical studies in connection with the Excluded Assets (“Laboratory Access”). [*] 
 (e)
Additional Agreements. To the extent that Seller requests that the rights and obligations of the Parties and/or the Company in connection with the transition of the Excluded Assets (including any [*] of the [*] Employees and arrangements in
respect of the [*] Support Services and [*]) be described in further detail in additional written assurances, agreements and other instruments and documents, the Parties shall, and shall cause the Company to, cooperate and work diligently in good
faith to negotiate and execute such assurances, agreements and other instruments and documents (including [*] agreements with the [*] Employees, transition services agreements and other similar agreements). Notwithstanding anything to the contrary
contained herein, (i) at Seller’s request and to the extent practicable, the Parties shall work diligently and in good faith to enter into all or any such agreements prior to [*], and (ii) Seller, in consultation with Buyer, shall be
entitled to cause the Company to enter into all or any such agreements prior to [*] and such agreements shall survive [*] and shall not be required to be terminated in accordance with Section 5.7. 
 (f) Specific performance. Buyer acknowledges and agrees that any breach of this Section 5.8 would give rise to irreparable
harm for which monetary damages would not be an adequate remedy. Buyer accordingly agrees that, in addition to all other available remedies, Seller shall be entitled to enforce the terms of this Section by decree of specific performance without the
necessity of proving the inadequacy of monetary damages as a remedy and to obtain injunctive relief against any breach or threatened breach of this Section. 
 Section 5.9 Confidentiality. (a) Except as otherwise agreed by Seller in writing (including pursuant to this Agreement or any other Ancillary Agreement), (i) promptly after [*], Buyer shall make
a request to the Company to instruct its employees not to disclose to Buyer, 

  

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Buyer’s Representatives or any other third parties, or use for any purpose whatsoever (except as contemplated by Section 5.8), any information,
knowledge or data required for, relating to, or used in connection with, the Excluded Assets or the Excluded Liabilities, including in connection with any services provided by the Company to Seller pursuant to Section 5.8(c)(ii), or which is
known to the Company and its employees as a result of their affiliation or cooperation with Seller (the “Seller Confidential Information”); it being understood that, as soon as practicable after [*],
Buyer shall use best efforts to enter into an agreement with the Company whereby the Company shall use its reasonable efforts to cause its employees not to disclose to Buyer, Buyer’s Representatives or any other third parties, or use for any
purpose whatsoever (except as contemplated by Section 5.8), the Seller Confidential Information after the conclusion of such agreement between Buyer and the Company, and Buyer shall enforce such agreement and use reasonable efforts to mitigate
any adverse consequences arising from the Company’s non-compliance therewith, (ii) Buyer shall not solicit or otherwise encourage the disclosure of Seller Confidential Information by the Company to Buyer or Buyer’s Representatives,
(iii) if, despite having met its obligations to Seller in clauses (i) and (ii) above, Buyer receives Seller Confidential Information or Seller Confidential Information otherwise becomes known to Buyer, Buyer and Buyer’s
Representatives shall return or, at Seller’s request, destroy such information, and (iv) Buyer and Buyer’s Representatives shall not, and Buyer shall obligate the Company pursuant to the agreement between Buyer and the Company
referred to in clause (i) above not to, use such information for any purpose whatsoever (other than, with respect to the Company, as contemplated by Section 5.8) or disclose it to any third party. Buyer shall not, and shall cause the
Company not to, authorize any use (except as contemplated by Section 5.8) or disclosure to third parties of Seller Confidential Information. If Buyer becomes aware of any violation of the provisions of this Section 5.9, Buyer shall
promptly notify Seller and shall take all reasonable steps necessary to cease and cure such violation to Seller’s satisfaction. Before [*], Seller shall use best efforts to enter into an agreement with the Company whereby the Company shall
cause its employees not to disclose to Buyer, Buyer’s Representatives or any other third parties, or use for any purpose whatsoever (except as contemplated by Section 5.8), the Seller Confidential Information prior to, on or after [*]
(which agreement shall not be required to be terminated in accordance with Section 5.7). If Seller so requests at any time, Buyer shall request the Company and its employees to promptly return to Seller or, upon notice from Seller, promptly
destroy all copies of Seller Confidential Information and all copies, notes, extracts or other derivative works based thereon. Buyer shall request the Company to certify any such destruction of Seller Confidential Information in writing and provide
such certification to Seller within 10 days following Seller’s request for such destruction. 
 (b) Buyer and Seller
acknowledge that the confidentiality obligations set forth herein shall not extend to information, knowledge and data to the extent that it can be established by Buyer by written documentation that such information (i) was already known to
Buyer, other than under an obligation of confidentiality (except to the extent such obligation was to a third party other than Seller or any of its Affiliates and has expired or an exception is applicable under the relevant agreement pursuant to
which such obligation was established), at the time of disclosure, (ii) was generally available to the public or otherwise part of the public domain at the time of its disclosure to Buyer, (iii) became generally available to the public or
otherwise part of the public domain after its disclosure and other than through any act or omission of Buyer in breach of this Agreement, (iv) was independently developed without use of or reference to Confidential Information by Buyer as
demonstrated by documented 

  

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evidence prepared contemporaneously with such independent development, or (v) was disclosed to Buyer, other than under an obligation of confidentiality
(except to the extent such obligation was to a third party other than Seller or any of its Affiliates and has expired or an exception is applicable under the relevant agreement pursuant to which such obligation was established), by a third party who
had no obligation to Seller or any of its Affiliates not to disclose such information to others. 
 (c) The confidentiality
obligations in this Section shall survive [*] for a period of [*] years. In the event of a breach of the obligations under this Section by Buyer, Seller, in addition to all other available remedies, shall be entitled to injunctive relief to enforce
the provisions of this Section in any court of competent jurisdiction. 
 Section 5.10 Public Disclosure. Neither Party shall
disclose the terms and conditions of this Agreement to any other Person, except to such Party’s Representatives subject to confidentiality obligations as restrictive as those contained herein and as may be required by applicable Law.
Notwithstanding the foregoing, with respect to complying with the disclosure requirements of any Government Entity in connection with any required filing of this Agreement, the Parties shall consult with one another concerning which terms of this
Agreement shall be requested to be redacted in any public disclosure of the Agreement, and in any event each Party shall, at the request of the other Party, seek reasonable confidential treatment for any public disclosure by any such Government
Entity. Notwithstanding the foregoing, the Parties have agreed upon and shall release a mutual press release to announce the execution of this Agreement in the form attached hereto as Exhibit 5.10 for use in responding to inquiries about this
Agreement. Thereafter, Seller and Buyer may each disclose the information contained in such press release without the need for further approval by the other Party. Each Party shall have the right to issue additional press releases with the prior
written consent of the other Party or as required to comply with any applicable Law or by the rules of any stock exchange or automated quotation system (in the case of such required disclosure, by providing [*] notice to the other Party and
reasonably considering comments provided by such other Party within [*] after such notice). 
 Section 5.11 Name Change. Within
[*] following [*], Buyer shall cause the name of the Company to be changed from Amgen Kabushiki Kaisha to a name selected by Buyer and complete the filing required to reflect such name change in the corporate registration of the Company. With
respect to any signs, business cards, stationery or similar materials carrying a Trademark or embodying a Copyright of Seller, Buyer shall, and shall cause the Company to, promptly return to Seller or, upon notice from Seller, destroy all such
materials. 
 Section 5.12 Payment of Certain Liabilities. Notwithstanding anything to the contrary contained herein, Buyer shall
cause the Company to timely pay, perform or otherwise satisfy the liabilities reflected on the Closing Date Balance Sheet, including the compensation and other benefits set forth on Schedule 5.2 of the Seller Disclosure Schedule. 
  

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 ARTICLE VI 
 CONDITIONS TO CLOSING 
 Section 6.1 Conditions to the Obligations of Buyer and Seller.
The obligations of the Parties to effect the Closing are subject to the satisfaction (or waiver, to the extent permissible under applicable Law) prior to the Closing of the following conditions: 
 (a) No Prohibition. No Law shall be in effect prohibiting the sale and purchase of the Transferred Shares. 
 Section 6.2 Conditions to the Obligations of Buyer. The obligation of Buyer to effect the Closing is subject to the satisfaction (or waiver
by Buyer) prior to [*] of the following conditions: 
 (a) Representations and Warranties. Each of the representations
and warranties of Seller contained in this Agreement (considered without regard to any reference to materiality qualifiers such as “material” and “Material Adverse Effect” set forth therein) shall be true and correct as of [*]
and as of [*] as if made on and as of [*] (except for such representations and warranties that are made as of a specific date, which shall speak only as of such date), except where the failure of such representations and warranties to be so true and
correct has not had and is not reasonably likely to have, individually or in the aggregate with any other failures of such representations and warranties to be true and correct, a Material Adverse Effect. 
 (b) Covenants. Each of the covenants and agreements of Seller to be performed on or prior to [*] shall have been duly performed,
except where the failure to perform such covenants and agreements has not had and is not reasonably likely to have, individually or in the aggregate with any other failures to perform such covenants and agreements, a Material Adverse Effect.

 (c) Ancillary Agreements. Each of the License Agreements and the Supply Agreement shall have become effective in
accordance with its terms and shall be in full force and effect. 
 (d) Certificate. Buyer shall have received a
certificate, signed by a duly authorized officer of Seller and dated [*], to the effect that the conditions set forth in Sections 6.2(a) and 6.2(b) have been satisfied. 
 Section 6.3 Conditions to the Obligations of Seller. The obligation of Seller to effect the Closing is subject to the satisfaction (or waiver
by Seller) prior to the Closing of the following conditions: 
 (a) Representations and Warranties. Each of the
representations and warranties of Buyer contained in this Agreement that is qualified by a materiality standard shall be true and correct as of [*] and as of [*] as if made on and as of [*] (except for such representations and warranties that are
made as of a specific date, which shall speak only as of such date) and each of the representations and warranties of Buyer contained in this Agreement that is not qualified by a materiality standard shall be true and correct in all material
respects as of [*] 

  

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and as of [*] as if made on and as of [*] (except for such representations and warranties that are made as of a specific date, which shall speak only as of
such date). 
 (b) Covenants. Each of the covenants and agreements of Buyer to be performed on or prior to [*] shall
have been duly performed in all material respects. 
 (c) Ancillary Agreements. Each of the License Agreements and the
Supply Agreement shall have become effective in accordance with its terms and shall be in full force and effect. 
 (d)
Certificate. Seller shall have received a certificate, signed by a duly authorized officer of Buyer and dated [*], to the effect that the conditions set forth in Sections 6.3(a) and 6.3(b) have been satisfied. 
 ARTICLE VII 
 SURVIVAL;
INDEMNIFICATION; REMEDIES 
 Section 7.1 Survival. (a) The representations and warranties of Seller and Buyer contained
in this Agreement shall survive [*] for the period set forth in this Section. All representations and warranties contained in this Agreement and all claims with respect thereto shall terminate upon the expiration of [*] after [*], except that the
representations and warranties contained in Sections 3.1, 3.2, 3.5, 3.6, 4.1, 4.2 and 4.5 shall survive forever; it being understood that, in the event that notice of any claim for indemnification under
Section 7.2(a) or 7.3 has been given (within the meaning of Section 9.1) within the applicable survival period, the representations and warranties that are the subject of such indemnification claim shall survive with respect to such claim
until the time of Final Determination of such claim. 
 (b) All covenants and agreements of Seller and Buyer contained in this
Agreement shall survive [*] (and shall not be merged into any transfer or closing instruments or documents) for a period of [*] after [*], except that the covenants and agreements contained in Sections 5.1(b), 5.5, 5.8, 5.9 and 5.10 shall
survive in accordance with their respective terms; it being understood that, in the event that notice of any claim for indemnification under Section 7.2(a) or 7.3 has been given (within the meaning of
Section 9.1) within the applicable survival period, the covenants and agreements that are the subject of such indemnification claim shall survive with respect to such claim until the time of Final Determination of such claim. 
 Section 7.2 Indemnification by Seller. (a) Seller hereby agrees that, from and after [*], it shall indemnify, defend and hold harmless
Buyer and its directors, officers and employees (other than the Employees), each in their capacity as such (the “Buyer Indemnified Parties” and, collectively with the Seller Indemnified Parties, the “Indemnified
Parties”), from, against and in respect of any damages, losses, payments, liabilities, charges, claims, demands, actions, suits, proceedings, judgments, settlements, assessments, deficiencies, taxes, interest, penalties, and costs and
expenses (including reasonable accountants’ and attorneys’ fees, and reasonable out-of-pocket disbursements) (collectively, “Losses”) imposed on, sustained, incurred or suffered by, any of the Buyer Indemnified Parties,
whether in respect of third-party claims, claims between 

  

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the Parties, or otherwise, directly or indirectly relating to, arising out of or resulting from (i) subject to Section 7.2(b), any breach of any
representation or warranty made by Seller contained in this Agreement for the period such representation or warranty survives, (ii) any breach of any covenant or agreement of Seller contained in this Agreement for the period such covenant or
agreement survives, and (iii) any of the Excluded Liabilities. 
 (b) Seller shall not be liable to the Buyer Indemnified
Parties for any individual Loss with respect to the matters contained in Section 7.2(a)(i) unless (i) such individual Loss exceeds the Individual Loss Limit and (ii) the aggregate amount of all such individual Losses in excess of the
Individual Loss Limit exceeds the Aggregate Loss Limit, and then only for such Losses in excess of the Aggregate Loss Limit up to an aggregate amount equal to [*]% of the Purchase Price. 
 Section 7.3 Indemnification by Buyer. Buyer hereby agrees that, from and after [*], it shall indemnify, defend and hold harmless Seller and
its directors, officers and employees, each in their capacity as such (the “Seller Indemnified Parties”), from, against and in respect of any Losses imposed on, sustained, incurred or suffered by, any of the Seller Indemnified
Parties, whether in respect of third-party claims, claims between the Parties, or otherwise, directly or indirectly relating to, arising out of or resulting from (a) any breach of any representation or warranty made by Buyer contained in this
Agreement for the period such representation or warranty survives, (b) any breach of a covenant or agreement of Buyer contained in this Agreement for the period such covenant or agreement survives, and (c) the Business, the assets of the
Company or the Employees to the extent attributable to the operation or ownership of the Business or the assets of the Company, or the employment of the Employees, following [*] (including liabilities relating to (A) investigation, removal,
remediation, containment, cleanup or abatement of the presence, release or threatened release of any Hazardous Substance, whether on-site or off-site, and (B) any claim by any third party, including tort suits for personal or bodily injury,
property damage or injunctive relief relating to the presence of, or exposure to, any Hazardous Substance), but excluding the Excluded Liabilities. 
 Section 7.4 Indemnification Procedures. 
 (a) In the event that any written claim or demand for which
Seller or Buyer, as the case may be, each in its capacity as an indemnifying party (an “Indemnifying Party”), may have liability to any Indemnified Party under this Article, other than those relating to Taxes (which are the subject
of Section 5.5), is asserted against or sought to be collected from any Indemnified Party by a third party (a “Third-Party Claim”), such Indemnified Party shall promptly, but in no event more than [*] days following such
Indemnified Party’s receipt of a Third-Party Claim, notify the Indemnifying Party of such Third-Party Claim, the amount or the estimated amount of damages sought thereunder to the extent then ascertainable (which estimate shall not be
conclusive of the final amount of such Third-Party Claim), any other remedy sought thereunder, any relevant time constraints relating thereto and, to the extent practicable, any other material details pertaining thereto (a “Claim
Notice”); provided, however, that the failure to timely give a Claim Notice shall affect the rights of an Indemnified Party hereunder only to the extent that such failure has a prejudicial effect on the defenses or other
rights available to the Indemnifying Party with respect to such Third-Party Claim. The Indemnifying Party shall have [*] days (or such lesser number of days set forth in the Claim 

  

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Notice as may be required by court proceeding in the event of a litigated matter) after receipt of the Claim Notice (the “Notice Period”) to
notify the Indemnified Party that it desires to defend the Indemnified Party against such Third-Party Claim. 
 (b) In the
event that the Indemnifying Party notifies the Indemnified Party within the Notice Period that it desires to defend the Indemnified Party against a Third-Party Claim, the Indemnifying Party shall have the right to defend the Indemnified Party by
appropriate proceedings and shall have the sole power to direct and control such defense at its expense. Once the Indemnifying Party has duly assumed the defense of a Third-Party Claim, the Indemnified Party shall have the right (but not the
obligation) to participate in any such defense and to employ separate counsel of its choosing. Any participation by the Indemnified Party in accordance with the preceding sentence shall be at the Indemnified Party’s sole expense unless
(i) the Indemnifying Party and the Indemnified Party are both named parties to the proceedings and the Indemnified Party shall have reasonably concluded that representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them, or (ii) the Indemnified Party assumes the defense of a Third-Party Claim after the Indemnifying Party has failed to diligently pursue a Third-Party Claim it has assumed, as expressly
provided in the first sentence of Section 7.4(c). The Indemnifying Party shall not settle a Third-Party Claim without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed). 

(c) If the Indemnifying Party (i) elects not to defend the Indemnified Party against a Third-Party Claim, whether by not giving
the Indemnified Party timely notice of its desire to so defend or otherwise, or (ii) after assuming the defense of a Third-Party Claim, fails to take reasonable steps necessary to defend diligently such Third-Party Claim within [*] days after
receiving notice from the Indemnified Party to the effect that the Indemnifying Party has so failed, the Indemnified Party shall have the right (but not the obligation) to assume its own defense; it being understood that
the Indemnified Party’s right to indemnification for a Third-Party Claim shall not be adversely affected by assuming the defense of such Third-Party Claim. The Indemnified Party shall not settle a Third-Party Claim without the prior written
consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed). 
 (d) Except to the extent
of any actual or potential differing interests between the Indemnified Party and the Indemnifying Party referred to in Section 7.4(b)(i), the Indemnified Party and the Indemnifying Party shall cooperate in order to ensure the proper and
adequate defense of a Third-Party Claim, including by providing reasonable access to each other’s relevant business records and other documents and employees. 
 (e) The Indemnified Party and the Indemnifying Party shall use reasonable best efforts to avoid production of confidential information
(consistent with applicable Law), and to cause all communications among employees, counsel and others representing any party to a Third-Party Claim to be made so as to preserve any applicable attorney-client or work-product privileges. 

Section 7.5 Direct Claims. If an Indemnified Party wishes to make a claim for indemnification hereunder for a Loss that does not result
from a Third-Party Claim (a “Direct 

  

 –31– 

 
Claim”), other than those relating to Taxes (which are the subject of Section 5.5), the Indemnified Party shall notify the Indemnifying
Party of such Direct Claim, the amount or the estimated amount of damages sought thereunder to the extent then ascertainable (which estimate shall not be conclusive of the final amount of such Direct Claim), any other remedy sought thereunder, any
relevant time constraints relating thereto and, to the extent practicable, any other material details pertaining thereto. The Indemnifying Party shall have a period of [*] days within which to respond to such Direct Claim. If the Indemnifying Party
does not respond within such [*]-day period, the Indemnifying Party shall be deemed to have accepted the Direct Claim. If the Indemnifying Party rejects all or any part of the Direct Claim, the Indemnified Person shall be free to seek enforcement of
its rights to indemnification under this Agreement with respect to such Direct Claim. 
 Section 7.6 Consequential Damages.
Notwithstanding anything to the contrary contained herein, no Person shall be liable under this Article for any consequential, punitive, special, incidental or indirect damages, including lost profits. 
 Section 7.7 Adjustments to Losses. (a) Insurance. In calculating the amount of any Loss, the proceeds actually received by the
Indemnified Party or any of its Affiliates under any insurance policy or pursuant to any claim, recovery, settlement or payment by or against any other Person, in each case relating to a claim for indemnification hereunder, net of any actual costs,
expenses or insurance premiums incurred in connection with securing or obtaining such proceeds, shall be deducted, except to the extent that the adjustment itself would excuse, exclude or limit the coverage of all or part of such Loss. In the event
that an Indemnified Party has any rights against a third party with respect to any occurrence, claim or loss that results in a payment by an Indemnifying Party under this Article, such Indemnifying Party shall be subrogated to such rights to the
extent of such payment; provided, however, that, until the Indemnified Party recovers full payment of the Loss related to such occurrence, claim or loss, any and all claims of the Indemnifying Party against any such third party on
account of said indemnity payment are hereby expressly made subordinate and subject in right of payment to the Indemnified Party’s rights against such third party. Without limiting the generality or effect of any other provision hereof, each
Indemnified Party and Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the subrogation and subordination rights detailed herein, and otherwise cooperate in the prosecution of such
claims. 
 (b) Taxes. In calculating the amount of any Loss, there shall be deducted an amount equal to any net Tax
benefit actually realized (including the utilization of a Tax loss or Tax credit carried forward) as a result of such Loss by the party claiming such Loss. 
 (c) Reimbursement. If an Indemnified Party recovers an amount from a third party in respect of a Loss that is the subject of indemnification hereunder after all or a portion of such Loss has been paid by an
Indemnifying Party pursuant to this Article, the Indemnified Party shall promptly remit to the Indemnifying Party the excess, if any, of (i) the amount paid by the Indemnifying Party in respect of such Loss, plus the amount received from the
third party in respect thereof, less (ii) the full amount of such Loss; it being understood that in no event shall the Indemnified Party be required to remit to the Indemnifying Party any amount in excess of the
amount paid by the Indemnifying Party hereunder in respect of such Loss. 
  

 –32– 

 Section 7.8 Payments. The Indemnifying Party shall pay all amounts payable pursuant to this
Article, by wire transfer of immediately available funds, promptly following receipt from an Indemnified Party of a bill, together with all accompanying reasonably detailed back-up documentation, for a Loss that is the subject of indemnification
hereunder, unless the Indemnifying Party in good faith disputes the Loss, in which event it shall so notify the Indemnified Party. In any event, the Indemnifying Party shall pay to the Indemnified Party, by wire transfer of immediately available
funds, the amount of any Loss for which it is liable hereunder no later than three days following any Final Determination of such Loss and the Indemnifying Party’s liability therefor. 
 Section 7.9 Characterization of Indemnification Payments. All payments made by an Indemnifying Party to an Indemnified Party in respect of
any claim pursuant to Section 7.2 or 7.3 shall be treated as adjustments to the Purchase Price for Tax purposes. 
 Section 7.10
Mitigation. Each Indemnified Party shall use its commercially reasonable efforts to mitigate any indemnifiable Loss. In the event an Indemnified Party fails to so mitigate an indemnifiable Loss, the Indemnifying Party shall have no liability
for any portion of such Loss that reasonably could have been avoided had the Indemnified Person made such efforts. 
 Section 7.11
Exclusive Remedies. The remedies expressly provided in this Agreement shall constitute the sole and exclusive basis for and means of recourse between the Parties or their respective Indemnified Parties with respect to the subject matter
hereof, except to the extent any Loss arises out of or results from the intentional misrepresentation or willful misconduct of either Party. 
 Section 7.12 No Set-Off. Neither Seller nor Buyer shall have the right to deduct from amounts otherwise payable hereunder any amounts payable to such Party by the other Party or its Affiliates. 
 ARTICLE VIII 
 TERMINATION

 Section 8.1 Termination. This Agreement may be terminated at any time prior to [*]: 
 (a) by written agreement of Buyer and Seller; or 
 (b) by either Buyer or Seller, by giving notice of such termination to the other Party, if [*] shall not have occurred on or prior to [*],
so long as the terminating Party is not in material breach of its obligations under this Agreement. 
 Section 8.2 Effect of
Termination. In the event of the termination of this Agreement in accordance with Section 8.1, this Agreement shall thereafter become void and have no effect, and no Party shall have any liability to the other Party or its Affiliates, or
their respective directors, officers or employees, except for the obligations of the Parties contained in this Section and in Sections 5.9, 5.10, 9.1, 9.5, 9.7, 9.8, 9.9, 9.10, 9.11, 9.14 and 9.15 (and any related definitional provisions set
forth in Article I), and except that nothing in this Section shall relieve either Party from liability for any breach of this Agreement that arose prior to such termination, 

  

 –33– 

 
for which liability the provisions of Article VII shall remain in effect in accordance with the provisions and limitations of such Article. 

ARTICLE IX 
 MISCELLANEOUS 

 Section 9.1 Notices. Any notice required or permitted to be given by this Agreement shall be in writing, in English, and shall
be delivered by hand or overnight courier with tracking capabilities or mailed postage prepaid by registered or certified mail addressed as set forth below, unless changed by notice so given: 
  

 –34– 

 If to Seller: 
 Amgen Inc. 
 One Amgen Center Drive, 
 Thousand Oaks, CA 91320 
 USA 
 Attention: General Counsel 
 Telephone: +1-805-447-1000 
 Facsimile: +[*] 
 With a
copy to: 
 Sullivan & Cromwell LLP 
 125 Broad Street 
 New York, NY 10004 
 USA 
 Attention: Francis J. Aquila, Esq. 
 Telephone: +1 212 558 4048 
 Facsimile: +[*] 
 If to Buyer: 
 Takeda
Pharmaceutical Company Limited 
 1-1, Doshomachi, 4-chome 
 Chuo-ku, Osaka, 540-8645 
 Japan 
 Attention: Hiroshi Shinha 
 Telephone: [*] 
 Facsimile: +[*] 
 Any such notice shall be deemed given on the date delivered. A Party may add, delete (so long as at least one person or address
is remaining) or change the person or address to which notices should be sent at any time upon written notice delivered to the other Party in accordance with this Section. 
 Section 9.2 Waivers and Modifications. The failure of either Party to insist on the performance of any obligation hereunder shall not be
deemed to be a waiver of such obligation. Waiver of any breach of any provision hereof shall not be deemed to be a waiver of any other breach of such provision or any other provision on such occasion or any other occasion. No waiver, modification,
release or amendment of any right or obligation under or provision of this Agreement shall be valid or effective unless in writing and signed by both Parties. 
  

 –35– 

 Section 9.3 Assignment. Neither this Agreement nor any rights or obligations hereunder may be
assigned or otherwise transferred (whether by operation of Law, general succession or otherwise) by either Party without the prior written consent of the other Party, except as expressly provided in Section 9.6. Any assignment not in accordance
with this Agreement shall be void. Subject to the foregoing, the rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. 
 Section 9.4 Third-Party Beneficiaries. Except as expressly provided with respect to the Indemnified Parties in Article VII, there are no
third-party beneficiaries intended hereunder and no Person (other than Seller and Buyer) shall have any right or obligation hereunder. 
 Section 9.5 Entire Agreement. This Agreement, including its Exhibits and Schedules, together with the Ancillary Agreements, constitutes the entire agreement between the Parties as to the subject matter of this Agreement, and
supersedes and merges all prior negotiations, representations, agreements and understandings regarding the same, except for the Confidentiality Agreement, which shall remain in full force and effect until [*] (it being
understood that the obligations therein shall survive the termination of the Confidentiality Agreement in accordance with their respective terms). 
 Section 9.6 Affiliates. Seller shall have the right to exercise its rights and perform its obligations hereunder through its Affiliates; provided, however, that Seller shall be responsible
for such Affiliates’ performance hereunder. 
 Section 9.7 Expenses. Except as otherwise expressly provided in this
Agreement or any Ancillary Agreement, whether or not the transactions contemplated hereby or thereby are consummated, all costs and expenses incurred in connection with this Agreement or any Ancillary Agreement and the transactions contemplated
hereby or thereby shall be borne by the Party incurring such costs and expenses. 
 Section 9.8 Choice of Law. This Agreement
shall be governed by, and enforced and construed in accordance with, the Laws of the State of New York without regard to its conflicts of law provisions. 
 Section 9.9 Jurisdiction and Venue. Each Party hereby irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York or any New York State court
sitting in New York City (the “Chosen Courts”) for the purposes of any suit, action or other proceeding arising out of or relating to this Agreement or out of the transactions contemplated hereby. Each Party agrees that service of
any process, summons, notice or document by personal delivery, by registered mail, or by a recognized international express delivery service to such Party’s respective address set forth in Section 9.1 (as such address may be changed by
notice delivered pursuant to such Section) shall be effective service of process for any action, suit or proceeding in the applicable Chosen Court with respect to any matters to which it has submitted to jurisdiction in this Section. Each Party
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in the applicable Chosen Court, and hereby further irrevocably and
unconditionally waives and agrees not to plead or 

  

 –36– 

 
claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Any action brought
arising out of or relating to this Agreement or out of the transactions contemplated hereby shall be conducted in English. Notwithstanding the foregoing, either Party shall have the right to seek exigent, injunctive or temporary relief in any court
of competent jurisdiction. 
 Section 9.10 Waiver of Jury Trial. Each Party irrevocably waives any and all right to trial by jury
in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 
 Section 9.11
Counterparts. This Agreement may be executed in counterparts with the same effect as if both Parties had signed the same document. All such counterparts shall be deemed an original, shall be construed together and shall constitute one and the
same instrument. Signature pages of this Agreement may be exchanged by facsimile or other electronic means without affecting the validity thereof. 
 Section 9.12 Construction. (a) The definitions of the terms herein shall apply equally to the singular and plural forms of the terms defined. 
 (b) Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. 
 (c) The words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. 
 (d) The word “will” shall be construed to have the same meaning and effect as the
word “shall”. 
 (e) The Parties each acknowledge that they have had the advice of counsel with respect to this
Agreement, that this Agreement has been jointly drafted and that no rule of strict construction shall be applied in the interpretation hereof. 
 (f) Unless the context requires otherwise: 
 (i) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein or therein), 
 (ii) any reference to any Laws herein shall be construed as
referring to such Laws as from time to time enacted, repealed or amended, 
 (iii) any reference herein to any Person shall be
construed to include such Person’s permitted successors and assigns, 
  

 –37– 

 (iv) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, and 
 (v) all references herein to Articles, Sections, Exhibits or Schedules, unless otherwise expressly provided, shall be construed to refer to Articles, Sections, Exhibits or Schedules of this Agreement. 
 (g) This Agreement has been executed in English, and the English version of this Agreement shall control. 
 Section 9.13 Headings. Headings and captions are for convenience only and are not to be used in the interpretation of this Agreement.

 Section 9.14 Schedules. The disclosure of any matter in any Schedule to this Agreement shall be deemed to be a disclosure for
all purposes of this Agreement to which such matter could reasonably be expected to be pertinent, but shall not be deemed to constitute an admission by Seller or Buyer or to otherwise imply that any such matter is material for the purposes of this
Agreement. 
 Section 9.15 Severability. If any one or more of the provisions of this Agreement is held to be invalid or
unenforceable, the provision shall be considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall negotiate in good faith to replace any invalid or unenforceable provision with a valid
and enforceable one such that the objectives contemplated by the Parties when entering this Agreement may be realized. The invalidity or unenforceability of a provision in a particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. 
 (Signature page follows) 
  

 –38– 

 IN WITNESS WHEREOF, the Parties have executed or caused this Agreement to be executed as of the date
first written above. 
  

			
	AMGEN INC.
		
	By:	 	 /s/ Kevin W. Sharer

	Name:	 	Kevin W. Sharer
	Title:	 	Chairman of the Board, CEO and President
	
	TAKEDA PHARMACEUTICAL COMPANY LIMITED
		
	By:	 	 /s/ Yasuchika Hasegawa

	Name:	 	Yasuchika Hasegawa
	Title:	 	President

  

 –39–Registrant's 1999 Stock Incentive Plan, as amended

 Exhibit 10.1 
 QUEST SOFTWARE, INC. 
 1999 STOCK INCENTIVE PLAN 
 ARTICLE ONE 
 GENERAL PROVISIONS

  

	I.	PURPOSE OF THE PLAN 

 This 1999 Stock Incentive Plan
is intended to promote the interests of Quest Software, Inc., a California corporation, by providing eligible persons with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an
incentive for them to remain in the service of the Corporation. 
 Capitalized terms shall have the meanings assigned to such terms in the
attached Appendix. 
  

	II.	STRUCTURE OF THE PLAN 

 A. The Plan shall be
divided into four separate equity programs: 
 (i) the Discretionary Option Grant Program under which eligible persons
may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, 
 (ii) the
Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation
(or any Parent or Subsidiary), 
 (iii) the Automatic Option Grant Program under which eligible non-employee Board
members shall automatically receive options at periodic intervals to purchase shares of Common Stock, and 
 (iv) the
Director Fee Option Grant Program under which non-employee Board members may elect to have all or any portion of their annual retainer fee otherwise payable in cash applied to a special option grant. 
 B. The provisions of Articles One and Six shall apply to all equity programs under the Plan and shall govern the interests of all persons under
the Plan. 
  

	III.	ADMINISTRATION OF THE PLAN 

 A. The following
provisions shall govern the administration of the Plan: 
 (i) The Board shall have the authority to administer the
Discretionary Option Grant and Stock Issuance Programs with respect to Section 16 Insiders but may delegate such authority in whole or in part to the Primary Committee. 

 (ii) Administration of the Discretionary Option Grant and Stock Issuance Programs
with respect to all other persons eligible to participate in those programs may, at the Board’s discretion, be vested in the Primary Committee or a Secondary Committee, or the Board may retain the power to administer those programs with respect
to all such persons. 
 (iii) Administration of the Automatic Option Grant Program shall be self-executing in
accordance with the terms of that program. 
 B. Each Plan Administrator shall, within the scope of its administrative jurisdiction
under the Plan, have full power and authority subject to the provisions of the Plan: 
 (i) to establish such rules as
it may deem appropriate for proper administration of the Plan, to make all factual determinations, to construe and interpret the provisions of the Plan and the awards thereunder and to resolve any and all ambiguities thereunder; 
 (ii) to determine, with respect to awards made under the Discretionary Option Grant and Stock Issuance Programs, which eligible
persons are to receive such awards, the time or times when such awards are to be made, the number of shares to be covered by each such award, the vesting schedule (if any) applicable to the award, the status of a granted option as either an
Incentive Option or a Non-Statutory Option and the maximum term for which the option is to remain outstanding; 
 (iii)
to amend, modify or cancel any outstanding award with the consent of the holder or accelerate the vesting of such award; and 
 (iv) to take such other discretionary actions as permitted pursuant to the terms of the applicable program. 
 Decisions of each Plan
Administrator within the scope of its administrative functions under the Plan shall be final and binding on all parties. 
 C. Members
of the Primary Committee or any Secondary Committee shall serve for such period of time as the Board may determine and may be removed by the Board at any time. The Board may also at any time terminate the functions of any Secondary Committee and
reassume all powers and authority previously delegated to such committee. 
 D. Service on the Primary Committee or the Secondary
Committee shall constitute service as a Board member, and members of each such committee shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good faith with respect to the Plan or any options or stock issuances under the Plan. 

	IV.	ELIGIBILITY 

 A. The persons eligible to
participate in the Discretionary Option Grant and Stock Issuance Programs are as follows: 
 (i) Employees, 

(ii) non-employee members of the Board or the board of directors of any Parent or Subsidiary, and 
 (iii) consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 

B. Only non-employee Board members shall be eligible to participate in the Automatic Option Grant and Director Fee Option Grant Programs.

  

	V.	STOCK SUBJECT TO THE PLAN 

 A. The stock
issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the Corporation on the open market. The maximum number of shares of Common Stock reserved for issuance over the term of
the Plan shall not exceed 28,500,000 shares. 
 B. No one person participating in the Plan may receive options, separately exercisable
stock appreciation rights and direct stock issuances for more than One Million (1,000,000) shares of Common Stock in the aggregate per calendar year, beginning with the 1999 calendar year. 
 C. Shares of Common Stock subject to outstanding options (including options incorporated into this Plan from the Predecessor Plan) shall be
available for subsequent issuance under the Plan to the extent those options expire, terminate or are cancelled for any reason prior to exercise in full. Unvested shares issued under the Plan and subsequently repurchased by the Corporation, at the
original exercise or issue price paid per share, pursuant to the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available
for reissuance through one or more subsequent options or direct stock issuances under the Plan. However, should the exercise price of an option under the Plan be paid with shares of Common Stock or should shares of Common Stock otherwise issuable
under the Plan be withheld by the Corporation in satisfaction of the withholding taxes incurred in connection with the exercise of an option or the vesting of a stock issuance under the Plan, then the number of shares of Common Stock available for
issuance under the Plan shall be reduced by the gross number of shares for which the option is exercised or which vest under the stock issuance, and not by the net number of shares of Common Stock issued to the holder of such option or stock
issuance. Shares of Common Stock underlying one or more stock appreciation rights exercised under the Plan shall not be available for subsequent issuance. 

 D. If any change is made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum
number and/or class of securities issuable under the Plan, (ii) the number and/or class of securities for which any one person may be granted options, separately exercisable stock appreciation rights and direct stock issuances under the Plan
per calendar year, (iii) the number and/or class of securities for which grants are subsequently to be made under the Automatic Option Grant Program to new and continuing non-employee Board members, (iv) the number and/or class of
securities and the exercise price per share in effect under each outstanding option under the Plan and (v) the number and/or class of securities and price per share in effect under each outstanding option incorporated into this Plan from the
Predecessor Plan. Such adjustments to the outstanding options are to be effected in a manner which shall preclude the enlargement or dilution of rights and benefits under such options. The adjustments determined by the Plan Administrator shall be
final, binding and conclusive. 
 ARTICLE TWO 
 DISCRETIONARY OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

 Each option shall be evidenced by one
or more documents in the form approved by the Plan Administrator; provided, however, that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to
the provisions of the Plan applicable to such options. 
 A. Exercise Price. 
 1. The exercise price per share shall be fixed by the Plan Administrator at the time of the option grant, provided that the
exercise price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 
 2. The exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section II
of Article Six and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the exercise
price may also be paid as follows: 
 (i) shares of Common Stock held for the requisite period necessary to avoid any
additional charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 
 (ii) to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable instructions to (a) a
Corporation-approved brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the
purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and (b) the Corporation to deliver the certificates for the purchased shares
directly to such brokerage firm in order to complete the sale. 

 Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for
the purchased shares must be made on the Exercise Date. 
 B. Exercise and Term of Options. Each option shall be
exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option. However, no option shall have a term in excess of ten
(10) years measured from the option grant date. 
 C. Cessation of Service. 
 1. The following provisions shall govern the exercise of any options outstanding at the time of the Optionee’s cessation of
Service or death: 
 (i) Any option outstanding at the time of the Optionee’s cessation of Service for any reason
shall remain exercisable for such period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option, but no such option shall be exercisable after the expiration of the option term.

 (ii) Any option exercisable in whole or in part by the Optionee at the time of death may be subsequently exercised
by his or her Beneficiary. 
 (iii) During the applicable post-Service exercise period, the option may not be exercised
in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the
option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate and cease to be
outstanding to the extent the option is not otherwise at that time exercisable for vested shares. 
 (iv) Should the
Optionee’s Service be terminated for Misconduct or should the Optionee engage in Misconduct while his or her options are outstanding, then all such options shall terminate immediately and cease to be outstanding. 
 2. The Plan Administrator shall have complete discretion, exercisable either at the time an option is granted or at any time while
the option remains outstanding: 
 (i) to extend the period of time for which the option is to remain exercisable
following the Optionee’s cessation of Service to such period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 
 (ii) to permit the option to be exercised, during the applicable post-Service exercise period, for one or more additional
installments in which the Optionee would have vested had the Optionee continued in Service. 

 D. Shareholder Rights. The holder of an option shall have no shareholder rights with
respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares. 
 E. Repurchase Rights. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of
Common Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 F. Vesting Period of Certain Grants. Options granted under the Plan to the Chief Executive Officer of
the Company or Chairman of the Board of Directors shall be subject to a minimum vesting period and shall vest as follows: not more than twenty percent (20%) of any shares of Common Stock subject to an option shall vest after the first year
following the date of grant and not more than ten percent (10%) after every six-month period thereafter, provided, however, the Compensation Committee shall have the authority, in its sole discretion, to reduce the minimum vesting period
provided in this Article Two, Section I.F. Notwithstanding the foregoing, at such time as the Chairman is Independent, the minimum vesting period required by this Article Two, Section I.F. shall not apply to options granted to such Chairman.

 G. Limited Transferability of Options. During the lifetime of the Optionee, Incentive Options shall be
exercisable only by the Optionee and shall not be assignable or transferable other than to a Beneficiary following the Optionee’s death. 
  

	II.	INCENTIVE OPTIONS 

 The terms specified below shall
be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles One, Two and Six shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory
Options when issued under the Plan shall not be subject to the terms of this Section II. 
 A. Eligibility.
Incentive Options may only be granted to Employees. 
 B. Exercise Price. The exercise price per share shall
not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 
 C.
Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds
two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such
options are granted. 

 D. 10% Shareholder. If any Employee to whom an Incentive Option is granted is
a 10% Shareholder, then the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option term shall not exceed five (5) years
measured from the option grant date. 
  

	III.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. Each
option outstanding at the time of a Change in Control but not otherwise fully-vested shall automatically accelerate so that each such option shall, immediately prior to the effective date of the Change in Control, become exercisable for all of the
shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested shares of Common Stock. However, an outstanding option shall not so accelerate if and to the extent: (i) such option
is, in connection with the Change in Control, assumed or otherwise continued in full force and effect by the successor corporation (or parent thereof) pursuant to the terms of the Change in Control, (ii) such option is replaced with a cash
incentive program of the successor corporation which preserves the spread existing at the time of the Change in Control on the shares of Common Stock for which the option is not otherwise at that time exercisable and provides for subsequent payout
in accordance with the same vesting schedule applicable to those option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant. Each option outstanding
at the time of the Change in Control shall terminate as provided in Section III.C. of this Article Two. 
 B. All outstanding
repurchase rights shall also terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the extent: (i) those repurchase rights are
assigned to the successor corporation (or parent thereof) or otherwise continue in full force and effect pursuant to the terms of the Change in Control or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan
Administrator at the time the repurchase right is issued. 
 C. Immediately following the consummation of the Change in Control, all
outstanding options shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise expressly continued in full force and effect pursuant to the terms of the Change in Control.

 D. Each option which is assumed in connection with a Change in Control shall be appropriately adjusted, immediately after such
Change in Control, to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control. Appropriate
adjustments to reflect such Change in Control shall also be made to (i) the exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same,
(ii) the maximum number and/or class of securities available for issuance over the remaining term of the Plan and (iii) the maximum number and/or class of securities for which any one person may be granted options, separately exercisable
stock appreciation rights and direct stock issuances under the Plan per calendar year. 

 E. The Plan Administrator may at any time provide that one or more options will automatically
accelerate in connection with a Change in Control, whether or not those options are assumed or otherwise continued in full force and effect pursuant to the terms of the Change in Control. Any such option shall accordingly become exercisable,
immediately prior to the effective date of such Change in Control, for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested shares of Common Stock. In addition, the
Plan Administrator may at any time provide that one or more of the Corporation’s repurchase rights shall not be assignable in connection with such Change in Control and shall terminate upon the consummation of such Change in Control.

 F. The Plan Administrator may at any time provide that one or more options will automatically accelerate upon an Involuntary
Termination of the Optionee’s Service within a designated period (not to exceed eighteen (18) months) following the effective date of any Change in Control in which those options do not otherwise accelerate. Any options so accelerated
shall remain exercisable for fully-vested shares until the earlier of (i) the expiration of the option term or (ii) the expiration of the one (1) year period measured from the effective date of the Involuntary Termination. In
addition, the Plan Administrator may at any time provide that one or more of the Corporation’s repurchase rights shall immediately terminate upon such Involuntary Termination. 
 G. The Plan Administrator may at any time provide that one or more options will automatically accelerate in connection with a Hostile Take-Over.
Any such option shall become exercisable, immediately prior to the effective date of such Hostile Take-Over, for all of the shares of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. In addition, the Plan Administrator may at any time provide that one or more of the Corporation’s repurchase rights shall terminate automatically upon the consummation of such Hostile Take-Over. Alternatively, the Plan
Administrator may condition such automatic acceleration and termination upon an Involuntary Termination of the Optionee’s Service within a designated period (not to exceed eighteen (18) months) following the effective date of such Hostile
Take-Over. Each option so accelerated shall remain exercisable for fully-vested shares until the expiration or sooner termination of the option term. 
 H. The portion of any Incentive Option accelerated in connection with a Change in Control or Hostile Take Over shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred
Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws. 
  

	IV.	STOCK APPRECIATION RIGHTS 

 The Plan Administrator
may, subject to such conditions as it may determine, grant to selected Optionees stock appreciation rights which will allow the holders of those rights to elect between the exercise of the underlying option for shares of Common Stock and the
surrender of that option in exchange for a distribution from the Corporation in an amount equal to the excess of (a) the Option Surrender Value of the number of shares for which the option is surrendered over (b) the aggregate exercise
price payable for such shares. The distribution may be made in shares of Common Stock valued at Fair Market Value on the option surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion
deem appropriate. 

 ARTICLE THREE 
 STOCK ISSUANCE PROGRAM 
  

	I.	STOCK ISSUANCE TERMS 

 Shares of Common Stock may be
issued under the Stock Issuance Program through direct and immediate issuances without any intervening options. Shares of Common Stock may also be issued under the Stock Issuance Program pursuant to share right awards or restricted stock units,
awarded by and at the discretion of the Plan Administrator, that entitle the recipients to receive the shares underlying those awards or units upon the attainment of designated performance goals or Service requirements or upon the expiration of a
designated time period following the vesting of those awards or units. Each such award shall be evidenced by one or more documents which comply with the terms specified below. 
 A. Purchase Price. 
 1. The purchase price per share of Common Stock subject to direct issuance shall be fixed by the Plan Administrator. 
 2. Subject to the provisions of Section II of Article Six, shares of Common Stock may be issued under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator may
deem appropriate in each individual instance: 
 (i) cash or check made payable to the Corporation, or 
 (ii) past services rendered to the Corporation (or any Parent or Subsidiary). 
 B. Vesting/Issuance Provisions. 
 1. The Plan Administrator may issue shares of Common Stock which are fully and immediately vested upon issuance or which are to
vest in one or more installments over the Participant’s period of Service or upon attainment of specified performance objectives. Alternatively, the Plan Administrator may issue share right awards or restricted stock units that entitle the
recipients to receive the shares underlying those awards and/or units upon the attainment of one or more performance goals or Service requirements established by the Plan Administrator or upon the expiration of a designated time period following the
vesting of those awards or units, including (without limitation) a deferred distribution date following the termination of the Participant’s Service. 
 2. Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the Participant may have the right to receive with respect to his or her
unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of
consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 

 3. The Participant shall have full shareholder rights with respect to the issued
shares of Common Stock, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. The Participant
shall not have any shareholder rights with respect to the shares of Common Stock subject to a restricted stock unit or share right award until that award vests and the shares of Common Stock are actually issued thereunder. However,
dividend-equivalent units may be paid or credited, either in cash or in actual or phantom shares of Common Stock, on outstanding restricted stock unit or share right awards, subject to such terms and conditions as the Plan Administrator may deem
appropriate. 
 4. Should the Participant cease to remain in Service while holding one or more unvested shares of
Common Stock, or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall
have no further shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the Participant’s purchase-money
indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to the
surrendered shares. 
 5. The Plan Administrator may waive the surrender and cancellation of one or more unvested
shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the cessation of the Participant’s Service or the non-attainment of the performance objectives applicable to those shares. Such waiver shall result
in the immediate vesting of the Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service or the attainment
or non-attainment of the applicable performance objectives. 
 6. Outstanding share right awards or restricted stock
units under the Stock Issuance Program shall automatically terminate, and no shares of Common Stock shall actually be issued in satisfaction of those awards or units, if the performance goals or Service requirements established for such awards or
units are not attained or satisfied. The Plan Administrator, however, shall have the authority to issue shares of Common Stock in satisfaction of one or more outstanding share right awards or restricted stock units as to which the designated
performance goals or Service requirements are not attained. 

	II.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. All
of the Corporation’s outstanding repurchase rights shall terminate automatically, and all the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the extent
(i) those repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise continue in full force and effect pursuant to the terms of the Change in Control or (ii) such accelerated vesting is precluded by other
limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
 B. Any outstanding award under the Stock
Issuance Program may be assumed by the successor corporation (or parent thereof) or otherwise continued in full force and effect or may be replaced with a cash incentive program of the successor corporation (or parent thereof) which preserves the
Fair Market Value of any shares of Common Stock underlying such award at the time of the Change in Control and provides for subsequent payout of that value in accordance with the vesting schedule applicable to the award. No accelerated vesting of
the award shall occur in the event of such assumption or continuation of the award or such replacement of the award with a cash incentive program. 
 C. Each outstanding award under the Stock Issuance Program that is assumed in connection with a Change in Control or otherwise continued in effect shall be adjusted immediately after the consummation of that Change in Control to
apply to the number and class of securities into which the shares of Common Stock subject to the award immediately prior to the Change in Control would have been converted in consummation of such Change in Control had those shares actually been
outstanding at that time, and appropriate adjustments shall also be made to the cash consideration (if any) payable per share thereunder, provided the aggregate amount of such consideration shall remain the same. Unless otherwise provided by an
award agreement between the Company and a Participant, if any outstanding award is not so assumed or otherwise continued in effect or replaced with a cash retention program that preserves the Fair Market Value of the shares underlying the award at
the time of the Change in Control and provides for the subsequent payout of that value in accordance with the vesting schedule in effect for the award at the time of such Change in Control, such award shall vest, and the shares of Common Stock
subject to that Award shall be issued as fully-vested shares, immediately prior to the consummation of the Change in Control. 
 D.
The Plan Administrator may at any time structure one or more unvested awards under the Stock Issuance program so that the shares of Common Stock subject to those awards shall automatically vest (or vest and become issuable) in whole or in part
immediately upon (i) a Change in Control or Hostile Take-Over or (ii) an Involuntary Termination of the Participant’s Service within a designated period (not to exceed eighteen (18) months) following the effective date of any
Change in Control or Hostile Take-Over. 
  

	III.	SHARE ESCROW/LEGENDS 

 Unvested shares may, in the
Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested
shares. 

 ARTICLE FOUR 
 AUTOMATIC OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

 A. Grant
Dates. Options shall be made on the dates specified below: 
 1. Previously Scheduled Initial
Options. Each individual who is first elected or appointed as a non-employee Board member at any time after the Underwriting Date and continuing through March 15, 2008 shall automatically be granted, on the date of such initial election or
appointment, a Non-Statutory Option to purchase Fifty Thousand (50,000) shares of Common Stock (a “Previously Scheduled Initial Option”), provided that individual has not previously been in the employ of the Corporation (or any
Parent or Subsidiary). 
 2. New Initial Options. Each individual who is first elected or appointed as a
non-employee Board member at any time after March 15, 2008 shall automatically be granted, on the date of such initial election or appointment, a Non-Statutory Option to purchase Forty Thousand (40,000) shares of Common Stock (a
“New Initial Option”), provided that individual has not previously been in the employ of the Corporation (or any Parent or Subsidiary). 
 3. Previously Scheduled Annual Options. On the date of each Annual Shareholders Meeting beginning with the 2001 Annual Shareholder Meeting and continuing through March 15, 2008, each individual who
has served as a non-employee Board member since the date of the Annual Shareholders Meeting in the immediately preceding year shall automatically be granted a Non-Statutory Option to purchase Fifteen Thousand (15,000) shares of Common Stock (a
“Previously Scheduled Annual Option”). 
 4. Transitional Annual Options. On July 1, 2008,
each individual who has served as a non-employee Board member since the first business day in July 2007, shall automatically be granted a Non-Statutory Option to purchase Thirty Thousand (30,000) shares of Common Stock (a “Transitional
Annual Option”). Notwithstanding the foregoing, no Transitional Annual Option shall be granted if the Company’s shareholders approve the Company’s 2008 Stock Incentive Plan at the 2008 Annual Meeting of Shareholders. 

5. New Annual Options. On the first business day in January of each year, beginning on January 2, 2009, each
individual who has served as a non-employee Board member since the first business day in January of the previous year shall automatically be granted a Non-Statutory Option to purchase Twenty Thousand (20,000) shares of Common Stock (a
“New Annual Option”). Notwithstanding the foregoing, no New Annual Option shall be granted if the Company’s shareholders approve the Company’s 2008 Stock Incentive Plan at the 2008 Annual Meeting of Shareholders.

 B. Exercise Price. 
 1. The exercise price per share shall be equal to one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 

 2. The exercise price shall be payable in one or more of the alternative forms
authorized under the Discretionary Option Grant Program. Except to the extent the sale and remittance procedure specified thereunder is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 

C. Option Term. Each option shall have a term of ten (10) years measured from the option grant date. 
 D. Exercise and Vesting of Options. Each option shall be immediately exercisable for any or all of the option shares.
However, any shares purchased under a Previously Scheduled Initial Option or New Initial Option shall be subject to repurchase by the Corporation, at the exercise price paid per share, upon the Optionee’s cessation of Board service prior to
vesting in those shares. Each Previously Scheduled Initial Option and New Initial Option shall vest, and the Corporation’s repurchase right shall lapse, in a series of four (4) successive equal annual installments over the Optionee’s
period of continued service as a Board member, with the first such installment to vest upon the Optionee’s completion of one (1) year of Board service measured from the option grant date. Each Previously Scheduled Annual Option,
Transitional Annual Option, and New Annual Option shall be fully vested at the time of grant. 
 E. Cessation of Board
Service. The following provisions shall govern the exercise of any options outstanding at the time of the Optionee’s cessation of Board service: 
 (i) Any option outstanding at the time of the Optionee’s cessation of Board service for any reason shall remain exercisable
for a twelve (12)-month period following the date of such cessation of Board service, but in no event shall such option be exercisable after the expiration of the option term. 
 (ii) Any option exercisable in whole or in part by the Optionee at the time of death may be subsequently exercised by his or her
Beneficiary. 
 (iii) Following the Optionee’s cessation of Board service, the option may not be exercised in the
aggregate for more than the number of shares for which the option was exercisable on the date of such cessation of Board service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the
option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Board service, terminate and cease to be outstanding
for any and all shares for which the option is not otherwise at that time exercisable. 
 (iv) However, should the
Optionee cease to serve as a Board member by reason of death or Permanent Disability, then all shares at the time subject to the option shall immediately vest so that such option may, during the twelve (12)-month exercise period following such
cessation of Board service, be exercised for all or any portion of those shares as fully-vested shares of Common Stock. 

	II.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. In the event of any Change in Control or Hostile Take-Over, the shares of Common Stock at the time subject to each outstanding option but not otherwise vested shall automatically vest in full so that each such option may,
immediately prior to the effective date of such Change in Control or Hostile Take-Over, became fully exercisable for all of the shares of Common Stock at the time subject to such option and maybe exercised for all or any of those shares as
fully-vested shares of Common Stock. Each such option accelerated in connection with a Change in Control shall terminate upon the Change in Control, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued
in full force and effect pursuant to the terms of the Change in Control. Each such option accelerated in connection with a Hostile Take-Over shall remain exercisable until the expiration or sooner termination of the option term. 
 B. All outstanding repurchase rights shall automatically terminate and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Change in Control or Hostile Take-Over. 
 C. Upon the occurrence of a Hostile
Take-Over, the Optionee shall have a thirty (30)-day period in which to surrender to the Corporation each of his or her outstanding options. The Optionee shall in return be entitled to a cash distribution from the Corporation in an amount equal to
the excess of (i) the Option Surrender Value of the shares of Common Stock at the time subject to each surrendered option (whether or not the option is otherwise at the time exercisable for those shares) over (ii) the aggregate exercise
price payable for such shares. Such cash distribution shall be paid within five (5) days following the surrender of the option to the Corporation. 
 D. Each option which is assumed in connection with a Change in Control shall be appropriately adjusted to apply to the number and class of securities which would have been issuable to the Optionee in
consummation of such Change in Control had the option been exercised immediately prior to such Change in Control. Appropriate adjustments shall also be made to the exercise price payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the same. 
  

	III.	REMAINING TERMS 

 The remaining terms of each option
granted under the Automatic Option Grant Program shall be the same as the terms in effect for options made under the Discretionary Option Grant Program. 
 ARTICLE FIVE 
 DIRECTOR FEE OPTION GRANT PROGRAM 
  

	I.	OPTION GRANTS 

 The Board implemented the Director
Fee Option Grant Program as of January 1, 2004. Each non-employee Board member may elect to apply all or any portion of the annual retainer fee otherwise payable in cash for his or her service on the Board or any Board committee to the
acquisition of a special option grant under this Director Fee Option Grant Program. Such election must be filed with the Corporation’s Secretary prior to the first day of the 12-month period (July 1 to June 30 of the following year) for
which the election is to be in effect. Each non-employee Board member who files such a timely election shall automatically be granted an 

 
option under this Director Fee Option Grant Program on the first trading day in July in the 12-month period for which that fee would otherwise be payable.
For purposes of this Program, an “annual retainer fee” means the amount to which a non-employee director will be entitled to receive for serving as a director or a member of a standing committee of the Board in a relevant 12-month period,
including service on any Board committee, but shall not include reimbursement of expenses, fees determined on a per-meeting attended basis, or fees with respect to any other services provided or to be provided to the Corporation. 
  

	II.	OPTION TERMS 

 Each option shall be a Non-Statutory
Option governed by the terms and conditions specified below. 
 A. Exercise Price. 
 1. The exercise price per share shall be the Fair Market Value per share of Common Stock on the option grant date. 
 2. The exercise price shall become immediately due upon exercise of the option and shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program. Except to the extent the sale and remittance procedure specified thereunder is utilized, payment of the exercise price for the purchased shares must be made on the Exercise
Date. 
 B. Number of Option Shares. The number of shares of Common Stock subject to the option shall be an
amount necessary to make such option equal in value, using a modified Black-Scholes option valuation model, to that the portion of the annual retainer fee that the non-employee director elected to receive in the form of an option. The value of the
option will be calculated by assuming that the value of an option to purchase one share of Common Stock equals the product of (i) a fraction determined by dividing one (1) by the Multiplier (as defined below) and (ii) the fair Market
Value of a share of Common Stock on the option grant date. 
 The number of shares represented by an option granted pursuant to the Director
Fee Option Grant Program shall be determined by (a) dividing the amount of the annual retainer that the non-employee director elects to receive in the form of options by the Fair Market Value of a share of Common Stock on the date of grant, and
(b) multiplying the quotient so obtained by a multiplier determined using a modified Black-Scholes option valuation method (the “Multiplier”). The Board or the Plan Administrator shall determine the Multiplier prior to the
beginning of a relevant 12-month period by considering the following factors: (i) the Fair Market Value of the Common Stock on the date the Multiplier is determined; (ii) the average length of time the stock options of the Corporation are
held by optionees prior to exercise; (iii) the risk-free rate of return based on the term determined in (ii) above and U.S. government securities rates; (iv) the annual dividend yield for the Common stock, if any; and (v) the
volatility of the Common Stock over the previous two-year period. The number of shares to be subject to the option shall be equal to the largest number of whole shares determined as follows: 
  

			
	Amount of Retainer	  	 X Multiplier =

	Fair Market Value on Grant Date	  	 Number of Shares

 C. Exercise and Term of Options. The option shall become exercisable in a
series of twelve (12) successive equal monthly installments upon the Optionee’s completion of each month of Board service during the calendar year in which the option is granted. Each option shall have a maximum term of ten (10) years
measured from the option grant date. 
 D. Cessation of Board Service. Should the Optionee cease Board service for any
reason (other than death or Permanent Disability) while holding one or more options, then each such option shall remain exercisable, for any or all of the shares for which the option is exercisable at the time of such cessation of Board service,
until the earlier of (i) the expiration of the ten (10)-year option term or (ii) the expiration of the three (3)-year period measured from the date of such cessation of Board service. However, each option held by the Optionee at the
time of such cessation of Board service shall immediately terminate and cease to remain outstanding with respect to any and all shares of Common Stock for which the option is not otherwise at that time exercisable. 
 E. Death or Permanent Disability. Should the Optionee’s service as a Board member cease by reason of death or Permanent
Disability, then each option held by such Optionee shall immediately become exercisable for all the shares of Common Stock at the time subject to that option, and the option may be exercised for any or all of those shares as fully-vested shares
until the earlier of (i) the expiration of the ten (10)-year option term or (ii) the expiration of the three (3)-year period measured from the date of such cessation of Board service. 
 Should the Optionee die after cessation of Board service but while holding one or more options, then each such option may be exercised, for any or all of
the shares for which the option is exercisable at the time of the Optionee’s cessation of Board service (less any shares subsequently purchased by Optionee prior to death), by the Optionee’s Beneficiary. Such right of exercise shall lapse,
and the option shall terminate, upon the earlier of (i) the expiration of the ten (10)-year option term or (ii) the three (3)-year period measured from the date of the Optionee’s cessation of Board service. 
  

	III.	CHANGE IN CONTROL/HOSTILE TAKE-OVER 

 A. In
the event of any Change in Control or Hostile Take-Over while the Optionee remains in Board service, each outstanding option held by such Optionee shall automatically accelerate so that each such option shall, immediately prior to the effective date
of the Change in Control or Hostile Take-Over, become fully exercisable with respect to the total number of shares of Common Stock at the time subject to such option and may be exercised for any or all of those shares as fully-vested shares of
Common Stock. Each such option accelerated in connection with a Change in Control shall terminate upon the Change in Control, except to the extent assumed by the successor corporation (or parent thereof) or otherwise expressly continued in full
force and effect pursuant to the terms of the Change in Control. Each such option accelerated in connection with a Hostile Take-Over shall remain exercisable until the expiration or sooner termination of the option term. 

 B. Upon the occurrence of a Hostile Take-Over, the Optionee shall have a thirty (30)-day period in
which to surrender to the Corporation each of his or her outstanding options. The Optionee shall in return be entitled to a cash distribution from the Corporation in an amount equal to the excess of (i) the Option Surrender Value of the shares
of Common Stock at the time subject to each surrendered option (whether or not the Optionee is otherwise at the time vested in those shares) over (ii) the aggregate exercise price payable for such shares. Such cash distribution shall be paid
within five (5) days following the surrender of the option to the Corporation. 
  

	IV.	REMAINING TERMS 

 The remaining terms of each option
granted under this Director Fee Option Grant Program shall be the same as the terms in effect for options made under the Discretionary Option Grant Program. 
 ARTICLE SIX 
 MISCELLANEOUS 
  

	I.	NO IMPAIRMENT OF AUTHORITY 

 Outstanding awards
shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

  

	II.	FINANCING 

 The Plan Administrator may permit any
Optionee or Participant to pay the option exercise price under the Discretionary Option Grant Program or the purchase price of shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in
one or more installments. The terms of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. In no event may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the purchased shares plus (ii) any Federal, state and local income and employment tax liability incurred by the Optionee or the
Participant in connection with the option exercise or share purchase. 
  

	III.	TAX WITHHOLDING 

 A. The Corporation’s
obligation to deliver shares of Common Stock upon the exercise of options or the issuance or vesting of such shares under the Plan shall be subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding
requirements. 

 B. The Plan Administrator may, in its discretion, provide any or all holders of Non - Statutory
Options or unvested shares of Common Stock under the Plan with the right to use shares of Common Stock in satisfaction of all or part of the Withholding Taxes incurred by such holders in connection with the exercise of their options or the vesting
of their shares. Such right may be provided to any such holder in either or both of the following formats: 
 Stock
Withholding: The election to have the Corporation withhold, from the shares of Common Stock otherwise issuable upon the exercise of such Non-Statutory Option or the vesting of such shares, a portion of those shares with an aggregate Fair Market
Value equal to the percentage of the Withholding Taxes (not to exceed one hundred percent (100%)) designated by the holder. 
 Stock Delivery: The election to deliver to the Corporation, at the time the Non-Statutory Option is exercised or the shares vest, one or more shares of Common Stock previously acquired by such holder (other than in connection with
the option exercise or share vesting triggering the Withholding Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes (not to exceed one hundred percent (100%)) designated by the holder. 
  

	V.	EFFECTIVE DATE AND TERM OF THE PLAN 

 A. The
Plan shall become effective immediately upon the Plan Effective Date. However, the Director Fee Option Grant Program shall not be implemented until such time as the Primary Committee or the Board may deem appropriate. Options may be granted under
the Discretionary Option Grant Program at any time on or after the Plan Effective Date. However, no options granted under the Plan may be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation’s
shareholders. If such shareholder approval is not obtained within twelve (12) months after the Plan Effective Date, then all options previously granted under this Plan shall terminate and cease to be outstanding, and no further options shall be
granted and no shares shall be issued under the Plan. 
 B. The Plan shall serve as the successor to the Predecessor Plan, and no
further options or direct stock issuances shall be made under the Predecessor Plan after the Section 12 Registration Date. All options outstanding under the Predecessor Plan on the Section 12 Registration Date shall be incorporated into
the Plan at that time and shall be treated as outstanding options under the Plan. However, each outstanding option so incorporated shall continue to be governed solely by the terms of the documents evidencing such option, and no provision of the
Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such incorporated options with respect to their acquisition of shares of Common Stock. 
 C. One or more provisions of the Plan, including (without limitation) the option/vesting acceleration provisions of Article Two relating to
Changes in Control, may, in the Plan Administrator’s discretion, be extended to one or more options incorporated from the Predecessor Plan which do not otherwise contain such provisions. 

 D. The Plan shall terminate upon the earliest of: (i) June 8, 2009, (ii) the
date on which all shares available for issuance under the Plan shall have been issued as fully-vested shares, (iii) the termination of all outstanding options in connection with a Change in Control, or (iv) July 1, 2008 if the
Company’s shareholders approve the Company’s 2008 Stock Incentive Plan at the 2008 Annual Meeting of Shareholders. Upon such plan termination, no additional stock awards will be granted under this Plan, but all outstanding stock awards
shall thereafter continue to have force and effect in accordance with the provisions of the documents evidencing such grants. 
  

	VI.	AMENDMENT OF THE PLAN 

 A. The Board shall
have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to stock options or unvested stock
issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition, certain amendments may require shareholder approval pursuant to applicable laws or regulations.

 B. Options to purchase shares of Common Stock may be granted under the Discretionary Option Grant Program and shares of Common
Stock may be issued under the Stock Issuance Program that are in each instance in excess of the number of shares then available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow
until there is obtained shareholder approval of an amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such shareholder approval is not obtained within twelve (12) months after the
date the first such excess issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the
Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall
thereupon be automatically cancelled and cease to be outstanding. 
  

	VII.	USE OF PROCEEDS 

 Any cash proceeds received by the
Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
  

	VIII.	  REGULATORY APPROVALS 

 A. The
implementation of the Plan, the granting of any stock option under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any granted option or (ii) under the Stock Issuance Program shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the stock options granted under it and the shares of Common Stock issued pursuant to it. 
 B. No shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance with
all applicable requirements of Federal and state securities laws, including the filing and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the Plan, and all applicable listing requirements of any
stock exchange or established market on which Common Stock is then listed for trading. 

	IX.	NO EMPLOYMENT/SERVICE RIGHTS 

 Nothing in the Plan
shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause. 
 APPENDIX 
 The following definitions shall be
in effect under the Plan: 
 A. Automatic Option Grant Program shall mean the automatic option grant program in effect
under the Plan. 
 B. Beneficiary shall mean, in the event the Plan Administrator implements a beneficiary designation
procedure, the person designated by an Optionee or Participant, pursuant to such procedure, to succeed to such person’s rights under any outstanding awards held by him or her at the time of death. In the absence of such designation or
procedure, the Beneficiary shall be the personal representative of the estate of the Optionee or Participant or the person or persons to whom the award is transferred by will or the laws of descent and distribution. 
 C. Board shall mean the Corporation’s Board of Directors. 
 D. Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 
 (i) a merger, consolidation or reorganization approved by the Corporation’s shareholders, unless
securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the
same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, 
 (ii) any shareholder-approved transfer or other disposition of all or substantially all of the Corporation’s assets, or 
 (iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board recommends such shareholders accept. 
 E. Code shall mean the Internal Revenue Code of 1986, as amended. 

 F. Common Stock shall mean the Corporation’s common stock. 
 G. Compensation Committee shall mean the Compensation Committee of the Corporation. 
 H. Corporation shall mean Quest Software, Inc., a California corporation, and any corporate successor to all or substantially all of
the assets or voting stock of Quest Software, Inc. which shall by appropriate action adopt the Plan. 
 I. Director Fee Option
Grant Program shall mean the director fee option grant program in effect under the Plan. 
 J. Discretionary Option
Grant Program shall mean the discretionary option grant program in effect under the Plan. 
 K. Employee shall
mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 L. Exercise Date shall mean the date on which the Corporation shall have received written notice of the option exercise. 

M. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 
 (i) If the Common Stock is at the time traded on the Nasdaq Capital Market, then the Fair Market Value
shall be the closing selling price per share of Common Stock on the date in question, as such price is reported on the Nasdaq Capital Market or any successor system. If there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan
Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (iii)
For purposes of any option grants made on the Underwriting Date, the Fair Market Value shall be deemed to be equal to the price per share at which the Common Stock is to be sold in the initial public offering pursuant to the Underwriting Agreement.

 (iv) For purposes of any options made prior to the Underwriting Date, the Fair Market Value shall be determined by
the Plan Administrator, after taking into account such factors as it deems appropriate. 

 N. Hostile Take-Over shall mean: 
 (i) the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board does not recommend such shareholders to accept, or 
 (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority
of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected
or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination. 
 O. Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 
 P. Independent shall have such meaning as defined in Section 303A.02 of the New York Stock Exchange Listed Companies Manual.

 Q. Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason of:

 (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct,
or 
 (ii) such individual’s voluntary resignation following (A) a change in his or her position with the
Corporation or Parent or Subsidiary employing the individual which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including
base salary, fringe benefits and target bonus under any performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles,
provided and only if such change, reduction or relocation is effected by the Corporation without the individual’s consent. 
 R.
Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or
any Parent or Subsidiary), or any intentional wrongdoing by such person, whether by omission or commission, which adversely affects the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. This shall not limit
the grounds for the dismissal or discharge of any person in the Service of the Corporation (or any Parent or Subsidiary). 
 S.
1934 Act shall mean the Securities Exchange Act of 1934, as amended. 

 T. Non-Statutory Option shall mean an option not intended to satisfy the
requirements of Code Section 422. 
 U. Option Surrender Value shall mean the Fair Market Value per share of Common
Stock on the date the option is surrendered to the Corporation or, in the event of a Hostile Take-Over, effected through a tender offer, the highest reported price per share of Common Stock paid by the tender offeror in effecting such Hostile
Take-Over, if greater. However, if the surrendered option is an Incentive Option, the Option Surrender Value shall not exceed the Fair Market Value per share. 
 V. Optionee shall mean any person to whom an option is granted under the Discretionary Option Grant, Automatic Option Grant or Director Fee Option Grant Program. 
 W. Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation,
provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 X. Participant shall mean any person who is issued shares of Common Stock under the Stock
Issuance Program. 
 Y. Permanent Disability or Permanently Disabled shall mean the inability of the Optionee or the
Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. However, solely for
purposes of the Automatic Option Grant and Director Fee Option Grant Programs, Permanent Disability or Permanently Disabled shall mean the inability of the non-employee Board member to perform his or her usual duties as a Board member by reason of
any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 
 Z. Plan shall mean the Corporation’s 1999 Stock Incentive Plan, as set forth in this document. 
 AA. Plan Administrator shall mean the particular entity, whether the Primary Committee, the Board or the Secondary Committee, which is authorized to administer the Discretionary Option Grant and
Stock Issuance Programs with respect to one or more classes of eligible persons, to the extent such entity is carrying out its administrative functions under those programs with respect to the persons under its jurisdiction. However, the Primary
Committee shall have the plenary authority to make all factual determinations and to construe and interpret any and all ambiguities under the Plan to the extent such authority is not otherwise expressly delegated to any other Plan Administrator.

 BB. Plan Effective Date shall mean June 9, 1999, the date on which the Plan was adopted by the Board.

 CC. Predecessor Plan shall mean the Corporation’s pre-existing 1998
Stock Option/Stock Issuance Plan in effect immediately prior to the Plan Effective Date hereunder. 
 DD. Primary
Committee shall mean the committee of two (2) or more members of the Compensation Committee appointed by the Board to administer the Discretionary Option Grant and Stock Issuance Programs with respect to eligible persons. 
 EE. Secondary Committee shall mean a subcommittee of two (2) or more members of the Compensation Committee appointed by the
Board to administer the Discretionary Option Grant and Stock Issuance Programs with respect to eligible persons other than Section 16 Insiders. 
 FF. Section 12 Registration Date shall mean the date on which the Common Stock is first registered under Section 12(g) of the 1934 Act. 
 GG. Section 16 Insider shall mean an officer or director of the Corporation subject to the short-swing profit liabilities of
Section 16 of the 1934 Act. 
 HH. Service shall mean the performance of services for the Corporation (or any
Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option
grant or stock issuance. 
 II. Stock Exchange shall mean either the American Stock Exchange, the New York Stock
Exchange, or the Nasdaq Stock Market. 
 JJ. Stock Issuance Program shall mean the stock issuance program in effect
under the Plan. 
 KK. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain. 
 LL. 10% Shareholder shall mean the
owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 
 MM. Underwriting Agreement shall mean the agreement between the Corporation and the underwriter or underwriters managing the initial
public offering of the Common Stock. 
 NN. Underwriting Date shall mean the date on which the Underwriting Agreement is
executed and priced in connection with an initial public offering of the Common Stock. 
 OO. Withholding Taxes shall
mean the Federal, state and local income and employment withholding tax liabilities to which the holder of Non-Statutory Options or unvested shares of Common Stock may become subject in connection with the exercise of those options or the vesting of
those shares.

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