Document:

Senior Secured Convertible Acquisition Note

 Exhibit 10.14 
 SENIOR SECURED CONVERTIBLE ACQUISITION NOTE 
  

			
	U.S.$13,000,000	  	Dated: December 23, 2005            

 FOR VALUE RECEIVED, the undersigned, TARGANTA THERAPEUTICS CORPORATION, a Delaware corporation
(together with its permitted successors and assigns, the “Purchaser”), hereby executes this Senior Secured Convertible Acquisition Note (the “Note”) and unconditionally promises to pay to the order of INTERMUNE,
INC., a Delaware corporation (together with its permitted successors and assigns, the “Holder”), the principal sum of THIRTEEN MILLION U.S. DOLLARS (U.S. $13,000,000), subject to adjustment as set forth herein, on the Maturity Date
(as defined below), unless earlier paid or converted in accordance with the terms hereof and as specified in Section 2.01 of that certain Note Issuance Agreement dated as of the date hereof (the “Note Issuance Agreement”) by
and between Purchaser and Holder. Capitalized terms used herein and not otherwise defined shall have the meanings they were assigned to have in the Note Issuance Agreement. 
 1. Interest; Default Interest; Maturity; Events of Default. 
 (a) Except as set forth below, interest shall not accrue on the principal amount outstanding under this Note on any unpaid principal amount outstanding hereunder. In the event that any amount of principal, or any
other amount payable hereunder, is not paid in full when due (whether on the Maturity Date, by acceleration or otherwise), Purchaser agrees to pay interest on such unpaid principal or other amount, from the date such amount becomes due until the
date such amount is paid in full, payable on demand, at a rate per annum equal at all times to the lesser of (i) eight percent (8%) per annum and (ii) the highest lawful rate. All computations of interest shall be made on the basis of
a year of 365 or 366 days, as the case may be, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable. 
 (b) Anything herein to the contrary notwithstanding, if during any period for which interest in computed hereunder, the amount of interest computed on
the basis provided for in this Note, together with all fees, charges and other payments that are treated as interest under applicable law, as provided for herein or in any other Acquisition Document, would exceed the amount of such interest computed
on the basis of the Maximum Rate, Purchaser shall not be obligated to pay, and the Holder shall not be entitled to charge, collect, receive, reserve or take, interest in excess of the Maximum Rate, and during any such period the interest payable
hereunder shall be computed on the basis of the Maximum Rate. 
 (c) Unless the outstanding principal amount has already been converted into
New Equity Shares, Subsequent Equity Shares or Series B Preferred Stock of Purchaser pursuant to Section 9, or paid in full pursuant to Section 10, or earlier due and payable upon acceleration of this Note after an Event of Default,
Purchaser shall pay the outstanding principal amount of this Note on the fifth anniversary of the issuance date of this Note (the “Maturity Date”). 

 (d) Upon the occurrence of an Event of Default, the principal amount then outstanding under this Note,
together with all accrued interest thereon, if any, will be due and payable, as set forth in the Note Issuance Agreement. 
 2.
Payment. All payments hereunder shall be made in lawful money of the United States of America and in same day or immediately available funds, to Holder at the address specified in the Note Issuance Agreement, or at such other place or to such
account as the Holder from time to time shall designate in a written notice to Purchaser sent to Purchaser not fewer than 30 days before the date any payment is due to Holder hereunder. 
 3. Prepayment. Purchaser may not prepay the outstanding amount hereof in whole or in part at any time. 
 4. Expenses. Purchaser agrees to pay on demand all the losses, costs and expenses (including, without limitation, reasonable attorneys’ fees
and disbursements) which the Holder incurs in connection with enforcement or attempted enforcement of this Note, whether by judicial proceedings or otherwise. Such losses, costs and expenses include, without limitation, those incurred in connection
with any workout or refinancing, or any bankruptcy, insolvency, liquidation or similar proceedings. 
 5. Waiver of Presentment, etc.

 (a) Purchaser hereby waives diligence, demand, presentment, protest or further notice of any kind. Purchaser agrees to make all payments
under this Note without setoff or deduction and regardless of any counterclaim or defense (except for such set-off payments expressly permitted pursuant to the Asset Purchase Agreement). 
 (b) No single or partial exercise of any power under this Note shall preclude any other or further exercise of such power or exercise of any other power.
No delay or omission on the part of the Holder in exercising any right under this Note shall operate as a waiver of such right or any other right hereunder. 
 6. Assignment. Purchaser may assign or transfer this Note in accordance with Section 7.08 of the Note Issuance Agreement. This Note shall be binding on Purchaser and its permitted successors and assigns
(as determined pursuant to Section 7.08 of the Note Issuance Agreement), and shall be binding upon and inure to the benefit of the Holder any future holder of this Note and their respective permitted successors and assigns (as determined
pursuant to Section 7.08 of the Note Issuance Agreement). 
 7. Security Interest. This Note is secured by the Collateral
pursuant to and subject to the Collateral Documents executed in connection herewith. This Security Interest will terminate as provided in the Note Issuance Agreement and the Collateral Documents. 
 8. Adjustments in Principal Amount of Note. 
 (a) On the date Purchaser completes the Preferred Equity Financing, the principal amount of this Note shall automatically decrease by Three Million U.S. Dollars (U.S.$3,000,000) to Ten Million U.S. Dollars (U.S.$10,000,000);
provided, that if Purchaser 

 
completes the Preferred Equity Financing after the occurrence of either the First Milestone (as defined in the Asset Purchase Agreement) or the Second
Milestone (but not both), then the principal amount of this Note shall instead automatically decrease by One Million Five Hundred Thousand U.S. Dollars (U.S.$1,500,000); provided further, that if Purchaser completes the Preferred
Equity Financing after the occurrence of both the First Milestone and the Second Milestone (as defined in the Asset Purchase Agreement), then there shall be no decrease in the principal amount of this Note as a result of the completion of the
Preferred Equity Financing. 
 (b) Subject to the satisfaction of the conditions set forth in Section 3.02 of the Note Issuance
Agreement, upon the occurrence of the First Milestone, the principal amount of this Note shall automatically increase by Six Million U.S. Dollars (U.S.$6,000,000) without any further action by Holder; provided that, if Purchaser has completed
the Preferred Equity Financing at the time such First Milestone occurs, then this Note shall automatically increase by Seven Million Five Hundred Thousand U.S. Dollars (U.S.$7,500,000). 
 (c) Subject to the satisfaction of the conditions set forth in Section 3.02 of the Note Issuance Agreement, upon the occurrence of the Second
Milestone, the principal amount of this Note shall automatically increase by Six Million U.S. Dollars (U.S.$6,000,000) without any further action by Holder; provided that, if Purchaser has completed the Preferred Equity Financing at the time
such Second Milestone occurs, then this Note shall automatically increase by Seven Million Five Hundred Thousand U.S. Dollars (U.S.$7,500,000). 
 (d) If Purchaser is unable to satisfy any of the conditions precedent set forth in Section 3.02 of the Note Issuance Agreement on the date of the First Milestone or the Second Milestone, then unless such condition is waived in writing
by Holder, Purchaser shall be required to pay to Holder the Acquisition Installment Payment due on such date, as applicable, in cash. 
 (e)
Upon occurrence of any of the events set forth in Sections 8(a), (b) or (c) above, the Purchaser shall provide a certificate, executed by its chief financial officer, certifying as to the principal balance of the Note that is then
outstanding. If the Holder shall disagree with the principal balance of the Note set forth in the certificate, it shall notify Purchaser of such disagreement in writing, setting forth in reasonable detail the particulars of such disagreement, within
fifteen (15) calendar days after its receipt of the certificate. In the event that the Holder does not provide such a notice of disagreement to Purchaser within such 15-day period, the Holder shall be deemed to have accepted the calculation of
the principal balance of the Note, which shall be final, binding and conclusive for all purposes hereunder. In the event of any such disagreement, the Purchaser and Holder shall negotiate, in good faith, a resolution of such disagreement. If, after
thirty (30) days following Purchaser’s receipt of the notice of disagreement, the Purchaser and the Holder have not reached a mutually acceptable resolution, the Purchaser and the Holder shall pursue arbitration to resolve any remaining
disputes in accordance with the procedures set forth in Section 12.10(b) of the Asset Purchase Agreement. 
 9. Conversion.

 (a) In the event Purchaser, prior to the Maturity Date or a Liquidity Event, completes the Preferred Equity Financing, the principal
amount then outstanding under this Note together with all accrued interest thereon, if any (the “Initial Conversion Amount”), shall be 

 
automatically converted into that number of fully paid and nonassessable New Equity Shares as is equal to the Initial Conversion Amount divided by the per
share purchase price of the New Equity Shares (the “Per Share Price”); provided, however, that only such dollar amount of the Initial Conversion Amount as may be converted into New Equity Shares such that Holder will
not own a percent ownership of Purchaser in excess of the Ownership Limitation shall be so converted and the balance shall remain outstanding. The New Equity Shares issued to Holder upon conversion of the Initial Conversion Amount in accordance with
this paragraph shall have substantially the same rights, preferences and privileges, including without limitation registration rights, as the New Equity Shares purchased by the investors in the Preferred Equity Financing, and Holder shall execute a
counterpart to the relevant transaction documents entered into among Purchaser and the purchasers of shares of the New Equity Shares, including any registration rights agreements, shareholders agreement and voting agreements, as applicable
(collectively, the “New Equity Shares Financing Documents”). 
 (b) In the event Purchaser, prior to the Maturity Date or a
Liquidity Event, completes an equity financing subsequent to the Preferred Equity Financing in which shares of a series of Purchaser’s Preferred Stock are issued (a “Subsequent Equity Financing” and together with the Preferred
Equity Financing, an “Equity Financing”), the principal amount then under this Note outstanding together with all accrued interest thereon, if any (the “Subsequent Conversion Amount” and together with the Initial
Conversion Amount, the “Conversion Amount”), shall be automatically converted into that number of fully paid and nonassessable shares of the series of Preferred Stock sold in the Subsequent Equity Financing (the “Subsequent
Equity Shares”) as is equal to the Subsequent Conversion Amount divided by the per share purchase price of the Subsequent Equity Shares (the “Subsequent Per Share Price”); provided, however, that only such
dollar amount of the Subsequent Conversion Amount as may be converted into Subsequent Equity Shares such that Holder will not own a percent ownership of Purchaser in excess of the Ownership Limitation shall be so converted and the balance shall
remain outstanding. The Subsequent Equity Shares issued to Holder upon conversion of the Subsequent Conversion Amount in accordance with this paragraph shall have substantially the same rights, preferences and privileges, including without
limitation registration rights, as the Subsequent Equity Shares purchased by the investors in the Subsequent Equity Financing, and Holder shall execute a counterpart to the relevant transaction documents entered into among Purchaser and the
purchasers of shares of the Subsequent Equity Shares, including any registration rights agreements, shareholders agreement and voting agreements, as applicable (collectively, the “Subsequent Equity Shares Financing Documents”).

 (c) Written notice of an Equity Financing shall be delivered to the Holder at least twenty (20) days in advance of the anticipated
closing date of the Equity Financing (the “Conversion Date”), at the address for notice set forth in the Note Issuance Agreement for the Holder, notifying the Holder of the conversion to be effected, including specifying
(i) the anticipated Conversion Amount (as of the anticipated Conversion Date), (ii) the Per Share Price or the Subsequent Per Share Price, as the case may be, to the extent available and, if no such price per share is available, the
anticipated range for such price per share, (iii) a definitive term sheet setting forth the exact rights, preferences, privileges and terms and conditions of issuance and sale of the New Equity Shares or the Subsequent Equity Shares, as the
case may be, and (iv) the anticipated Conversion Date. As soon as feasible but in no event less than five (5) days in advance of the Conversion Date, Purchaser shall deliver to Holder, at the address for notice set 

 
forth in the Note Issuance Agreement for the Holder, definitive (or, if definitive documents do not then exist, substantially final drafts of the) New Equity
Shares Financing Documents or Subsequent Equity Shares Financing Documents, as the case may be. This Note shall automatically convert on the Conversion Date into that number of New Equity Shares or Subsequent Equity Shares, as the case may be,
permitted under Sections 9(a) or 9(b) above without any further action by the Holder hereof. No fraction of a share will be issued and only whole shares of the New Equity Shares or Subsequent Equity Shares shall be issued upon conversion. In lieu of
any fractional share to which Holder would otherwise be entitled, the amount of the unconverted principal and interest balance, if any, of this Note that would otherwise be converted into such fractional shares shall remain outstanding under this
Note. As promptly as practicable after any conversion of this Note, Purchaser, at its sole expense, shall issue and deliver to the Holder a certificate or certificates evidencing the number of full New Equity Shares or Subsequent Equity Shares, as
the case may be, issuable to Holder upon any such conversion. 
 (d) Any conversion of this Note shall be deemed effective on the Conversion
Date. Upon partial conversion of this Note, Purchaser shall promptly provide a certificate, executed by its chief financial officer, certifying as to the principal balance of the Note that remains outstanding, which shall be an amount equal to the
total Conversion Amount less the Conversion Amount fully converted. If the Holder shall disagree with the principal balance of the Note set forth in the certificate, it shall notify Purchaser of such disagreement in writing, setting forth in
reasonable detail the particulars of such disagreement, within fifteen (15) calendar days after its receipt of the certificate. In the event that the Holder does not provide such a notice of disagreement to Purchaser within such 15-day period,
the Holder shall be deemed to have accepted the calculation of the principal balance of the Note, which shall be final, binding and conclusive for all purposes hereunder. In the event of any such disagreement, the Purchaser and Holder shall
negotiate, in good faith, a resolution of such disagreement. If, after thirty (30) days following Purchaser’s receipt of the notice of disagreement, the Purchaser and the Holder have not reached a mutually acceptable resolution, the
Purchaser and the Holder shall pursue arbitration to resolve any remaining disputes in accordance with the procedures set forth in Section 12.10(b) of the Asset Purchase Agreement. 
 10. Liquidity Event. 
 (a) If, at any
time, there should be a Liquidity Event, then on the closing of the Liquidity Event, the principal amount then outstanding under this Note (as determined in accordance with Section 8 hereof) together with all accrued interest thereon, if any
(the “Outstanding Balance”) shall be automatically converted into (i) if there has been an Equity Financing as of the closing of the Liquidity Event, that number of fully paid and nonassessable shares of (A) the most
recently issued Subsequent Equity Shares, or if a Subsequent Equity Financing has not yet occurred, (B) New Equity Shares, as is equal to the Outstanding Balance divided by the Per Share Price or Subsequent Per Share Price, as the case may be
or (ii) if there has not been an Equity Financing as of the closing of the Liquidity Event, that number of fully paid and nonassessable shares of Series B Preferred Stock of Purchaser as is equal to the Outstanding Balance divided by the
original issue price for the Series B Preferred Stock of Purchaser, as set forth in Purchaser’s certificate of incorporation, as amended and restated from time to time, as adjusted for stock splits, dividends and recapitalizations. 

 (b) Notwithstanding the foregoing, in the event that conversion of the Outstanding Balance into shares of
Preferred Stock of Purchaser pursuant to subsection (a) above would result in Holder owning a percent ownership of Purchaser in excess of the Ownership Limitation, then: 
 (i) in the case of an event that falls under clauses (i), (ii) or (iii) of the definition of Liquidity Event, and in which case
the party purchasing shares or assets of Purchaser, with whom Purchaser is consolidating, merging or amalgamating or to whom Purchaser is licensing a substantial portion of its intellectual property (the “Acquiring Party”) is a
corporation whose shares are listed on a national securities exchange or quoted on the Nasdaq National Market, then that portion of the Outstanding Balance that is not converted pursuant to subsection (a) above will be paid to Holder in cash by
Purchaser or the Acquiring Party as of the closing of the Liquidity Event; 
 (ii) in the case of an event that falls under
clause (iv) of the definition of Liquidity Event, then that portion of the Outstanding Balance that is not converted pursuant to subsection (a) above will be paid to Holder in cash by Purchaser as of the closing of the Liquidity Event; and

 (iii) in the case of an event that falls under (i), (ii) or (iii) of the definition of Liquidity Event, and in
which case the Acquiring Party is a corporation whose shares are not listed on a national securities exchange or quoted on the Nasdaq National Market, then the Acquiring Party will issue a replacement note in substantially the form hereof to Holder
as of the closing of the Liquidity Event in an amount equal to that portion of the Outstanding Balance that is not converted pursuant to subsection (a) above on terms substantially similar to those set forth herein, and in any case subject to
Holder’s approval. 
 (c) In the event that the First Milestone and/or Second Milestone have not yet occurred as of the closing of the
Liquidity Event, then, as of the closing of the Liquidity Event: 
 (i) in the case of an event that falls under (i),
(ii) or (iii) of the definition of Liquidity Event, the Acquiring Party shall either (A) assume this Note and the obligations of Purchaser to increase the principal amount of this Note in accordance with Section 8 or
(B) assume the obligation of Purchaser to pay the Acquisition Installment Payment due on each of the First Milestone or Second Milestone, as the case may be, in cash or in the form of a note with terms substantially similar to those set forth
herein, and in any case subject to Holder’s approval; and 
 (ii) in the case of an event that falls under clause
(iv) of the definition of Liquidity Event, Purchaser shall continue to have its obligations under the Note Issuance Agreement and the Asset Purchase Agreement with respect to the Acquisition Installment Payments due on the First Milestone or
Second Milestone, as the case may be. 
 11. Termination of Obligations. Unless Purchaser may be required under the Asset Purchase
Agreement to make any further Acquisition Installment Payments, upon payment and/or conversion in full of the principal amount then outstanding, the Holder shall have no further rights under this Note, whether or not this Note is surrendered.

 12. Note Issuance Agreement. This Note is subject to the provisions of the Note Issuance
Agreement. It is intended that the terms of this Note be read to supplement the terms of the Note Issuance Agreement and shall be read to the greatest extent possible as being consistent with the Note Issuance Agreement. However, to the extent any
term or provision in this instrument is irreconcilably inconsistent with the terms and provisions of the Note Issuance Agreement, the terms of the Note Issuance Agreement shall control. 
 13. Governing Law. This Note shall be construed in accordance with, and governed in all respects by, the laws of the State of Delaware (without
giving effect to principles of conflicts of laws that would require the application of any other law). 

 Executed as of the date first written above. 
  

			
	 TARGANTA THERAPEUTICS CORPORATION,
 a
Delaware corporation

		
	By:	 	/s/ Pierre Etienne
	Name: Pierre Etienne
	Title: President and Chief Executive Officer

  

	
	 Address:
 7170 Frederick Banting
 2nd Floor
 St. Laurent, QC H4S 2A1Omnibus Amendment to Asset Purchase Agreement

 Exhibit 10.15 
 OMNIBUS AMENDMENT TO ASSET PURCHASE AGREEMENT, NOTE ISSUANCE AGREEMENT,

 AND SENIOR SECURED CONVERTIBLE ACQUISITION
NOTE, EACH DATED AS OF DECEMBER 23, 2005 
 This Omnibus Amendment (this “Amendment”) to the Asset Purchase Agreement (the “APA”), Note Issuance Agreement (the “NIA”) and Senior Secured Convertible Acquisition Note (the
“Note”), each dated as of December 23, 2005 (collectively, the APA, the NIA and the Note, the “Agreements” and each an “Agreement”) is made as of January 31, 2007, by and between Targanta
Therapeutics Corporation, a Delaware corporation (“Targanta US”) and InterMune, Inc., a Delaware corporation (“InterMune”). 
 WHEREAS, on or around the date hereof, Targanta US shall enter into a Series C Preferred Stock, Class C Exchangeable Shares and Warrant Purchase Agreement (the “Purchase Agreement”) pursuant to which
agreement Targanta US and its two Canadian subsidiaries shall issue shares of Series C Preferred Stock, Class C Exchangeable Shares and Warrants to certain investors; and 
 WHEREAS, it is a condition to the closing of the transactions contemplated by the Purchase Agreement that the Agreements be amended to reflect certain changes to the terms thereof and to clarify certain ambiguities
contained therein; and 
 WHEREAS, each of the Agreements may be amended upon the written consent of each of Targanta US and InterMune;

 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows: 
 1. The parties to this Amendment hereby acknowledge and agree that the
transactions contemplated by the Purchase Agreement constitute a Preferred Equity Financing (as such term is defined in the NIA). InterMune hereby acknowledges and agrees that, upon the consummation of the transactions contemplated in the Purchase
Agreement, (a) its entitlement to a security interest in the assets of Targanta US shall automatically expire and be terminated; (b) the Collateral Documents (as such term is defined in the NIA) shall be null and void; and
(c) Targanta US and its Canadian subsidiaries shall be expressly authorized to terminate the financing statements or other documents representing such security interest on file in the State of Delaware or in Canada. 
 2. Targanta US hereby informs InterMune that the address of its principal executive offices and its address for notice purposes under all of the
Agreements is now 222 Third Street, Suite 2300, Cambridge, MA 02142, facsimile: (617) 577-9021. 

 3. The definition of First Milestone set forth in Exhibit A to the APA shall be amended and restated in
its entirety to read as follows: 
 “First Milestone” means the earlier of the date on which (i) Buyer
receives FDA authorization (whether verbal or written) to conduct or (ii) the first subject is dosed in, in each case, a clinical study of the Product in the United States. 
 4. The definition of Second Milestone set forth in Exhibit A to the APA shall be amended and restated in its entirety to read as follows: 
 “Second Milestone” means the earlier of the date on which (i) Buyer receives FDA authorization (whether verbal or written)
to conduct or (ii) the first subject is dosed in, in each case, a clinical study of the Product in the United States, which clinical study is designed to assess the efficacy of the Product (excluding any clinical study required to be conducted
by the FDA for approval of an indication for the treatment of patients with complicated skin and skin structure infections (cSSSI) by daily IV infusion of 200 mg of Product (300 mg for patients greater than 110 kg)). 
 5. The following defined terms shall be added to the NIA: 
 “Series C Shares” means Series C-1 Shares, Series C-2 Shares and Series C-3 Shares. 
 “Series C-1 Shares” means shares of Purchaser’s Series C-1 Preferred Stock, par value $0.0001 per share. 
 “Series C-2 Shares” means shares of Purchaser’s Series C-2 Preferred Stock, par value $0.0001 per share. 
 “Series C-3 Shares” means shares of Purchaser’s Series C-3 Preferred Stock, par value $0.0001 per share. 

6. Both Targanta US and InterMune hereby acknowledge and agree that the First Milestone has, as
of the date hereof, been achieved but that the Second Milestone has not, as of the date hereof, been achieved. InterMune hereby acknowledges and agrees that, notwithstanding anything herein or in the Note to the contrary related to the timing of
such events, on or prior to the fifth (5th) business day following the date of the Initial Closing (as such
term is defined in the Purchase Agreement), Targanta US shall (a) issue the shares of Series C-2 Shares and Series C-3 Shares issuable to InterMune in respect of Targanta US’ achievement of the First Milestone and (b) pay to InterMune
the cash payment required by Section 4.01(e) of the APA. 
 7. InterMune hereby waives receipt of a separate certificate, required
pursuant to Section 9(d) of the Note, from the Chief Financial Officer of Targanta US, which certificate would be required to be delivered following the conversion of the Initial Conversion Amount (as defined in the Note), which conversion
shall occur on or around the date hereof. Upon the consummation of the Closing and based on the achievement of the First Milestone, the parties hereto acknowledge and agree that the outstanding balance on the Note will be $7,500,000, which amount
shall be converted into Series C-2 Shares and Series C-3 Shares as specified in the 

  

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Note and Section 6 above. Further, InterMune hereby waives receipt of a separate certificate, required pursuant to Section 9(d) of the Note, from
the Chief Financial Officer of Targanta US, which certificate would be required to be delivered following the conversion of the Subsequent Conversion Amount related to the achievement of the First Milestone, and instead, hereby acknowledges and
agrees that, following the conversion of such Subsequent Conversion Amount, the outstanding principal balance on the Note shall be $0. 
 8.
InterMune acknowledges and agrees that the certificate delivered to it on or around the date hereof in respect of the conversion of the Initial Conversion Amount (pursuant to Section 3.02(b) of the NIA) shall be deemed also to apply to and be
in respect of the conversion of the Subsequent Conversion Amount related to Targanta US’ achievement of the First Milestone such that no further certificate shall be required pursuant to Section 3.02(b) in respect of such conversion.

 9. Section 1(c) of the Note shall be amended and restated in its entirety to read as follows: 
 (c) Unless the outstanding principal amount has already been converted into Series C Shares pursuant to Section 9, or paid in full
pursuant to Section 10, or earlier due and payable upon acceleration of this Note after an Event of Default, Purchaser shall pay the outstanding principal amount of this Note on the fifth anniversary of the issuance date of this Note (the
“Maturity Date”). 
 10. Section 8 of the Note shall be amended and restated in its entirety to read as follows:

 (a) On the date Purchaser completes the Preferred Equity Financing, the principal amount of this Note shall automatically
decrease by Three Million U.S. Dollars (U.S.$3,000,000) to Ten Million U.S. Dollars (U.S.$10,000,000). 
 (b) Subject to the
satisfaction of the conditions set forth in Section 3.02 of the Note Issuance Agreement, upon the occurrence of the First Milestone, the principal amount of this Note shall automatically increase by Seven Million Five Hundred Thousand U.S.
Dollars (U.S.$7,500,000). 
 (c) Subject to the satisfaction of the conditions set forth in Section 3.02 of the Note
Issuance Agreement, upon the occurrence of the Second Milestone, the principal amount of this Note shall automatically increase by Seven Million Five Hundred Thousand U.S. Dollars (U.S.$7,500,000). 
 (d) If Purchaser is unable to satisfy any of the conditions precedent set forth in Section 3.02 of the Note Issuance Agreement on the
date of the First Milestone or the Second Milestone, then unless such condition is waived in writing by Holder, Purchaser shall be required to pay to Holder the Acquisition Installment Payment due on such date, as applicable, in cash. 
  

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 (e) Unless waived by the Holder, upon the occurrence of any of the events set forth in
Sections 8(a), (b) or (c) above, the Purchaser shall provide a certificate, executed by its chief financial officer, certifying as to the principal balance of the Note that is then outstanding. If the Holder shall disagree with the
principal balance of the Note set forth in the certificate, it shall notify Purchaser of such disagreement in writing, setting forth in reasonable detail the particulars of such disagreement, within fifteen (15) calendar days after its receipt
of the certificate. In the event that the Holder does not provide such a notice of disagreement to Purchaser within such 15-day period, the Holder shall be deemed to have accepted the calculation of the principal balance of the Note, which shall be
final, binding and conclusive for all purposes hereunder. In the event of any such disagreement, the Purchaser and Holder shall negotiate, in good faith, a resolution of such disagreement. If, after thirty (30) days following Purchaser’s
receipt of the notice of disagreement, the Purchaser and the Holder have not reached a mutually acceptable resolution, the Purchaser and the Holder shall pursue arbitration to resolve any remaining disputes in accordance with the procedures set
forth in Section 12.10(b) of the Asset Purchase Agreement. 
 11. Section 9(a) of the Note shall be amended and restated in its
entirety to read as follows: 
 (a) Upon the consummation of the Preferred Equity Financing, the principal amount then
outstanding under this Note, which, upon such Preferred Equity Financing, shall be $10,000,000, together with all accrued interest thereon, if any (the “Initial Conversion Amount”), shall be automatically converted into that number
of fully paid and nonassessable Series C-1 Shares as is equal to the Initial Conversion Amount divided by the per share purchase price of the Series C Shares; provided, however, that only such dollar amount of the Initial Conversion
Amount as may be converted into Series C-1 Shares such that Holder will not own a percent ownership of Purchaser in excess of the Ownership Limitation shall be so converted and the balance shall remain outstanding. Following the conversion of the
Initial Conversion Amount into Series C-1 Shares, if, at any time thereafter, on one or more occasions, the principal balance on this Note is increased, such increased principal balance together with all accrued interest thereon, if any (the
“Subsequent Conversion Amount” and, together with the Initial Conversion Amount, the “Conversion Amount”) shall be automatically converted into that number of fully paid and nonassessable Series C Shares as is equal
to such Subsequent Conversion Amount divided by the original per share purchase price of Series C Shares (as adjusted in respect of stock splits, consolidations and the like in respect of the Series C Shares, the “Per Share Price”),
with one-half of such Subsequent Conversion Amount converted into Series C-2 Shares and one-half into Series C-3 Shares; provided, however, that only such dollar amount of the Subsequent Conversion Amount as may be converted into
Series C Shares such that Holder will not own a percent ownership of Purchaser in excess of the Ownership Limitation shall be so converted and the 

  

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balance shall remain outstanding. The Series C Shares issued to Holder upon conversion of any Conversion Amount in accordance with this paragraph shall have
substantially the same rights, preferences and privileges, including without limitation registration rights, as the Series C Shares purchased by the investors in the Preferred Equity Financing, and Holder shall execute a counterpart to the relevant
transaction documents entered into among Purchaser and the purchasers of shares of the Series C Shares, including any registration rights agreements, shareholders agreement and voting agreements, as applicable (collectively, the “New Equity
Shares Financing Documents”). 
 12. Section 9(b) of the Note is hereby deleted in its entirety and replaced with the
following: “Reserved.” 
 13. Section 9(c) of the Note shall be amended and restated in its entirety to read as
follows: 
 (c) Written notice of a Preferred Equity Financing shall be delivered to the Holder at least twenty (20) days
in advance of the anticipated closing date of the Preferred Equity Financing (the “Conversion Date”), at the address for notice set forth in the Note Issuance Agreement for the Holder or by email to the Holder’s representative
on the Purchaser’s Board of Directors (with a copy by email to Holder’s counsel), notifying the Holder of the conversion to be effected, including specifying (i) the anticipated Conversion Amount (as of the anticipated Conversion
Date), (ii) the Per Share Price to the extent available and, if no such price per share is available, the anticipated range for such price per share, (iii) a definitive term sheet setting forth the exact rights, preferences, privileges and
terms and conditions of issuance and sale of the Series C Shares, and (iv) the anticipated Conversion Date. As soon as feasible but in no event less than five (5) days in advance of the Conversion Date, Purchaser shall deliver to Holder,
at the address for notice set forth in the Note Issuance Agreement for the Holder or by email to the Holder’s representative on the Purchaser’s Board of Directors (with a copy by email to Holder’s counsel), definitive (or, if
definitive documents do not then exist, substantially final drafts of the) New Equity Shares Financing Documents. This Note shall automatically convert on the Conversion Date into that number of Series C Shares required and permitted under Sections
9(a) above without any further action by the Holder hereof. For the avoidance of doubt, conversions of any Subsequent Conversion Amounts shall be made automatically on the same date or dates on which the principal balance on this Note is increased
as provided in Section 8 hereof. No fraction of a share will be issued and only whole shares of the Series C Shares shall be issued upon conversion. In lieu of any fractional share to which Holder would otherwise be entitled, the amount of the
unconverted principal and interest balance, if any, of this Note that would otherwise be converted into such fractional shares shall (i) remain outstanding under this Note or (ii) at Purchaser’s option, shall be repaid by Purchaser
without any prepayment penalty. As promptly as practicable after any conversion of this Note, Purchaser, at its sole expense, shall issue and deliver to the Holder a 

  

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certificate or certificates evidencing the number of full Series C Shares issuable to Holder upon any such conversion. If the conversion of any Conversion
Amount is delayed due to the Ownership Limitation, such amount shall automatically be converted into the applicable series of Series C Shares, through one or more conversions, on the first date or dates on which such conversion is possible.

 14. Section 10(a) of the Note is hereby amended and restated in its entirety to read as follows: 
 (a) If, at any time, there should be a Liquidity Event, then on the closing of the Liquidity Event, the principal amount then outstanding
under this Note (as determined in accordance with Section 8 hereof) together with all accrued interest thereon, if any (the “Outstanding Balance”) shall be automatically converted into (i) if in respect of the Initial
Conversion Amount, that number of fully paid and nonassessable Series C-1 Shares as is equal to the Outstanding Balance divided by the Per Share Price and (ii) if in respect of a Subsequent Conversion Amount, that number of fully paid and
nonassessable Series C-2 Shares and Series C-3 Shares as is equal to dividing the Outstanding Balance by the Per Share Price and allocating half such number to Series C-2 Shares and half such number to Series C-3 Shares. 
 15. The following language shall be added as a new Section 10(c)(iii): 
 (iii) in the case of an event that falls under the portion of the Liquidity Event definition that relates to a Qualified Public Offering,
either or both of the First Milestone and the Second Milestone, whichever is as-yet unmet, shall be deemed to have been achieved, the principal balance of the Note shall be increased as if the conditions set forth in Sections 8(b) and (c) had
been met and the increased principal balance then outstanding in respect of this Note pursuant to Section 8 hereof shall, upon the closing of the Qualified Public Offering, be automatically converted into shares of Purchaser’s Common Stock
with the number of such fully paid and nonassessable shares calculated by assuming such outstanding principal amount had first been automatically converted into Series C Shares at the Per Share Price and then subsequently automatically converted
into shares of Common Stock. 
 16. For purposes of clarity and as appropriate, references in the NIA and the Note to clauses (i), (ii),
(iii) and (iv) of the definition of “Liquidity Event” shall be read to mean clauses of the definition of “Liquidation Event” as set forth in the certificate of incorporation of Targanta US as amended and restated from
time to time and on file with the Secretary of the State of Delaware. Further, references to the Nasdaq National Market shall be read as references to the Nasdaq Global Market. 
  

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 17. Section 3.02(b) of the NIA is hereby amended and restated in its entirety to read as follows:

 (b) Officer’s Certificate. InterMune shall have received, in form and substance satisfactory to it a
certificate in the form of Exhibit D signed by a Responsible Officer of Purchaser stating that no Event of Default has occurred and is continuing and that the representations and warranties in Sections 4.01(e), (f) and (g) of this
Agreement are and remain true and correct. 
 18. Section 5.02(i) of the NIA is hereby deleted and all rights granted to InterMune on or
after the date hereof related to its right to designate a member of the Board of Directors of Targanta US or to send an observer to meetings of the Board of Directors of Targanta US shall be governed by the Amended and Restated Unanimous
Shareholders Agreement, by and among Targanta US, its Canadian subsidiaries, InterMune and the other parties thereto, dated on or around the date hereof. 
 19. This Amendment may be executed in one or more counterparts and with counterpart facsimile signature pages, each of which shall be deemed an original, but all of which when taken together shall constitute one and
the same agreement. 
 20. This Amendment is the product of both of the parties hereto, and together with the Agreements, constitutes the
entire agreement between such parties pertaining to the subject matter hereof, and merges all prior negotiations and drafts of the parties with regard to the matters set forth herein. 
 21. This Amendment shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to its conflicts of
law principles. Any proceeding arising out of or relating to this Amendment may be brought in the state or federal courts located in the State of Delaware. 
 22. All other aspects of the Agreements shall remain unchanged and in full force and effect. From the date hereof, any reference to any of the Agreements shall be deemed to refer to any such Agreement as amended by
this Amendment. 
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 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.

  

			
	TARGANTA THERAPEUTICS CORPORATION
		
	By:	 	/s/ Mark Leuchtenberger
	Name:	 	Mark Leuchtenberger
	Title:	 	President and Chief Executive Officer

  

					
	INTERMUNE, INC.
		
	By:	 	/s/ Robin Steele
		 	Name:	 	Robin Steele
		 	Title:	 	General Counsel

 Signature Page to Omnibus Amendment to Stockholder Agreements

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