Document:

exv10w40

Exhibit 10.40

EXECUTION COPY

AMENDMENT NO. 7

TO

RECEIVABLES SALE AGREEMENT

          THIS AMENDMENT NO. 7 TO RECEIVABLES SALE AGREEMENT (this “Amendment”) dated as of
November 23, 2010, is entered into among CONSUMERS RECEIVABLES FUNDING II, LLC (“Buyer”)
and CONSUMERS ENERGY COMPANY (“Originator”). Capitalized terms used herein without
definition shall have the meanings ascribed thereto in the “Receivables Sale Agreement” referred to
below.

PRELIMINARY STATEMENTS

          A. Reference is made to that certain Receivables Sale Agreement dated as of May 22, 2003
between Buyer and Originator (as amended prior to the date hereof, as amended hereby and as the
same may be further amended, restated, supplemented or modified from time to time, the
“Receivables Sale Agreement”).

          B. The parties hereto have agreed to amend certain provisions of the Receivables Sale
Agreement upon the terms and conditions set forth herein.

          SECTION 1. Amendments. Subject to the satisfaction of the condition precedent set
forth in Section 3 hereof, the parties hereto hereby agree to amend the Receivables Sale
Agreement as follows:

     (a) Paragraph 3 of the preliminary statements is hereby amended and restated in
its entirety as follows:

“Buyer will sell undivided interests in the Receivables and in the
associated Related Security and Collections pursuant to that certain Amended
and Restated Receivables Purchase Agreement dated as of November 23, 2010
(as the same may from time to time be amended, restated, supplemented or
otherwise modified, the “Purchase Agreement”) among Buyer,
Originator, as Servicer, the Conduits party thereto from time to time, the
Financial Institutions party thereto from time to time, the Managing Agents
party thereto from time to time and JPMorgan Chase Bank, N.A. or any
successor agent appointed pursuant to the terms of the Purchase Agreement,
as administrative agent for the Purchasers (in such capacity, the
“Administrative Agent”).”

     (b) Section 1.2(b) is hereby amended to delete the penultimate sentence and
replace it with the following:

“The Subordinated Loans shall be evidenced by, and shall be payable in
accordance with the terms and provisions of the Subordinated Note and shall
be payable solely from funds which Buyer is not required under the Purchase
Agreement to set aside for the benefit of, or otherwise pay over to, the
Administrative Agent, the Managing Agents or the Purchasers.”

 

 

     (c) Section 1.6(b) is hereby amended and restated in its entirety as follows:

“Originator acknowledges that Buyer, pursuant to the Purchase Agreement,
shall assign to the Administrative Agent, for the benefit of the
Administrative Agent, the Managing Agents and the Purchasers thereunder, all
of its rights, remedies, powers and privileges under this Agreement and that
the Administrative Agent may further assign such rights, remedies, powers
and privileges to the extent permitted by the Purchase Agreement. The
Originator agrees that the Administrative Agent, as the assignee of the
Buyer, shall, subject to the terms of the Purchase Agreement, have the right
to enforce this Agreement and to exercise directly all of Buyer’s rights and
remedies under this Agreement (including, without limitation, the right to
give or withhold any consents or approvals of Buyer to be given or withheld
hereunder, and, in any case without regard to whether specific reference is
made to Buyer’s assigns in the provisions of this Agreement which set forth
such rights and remedies) and Originator agrees to cooperate fully with the
Administrative Agent and the Purchasers in the exercise of such rights and
remedies. Originator further agrees to give to the Administrative Agent
copies of all notices it is required to give to Buyer hereunder.”

     (d) Section 4.1(a)(vi) is hereby amended and restated in its entirety as
follows:

“Copies of Notices. Promptly upon its receipt of any notice,
request for consent, financial statements, certification, report or other
communication under or in connection with any Transaction Document from any
Person other than Buyer, the Administrative Agent, any Managing Agent or any
Financial Institution, copies of the same.”

     (e) The last sentence of Section 4.2(d) is hereby amended and restated in its entirety
as follows:

“Originator shall not create or suffer to exist any mortgage, pledge,
security interest, encumbrance, lien, charge or other similar arrangement on
any of its inventory.”

     (f) Section 7.1(b) is hereby amended and restated in its entirety as follows:

“No provision of this Agreement may be amended, supplemented, modified or
waived except in writing signed by Originator and Buyer and consented to by
the Administrative Agent, each Managing Agent and each Financial
Institution.”

     (g) Section 7.4(a) is hereby amended and restated in its entirety as follows:

“Originator shall maintain and shall cause each of its employees and
officers to maintain the confidentiality of this Agreement and the other
confidential proprietary information with respect to the Administrative

2

 

Agent, the Managing Agents and the Purchasers and their respective
businesses obtained by it or them in connection with the structuring,
negotiating and execution of the transactions contemplated herein, except
that Originator and its officers and employees may disclose such information
to Originator’s external accountants and attorneys and as required by any
applicable law, regulation or order of any judicial or administrative
proceeding (whether or not having the force of law).”

     (h) Section 7.4(c) is hereby amended and restated in its entirety as follows:

“Anything herein to the contrary notwithstanding, Originator hereby consents
to the disclosure of any nonpublic information with respect to it (i) to
Buyer, the Administrative Agent, the Managing Agents, the Financial
Institutions or the Conduits by each other, (ii) by Buyer, the
Administrative Agent, the Managing Agents, the Financial Institutions or the
Conduits to any prospective or actual assignee or participant of any of
them or (iii) by the Administrative Agent, any Managing Agent or any
Conduit to any rating agency (including, without limitation, in compliance
with Rule 17g-5 under the Securities Exchange Act of 1934), Commercial Paper
dealer or provider of a surety, guaranty or credit or liquidity enhancement
to a Conduit or any entity organized for the purpose of purchasing, or
making loans secured by, financial assets for which any Managing Agent acts
as the administrative agent and to any officers, directors, employees,
outside accountants and attorneys of any of the foregoing provided
each such Person is informed of the confidential nature of such information.
In addition, the Purchasers, the Managing Agents and the Administrative
Agent may disclose any such nonpublic information pursuant to any law, rule,
regulation, direction, request or order of any judicial, administrative or
regulatory authority or proceedings (whether or not having the force or
effect of law).”

     (i) Section 7.5 is hereby amended and restated in its entirety as follows:

“Bankruptcy Petition. Originator and Buyer each hereby covenants
and agrees that, prior to the date that is one year and one day after the
payment in full of all outstanding senior indebtedness of a Conduit, it will
not institute against, or join any other Person in instituting against, such
Conduit any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the
United States or any state of the United States.”

     (j) Exhibit I is hereby amended to delete the definitions of “Bank Rate,”
“Business Day,” “Conduit,” “Financial Institution” and “Purchasers” and substitute the
following therefor:

““Bank Rate” means a rate per annum equal to the corporate base
rate, prime rate or base rate of interest, as applicable, announced by

3

 

JPMorgan Chase Bank, N.A. from time to time, changing when and as such rate
changes.”

““Business Day” means any day on which banks are not authorized or
required to close in New York, New York, Chicago, Illinois or Los Angeles,
California and The Depository Trust Company of New York is open for
business.”

““Conduit” means a Person identified as a “Conduit” on Schedule A to
the Purchase Agreement and its respective successors and permitted assigns.”

““Financial Institutions” means, as to any Purchaser Group, each of
the financial institutions listed on Schedule A to the Purchase
Agreement as a “Financial Institution” for such Purchaser Group, together
with its respective successors and permitted assigns.”

““Purchasers” means each Conduit and each Financial Institution.”

     (k) Exhibit I is hereby amended to add the following definition in the
appropriate alphabetical order:

““Managing Agent” means, as to any Conduit or Financial Institution,
the Person listed on Schedule A to the Purchase Agreement as the
“Managing Agent” for such Purchasers, together with its respective
successors and permitted assigns.”

     (l) Exhibit III is hereby replaced in its entirety with the Exhibit III
attached hereto.

     (m) Exhibit VI is hereby replaced in its entirety with the Exhibit VI
attached hereto.

          SECTION 2. Representations and Warranties. The Originator hereby represents and
warrants to Buyer and its assigns that:

     (a) this Amendment constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms; and

     (b) on the date hereof, before and after giving effect to this Amendment, no
Termination Event or Potential Termination Event has occurred and is continuing.

          SECTION 3. Conditions Precedent. This Amendment shall become effective on the first
Business Day (the “Effective Date”) on which Buyer and the Administrative Agent or its
counsel has received four (4) counterpart signature pages to this Amendment, executed by each of
the parties hereto.

          SECTION 4. Reference to and Effect on the Transaction Documents.

4

 

     (a) Upon the effectiveness of this Amendment, (i) each reference in the Receivables
Sale Agreement to “this Receivables Sale Agreement”, “this Agreement”, “hereunder”,
“hereof”, “herein” or words of like import shall mean and be a reference to the Receivables
Sale Agreement as amended or otherwise modified hereby, and (ii) each reference to the
Receivables Sale Agreement in any other Transaction Document or any other document,
instrument or agreement executed and/or delivered in connection therewith, shall mean and be
a reference to the Receivables Sale Agreement as amended or otherwise modified hereby.

     (b) Except as specifically amended, terminated or otherwise modified above, the terms
and conditions of the Receivables Sale Agreement, of all other Transaction Documents and any
other documents, instruments and agreements executed and/or delivered in connection
therewith, shall remain in full force and effect and are hereby ratified and confirmed.

     (c) The execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of Buyer or its assigns under the Receivables Sale
Agreement or any other Transaction Document or any other document, instrument or agreement
executed in connection therewith, nor constitute a waiver of any provision contained
therein. Buyer and its assigns hereby expressly reserve all of their rights with respect to
the occurrence of other Termination Events, if any, whether previously existing or
hereinafter arising or which exist at any time on or after the date first written above.

          SECTION 5. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of a signature
page to this Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

          SECTION 6. Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO THE LAW OF CONFLICTS) OF THE STATE OF
NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

          SECTION 7. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment for any other
purpose.

[Remainder of Page Deliberately Left Blank]

5

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective officers as of the date first above written.

	 	 	 	 	 
	 	CONSUMERS RECEIVABLES FUNDING II, LLC

 	 
	 	By:  	/s/ Laura L. Mountcastle
 	 
	 	 	Name:  	Laura L. Mountcastle 	 
	 	 	Title:  	President, Chief Executive
Officer, Chief Financial Officer and
Treasurer 	 
	 
	 	CONSUMERS ENERGY COMPANY

 	 
	 	By:  	/s/ Laura L. Mountcastle
 	 
	 	 	Name:  	Laura L. Mountcastle 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Signature Page to Amendment No. 7 to RSA

 

 

Consented to by:

	 	 	 	 	 
	JPMORGAN CHASE BANK, N.A., as a Managing

Agent, as a Financial Institution and as

Administrative Agent

 	 	 
	By:  	/s/ Patrick Menichillo
 	 	 
	 	Name:  	Patrick Menichillo 	 	 
	 	Title:  	Vice President 	 	 
	 
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK
BRANCH, as a Managing Agent

 	 	 
	By:  	/s/ Aditya Reddy
 	 	 
	 	Name:  	Aditya Reddy 	 	 
	 	Title:  	Senior Vice President 	 	 
	 
	UNION BANK, N.A., as a Financial Institution

 	 	 
	By:  	/s/ Jeffrey Fesenmaier
 	 	 
	 	Name:  	Jeffrey Fesenmaier 	 	 
	 	Title:  	Vice President 	 	 
	 

Signature Page to Amendment No. 7 to RSA

 

 

Exhibit III

Lock-boxes; Collection Accounts; Collection Banks; Specified Accounts

JP Morgan Chase Bank

717 Travis, TX2-S084

Houston, TX 77002

Contact: Nina Lacy

Phone: 713-216-2227

	 	 	 

	Collection Account: 1242263;

	 	provided, that, such account shall be a Specified Account on and
after such date as the account is subject to a Collection Account Agreement.

Comerica Bank

500 Woodward Avenue, 9th Floor, MC3268

Detroit, MI 48226

Contact: Stacie McVeigh

Phone: 313-222-4515

	 	 	 

	Collection Account: 1076119914;

	 	provided, that, such account shall be a Specified Account on
and after such date as the account is subject to a Collection Account
Agreement.

Wachovia Bank

10401 Deerwood Park Blvd — FL0117

South Building, 3rd Floor

Jacksonville, FL 32256

Contact: Carol Grant

Phone: 800-590-7868 team 662 ext. 4

Collection Account: 2000032635920

Lock-Box Zip Code:

Lansing, MI 48937-0001

PNC Bank, National Association

620 Liberty Avenue

Pittsburgh, PA 15222

Contact: Gabe Galioto

Phone: 412-768-1819

Specified Account: 4006909862

Fifth Third Bank

710 Seminole Rd MD R17061

Norton Shores, MI 49441

Contact: Randy Wolffis, VP & Relationship Manager

Phone: 231-733-5006

Fax: 231-739-7430

Email: randal.wolffis@53.com; CommercialSupport@53.com

Specified Account: 7164496916

Exh. III-1

 

Exhibit VI

Form of Amended and Restated Subordinated Note

AMENDED AND RESTATED SUBORDINATED NOTE

     November 23, 2010

          1. Note. FOR VALUE RECEIVED, the undersigned, CONSUMERS RECEIVABLES FUNDING II, LLC,
a Delaware limited liability company (“SPV”), hereby unconditionally promises to pay to the
order of CONSUMERS ENERGY COMPANY, a Michigan corporation (“Originator”), in lawful money
of the United States of America and in immediately available funds, on the date following the
Termination Date which is one year and one day after the date on which (i) the Outstanding Balance
of all Receivables sold under the “Sale Agreement” referred to below has been reduced to zero and
(ii) Originator has paid to the Buyer all indemnities, adjustments and other amounts which may be
owed thereunder in connection with the Purchases (the “Collection Date”), the aggregate
unpaid principal sum outstanding of all “Subordinated Loans” made from time to time by Originator
to SPV pursuant to and in accordance with the terms of that certain Receivables Sale Agreement
dated as of May 22, 2003 between Originator and SPV (as amended, restated, supplemented or
otherwise modified from time to time, the “Sale Agreement”). Reference to Section
1.2 of the Sale Agreement is hereby made for a statement of the terms and conditions under
which the loans evidenced hereby have been and will be made. All terms which are capitalized and
used herein and which are not otherwise specifically defined herein shall have the meanings
ascribed to such terms in the Sale Agreement or the Purchase Agreement (as hereinafter defined).

          2. Interest. SPV further promises to pay interest on the outstanding unpaid principal
amount hereof from the date hereof until payment in full hereof at a rate equal to the Bank Rate;
provided, however, that if SPV shall default in the payment of any principal
hereof, SPV promises to pay, on demand, interest at the rate of the Bank Rate plus 2.00% per annum
on any such unpaid amounts, from the date such payment is due to the date of actual payment.
Interest shall be payable on the first Business Day of each month in arrears; provided,
however, that SPV may elect on the date any interest payment is due hereunder to defer such
payment and upon such election the amount of interest due but unpaid on such date shall constitute
principal under this Amended and Restated Subordinated Note (the “Subordinated Note”). The
outstanding principal of any loan made under this Subordinated Note shall be due and payable on the
Collection Date and may be repaid or prepaid at any time without premium or penalty.

          3. Principal Payments. Originator is authorized and directed by SPV to enter on the
grid attached hereto, or, at its option, in its books and records, the date and amount of each loan
made by it which is evidenced by this Subordinated Note and the amount of each payment of principal
made by SPV, and absent manifest error, such entries shall constitute prima facie evidence of the
accuracy of the information so entered; provided that neither the failure of Originator to
make any such entry or any error therein shall expand, limit or affect the obligations of SPV
hereunder.

Exh. VI-1

 

          4. Subordination. The indebtedness evidenced by this Subordinated Note is
subordinated to the prior payment in full of all of SPV’s recourse obligations under that certain
Amended and Restated Receivables Purchase Agreement dated as of November 23, 2010 by and among SPV,
Originator, as Servicer, the entities from time to time party thereto as Conduits, the entities
from time to time party thereto as Financial Institutions, the entities from time to time party
thereto as Managing Agents, and JPMorgan Chase Bank, N.A., as the “Administrative Agent” (as
amended, restated, supplemented or otherwise modified from time to time, the “Purchase
Agreement”). The subordination provisions contained herein are for the direct benefit of, and
may be enforced by, the Administrative Agent, the Managing Agents and the Purchasers and/or any of
their respective assignees (collectively, the “Senior Claimants”) under the Purchase
Agreement. Until the date on which all “Capital” outstanding under the Purchase Agreement has been
repaid in full and all other obligations of SPV and/or the Servicer thereunder and under the “Fee
Letter” referenced therein (all such obligations, collectively, the “Senior Claim”) have
been indefeasibly paid and satisfied in full, Originator shall not demand, accelerate, sue for,
take, receive or accept from SPV, directly or indirectly, in cash or other property or by set-off
or any other manner (including, without limitation, from or by way of collateral) any payment or
security of all or any of the indebtedness under this Subordinated Note or exercise any remedies or
take any action or proceeding to enforce the same; provided, however, that (i)
Originator hereby agrees that it will not institute against SPV any proceeding of the type
described in Section 5.1(d) of the Sale Agreement unless and until the Collection Date has
occurred and (ii) nothing in this paragraph shall restrict SPV from paying, or Originator from
requesting, any payments under this Subordinated Note so long as SPV is not required under the
Purchase Agreement to set aside for the benefit of, or otherwise pay over to, the funds used for
such payments to any of the Senior Claimants and further provided that the making of such payment
would not otherwise violate the terms and provisions of the Purchase Agreement. Should any
payment, distribution or security or proceeds thereof be received by Originator in violation of the
immediately preceding sentence, Originator agrees that such payment shall be segregated, received
and held in trust for the benefit of, and deemed to be the property of, and shall be immediately
paid over and delivered to the Administrative Agent for the benefit of the Senior Claimants.

          5. Bankruptcy; Insolvency. Upon the occurrence of any proceeding of the type
described in Section 5.1(d) of the Sale Agreement involving SPV as debtor, then and in any
such event the Senior Claimants shall receive payment in full of all amounts due or to become due
on or in respect of Capital and the Senior Claim (including “Yield” as defined and as accruing
under the Purchase Agreement after the commencement of any such proceeding, whether or not any or
all of such Yield is an allowable claim in any such proceeding) before Originator is entitled to
receive payment on account of this Subordinated Note, and to that end, any payment or distribution
of assets of SPV of any kind or character, whether in cash, securities or other property, in any
applicable insolvency proceeding, which would otherwise be payable to or deliverable upon or with
respect to any or all indebtedness under this Subordinated Note, is hereby assigned to and shall be
paid or delivered by the Person making such payment or delivery (whether a trustee in bankruptcy, a
receiver, custodian or liquidating trustee or otherwise) directly to the Administrative Agent for
application to, or as collateral for the payment of, the Senior Claim until such Senior Claim shall
have been paid in full and satisfied.

Exh. VI-2

 

          6. Amendments. This Subordinated Note shall not be amended or modified except in
accordance with Section 7.1 of the Sale Agreement. The terms of this Subordinated Note may
not be amended or otherwise modified without the prior written consent of the Administrative Agent
and each Managing Agent.

          7. GOVERNING LAW. THIS SUBORDINATED NOTE SHALL BE INTERPRETED AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS AND DECISIONS OF THE STATE
OF NEW YORK. WHEREVER POSSIBLE EACH PROVISION OF THIS SUBORDINATED NOTE SHALL BE INTERPRETED IN
SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER APPLICABLE LAW, BUT IF ANY PROVISION OF THIS
SUBORDINATED NOTE SHALL BE PROHIBITED BY OR INVALID UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE
INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR INVALIDITY, WITHOUT INVALIDATING THE REMAINDER OF
SUCH PROVISION OR THE REMAINING PROVISIONS OF THIS SUBORDINATED NOTE.

          8. Waivers. All parties hereto, whether as makers, endorsers, or otherwise, severally
waive presentment for payment, demand, protest and notice of dishonor. Originator additionally
expressly waives all notice of the acceptance by any Senior Claimant of the subordination and other
provisions of this Subordinated Note and expressly waives reliance by any Senior Claimant upon the
subordination and other provisions herein provided.

          9. Assignment. This Subordinated Note may not be assigned, pledged or otherwise
transferred to any party other than Originator without the prior written consent of the
Administrative Agent, and any such attempted transfer shall be void.

          10. Amendment and Restatement. This Subordinated Note amends and restates in full
that certain Subordinated Note dated May 22, 2003 (the “Existing Subordinated Note”) made
by SPV in favor of Originator and evidences all amounts outstanding thereunder as of the date
hereof as well as amounts hereafter incurred as described above, which Existing Subordinated Note
shall, from and after the date hereof, be of no further force and effect. This Subordinated Note
is given in substitution for, and not in payment of, such Existing Subordinated Note, and is not
intended to constitute a novation of the Existing Subordinated Note.

*****

Exh. VI-3

 

     IN WITNESS WHEREOF, SPV has caused this Subordinated Note to be executed on the date first set
forth above.

	 	 	 	 	 
	 	CONSUMERS RECEIVABLES FUNDING II, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exh. VI-4

 

Schedule

to

AMENDED AND RESTATED SUBORDINATED NOTE

SUBORDINATED LOANS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Unpaid	 	 
	 	 	Subordinated	 	Principal	 	Principal	 	Notation made
	Date	 	Loan	 	Paid	 	Balance	 	by
	 
	 	 	 	 	 	 	 	 

Exh. VI-5exv4waw6

Exhibit 4(a)(6)

Dated as of September 17, 2009

SHAREHOLDERS’ AGREEMENT

by and among

JANSSEN PHARMACEUTICAL,

JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED,

LATAM PROPERTIES HOLDINGS,

JNJ IRISH INVESTMENTS ULC,

ELAN CORPORATION, PLC,

CRIMAGUA LIMITED,

ELAN PHARMA INTERNATIONAL LIMITED

and

JANSSEN ALZHEIMER IMMUNOTHERAPY

 

 

Contents

Clause

	 	 	 	 	 

	1. Interpretation
	 	 	2	 
	2. The business of the Company
	 	 	14	 
	3. Closing
	 	 	14	 
	4. Absence of a Closing
	 	 	15	 
	5. Directors and management
	 	 	15	 
	6. Loan; Cash Contributions; Class C Shares
	 	 	21	 
	7. Applications of cash and priorities on a winding up
	 	 	24	 
	8. Agreement not to compete
	 	 	26	 
	9. Books and Records
	 	 	28	 
	10. Tax matters
	 	 	30	 
	11. Transfer of shares
	 	 	30	 
	12. Transfer following obligatory transfer event
	 	 	32	 
	13. Expert
	 	 	35	 
	14. Closing of the sale and purchase of shares in the Company
	 	 	37	 
	15. Termination and liquidation
	 	 	39	 
	16. Status of the agreement
	 	 	40	 
	17. Confidentiality
	 	 	40	 
	18. Collaboration Agreement matters
	 	 	42	 
	19. Transactions with Wyeth
	 	 	48	 
	20. Parent guarantees
	 	 	48	 
	21. Indemnification; exculpation
	 	 	49	 
	22. Whole agreement
	 	 	49	 
	23. Assignments
	 	 	49	 
	24. Amendment and waiver
	 	 	49	 
	25. Costs
	 	 	50	 
	26. No partnership or agency
	 	 	50	 
	27. Third party rights
	 	 	50	 
	28. Notice
	 	 	50	 
	29. Severance
	 	 	55	 
	30. Further assurance
	 	 	55	 
	31. Counterparts
	 	 	55	 
	32. Survival
	 	 	55	 
	33. Governing law and jurisdiction
	 	 	55	 

 

 

Exhibits

Exhibit A — Memorandum and Articles of Association

Exhibit B — Form of Contribution Agreement

Exhibit C — Form of Deed Poll of Adherence

Exhibit D — Initial Contribution Agreement

Exhibit E — Loan Agreement

Exhibit F — Jupiter Universal Calendar

 

 

THIS SHAREHOLDERS’ AGREEMENT (this “Agreement”) is dated as of September 17, 2009.

Parties

	(1)	 	JANSSEN PHARMACEUTICAL, an Irish Unlimited Company (“Jupiter Parent”).
	 
	(2)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED (F/K/A JUNO NEUROSCIENCES (HOLDING)
LIMITED), an Irish Limited Company (“Jupiter Sub-1”).
	 
	(3)	 	LATAM PROPERTIES HOLDINGS, an Irish Unlimited Company (“Jupiter Sub-2”).
	 
	(4)	 	JNJ IRISH INVESTMENTS ULC, a Canadian Unlimited Liability Company (“Jupiter Sub-3”).
	 
	(5)	 	ELAN CORPORATION, PLC, an Irish Public Limited Company (“Lucky Parent”).
	 
	(6)	 	CRIMAGUA LIMITED, an Irish Limited Company (“Lucky Sub-1”).
	 
	(7)	 	ELAN PHARMA INTERNATIONAL LIMITED, an Irish Limited Company (“Lucky Sub-2”).
	 
	(8)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (F/K/A JUNO NEUROSCIENCES), an Irish Unlimited Company (the
“Company”).

Background

	(A)	 	Lucky Sub-1, a successor in interest to Lucky Sub-2 and itself a successor in
interest to Neuralab Limited, and Wyeth (formerly known as American Home Products
Corporation), a Delaware corporation (“Wyeth”), are party to that certain Research,
Development and Commercialization Agreement dated as of March 17, 2000 (as amended from time
to time, the “Collaboration Agreement”).
	 
	(B)	 	Jupiter Parent, the Company, Lucky Parent and certain Subsidiaries of Lucky Parent
are party to that certain Asset Purchase Agreement dated as of July 2, 2009 (as amended from
time to time, the “Asset Purchase Agreement”), pursuant to which the Collaboration Agreement
and certain related assets will be assigned and transferred to the Company at the Closing.
	 
	(C)	 	The Company was incorporated on June 25, 2009. On incorporation, Jupiter Sub-1
subscribed for 500 ordinary shares of $0.01 each and Jupiter Sub-3 subscribed for 1 ordinary
share (collectively, the “Subscriber Shares”). The Subscriber Shares were redesignated as
Class O-J Shares on June 29, 2009.

1

 

	(D)	 	Immediately prior to the Closing, the Company’s issued and outstanding share capital
consisted of 501 Class O-J Shares of $0.01 each, 500 of which were held by Jupiter Sub-1 and 1
of which was held by Jupiter Sub-3.
	 
	(E)	 	Immediately prior to the Closing, the Memorandum and Articles of Association of the
Company were in the form attached as Exhibit A hereto, and the authorized share
capital of the Company consisted of 501 Class O-J Shares of $0.01 each, 499 Class O-E Shares
of $0.01 each and 1,000,000,000 Class C Shares of $0.01 each.
	 
	(F)	 	At the Closing the Company will issue to Lucky Sub-1 the shares in the capital of the
Company as set forth herein.
	 
	(G)	 	The parties hereby agree to exercise their rights in relation to the Company in
accordance with the terms and conditions of this Agreement.

Agreed terms

	1.	 	Interpretation
	 
	1.1	 	The definitions and rules of interpretation in this clause apply in this Agreement.
	 
	 	 	Accrued and Unpaid Royalty Payments: means, at any time, the royalty payments that, at such
time, (i) have accrued pursuant to the terms and conditions of the Royalty Agreement (if
any) and (ii) have not been paid pursuant to clause 7.1(f) of this Agreement.
	 
	 	 	ADSs: means Lucky Parent Ordinary Shares, as represented by American Depositary Shares
(each ADS representing one Lucky Parent Ordinary Share).
	 
	 	 	Affiliate: of any person means, at any time, another person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under common control
with, such first person at such time.
	 
	 	 	Aggregate Antidilution Amount: means, with respect to any Antidilution Obligatory Transfer
Event, an amount equal to the product of (x) the aggregate number of Lucky Parent Ordinary
Shares or ADSs held by Jupiter Parent and any of its Affiliates immediately prior to
consummation of such Antidilution Obligatory Transfer Event (not to exceed the number so
held immediately following the Closing) and (y) the amount equal to (1) the Reference
Purchase Price minus (2) the Triggering Event Price; provided,
however, that the Aggregate Antidilution Amount shall not exceed $500,000,000
(irrespective of the actual Triggering Event Price).
	 
	 	 	Antidilution Obligatory Transfer Event: means a Change of Control of Lucky Parent that
occurs prior to the date that is nine months from the date of this Agreement under
circumstances in which (i) the transaction or series of transactions giving rise to the
Change of Control are endorsed, approved, recommended or otherwise supported by the

2

 

	 	 	board of directors of Lucky Parent and (ii) the Lucky Parent Ordinary Shares and/or ADSs
are converted into or are otherwise entitled to receive cash with a per share value
(determined as of the date of consummation of the Change of Control) that is less than the
Reference Purchase Price (the cash amount per share so determined, the “Triggering Event
Price”). In the event the Triggering Event Price is denominated in a currency other than
United States dollars, for purposes of determining the Triggering Event Price hereunder,
the applicable cash amount shall be converted into United States dollars at the then
prevailing exchange rate as quoted in the Financial Times on the day on which the related
Antidilution Obligatory Transfer Event is consummated, or if such day is not a Business
Day, as quoted in the Financial Times on the immediately preceding Business Day.
	 
	 	 	Applicable Laws: means any and all applicable laws (whether civil, criminal or
administrative) including, but not limited to, common law, statutes, subordinate
legislation, treaties, regulations, directives, decisions, by-laws, circulars, codes,
orders, notices, demands, decrees, injunctions, guidance, judgments or resolutions of a
parliamentary government, quasi-government, federal, state or local government, statutory,
administrative or regulatory body, court or agency in any part of the world which is in
force or enacted from time to time.
	 
	 	 	A person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially
own”, and shall be deemed to have “Beneficial Ownership” of, any securities as determined
in accordance with Rule 13d-3 under the Exchange Act, as in effect on the date of this
Agreement (but disregarding the phrase “within sixty days” in paragraph (d)(1)(i) thereof),
including, without limitation, pursuant to any contract, arrangement or understanding
(whether or not in writing), any relationship or otherwise. Without duplicative counting
of the same securities by the same person, securities Beneficially Owned by a person shall
be deemed to include (a) all securities Beneficially Owned, directly or indirectly, by such
person, any of such person’s Affiliates and any other person with which or whom such person
or such person’s Affiliates would constitute a Group and (b) all securities which are the
subject of, or the reference securities for, or that underlie, any Derivative Interest held
by such person or any of such person’s Affiliates, with the number of ordinary (or common)
shares or voting securities deemed Beneficially Owned being the notional or other number of
ordinary (or common) shares or voting securities specified in (or determined pursuant to)
the documentation evidencing the Derivative Interest as being subject to be acquired upon
the exercise or settlement of the Derivative Interest or as the basis upon which the value
or settlement amount of such Derivative Interest is to be calculated in whole or in part.
	 
	 	 	Blocking Third Party Intellectual Property: has the meaning given to such term in the
Collaboration Agreement (it being understood and agreed that with respect to any product
based on a Company Product that is not a Product, the same definition shall apply
mutatis mutandis).
	 
	 	 	Board: means the board of directors of the Company as constituted from time to time.

3

 

	 	 	Business Cessation: means, at any time following a Specified Collaboration Termination and
for a continuous period of at least six consecutive months, the failure of the Company to
perform (directly or indirectly through any of its Subsidiaries, licensees, sublicensees,
contractors, or agents (in a good faith manner with a view to furthering the business of
the Company)) any activity involving the planning or conduct of any research, development,
manufacture or commercialization of an R&D Candidate, Product, or any other compound,
molecule, macromolecule, vaccine or pharmaceutical product (other than any such failure to
perform due to a Force Majeure Event or a prohibition, injunction or similar restraint
imposed by Applicable Law or by order of any governmental agency, court or other body of
competent jurisdiction).
	 
	 	 	Business Day: means a day (other than a Saturday or Sunday) when banks in Dublin, Ireland
and New York, New York are open for business.
	 
	 	 	Business Intellectual Property: has the meaning given to such term in the Asset Purchase
Agreement.
	 
	 	 	Calendar Quarter: means a quarter of a Calendar Year, based on the applicable thirteen week
or fourteen week periods under the Jupiter Universal Calendar for that year.
	 
	 	 	Calendar Year: means a calendar year based on the Jupiter Universal Calendar for that year.
	 
	 	 	Capital Call Period: means the period beginning on the date of this Agreement and ending on
the date on which Jupiter Sub-1 and Lucky Sub-1 are no longer required to fund Shared
Contributions pursuant to clause 6.4.
	 
	 	 	Change of Control: means, at any time on or after the date of this Agreement, with respect
to Lucky Parent or Jupiter PubliCo (and any of their respective successors), as the context
may require:

     (a) the acquisition, directly or indirectly (including by way of American Depositary
Shares), by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act), of Beneficial Ownership of 50% or more of either (i) the
then outstanding ordinary (or common) shares of such company (the “Outstanding Common
Stock”) or (ii) the combined voting power of the then outstanding voting securities of such
company entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); provided, however, that for purposes of this subclause (a),
any acquisition of securities of such company by any person pursuant to a transaction which
complies with clauses (i) and (ii) of subclause (c) of this definition shall not constitute
a Change of Control of such company; or

     (b) individuals who, as of the date hereof, constitute the Board of Directors of such
company (the “Incumbent Board”) cease for any reason to constitute at least a majority of
the Board of Directors of such company; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination
for election by such company’s shareholders, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be considered as though such

4

 

individual were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of any person other than the
Board of Directors of such company; or

     (c) consummation of a merger, consolidation, scheme of arrangement or other similar
extraordinary transaction, or sale or other disposition of the Requisite Amount of the
assets (any of the foregoing, a “Business Combination”) of such company, in each case,
unless, immediately following such Business Combination, (i) the individuals and entities
who were the Beneficial Owners, respectively, of the Outstanding Common Stock and
Outstanding Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the
corporation or other entity resulting from such Business Combination (including a
corporation which as a result of such transaction owns the then outstanding securities of
such company or the Requisite Amount of such company’s assets either directly or through
one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Common Stock and
Outstanding Voting Securities, as the case may be, and (ii) more than 50% of the members of
the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of
the action of the Board of Directors of such company, providing for such Business
Combination; or

     (d) without prejudice to clause 11, (i) with respect to Lucky Parent, the acquisition
of ownership, directly or indirectly, beneficially or of record, by any person other than
Lucky Parent or a wholly owned subsidiary of Lucky Parent of any common stock (or other
equity interests) in Lucky Sub-1 or Lucky Sub-2 or (ii) with respect to Jupiter PubliCo,
the acquisition of ownership, directly or indirectly, beneficially or of record, by any
person other than Jupiter PubliCo or a wholly owned subsidiary of Jupiter PubliCo of any
common stock (or other equity interests) in Jupiter Sub-1 or Jupiter Sub-2.

	 	 	Class C Share: means a redeemable senior preferred share of $0.01 in the capital of the
Company which may be issued from time to time to a non-defaulting Shareholder pursuant to
clause 6.8 and to an Electing Holder pursuant to clause 6.10 in exchange for cash
subscriptions. Each Class C Share shall be redeemable (at the option of the Company only)
and shall carry no voting rights or economic rights other than the right to receive
preferential dividends of 15.00% per annum and the right (for each Class C Share) to
receive $1.00 on a winding up or on a redemption, plus any accrued and unpaid preferential
dividends of 15.00% per annum on each Class C Share, as provided in clauses 7.1(c) and (d).
The subscription price per Class C Share shall be $1.00.

5

 

	 	 	Class O-E Share: means a non-voting ordinary share of $0.01 in the capital of the Company.
The Class O-E Shares shall carry no voting rights and shall have the right to receive
payments as provided in clauses 7.1(e) and (g) on a pro rata basis with the Class O-J
Shares.
	 
	 	 	Class O-J Share: means a voting ordinary share of $0.01 in the capital of the Company. The
Class O-J Shares shall carry voting rights and shall have the right to receive payments as
provided for in clauses 7.1(a) and 7.1(b), and, on a pro rata basis with the Class O-E
Shares, as provided for in clauses 7.1(e) and (g).
	 
	 	 	Closing: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	Closing Date: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	Closing Date IP: means the Business Intellectual Property transferred to Company as of the
Closing Date under the Asset Purchase Agreement that is necessary for the research,
development, manufacture or commercialization of any Product or R&D Candidate for use in
the Field.
	 
	 	 	Company Product: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	Contract: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	Contribution Agreement: means a contribution agreement to be entered into in accordance
with clause 6.5 and clause 6.9, in the form attached as Exhibit B hereto.
	 
	 	 	Control: means, with respect to any designated Intellectual Property or right therein
granted by one party to another hereunder, the possession (whether by ownership or license,
other than pursuant to this Agreement) by the party of the ability to grant access and/or a
license to the other as provided herein under such Intellectual Property or right therein
without violating the terms of any agreement or other arrangement with any third party
existing before the date of such grant.
	 
	 	 	Covers the product: means, with respect to a product (including any Product or any finished
form of a Company Product) sold in a country, that (i) a Valid Claim literally encompasses,
whether generically or specifically, the product or an active pharmaceutical ingredient
(whether an R&D Candidate or another Company Product) in such product, or any labeled
indication or use of such product, or (ii) a Valid Claim in a country (whether the country
of sale or another country) where the R&D Candidate or other active pharmaceutical
ingredient of such product sold in the country of sale was manufactured that literally
encompasses, whether generically or specifically, the manufacture of the R&D Candidate in
the product.
	 
	 	 	Deed Poll of Adherence: means a deed poll of adherence to this Agreement in the form
attached as Exhibit C hereto.
	 
	 	 	Derivative Interest: means any derivative security (as defined under Rule 16a-1 under the
Exchange Act) that increases in value as the value of some other ordinary (or

6

 

common) share or voting security increases, including, but not limited to, a long
convertible security, a long call option and a short put option position, in each case
regardless of whether (x) such derivative security conveys any voting rights in such other
ordinary (or common) share or voting security or (y) any transaction hedges the economic
effect of such derivative security; provided that Derivative Interest shall only
include any such derivative security if and to the extent that, by its terms, such
derivative security entitles the holder thereof to receive the underlying ordinary (or
common) shares upon exercise or conversion, as applicable, of such derivative security.

	 	 	Development Program: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Divested Assets: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Encumbrance: means any mortgage, charge (fixed or floating), pledge, lien, hypothecation,
guarantee, trust, right of set-off or other third party right or interest (legal or
equitable), including any assignment by way of security, reservation of title or other
security interest of any kind, howsoever created or arising, or any other agreement or
arrangement (including a sale and repurchase agreement) having a similar effect. The term
“Encumber” shall have a correlative meaning.
	 
	 	 	Enhancing Third Party Intellectual Property: has the meaning given to such term in the
Collaboration Agreement (it being understood and agreed that with respect to any product
based on a Company Product that is not a Product, the same definition shall apply
mutatis mutandis).
	 
	 	 	Exchange Act: means the Securities Exchange Act of 1934, as amended.
	 
	 	 	Field: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	First Commercial Sale: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Force Majeure Event: means any labor strike, act of God, act of a public enemy, act of
terrorism, riot or other event that interrupts the operation of the Company’s business,
which other event arises from circumstances beyond the reasonable control of the Company.
	 
	 	 	Funding Percentage: means, at any time:

     (a) with respect to Jupiter Sub-1, the quotient (expressed as a percentage) obtained
by dividing (i) the total number of Class O-J Shares held by the Jupiter Shareholders at
such time by (ii) the sum of (x) total number of Class O-J Shares held by the Jupiter
Shareholders at such time plus (y) the total number of Class O-E Shares held by the Lucky
Shareholders at such time (such sum, the “Funding Percentage Denominator”); and

7

 

     (b) with respect to Lucky Sub-1, the quotient (expressed as a percentage) obtained by
dividing (i) the total number of Class O-E Shares held by the Lucky Shareholders at such
time by (ii) the Funding Percentage Denominator.

	 	 	G-7 Country: means any of Canada, France, Germany, Italy, Japan, the United Kingdom or the
United States of America.
	 
	 	 	Group: means two or more persons acting, formally or informally, as a partnership, limited
partnership, syndicate or other group or pursuant to any agreement, arrangement or
understanding, in any event, for purpose of acquiring, holding, voting or disposing of
securities.
	 
	 	 	holding company: has the meaning given to it in section 155 of the Companies Act 1963.
	 
	 	 	Indebtedness: of any person means (i) all obligations of such person for borrowed money,
(ii) all obligations of such person evidenced by bonds, debentures, notes or similar
instruments, (iii) all obligations of such person upon which interest charges are
customarily paid by such person, other than trade credit incurred in the ordinary course of
business, (iv) all indebtedness of others secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by) any
Encumbrance on property owned or acquired by such person, whether or not the obligations
secured thereby have been assumed, (v) all capital lease obligations, purchase money
obligations and synthetic lease obligations of such person, (vi) any advance or deferred
purchase agreement if one of the primary reasons behind entering into the agreement is to
finance the acquisition or construction of the asset or service in question, (vii) all
obligations of such person for the reimbursement of any obligor in respect of letters of
credit, letters of guaranty, bankers’ acceptances and similar credit transactions (other
than any such letter, acceptance or similar transaction entered into in the ordinary course
of business and not drawn (or, if drawn, not repaid within five Business Days thereafter))
and (viii) any amount of any liability in respect of any guarantee or counter-indemnity
for any of the items referred to in subclauses (i) through (vii) above.
	 
	 	 	Initial Contribution Agreement: means the Contribution Agreement to be entered into in
accordance with clause 6.1 between Jupiter Sub-1 and the Company, in the form attached as
Exhibit D hereto.
	 
	 	 	Intellectual Property: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	JSC: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Jupiter Shareholders: means Jupiter Sub-1, Jupiter Sub-3 and any of their Affiliates which
may hold Shares as a result of a Transfer permitted by clause 11.2.
	 
	 	 	Jupiter Shares: means, at any time, the Shares then held by the Jupiter Shareholders.
	 
	 	 	Jupiter Universal Calendar: means the universal calendar Jupiter PubliCo uses as part of
its financial reporting system, as provided to the Company from time to time by Jupiter
Sub-1 and consistent with the universal calendar attached as Exhibit F hereto.

8

 

	 	 	License and Grant-Back Agreement: has the meaning given to such term in the Asset Purchase
Agreement.
	 
	 	 	Loan: means the loan made by the Company to Jupiter Sub-2 pursuant to the Loan Agreement.
	 
	 	 	Loan Agreement: means the Loan Agreement to be entered into in accordance with clause 6.2
between the Company and Jupiter Sub-2, in the form attached as Exhibit E hereto.
	 
	 	 	Loss: has the meaning given to such term in the Asset Purchase Agreement.
	 
	 	 	Lucky Parent Ordinary Shares: means ordinary shares of Lucky Parent, par value €0.05 per
share.
	 
	 	 	Lucky Shareholders: means Lucky Sub-1 and any of its Affiliates that may hold Shares as a
result of a Transfer permitted by clause 11.2.
	 
	 	 	Lucky Shares: means, at any time, the Shares then held by the Lucky Shareholders.
	 
	 	 	Non-Triggering Party: means, with respect to any Obligatory Transfer Event (i) Jupiter
Sub-1 if such Obligatory Transfer Event occurs with respect to any Lucky Shares or (ii)
Lucky Sub-1 if such Obligatory Transfer Event occurs with respect to any Jupiter Shares.
	 
	 	 	person: means any individual, firm, company, corporation, partnership, limited liability
company, trust, joint venture, business association, governmental entity or other entity
(whether or not having a separate legal personality).
	 
	 	 	Positive Cash Flow Date: means, following the date of the first commercial sale of any
product by or on behalf of the Company in a G7 Country, the first day of the Calendar
Quarter immediately following the first Calendar Quarter for which the Company and its
Subsidiaries shall have generated positive cash flow from operations on a consolidated
basis (determined in accordance with GAAP or IFRS, as applicable, but without giving effect
to any milestone payments made to the Company pursuant to the Collaboration Agreement
during such first Calendar Quarter).
	 
	 	 	Post-Closing IP: means the Intellectual Property developed by the Company in conducting the
Business during the period running from the Closing Date until any Business Cessation that
is necessary for the research, development, manufacture or commercialization of any Product
or R&D Candidate for use in the Field.
	 
	 	 	Product: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	R&D Candidate: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Research Term: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Reference Purchase Price means $9.32.
	 
	 	 	Requisite Amount: means, at any date of determination, assets which in the aggregate (i)
have a fair market value exceeding 50% of the fair market value of all of the assets of a
person and its Subsidiaries, determined on a consolidated basis as of the last day of the

9

 

	 	 	most recently-completed fiscal quarter of such person ended prior to such date of
deter-mination for which financial statements are in existence or (ii) were used to
generate more than 50% of the gross revenues of a person and its Subsidiaries, determined
on a consolidated basis for the most recent four consecutive fiscal quarters of such person
ended prior to such date of determination for which financial statements are in existence.
	 
	 	 	Research Program: has the meaning given to such term in the Collaboration Agreement.
	 
	 	 	Restricted Period: means the period beginning on the date hereof and ending on the third
anniversary of the Closing Date.
	 
	 	 	Royalty Agreement: means that certain royalty letter agreement between Lucky Sub-2 and the
Company executed pursuant to the Asset Purchase Agreement and dated as of the date hereof,
as amended from time to time.
	 
	 	 	Shareholder: means, at any time, any person that, at such time, holds one or more Shares as
a result of an issuance or Transfer made in compliance with this Agreement.
	 
	 	 	Shares: means the Class C Shares, the Class O-E Shares and the Class O-J Shares in issue
from time to time.
	 
	 	 	Sharing Percentage: means, at any time:

     (a) with respect to any Jupiter Shareholder, the quotient (expressed as a percentage)
obtained by dividing (i) the total number of Class O-J Shares held by such Jupiter
Shareholder at such time by (ii) the sum of (x) the total number of Class O-J Shares held
by all Jupiter Shareholders at such time plus (y) the total number of Class O-E Shares held
by all Lucky Shareholders at such time (such sum, the “Sharing Percentage Denominator”);
and

     (b) with respect to any Lucky Shareholder, the quotient (expressed as a percentage)
obtained by dividing (i) the total number of Class O-E Shares held by such Lucky
Shareholder at such time by (ii) the Sharing Percentage Denominator.

	 	 	Specified Activities: means the use, by Lucky Parent and/or any of its subsidiaries, of
medical science liaisons (MSLs) and visiting key opinion leaders (KOLs) at no more than 10%
of the major teaching hospitals in the United States (as selected with Lucky Parent) and no
more than 10% of the clinical trial centers for the development of products under the
Collaboration Agreement (as selected with Lucky Parent), in each case, for the purpose of
obtaining reasonable and customary insight into the treatment of Alzheimer’s disease and
gaining and enhancing scientific knowledge regarding Alzheimer’s disease; provided
that (i) all such performance shall be in compliance with the policies, protocols,
procedures and such other terms and conditions as the Company may specify from time to
time, including with respect to permissible scope of activity, treatment of confidential
information, health care compliance and adverse event reporting requirements and (ii) in no
event shall such performance exceed 20% of the total efforts by or on behalf of the Company
at any such teaching hospitals or clinical trial centers.

10

 

	 	 	Specified Collaboration Documents: has the meaning given to such term in the Asset
Purchase Agreement.
	 
	 	 	Specified Collaboration Termination: means a termination of the Collaboration Agreement (i)
pursuant to Sections 13.2.1, 13.6.1 or 13.7.3 of the Collaboration Agreement, in each case,
if the Company is the terminating party, (ii) pursuant to Section 13.5.1 of the
Collaboration Agreement, if Wyeth (or its successor) is the terminating party or (iii) that
is effected by voluntary agreement of the Company and Wyeth (or its successor), other than
pursuant to any express Section of the Collaboration Agreement.
	 
	 	 	Subsidiary: means, with respect to any person and at any time, another person, an amount of
the voting securities, other voting ownership or voting partnership interests of which that
is sufficient to elect at least a majority of its board of directors or other governing
body (or, if there are no such voting interests, 50% or more of the equity interests of
which) is owned directly or indirectly by such first person or by another subsidiary of
such person at such time.
	 
	 	 	Transfer: means, whether directly or indirectly (by merger, scheme of arrangement,
operation of law or otherwise), any sale, assignment, license, sublicense, conveyance,
transfer, donation or any other means to dispose of, or pledge, hypothecate or otherwise
Encumber in any manner whatsoever, or permit or suffer any Encumbrance of, any Shares or
any interest in Shares or other interest in the Company.
	 
	 	 	Triggering Parties: means, with respect to any Obligatory Transfer Event (i) the Jupiter
Shareholders if such Obligatory Transfer Event occurs with respect to any Jupiter Shares or
(ii) the Lucky Shareholders if such Obligatory Transfer Event occurs with respect to any
Lucky Shares.
	 
	 	 	Valid Claim: means, in reference to a particular time that a product is sold in a country,
any claim that at such time is: (a) granted in any unexpired and issued patent included in
the Closing Date IP or Post-Closing IP that has not been revoked or held unenforceable or
invalid by a final decision of a court or other governmental agency of competent
jurisdiction, or that has not been disclaimed, denied or admitted to be invalid or
unenforceable through reissue or disclaimer or otherwise; or (b) pending in a
nonprovisional patent application included in the Closing Date IP or the Post-Closing IP
that has not lapsed or been cancelled, withdrawn or abandoned without the possibility of
revival, but excluding any such claim that is pending after the earlier of fifteen (15)
years from the earliest priority date claimed for such application and ten (10) years from
the first commercial sale of such product (where the meaning of “first commercial sale” has
the same meaning as First Commercial Sale as applicable mutatis mutandi).
	 
	1.2	 	Each of the following terms is defined in the clause of this Agreement indicated
below:

	 	 	 
	Term:	 	Clause:
	Agreement
	 	Recital
	Asset Purchase Agreement
	 	Recital

11

 

	 	 	 
	Term:	 	Clause:
	Business
	 	2.1
	Call Notice
	 	12.4
	Close-Out License
	 	18.7
	Close-Out Licensee
	 	18.7
	Collaboration Agreement
	 	Recital
	Company
	 	Recital
	Competitive Activities
	 	8.1(a)
	Competing Assets
	 	8.3
	Consolidation Objective
	 	5.21
	Confidential Information
	 	17.1
	Divested Asset Commitment
	 	18.5
	Early Reference Date
	 	18.7
	Electing R&D Holder
	 	18.10
	Election Date
	 	18.5
	Election Notice
	 	18.7
	Electing Holder
	 	6.10
	Experts
	 	12.3
	Fair Value
	 	13.1
	First Offer Notice
	 	11.3
	Funding Default
	 	6.7
	GAAP
	 	9.5
	IFRS
	 	9.5
	Indemnitee
	 	18.9
	Indemnity Amount
	 	6.2
	Jupiter Expert
	 	12.3
	Jupiter Parent
	 	Recital
	Jupiter PubliCo
	 	10.2
	Jupiter Sub-1
	 	Recital
	Jupiter Sub-2
	 	Recital
	Jupiter Sub-3
	 	Recital
	Jupiter Sub Director
	 	5.2
	Lucky Expert
	 	12.3
	Lucky Parent
	 	Recital
	Lucky Sub-1
	 	Recital
	Lucky Sub-2
	 	Recital
	Lucky Sub Director
	 	5.2
	Non-Collaboration Candidate
	 	18.10
	Non-Transferring Shareholder
	 	11.3
	Obligatory Transfer Event
	 	12.1
	Obligatory Transfer Notice
	 	12.2
	Priority Dividend
	 	6.3
	Priority Dividend Amount
	 	6.3

12

 

	 	 	 
	Term:	 	Clause:
	Refund Option
	 	6.8
	Repayment Amount
	 	6.2
	Rights Holder
	 	18.9
	Sale Shares
	 	12.3
	Shared Contributions
	 	6.4
	Subscriber Shares
	 	Recital
	Third Bank
	 	13.1
	Transferring Shareholders
	 	11.3
	Valuation
	 	13.1
	Wyeth
	 	Recital

	1.3	 	All dollar ($) amounts specified in this Agreement are United States dollar amounts.
	 
	1.4	 	References to persons are deemed to include references to natural persons, firms,
partnerships, companies, corporations, associations, bodies corporate, trusts, investment
funds, governments, states or agencies (in each case whether or not having a separate legal
personality), but references to individuals are deemed to be references to natural persons
only.
	 
	1.5	 	Clause headings shall not affect the interpretation of this Agreement. A reference to
a clause is a reference to a clause of this Agreement. Words importing the singular include
the plural and vice versa and words importing the masculine include references to the feminine
and neuter and vice versa.
	 
	1.6	 	A reference to writing or written includes faxes but not e-mail.
	 
	1.7	 	Where the words include, includes or including are used in this Agreement, they are
deemed to have the words “without limitation” following them.
	 
	1.8	 	Any obligation in this Agreement on a person not to do something includes an
obligation not to agree or allow that thing to be done.
	 
	1.9	 	Where the context permits, other and otherwise are illustrative and shall not limit
the sense of the words preceding them.
	 
	1.10	 	References to times of day are, unless the context requires otherwise, to Dublin,
Ireland time and references to a day are to a period of 24 hours running from midnight on the
previous day.

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	1.11	 	References to acts, statutory instruments and other legislation are, unless the
context requires otherwise, references to legislation operative in Ireland and to such
legislation as modified, consolidated, amended or re-enacted from time to time and any
subordinate legislation made under that legislation from time to time.
	 
	2.	 	The business of the Company
	 
	2.1	 	The business of the Company shall be to carry out business of the type contemplated
by the Collaboration Agreement and business and activities in furtherance thereof (the
“Business”).
	 
	3.	 	Closing
	 
	3.1	 	Immediately prior to the Closing, Jupiter Sub-1 and Jupiter Sub-3 shall procure that
shareholder and board resolutions of the Company are passed as may be necessary to:

	 	(a)	 	approve the resignation of Gerard Anthony Collins and Charles Bryan
Mohally as directors of the Company, and the resignation of Gerard Anthony Collins
as secretary of the Company;
	 
	 	(b)	 	appoint each of the initial Jupiter Sub Directors (as designated by
Jupiter Parent);
	 
	 	(c)	 	appoint each of the initial Lucky Sub Directors (as designated by Lucky
Parent);
	 
	 	(d)	 	appoint the chairman of the Board (as designated by Jupiter Parent);
	 
	 	(e)	 	appoint the secretary of the Company (as designated by Jupiter Parent);
	 
	 	(f)	 	resolve that the registered office of the Company shall be located at
Little Island Industrial Estate, Little Island, Co. Cork, in the Republic of
Ireland;
	 
	 	(g)	 	appoint PricewaterhouseCoopers LLP as the auditors of the Company; and
	 
	 	(h)	 	resolve that the Company’s financial year shall end on the last day of the
applicable Calendar Year.

	3.2	 	At Closing:

	 	(a)	 	the parties shall procure (i) that the Company shall issue credited as
fully paid 499 Class O-E Shares to Lucky Sub-1 in consideration for the sale and
transfer of the Acquired Assets contemplated by the Asset Purchase Agreement and
(ii) that Lucky Sub-1 is entered in the register of members of the Company as the
holder of such Class O-E Shares and that a share certificate is issued to Lucky
Sub-1 in respect of all such shares (which certificate shall contain appropriate
legends regarding transferability); and

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	 	(b)	 	the parties shall procure that the Initial Contribution Agreement and Loan
Agreement are executed by Jupiter Sub-1, Jupiter Sub-2 and the Company (as
applicable).

	3.3	 	The parties waive, or agree to procure the waiver of, any rights or restrictions
which may exist in the articles of association of the Company or otherwise which might prevent
the allotment and issue of the shares contemplated by clause 3.2.
	 
	4.	 	Absence of a Closing
	 
	4.1	 	In the event the Asset Purchase Agreement is terminated in accordance with its terms
prior to the Closing, this Agreement shall become null and void and of no further force and
effect at the time of such termination.
	 
	5.	 	Directors and management
	 
	5.1	 	Subject to the following sentence, the Board is hereby granted full and complete
authority to supervise and manage the business, property and affairs of the Company and its
Subsidiaries. Subject to Applicable Law, the Board is hereby empowered to take, and to cause
the Company and its Subsidiaries to take, any and all actions the Board deems necessary or
appropriate in its discretion, subject only to the prior written approval of each Shareholder
(which approval shall not be unreasonably withheld) before taking any action in relation to:

	 	(a)	 	any amalgamation or merger of the Company with any other company or
business undertaking (whether by scheme of arrangement or otherwise), or any sale
or other disposition of all or substantially all the assets of the Company and its
Subsidiaries, taken as a whole;
	 
	 	(b)	 	any termination of the Collaboration Agreement pursuant to Section 13.5
(Failure to Reach Certain Net Sales Levels) thereof (it being agreed that the
Company shall consult with Lucky Parent in connection with any termination of the
Collaboration Agreement by the Company but that the consent of Shareholders shall
not be required for any terminations of the Collaboration Agreement other than
pursuant to Section 13.5);
	 
	 	(c)	 	without limiting clause 19.1, any amendment or modification of, or waiver
to, the terms of the Collaboration Agreement, which amendment, modification or
waiver by its terms (i) reduces the Company’s share of Pre-tax Profits (as defined
in the Collaboration Agreement) or (ii) affects the economic interests of a Jupiter
Shareholder in this Agreement differently than the economic interests of a Lucky
Shareholder in this Agreement;

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	 	(d)	 	any sale or assignment of the Company’s interest in the Collaboration
Agreement;
	 
	 	(e)	 	any sale or assignment of any asset of the Company or any of its
Subsidiaries that would adversely affect in any material respect the Company’s
ability to perform under the Collaboration Agreement (other than compulsory sales
or assignments required by Applicable Law);
	 
	 	(f)	 	without limiting clause 16.2, any amendment to the Company’s memorandum of
association or articles of association (for clarity, any increase to the authorized
Class C Shares of the Company shall not be regarded as an amendment to the
Company’s memorandum of association or articles of association);
	 
	 	(g)	 	at any time during the Capital Call Period (other than following a Funding
Default by Lucky Sub-1), the incurrence of Indebtedness by the Company or any of
its Subsidiaries (it being agreed that the consent of Shareholders shall not be
required for the actions referred to in this subclause (g) at any time following
the Capital Call Period), except Indebtedness owing to the Company or a Subsidiary
of the Company; provided that no Person other than the Company or a
Subsidiary of the Company holds any interest in such Indebtedness;
	 
	 	(h)	 	at any time during the Capital Call Period and other than the issuance of
Class C Shares pursuant to clause 6, the creation, allotment or issuance of any
share or other equity interest in the Company (or any Derivative Interest in
respect thereof), unless such creation, allotment or issuance is made pro rata to
the Shareholders in accordance with their respective Sharing Percentage (it being
agreed that, subject to clauses 6.9 and 6.10, the consent of Shareholders shall not
be required for the actions referred to in this subclause (h) at any time following
the Capital Call Period);
	 
	 	(i)	 	other than the redemption of Class C Shares pursuant to clause 7, the
repurchase or redemption of any other share or other equity interest in the Company
(or any Derivative Interest in respect thereof), unless such repurchase or
redemption is made pro rata to the Shareholders in accordance with their respective
Sharing Percentage;
	 
	 	(j)	 	any transaction, by the Company or any of its Subsidiaries, with any
Affiliate of the Company, except (i) transactions on terms and conditions that are
consistent in all material respects with the results that would have been realized
if the Company or such Subsidiary had engaged in such transaction under the same
circumstances with an unaffiliated third party (such determination to be made in
good faith by the Company applying the guidelines and methodologies of Affiliated
entities of the Company), (ii) transactions between or among the Company and its
Subsidiaries and (iii) transactions expressly contemplated by this Agreement;

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	 	(k)	 	the incurrence, by the Company or any of its Subsidiaries, of any expense
not relating to the Business;
	 
	 	(l)	 	the registration of any Shares of the Company in connection with a
proposed initial public offering or any listing of any Shares on an exchange or
other quotation system;
	 
	 	(m)	 	the performance, by the Company or any of its Subsidiaries, of any
manufacturing activities (it being agreed that, subject to subclause (j) above, the
consent of Shareholders shall not be required for manufacturing activities
performed by any Affiliate of Jupiter Parent (other than the Company and its
Subsidiaries) on the Company’s behalf or at its request, whether through
subcontracting or other arrangements);
	 
	 	(n)	 	other than amendments expressly contemplated by clause 6.2, the amendment,
waiver or termination of the Loan Agreement at any time prior to the repayment in
full of the Loan (it being agreed that demands for payment of principal in respect
of the Loan shall not require the consent of Shareholders);
	 
	 	(o)	 	at any time prior to the termination of the Collaboration Agreement, the
winding up of the Company; or
	 
	 	(p)	 	without limiting subclause (h) above, the variation of rights attaching to
any of the Shares.

	 	 	Except as otherwise provided in the preceding sentence, neither Lucky Parent nor any of its
Affiliates shall have any right to approve of or consent to any actions of the Board, the
Company or any of its Subsidiaries (other than any right arising by virtue of Lucky
Parent’s right to appoint the Lucky Sub Directors). Each party acknowledges and agrees
that, except as otherwise provided in this clause 5.1, the Board will manage the affairs of
the Company and its Subsidiaries in accordance with its own business judgment and the
exercise of such judgment will materially affect the economic returns realized by the
Shareholders hereunder and by Lucky Sub-2 under the Royalty Agreement. Each party
understands the significant risks and uncertainties relating to the research, development
and commercialization of pharmaceutical products, including the possibility that there may
be no First Commercial Sale of any product under the Collaboration Agreement, and each
party agrees not to challenge any decision or action taken by the Board in good faith in
the exercise of its own business judgment, except to the extent any such action or decision
violates any provision of this Agreement and without prejudice to any party’s rights under
Applicable Law. For clarity, no party shall be required to take any action on the
Company’s behalf or in furtherance of its business other than actions pursuant to the
express obligations of such party under this Agreement.
	 
	5.2	 	The Board shall be comprised of seven directors, five of whom shall be appointed by
the Jupiter Shareholders (each, a “Jupiter Sub Director”) and two of whom shall be appointed
by the Lucky Shareholders (each, a “Lucky Sub Director”). At least one

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	 	 	Lucky Sub Director and at least three Jupiter Sub Directors shall be residents of the
Republic of Ireland. The Lucky Sub Directors shall not, and neither is authorized to, take
any actions on behalf of the Company or any of its Subsidiaries, other than actions
expressly authorized by this Agreement and actions contemplated by this clause 5 that are
incidental to the office of a director. In the event any Subsidiary of the Company shall
form a board of directors (or other similar governing body), or if the Board or any such
board of directors or governing body of a Subsidiary shall form any committee or
sub-committee, the rights of the Jupiter Shareholders and the Lucky Shareholders to appoint
directors to the Board shall apply mutatis mutandis to any such board of directors (or
other governing body) or to any such committee or sub-committee, and any such
representation shall be in direct proportion to the Jupiter Shareholders’ and the Lucky
Shareholders’ representation on the Board.
	 
	5.3	 	Each director shall serve until the earlier of such director’s death, resignation or
replacement in accordance with this Agreement.
	 
	5.4	 	The post of chairman shall be held by a Jupiter Sub Director, as designated by
Jupiter Parent. The chairman shall not have a casting vote. If the chairman for the time being
is unable to attend any meeting of the Board, Jupiter Parent shall be entitled to appoint
another Jupiter Sub Director to act as chairman at such meeting.
	 
	5.5	 	Each of Jupiter Parent and Lucky Parent shall have the sole right to replace its
appointees to the Board (or fill any vacancy on the Board due to the death or resignation of
any of its appointees to the Board) at any time and from time to time in its discretion upon
written notice to the other Shareholders and to the Company. Any such replacement (or
appointment) shall take effect on the date on which notice of the same is received by the
other Shareholders and the Company or, if a later date is given in the notice, on such later
date. For clarity, no director may be removed from the Board by any person other than the
party that appointed such director.
	 
	5.6	 	The party replacing a director shall indemnify and keep indemnified the Company
against any claim connected with the director’s removal from office.
	 
	5.7	 	Any director may resign at any time by giving written notice to the Shareholders and
to the Company. Any such resignation shall take effect on the date on which notice of the same
is received by the Shareholders and the Company or, if a later date is given in the notice, on
such later date.
	 
	5.8	 	A director may, and at the request of a director the secretary shall, call a meeting
of the Board; provided that (i) there shall be at least four meetings of the Board in
each

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	 	 	Calendar Year and (ii) not more than one meeting of the Board may be called (or requested)
by the Lucky Sub Directors (taken together) during any three-month period.
	 
	5.9	 	Meetings of the Board may be held in person at such location in the Republic of
Ireland as may be agreed by the Shareholders (it being agreed that all meetings of the Board
shall be held with a majority of directors participating in the meeting physically present in
the Republic of Ireland). Subject to the prior sentence, any director may attend any meeting
of the Board by way of teleconference, videoconference or other similar communications
equipment so long as all directors participating in such meeting can hear one another at the
time of such meeting. Participation in a meeting of the Board via teleconference,
videoconference or other similar communications equipment in accordance with the preceding
sentence shall constitute presence in person at such meeting.
	 
	5.10	 	The parties shall ensure that at least seven days’ notice of a meeting of the Board
is given to all directors then constituting the Board, accompanied by an agenda specifying in
reasonable detail the matters to be raised at the meeting. Matters absent from such agenda
may not be raised at a meeting of the Board unless at least one Jupiter Sub Director and one
Lucky Sub Director consent (it being agreed that the failure of any director to raise an
objection shall be deemed consent of such director for purposes of this sentence).
	 
	5.11	 	A shorter period of notice of a meeting of the Board may be given if at least one
Jupiter Sub Director and one Lucky Sub Director so agree in writing; provided that the
prior consent of a Lucky Sub Director shall not be required if (a) the urgency of the matter
giving rise to the meeting in question requires the Board to promptly take action (as
reasonably determined by the Jupiter Sub Directors) and (b) at least 24 hours has elapsed from
the time a notice of such meeting was given to the Lucky Sub Directors.
	 
	5.12	 	The quorum at any meeting of the Board (including adjourned meetings) for which
notice was provided is a majority of the directors then constituting the Board. For clarity,
neither Lucky Sub Director shall be required to be present for quorum purposes if the
requirements of the preceding sentence are otherwise satisfied. A majority of the directors
present at a meeting of the Board may adjourn the meeting, whether or not a quorum is present.
	 
	5.13	 	No business shall be conducted at any meeting of the Board unless a quorum is
present at the beginning of the meeting and at the time when there is to be voting on any
business.
	 
	5.14	 	If a quorum is not present within 30 minutes after the time specified for the
meeting of the Board in the notice of meeting, then the meeting shall be adjourned.

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	5.15	 	The parties shall use their respective reasonable endeavours to ensure that every
meeting of the Board and every general meeting of the Company has the requisite quorum.
	 
	5.16	 	The vote of a majority of the directors present at a meeting of the Board at which a
quorum is present shall be the act of the Board. For clarity, no vote of either Lucky Sub
Director shall be required if the requirements of the preceding sentence are otherwise
satisfied.
	 
	5.17	 	The Board may take action in the absence of a meeting upon the written consent of
each director then constituting the Board.
	 
	5.18	 	If any Jupiter Sub Director or any Lucky Sub Director is absent from a meeting of
the Board, the absent director may appoint any person to act as his alternate at such meeting.
For the purposes of such meeting the alternate director:

	 	(a)	 	shall be deemed to be the Jupiter Sub Director or Lucky Sub Director that
shall have appointed him for all purposes of this Agreement, and such alternate
director may vote in place of the absent Jupiter Sub Director or Lucky Sub
Director; and
	 
	 	(b)	 	where the person appointed as an alternate is already a director of the
Company in his own right, such person shall also be a director (and may vote) in
his own right.

	5.19	 	The Shareholders and the Board shall regularly monitor and review the tax residency
status of the Company and, where necessary, take such action as may be required or considered
necessary or appropriate to ensure that the Company shall at all times remain resident for tax
purposes in the Republic of Ireland.
	 
	5.20	 	The Shareholders and the Board shall procure that all key strategic decisions
relating to the Business shall be discussed, resolved and made in the Republic of Ireland.
	 
	5.21	 	The parties hereby acknowledge that the provisions of this Agreement have been
structured with a view to permitting the financial results of the Company to be consolidated
with the consolidated financial statements of Jupiter PubliCo, subject to any accounting for
minority interest (the “Consolidation Objective”). In the event that, as a result of a change
in GAAP, IFRS or other Applicable Law after the date of this Agreement, Jupiter PubliCo is
advised by its independent auditors that the foregoing provisions of this clause 5 conflict
with the Consolidation Objective, the parties shall cooperate in good faith to prepare,
execute and deliver an amendment to this Agreement to revise such of the foregoing provisions
of this clause 5 as are necessary (based on the advice of such independent auditors) to give
effect to the Consolidation Objective;

20

 

	 	 	provided that nothing in this clause 5.21 shall require Lucky Parent or any of its
Affiliates to prepare, execute or deliver any such amendment in the event the terms of such
amendment could reasonably be expected to adversely affect, in any material respect, the
economic interests of the Lucky Shareholders in this Agreement.
	 
	6.	 	Loan; Cash Contributions; Class C Shares
	 
	6.1	 	At Closing Jupiter Sub-1 shall provide a cash contribution to the Company in the
amount of five hundred million dollars ($500,000,000.00) pursuant to the terms of the Initial
Contribution Agreement.
	 
	6.2	 	Immediately following Closing, the Company and Jupiter Sub-2 shall enter into the
Loan Agreement, and the Company shall fund the Loan. In the event Jupiter Sub-2 repays all or
any portion of the principal amount of the Loan to fund or otherwise cover all or any portion
of a Loss for which the Company is entitled to indemnification under Article VIII of the Asset
Purchase Agreement (the amount of such Loss funded or covered by a Loan repayment, the
“Repayment Amount”) and the Company subsequently is indemnified for all or any portion of such
Loss at any time prior to the Positive Cash Flow Date (the amount of any such indemnity, not
to exceed the Repayment Amount, the “Indemnity Amount”), then upon receipt of the Indemnity
Amount the Company shall loan to Jupiter Sub-2 an amount equal to the Indemnity Amount (and in
connection therewith Jupiter Sub-2 hereby agrees to execute any and all amendments to the Loan
Agreement reasonably requested by the Company to increase the principal amount of the Loan to
reflect the additional loan to Jupiter Sub-2 referred to above). The parties agree that under
no circumstances shall interest or other charges accrue or be payable in respect of the Loan.
	 
	6.3	 	Jupiter Sub-2 shall repay the principal amount of the Loan at the times and in the
amounts required by the Board. Once the Positive Cash Flow Date is determined to have
occurred or a decision is made by the parties to voluntarily wind-up the Company, Jupiter
Sub-2 shall promptly repay the then unpaid principal amount of the Loan (if any) (such amount,
the “Priority Dividend Amount”), and upon receipt thereof the Company shall declare and make a
payment on the Class O-J Shares (pro rata to the holders of the Class O-J Shares) equal to the
Priority Dividend Amount (such dividend, the “Priority Dividend”) pursuant to clause 7.1(b).
If for legal or other reasons the Priority Dividend cannot be paid by the Company on such
date, the parties shall procure that it shall be paid as soon thereafter as is possible.
	 
	6.4	 	At any time after the earlier of (i) Jupiter Sub-2 has repaid the Loan in full and
(ii) the Positive Cash Flow Date, cash contributions shall be offered by Jupiter Sub-1 and
Lucky Sub-1 (pro rata in accordance with their respective Funding Percentage) at the times and

21

 

	 	 	in the amounts required by the Board, until Jupiter Sub-1 and Lucky Sub-1 (taken together)
shall have offered and the Company shall have accepted an aggregate of four hundred million
dollars ($400,000,000.00) pursuant to this clause 6.4 (the “Shared Contributions”). In
connection with any Shared Contribution, and with the prior written consent of Jupiter
Parent (not to be unreasonably withheld), Lucky Parent may designate any Affiliate of Lucky
Sub-1 to fund, on Lucky Sub-1’s behalf, such Shared Contribution, and in connection
therewith the parties shall enter into any reasonable arrangement requested by the Board to
implement such alternative funding of the Shared Contribution at issue. For clarity, any
such designation in accordance with the preceding sentence shall not relieve Lucky Sub-1
from its funding obligation with respect to the relevant Shared Contribution at issue,
unless and until its allocable portion of such Shared Contribution is funded by the
applicable designee.
	 
	6.5	 	Notwithstanding anything to the contrary, (i) the amount of any Loan repayment or
cash contribution required by the Board shall not be greater than the projected cash needs of
the Company and its Subsidiaries during the 180 days following the applicable repayment or
contribution, as determined by the Board in good faith (for clarity, nothing in this subclause
(i) shall limit the number of Loan repayments or capital contributions the Board may require
during any period), (ii) in the event Jupiter Sub-1 repays all or any part of the Loan
pursuant to clause 6.3 at any time after the Positive Cash Flow Date in an amount in excess of
the Priority Dividend Amount, Jupiter Sub-1 and Lucky Sub-1 shall enter into any reasonable
arrangement requested by the Board so that such excess is treated and funded as a Shared
Contribution under clause 6.4 and (iii) no party shall be required to provide cash
contributions or other capital to the Company in any amount or at any time other than as
expressly provided for in this clause 6. For clarity, the aggregate amount of capital
contributions required to be offered by Jupiter Sub-1 and Lucky Sub-1 under clause 6.4 shall
be permanently reduced, on a dollar-for-dollar basis, as each contribution is made. All
contributions pursuant to clause 6.4 shall be denominated in United States dollars, and shall
be payable in integrals of $1.00. In connection with each contribution pursuant to clause
6.4, the relevant contributing Shareholder and the Company shall execute a Contribution
Agreement in respect of each such capital contribution.
	 
	6.6	 	Each of Jupiter Sub-1 and Lucky Sub-1 agree to fund any and all capital contributions
they are required to offer pursuant to clause 6.4 in immediately available funds in United
States dollars within ten Business Days after the Board shall have provided written notice of
the same (it being agreed that the Company hereby accepts any and all contributions offered
pursuant to clause 6.4 without further action by any party).
	 
	6.7	 	In the event Jupiter Sub-2 fails to satisfy a repayment requirement in respect of the
Loan under clause 6.3, or in the event Jupiter Sub-1 or Lucky Sub-1 fails to fund their share
of a Shared Contribution for any reason (any such failure, a “Funding Default”), the

22

 

	 	 	Company and the non-defaulting Shareholder shall be entitled, in connection with such
Funding Default, to take all actions available under Applicable Law to enforce the terms of
this Agreement. In the event of a Funding Default by Jupiter Sub-1 or Jupiter Sub-2, the
Company shall provide Lucky Parent with prompt written notice thereof.
	 
	6.8	 	In the event a Funding Default shall occur with respect to any Shared Contribution,
the non-defaulting Shareholder shall have the option (the “Refund Option”), exercisable by
submitting written notice to the Company within thirty days of such default, to not proceed
with the funding of its allocable portion of such Shared Contribution (in which case any
amounts actually funded by the non-defaulting Shareholder in respect of such Shared
Contribution shall be promptly refunded by the Company). If the Refund Option is not
exercised, and without prejudice to clause 12.1(a), the non-defaulting Shareholder shall
designate, by submitting written notice to the Company within fifteen days of the expiration
or waiver of the Refund Option, the treatment of its share of such Shared Contribution as
either (i) Indebtedness of the Company payable as and when demanded by the non-defaulting
Shareholder and accruing interest at a rate per annum equal to 6.00% from the date initially
funded or (ii) a subscription of Class C Shares, in which case the Company shall (x) issue to
the non-defaulting Shareholder one fully-paid Class C Share for every one dollar of the
related contribution funded by the non-defaulting Shareholder, (y) enter such non-defaulting
Shareholder in the register of members of the Company as the holder of such Class C Shares and
(z) if requested by such non-defaulting Shareholder, issue a share certificate to such
non-defaulting Shareholder in respect of the Class C Shares so issued to such non-defaulting
Shareholder (which certificate shall contain appropriate legends regarding transferability).
In the event the non-defaulting Shareholder does not make such a designation within the
relevant fifteen-day period, the Shareholder shall be deemed to have selected the issuance of
Class C Shares under subclause (ii) above. If the Refund Option is exercised, and without
prejudice to clause 12.1(a), the necessary funds may be raised as determined by the Board,
including by obtaining external debt financing.
	 
	6.9	 	In the event the Board determines that the Company requires funds in excess of those
provided for by clauses 6.3 or 6.4, the Board shall, in the case of each such determination,
first offer Jupiter Sub-1 and Lucky Sub-1 the opportunity to provide additional cash
contributions to the Company. Any such opportunity shall be offered to Jupiter Sub-1 and
Lucky Sub-1 pro rata in accordance with their respective Funding Percentage. For clarity, no
contribution shall be made pursuant to this clause 6.9 unless both Jupiter Sub-1 and Lucky
Sub-1 (or any designee as provided below) fund the full amount offered to them in accordance
with the preceding sentence. The Company, Jupiter Sub-1 and Lucky Sub-1 (or any designee as
provided below) shall execute a Contribution Agreement in respect of any and all contributions
offered pursuant to this clause 6.9. In connection with any contribution offered pursuant to
this clause 6.9, and with the prior written consent of Jupiter Parent (not to be unreasonably
withheld), Lucky

23

 

	 	 	Parent may designate any Affiliate of Lucky Sub-1 to fund, on Lucky Sub-1’s behalf, its
allocable portion of such contribution, and in connection therewith the parties shall enter
into any reasonable arrangement requested by the Board to implement such alternative
funding of the contribution at issue.
	 
	6.10	 	In the event one of Lucky Sub-1 or Jupiter Sub-1 declines to provide a contribution
offered pursuant to clause 6.9 (the party not so declining, with respect to any such offer, an
“Electing Holder”) and the Electing Holder wishes to provide all or any portion of the
required funds, the Electing Holder shall have the option to contribute to the Company all or
any portion of the required funds. Upon the funding by the Electing Holder of any such
contribution, the Company shall: (a) issue to the Electing Holder one fully-paid Class C Share
for every one dollar of the contribution funded by the Electing Holder; (b) enter such
Electing Holder in the register of members of the Company as the holder of such Class C
Shares; and (c) if requested by such Electing Holder, issue a share certificate to such
Electing Holder in respect of the Class C Shares so issued to such Electing Holder (which
certificate shall contain appropriate legends regarding transferability). In the event both
Lucky Sub-1 and Jupiter Sub-1 decline to provide a contribution pursuant to clause 6.9 and
this clause 6.10, the necessary funds may be raised as determined by the Board, including by
obtaining external debt financing.
	 
	7.	 	Applications of cash and priorities on a winding up
	 
	7.1	 	Subject to the requirements of Applicable Law, within 75 days after each Calendar
Quarter (and on such other days the Board may determine), the Company shall transfer all cash
(if any) then available (as determined by the Board in good faith after taking into account
all projected cash requirements and needs of the Company over a foreseeable period (including
the repayment or payment of any Indebtedness or other liabilities), all projected revenue over
such period and all appropriate reserves) to the Shareholders in the following priority:

	 	(a)	 	first, in the event that Jupiter Sub-1 does not exercise its
rights under clause 12.4 in respect of an Obligatory Transfer Event that is an
Antidilution Obligatory Transfer Event, in payment of a dividend on the Class O-J
Shares in an amount equal to the Aggregate Antidilution Amount to the Jupiter
Shareholders pro rata in proportion to the number of Class O-J Shares then held by
each of them, until such time as the full amount of the Aggregate Antidilution
Amount is paid to the Jupiter Shareholders;
	 
	 	(b)	 	second, in payment of the Priority Dividend (if any) to the
Jupiter Shareholders pro rata in proportion to the number of Class O-J Shares then
held by each of them, until such time as the full Priority Dividend Amount is paid
to the Jupiter Shareholders;

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	 	(c)	 	third, to Jupiter Sub-1 and Lucky Sub-1 pro rata in proportion to
the number of Class C Shares then held by each of them (if any), until such time as
no accrued but unpaid preferential dividends on such shares shall remain
outstanding (with such preferential dividends accruing from the date the applicable
Class C Share was issued);
	 
	 	(d)	 	fourth, to fund the redemption or repayment of the Class C Shares
held by Jupiter Sub-1 and Lucky Sub-1 pro rata in proportion to the number of Class
C Shares held by them, for an amount of $1.00 per Class C Share, until such time as
no Class C Shares shall remain outstanding;
	 
	 	(e)	 	fifth, to the Jupiter Shareholders and the Lucky Shareholders pro
rata in accordance with their respective Sharing Percentage, until such time as the
aggregate payments received by the Jupiter Shareholders (taken together) under this
subclause (e) equal five hundred million dollars ($500,000,000.00) minus
the Priority Dividend Amount (if any);
	 
	 	(f)	 	sixth, to Lucky Sub-2 in a dollar amount equal to the aggregate
amount of any Accrued and Unpaid Royalty Payments then owing to Lucky Sub-2, until
such time as no such payment shall be owing to Lucky Sub-2; and
	 
	 	(g)	 	seventh, to the Jupiter Shareholders and the Lucky Shareholders
pro rata in accordance with their respective Sharing Percentage.

	 	 	All payments pursuant to this clause 7.1 shall be denominated in United States dollars, and
shall be payable in integrals of $1.00.
	 
	7.2	 	In the event of any payment pursuant to clause 7.1(d) and to the extent permitted by
Applicable Law, (i) Class C Shares of Jupiter Sub-1 and Lucky Sub-1, as applicable, shall be
redeemed for an amount of $1.00 per Class C Share and (ii) the Company shall immediately
cancel all such redeemed shares. Any such redemption and cancellation shall be deemed to
automatically occur upon receipt of the redemption proceeds by the relevant Shareholder
without further action by any person. Following any and all payments pursuant to clause
7.1(d), the register of members of the Company shall be appropriately updated to reflect the
foregoing provisions of this clause 7.2. For clarity, no Class O-J Shares or Class O-E Shares
shall be redeemed or cancelled in connection with payments pursuant to clause 7.1(e) or clause
7.1(g).
	 
	7.3	 	Notwithstanding any other provision of this Agreement, the Company shall have the
right to set off against, or withhold from, any payment to any party pursuant to clause 7.1
(including Accrued and Unpaid Royalty Payments to Lucky Sub-2) in respect of any amounts then
due from such party or its Affiliates to the Company or in respect of which the Company is
required to withhold pursuant to any provision of applicable tax laws. Any amounts so set off
shall be applied by the Company to discharge the obligation in respect of which such amounts
were set off, and any amounts so withheld shall be paid

25

 

over by the Company to the applicable tax authority, and upon request by the appropriate
party, the Company will furnish that party with proof of payment of such tax. All amounts
set off or withheld pursuant to this clause 7.3 shall be treated as amounts paid to such
party for all other purposes under this Agreement and the Company will not be obligated to
make any additional payments to such party in respect of such amounts. The parties shall
cooperate reasonably to minimize such taxes in accordance with Applicable Law. Each party
shall cooperate reasonably as requested by another party in completing and filing any
documents required under the provisions of any Applicable Law in connection with the making
of any required tax payment or withholding payment, or in connection with any claim to a
refund of or credit for such payment. Nothing in this clause 7.3 shall obligate the Company
to effect any set off referred to above.

	7.4	 	Payments made pursuant to clause 7.1 of this Agreement are exclusive of sales tax,
value added tax or any other similar or substitute taxes, which will be additionally payable
by the Company, if applicable, provided that the receiving party will issue an appropriate
invoice to the Company supporting such charge.
	 
	7.5	 	On a winding-up of the Company, any available assets of the Company shall be applied
in the same manner as is specified in clauses 7.1(a) to (g), and for the avoidance of doubt
the Class O-E Shares shall not be entitled to the return of any share premium paid (or deemed
to be paid) on the Class O-E Shares.
	 
	8.	 	Agreement not to compete
	 
	8.1	 	The parties understand that the Company shall be entitled to protect and preserve the
going concern value of the Business to the extent permitted by law and that the parties would
not have entered into this Agreement absent the provisions of this clause 8. Therefore, until
the later of the fifth anniversary of the Closing and the second anniversary of the date on
which none of Lucky Parent or any of its Affiliates is a Shareholder, Lucky Parent and Lucky
Sub-1 shall not, and each shall cause their respective Affiliates not to, alone or in
collaboration with or through the grant of rights to any Third Party:

	 	(a)	 	engage in activities or businesses, or establish any new businesses, that
involve (i) developing, manufacturing or commercializing compounds, molecules,
macromolecules, vaccines or pharmaceutical products in the Field (other than, in
each case, pursuant to the Collaboration Agreement or otherwise on the Company’s
behalf, including pursuant to clause 18.1 hereof), (ii) researching, developing,
manufacturing or commercializing any R&D Candidate, Company Product or Product, in
each case, in the Field or outside the Field (other than, in each case, pursuant to
the Collaboration Agreement or otherwise on the Company’s behalf, including
pursuant to clause 18.1 hereof) or (iii) assisting

26

 

	 	 	 	any person in any way to do, or attempt to do, anything prohibited by subclauses
(i) or (ii) above (the actions prohibited by subclauses (i), (ii) and (iii) are
collectively referred to as the “Competitive Activities”); or
	 
	 	(b)	 	use any Confidential Information for its own benefit or the benefit of any
person other than the Company and its Subsidiaries or third parties acting on
behalf of either of the foregoing;

	 	 	provided, however, that nothing in clause 8.1(a) shall apply to or
prevent Lucky Parent or any of its Affiliates from (A) exercising any of their rights
(or performing any of their obligations) under the License and Grant-Back Agreement or
(B) researching, developing, manufacturing, and/or commercializing a composition of
matter or article of manufacture outside of the Field where such composition of matter
or article of manufacture is to be used in combination therapy (but not as a combination
product) with a Product sold by the Company, Wyeth or any of their Affiliates at the
time of such research, development, manufacture or commercialization; provided
that such activities are in compliance with the terms and subject to the conditions of
Section 2.4 of the Collaboration Agreement assuming for purposes of this proviso that
Lucky Parent and its Affiliates are bound by the provisions of such Section. For the
avoidance of doubt, there is no express or implied license granted by the Company to
Lucky Parent or any of its Affiliates under this clause 8.1. Lucky Parent, on behalf of
itself and each of its Affiliates, hereby agrees that any inventions conceived and/or
reduced to practice in conducting any activities described above shall be included as
patent rights under the terms and subject to the conditions of Section 2.4 of the
License and Grant-Back Agreement.
	 
	8.2	 	Until the later of the fifth anniversary of the Closing and the second anniversary of
the date on which none of Jupiter Parent or any of its Affiliates is a Shareholder, Jupiter
Parent and Jupiter Sub-1 shall not, and each shall cause their respective Affiliates (other
than the Company and its Subsidiaries) not to, alone or in collaboration with or through the
grant of rights to any Third Party (a) engage in activities or businesses, or establish any
new businesses, that involve any Competitive Activities or (b) use any Confidential
Information for its own benefit or the benefit of any person other than the Company and its
Subsidiaries or third parties acting on behalf of either of the foregoing.
	 
	8.3	 	Clause 8.1(a) shall be deemed not breached solely as a result of the ownership by
Lucky Parent or any of its Affiliates (and clause 8.2(a) shall be deemed not breached solely
as a result of the ownership by Jupiter Parent or any of its Affiliates) of: (i) less than an
aggregate of 5% of any class of stock of a person engaged, directly or indirectly, in any
Competitive Activities; provided, however, that such stock is listed on a
national securities exchange; or (ii) less than 5% in aggregate principal amount of any series
of indebtedness of a person engaged, directly or indirectly, in any Competitive Activities.
Notwithstanding clauses 8.1(a) and 8.2(a), it is understood and agreed that nothing in this

27

 

	 	 	Agreement shall at any time limit or otherwise prevent the Shareholders or any of their
respective Affiliates from pursuing and/or consummating (whether by way of merger,
purchase, scheme of arrangement or otherwise) one or more acquisitions of or business
combinations with another company or business that engages in Competitive Activities (the
portion of such other company or business involving Competitive Activities, the “Competing
Assets”) so long as all of the Competing Assets are sold, divested or otherwise disposed of
within one year from the closing of the applicable acquisition or business combination
giving rise to the Competing Assets at issue (and, for clarity, no Confidential Information
shall be used to benefit any such Competing Assets). For clarity, no license or other
rights under the Business Intellectual Property are granted to Lucky Parent or any of its
Affiliates by virtue of this clause 8.3.
	 
	8.4	 	Notwithstanding any other provision of this Agreement, it is understood and agreed
that remedies at law would be inadequate in the case of any breach of the covenants contained
in clause 8.1 or clause 8.2. It is accordingly agreed that any non-defaulting Shareholder and
the Company shall be entitled to equitable relief, including an injunction or injunctions to
prevent breaches of this clause 8 and to enforce specifically the performance of the terms and
provisions of this Agreement, without proof of actual damages (and the parties hereto hereby
waive any requirement for the securing or posting of any bond in connection with such remedy),
this being in addition to any other remedy to which such non-defaulting Shareholder and the
Company are entitled at law or in equity. The parties further agree not to assert that such a
remedy, including a remedy of specific enforcement, is unenforceable, invalid, contrary to law
or inequitable for any reason, nor to assert that a remedy of monetary damages would provide
an adequate remedy for any such breach.
	 
	8.5	 	Each of the covenants in this clause 8 is considered fair and reasonable by the
parties. If any such restriction shall be found to be unenforceable but would be valid if any
part of it were deleted or the period or area of application reduced, the restriction shall
apply with such modifications as may be necessary to make it valid and effective.
	 
	8.6	 	Notwithstanding anything herein to the contrary, the restrictions set forth in this
clause 8 shall immediately terminate and be of no further force or effect upon the granting of
a Close-Out License.
	 
	9.	 	Books and Records
	 
	9.1	 	The Company shall maintain or cause to be maintained appropriate books and records,
in accordance with the requirements of all Applicable Laws.

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	9.2	 	Each Shareholder shall be allowed access, at all reasonable times and upon reasonable
advance notice, to examine the books and records of the Company and its Subsidiaries.
	 
	9.3	 	The Company shall prepare and deliver to each Shareholder, within 60 days after the
end of each Calendar Year, the following audited financial statements with respect to the
Company and its Subsidiaries: (i) a consolidated balance sheet as of the end of such Calendar
Year; (ii) a consolidated income (loss) statement for such Calendar Year; (iii) a consolidated
statement of cash flows for such Calendar Year; and (iv) a consolidated statement of changes
in Shareholders’ equity for such Calendar Year. The Company shall also prepare and deliver to
the Board, within 30 days after the end of each Calendar Year, an unaudited unconsolidated
balance sheet of the Company as of the end of such Calendar Year.
	 
	9.4	 	The Company shall also prepare and deliver to each Shareholder, within 10 days after
the end of each Calendar Quarter (other than the fourth Calendar Quarter of each Calendar
Year), the following unaudited financial statements with respect to the Company and its
Subsidiaries: (i) a consolidated balance sheet as of the end of such Calendar Quarter; (ii) a
consolidated income (loss) statement for such Calendar Quarter; (iii) a consolidated statement
of cash flows for such Calendar Quarter; and (iv) a consolidated statement of changes in
Shareholders’ equity for such Calendar Quarter.
	 
	9.5	 	All of the financial statements referred to above in this clause 9 shall be prepared
in accordance with generally accepted accounting principles in the United States (“GAAP”) or
in accordance with International Financial Reporting Standards (“IFRS”), as the Board shall
determine from time to time.
	 
	9.6	 	The Company shall, upon request, provide to any Shareholder all material information
that has been provided to any other Shareholder and all necessary financial information to
account for its respective share ownership in the Company in accordance with Applicable Law
(including estimated quarterly income statements, which shall be furnished to the Shareholders
as soon as practical following the end of each fiscal quarter).
	 
	9.7	 	Notwithstanding anything to the contrary, in the event any provision of this clause 9
shall conflict with the Collaboration Agreement, the Company shall not be in breach of this
clause 9 to the extent it determines in good faith that non-compliance with this clause 9 is
necessary in order to comply with the terms of and obligations under the Collaboration
Agreement.

29

 

	10.	 	Tax matters
	 
	10.1	 	The parties agree that no approach, correspondence or discussions with any tax
authority in relation to any matter pertaining to the taxation affairs of the Company shall be
made without the prior approval of the Board.
	 
	10.2	 	The parties understand that, as an indirect subsidiary of Johnson & Johnson, a New
Jersey corporation (“Jupiter PubliCo”), the Company’s operations may have a direct or an
indirect effect on Jupiter PubliCo’s liability for U.S. taxes. Accordingly, the Company shall
file any election or statement or return (including an entity classification election) that
may be requested by Jupiter PubliCo or Jupiter Sub-1. Lucky Parent and the Lucky Shareholders
agree to cooperate and execute any documents reasonably requested by the Company in connection
with the making of any such election or the filing of any statement or return.
	 
	11.	 	Transfer of shares
	 
	11.1	 	No Shareholder shall Transfer any Shares unless it is expressly permitted or
required under this Agreement and carried out in accordance with the provisions of this
Agreement. Any purported Transfer of Shares which is not in compliance with the provisions of
this Agreement shall be null and void.
	 
	11.2	 	Any Shareholder may Transfer all or any portion of its Shares to any wholly owned
subsidiary of Jupiter PubliCo or Lucky Parent (as the case may be); provided that no
such Transfer shall become effective unless and until:

	 	(a)	 	the applicable transferee shall have executed and delivered a Deed Poll of
Adherence pursuant to which it shall agree to become bound by the provisions of
this Agreement as they pertain to the transferring Shareholder with respect to the
Shares so Transferred (and shall become entitled to the rights and privileges of
such transferring Shareholder with respect to the Shares so Transferred) as if it
were named an original party to this Agreement; and
	 
	 	(b)	 	Jupiter Parent or Lucky Parent (as the case may be) shall acknowledge and
agree that its guarantee under clause 20 shall, from and after such Transfer,
extend to the obligations, covenants, agreements and duties then applicable to the
relevant transferee under this Agreement without prejudice or limitation of any
kind.

	11.3	 	Prior to the expiration of the Restricted Period, no Shareholder shall be entitled
to Transfer any of its Shares other than pursuant to clause 11.2, absent the consent of all
other Shareholders. Following the expiration of the Restricted Period, the Lucky Shareholders
and the Jupiter Shareholders shall be permitted to Transfer all (but not less

30

 

	 	 	than all) of the Lucky Shares or Jupiter Shares, as applicable; provided that in
the event the Lucky Shareholders or Jupiter Shareholders intend to Transfer their
respective Shares (any such shareholders, the “Transferring Shareholders”) other than
pursuant to clause 11.2, the Transferring Shareholders shall give to (x) Jupiter Sub-1 (if
the Transferring Shareholders are the Lucky Shareholders) or (y) Lucky Sub-1 (if the
Transferring Shareholder are the Jupiter Shareholders) written notice of such intention
specifying the proposed sale price (which shall be limited to cash consideration) and any
and all other terms, conditions and details of such intended Transfer (any such notice, a
“First Offer Notice” and the party entitled to receive such notice, the “Non-Transferring
Shareholder”). Any such First Offer Notice shall constitute an offer by the Transferring
Shareholders to sell all (but not less than all) of their Shares on the terms specified by
the notice, and the Non-Transferring Shareholder shall have the exclusive right to accept
or reject the offer at any time within 60 days from receipt of the First Offer Notice by
delivery of written notice of acceptance to the Transferring Shareholders. The delivery of
any such acceptance notice shall bind the Transferring Shareholders and the
Non-Transferring Shareholder to sell and buy the Shares proposed to be sold by the
Transferring Shareholders in accordance with clause 14. If the Non-Transferring Shareholder
does not accept the offer within such 60-day period, the Transferring Shareholders shall be
entitled to Transfer all (but not less than all) of their Shares to any third party within
(and not later than) 120 days following delivery of the relevant First Offer Notice at a
purchase price and on the terms and conditions set forth in the First Offer Notice (in the
event such sale is not made within the 120-day period referred to above or is proposed to
be made on terms and conditions other than those set forth in the relevant First Offer
Notice, then a replacement First Offer Notice shall be delivered by the Transferring
Shareholders and the foregoing provisions of this clause 11.3 shall apply again in respect
of such replacement notice). Notwithstanding the foregoing, no such Transfer to a third
party purchaser shall become effective unless and until:

	 	(a)	 	the applicable transferee shall have executed and delivered a Deed Poll of
Adherence pursuant to which it shall agree to become bound by the provisions of
this Agreement as they pertain to the Transferring Shareholders (and shall become
entitled to the rights and privileges of such Transferring Shareholders) as if it
were named an original party to this Agreement; and
	 
	 	(b)	 	the applicable transferee provides a written certification to the
Non-Transferring Shareholder (which is reasonably satisfactory to the
Non-Transferring Shareholder) that from and after such transfer it will satisfy its
obligations under this Agreement (it being understood that in the event the
Non-Transferring Shareholder is not reasonably satisfied with such certification,
the applicable transferee shall be entitled to submit a replacement certification
(which also must be reasonably satisfactory to the Non-Transferring Shareholder)
accompanied by adequate assurance of its performance by way of a parent guarantee,
security or otherwise).

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	 	 	For clarity, no Shareholder may Transfer Shares under clause 11.3 unless such Transfer is
coupled with a Transfer of any and all other Shares then held by any Affiliate of such
Shareholder.
	 
	11.4	 	Upon any permitted Transfer of all (but not less than all) of the Shares of a
Shareholder, the Company shall prepare in good faith, and the parties (and the applicable
transferee) shall execute and deliver, an amendment to this Agreement to replace each
reference herein to the applicable transferor with a reference to the applicable transferee
and to make any other appropriate revisions to properly reflect the Transfer of Shares
(including, in the case of Transfer pursuant to clause 11.3, replacing each reference to the
parent company of the applicable transferor in the definition of “Change of Control” with a
reference to the ultimate parent company of the applicable transferee (or, if no such parent
company shall exist, with a reference to the applicable transferee), in each case except to
the extent any such replacement or revision would be inconsistent with the original commercial
intention of the parties. Following any such amendment, (a) the applicable transferor shall
be released from its obligations under this Agreement and (b) in the case of a permitted
Transfer pursuant to clause 11.3, Lucky Parent or Jupiter Parent (as the case may be) shall,
if none of their Affiliates then hold any Shares, be released from its obligations under this
Agreement (other than, in the case of subclauses (a) and (b) above, any such obligations due
and payable at the time of such Transfer and any such obligations arising under any one or
more of the clauses specified to survive a termination of this Agreement under clause 15.2
(assuming, for this purpose only, that the Agreement would terminate upon completion of such
Transfer)). Upon any permitted Transfer of less than all the Shares of a Shareholder under
clause 11.2, the Company shall prepare in good faith, and the parties (and the applicable
transferee) shall execute and deliver, an amendment to this Agreement to properly reflect such
Transfer of Shares.
	 
	11.5	 	For purposes of this clause 11, any reference to “Shares” shall include any interest
in or right in respect of such Shares.
	 
	12.	 	Transfer following obligatory transfer event
	 
	12.1	 	For purposes of this Agreement, an “Obligatory Transfer Event” shall have occurred
with respect to the Jupiter Shares or Lucky Shares, as the context may require, upon any of
the following:

	 	(a)	 	a Funding Default by Jupiter Sub-1, Jupiter Sub-2 or Lucky Sub-1, as
applicable, which default is not cured within thirty days after receipt of a
default notice from the Company or any Shareholder;
	 
	 	(b)	 	with respect to the Lucky Shares, a material breach of clause 8.1(a) of
this Agreement which breach is not cured within thirty days after receipt of a
default notice from the Company or any Shareholder;

32

 

	 	(c)	 	with respect to the Jupiter Shares, a material breach of clause 8.2(a) of
this Agreement which breach is not cured within thirty days after receipt of a
default notice from the Company or any Shareholder;
	 
	 	(d)	 	the occurrence of a Change of Control;
	 
	 	(e)	 	the passing of a resolution for the winding up of any Jupiter Shareholder,
any Lucky Shareholder or any of their respective holding companies;
	 
	 	(f)	 	the presentation at a court of competent jurisdiction by any competent
person of a petition for the winding up of any Jupiter Shareholder, any Lucky
Shareholder or any of their respective holding companies, which petition is not
withdrawn or dismissed within fifteen days of its presentation;
	 
	 	(g)	 	the issue by a court of competent jurisdiction by any competent person of
a notice of intention to appoint an examiner to any Jupiter Shareholder, any Lucky
Shareholder or any of their respective holding companies, or a notice of
appointment of an examiner to any Jupiter Shareholder, any Lucky Shareholder or any
of their respective holding companies or an application for examinership in respect
of any Jupiter Shareholder, any Lucky Shareholder or any of their respective
holding companies;
	 
	 	(h)	 	if any bona fide and valid step is taken by any person to appoint a
receiver, administrative receiver or manager in respect of the whole or a
substantial part of the assets or undertaking of any Jupiter Shareholder, any Lucky
Shareholder or any of their respective holding companies;
	 
	 	(i)	 	any Jupiter Shareholder, any Lucky Shareholder or any of their respective
holding companies become unable to pay its debts as they fall due for purposes of
section 214 of the Companies Act 1963;
	 
	 	(j)	 	any Jupiter Shareholder, any Lucky Shareholder or any of their respective
holding companies enters into a composition or arrangement with its creditors;
	 
	 	(k)	 	a chargor takes any bona fide and valid step to enforce a charge created
over any Shares held by any Jupiter Shareholder, any Lucky Shareholder (other than
by the appointment of a receiver, administrative receiver or manager), regardless
of whether such charge is permitted by this Agreement;
	 
	 	(l)	 	the institution of a bona fide and valid process that could lead to any
Jupiter Shareholder, any Lucky Shareholder or any of their respective holding
companies being dissolved and its assets being distributed to creditors; or
	 
	 	(m)	 	in the case of subclauses (e), (f), (g) or (h) above, any competent person
takes any analogous step in any jurisdiction in which any Jupiter Shareholder, any
Lucky Shareholder or any of their respective holding companies carries on business.

33

 

	 	 	For clarity, the solvent re-organization or restructuring by any Shareholder or any of
their respective holding companies shall not constitute an Obligatory Transfer Event
under subclause (e) to (m) above if no person other than Jupiter PubliCo, Lucky Parent
or any of their wholly owned Subsidiaries receives shares in connection therewith.
	 
	12.2	 	Upon the occurrence of an Obligatory Transfer Event, the Triggering Parties shall
deliver prompt written notice of the same to the Non-Triggering Party and, if it does not, the
Triggering Parties shall be deemed to have delivered such notice on the date on which the
Non-Triggering Party otherwise becomes aware of such Obligatory Transfer Event (any such
actual or deemed notice, an “Obligatory Transfer Notice”).
	 
	12.3	 	Subject to clause 12.5, after delivery, or deemed delivery, of an Obligatory
Transfer Notice, the Triggering Parties and Non-Triggering Party shall, if required by the
Non-Triggering Party and for a period of fifteen Business Days following delivery, or deemed
delivery, of such notice, attempt to negotiate a mutually acceptable purchase price for all of
the Triggering Parties’ Shares (all such Shares, the “Sale Shares”). If the Triggering
Parties and the Non-Triggering Party cannot agree on a purchase price prior to the expiration
of such fifteen Business Day period (or if the Non-Triggering Party does not require any such
negotiation), Jupiter Sub-1 and Lucky Sub-1 shall each appoint, within ten Business Days after
the expiration of such fifteen Business Day period (or within ten Business Days after
delivery, or deemed delivery, of such notice if no such negotiation is required), an
independent investment bank of international standing (any banks so appointed, the “Jupiter
Expert” and “Lucky Expert”, respectively, and collectively, the “Experts”) to determine the
Fair Value of all of the Sale Shares.
	 
	12.4	 	Subject to clause 12.5, upon receipt of the Fair Value determination under clause
13.1, the Non-Triggering Party shall have the right (but not the obligation) to purchase all
of the Sale Shares at the Fair Value so determined, with such right being exercisable by
delivery of written notice (a “Call Notice”) to the Triggering Parties within thirty Business
Days of the Non-Triggering Party’s receipt of the Fair Value determination under clause 13.1.
The delivery of a Call Notice (whether under this clause 12.4 or pursuant to clause 12.5) by
the Non-Triggering Party shall bind the Non-Triggering Party to buy and the Triggering Parties
to sell the Sale Shares in accordance with clause 14.
	 
	12.5	 	Notwithstanding anything to the contrary, in the case of an Obligatory Transfer
Event pursuant to clause 12.1(a) (Funding Default), the Fair Value of the Sale Shares shall be
deemed to equal $1.00, no appointment of or Fair Value determination by the Experts shall be
required and the Non-Triggering Party shall have the option to deliver a Call Notice to the
Triggering Parties at any time within 90 days from when the Obligatory

34

 

	 	 	Transfer Notice in respect of such Obligatory Transfer Event was delivered, or deemed
delivered, under clause 12.2.
	 
	13.	 	Expert
	 
	13.1	 	For purposes of this Agreement, the “Fair Value” of the Sale Shares shall, subject
to clause 12.5 and the following sentence, be the average of the values that the Experts
determine, in their respective opinions, to be the fair market value of the Sale Shares
(expressed in United States dollars); provided, however, if the difference
between fair market values determined by the Experts (each such appraisal, a “Valuation”) is
equal to or more than 10% of the higher Valuation, (i) the Experts shall jointly select and
engage, within thirty Business Days of the date when the previous Valuations were submitted, a
third independent investment bank of international standing (the “Third Bank”), (ii) such
Third Bank shall prepare a Valuation within thirty Business Days of the date of its engagement
and (iii) the Fair Value of the Sale Shares shall be the average of the Valuation determined
by the Third Bank and the Valuation of the Expert which is closest in value to the Valuation
of the Third Bank. Notwithstanding the foregoing provisions of this clause 13.1, in the event
of an Obligatory Transfer Event that is an Antidilution Obligatory Transfer Event, the Fair
Value of the Sale Shares for purposes of such Antidilution Obligatory Transfer Event shall be
an amount (not to be less than zero) equal to (i) the Fair Value of the Sale Shares calculated
in accordance with the preceding sentence minus (ii) the Aggregate Antidilution
Amount.
	 
	13.2	 	The Experts and Third Bank (if applicable) shall base their Valuations on the
following assumptions:

	 	(a)	 	the sale is between a willing buyer and a willing seller on the open
market;
	 
	 	(b)	 	the sale is taking place on the date that the relevant Obligatory Transfer
Event occurred;
	 
	 	(c)	 	if the Company is then carrying on its Business as a going concern, on the
assumption that it shall continue to do so;
	 
	 	(d)	 	the Sale Shares are sold free of all Encumbrances; and
	 
	 	(e)	 	any other factors that the Expert reasonably believes should be taken into
account in determining the fair market value of the Sale Shares.

	 	 	In determining the Fair Value of the Lucky Shares, the Experts and Third Bank (if
applicable) shall include in their Valuation the then fair market value of the rights to
future royalties under the Royalty Agreement, if applicable, assuming, for this purpose
only, that the Royalty Agreement will not terminate upon the sale of the Sale Shares to
Jupiter Sub-1.

35

 

	13.3	 	The Experts and Third Bank (if applicable) shall be required to determine the Fair
Value of the Sale Shares within thirty Business Days of their appointment and to notify
Jupiter Sub-1 and Lucky Sub-1 in writing of their Valuation.
	 
	13.4	 	If either the Jupiter Expert or the Lucky Expert does not deliver its Valuation
within thirty Business Days of its appointment, Jupiter Sub-1, in the event of a delinquent
Jupiter Expert, or Lucky Sub-1, in the event of a delinquent Lucky Expert, shall be entitled
to appoint a replacement Expert, and such replacement shall, from and after its appointment,
be an “Expert” for all purposes of this Agreement. If the Third Bank does not deliver its
Valuation within thirty Business Days of its appointment, the Experts shall be entitled to
jointly appoint a replacement Third Bank, and such replacement shall, from and after its
appointment, be the “Third Bank” for all purposes of this Agreement.
	 
	13.5	 	Jupiter Sub-1 and Lucky Sub-1 shall each be entitled to make submissions to the
Experts and Third Bank (if applicable), including oral submissions, and each shall provide the
Experts and Third Bank (if applicable) with such assistance and documents as any of them
reasonably request, subject to them agreeing to give such confidentiality undertakings as
Jupiter Sub-1 and/or Lucky Sub-1 may reasonably require.
	 
	13.6	 	To the extent not provided for by this Agreement, the Experts and Third Bank (if
applicable) may, in their reasonable discretion, provide for such other procedures to
facilitate their determination of the Fair Value of the Sale Shares.
	 
	13.7	 	Each of Jupiter Sub-1 and Lucky Sub-1 shall supply the other with all information as
the other may reasonably request to make a submission to the Experts and Third Bank (if
applicable).
	 
	13.8	 	Each Expert and Third Bank (if applicable) shall act as an expert and not as an
arbitrator. The determination of the Fair Value of the Sale Shares in accordance with this
Agreement shall be final and binding on the parties in the absence of manifest error or fraud.
	 
	13.9	 	The fees of and any costs properly incurred by the Experts and Third Bank (if
applicable) in arriving at their Valuations (including any fees and costs of any advisers
appointed by them) shall be borne by the Shareholders pro rata in accordance with their
respective Sharing Percentage (before giving effect to the obligatory transfer).

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	14.	 	Closing of the sale and purchase of shares in the Company
	 
	14.1	 	This clause applies only to Transfers of Shares pursuant to clause 11.3 (transfer
following a First Offer Notice) or clauses 12.4 or 12.5 (transfer following an Obligatory
Transfer Event).
	 
	14.2	 	In the event that the Transfer of Shares pursuant to clauses 12.4 or 12.5 (transfer
following an Obligatory Transfer Event) would require the approval of shareholders of Lucky
Parent under the Listing Rules of the Irish Stock Exchange (as amended from time to time),
Lucky Parent hereby covenants to procure that its shares are converted from being primary
listed to secondary listed on the Irish Stock Exchange as soon as reasonably practicable
following the relevant Obligatory Transfer Event and in any event prior to the fifth Business
Day referred to in clause 14.3. Lucky Parent hereby further covenants not to seek or obtain
any listing of securities on any stock exchange on or after the date of this Agreement that
would or could require the approval of its shareholders or the relevant exchange to be
obtained prior to completion of the Transfer of Shares pursuant to clauses 12.4 or 12.5.
	 
	14.3	 	The Transfer of Shares shall be completed at a location designated by the
Non-Triggering Party or Non-Transferring Shareholder, as applicable, at 10:00 a.m. on the
fifth Business Day (or on such later Business Day reasonably designated by the Non-Triggering
Party or Non-Transferring Shareholder, as applicable, in order to permit (i) any necessary
antitrust waiting periods to expire, (ii) any other necessary governmental approvals to be
obtained and (iii) any period required by the Irish Stock Exchange to enable Lucky Parent to
comply with its obligations under clause 14.2 to expire (as applicable)) after:

	 	(a)	 	the Non-Transferring Shareholder exercises its right to purchase Shares
pursuant to the applicable First Offer Notice (in the case of a Transfer pursuant
to clause 11.3); or
	 
	 	(b)	 	the Non-Triggering Party delivers a Call Notice (in the case of a Transfer
pursuant to clauses 12.4 or 12.5).

	14.4	 	In connection with completion, each of the Triggering Parties or Transferring
Shareholders, as applicable, shall:

	 	(a)	 	transfer all of its Shares free and clear of all Encumbrances by way of a
duly completed share transfer form to the Non-Triggering Party or Non-Transferring
Shareholder, as applicable, together with the relevant share certificates and such
other documents as the Non-Triggering Party or Non-Transferring Shareholder, as
applicable, may reasonably request to show good title to such Shares or enable it
to be registered as the holder of such Shares;

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	 	(b)	 	in the event the Lucky Shareholders are the Triggering Parties or
Transferring Shareholders, as applicable, deliver the resignation of the Lucky Sub
Directors (to take effect at completion), and acknowledge that none of Lucky
Parent, its Affiliates or the Lucky Sub Directors have any claims against the
Company;
	 
	 	(c)	 	in the event the Jupiter Shareholders are the Triggering Parties or
Transferring Shareholders, as applicable, deliver the resignation of the Jupiter
Sub Directors (to take effect at completion), and acknowledge that none of Jupiter
Parent, its Affiliates or the Jupiter Sub Directors have any claims against the
Company;
	 
	 	(d)	 	warrant that it has no right to require the Company to issue it any share
capital or other securities and that no Encumbrance affects any unissued shares or
other securities of the Company;
	 
	 	(e)	 	warrant that it is the Beneficial Owner of the Shares being Transferred;
	 
	 	(f)	 	warrant that no commitment has been given to create an Encumbrance
affecting the Shares being Transferred (or any unissued shares or other securities
of the Company) and that no person has claimed any rights in respect thereof;
	 
	 	(g)	 	undertake to do all it can, at its own cost, to give the Non-Triggering
Party or Non-Transferring Shareholder, as applicable, the full legal and beneficial
title to the Shares being Transferred; and
	 
	 	(h)	 	provide the Company with a waiver in writing of any rights it may have to
be issued any share capital or other securities in the Company.

	14.5	 	At completion the Non-Triggering Party or Non-Transferring Shareholder, as
applicable, shall pay the applicable purchase price by wire transfer of immediately available
funds to the account each of the Triggering Parties or Transferring Shareholders, as
applicable, shall have specified therefor (it being agreed that each of the Triggering Parties
or Transferring Shareholders, as applicable, shall specify such an account no later than the
second Business Day prior to completion).
	 
	14.6	 	The parties shall procure the registration of the Transfer of Shares pursuant to
this clause 14, and each of them consents to such Transfer and registration pursuant to this
Agreement.
	 
	14.7	 	The shares shall be sold with all rights that attach, or may in the future attach,
to them (including the right to receive all dividends declared, made or paid on or after the
events referred to in clause 14.3(a) and clause 14.3(b).
	 
	14.8	 	The Non-Triggering Party or Non-Transferring Shareholder, as applicable, shall not
be obliged to complete the Transfer of any of the Shares being sold unless the Transfer of all
the Shares being sold is completed simultaneously.

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	14.9	 	If any Triggering Party or Transferring Shareholder, as applicable, fails to
complete the Transfer of Shares as required under this Agreement, the Company:

	 	(a)	 	is irrevocably authorised to appoint any person to Transfer the Shares on
such Triggering Party’s or such Transferring Shareholder’s behalf, as applicable,
and to do anything else that the Non-Triggering Party or Non-Transferring
Shareholder, as applicable, reasonably requests to complete the Transfer (including
removing the Triggering Party’s or Transferring Shareholder’s, as applicable,
directors from the Board); and
	 
	 	(b)	 	may receive the applicable purchase price in trust for such Triggering
Party or Transferring Shareholder, as applicable, and shall provide the
Non-Triggering Party or Non-Transferring Shareholder, as applicable, with a receipt
that shall fully discharge the Non-Triggering Party or Non-Transferring
Shareholder, as applicable.

	15.	 	Termination and liquidation
	 
	15.1	 	Except for the provisions which this clause states shall continue in full force
after termination of this Agreement, this Agreement shall terminate:

	 	(a)	 	when, as a result of permitted Transfers of Shares, only one person
remains as legal and beneficial holder of all of the Shares;
	 
	 	(b)	 	when a resolution is passed by all Shareholders or the requisite
creditors, or an order made by a court or other competent body or person
instituting a process that shall lead to the Company being wound up and its assets
being distributed among the Company’s creditors, shareholders or other
contributors; or
	 
	 	(c)	 	with the written consent of each Shareholder.

	15.2	 	The following provisions of this Agreement remain in full force after termination of
this Agreement:

	 	(a)	 	clause 1 (Interpretation);
	 
	 	(b)	 	clause 8 (Agreement not to compete) (except for any termination after the
granting of a Close-Out License);
	 
	 	(c)	 	clause 10 (Tax matters);
	 
	 	(d)	 	clause 15 (Termination and liquidation);
	 
	 	(e)	 	clause 17 (Confidentiality);
	 
	 	(f)	 	clause 22 (Whole agreement);
	 
	 	(g)	 	clause 24 (Amendment and waiver);
	 
	 	(h)	 	clause 25 (Costs);

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	 	(i)	 	clause 28 (Notice);
	 
	 	(j)	 	clause 29 (Severance); and
	 
	 	(k)	 	clause 33 (Governing law and jurisdiction).

	15.3	 	Termination of this Agreement shall not affect any rights or liabilities that the
parties have accrued under this Agreement prior to termination.
	 
	15.4	 	Where the Company is to be wound up and its assets distributed, the Board shall deal
with the interests and assets of the Company and shall endeavour to ensure that:

	 	(a)	 	all existing contracts of the Company are performed to the extent that
there are sufficient resources;
	 
	 	(b)	 	the Company shall not enter into any new contractual obligations; and
	 
	 	(c)	 	the Company is dissolved and its assets are distributed as soon as
practical in the manner and order of priority set forth in clause 7.1.

	16.	 	Status of the agreement
	 
	16.1	 	Each party shall exercise all its voting rights (if any) and any other powers in
relation to the Company to procure that the provisions of this Agreement are properly and
promptly observed and given full force and effect according to the spirit and intention of
this Agreement.
	 
	16.2	 	If any provision in the memorandum of association of the Company or the articles of
association of the Company (as they may be amended from time to time) conflicts with any
provision of this Agreement, this Agreement shall prevail.
	 
	16.3	 	Each party shall, from time to time and upon request of any other party, exercise
its powers of voting (if any) and any other rights and powers it may have to amend, waive or
suspend a conflicting provision in the memorandum of association of the Company or the
articles of association of the Company to the extent necessary so that the business, property
and affairs of the Company and its Subsidiaries may be administered as provided in this
Agreement.
	 
	17.	 	Confidentiality
	 
	17.1	 	For purposes of this Agreement and subject to clause 17.2, “Confidential
Information” means any information:

40

 

	 	(a)	 	which any party may have or acquire (whether before or after the date of
this Agreement) in relation to the customers, suppliers, business, assets or
affairs of the Company or any of its Subsidiaries; or
	 
	 	(b)	 	which relates to the contents of this Agreement (or any agreement or
arrangement entered into in connection with this Agreement).

	17.2	 	Notwithstanding clause 17.1, Confidential Information shall not include information
which:

	 	(a)	 	is or becomes public knowledge other than as a direct or indirect result
of the information being disclosed in breach of this Agreement;
	 
	 	(b)	 	any party can establish to the reasonable satisfaction of the other
parties that it acquired the information from a source not connected with the other
parties or their Affiliates and that such source was not then under any obligation
of confidence in respect of the information;
	 
	 	(c)	 	any party can establish to the reasonable satisfaction of the other
parties that the information was known to the first party before the date of this
Agreement and that, at the time of disclosure, it was not under any obligation of
confidence in respect of the information (for purposes of this subclause (c), Lucky
Parent and its Affiliates shall be deemed to not have knowledge of any matters
relating to the Acquired Assets (as defined in the Asset Purchase Agreement)); or
	 
	 	(d)	 	the parties agree in writing that it is not confidential.

	17.3	 	Subject to clause 9, each party shall maintain in confidence (and ensure that its
Affiliates and its and their employees maintain in confidence) any Confidential Information,
and no party shall disclose, use or grant a third party the right to use (or permit any of its
Affiliates and its and their employees to disclose, use or grant such a right to use) any
Confidential Information, except:

	 	(a)	 	on a need-to-know basis to such party’s directors, officers and employees,
and to such party’s consultants working on such party’s premises, to the extent
such disclosure is reasonably necessary for a purpose related to the operation of
this Agreement;
	 
	 	(b)	 	with the prior written consent of the other parties, such consent not to
be unreasonably withheld (it being agreed that if such a consent is provided, the
relevant third party shall, prior to any disclosure, execute a confidentiality
agreement reasonably acceptable to the parties);
	 
	 	(c)	 	as may be required by law or by the rules of any recognised stock
exchange, or governmental or other regulatory body (and only to the extent so
required), in which case the party concerned shall, if practicable, supply a copy
of the required disclosure to the other parties before it is disclosed and
incorporate any

41

 

	 	 	 	amendments or additions reasonably required by the other parties and which would
not thereby prevent the disclosing party from complying with its legal
obligations; or
	 
	 	(d)	 	to any tax authority to the extent reasonably required (and only to the
extent so required) for the purposes of the tax affairs of the party concerned or
any of its Affiliates.

	17.4	 	Each party shall inform (and shall cause its Affiliates to inform) any director,
officer, employee or consultant to whom it provides Confidential Information that such
information is confidential and shall require them:

	 	(a)	 	to keep it confidential in accordance with the terms of this Agreement;
and
	 
	 	(b)	 	not to disclose it to any third party (other than those persons to whom it
has already been disclosed or may be disclosed, in each case, in accordance with
the terms of this Agreement).

	17.5	 	The obligations of each of the parties in this clause 17 shall continue without
limit in time and notwithstanding termination of this Agreement for any cause.
	 
	17.6	 	Notwithstanding the foregoing provisions of this clause 17, no person shall be
permitted to disclose, use or grant a third party the right to use any information relating to
the Company and its Business if and to the extent such disclosure, use or grant would give
rise to a breach of the Company’s confidentiality obligations under the Collaboration
Agreement.
	 
	18.	 	Collaboration Agreement matters
	 
	18.1	 	Subject to clauses 5.1(j) and 19, Jupiter Parent, Lucky Parent, their Affiliates and
employees of the foregoing shall be permitted to perform under and otherwise act on behalf of
the Company with respect to the Collaboration Agreement, in each case as and to the extent
determined by the Board.
	 
	18.2	 	Subject to the terms of the Collaboration Agreement and Applicable Law, Lucky
Parent, its Affiliates and employees of the foregoing shall be entitled to perform the
Specified Activities on behalf of the Company under the Collaboration Agreement.
	 
	18.3	 	The composition of the Joint Steering Committee (as defined in the Collaboration
Agreement) shall be determined by the Board.

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	18.4	 	In the event any Divested Asset is offered by Wyeth (or its successor) pursuant to
Section 13.7.2 of the Collaboration Agreement, the Board shall offer Jupiter Sub-1 and Lucky
Sub-1 the opportunity to provide additional cash contributions to the Company pro rata in
accordance with their respective Funding Percentage to fund the purchase by the Company of the
Divested Assets so offered.
	 
	18.5	 	If Jupiter Sub-1 and Lucky Sub-1 shall have failed to provide the Company with a
written commitment to fund its respective Funding Percentage of the applicable cash
contribution (a “Divested Asset Commitment”) within ten days from when such opportunity was
first presented (such tenth day, the “Election Date”), the Company shall not purchase, for its
own account, any of the Divested Assets. If Jupiter Sub-1 and Lucky Sub-1 provide the Company
with a Divested Asset Commitment prior to the Election Date, the Company shall negotiate and,
upon the funding of all required contributions, complete a purchase of the Divested Asset for
its own account.
	 
	18.6	 	If Jupiter Sub-1 provides the Company with a Divested Asset Commitment prior to the
Election Date (and Lucky Sub-1 shall have failed to so provide such a commitment), Jupiter
Parent and its Affiliates (other than the Company and its Subsidiaries) shall have the right,
but not the obligation, to negotiate and complete a purchase of all or any portion of such
Divested Asset for their own account. If Lucky Sub-1 provides the Company with a Divested
Asset Commitment prior to the Election Date (and Jupiter Sub-1 shall have failed to so provide
such a commitment), Lucky Parent and its Affiliates shall have the right, but not the
obligation, to negotiate and complete a purchase of all or any portion of such Divested Asset
for their own account. In the event any Divested Assets are to be purchased in accordance
with either of the two preceding sentences, the Company shall cooperate with, and enter into
any reasonable arrangements requested by, the applicable purchaser of the Divested Assets in
order to facilitate the purchase of such assets.
	 
	18.7	 	Promptly following a Specified Collaboration Termination, the Company shall provide
written notice of the same to each Shareholder. If, following a Specified Collaboration
Termination, a Business Cessation occurs, the Company shall provide notice thereof to Lucky
Parent, following which Lucky Parent shall have the option to obtain the Close-Out License (as
defined below) in accordance with this clause 18.7. After receipt of a written notice from
Lucky Parent exercising such option to obtain a Close-Out License (any such notice, an
“Election Notice”), the Company shall grant Lucky Parent or its designated Affiliate (as
applicable, the “Close-Out Licensee”), (i) an exclusive license, with right to sublicense,
under the Closing Date IP then Controlled by the Company, to research, develop, manufacture
and commercialize one or more compounds, molecules, macromolecules, vaccines or pharmaceutical
products both inside the Field and outside the Field (provided, however, that no such
activities may commence for any disease or indication outside the Field for any such compound,
molecule, macromolecule, vaccine or pharmaceutical product not yet in clinical development or
being commercialized,

43

 

	 	 	unless it shall first have been reasonably determined to have positive results in at least
one animal model of a disease or indication inside the Field, such as in an APP transgenic
mouse model) and (ii) a non-exclusive license, with right to sublicense, under the
Post-Closing IP then Controlled by the Company, to research, develop, manufacture and
commercialize in the Field, any R&D Candidates, Products or other Company Products in
clinical development and/or commercialized by Company as of Business Cessation, using such
Post-Closing IP as applied to such R&D Candidates, Products or other Company Products as of
the Business Cessation (such grants in subclauses (i) and (ii), together, the “Close-Out
License”); provided that the Close-Out Licensee shall use commercially reasonable
and diligent efforts to develop and market at least one product based on each such licensed
Company Product in the Field, and subject further to the following terms and conditions of
this clause 18.7. In consideration for the Close-Out License, the Close-Out Licensee shall
pay to Jupiter Sub-1 (or its designee) a ten percent (10%) royalty on the Close-Out
Licensee’s and its Affiliates’ (and any of its or their successors’ or sublicensees’) net
sales of each product sold in any country where at least one Valid Claim of the Closing
Date IP or Post-Closing IP Covers the product; provided that, upon the commencement
of the six month period referred to in the definition of Business Cessation at any time
following a Specified Collaboration Termination (such first day, the “Early Reference
Date”), Lucky Parent may request Jupiter Sub-1 and the Company to grant the Close-Out
License prior to the expiration of the requisite six month period referred to in the
definition of Business Cessation, and if each of the Company and Jupiter Sub-1 consent in
writing to the grant of the Close-Out License prior to such expiration then the ten percent
(10%) royalty rate referred to above shall be increased as follows: (x) if a written
agreement providing for the Close-Out License is duly executed and delivered within 30 days
from the Early Reference Date, a fifteen percent (15%) royalty on the Close-Out Licensee’s
and its Affiliates’ (and any of its or their successors’ or sublicensees’) net sales of
each product sold in any country where at least one Valid Claim of the Closing Date IP or
Post-Closing IP Covers such product; or (y) if a written agreement providing for the
Close-Out License is duly executed and delivered after 30 days but within 90 days from the
Early Reference Date, a twelve and one-half percent (12.5%) royalty on the Close-Out
Licensee’s and its Affiliates’ (and any of its or their successors’ or sublicensees’) net
sales of each product sold in any country where at least one Valid Claim of the Closing
Date IP or Post-Closing IP Covers such product. Net sales shall be calculated on a
product-by-product basis in accordance with the definition of “Net Sales” under the
Collaboration Agreement (in the case of Products), and in accordance with the same
definition as applicable mutatis mutandis (in the case of products based on
other Company Products). The royalty obligation described above shall run from the first
commercial sale of each product for which royalties are payable; provided,
however, in the event that the Close-Out Licensee or any of its Affiliates or
sublicensees shall be required to pay any consideration or royalties for a license or
rights to any Blocking Third Party Intellectual Property or Enhancing Third Party
Intellectual Property during any calendar year, it shall be entitled to deduct fifty
percent (50%) of such consideration or royalties actually paid to any third party for such
license or rights

44

 

	 	 	from the royalties otherwise payable in respect of such calendar year; provided
that (i) no such deduction shall apply for any consideration or royalties paid in respect
of any patent rights set forth on Schedule 4 of the Royalty Agreement, including any
Blocking Third Party Intellectual Property or Enhancing Third Party Intellectual Property
set forth on such Schedule 4, and (ii) the aggregate amount of any and all deductions under
this sentence for any calendar year shall not be greater than an amount which would have
the effect of decreasing the royalties otherwise payable in respect of such calendar year
by more than twenty-five percent (25%). In the event the Close-Out Licensee seeks any such
deduction for non-monetary consideration paid for Blocking Third Party Intellectual
Property or Enhancing Third Party Intellectual Property, a deduction shall be made based
upon such non-monetary consideration’s fair value as mutually determined by the Close-Out
Licensee and Jupiter Sub-1 (or its designee) in good faith. The Company, Jupiter Sub-1 (or
its designee) and the Close-Out Licensee shall use good-faith efforts to enter into a
written agreement providing for the Close-Out License and related royalty payment terms as
soon as reasonably practical after receipt of the Election Notice.
	 
	18.8	 	Any payments made by Lucky Parent or its Affiliates to Jupiter Sub-1 (or its
designee) pursuant to clause 18.7 shall be subject to deduction or withholding of any taxes as
required by Applicable Law. Any amounts so deducted or withheld shall be paid over by Lucky
Parent or its Affiliate (as applicable) to the applicable tax authority, and upon request by
the appropriate party, Lucky Parent or its Affiliate (as applicable) will furnish that party
with proof of payment of such tax. The parties shall cooperate reasonably to minimize such
taxes in accordance with Applicable Law. Each party shall cooperate reasonably as requested
by another party in completing and filing any documents required under the provisions of any
Applicable Law in connection with the making of any required tax payment or withholding
payment, or in connection with any claim to a refund of or credit for such payment.
	 
	18.9	 	In the event the consummation of the transactions contemplated by the Asset Purchase
Agreement and the Specified Collaboration Documents give rise to an obligation on the part of
Wyeth, the Company and/or any of their Subsidiaries (each of the foregoing, an “Indemnitee”)
to pay any royalties or other consideration (or to pay any increased or additional royalties
or other consideration) to any person (any such person, a “Rights Holder”) under any Contract
to which, immediately following the Closing, any Indemnitee is party, or to which any of the
properties or assets of any Indemnitee is subject, then in each such case Lucky Sub-1 shall
indemnify any and all of the Indemnitees for any payments any of them may be required to make
in respect of any such royalties or other consideration. The indemnification payments
pursuant to the foregoing sentence shall be made by Lucky Sub-1 in the amounts that the
applicable Indemnitee is required to make the related royalty or other payment to the
applicable Rights Holder (and no such indemnification payment shall be subject to set-off,
deduction or limitation of any kind) upon receipt by Lucky Sub-1 of a certificate of an

45

 

officer of the applicable Indemnitee that sets forth in reasonable detail the nature and
amount of royalties and other consideration subject to the indemnification obligation
hereunder, including the relevant contractual provisions giving rise to such payment
obligation. In the case of an indemnification payment to Wyeth and/or any of its
Subsidiaries, Lucky Sub-1 hereby agrees, if and to the extent requested by the Company, to
provide the Company with the necessary funds for the relevant indemnification payment and,
upon receipt thereof, the Company shall promptly turn-over the applicable funds to Wyeth
and/or its applicable Subsidiaries in satisfaction of such indemnification obligation. It
is further understood and agreed that the indemnification provided under this clause 18.9
shall be in addition to, and not in limitation of, any indemnification available to the
Company and its Subsidiaries under the Asset Purchase Agreement (it being understood and
agreed, however, that neither the Company nor any of its Subsidiaries shall be entitled to
indemnification hereunder if, and to the extent, such indemnification would entitle any of
them to recover more than 100% of the indemnifiable loss at issue).

	18.10	 	In the event a Company Product in the Field (i) is presented to the JSC and is not
selected as an R&D Candidate or otherwise designated by the JSC for evaluation under the
Research Program and/or the Development Program, (ii) is dropped from the Research Program and
Development Program as a result of the expiration (before or after the date hereof) of the
Research Term or action of the JSC pursuant to Section 4.1.1(ii) of the Collaboration
Agreement, or (iii) otherwise becomes not subject to the Collaboration Agreement, under
circumstances in which, (x) with respect to clauses (i), (ii) and (iii) above, the Company has
the right, notwithstanding the terms of the Collaboration Agreement to the extent they may
still be in force, to continue performing research, development, manufacturing and
commercialization activities with respect to such Company Product outside the purview of the
Collaboration Agreement, and (y) with respect to clauses (i), (ii) and (iii) above, such
Company Product is determined by the Board to be a suitable development candidate (a
“Non-Collaboration Candidate”), then, in each such case, Lucky Parent and Jupiter Parent shall
discuss in good faith whether they agree to equally fund a Company development program to
further research and develop such Non-Collaboration Candidate toward marketing approval for
one or more indications in the Field. In the event neither Lucky Parent nor Jupiter Parent
elect to pursue any further activities with respect to a Non-Collaboration Candidate, the
Company shall not be required to pursue any further activities with respect to such
Non-Collaboration Candidate. In the event that Lucky Parent and Jupiter Parent agree to share
equally the costs for the development of such a Non-Collaboration Candidate, then (i) each of
Lucky Parent and Jupiter Parent shall (or each of them shall cause any of their respective
subsidiaries to) provide the Company with a funding commitment in an amount as may then be
reasonably determined by the parties to be necessary to fund the program (and to the extent
the funding commitments so provided shall be insufficient to fund the program, any and all
additional funds shall be raised by the Company in

46

 

	 	 	accordance with clause 6.9) and (ii) the Company shall initiate such development program
and, upon the commercialization of products based on any Non-Collaboration Candidates
developed thereunder, royalties shall accrue in accordance with Article B of the Royalty
Letter. In the event one of Lucky Parent or Jupiter Parent declines to provide the Company
with the necessary funds to initiate such a development program and the other elects to
fund the development program (the party electing to fund the program, an “Electing R&D
Holder”), the Company shall grant the Electing R&D Holder a right to research and develop
the applicable Non-Collaboration Candidate, along with a royalty-bearing license, with the
right to sublicense, to make, use, offer for sale, sell, and import such Non-Collaboration
Candidate throughout the world, outside of this Agreement. The applicable Electing R&D
Holder shall be granted such commercial license rights without limitation of any kind
(notwithstanding clause 8) or obligation other than to pay royalties as provided for in
this clause 18.10 (and in connection therewith the Company shall cooperate with, and enter
into any reasonable arrangements requested by, the Electing R&D Holder in order to
facilitate the transfer of such rights in respect of the applicable Non-Collaboration
Candidate in accordance with this clause 18.10). Royalties shall be due to the
non-Electing R&D Holder on the Electing R&D Holder’s sales of products based on (or
comprising) the Non-Collaboration Candidate, at a rate of ten percent (10%) of the
Electing R&D Holder’s and its Affiliates’ (and any of its or their successors’ or
sublicensees’) net sales of such products for which at least one Valid Claim of the Closing
Date IP Covers such products (with net sales being calculated on a product-by-product basis
in accordance with the definition of “Net Sales” under the Royalty Agreement, during the
period running from the first commercial sale of such product for which royalties are
payable; provided, however, in the event that the Electing R&D Holder’s or
any of its Affiliates or sublicensees shall be required to pay any consideration or
royalties for a license or rights to any Blocking Third Party Intellectual Property or
Enhancing Third Party Intellectual Property during any calendar year, it shall be entitled
to deduct fifty percent (50%) of such consideration or royalties actually paid to any third
party for such license or rights from the royalties otherwise payable in respect of such
calendar year; provided that (i) no such deduction shall apply for any
consideration or royalties paid in respect of any patent rights set forth on Schedule 4 of
the Royalty Agreement, including any Blocking Third Party Intellectual Property or
Enhancing Third Party Intellectual Property set forth on such Schedule 4, and (ii) the
aggregate amount of any and all deductions under this sentence for any calendar year shall
not be greater than an amount which would have the effect of decreasing the royalties
otherwise payable in respect of such calendar year by more than twenty-five percent (25%).
The Company, the Electing R&D Holder and non-Electing R&D Holder (or its designee) shall
use good-faith efforts to enter into a written agreement providing for the license grants
and royalty terms hereunder as soon as reasonably practical.
	 
	18.11	 	Any payments made to a non-Electing R&D Holder (or its designee) pursuant to clause
18.10 shall be subject to deduction or withholding of any taxes as required by Applicable

47

 

	 	 	Law. Any amounts so deducted or withheld shall be paid over by the Electing R&D Holder to
the applicable tax authority, and upon request by the appropriate party, the Electing R&D
Holder will furnish that party with proof of payment of such tax. The parties shall
cooperate reasonably to minimize such taxes in accordance with Applicable Law. Each party
shall cooperate reasonably as requested by another party in completing and filing any
documents required under the provisions of any Applicable Law in connection with the making
of any required tax payment or withholding payment, or in connection with any claim to a
refund of or credit for such payment.
	 
	19.	 	Transactions with Wyeth
	 
	19.1	 	Neither Jupiter Parent nor any of its Affiliates will engage in any transaction with
Wyeth or any of its Affiliates if such transaction involves (a) the forfeiture or modification
by the Company, in a manner adverse to the Company, of one or more rights under the
Collaboration Agreement and (b) the receipt by Jupiter Parent or any of its Affiliates (other
than the Company and its Subsidiaries) of one or more rights against (or benefits owing from)
Wyeth or any of its Affiliates with respect to matters not related to the Collaboration
Agreement under circumstances in which the transactions described in this clause (b) would not
have occurred absent the transaction described in clause (a) above.
	 
	20.	 	Parent guarantees
	 
	20.1	 	Jupiter Parent hereby irrevocably guarantees, as principal and not as surety, (a)
the due and punctual payment of all monetary obligations now or hereafter due and payable by
Jupiter Sub-1 or Jupiter Sub-2 pursuant to this Agreement or the Loan Agreement, and (b) the
full and complete performance of all covenants, agreements, duties and obligations applicable
to the Jupiter Shareholders or Jupiter Sub-2 pursuant to this Agreement or the Loan Agreement,
whether such covenants, agreements, duties or obligations are outstanding on the date hereof
or arise or are incurred at any time or times hereafter, in each case without setoff or
reduction for any purpose. The guarantee of Jupiter Parent shall automatically be released at
the time and to the extent provided in clauses 11.4 or 15.
	 
	20.2	 	Lucky Parent hereby irrevocably guarantees, as principal and not as surety, (a) the
due and punctual payment of all monetary obligations now or hereafter due and payable by Lucky
Sub-1 or Lucky Sub-2 pursuant to this Agreement or the Royalty Agreement, and (b) the full and
complete performance of all covenants, agreements, duties and obligations applicable to the
Lucky Shareholders or Lucky Sub-2 pursuant to this Agreement or the Royalty Agreement, whether
such covenants, agreements, duties or obligations are outstanding on the date hereof or arise
or are incurred at any time or times hereafter, in each case without setoff or reduction for
any purpose. The guarantee of

48

 

	 	 	Lucky Parent shall automatically be released at the time and to the extent provided in
clauses 11.4 or 15.
	 
	21.	 	Indemnification; exculpation
	 
	21.1	 	The articles of association of the Company shall, at all times, contain provisions
(a) exempting and indemnifying the Jupiter Sub Directors, the Lucky Sub Directors and the
secretary from liability and (b) permitting such directors and the secretary to have, and
profit from, interests which may conflict with those of the Company and its Subsidiaries, in
each case to the fullest extent permitted by Applicable Law.
	 
	22.	 	Whole agreement
	 
	22.1	 	This Agreement, and any documents referred to herein or executed contemporaneously
herewith, constitute the whole agreement between the parties and supersede any previous
arrangement, understanding or agreement between them relating to the subject matter they
cover.
	 
	22.2	 	Nothing in this clause 22 shall limit or exclude any liability for fraud.
	 
	23.	 	Assignments
	 
	23.1	 	This Agreement and the rights and obligations hereunder shall not be assignable or
transferable by any party without the prior written consent of the other parties hereto (it
being understood and agreed that any assignment and transfer of rights and obligations
hereunder in connection with permitted Transfers of Shares shall be effected by way of Deed
Polls of Adherence, amendments and releases as contemplated by clause 11.4).
	 
	24.	 	Amendment and waiver
	 
	24.1	 	This Agreement may be amended or modified only by a written instrument signed by or
on behalf of all the parties.
	 
	24.2	 	No waiver of any provision hereof shall be valid or effective unless in writing and
signed by or on behalf of all the parties.
	 
	24.3	 	A person that waives a right in relation to one person, or takes or fails to take
any action against that person, does not affect its rights against any other person.

49

 

	24.4	 	No failure to exercise or delay in exercising any right or remedy provided under
this Agreement or by law constitutes a waiver of such right or remedy or shall prevent any
future exercise in whole or in part thereof.
	 
	24.5	 	No single or partial exercise of any right or remedy under this Agreement shall
preclude or restrict the further exercise of any such right or remedy.
	 
	24.6	 	Unless specifically provided otherwise, rights and remedies arising under this
Agreement are cumulative and do not exclude rights and remedies provided by law.
	 
	25.	 	Costs
	 
	 	 	Unless otherwise provided, all costs in connection with the negotiation, preparation and
execution of this Agreement shall be borne by the party that incurred the costs.
	 
	26.	 	No partnership or agency
	 
	 	 	The parties to this Agreement are not in partnership with each other and there is no
relationship of principal and agent between them.
	 
	27.	 	Third party rights
	 
	27.1	 	Subject to clause 18.9, this Agreement is for the sole benefit of the parties hereto
and nothing herein expressed or implied shall give or be construed to give to any person,
other than the parties hereto, any legal or equitable rights hereunder.
	 
	28.	 	Notice
	 
	28.1	 	A notice given under this Agreement:

	 	(a)	 	shall be sent for the attention of the person, and to the address or fax
number, given in this clause 28 (or such other address, fax number or person as the
relevant party may notify to the other party, such notice to take effect five days
from the notice being received); and
	 
	 	(b)	 	shall be:

	 	(i)	 	delivered personally;
	 
	 	(ii)	 	delivered by commercial courier;
	 
	 	(iii)	 	sent by fax;
	 
	 	(iv)	 	sent by pre-paid first-class post or recorded delivery; or

50

 

	 	(v)	 	(if the notice is to be served by post outside the country from
which it is sent) sent by airmail.

	28.2	 	The addresses for service of notice are:

	 	(a)	 	Janssen Pharmaceutical
	 
	 	 	 	State Road 933 KM 0.1

Mamey Ward

Gurabo, PR 00778

	 
	 	 	 	and
	 
	 	 	 	Janssen Pharmaceutical

HC 02, Box 19250

Gurabo, Puerto Rico 00778

Attention: Ivan Cartagena, Director

Fax: 787-272-7691
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Tom Heyman, Managing Director JPH NV

Global Head Business Development

Tel: 732-524-0400

Fax: 732-846-2058

	 
	 	 	 	and a copy to:
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

Attention: Office of General Counsel

Tel: 732-524-0400

Fax: 732-524-2788
	 
	 	(b)	 	Janssen Alzheimer Immunotherapy (Holding) Limited
	 
	 	 	 	Little Island Industrial Estate

Little Island, County Cork

Republic of Ireland

Attention: Corporate Secretary

51

 

	 	 	 	Fax: 353 (0) 21 4978 552
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Tom Heyman, Managing Director JPH NV

Global Head Business Development

Tel: 732-524-0400

Fax: 732-846-2058
	 
	 	 	 	with a copy to (which shall not constitute notice)
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788
	 
	 	(c)	 	Latam Properties Holdings
	 
	 	 	 	c/o Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Tom Heyman, Managing Director JPH NV, Global Head 

Business Development

Fax number: 732-846-2058
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788
	 
	 	(d)	 	JNJ Irish Investments ULC
	 
	 	 	 	c/o Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Tom Heyman, Managing Director JPH NV, Global Head 

Business Development

52

 

	 	 	 	Fax number: 732-846-2058
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788
	 
	 	(e)	 	Elan Corporation, plc
	 
	 	 	 	Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713
	 
	 	(f)	 	Crimagua Limited
	 
	 	 	 	Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Elan Corporation, plc

Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713
	 
	 	(g)	 	Elan Pharma International Limited
	 
	 	 	 	Monksland, Athlone, County Westmeath, Ireland

For the attention of: VP Legal

Fax number: +353 9 06492427
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	Elan Corporation, plc

Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713
	 
	 	(h)	 	Janssen Alzheimer Immunotherapy
	 
	 	 	 	Little Island Industrial Estate, Little Island, County Cork, Republic of Ireland

53

 

	 	 	 	Attention: Corporate Secretary

Fax number: 353 (0) 21 4978 552
	 
	 	 	 	with a copy to (which shall not constitute notice):
	 
	 	 	 	One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Tom Heyman, Managing Director JPH NV, Global Head

Business Development

Fax number: 732-846-2058
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788
	 
	 	 	 	Elan Corporation, plc

Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713

	28.3	 	A notice is deemed to have been received:

	 	(a)	 	if delivered personally, at the time of delivery;
	 
	 	(b)	 	if delivered by commercial courier, at the time of signature of the
courier’s receipt;
	 
	 	(c)	 	if sent by fax, at the time of transmission;
	 
	 	(d)	 	if sent by pre-paid first class post or recorded delivery, 48 hours from
the date of posting;
	 
	 	(e)	 	if sent by airmail, five days from the date of posting; or
	 
	 	(f)	 	if deemed receipt under the previous paragraphs of this subclause is not
within business hours (meaning 9.00 am to 5.30 pm Monday to Friday on a day that is
not a public holiday in the place of receipt), when business next starts in the
place of deemed receipt.

	28.4	 	To prove service it is sufficient to prove that the notice was transmitted by fax to
the fax number of the party or, in the case of post, that the envelope containing the notice
was properly addressed and posted.

54

 

	29.	 	Severance
	 
	29.1	 	If any provision of this Agreement (or part of a provision) is found by any court or
administrative body of competent jurisdiction to be invalid, unenforceable or illegal, the
other provisions shall remain in force.
	 
	29.2	 	If any invalid, unenforceable or illegal provision would be valid, enforceable or
legal if some part of it were deleted or modified, the provision shall apply with whatever
modification is necessary to give effect to the commercial intention of the parties.
	 
	30.	 	Further assurance
	 
	 	 	Each party shall promptly execute and deliver all such documents, and do all such things,
as any other party may from time to time reasonably require for the purpose of giving full
effect to the provisions of this Agreement.
	 
	31.	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, each of which is an original
and which together have the same effect as if each party had signed the same document.
	 
	32.	 	Survival
	 
	 	 	This Agreement shall remain in full force and effect until terminated in accordance with
clause 15.
	 
	33.	 	Governing law and jurisdiction
	 
	33.1	 	This Agreement and any disputes or claims arising out of or in connection with its
subject matter or formation (including non-contractual disputes or claims) shall be governed
by and construed in accordance with the laws of Ireland.
	 
	33.2	 	The parties irrevocably agree that the courts of Ireland have exclusive jurisdiction
to settle any dispute or claim that arises out of or in connection with this Agreement or its
subject matter or formation (including non-contractual disputes or claims).

[Remainder of page intentionally left blank]

55

 

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

	 	 	 	 	 	 	 

	 	 	JANSSEN PHARMACEUTICAL,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ Ivan Cartagena	 	 
	 

	 	 	 	Name: Ivan Cartagena	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ Gerard Collins	 	 
	 

	 	 	 	Name: Gerard Collins	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	LATAM PROPERTIES HOLDINGS,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ Alberto F. Navarro Dial	 	 
	 

	 	 	 	Name: Alberto F. Navarro Dial	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	JNJ IRISH INVESTMENTS ULC,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ Paul G. Wulfing	 	 
	 

	 	 	 	Name: Paul G. Wulfing	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	JANSSEN ALZHEIMER IMMUNOTHERAPY,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ Gerard Collins	 	 
	 

	 	 	 	Name: Gerard Collins	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	Signature Page to the Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 

	 	 	ELAN CORPORATION, PLC,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ William Daniel	 	 
	 

	 	 	 	Name: William Daniel	 	 
	 

	 	 	 	Title: EVP, Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	CRIMAGUA LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ William Daniel	 	 
	 

	 	 	 	Name: William Daniel	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	ELAN PHARMA INTERNATIONAL LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	/s/ William Daniel	 	 
	 

	 	 	 	Name: William Daniel	 	 
	 

	 	 	 	Title:Director	 	 

Signature Page to the Shareholders’ Agreement

 

 

EXHIBIT A

MEMORANDUM AND ARTICLES OF ASSOCIATION

See attached.

 

 

EXHIBIT A

Cert. No. 472372

Companies Acts 1963 to 2006

UNLIMITED COMPANY HAVING A SHARE CAPITAL

MEMORANDUM OF ASSOCIATION

of

JANSSEN ALZHEIMER IMMUNOTHERAPY

(as adopted by Special Resolution dated 17 August 2009)

	1.	 	The name of the Company is Janssen Alzheimer Immunotherapy1.
	 
	2.	 	The objects for which the Company is established are:

	 	2.1	 	To carry out the business contemplated by that certain Research, Development
and Commercialization Agreement dated as of March 12, 2000 originally among Neuralab
Limited and American Home Products Corporation, as amended and assigned from time to
time, and business and activities in furtherance thereof.
	 
	 	2.2	 	To acquire and undertake the whole or any part of the business, property and
liabilities of any person or company carrying on any business which the Company is
authorised to carry on, or possessed of property suitable for the purposes of the
Company.
	 
	 	2.3	 	To amalgamate with any other company.
	 
	 	2.4	 	To apply for, purchase or otherwise acquire any patents, brevets d’invention,
licences, concessions and the like conferring any exclusive or non-exclusive or limited
rights to use or any secret or other information as to any invention which may seem
capable of being used for any of the purposes of the Company or the acquisition of
which may seem calculated directly or indirectly to benefit the Company, and to use,
exercise, develop or grant licences in respect of or otherwise turn to account the
property, rights or information so acquired.
	 
	 	2.5	 	To enter into partnership or into any arrangement for sharing profits, union of
interests, co-operation, joint venture, reciprocal concession or otherwise with any
person or company carrying on or engaged in or about to carry on or engage in any
business or transaction which the Company is authorised to carry on or engage in or any
business or transaction capable of being conducted so as directly or indirectly to
benefit this Company.
	 
	 	2.6	 	To take or otherwise acquire and to hold shares and securities of any company
and to sell, hold, reissue with or without guarantee or otherwise deal with the same.

 

			
	1	 	By written resolution dated 17 August 2009,
the Company changed its name from Juno Neurosciences to Janssen Alzheimer
Immunotherapy.

1

 

	 	2.7	 	To enter into any arrangements with any governments or authorities, supreme,
municipal, local or otherwise, that may seem conducive to the Company’s objects or any
of them and to obtain from any such government or authority any rights, privileges and
concessions which the Company may think it desirable to obtain and to carry out,
exercise and comply with any such arrangements, rights, privileges and concessions.
	 
	 	2.8	 	To establish and support or aid in the establishment and support of
associations, institutions, funds, trusts and conveniences calculated to benefit
directors and ex-directors, employees or ex-employees of the Company or the dependants
or connections of such persons, and to grant pensions and allowances and to do any acts
or things or make any arrangements or provisions enabling employees of the Company or
other persons aforesaid to become shareholders in the Company, or otherwise to
participate in the profits of the Company upon such terms and in such manner as the
Company thinks fit, and to make payments towards insurance and to subscribe or
guarantee money for charitable or benevolent objects or for any exhibition or for any
public, general or useful object, or any other object whatsoever which the Company may
think advisable.
	 
	 	2.9	 	To promote any company or companies for the purpose of acquiring all or any of
the property and liabilities of this Company or for any other purpose which may seem
directly or indirectly calculated to benefit this Company.
	 
	 	2.10	 	Generally to purchase, take on lease or in exchange, hire or otherwise acquire
any real and personal property and any rights or privileges which the Company may think
necessary or convenient for the purposes of its business.
	 
	 	2.11	 	To develop and turn to account any land acquired by the Company or in which it
is interested and in particular by laying out and preparing the same for building
purposes, constructing, altering, pulling down, decorating, maintaining, fitting up and
improving buildings and conveniences and by planting, paving, draining, farming,
cultivating, letting or building leases or building agreement and by advancing money to
and entering into contracts and arrangements of all kinds with builders, tenants and
others.
	 
	 	2.12	 	To construct, maintain and alter any building or works necessary or convenient
for any of the purposes of the Company or for the benefit of its employees.
	 
	 	2.13	 	To construct, improve, maintain, develop, work, manage, carry out or control
any roads, ways, tramways, railways, branches or sidings, bridges, reservoirs,
watercourses, wharves, manufactories, warehouses, electric works, shops, stores and
other works and conveniences which may seem calculated directly or indirectly to
advance the Company’s interest and to contribute to, subsidise or otherwise assist or
take part in the construction, improvement, maintenance, working, management, carrying
out or control thereof.
	 
	 	2.14	 	To invest and deal with the moneys of the Company not immediately required in
such manner as may from time to time be determined.
	 
	 	2.15	 	To lend money to such persons or companies either with or without security and
upon such terms as may seem expedient (including on an interest free basis) and in
particular to customers and others having dealings with the Company and to guarantee
and give indemnities in respect of and otherwise secure the performance of contracts by
any such persons or companies.

2

 

	 	2.16	 	To engage in currency exchange and interest rate transactions including, but
not limited to, dealings in foreign currency, spot and forward rate exchange contracts,
futures, options, forward rate agreements, swaps, caps, floors, collars and any other
foreign exchange or interest rate hedging arrangements and such other instruments as
are similar to, or derived from, any of the foregoing whether for the purpose of making
a profit or avoiding a loss or managing a currency or interest rate exposure or any
other exposure or for any other purpose.
	 
	 	2.17	 	To borrow or raise or secure the payment of money in such manner as the Company
shall think fit and in particular by the issue of debentures or debenture stock,
perpetual or otherwise, charged upon all or any of the Company’s property, both present
and future, including its uncalled capital, and to purchase, redeem or pay off any such
securities.
	 
	 	2.18	 	To guarantee, support or secure, whether by personal covenant (including any
indemnity) or by mortgaging or charging all or any part of the undertaking, property
and assets (both present and future) and uncalled capital of the Company, or by
indemnity or undertaking, or by any one or more of such methods, the performance of the
obligations of, and the repayment or payment of the principal amounts of and premiums,
interest and dividends on any securities of, indebtedness or obligation of any person,
firm or company including (without prejudice to the generality of the foregoing) any
company which is for the time being the Company’s holding company or subsidiary as
defined by section 155 of the Companies Act, 1963, or another subsidiary as defined by
the said section of the Company’s holding company or otherwise associated with the
Company in business.
	 
	 	2.19	 	To remunerate any person or company for services rendered or to be rendered in
placing or assisting to place or guaranteeing the placing of any of the shares of the
Company’s capital or any debentures, debenture stock or other securities of the Company
or in or about the formation or promotion of the Company or the conduct of its
business.
	 
	 	2.20	 	To draw, make, accept, indorse, discount, execute and issue promissory notes,
bills of exchange, bills of lading, warrants, debentures and other negotiable or
transferable instruments.
	 
	 	2.21	 	To undertake and execute any trusts the undertaking whereof may seem desirable
and either gratuitously or otherwise.
	 
	 	2.22	 	To sell or dispose of the undertaking of the Company or any part thereof for
such consideration as the Company may think fit, and in particular for shares,
debentures or securities of any other company having objects altogether or in part
similar to those of this Company.
	 
	 	2.23	 	To adopt such means of making known the products of the Company as may seem
expedient and in particular by advertising in the press, by circulars, by purchase and
exhibition of works of art or interest, by publication of books and periodicals and by
granting prizes, rewards and donations.
	 
	 	2.24	 	To obtain any Act of the Oireachtas or provisional order for enabling the
Company to carry any of its objects into effect or for effecting any modification of
the Company’s constitution or for any other purpose which may seem expedient and to
oppose any proceedings or applications which may seem calculated directly or indirectly
to prejudice the Company’s interests.

3

 

	 	2.25	 	To procure the Company to be registered or recognised in any country or place.
	 
	 	2.26	 	To sell, improve, manage, develop, exchange, lease, mortgage, enfranchise,
dispose of, turn to account or otherwise deal with all or any of the property and
rights of the Company.
	 
	 	2.27	 	To promote freedom of contract, and to resist, insure against, counteract and
discourage interference therewith, to join any lawful federation, union or association,
or do any other lawful act or thing with a view to preventing or resisting directly or
indirectly any interruption of or interference with the Company’s or any other trade or
business or providing or safeguarding against the same, or resisting or opposing any
strike, movement or organisation which may be thought detrimental to the interests of
the Company or its employees and to subscribe to any association or fund for any such
purposes.
	 
	 	2.28	 	To make gifts or grant bonuses to the directors or any other persons who are or
have been in the employment of the Company including substitute and alternate
directors.
	 
	 	2.29	 	To grant, convey, transfer or otherwise dispose of any property or asset of the
Company of whatever nature or tenure for such price, consideration, sum or other return
whether equal to or less than the market value thereof and whether by way of gift or
otherwise as the directors shall deem fit and to grant any fee farm grant or lease or
to enter into any agreement for letting or hire of any such property or asset for a
rent or return equal to or less than the market or rack rent therefor or at no rent and
subject to or free from covenants and restrictions as the directors shall deem
appropriate.
	 
	 	2.30	 	To do all or any of the above things in any part of the world, and as
principals, agents, contractors, trustees or otherwise and by or through trustees,
agents or otherwise and either alone or in conjunction with others.
	 
	 	2.31	 	To distribute any of the property of the Company in specie among the members.
	 
	 	2.32	 	To do all such other things as the Company may think incidental or conducive to
the attainment of the above objects or any of them.

	 	 	NOTE: it is hereby declared that in this memorandum of association:

	 	(a)	 	the word “company”, except where used in reference to this Company, shall be
deemed to include a body corporate, whether a company (wherever formed, registered or
incorporated), a corporation aggregate, a corporation sole and a national or local
government or other legal entity; and
	 
	 	(b)	 	the word “person”, shall be deemed to include where the context permits an
unincorporated body of persons, a partnership, a club or other association as well as
an individual; and
	 
	 	(c)	 	the word “property”, shall be deemed to include, where the context permits,
real property, personal property including choses or things in action and all other
intangible property and money and all estates, rights, titles and interests therein and
includes the Company’s uncalled capital and future calls and all and every other
undertaking and asset; and
	 
	 	(d)	 	words denoting the singular number only shall include the plural number and
vice versa; and

4

 

	 	(e)	 	it is intended that the objects specified in each paragraph in this clause
shall, except where otherwise expressed in such paragraph, be separate and distinct
objects of the Company and shall not be in any way limited or restricted by reference
to or inference from the terms of any other paragraph or the order in which the
paragraphs of this clause occur or the name of the Company.

WE, the several persons whose names, addresses and descriptions are subscribed, wish to be formed
into a Company in pursuance of this memorandum of association, and we agree to take the number of
shares in the capital of the Company set opposite our respective names.

	 	 	 	 	 	 	 
	 

	 	Name, address and description

of subscriber
	 	Number of share(s) taken

by the subscriber
	 	 

Juno Neurosciences (Holding) Limited

Little Island Industrial Estate

Little Island

Co. Cork

500 Ordinary Shares

JnJ Irish Investments ULC

Suite 260

Three Bentall Centre

P.O. Box 49314

595 Burrand Street

Vancouver, BC V7X1L3

Canada

1 Ordinary Share

Dated the 23rd day of June 2009

Witness to the above signatures:          Bryan Mohally

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Companies Acts 1963 to 2006

UNLIMITED COMPANY HAVE A SHARE CAPITAL

ARTICLES OF ASSOCIATION

OF

JANSSEN ALZHEIMER IMMUNOTHERAPY2

(as adopted by Special Resolution dated 17 August 2009)

INTERPRETATION

	1.	 	(a)     The regulations contained in Table A, Parts I and Part II and Table C of the Act shall
not apply to the Company.

	 	(b)	 	In these articles :
	 
	 	 	 	Accrued and Unpaid Royalty Payments: means, at any time, the royalty payments that,
at such time, (i) have accrued pursuant to the terms and conditions of the Royalty
Agreement (if any) and (ii) have not been paid pursuant to article 5(f);
	 
	 	 	 	Act: means the Companies Act, 1963 (No. 33 of 1963);
	 
	 	 	 	Affiliate: of any person means, at any time, another person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such first person at such time;
	 
	 	 	 	Aggregate Antidilution Amount: has the meaning set out in the Shareholders’
Agreement;
	 
	 	 	 	Antidilution Obligatory Transfer Event: has the meaning set out in the
Shareholders’ Agreement;
	 
	 	 	 	Applicable Laws: means any and all applicable laws (whether civil, criminal or
administrative) including, but not limited to, common law, statutes, subordinate
legislation, treaties, regulations, directives, decisions, by-laws, circulars,
codes, orders, notices, demands, decrees, injunctions, guidance, judgments or
resolutions of a parliamentary government, quasi-government, federal, state or
local government, statutory, administrative or regulatory body, court or agency in
any part of the world which is in force or enacted from time to time;
	 
	 	 	 	Board: means the board of Directors of the Company;

 

			
	2	 	By written resolution dated 17 August 2009,
the Company changed its name from Juno Neurosciences to Janssen Alzheimer
Immunotherapy.

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	 	 	 	Calendar Quarter: means a quarter of a Calendar Year, based on the applicable
thirteen week or fourteen week periods under the Jupiter Universal Calendar for
that year;
	 
	 	 	 	Calendar Year: means a calendar year based on the Jupiter Universal Calendar for
that year;
	 
	 	 	 	Change of Control: has the meaning set out in the Shareholders’ Agreement;
	 
	 	 	 	Companies Acts: means the Companies Acts, 1963 to 2005 and Parts 2 and 3 of the
Investment Funds, Companies and Miscellaneous Provisions Act 2006, all statutory
instruments which are to be read as one with, or construed or read together as one
with, the Companies Acts and every statutory modification and re-enactment thereof
for the time being in force;
	 
	 	 	 	Crimagua means Crimagua Limited, an Irish incorporated limited company (registered
number 465848) having its registered office at Treasury Building, Lower Grand Canal
Street, Dublin 2;
	 
	 	 	 	Directors: means the directors for the time being of the Company or the directors
present at a meeting of the Board and includes any person occupying the position of
director by whatever name called, and “Director” means any one of them;
	 
	 	 	 	EPIL: means Elan Pharma International Limited, an Irish incorporated limited
company (registered number 222276) having its registered office at Monksland,
Athlone, Co. Westmeath;
	 
	 	 	 	Encumbrance: means any mortgage, charge (fixed or floating), pledge, lien,
hypothecation, guarantee, trust, right of set-off or other third party right or
interest (legal or equitable), including any assignment by way of security,
reservation of title or other security interest of any kind, howsoever created or
arising, or any other agreement or arrangement (including a sale and repurchase
agreement) having a similar effect. The term “Encumber” shall have a correlative
meaning;
	 
	 	 	 	Indebtedness: of any person means (i) all obligations of such person for borrowed
money, (ii) all obligations of such person evidenced by bonds, debentures, notes or
similar instruments, (iii) all obligations of such person upon which interest
charges are customarily paid by such person, other than trade credit incurred in
the ordinary course of business, (iv) all indebtedness of others secured by (or for
which the holder of such indebtedness has an existing right, contingent or
otherwise, to be secured by) any Encumbrance on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed, (v) all
capital lease obligations, purchase money obligations and synthetic lease
obligations of such person, (vi) any advance or deferred purchase agreement if one
of the primary reasons behind entering into the agreement is to finance the
acquisition or construction of the assets or service in question, (vii) all
obligations of such person for the reimbursement of any obligor in respect of

2

 

	 	 	 	letters of credit, letters of guaranty, bankers’ acceptances and similar credit
transactions (other than any such letter, acceptance or similar transaction entered
into in the ordinary course of business and not drawn (or, if drawn, not repaid
within five business days thereafter)) and (viii) any amount of any liability in
respect of any guarantee or counter-indemnity for any of the items referred to in
subclauses (i) through (vii) above;
	 
	 	 	 	Jupiter Shareholders: means Janssen Alzheimer Immunotherapy (Holding) Limited, JnJ
Irish Investments ULC and any of their Affiliates which may hold Shares as a result
of a Transfer permitted by article 25;
	 
	 	 	 	Jupiter Shares: means, at any time, the Shares then held by the Jupiter
Shareholders;
	 
	 	 	 	Jupiter Universal Calendar: means the universal calendar Johnson & Johnson uses as
part of its financial reporting system, as provided to the Company from time to
time by Janssen Alzheimer Immunotherapy (Holding) Limited;
	 
	 	 	 	Loan Agreement: means the loan agreement between the Company and an Affiliate of
Johnson & Johnson to be entered into on or around the time of the issuance of Class
E Shares to Crimagua, as amended from time to time;
	 
	 	 	 	Loan: means the loan made by the Company to the relevant Affiliate of Johnson &
Johnson pursuant to the Loan Agreement;
	 
	 	 	 	Lucky Shareholders: means Crimagua and any of its Affiliates that may hold Shares
as a result of a Transfer permitted by article 25;
	 
	 	 	 	Lucky Shares: means, at any time, the Shares then held by the Lucky Shareholders;
	 
	 	 	 	Office: means the registered office for the time being of the Company;
	 
	 	 	 	Priority Dividend: means a dividend declared and paid by the Company on the Class
O-J Shares in an amount equal to the monies repaid by the relevant Affiliate of
Johnson & Johnson on or around the Positive Cash Flow Date (as such term is defined
in the Loan Agreement) (such amount being the “Priority Dividend Amount”);
	 
	 	 	 	Register: means the register of members to be kept as required by section 116 of
the Act;
	 
	 	 	 	Restricted Period: means the period beginning on the date of adoption of these
Articles and ending on the third anniversary thereof;
	 
	 	 	 	Royalty Agreement: means that certain royalty letter agreement to be entered into
between EPIL and the Company, as amended from time to time;

3

 

	 	 	 	Secretary: means any person appointed to perform the duties of the secretary of the
Company;
	 
	 	 	 	Seal: means the common seal of the Company;
	 
	 	 	 	Shareholder: means, at any time, any person that, at such time, holds one or more
Shares as a result of an issuance or Transfer made in compliance with this
Agreement, and Shareholders means each of them;
	 
	 	 	 	Shareholders’ Agreement: means the shareholders’ agreement to be entered into
between, inter Janssen Pharmaceutical, Janssen Alzheimer Immunotherapy (Holding)
Limited, JnJ Irish Investments ULC, Elan Corporation, plc, Crimagua, EPIL and the
Company immediately prior to the issuance of Class O-E Shares to Crimagua;
	 
	 	 	 	Sharing Percentage: means, at any time:

(a) with respect to any Jupiter Shareholder, the quotient (expressed as a
percentage) obtained by dividing (i) the total number of Class O-J Shares
held by such Jupiter Shareholder at such time by (ii) the sum of (x) the
total number of Class O-J Shares held by all Jupiter Shareholders at such
time plus (y) the total number of Class O-E Shares held by all Lucky
Shareholders at such time (such sum, the “Sharing Percentage
Denominator”); and

(b) with respect to any Lucky Shareholder, the quotient (expressed as a
percentage) obtained by dividing (i) the total number of Class O-E Shares
held by such Lucky Shareholder at such time by (ii) the Sharing Percentage
Denominator;

	 	 	 	State: means Ireland; and
	 
	 	 	 	Transfer: means, whether directly or indirectly (by merger, scheme of arrangement,
operation of law or otherwise), any sale, assignment, license, sublicense,
conveyance, transfer, donation or any other means to dispose of, or pledge,
hypothecate or otherwise Encumber in any manner whatsoever, or permit or suffer any
Encumbrance of, any Shares or any interest in Shares or other interest in the
Company.
	 
	 	(c)	 	Expressions referring to writing shall, unless the contrary intention
appears, be construed as including references to printing, lithography, photography,
and any other modes of representing or reproducing words in a visible form.
	 
	 	(d)	 	Unless the contrary intention appears, words or expressions contained in
these articles shall bear the same meaning as in the Companies Acts or in any
statutory modification thereof in force at the date at which these articles become
binding on the Company.

PRIVATE COMPANY

	2.	 	The Company is a private company and accordingly:

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	 	(a)	 	the right to transfer shares is restricted in the manner hereinafter
prescribed;
	 
	 	(b)	 	the number of members of the Company (exclusive of persons who are in the
employment of the Company and of persons who, having been formerly in the employment
of the Company, were while in such employment and have continued after the termination
of such employment to be members of the Company) is limited to ninety-nine (or such
greater number as may be prescribed by the Act as being the maximum permitted number
of members in a private company) so, however, that where two or more persons hold one
or more shares in the Company jointly, they shall for the purpose of this article be
treated as a single member;
	 
	 	(c)	 	any invitation or offer to the public to subscribe for any shares, debentures
or other securities of the Company is prohibited provided always that the Company may
make such offers or invitations to subscribe for debentures as a private company can
make in accordance with section 33(5) of the Companies Act 1963 (as amended); and
	 
	 	(d)	 	the Company shall not have power to issue share warrants to bearer.

SHARE CAPITAL, MEMBERS AND VARIATION OF RIGHTS

	3.	 	The share capital of the Company is US$10,000,010 divided into 501 Class O-J Shares (“Class
O-J Shares”) of US$0.01 each, 499 Class O-E Shares (“Class O-E Shares”) of US$0.01 each and
1,000,000,000 Class C Shares (“Class C Shares”) of US$0.01 each (together the “Shares”).
	 
	4.	 	The number of members with which the Company proposes to be registered is two.
	 
	5.	 	Subject to the requirements of Applicable Law, within 75 days after each Calendar Quarter
(and on such other days the Board may determine), the Company shall transfer all cash (if any)
then available (as determined by the Board in good faith after taking into account all
projected cash requirements and needs of the Company over a foreseeable period (including the
repayment or payment of any Indebtedness or other liabilities), all projected revenue over
such period and all appropriate reserves) to the Shareholders in the following priority:

	 	(a)	 	first, in the event that Janssen Alzheimer
Immunotherapy (Holding) Limited does not exercise its rights under clause 12.4
of the Shareholders’ Agreement following an Antidilution Obligatory Transfer
Event, in payment of a dividend on the Class O-J Shares in an amount equal to
the Aggregate Antidilution Amount to the Jupiter Shareholders pro rata in
proportion to the number of Class O-J Shares then held by each of them, until
such time as the full amount of the Aggregate Antidilution Amount is paid to
the Jupiter Shareholders;
	 
	 	(b)	 	second, in payment of the Priority Dividend (if any)
to the Jupiter Shareholders pro rata in proportion to the number of Class O-J
Shares then held by each of them, until such time as the full Priority
Dividend Amount is paid to the holders of Class O-J Shares;

5

 

	 	(c)	 	third, to the holders of the Class C Shares pro rata
in proportion to the number of Class C Shares then held by each of them (if
any), until such time as no accrued but unpaid preferential dividends on such
shares shall remain outstanding (with such preferential dividends and accruing
from the date the applicable Class C Share was issued);
	 
	 	(d)	 	fourth, to fund the redemption or repayment of the
Class C Shares held by the holders thereof pro rata in proportion to the
number of Class C Shares held by them, for an amount of $1.00 per Class C
Share, until such time as no Class C Shares shall remain outstanding;
	 
	 	(e)	 	fifth, to the Jupiter Shareholders and the Lucky
Shareholders pro rata in accordance with their respective Sharing Percentage,
until such time as the aggregate payments received by the Jupiter Shareholders
(taken together), under this article 5(d) equal five hundred million US
dollars (US$500,000,000) minus the Priority Dividend Amount (if any);
	 
	 	(f)	 	sixth, to EPIL in a dollar amount equal to the
aggregate amount of any Accrued and Unpaid Royalty Payments then owing to
EPIL, until such time as no such payment shall be owing to EPIL; and
	 
	 	(g)	 	seventh, to the Jupiter Shareholders and the Lucky
Shareholders pro rata in accordance with their respective Sharing Percentage.

	(a)	 	All distributions to each Shareholder pursuant to this article 5 shall be
denominated in United States dollars, and shall be payable in integrals of US$1.00, and
articles 92 to 96 (inclusive) and articles 102 to 104 (inclusive) shall be read subject to
this article 5.
	 
	6.	 	On a winding up of the Company, any available assets of the Company shall be applied in the
same manner as specified in article 5, and for the avoidance of doubt the Class O-E Shares
shall not be entitled to the return of any share premium paid (or deemed to be paid) on the
Class O-E Shares.
	 
	7.	 	Rights and Privileges attaching to the O-J Shares:

	 	(i)	 	Voting: each holder of the Class O-J Shares
shall be entitled to receive notice of and attend and speak at all
general meetings of the Company. On a show of hands each holder of a
Class O-J Share shall have one vote. Each Class O-J Share shall carry
one vote per share on a poll.
	 
	 	(ii)	 	Dividends: the dividend rights attaching to
the Class O-J Shares are as set out in article 5.
	 
	 	(iii)	 	Repayment of Capital: the repayment of
capital rights attaching to the Class O-J Shares are as set out in
article 5 and article 6.

	8.	 	Rights and Privileges attaching to the Class O-E Shares:

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	 	(i)	 	Voting: each holder of a Class O-E Share
shall be entitled to receive notice of and attend and speak at all
general meetings of the Company. No holder of a Class O-E Share
shall be entitled to vote at any general meeting of the Company.
	 
	 	(ii)	 	Dividends: the dividend rights attaching to
the Class O-J Shares are as set out in article 5.
	 
	 	(iii)	 	Repayment of Capital: the repayment of
capital rights attaching to the Class O-E Shares are as set out in
article 5 and article 6.

	9.	 	Rights and Privileges attaching to the Class C Shares:

	 	(i)	 	Voting: each holder of a Class C Share
shall be entitled to receive notice of and attend and speak at all
general meetings of the Company. No Class C Share shall be entitled
to vote at any general meeting of the Company.
	 
	 	(ii)	 	Dividends: The holders of the Class C
Shares shall be entitled to be paid a fixed preferential dividend of
15.00% per annum and accruing from the date the applicable Class C
Share was issued. The dividend shall be payable as set forth in
article 5 and otherwise in full on the redemption of the Class C
Shares in accordance with article 9(iv) or otherwise on the winding
up of the Company.
	 
	 	(iii)	 	Repayment of Capital: the repayment of
capital rights attaching to the Class C Shares are as set out in
article 5 and article 6.
	 
	 	(iv)	 	Redemption:

	 	(A)	 	Subject always to the
provisions of article 5 above and to the provisions of the
Companies Acts relating to the redemption of shares (and any
other relevant statutory provisions) in the event of any
payment pursuant to Article 5(c), the Class C Shares held by
holders thereof shall be redeemed (pro rata to the Class C
Shares held by Shareholders) for an amount of US$1.00 per
Class C Share and the Company shall immediately cancel all
such redeemed shares. Any such redemption and cancellation
shall be deemed to automatically occur upon the receipt of
the redemption proceeds by the relevant Shareholder without
further action by any person. Following any and all payments
pursuant to article 5(c), the register of members of the
Company shall be appropriately updated to reflect such
redemption.
	 
	 	(B)	 	If redemption of only part
of the Class C Shares, held by a shareholder is made, the
Company shall, if requested by such Shareholder, issue a
balancing share certificate in respect of the Class C Shares
not so redeemed.

7

 

	 	(C)	 	For the avoidance of doubt,
where payment has been received by the holders of Class C
Shares under article 5 (d) and (c) above, but such Class C
Share has not yet been redeemed, no further rights to payment
shall attach to that Class C Share.

	10.	 	Without prejudice to any special rights previously conferred on the holders of existing
shares, any share may be issued with such preferred, deferred or other special rights, or such
restrictions whether in regard to dividend, voting, return of share capital or otherwise, as
the Company may from time to time determine and any share may be issued on the terms that it
is redeemable or at the option of the Company is liable to be redeemed. Subject to the
provisions of the Companies Act 1990, the redemption of such share may be effected in such
manner as the Directors may from time to time determine.
	 
	11.	 	Without prejudice to any special rights previously conferred on the holders of any existing
shares or class of shares, any share in the Company may be issued with such preferred,
deferred or other special rights or such restrictions, whether in regard to dividend, voting,
return of capital or otherwise, as the Company may from time to time by ordinary resolution
determine.
	 
	12.	 	The rights attached to any class of shares may, whether or not the Company is being wound up,
be varied or abrogated with the consent in writing of the holders of three-fourths of the
issued shares of that class, or with the sanction of a special resolution passed at a separate
general meeting of the holders of the shares of the class.
	 
	13.	 	The rights conferred upon the holders of the shares of any class issued with preferred or
other rights shall not, unless otherwise expressly provided by the terms of issue of the
shares of that class, be deemed to be varied by the creation or issue of further shares
ranking pari passu therewith.
	 
	14.	 	Subject to the provisions of these articles relating to new shares, the shares shall be at
the disposal of the Directors, and they may (subject to the provisions of the Companies Acts)
allot, grant options over or otherwise dispose of them to such persons, on such terms and
conditions and at such times as they may consider to be in the best interests of the Company
and its shareholders, but so that no share shall be issued at a discount.
	 
	15.	 	The Company may pay commission to any person in consideration of a person subscribing or
agreeing to subscribe, whether absolutely or conditionally, for any shares in the Company or
procuring or agreeing to procure subscriptions, whether absolute or conditional, for any
shares in the Company on such terms and subject to such conditions as the Directors may
determine, including, without limitation, by paying cash or allotting and issuing fully or
partly paid shares or any combination of the two. The Company may also, on any issue of
shares, pay such brokerage as may be lawful.
	 
	16.	 	Except as required by law, no person shall be recognised by the Company as holding any share
upon any trust, and the Company shall not be bound by or be compelled in any way to recognise
(even when having notice thereof) any equitable, contingent, future or partial interest in any
share or any interest in any fractional part of a share or (except only as by these articles
or by law otherwise provided) any other rights in respect of any share except an absolute
right to the entirety thereof in the registered holder: this shall not preclude the Company
from requiring the members or a transferee of shares to furnish the

8

 

	 	 	Company with information as to the beneficial ownership of any share when such information
is reasonably required by the Company.
	 
	17.	 	The Company shall not give, whether directly or indirectly, and whether by means of a loan,
guarantee, the provision of security or otherwise, any financial assistance for the purpose of
or in connection with a purchase or subscription made or to be made by any person of or for
any shares in the Company or in its holding company, but this regulation shall not prohibit
any transaction permitted by section 60 of the Act.
	 
	18.	 	The Company shall have a first and paramount lien on every share (not being a fully paid
share) called or payable at a fixed time in respect of that share but the Directors may at any
time declare any share to be wholly or in part exempt from the provisions of this regulation.
The Company’s lien on a share shall extend to all dividends payable thereon.
	 
	19.	 	The Company may sell, in such manner as the Directors think fit, any shares on which the
Company has a lien, but no sale shall be made unless a sum in respect of which the lien exists
is immediately payable, nor until the expiration of 14 days after a notice in writing, stating
and demanding payment of such part of the amount in respect of which the lien exists as is
immediately payable, has been given to the registered holder for the time being of the share,
or the person entitled thereto by reason of his death or bankruptcy.
	 
	20.	 	To give effect to any such sale, the Directors may authorise some person to transfer the
shares sold to the purchaser thereof. The purchaser shall be registered as the holder of the
shares comprised in any such transfer, and he shall not be bound to see to the application of
the purchase money, nor shall his title to the shares be affected by an irregularity or
invalidity in the proceedings in reference to the sale.
	 
	21.	 	The proceeds of the sale shall be received by the Company and applied in payment of such part
of the amount in respect of which the lien exists as is immediately payable, and the residue,
if any, shall (subject to a like lien for sums not immediately payable as existed upon the
shares before the sale) be paid to the person entitled to the shares at the date of the sale.

ALLOTMENT OF SHARES

	22.	 	(a)     The Directors are hereby generally and
unconditionally authorised to exercise all the powers
of the Company to allot relevant securities within
the meaning of section 20 of the Companies
(Amendment) Act 1983. The maximum amount of relevant
securities which may be allotted under the authority
hereby conferred shall be the number of authorised
but unissued relevant securities in the capital of
the Company at the date of incorporation of the
Company. The authority hereby conferred shall expire
on the date which is five years after the date of
incorporation of the Company. The Company may before
such expiry make an offer or agreement which would or
might require relevant securities to be allotted
after such expiry and the Directors may allot
relevant securities in pursuance of such offer or
agreement, notwithstanding that the authority hereby
conferred has expired.

	 	(b)	 	The Directors are hereby empowered pursuant to sections 23 and 24(1) of the
Companies (Amendment) Act 1983 to allot equity securities within the meaning of the
said section 23 for cash pursuant to the authority conferred by paragraph (a) of this
article as if section 23(1) of the Companies (Amendment) Act 1983 did

9

 

	 	 	 	not apply to any such allotment. The Company may before the expiry of such
authority make an offer or agreement which would or might require equity securities
to be allotted after such expiry and the Directors may allot equity securities in
pursuance of such an offer or agreement as if the power conferred by this paragraph
(b) had not expired.
	 
	 	(c)	 	Subject to the provisions of the Companies Acts, the Company may purchase or
otherwise acquire on such terms and in such manner as it thinks fit any shares in the
capital of the Company.

TRANSFER OF SHARES

	23.	 	The instrument of transfer of any share shall be executed by or on behalf of the transferor
and the transferee and the transferor shall be deemed to remain the holder of the share until
the name of the transferee is entered in the register in respect thereof.
	 
	24.	 	Subject to such of the restrictions contained in these articles, any member may transfer all
or any of his shares by instrument in writing in any usual or common form or any other form
which the Directors may approve.
	 
	25.	 	Any member may Transfer all (or any portion) of its shares to any wholly owned subsidiary of
Johnson & Johnson or Elan Corporation plc (as the case may be).
	 
	26.	 	Prior to the expiration of the Restricted Period, no Shareholder shall be entitled to
Transfer any of its Shares other than pursuant to article 25, absent the consent of all other
Shareholders. Following the expiration of the Restricted Period, the Jupiter Shareholders and
the Lucky Shareholders shall be permitted to Transfer all (but not less than all) the Jupiter
Shares or Lucky Shares; provided that in the event the Jupiter Shareholders or Lucky
Shareholders intend to Transfer their respective Shares (any such shareholders, the
“Transferring Shareholders”) other than pursuant to article 25, the Transferring Shareholders
shall give to (x) Janssen Alzheimer Immunotherapy (Holding) Limited (if the Transferring
Shareholders are the Lucky Shareholders) or (y) Crimagua (if the Transferring Shareholders are
the Jupiter Shareholders) written notice of such intention specifying the proposed sale price
(which shall be limited to cash consideration) and any and all other terms, conditions and
details of such intended Transfer (any such notice, a “First Offer Notice” and the party
entitled to receive such notice, the “Non-Transferring Shareholder”). Any such First Offer
Notice shall constitute an offer by the Transferring Shareholders to sell all (but not less
than all) of their Shares on the terms specified by the notice, and the Non-Transferring
Shareholder shall have the exclusive right to accept or reject the offer at any time within 60
days from receipt of the First Offer Notice by delivery of written notice of acceptance to the
Transferring Shareholders. The delivery of any such acceptance notice shall bind the
Transferring Shareholders and the Non-Transferring Shareholder to buy and sell the Shares
proposed to be sold by the Transferring Shareholders. If the Non-Transferring Shareholder does
not accept the offer within such 60-day period, the Transferring Shareholders shall be
entitled to Transfer all (but not less than all) of their Shares to any third party within
(and not later than) 120 days following delivery of the relevant First Offer Notice at a
purchase price and on the terms and conditions set forth in the First Offer Notice (in the
event such sale is not made within the 120 day period referred to above or is proposed to be
made on terms and conditions other than those set forth in the relevant First Offer Notice,
then a replacement First Offer Notice shall be delivered by the Transferring Shareholders and
the foregoing provisions of this article 26 shall apply again in respect of such replacement
notice).

10

 

	27.	 	The Directors may also decline or refuse to register any transfer (notwithstanding compliance
with article 25 or 26) unless:

	 	(a)	 	the instrument of transfer is accompanied by the certificate of the shares to
which it relates, and such other evidence as the Directors may reasonably require to
show the right of the transferor to make the transfer;
	 
	 	(b)	 	the instrument of transfer has been signed by the transferee; and
	 
	 	(c)	 	the instrument of transfer is in respect of one class of share only,

	 	 	but for the avoidance of doubt shall not be entitled to decline or refuse to register any
transfer which complies with the above and articles 25 and 26 (as the case may be).

ALTERATION OF CAPITAL

	28.	 	The Company may from time to time by ordinary resolution increase the share capital by such
sum, to be divided into shares of such amount, as the resolution shall prescribe.
	 
	29.	 	The Company may by ordinary resolution:

	 	(a)	 	consolidate and divide all or any of its share capital into shares of larger
amount than its existing shares;
	 
	 	(b)	 	subdivide its existing shares, or any of them, into shares of smaller amount
than is fixed by the memorandum of association;
	 
	 	(c)	 	cancel any shares which, at the date of the passing of the resolution, have
not been taken or agreed to be taken by any person.

	30.	 	The Company may by special resolution reduce its share capital, any capital redemption
reserve fund or any share premium account in any manner and with and subject to any incident
authorised, and consent required, by law.

GENERAL MEETINGS

	31.	 	Annual general meetings of the Company shall be held in the State.
	 
	32.	 	(a)     Subject to sections 133 and 141 of the Act, an annual general meeting and a meeting
called for the passing of a special resolution shall be called by 21 days’ notice in writing
at the least and a meeting of the Company (other than an annual general meeting or a meeting
for the passing of a special resolution) shall be called by seven days’ notice in writing at
the least. The notice shall be exclusive of the day on which it is served or deemed to be
served and of the day for which it is given and shall specify the day, the place and the hour
of the meeting and in the case of special business the general nature of that business, and
shall be given in a manner authorised by these articles to such persons as are under the
articles of the Company entitled to receive such notices from the Company.

	 	(b)	 	No business shall be transacted at any general meeting unless a quorum of
members is present at the time when the meeting proceeds to business. Save as

11

 

	 	 	 	herein otherwise provided a quorum of members shall be two, present in person or by
proxy.
	 
	 	(c)	 	Subject to section 141 of the Act a resolution in writing signed by the
members for the time being entitled to attend and vote on such resolutions at a
general meeting (or being bodies corporate by their duly authorised representatives)
shall be as valid and effective for all purposes as if the resolution had been passed
at a general meeting of the Company duly convened and held, and may consist of several
documents in like form, each signed by one or more persons, and if described as a
special resolution shall be deemed to be a special resolution within the meaning of
the Act. Any such resolution shall be served on the Company.

	33.	 	Any corporation which is a member of the Company may authorise such persons as it thinks fit
to act as its representative at any meeting or meetings of the Company or of any class of
members of the Company, and the person so authorised shall be entitled to exercise the same
powers on behalf of the corporation which he represents as that corporation could exercise if
it were an individual member of the Company. The corporation shall serve on the Company a
copy of such resolution duly certified by a Director or other officer of such corporation.
	 
	34.	 	(a)     Subject to paragraph (b) of this article 34, the Company shall in each year hold a
general meeting as its annual general meeting in addition to any other meeting in that year,
and shall specify the meeting as such in the notices calling it; and not more than 15 months
shall elapse between the date of one annual general meeting of the Company and that of the
next.

	 	(b)	 	So long as the Company holds its first annual general meeting within 18
months of its incorporation, it need not hold it in the year of its incorporation or
in the year following. Subject to article 31, the annual general meeting shall be
held at such time and place as the Directors shall appoint.

	35.	 	All general meetings other than annual general meetings shall be called extraordinary general
meetings.
	 
	36.	 	The Directors may, whenever they think fit, convene an extraordinary general meeting, and
extraordinary general meetings shall also be convened on such requisition, or in default, may
be convened by such requisitionists, as provided by section 132 of the Act. If at any time
there are not within the State sufficient Directors capable of acting to form a quorum, any
director or the sole member of the Company may convene an extraordinary general meeting in the
same manner as nearly as possible as that in which meetings may be convened by the Directors.

PROCEEDINGS AT GENERAL MEETINGS

	37.	 	All business shall be deemed special that is transacted at an extraordinary general meeting,
and also all that is transacted at an annual general meeting, with the exception of declaring
a dividend, the consideration of the accounts, balance sheets and the reports of the Directors
and auditors, the election of Directors in the place of those retiring, the re-appointment of
the retiring auditors and the fixing of the remuneration of the auditors.
	 
	38.	 	The chairman may, with the consent of any meeting at which a quorum is present, and shall if
so directed by the meeting, adjourn the meeting from time to time and from place

12

 

	 	 	to place, but no business shall be transacted at any adjourned meeting other than the
business left unfinished at the meeting from which the adjournment took place. It shall
not be necessary to give any notice of an adjournment or of the business to be transacted
at an adjourned meeting.

VOTES OF MEMBERS

	39.	 	Where there are joint holders, the vote of the senior who tenders a vote, whether in person
or by proxy, shall be accepted to the exclusion of the votes of the other joint holders; and
for this purpose, seniority shall be determined by the order in which the names stand in the
register.
	 
	40.	 	A member of unsound mind, or in respect of whom an order has been made by any court having
jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee,
receiver, guardian or other person appointed by that court, and any such committee, receiver,
guardian or other person may vote by proxy on a show of hands or on a poll.
	 
	41.	 	No member shall be entitled to vote at any general meeting unless all calls or other sums
immediately payable by him in respect of shares in the Company have been paid.
	 
	42.	 	No objection shall be raised to the qualification of any voter except at the meeting or
adjourned meeting at which the vote objected to is given or tendered, and every vote not
disallowed at such meeting shall be valid for all purposes. Any such objection made in due
time shall be referred to the chairman of the meeting, whose decision shall be final and
conclusive.
	 
	43.	 	Votes may be given either personally or by proxy.
	 
	44.	 	The instrument appointing a proxy shall be in writing under the hand of the appointer or of
his attorney duly authorised in writing, or, if the appointer is a body corporate, either
under seal or under the hand of an officer or attorney duly authorised. A proxy need not be a
member of the Company.
	 
	45.	 	The instrument appointing a proxy and the power of attorney or other authority, if any, under
which it is signed, or a notarially certified copy of that power or authority shall be
deposited at the office or at such other place within the State as is specified for that
purpose in the notice convening the meeting, not less than 48 hours before the time for
holding the meeting or adjourned meeting at which the person named in the instrument proposes
to vote, or, in the case of a poll, not less than 48 hours before the time appointed for the
taking of the poll, and, in default, the instrument of proxy shall not be treated as valid.
	 
	46.	 	An instrument appointing a proxy shall be in the following form or a form as near thereto as
circumstances permit:

“I                of

being a member of the Company hereby appoint

of

or failing him,

13

 

of

as my proxy to vote for me on my behalf at the (annual or extraordinary, as the case may
be) general meeting of the Company to be held on the ....................... day of .................... 20........... and at any adjournment
thereof.

Signed this...............day of.................. 20..........

This form is to be used *in favour/against the resolution. Unless otherwise instructed the
proxy will vote as he thinks fit.

 

			
	*	 	Strike out whichever is not desired.”

	47.	 	A vote in accordance with the terms of an instrument of proxy shall be valid notwithstanding
the previous death or insanity of the principal or revocation of the proxy or of the authority
under which the proxy was executed or the transfer of the share in respect of which the proxy
is given, if no intimation in writing of such death, insanity, revocation or transfer as
aforesaid is received by the Company at the office before the commencement of the meeting or
adjourned meeting at which the proxy is used.

BODIES CORPORATE ACTING BY REPRESENTATIVES AT MEETINGS

	48.	 	Any body corporate which is a member of the Company may, by resolution of its directors or
other governing body, authorise such person as it thinks fit to act as its representative at
any meeting of the Company or of any class of members of the Company, and the person so
authorised shall be entitled to exercise the same powers on behalf of the body corporate which
he represents as that body corporate could exercise if it were an individual member of the
Company.

DIRECTORS

	49.	 	 

	 	(a)	 	Unless otherwise determined by an ordinary resolution of the Company in
general meeting the number of Directors shall not be less than two or more than seven.
	 
	 	(b)	 	Prior to the issuance of Class E Shares, the Board shall be comprised of at
least two Directors, each appointed by Janssen Alzheimer Immunotherapy (Holding)
Limited.
	 
	 	(c)	 	With effect from the issuance of Class O-E Shares to Crimagua, the Board
shall be comprised of seven Directors, five of whom shall be appointed by Janssen
Alzheimer Immunotherapy (Holding) Limited (each, a “Jupiter Sub Director”) and two of
whom shall be appointed by Crimagua (each, a “Lucky Sub Director”). At least one
Lucky Sub Director and at least three Jupiter Sub Directors shall be residents of the
State.
	 
	 	(d)	 	Each of Janssen Alzheimer Immunotherapy (Holding) Limited and Crimagua shall
have the sole right to replace its appointees to the Board (or fill any vacancy on the
Board due to the death or resignation of any of its appointees to the Board) at any
time and from time to time in its discretion upon written notice to the other
Shareholders and to the Company. Any such replacement (or appointment) shall

14

 

	 	 	 	take effect on the date on which notice of the same is received by the other
Shareholders and the Company or, if a later date is given in the notice, on such
later date.
	 
	 	(d)	 	If, for whatever reason, any Director ceases to be resident in the State for
taxation purposes, he shall immediately notify the Company and the other Directors in
writing. The first Directors of the Company shall be deemed to have been appointed
pursuant to section 3(5) of the Companies (Amendment) Act 1982.

	50.	 	No Director shall be required to hold a share qualification but each Director shall
nevertheless be entitled to receive notice of and to attend and speak at every general meeting
of the Company in accordance with article 110(b).
	 
	51.	 	The remuneration of the Directors shall from time to time be determined by the Company in
general meeting, provided that no resolution on Directors’ remuneration shall be put to the
meeting which provides for differing remuneration for the Jupiter Sub Directors and the Lucky
Sub Directors. Such remuneration shall be deemed to accrue from day to day. The Directors
may also be paid all travelling, hotel and other expenses properly incurred by them in
attending and returning from meetings of the Directors or any committee of the Directors or
general meetings of the Company or in connection with the business of the Company.
	 
	52.	 	A Director of the Company may be or become a director or other officer of, or otherwise
interested in, any company promoted by the Company or in which the Company may be interested
as shareholder or otherwise, and no such Director shall be accountable to the Company for any
remuneration or other benefits received by him as a director or officer of, or from his
interest in, such other company unless the Company otherwise directs.
	 
	53.	 	The Directors will not retire by rotation nor will they be required to go forward for
re-election.
	 
	54.	 	The Company may, by ordinary resolution, of which extended notice has been given in
accordance with section 142 of the Act, remove any Director before the expiration of his
period of office notwithstanding anything in these articles or in any agreement between the
Company and such director. Such removal shall be without prejudice to any claim such Director
may have for damages for breach of any contract of service between him and the Company.

BORROWING POWERS

	55.	 	The Directors may exercise all of the powers of the Company to borrow money, and to mortgage
or charge its undertaking, property and uncalled capital or any part thereof and to issue
debentures, debenture stock and other securities whether outright or as a security for any
debt, liability or obligations of the Company or any third party without any limitation as to
amount.

POWERS AND DUTIES OF DIRECTORS

	56.	 	The business of the Company shall be managed and controlled by the Directors and the
Directors will regularly review monitor and review the tax residency of the Company, and,
where necessary, take such action as may be required or considered necessary or appropriate to
ensure that the Company shall at all times remain resident for tax purposes

15

 

	 	 	in the State. The Directors shall procure that all key strategic decisions relating to the
business of the Company shall be discussed, resolved and made in the State.
	 
	57.	 	The Directors may pay all expenses incurred in promoting and registering the Company and may
exercise all such powers of the Company as are not, by the Companies Acts or by these
articles, required to be exercised by the Company in general meeting, subject, nevertheless,
to any of these articles, to the provisions of the Act and to such directions, being not
inconsistent with the aforesaid regulations or provisions, as may be given by the Company in
general meeting; but no direction given by the Company in general meeting shall invalidate any
prior act of the Directors which would have been valid if that direction had not been given.
	 
	58.	 	The Directors may from time to time and at any time by power of attorney appoint any company,
firm or person or body of persons, whether nominated directly or indirectly by the Directors,
to be the attorney or attorneys of the Company for such purposes and with such powers,
authorities and discretions (not exceeding those vested in or exercisable by the Directors
under these articles) and for such period and subject to such conditions as they may think
fit, and any such power of attorney may contain such provisions for the protection of persons
dealing with any such attorney as the Directors may think fit, and may also authorise any such
attorney to delegate all or any of the powers, authorities and discretions vested in him.
	 
	59.	 	The Company may exercise the powers conferred by section 41 of the Act with regard to having
an official seal for use abroad, and such powers shall be vested in the Directors.
	 
	60.	 	A Director who is in any way, whether directly or indirectly, interested in a contract or
proposed contract with the Company shall declare the nature of his interest at a meeting of
the Board in accordance with section 194 of the Act.
	 
	61.	 	A Director may vote in respect of any contract, appointment or arrangement in which he is
interested, and he shall be counted in the quorum present at the meeting.
	 
	62.	 	A Director may hold any other office or place of profit under the Company (other than the
office of auditor) in conjunction with his office of Director for such period and on such
terms as to remuneration and otherwise as the Directors may determine, and no Director or
intending director shall be disqualified by his office from contracting with the Company
either with regard to his tenure of any such other office or place of profit or as vendor,
purchaser or otherwise, nor shall any such contract or any contract or arrangement entered
into by or on behalf of the Company in which any Director is in any way interested, be liable
to be avoided, nor shall any Director so contracting or being so interested be liable to
account to the Company for any profit realised by any such contract or arrangement by reason
of such Director holding that office or of the fiduciary relation thereby established.
	 
	63.	 	The Directors may exercise the voting powers conferred by the shares of any other company
held or owned by the Company in such manner in all respects as they think fit and in
particular they may exercise the voting powers in favour of any resolution appointing the
Directors or any of them as directors or officers of such other company or providing for the
payment of remuneration or pensions to the directors or officers of such other company. Any
Director may vote in favour of the exercise of such voting rights notwithstanding that he may
be or may be about to become a director or officer of such other company.

16

 

	64.	 	A resolution in writing signed by all the Directors for the time being entitled to receive
notice of the meetings of the Board shall have the same effect and validity as a resolution of
the Board duly passed at a meeting of the Board duly convened and constituted and may consist
of several documents in like form each signed by one or more Directors. Any such
documentation shall be served on the Company and for the purposes of this article, the
signature of an alternate director appointed under article 72 shall be as valid and effective
as that of the Director he represents.
	 
	65.	 	Any Director may resign at any time by giving written notice to the Shareholders and to the
Company. Any such resignation shall take effect on the date on which notice of the same is
received by the Shareholders and the Company or, if a later date is given in the notice, on
such later date.
	 
	66.	 	(a)     The meetings and proceedings of any committee formed by the Directors shall be governed
by the provisions of these articles regulating the meetings and proceedings of the Directors
so far as the same are applicable and are not superseded by any regulations imposed upon such
committee by the Directors.

	 	(b)	 	When forming a committee of the Directors, the Directors may authorise, or
may authorise such committee to authorise, any person who is not a Director to attend
all or any meetings of any such committee on such terms as the Directors (or as the
case may be such committee) shall think fit, but any person so authorised shall not be
entitled to vote at such meetings.

	67.	 	Any Director may act by himself or his firm in a professional capacity for the Company, and
he or his firm shall be entitled to remuneration for professional services as if he were not a
Director; but nothing herein contained shall authorise a Director or his firm to act as
auditor to the Company.
	 
	68.	 	All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and
all receipts for moneys paid to the Company shall be signed, drawn, accepted, endorsed or
otherwise executed, as the case may be, by such person or persons and in such manner as the
Directors shall from time to time by resolution determine.
	 
	69.	 	The Directors shall cause minutes to be made in books provided for the purpose:

	 	(a)	 	of all appointment of officers made by the Directors;
	 
	 	(b)	 	of the names of the Directors present at each meeting of the Directors and of
any committee of the Directors;
	 
	 	(c)	 	of all resolutions and proceedings at all meetings of the Company and of the
Directors and of committees of Directors.

	70.	 	The Directors on behalf of the Company may pay a gratuity or pension or allowance on
retirement to any director who has held any other salaried office or place of profit with the
Company or to his widow or dependants, and may make contributions to any fund and pay premiums
for the purchase or provision of any such gratuity, pension or allowance.

DISQUALIFICATION OF DIRECTORS

17

 

	71.	 	The office of a Director shall be vacated ipso facto, if that Director:

	 	(a)	 	becomes restricted or disqualified pursuant to an order made under the
provisions of the Companies Act 1990;
	 
	 	(b)	 	is adjudged a bankrupt or insolvent or makes any arrangement or composition
with his creditors generally;
	 
	 	(c)	 	is sentenced to a term of imprisonment (whether actual or suspended)
following his conviction of an indictable offence;
	 
	 	(d)	 	becomes of unsound mind;
	 
	 	(e)	 	resigns his office by notice in writing served on the Company and the
Shareholders;
	 
	 	(f)	 	in the case of a Jupiter Sub Director, is requested in writing by Janssen
Alzheimer Immunotherapy (Holding) Limited to resign; and
	 
	 	(g)	 	in the case of a Lucky Sub Director, is requested in writing by Crimagua to
resign.

ALTERNATE DIRECTORS

	72.	 	(a)     A Director may, with the approval of Janssen
Alzheimer Immunotherapy (Holding) Limited in the case
of a Jupiter Sub Director, and Crimagua in the case
of a Elan Director, appoint any person to be his
alternate director (provided that a majority of all
of the Directors (or their alternates) remain
resident in the State for taxation purposes) and at
his own discretion may remove such person from office
as his alternate director.

	 	(b)	 	The alternate director shall be subject in all respects to the terms and
conditions existing with reference to the other Directors and shall be entitled to
receive notices of all meetings of the Directors and to attend, speak and vote at any
such meeting at which his appointer is not present.
	 
	 	(c)	 	One person may act as an alternate director to more than one Director and
while he is so acting shall be entitled to a separate vote for each Director he is
representing and, if he is himself a Director, his vote or votes as an alternate
director shall be in addition to his own vote.
	 
	 	(d)	 	Any appointment or removal of an alternate director shall be in writing
signed by the Director making such appointment or removal and shall be served on the
Company.
	 
	 	(e)	 	If a Director shall cease to be a Director for any reason then any person
holding office as alternate director for that Director shall cease ipso facto to hold
such office.
	 
	 	(f)	 	An alternate director shall not be taken into account in reckoning the
minimum or maximum number of Directors allowed for the time being, but he shall be

18

 

	 	 	 	counted for the purpose of reckoning whether a quorum is present at any meeting of
the Directors attended by him at which he is entitled to vote.

PROCEEDINGS OF DIRECTORS

	73.	 	The Directors may meet together for the despatch of business, adjourn and otherwise regulate
their meetings as they think fit provided that all meetings of the Directors must take place
within the State. There shall be at least four meetings of the Directors in each Calendar
Year. Questions arising at any meeting shall be decided by a majority of votes. A Director
may, and the secretary on the requisition of a Director shall, at any time summon a meeting of
the Directors. If the Directors so resolve, it shall not be necessary to give notice of a
meeting of Directors to any Director who, being resident in the State, is for the time being
absent from the State.
	 
	74.	 	The post of chairman shall be held by a Jupiter Sub Director, as designated by Janssen
Pharmaceutical. The chairman shall not have a casting vote. If the chairman for the time being
is unable to attend any meeting of the Board, Janssen Alzheimer Immunotherapy (Holding)
Limited shall be entitled to appoint another Jupiter Sub Director to act as chairman at such
meeting.
	 
	75.	 	Meetings of the Board may be held in person at such location in the State as may be agreed by
the Shareholders. All meetings of the Board shall be held with a majority of Directors
participating in the meeting physically present in the State. Subject to the prior sentence,
any Director may attend any meeting of the Board by way of teleconference, videoconference or
other similar communications equipment so long as all Directors participating in such meeting
can hear one another at the time of such meeting. Participation in a meeting of the Board via
teleconference, videoconference or other similar communications equipment in accordance with
the preceding sentence shall constitute presence in person at such meeting.
	 
	76.	 	At least seven days’ notice of a meeting of the Board shall be given to all Directors then
constituting the Board, accompanied by an agenda specifying in reasonable detail the matters
to be raised at the meeting. With effect from the issuance of Class O-E Shares to Crimagua,
matters absent from such agenda may not be raised at a meeting of the Board unless at least
one Jupiter Sub Director and one Lucky Sub Director consent. The failure of any Director to
raise an objection shall be deemed consent of such Director for purposes of the preceding
sentence.
	 
	77.	 	A shorter period of notice of a meeting of the Board may be given, provided that if such
meeting is held after the issuance of Class O-E Shares to Crimagua, at least one Jupiter Sub
Director and one Lucky Sub Director so agree in writing; provided that, the prior
consent of a Lucky Sub Director shall not be so required if (a) the urgency of the matter
giving rise to the meeting in question requires the Board to promptly take action (as
reasonably determined by the Jupiter Sub Directors) and (b) at least 24 hours has elapsed from
the time a notice of such meeting was given to the Lucky Sub Directors.
	 
	78.	 	The quorum at any meeting of the Board (including adjourned meetings) for which notice was
provided is a majority of the Directors then constituting the Board. For clarity, neither
Lucky Sub Director shall be required to be present for quorum purposes if the requirements of
the preceding sentence are otherwise satisfied. A majority of the Directors present at a
meeting of the Board may adjourn the meeting, whether or not a quorum is present.

19

 

	79.	 	No business shall be conducted at any meeting of the Board unless a quorum is present at the
beginning of the meeting and at the time when there is to be voting on any business.
	 
	80.	 	If a quorum is not present within 30 minutes after the time specified for the meeting of the
Board in the notice of meeting, then the meeting shall be adjourned.
	 
	81.	 	The parties shall use their respective reasonable endeavours to ensure that every meeting of
the Board and every general meeting of the Company has the requisite quorum.
	 
	82.	 	The vote of a majority of the Directors present at a meeting of the Board at which a quorum
is present shall be the act of the Board. For clarity, no vote of either Lucky Sub Director
shall be required if the requirements of the preceding sentence and articles 76 and 77 are
otherwise satisfied.
	 
	83.	 	The Board may take action in the absence of a meeting upon the written consent of each
director then constituting the Board.
	 
	84.	 	The Directors may delegate any of their powers to committees consisting of such member or
members of the board as think fit; any committee so formed shall, in the exercise of the
powers so delegated, conform to any regulations that may be imposed on it by the Directors.
	 
	85.	 	A committee may elect a chairman of its meetings; if no such chairman is elected, or if at
any meeting the chairman is not present within five minutes after the time appointed for
holding the same, the members present may choose one of their number to be chairman of the
meeting.
	 
	86.	 	A committee may meet and adjourn as it thinks proper. Questions arising at any meeting shall
be determined by a majority of votes of the members present, and where there is an equality of
votes, the chairman shall have a second or casting vote.
	 
	87.	 	All acts done by any meeting of the Directors or of a committee of Directors or by any person
acting as a Director shall, notwithstanding that it be afterwards discovered that there was
same defect in the appointment of any such Director or person acting as aforesaid, or that
they or any of them were disqualified, be as valid as if every such person had been duly
appointed and was qualified to be a Director.
	 
	88.	 	The provisions relating to articles 73 to 83 (inclusive), other than in respect of the number
of meetings in each Calendar Year, shall apply mutatis mutandis to any committee formed in
accordance with article 84.

SECRETARY

	89.	 	(a)     Subject to section 3 of the Companies (Amendment) Act
1982, the secretary shall be appointed by the Directors
for such term, at such remuneration and upon such
conditions as they may think fit; and any secretary so
appointed may be removed by them.

	 	(b)	 	In addition to the power to appoint a secretary in paragraph (a) and subject
to section 3 of the Companies (Amendment) Act 1982, the Directors may appoint an
Assistant Company Secretary (an “Assistant”) and or a Deputy Company Secretary (a
“Deputy”) for such term, at such remuneration and upon such

20

 

	 	 	 	conditions as they may think fit; and any such Assistant or Deputy so appointed
may be removed by them and references herein to “Secretary” shall be construed, if
permitted, as including references to an Assistant or a Deputy.

	90.	 	A provision of the Companies Acts or these articles requiring or authorising a thing to be
done by or to a director and the secretary shall not be satisfied by its being done by or to
the same person acting both as director and as, or in place of, the secretary.

THE SEAL

	91.	 	(a)     The common seal, and the official seal if any as referred
to in article 59, shall be used only by the authority of
the Directors or of a committee of Directors authorised by
the Directors in that behalf and every instrument to which
the seal shall be affixed shall be signed by a director (or
by some other person appointed by the Directors for that
purpose) and shall be counter-signed by the secretary or by
a second director or by some other person appointed by the
Directors for that purpose. The expression “director” in
this context shall include any alternate director appointed
under article.

	 	(b)	 	Unless otherwise specified by the Directors or otherwise required by law,
there shall be no requirement to seal debentures issued by the Company.

DIVIDENDS AND RESERVES

	92.	 	The Directors may from time to time pay to the members such interim dividends as appear to
the Directors to be justified by the profits of the Company.
	 
	93.	 	No dividend or interim dividend shall be paid otherwise than in accordance with the
provisions of Part IV of the Companies (Amendment) Act 1983 which apply to the Company.
	 
	94.	 	The Directors may, before recommending any dividend, set aside out of the profits of the
Company such sums as they thinks proper as a reserve or reserves which shall, at the
discretion of the Directors, be applicable for any purpose to which the profits of the Company
may be properly applied, and pending such application may, at the like discretion, either be
employed in the business of the Company or be invested in such investments as the Directors
may lawfully determine. The Directors may also, without placing the same to reserve, carry
forward any profits which they may think it prudent not to divide.
	 
	95.	 	Subject to the rights of persons, if any, entitled to shares with special rights as to
dividend, all dividends shall be declared and paid according to the amounts paid or credited
as paid on the shares in respect whereof the dividend is paid, but no amount paid or credited
as paid on a share in advance of calls shall be treated for the purposes of this regulation as
paid on the share. All dividends shall be apportioned and paid proportionately to the amounts
paid or credited as paid on the shares during any portion or portions of the period in respect
of which the dividend is paid; but if any share is issued on terms providing that it shall
rank for dividend as from a particular date, such share shall rank for dividend accordingly.
	 
	96.	 	Any general meeting declaring a dividend or bonus may direct payment of such dividend or
bonus wholly or partly by the distribution of specific assets and in particular of paid up

21

 

	 	 	shares, debentures or debenture stock of any other company or in any one or more of such
ways, and the Directors shall give effect to such resolution, and where any difficulty
arises in regard to such distribution, the Directors may settle the same as they think
expedient, and in particular may issue fractional certificates and fix the value for
distribution of such specific assets or any part thereof and may determine that cash
payment shall be made to any members upon the footing of the value so fixed, in order to
adjust the rights of all the parties, and may vest any such specific assets in trustees as
may seem expedient to the Directors.

ACCOUNTS

	97.	 	The Directors shall cause proper books of account to be kept which shall contain:

	 	(a)	 	entries from day to day of all sums of money received and expended by the
Company and the matters in respect of which the receipt and expenditure takes place;
	 
	 	(b)	 	a record of the assets and liabilities of the Company;
	 
	 	(c)	 	a record of all goods purchased, and of all goods sold (except those sold for
cash by way of ordinary retail trade), showing the goods and the sellers and buyers in
sufficient detail to enable the goods and the sellers and buyers to be identified and
a record of all the invoices relating to such purchases and sales;
	 
	 	(d)	 	statements of stock held by the Company at the end of each financial year and
all records of stocktakings from which any such statement of stock has been, or is to
be, prepared; and
	 
	 	(e)	 	a record of the services provided and of all the invoices relating thereto.

	 	 	Proper books of account shall be deemed to be kept if they comply with sections 202(1) and
(2) of the Companies Act 1990 and give a true and fair view of the state of affairs of the
Company and explain its transactions.
	 
	98.	 	The books of account shall be kept at the office or, subject to section 202 of the Companies
Act 1990, at such other place as the Directors think fit, and shall at all reasonable times be
open for inspection by the Directors.
	 
	99.	 	Subject to section 159(3) of the Act a copy of every balance sheet (including every document
required by law to be annexed thereto) which is to be laid before the annual general meeting
of the Company together with a copy of the Directors’ report and auditors’ report shall be
sent, by post or electronic mail not less than twenty-one days before the date of the annual
general meeting, to every person entitled under the provisions of the Companies Acts to
receive them.
	 
	100.	 	The Directors shall from time to time determine whether and to what extent and at what times
and places and under what conditions or regulations the accounts and books of the Company or
any of them shall be open to the inspection of members, not being Directors, and no member
(not being a director) shall have any right of inspection of any account or book or document
of the Company except as conferred by statute or authorised by the Directors or by the Company
in general meeting.

22

 

	101.	 	The Directors shall from time to time, in accordance with sections 148, 150, 157 and 158 of
the Act cause to be prepared and to be laid before the annual general meeting of the Company
such profit and loss accounts, balance sheets, group accounts and reports as are required by
those sections to be prepared and laid before the annual general meeting of the Company.

CAPITALISATION OF PROFITS

	102.	 	The Company in general meeting may upon the recommendation of the Directors resolve that any
sum for the time being standing to the credit of any of the Company’s reserves (including any
capital redemption reserve fund or share premium account) or to the credit of profit and loss
account be capitalised and applied on behalf of the members who would have been entitled to
receive the same if the same had been distributed by way of dividend and in the same
proportions either in or towards paying up amounts for the time being unpaid on any shares
held by them respectively or in paying up in full unissued shares or debentures of the Company
of a nominal amount equal to the sum capitalised (such shares or debentures to be allotted and
distributed credited as fully paid up to and amongst such holders in the proportions
aforesaid) or partly in one way and partly in another.
	 
	103.	 	The Company in general meeting may on the recommendation of the Directors resolve that it is
desirable to capitalise any part of the amount for the time being standing to the credit of
any of the Company’s reserve accounts or to the credit of the profit and loss account which is
not available for distribution by applying such sum in paying up in full unissued shares to be
allotted as fully paid bonus shares to those members of the Company who would have been
entitled to that sum if it were distributed by way of dividend (and in the same proportions),
and the Directors shall give effect to such resolution.
	 
	104.	 	Whenever a resolution is passed in pursuance of articles 102 and 103, the Directors shall
make all appropriations and applications of the undivided profits resolved to be capitalised
thereby and all allotments and issues of fully paid shares or debentures, if any, and
generally shall do all acts and things required to give effect thereto with full power to the
Directors to make such provision as they shall think fit for the case of shares or debentures
becoming distributable in fractions (and, in particular, without prejudice to the generality
of the foregoing, to sell the shares or debentures represented by such fractions and
distribute the net proceeds of such sale amongst the members otherwise entitled to such
fractions in due proportions) and also to authorise any person to enter on behalf of all the
members concerned into an agreement with the Company providing for the allotment to them
respectively credited as fully paid up of any further shares or debentures to which they may
become entitled on such capitalisation or, as the case may require, for the payment up by the
application thereto of their respective proportions of the profits resolved to be capitalised
of the amounts remaining unpaid on their existing shares and any agreement made under such
authority shall be effective and binding on all such members.

AUDIT

	105.	 	Auditors shall be appointed and their duties regulated in accordance with sections 160 to 163
of the Act.

NOTICES

23

 

	106.	 	Any notice required to be given by the Company to any person (the “Recipient”) under these
articles shall be given by means of (i) personal delivery, (ii) delivery by personal courier
(iii) facsimile or e-mail (iv) pre-paid first class post or recorded delivery or (v) (if the
notice is to be served by post outside the country from which it is sent) sent by to the
address or number of the recipient notified to the Company by the Recipient for such purpose
(or, if not so notified, then to the address or number of the recipient last known to the
Company). Any notice so given shall be deemed, in the absence of any agreement to the
contrary between the Company and the Recipient, to have been received (a) if delivered
personally, at the time of delivery; (b) if delivered by commercial courier, at the time of
signature of the courier’s receipt; (c) if sent by fax or e-mail, at the time of transmission;
(d) if sent by pre-paid first class post or recorded delivery, 48 hours from the date of
posting; (e) if sent by airmail, five days from the date of posting; or (f) if deemed receipt
under this article is not within business hours (meaning 9.00 a.m. to 5.30 p.m. on a day that
it is not a public holiday in the place of receipt), when business next starts in the place of
deemed receipt.
	 
	107.	 	Any document (including, but not limited to, any notice, appointment, removal and resolution)
required or authorised by these articles to be sent to or served on the Company shall be in
writing sent to or served on the Company at its registered office or its principal place of
business in the State, and may be sent or served by means of delivery, post, cable, telegram,
telex, telefax, facsimile, electronic mail (including email) or any other means of
communication approved by the Directors, and may bear a printed or facsimile signature of the
person or persons required by these articles to sign such document. The communication of such
a document by such means shall be confirmed as soon as possible by delivery to the Company at
its registered office or principal place of business in the State of such document bearing an
original signature of the person by whom it is required to be signed but (provided that the
Directors are satisfied as to the authenticity of the document communicated as aforesaid)
shall be acted upon by the Company and the Directors meanwhile; provided that any such
document shall be valid and effective for all purposes notwithstanding that for any reason the
document is not subsequently so confirmed. Any such document shall take effect, in the
absence of any agreement to the contrary between the Company and the person by whom or on
whose behalf the document was sent or served, at the time of receipt in the case of delivery
and post, and at the expiration of six hours after receipt thereof at the Company’s registered
office or principal place of business in the State in any other case.
	 
	108.	 	A notice may be given by the Company to the joint holders of a share by giving the notice to
the joint holder first named in the register in respect of the share.
	 
	109.	 	A notice may be given by the Company to the persons entitled to a share in consequence of the
death or bankruptcy of a member by sending it through the post in a prepaid letter addressed
to them by name or by the title of representatives of the deceased of Official Assignee in
bankruptcy or by any like description at the address supplied for the purpose by the persons
claiming to be so entitled, or (until such an address has been so supplied) by giving the
notice in any manner in which the same might have been given if the death or bankruptcy had
not occurred.
	 
	110.	 	Notice of every general meeting shall be given in any manner hereinbefore authorised to:

	 	(a)	 	every member;
	 
	 	(b)	 	every director; and

24

 

	 	(c)	 	the auditor for the time being of the Company.

	 	 	No other person shall be entitled to receive notices of general meetings.

WINDING UP

	111.	 	If the Company is wound up, the liquidator may, with the sanction of a special resolution of
the Company and any other sanction required by the Act, divide among the members in specie or
kind the whole or any part of the assets of the Company (whether they shall consist of
property of the same kind or not) and may, for such purpose, set such value as he deems fair
upon any property to divided as aforesaid and may determine how such division shall be carried
out as between the members or different classes of members. The liquidator may, with the like
sanction, vest the whole or any part of such assets in trustees upon such trusts for the
benefit of the contributories as the liquidator, with the like sanction, shall think fit, but
so that no member shall be compelled to accept any shares or other securities whereon there is
any liability.

INDEMNITY AND INSURANCE

	112.	 	Subject to section 200 of the Act every director and secretary of the Company shall be
indemnified by the Company against, and it shall be the duty of the Directors out of the funds
of the Company to pay all costs, losses and expenses which any such director or secretary may
incur or become liable to by reason of any contract entered into or any act or thing done by
him as such director or secretary or in any way in the discharge of his duties. And no
director or secretary shall be liable for the acts, receipts, neglects or defaults of any
other director or officer, or for joining in any receipt or other act for conformity, or for
any loss or expense happening to the Company through the insufficiency or deficiency of title
to any property acquired by order of the Directors for or on behalf of the Company, or for the
insufficiency or deficiency of any security in or upon which any of the moneys of the Company
shall be vested, or for any loss or damage arising from the bankruptcy, insolvency or tortious
act by any person with whom any moneys, securities or effects shall be deposited, or for any
other loss, damage or misfortune whatever which shall happen in the execution of the duties of
his office or in relation thereto.
	 
	113.	 	The Directors shall have power to purchase and maintain for or for the benefit of any persons
(including themselves) who are or were at any time Directors or other officers of the Company,
insurance against any liability incurred by such persons in respect of any act or omission
when in the actual or purported execution or discharge of their duties or in the exercise or
purported exercise of their powers or otherwise in relation to their duties, powers or offices
in relation to the Company and the Directors shall be entitled to vote (and be counted in the
quorum) in respect of any resolution concerning the purchase of such insurance.

25

 

 

Name, address and description of subscribers

 

Juno Neurosciences (Holding) Limited

Little Island Industrial Estate

Little Island

Co. Cork

JnJ Irish Investments ULC

Suite 260

Three Bentall Centre

P.O. Box 49314

595 Burrand Street

Vancouver, BC V7X1L3

Canada

 

Dated the 23rd day of June 2009

Witness to the above signatures:          Bryan Mohally

26

 

Companies Acts 1963 to 2006

UNLIMITED COMPANY HAVING A SHARE CAPITAL

MEMORANDUM AND ARTICLES

OF ASSOCIATION

OF

JANSSEN ALZHEIMER IMMUNOTHERAPY

(as adopted by special resolution dated 17 August 2009)

Arthur COX

Dublin

27

 

EXHIBIT B

[FORM OF]

CONTRIBUTION AGREEMENT

PRODUCE ON HEADED NOTEPAPER OF

[APPLICABLE SHAREHOLDER]

[ADDRESS]

THIS AGREEMENT made on the [•] day of [•]

BETWEEN

	(1)	 	[•], a company incorporated in [•] under registered number [•] and having its registered
office at [•] (hereinafter called “[Applicable Shareholder]”) of the One Part;

AND

	(2)	 	Janssen Alzheimer Immunotherapy (f/k/a Juno Neurosciences), an unlimited company incorporated
in Ireland under registered number 472372 and having its registered office at Little Island
Industrial Estate, Little Island, County Cork, Republic of Ireland (hereinafter called the
“Company”) of the Other Part.

[Applicable Shareholder] hereby offers and the Company hereby accepts an unconditional capital
contribution of the cash sum of US$[•] (the “Contribution”), with the intention and understanding
that the Contribution is irrevocable, non-refundable and unconditional in all respects and that the
Contribution will not result in the grant by the Company of any rights or the assumption by the
Company of any obligations to [Applicable Shareholder] or any third party in respect of the
Contribution.

The use to which the Contribution will be put is a matter for the absolute discretion of the
Company.

This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which when executed and delivered shall constitute an original and
all such counterparts together constituting but one and the same instrument.

This Agreement shall be governed by and construed in accordance with the laws of Ireland.

[Remainder of page intentionally left blank]

1

 

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

	 	 	 	 	 

	PRESENT when the Common Seal of
	 	 	 	 
	[APPLICABLE SHAREHOLDER]
	 	 	 	 
	was affixed hereto:
	 	 	 	 
	 

	 	 

Director
	 	 
	 
	 	 	 	 
	 

	 	 

Director / Company Secretary
	 	 
	 
	 	 	 	 
	PRESENT when the Common Seal of
	 	 	 	 
	JANSSEN ALZHEIMER IMMUNOTHERAPY
	 	 	 	 
	was affixed hereto:
	 	 	 	 
	 

	 	 

Director
	 	 
	 
	 	 	 	 
	 

	 	 

Director / Company Secretary
	 	 

2

 

EXHIBIT C

[FORM OF]

DEED POLL OF ADHERENCE

Dated                    , 20[●]

 

Deed Poll of Adherence

of [NEW SHAREHOLDER]

RELATING TO THE SHAREHOLDERS’ AGREEMENT DATED [ ● ], 2009

BETWEEN JANSSEN PHARMACEUTICAL, JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING)

LIMITED, LATAM PROPERTIES HOLDINGS,
 JNJ IRISH INVESTMENTS ULC, ELAN CORPORATION, PLC,

CRIMAGUA LIMITED, ELAN PHARMA INTERNATIONAL LIMITED AND JANSSEN ALZHEIMER

IMMUNOTHERAPY

1

 

THIS DEED POLL OF ADHERENCE is made by Deed Poll on [•], 20[•] by [•], a company established
in [•] with registered number [•] having its registered office at [•] (“New Shareholder”).

INTRODUCTION:

	(A)	 	New Shareholder has agreed to acquire all of the shares of [•] (the “Transferor”) in
the capital of Janssen Alzheimer Immunotherapy (f/k/a Juno Neurosciences) (the “Company”) (the
“Shares”).
	 
	(B)	 	The Transferor is party to the shareholders’ agreement dated [•], 2009 and entered
into between Janssen Pharmaceutical, Janssen Alzheimer Immunotherapy (Holding) Limited (f/k/a
Juno Neurosciences (Holding) Limited), Latam Properties Holdings, JNJ Irish Investments ULC,
Elan Corporation, plc, Crimagua Limited, Elan Pharma International Limited and the Company
(the “Shareholders’ Agreement”).
	 
	(C)	 	This Deed Poll is made in compliance with clause [•] of the Shareholders’ Agreement
under which it is a condition of the transaction referred to in (A) above that New Shareholder
executes a deed poll of adherence to the Shareholders’ Agreement prior to such acquisition.

THIS DEED POLL WITNESSETH as follows:

	3.	 	Words and expressions used in this deed shall, unless the context expressly requires
otherwise, have the meaning given to them in the Shareholders’ Agreement. The Effective Date
means the date of this Deed Poll.
	 
	4.	 	New Shareholder confirms that it has been supplied with a copy of the Shareholders’ Agreement
and undertakes and covenants with and for the benefit of each person named in the schedule to
this Deed Poll that, from the Effective Date, New Shareholder shall be bound by the terms,
conditions and other provisions of the Shareholders’ Agreement with all rights, duties and
obligations stated therein, with the same force and effect as if New Shareholder was
originally named therein as a Shareholder and as if New Shareholder executed the Shareholders’
Agreement on the date thereof.
	 
	5.	 	Nothing in this deed shall release the Transferor from any liability in respect of any
obligations under the Shareholders’ Agreement except as explicitly provided therein.
	 
	6.	 	New Shareholder accepts, acknowledges and agrees that none of the Shareholders:

	 	6.1	 	makes any representation or warranty about, or assumes any responsibility
for, the legality, validity, effectiveness, adequacy or enforceability of the
Shareholders’ Agreement (or any agreement entered into pursuant to it);
	 
	 	6.2	 	makes any representation or warranty about, or assumes any responsibility
for, the content of any information about the Company, or otherwise relating to the
acquisition of Shares; or

2

 

	 	6.3	 	assumes any responsibility for the financial condition of the Company or any
other party to the Shareholders’ Agreement,
	 
	 	and, save as otherwise provided in the Shareholders’ Agreement, any and all conditions and
warranties, whether express or implied by law or otherwise, are excluded.

	7.	 	This deed (including non-contractual disputes or claims) shall be governed by, and construed
in accordance with, the laws of Ireland and the parties irrevocably agree that the courts of
Ireland shall have exclusive jurisdiction to settle any dispute or claim that arises out of,
or in connection with, this deed or its subject matter (including non-contractual disputes or
claims).
	 
	8.	 	The address of New Shareholder for the purposes of clause 28 (Notice) of the Shareholders’
Agreement is set out below:

	 	 	[New Shareholder]

Address: [•]

For the attention of: [•]

Fax number: [•]
	 
	9.	 	New Shareholder agrees to deliver this Deed Poll to the Company, to be held by the Company
for itself and on behalf of each person named in the schedule to this Deed Poll.

This document has been executed as a DEED POLL and is delivered and takes effect on the date stated
at the beginning of it.

[Execution Block]
  3 

 

			
	3	 	N.B. In certain countries, including U.K. and Ireland, there are particular
formalities to be followed in relation to the execution of deeds (including deed polls), which is
reflected in the form of signature block (e.g. signing under seal, signed as a deed etc.). It is a
requirement that any party executing the Deed Poll of Adherence evidence compliance with such
formalities by including an appropriate signature block.

3

 

SCHEDULE

to the

DEED POLL OF ADHERENCE

[All parties to Shareholders’ Agreement, including all parties that have previously executed a deed
poll of adherence, are to be listed in this Schedule.]

4

 

EXHIBIT D

INITIAL CONTRIBUTION AGREEMENT

PRODUCE ON HEADED NOTEPAPER OF

JUNO NEUROSCIENCES (HOLDING) LIMITED

Little Island Industrial Estate, Little Island,

County Cork, Republic of Ireland

THIS AGREEMENT made on the [•] day of [•], 2009

BETWEEN

	(1)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED (f/k/a JUNO NEUROSCIENCES
(HOLDING) LIMITED), a company incorporated in Ireland under registered number 472371 and
having its registered office at Little Island Industrial Estate, Little Island, County Cork,
Republic of Ireland (hereinafter called “Jupiter Sub-1”) of the One Part;

AND

	(2)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (f/k/a JUNO NEUROSCIENCES), a company incorporated
in Ireland under registered number 472372 and having its registered office at Little Island
Industrial Estate, Little Island, County Cork, Republic of Ireland (hereinafter called the
“Company”) of the Other Part.

Jupiter Sub-1 hereby offers and the Company hereby accepts an unconditional capital contribution of
the cash sum of five hundred million dollars (US$500,000,000.00) (the “Contribution”), with the
intention and understanding that the Contribution is irrevocable, non-refundable and unconditional
in all respects and that the Contribution will not result in the grant by the Company of any rights
or the assumption by the Company of any obligations to Jupiter Sub-1 or any third party in respect
of the Contribution.

The use to which the Contribution will be put is a matter for the absolute discretion of the
Company.

This Agreement may be executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which when executed and delivered shall constitute an original and
all such counterparts together constituting but one and the same instrument.

This Agreement shall be governed by and construed in accordance with the laws of Ireland.

[Remainder of page intentionally left blank]

 

 

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

	 	 	 	 	 

	PRESENT when the Common Seal of
	 	 	 	 
	JANSSEN ALZHEIMER IMMUNOTHERAPY
	 	 	 	 
	(HOLDING) LIMITED
	 	 	 	 
	was affixed hereto:
	 	 	 	 
	 

	 	 

Director
	 	 
	 
	 	 	 	 
	 

	 	 

Director / Company Secretary
	 	 
	 
	 	 	 	 
	PRESENT when the Common Seal of
	 	 	 	 
	JANSSEN ALZHEIMER IMMUNOTHERAPY
	 	 	 	 
	was affixed hereto:
	 	 	 	 
	 

	 	 

Director
	 	 
	 
	 	 	 	 
	 

	 	 

Director / Company Secretary
	 	 

 

 

EXHIBIT E

LOAN AGREEMENT

DATED [•], 2009

JANSSEN ALZHEIMER IMMUNOTHERAPY

(f/k/a JUNO NEUROSCIENCES)

(as Lender)

and

LATAM PROPERTIES HOLDINGS

(as Borrower)

 

LOAN AGREEMENT

 

 

THIS AGREEMENT is made on [•], 2009

BETWEEN:

	(1)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (f/k/a JUNO NEUROSCIENCES), a company incorporated
in Ireland under registered number 472372 having its registered office at Little Island
Industrial Estate, Little Island, County Cork, Republic of Ireland (the “Lender”); and
	 
	(2)	 	LATAM PROPERTIES HOLDINGS, a company incorporated in Ireland under registered number 412467
(the “Borrower”).

WHEREAS the Borrower has requested the Lender to provide a loan facility upon the terms and
conditions of this Agreement and the Lender has agreed to do so.

NOW IT IS HEREBY AGREED as follows:

	1.	 	Interpretation
	 
	 	 	In this Agreement:
	 
	 	 	“Advance” means, save as otherwise provided herein, the advance to be made hereunder by the
Lender;
	 
	 	 	“Affiliate”, “Business Day”, “Jupiter Sub-1”, “Positive Cash Flow Date”, “Shares” and
“Transfer” have the respective meanings given to such terms in the Shareholders’ Agreement;
and
	 
	 	 	“Shareholders’ Agreement” means the shareholders’ agreement dated as of [•], 2009 by and
among Janssen Pharmaceutical, Janssen Alzheimer Immunotherapy (Holding) Limited (f/k/a
Juno Neurosciences (Holding) Limited), Borrower, JNJ Irish Investments ULC, Elan
Corporation, plc, Crimagua Limited, Elan Pharma International Limited and the Lender.
	 
	2.	 	The Facility

	 	2.1	 	Amount and currency

	 	(a)	 	Subject to the terms of this Agreement, the Lender grants to
the Borrower an uncommitted loan facility in an aggregate principal amount of
five hundred million dollars ($500,000,000.00) (the “Loan Facility”).
	 
	 	(b)	 	The Loan Facility shall be made available and shall be repaid
in U.S. dollars.

 

 

	 	2.2	 	Advance
	 
	 	Subject to the terms of this Agreement, the Advance of the Loan Facility will be made to
the Borrower on the date hereof and the Borrower shall request the Advance by executing
this Agreement.

	3.	 	Repayment

	 	3.1	 	The Borrower will repay the Advance (or any portion of it) made to it
hereunder by the Lender forthwith on demand made by the Lender at any time or times
after the date of this Agreement.
	 
	 	3.2	 	The Borrower will repay any portion of the Advance not previously repaid on
the Positive Cash Flow Date.

	4.	 	Interest
	 
	 	 	The Loan Facility shall not incur any interest.

	5.	 	Assignment
	 
	 	 	This Agreement is personal to the parties and no party shall assign or transfer any of its
rights or obligations under this Agreement without the consent of each other party (which
consent is hereby given by the Lender for any assignment required by the following
sentence). In the event neither Jupiter Sub-1 nor any of its Affiliates hold any Shares as
a result of one or more Transfers in compliance with the Shareholders’ Agreement, Borrower
shall, immediately following the last of such Transfers, assign and transfer its rights and
obligations under this Agreement to the applicable transferee in such last Transfer of
Shares.
	 
	6.	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, each of which when executed
and delivered shall be an original, but all of which when taken together shall constitute a
single instrument.
	 
	7.	 	Law
	 
	 	 	This Agreement shall be governed by and construed in accordance with the laws of Ireland.
	 
	8.	 	Jurisdiction

	 	8.1	 	The courts of Ireland have exclusive jurisdiction to hear and decide any
suit, action or proceedings, and to settle any disputes, which may arise out of or in
connection with this Agreement (“Proceedings”) and, for these purposes, each party
irrevocably submits to the jurisdiction of the courts of Ireland.
	 
	 	8.2	 	Each party irrevocably waives any objection which it might at any time have
to the courts of Ireland being nominated as the forum to hear and decide any
Proceedings and agrees not to claim that the courts of Ireland are not a convenient or
appropriate forum.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

	 	 	 	 	 

	SIGNED by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	JANSSEN ALZHEIMER IMMUNOTHERAPY
	 	 	 	 
	(F/K/A JUNO NEUROSCIENCES)

	 	 	)	 
	 
	 	 	 	 
	SIGNED by

	 	 	)	 
	for and on behalf of

	 	 	)	 
	LATAM PROPERTIES HOLDINGS

	 	 	)	 

 

 

EXHIBIT F

JUPITER UNIVERSAL CALENDAR

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