Document:

License, Development, and Commercialization Agreement

 Exhibit 10.1 
 LICENSE, DEVELOPMENT, AND COMMERCIALIZATION AGREEMENT 
 This License, Development, and
Commercialization Agreement (this “Agreement”) is entered into as of the Effective Date by and between NOVACEA, Inc., a Delaware corporation having offices at 601 Gateway Blvd., Suite 800, South San Francisco, California 94080
(“Novacea”), and Schering Corporation, a New Jersey corporation having offices at 2000 Galloping Hill Road, Kenilworth, New Jersey 07033 (“Schering”). 
 RECITALS 
 WHEREAS, Novacea possesses
rights to intellectual property relating to proprietary methods of use of calcitriol; 
 WHEREAS,
Schering is engaged in the research, development and commercialization of pharmaceutical products; and 
 WHEREAS, Novacea and Schering desire to enter into a collaboration under which Schering will obtain a worldwide exclusive license under such intellectual property to develop and commercialize
pharmaceutical products containing calcitriol under the terms and conditions set forth below. 
 NOW
THEREFORE, the Parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 1.1 “Additional
Indications” means the use of a Licensed Product for the treatment or prevention of (i) any of [*], pancreatic cancer or [*] in humans and/or (ii) any other disease, disorder or condition, but excluding any of the Core
Indications. 
 1.2 “Additional Indication Milestones” means those milestone payments as set forth in
Section 10.3 hereof which will apply to approvals of each of the indications in the following tumor types: [*] pancreatic, [*]. 
 1.3 “AEs” shall have the meaning set forth in Section 6.2(a). 
 1.4
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such Person. A Person shall be deemed to control another Person if such Person
possesses the power to direct or cause the direction of the management, business and policies of such Person, whether through the ownership of more than fifty percent (50%) of the voting securities of such Person, by contract or otherwise.

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 1.5 “Alliance Manager” means, with respect to each of Novacea and Schering, a
representative to be appointed by such Party to facilitate the reasonable and appropriate flow of information and communications between the Parties pursuant to this Agreement. 
 1.6 “Annual Commercialization Report” shall have the meaning set forth in Section 7.4. 
 1.7 “ASCENT-2” means the ongoing Phase III Study in AIPC as described in [*]. 
 1.8 “Aventis Agreements” means (i) that certain Grant-in-Aid Agreement between Novacea and Aventis entered into as of
August 5, 2002 related to the “Phase 2 / 3 Multicenter, Randomized, Double Blind, Study of Docetaxel Plus DN-101 or Placebo in Androgen-Independent Prostate Cancer (AIPC)” and (ii) that certain Grant-in-Aid Agreement between
Novacea and Aventis Pharmaceuticals Inc. (“Aventis”) entered into as of August 4, 2003 related to the “Phase 1 / 2 Multicenter, Open Label, Dose Ranging Study of DN-101 and Taxotere® in Patients with Advanced (Stage IIIB or IV) Non-Small Cell Lung Cancer who Have Failed
Previous Therapy with Platinum-Based Chemotherapy.” 
 1.9 “Business Day” means a day on which banking institutions in
New York, New York, United States are open for business, but excluding any such day on which the New Jersey offices of Schering-Plough Corporation or the California offices of Novacea are scheduled to be closed for business. 
 1.10 “Change of Control” shall mean, with respect to either Party, the occurrence of any of the following events: (a) the
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (any such individual, entity or group, a “Specified Person”) of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of more than fifty percent (50%) of the combined voting power of then outstanding voting securities of such Party entitled to vote generally in the election of directors (the “Outstanding
Voting Securities”); or (b) the consummation of a merger, consolidation or other similar transaction with a Specified Person, or sale or other disposition to a Specified Person of all or substantially all of the pharmaceutical assets
(including for purposes of clarity the sale of all or substantially all of the pharmaceutical assets of its subsidiaries) of a Party (a “Business Combination”), in each case, unless, immediately after the consummation of such
Business Combination, (i) the individuals and groups (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) who were the beneficial owners, respectively, of the Outstanding Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the corporation or
other entity resulting from such Business Combination (including, without limitation, a Person which as result of such transaction owns then outstanding securities of the Party or all or substantially all of such Party’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 Voting Securities, as the case may be and (ii) at least 

  

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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fifty percent (50%) of the members of the board of directors of the Person resulting from such Business Combination were members of the board of
directors of the Party at the time of the execution of the initial agreement, or of the action of the board of directors of such entity, providing for such Business Combination. 
 1.11 “Combination Product” means any product that contains two or more active ingredients, one of which is a Formulation. 
 1.12 “Commercialization” means, with respect to Licensed Product, any and all activities directed to the marketing, promotion,
distribution, offering for sale and selling such product, importing and exporting such product for sale, and interacting with Regulatory Authorities regarding the foregoing. Commercialization shall also include Phase IV Studies.
“Commercialize” has a correlative meaning. 
 1.13 “Commercially Reasonable Efforts” means (i) with
respect to the efforts to be expended by any Party or any of its Affiliates with respect to any objective, such reasonable, diligent, and good faith efforts as such Party would normally use to accomplish a similar objective under similar
circumstances, and (ii) with respect to any objective relating to Development or Commercialization of a Licensed Product by Schering, such efforts and resources as are commonly used by Schering and its Affiliates for the development and
commercialization of prescription pharmaceutical products of similar commercial potential at a similar stage in product lifecycle, taking into consideration the safety and efficacy of such product, the cost to develop and commercialize the product,
the risks inherent in the development and commercialization of the product, its competitiveness compared to alternative products, the proprietary position of the product (including scope and duration of relevant patents), the scope, timing and
likelihood of Regulatory Approvals, the profitability of the product and all other relevant factors. 
 1.14 “Competing
Product” means any pharmaceutical product (other than a Licensed Product being Developed and/or Commercialized pursuant to this Agreement) that either: (i) contains [*]; or (ii) that is a [*]. 
 1.15 “Compound” means calcitriol [*]. 
 1.16 “Compulsory License” means a compulsory license under Novacea IP obtained by a Third Party through the order, decree, or grant of a competent Governmental Authority or court, authorizing such
Third Party to develop, make, have made, use, sell, offer to sell or import a Competing Product or Licensed Product in any country in the Field in the Territory. 
 1.17 “Confidential Information” means, with respect to each of the Parties, any and all proprietary and/or confidential data, information or materials possessed or developed by such Party or any of
its Affiliates (whether developed by or on behalf of such Party or any of its Affiliates before or after the Effective Date) related to: 
 (i) the Development, Manufacture, use or Commercialization of the Licensed Product; or 
  

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RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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 (ii) the business, development or commercial plans, development or commercial
capabilities, operations, assets, research programs, financial conditions, commitments, rights, liabilities, personnel and strategies of Schering, Novacea, or any of their respective subsidiaries or Affiliates, 
 that is disclosed or otherwise made available by such Party or its Affiliates to the other Party or any of its Affiliates, including, without limitation, any such data,
information or materials related to substances, formulations, devices (and/or any components thereof), techniques, technology, regulatory requirements and strategies, equipment, study results, reports, know-how, sources for Manufacture and supply,
patent position and business plans. 
 1.18 “Controlled” or “Control” shall mean the legal authority of a Party
(or any of its Affiliates) to grant a license or sublicense of intellectual property rights to another Person (other than pursuant to this Agreement) without breaching the terms of any agreement with a Third Party. 
 1.19 “Core Development Plan” shall have the meaning set forth in Section 5.2(a). 
 1.20 “Core Indication” means the use of a Licensed Product for the treatment or prevention of any of the following conditions in humans:
(i) androgen-independent prostate cancer (“AIPC”), (ii) androgen-dependent prostate cancer (“ADPC”), or (iii) adjuvant therapy for early stage prostate cancer (“Adjuvant Therapy”)

 1.21 “Dedicated MSLs” shall have the meaning set forth in Section 7.3(b). 
 1.22 “Development” or “Develop” means research activities and non-clinical (including without limitation pre-clinical)
and clinical drug development activities, including, among other things: drug discovery, toxicology, formulation, statistical analysis and report writing, conducting clinical trials for the purpose of obtaining and maintaining Regulatory Approval
(including without limitation, post-approval commitment studies), and regulatory affairs related to all of the foregoing. Development shall include all clinical studies that are primarily intended to support or maintain a Regulatory Approval,
maintain a label or obtain any label change, but shall exclude Phase IV Studies. 
 1.23 “Development Plan” means, alone or
collectively, the Core Development Plan and any Forward Development Plan. 
 1.24 “Dollars” or “$” means
the legal tender of the United States. 
 1.25 “Effective Date” means
the later of (a) the Execution Date or (b) the second (2nd) Business Day immediately following the
earlier of: (i) the date upon which the waiting period 

  

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under the Hart-Scott-Rodino Antitrust Improvement Act (the “HSR Act”) expires or terminates early with respect to the filings to be made
pursuant to Section 16.1(b), or (ii) the date upon which a closing letter is received from the Federal Trade Commission or the Justice Department, as the case may be, with regard to the transaction contemplated by this Agreement indicating
that all requests have been satisfactorily met and no objection on the part of the Federal Trade Commission or the Justice Department remains. 
 1.26 “EMEA” means the European Medicines Agency or any successor agency thereof. 
 1.27 “EU”
means all of the European Union member states as of the applicable time during the Term. 
 1.28 “EU Major Markets” means
[*]. 
 1.29 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 1.30 “Execution Date” means the latest date of signature appearing on the signature page of this Agreement. 
 1.31 “Existing Supply Agreement” means that certain Supply Agreement dated
December 27th 2001, between Plantex USA Inc., and Novacea, as amended January 24,
2006; March 21, 2006, and February 28, 2007; and as amended and restated May 25, 2007. 
 1.32 “FDA”
means the United States Food and Drug Administration or any successor agency thereto. 
 1.33 “Field” means any and all
diagnostic, therapeutic and prophylactic uses in humans and/or animals, including, without limitation, the Core Indications and Additional Indications. 
 1.34 “First Commercial Sale” means, with respect to a given country in the Territory, the first shipment of commercial quantities of a Licensed Product sold in such country on arms’ length terms
to a Third Party by Schering, its Affiliates or its Sublicensees for use in the Field after the granting of Regulatory Approval with respect to such country. Sales for test marketing, sampling and promotional uses, clinical trial purposes or
compassionate or similar use shall not be considered to constitute a First Commercial Sale. 
 1.35 “Formulation” means
(i) Novacea’s proprietary oral high-dose pulsed formulation of the Compound that is known as Asentar (DN-101), (ii) any other formulation developed by or on behalf of a Party or its Affiliates containing the Compound as an active
ingredient and [*], and (iii) any other formulation containing the Compound as an active ingredient [*] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 1.36 “Forward Development Plan” shall have the meaning set forth in Section 5.2(d).

 1.37 “FTE” means the equivalent in working hours of one full time university graduate or similarly qualified employee
employed by a Party working at least [*] hours per year. For the avoidance of doubt, employees who work fewer than [*] hours in a year (whether via working a partial year or part-time) are included in an FTE, provided their hours are combined so as
to complete one FTE. For example, an employee working [*] hours in a given year would be combined with an employee working [*] hours in the same year to form one FTE. Similarly, any employee can be allocated at a percentage of time equaling less
than 100% of their work year, provided that FTEs are calculated in [*] hour increments. 
 1.38 “FTE Rate” means the fully
burdened annual internal cost of employing an FTE including all employee related compensation and benefits including salary, bonuses, profit sharing, taxes, insurances, training, travel, subsistence, professional dues, catering and employee related
overheads (including human relations, payroll, purchasing, supervisory costs, space allocation and computer and information systems). The FTE Rate for the period from the Effective Date to [*] shall be [*] per full twelve month period per FTE, as
may be adjusted pursuant to Section 7.3(b). The first such adjustment will be effective on [*], and will based on a full twelve (12) month period (as described below). The second adjustment will be effective on [*], but shall be based upon
the percentage change in the CPI-U for the preceding [*]. Thereafter, the FTE Rate will be adjusted effective on January 1 of each subsequent year by a percentage equal to the percentage adjustment, if any, between the Consumer Price Index
– All Urban Consumers (CPI-U), as published by the United States Department of Labor over the twelve (12) month period reported in such index immediately preceding the date such adjustment is made. 
 1.39 “Generic Product” means, with respect to a particular Licensed Product, any other product containing a comparable formulation to
the Licensed Product that is marketed, promoted, sold, or distributed by a Third Party in one or more countries without a license from a Party to Commercialize in the relevant country(ies) in accordance with applicable laws and regulations in such
country. 
 1.40 “Governmental Authority” means any court, agency, authority, department, regulatory body or other
instrumentality of any government or country or of any national, federal, state, provincial, regional, county, city or other political subdivision of any such government or any supranational organization of which any such country is a member.

 1.41 “IND” means (a) (i) in the United States, an Investigational New Drug Application, as defined in the
United States Federal Food, Drug, and Cosmetic Act, as amended from time to time, and the regulations promulgated thereunder, that is required to be filed with the FDA before beginning clinical testing of a Licensed Product in human subjects, or any
successor application or procedure, and (ii) any counterpart of a United States Investigational 

  

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New Drug Application in any other country in the Territory, and (b) all supplements and amendments that may be filed with respect to any of the
foregoing. 
 1.42 “Infringement Claim” means a claim or assertion by a Third Party against Novacea, Schering or any of
their respective Affiliates that the use, Development, Manufacture, and/or Commercialization of the Licensed Product infringes or otherwise violates a patent or other intellectual property rights owned or Controlled by such Third Party. 

1.43 “Joint Commercialization Committee” or “JCC” has the meaning set forth in Section 7.1(a). 
 1.44 “Joint Development Committee” or “JDC” has the meaning set forth in Section 4.1. 
 1.45 “Know-How” means any and all proprietary data, information and materials (whether patentable or not) related to Compound,
Formulations, the Licensed Product, any Licensed Product Improvement, Core Indications, Additional Indications, or the Development, Manufacture, Commercialization, or use of any of the foregoing, including, without limitation (a) ideas,
discoveries, inventions, improvements, technology or trade secrets, (b) pharmaceutical, chemical and biological materials, products, components or compositions, (c) tests, assays, techniques, regulatory requirements and strategies, data
(including non-clinical and clinical data), methods, procedures, formulas or processes, (d) technical and non-technical data and other information relating to any of the foregoing, (e) drawings, plans, designs, diagrams, sketches,
specifications or other documents containing or relating to such information or materials, and (f) business processes, price data and information, marketing data and information, sales data and information, marketing plans and market research.

 1.46 “Licensed Product” means any pharmaceutical product containing a Formulation either alone or in combination with one
or more other active pharmaceutical ingredients, including all line extensions and modes of administration thereof. 
 1.47 “Licensed
Product Improvement” shall mean any enhancement to any Licensed Product or Formulation, including, without limitation, to any inactive ingredient, preparation, presentation, means of delivery, dosage, packaging or Manufacture. 

1.48 “Major Markets” means the United States and the EU Major Markets. 
 1.49 “Major Market Royalty Term” shall have the meaning set forth in Section 10.4(c). 
 1.50 “Manufacture” means all activities related to the manufacturing of a pharmaceutical product, or any ingredient thereof, including
but not limited to test method development and stability testing, formulation, process development, manufacturing scale-up, manufacturing Compound or Licensed Product quality assurance/quality control development, 

  

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quality control testing (including in-process, in-process release and stability testing), packaging, release of product or any component or ingredient
thereof, quality assurance activities related to manufacturing and release of product, and regulatory activities related to all of the foregoing. 
 1.51 “MSLs” or “Medical Science Liaisons” shall mean persons responsible for (i) being an ambassador of, and advocate for, Novacea and/or Schering science within the healthcare community;
(ii) developing and nurturing relationships with healthcare professionals that are centered on science; (iii) communicating accurate and balanced information regarding the benefits and risks of Novacea and/or Schering products; and
(iv) interacting with managed care organizations, thought leaders, clinical investigators and other healthcare organizations to provide fair, balanced and scientifically rigorous information. For purposes of clarity, MSLs do not engage in
promotional activities and are not sales representatives. 
 1.52 “Net Sales” means the aggregate gross amount
invoiced by Schering or its Affiliates or Sublicensees, on all sales or transfers for consideration (but only to the extent that such transfers for consideration specifically provide consideration for the Licensed Product) of Licensed Product in the
Territory to a Third Party, less the following deductions, as determined on an accrual basis: 
 (a) bad debts actually
written off which are attributable to sales of Licensed Product; 
 (b) trade, quantity and cash discounts and any
other adjustments, including, without limitation, those granted on account of price adjustments, billing errors, rejected goods, damaged goods, returns, recalls, rebates, chargeback rebates, reasonable fees, reimbursements or similar payments
granted or given to wholesalers or other distributors, buying groups, health care insurance carriers or other institutions; 
 (c) freight, packing, handling, shipping, postage and insurance charges; 
 (d) customs or excise
taxes, including, without limitation, import duties, sales tax and other taxes (except income taxes) or duties relating to sales; 
 (e) any payment in respect of sales to any Governmental Authority (other than to any municipal, county or city authority) in respect of any government-subsidized program, including, without limitation, Medicare and Medicaid rebates;

 (f) amounts paid or credited to customers for inventory management, distribution, warehousing, and related services;

 (g) distribution, packing, handling and transportation charges for Licensed Product; 
  

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 (h) the portion of any management fees paid during the relevant time period to
group purchasing organizations that relate specifically to the sale of such Licensed Product to such organization; and 
 (i) any reasonable deduction substantially similar in character/substance to the above that is related to the sale of the Licensed Product. 
 The foregoing adjustments shall be documented and included in the invoiced price of Licensed Product or otherwise directly paid or incurred by Schering or its Affiliates or Sublicensees without reimbursement, other
than payment by a third party customer. Such adjustments shall be consistent with customary accounting practices within the selling Party and its Affiliates (or their respective Sublicensees) and in accordance with United States Generally Accepted
Accounting Principles (“GAAP”), consistently applied. 
 In the event a Licensed Product is sold in the form of a
Combination Product, then the Net Sales for any such Combination Product shall be determined in a particular country by multiplying the Net Sales of the Combination Product during the applicable royalty reporting period, by the fraction, A/(A+B),
where A is the weighted (by sales volume) average sale price of the Licensed Product when sold separately in finished form in the country in which the Combination Product is sold and B is the weighted (by sales volume) average sale price of the
other product(s) which contain the other active ingredient(s) included in the Combination Product when sold separately in finished form in the country in which the Combination Product is sold, in each case during the applicable royalty reporting
period or, if sales of both the Licensed Product and the other product(s) did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred. In the event that such average sale price cannot be determined
for both the Licensed Product and all other active pharmaceutical ingredient(s) included in the Combination Product, then the Parties shall in good faith discuss and agree on a pro-rata allocation of the Net Sales that reflects the Licensed
Products’ contribution to the Combination Product on an equitable basis. 
 It is understood, however, that in certain countries in the
Territory, Schering or its Affiliates may Commercialize Licensed Products through a Third Party distributor or agent (which does not meet the definition of a Sublicensee) under an arrangement in which Schering or its Affiliates (x) transfer the
Licensed Product to such distributor or agent at a fixed price that is not necessarily related to the final selling price of the distributor or agent, and (y) are not responsible for marketing and promoting such Licensed Product in such
countries and receive no compensation from the sale of such Licensed Products by the distributor or agent. For purposes of clarity, a grant of sublicense rights to any such Third Party distributor or agent necessary for such party to exercise its
rights or perform its obligations does not cause such party to be deemed a Sublicensee as defined herein. 
  

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 1.53 “Novacea Background Know-How” means any Know-How Controlled by Novacea or its
Affiliates that is generated prior to the Effective Date and/or other than in performance of activities conducted under this Agreement. 
 1.54 “Novacea Background Patents” means (i) any and all Patents that are Controlled by Novacea or any of its Affiliates that claim discoveries, inventions, developments or innovations made by or on behalf of Novacea
prior to the Effective Date and/or other than in performance of activities conducted under this Agreement, including, without limitation, the Patents described in Schedule 13.3(a), (ii) any and all Patents that are filed after the
Effective Date that derive from the studies covered by the Aventis Agreements, and (iii) those patents licensed to Novacea under the Upstream License Agreements as described in Schedule 13.3(b). 
 1.55 “Novacea IP” means the Novacea Background Know-How and Novacea Background Patents. 
 1.56 [*] 
 1.57 “OHSU License
Agreement” means that certain Exclusive License Agreement dated as of June 27, 2001 by and between Oregon Health & Science University (OHSU) and D-Novo Therapeutics, Inc., [*]. 
 1.58 “Other Marks” shall have the meaning set forth in Section 12.8. 
 1.59 “Other Product” shall have the meaning set forth in Section 3.2(a). 
 1.60 “Other Product Package” shall have the meaning set forth in Section 3.2(b). 
 1.61 “Party” means Novacea or Schering individually, and “Parties” means Novacea and Schering collectively.
 1.62 “Patents” means any and all issued patents and pending patent applications (including, without limitation, any provisional
applications, continuations, divisionals, continuations-in-part, re-examinations, reissues, substitutions, confirmations, registrations, re-validations, patents of addition, patent term extensions, supplementary protection certificates and the
like), as well as any foreign counterparts of any of the foregoing, that cover Compound, Formulations, the Licensed Products or the Manufacture or use of any of the foregoing. 
 1.63 “Person” shall mean any individual, partnership, joint venture, limited liability company, corporation, firm, trust, association,
unincorporated organization, Governmental Authority or agency, or any other entity not specifically listed herein. 
 1.64 “Phase III
Study” means a large scale, pivotal clinical study for purposes of seeking Regulatory Approval that is intended to evaluate the therapeutic efficacy and safety of the Licensed Product for the prevention or treatment of one or more diseases,
conditions or disorders. 
  

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 1.65 “Phase IV Studies” means a study or data collection effort for the Product that is
initiated in the Territory after receipt of Regulatory Approval for the Licensed Product. 
 1.66 “Price Approvals” means in
those countries in the Territory where Governmental Authorities may approve or determine pricing and/or pricing reimbursement for pharmaceutical products, such approval or determination. 
 1.67 “Program IP” means any Program Know-How and Program Patents, collectively. 
 1.68 “Program Know-How” means any Know-How that is generated in performance of activities conducted pursuant to the Development Plan
and/or generated in performance of any other Development activities, Commercialization activities, Phase IV Studies or Manufacturing activities related to the Licensed Product that are conducted under this Agreement 
 1.69 “Program Patents” means any Patent that claims discoveries, inventions, developments and/or innovations made by or on behalf of one
or more of the Parties and/or their respective Affiliates in performance of activities conducted under this Agreement. 
 1.70
“Project Data” means any and all verified data, information and results generated in performance of any Development activities pursuant to a Development Plan under this Agreement. 
 1.71 “Prosecute” shall mean in relation to any Patent, (a) to prepare and file patent applications, including re-examinations or
re-issues thereof, and represent applicant(s) or assignee(s) before relevant patent offices or other relevant authorities during examination, re-examination and re-issue thereof, in appeal processes and interferences, or any equivalent proceedings,
(b) to defend all such applications against Third Party oppositions, (c) to secure the grant of any Patents arising from such patent application, (d) to maintain in force any issued Patent (including through payment of any relevant
maintenance fees), and (e) to make all decisions with regard to any of the foregoing activities. “Prosecution” has a corresponding meaning. 
 1.72 “Recall” shall have the meaning set forth in Section 7.5(a). 
 1.73
“Quarterly Development Report” shall have the meaning set forth in Section 5.4. 
 1.74 “Regulatory
Application” means (a) the single application or set of applications for approval and/or pre-market approval to make and sell commercially a pharmaceutical product, delivery system or device filed with the FDA, including, without
limitation, all information included in drug master files (as defined in 21 CFR 314.420) (hereinafter “DMF”) related to such application(s), and any related registrations with or notifications to the FDA, and (b) any
counterparts to such applications filed with any other national or supranational 

  

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Regulatory Authority in the Territory, and (c) all supplements and amendments that may be filed with respect to any of the foregoing. 
 1.75 “Regulatory Approval” means any and all approvals (including Price Approvals), licenses, registrations, or authorizations of any
federal, national, multinational, state, provincial or local regulatory agency, department, bureau or other governmental entity necessary for the Manufacture, use, storage, import, export, transport, promotion, clinical trial authorization,
marketing or sale of a Licensed Product in a country. 
 1.76 “Regulatory Authority” means any governmental regulatory
authority involved in granting Regulatory Approvals of any Licensed Product in the Territory, including, without limitation, the FDA and the European Commission. 
 1.77 “ROW” shall mean all parts of the Territory outside of the U.S. 
 1.78 “ROW
Royalty Term” shall have the meaning set forth in Section 10.4(c). 
 1.79 “Royalty Major Markets” means the
[*]. 
 1.80 “Royalty Term” shall have the meaning set forth in Section 10.4(c). 
 1.81 “Schering Background Know-How” means any Know-How that is Controlled by Schering or its Affiliates that is generated prior to the
Effective Date and/or other than in performance of activities conducted under this Agreement. 
 1.82 “Schering Background
Patents” means any and all Patents that are Controlled by Schering or any of its Affiliates that claim discoveries, inventions, developments or innovations made by or on behalf of Schering or its Affiliates prior to the Effective Date
and/or other than in performance of activities conducted under this Agreement. 
 1.83 “Schering IP” means the Schering
Background Know-How, Schering Background Patents, Program Know-How and Program Patents. 
 1.84 “Stock Purchase Agreement”
means the Stock Purchase Agreement between the Parties, executed pursuant to Section 10.2 as of the date hereof and effective as of the Effective Date. 
 1.85 “Sublicense Agreement” shall have the meaning set forth in Section 2.3. 
 1.86
“Sublicensee” shall mean a Third Party (i) to which Schering (or its Affiliate) grants a license and/or sublicense in one or more countries in the Territory under Patents and Know-How owned or Controlled by Schering that are
necessary for the Commercialization of Licensed Product in such country(ies); (ii) which has responsibility and control over the Commercialization of the Licensed Product in the country(ies) in which it holds such license and/or sublicense; and
(iii) which is obligated to pay to Schering (or its Affiliate) royalties and/or 

  

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
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payments representing a share of such Third Party’s profits on sales of the Licensed Product in such country(ies) and such royalties or other payments
are not included in the purchase price paid by such Third Party to Schering or its Affiliates for supplies of Licensed Product for sale in the relevant country(ies). 
 1.87 “Target Product Profile” or “TPP” shall have the meaning set forth in Section 5.2(c). 
 1.88 “Technical Failure” shall have the meaning set forth in Section 16.4(b). 
 1.89 “Territory” means the entire world. 
 1.90 “Third Party” means any Person other than a Party
or its Affiliates. 
 1.91 “Third Party License Agreements” shall have the meaning set forth in Section 10.5(c).

 1.92 “Trademark” shall mean Asentar and any other relevant tradenames and/or accompanying logos, trade dress and/or
indicia of origin as set forth on Schedule 1.92 hereto. 
 1.93 “United States” or “U.S.” means the
United States of America, its territories and possessions as they may exist from time to time during the Term. 
 1.94 “University of
Pittsburgh License Agreement” means that certain License Agreement dated as of July 1, 2002 by and between the University of Pittsburgh of the Commonwealth System of Higher Education (“University of Pittsburgh”) and Novacea,
[*]. 
 1.95 “Upstream License Agreements” means, collectively, the University of Pittsburgh License Agreement and the OHSU
License Agreement. 
 1.96 “USPTO” shall have the meaning set forth in Section 13.3(d). 
  

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 ARTICLE 2 
 LICENSES 
 2.1 License Grant. Novacea hereby grants to Schering an exclusive (even as to
Novacea), sublicensable (subject to the restrictions on Schering’s right to grant sublicenses set forth below in Section 2.3) royalty-bearing license in the Territory under the Novacea IP to Develop, make, have made, use, and Commercialize
Licensed Products in the Field. 
 2.2 Retained Rights; No Other Rights; Covenant. 
 (a) Novacea retains any and all other rights under the Novacea IP that are outside the scope of the licenses granted under
Section 2.1. 
 (b) Novacea shall not grant licenses to any rights under the Novacea IP to any Third Parties that
are inconsistent with the license granted to Schering pursuant to Section 2.1. Schering shall not use any Novacea IP or grant any Third Party any license or right under Novacea IP, other than as expressly permitted in this Agreement.

 2.3 Sublicense Agreements. Schering may grant to Third Parties sublicenses of the rights granted to it under Section 2.1
(without the right to grant further sublicenses) without Novacea’s consent in order to carry out its obligations or exercise its rights under this Agreement. Schering shall, in each agreement under which it grants a sublicense of substantially
all or all the rights granted to it necessary to Commercialize a Licensed Product in the United States pursuant to Section 2.1 (each, a “Sublicense Agreement”), require the Sublicensee to transfer to Novacea if this Agreement
terminates and to Schering if only such sublicense terminates (a) all INDs and/or other Regulatory Applications and Regulatory Approvals held, possessed or controlled by such Sublicensee relating to a Licensed Product and (b) all Patents
and Know-How Controlled by such Sublicensee (which Patents and Know-How shall be transferred either by assignment or by a freely sublicensable exclusive license). Any Sublicense Agreement shall be consistent with the terms and conditions of this
Agreement and Schering shall use Commercially Reasonable Efforts to assign such Sublicense Agreement to the extent required under Section 16.6(c)(iv) of this Agreement. Schering shall (i) use Commercially Reasonable Efforts to procure the
performance by any Sublicensee of the terms of each such Sublicense Agreement, and (ii) be responsible for any breach of this Agreement that is caused (directly or indirectly) by the performance (or failure to perform) of its Sublicensee. The
grant of any such sublicense will not relieve Schering of its obligations under this Agreement, except to the extent they are satisfactorily performed by such Sublicensee. 
 2.4 Disclosure of Novacea Background Know-How. 
 (a) Subject to all applicable provisions of this Agreement, Novacea shall, promptly following the Effective Date, disclose to Schering all Novacea Background Know-How existing as of the Effective Date.
All such Novacea Background Know-How shall be delivered in electronic format, where available, and shall be in English. Novacea will make its and its 

  

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Affiliates’ employees and consultants reasonably available to Schering for consultation as reasonably required by Schering in order to ensure an orderly
transition to Schering of all such Novacea Background Know-How or otherwise to the extent necessary or useful to enable Schering to perform its obligations under this Agreement to Develop, Manufacture, register, use or Commercialize the Licensed
Product and practice the licenses granted hereunder efficiently. Such disclosure shall include, to the extent available to Novacea, any clinical data, study reports, any information relating to manufacturing, any agreements in respect of the
Licensed Product, and any related correspondence and filings with any Regulatory Authority (including notes or minutes of any meetings with any Regulatory Authority). 
 (b) In furtherance of and without limiting Novacea’s obligations pursuant to this Section 2.4, Novacea shall support the
transfer to Schering of all Novacea Background Know-How related to the Manufacture of Compound and Licensed Product, including without limitation all pre-formulation reports, clinical manufacturing batch records, development reports, IND
documentation, analytical results, analytical method validation reports, raw material and excipient sourcing information, quality audit findings, stability reports, Manufacturing know-how, data, procedures, assays, relevant provisions of standard
operating procedures and any other relevant technical information. Each Party shall bear its own costs in performing any activities pursuant to this Section 2.4. Notwithstanding the foregoing, Schering acknowledges that Novacea has no right,
and Novacea is under no obligation to cause Plantex, to transfer to Schering any Know-How relating to the Manufacture of calcitriol or any other Confidential or proprietary information of Plantex. The foregoing notwithstanding, Novacea shall make
all reasonable efforts to transfer the Manufacturing Know-How of Plantex to Schering by (i) requesting of Plantex authorization to reveal and transfer to Schering any Plantex Manufacturing Know-How that is in Novacea’s possession and
(ii) requesting Plantex to transfer all such Know-How to Schering. Novacea shall make such requests within sixty (60) days of the Effective Date of this Agreement. 
 (c) Novacea will, at its own cost and expense, for the first [*] days following the Effective Date and thereafter at
Schering’s cost and expense, provide reasonable assistance to Schering in connection with understanding the information provided by Novacea hereunder to assist Schering in Developing the Licensed Product. 
 2.5 Section 365(n) of the Bankruptcy Code. All rights and licenses granted under or pursuant to any section of this Agreement are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(35A) of the Bankruptcy Code. Each Party shall retain and may fully
exercise all of its rights and elections under the Bankruptcy Code or equivalent legislation in any other jurisdiction. Upon the bankruptcy of Novacea, Schering shall further be entitled to a complete duplicate of (or complete access to, as
appropriate) any such intellectual property owned or Controlled by Novacea or its Affiliates, and such, if not already in its possession, shall be promptly delivered to Schering, unless Novacea elects (as evidenced by written notice to Schering) to
continue, and thereafter at all times satisfactorily continues, to timely perform all of its obligations under this Agreement. 
  

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 ARTICLE 3 
 NON-COMPETE AND OTHER PRODUCTS 
 3.1 Non-Compete. 
 (a) During the Term, neither Party nor its Affiliates may directly or indirectly promote, market, sell or commercialize, or
otherwise be involved in the commercial distribution, promotion, marketing, sale or commercialization of any Competing Product in any country in the Territory, provided, however, that a Party and its Affiliates shall be permitted to
commercialize any product containing the Compound (other than a Formulation) for veterinary or over-the-counter uses, or in human prescriptions provided, however, that in such human prescription use, the dosage and schedule or regimen
are not comparable to that of the Licensed Product. 
 (b) A breach of the foregoing non-compete covenant by either
Party or its Affiliates (i) in any Major Market shall constitute a material breach of the entire Agreement, (ii) in any country other than a Major Market shall constitute a material breach with respect to such country. 
 3.2 Other Products. 
 (a) In addition to the rights granted by Novacea to Schering in Section 2.1, Novacea shall provide prior written notice to Schering if at any time during the Term Novacea intends to (i) [*] a [*] of [*] or to [*] or [*], or
(ii) [*] or [*] or [*] 
 (b) In the event that Novacea provides Schering with notice as set forth above, Novacea
shall provide Schering with a [*] of [*] with regard to [*] 
 ARTICLE 4 
 JOINT DEVELOPMENT COMMITTEE 
 4.1 Joint Development Committee. The
Parties shall share information and review Development activities with respect to the Licensed Product in the Field in the Territory through a joint development committee (“JDC”). 
 (a) JDC Formation. The Parties hereby form the JDC consisting of [*] representatives from Novacea and [*] representatives from
Schering. Each Party may replace [*] of its JDC representatives at any time upon prior written notice to the other Party. The JDC may 

  

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include representatives from regulatory, project management, clinical development or manufacturing; provided, however, that the representatives from
each Party shall be senior enough and have appropriate expertise to participate in Development decisions. 
 (b) Meetings
of the JDC. The JDC shall meet at least two (2) times every calendar year until such time as the JDC is disbanded pursuant to the terms of this Agreement. Subject to the chairperson’s authority to call meetings as set forth in
Section 4.1(c), the JDC shall meet on such dates and at such times and places as agreed to by Schering and Novacea. Meetings of the JDC may be held in person or by means of telecommunication (telephone, video or web conferences). Each Party may
include a reasonable number of non-JDC member employees, consultants, representatives or advisors to participate in or present at JDC meetings; provided, however, that such persons are bound by obligations of confidentiality no less stringent
than those set forth in Article 14. Each Party shall be responsible for its own expenses for participating in the JDC. Meetings of the JDC shall be effective only if at least one member of each Party is present or participating. To the extent an
issue within the purview of the JDC is subject to a vote at a meeting where not all members of the JDC are present, the sole present member of the relevant Party shall be entitled to vote by proxy for the absent JDC member. 
 (c) Chairperson. [*] shall appoint a chairperson of the JDC from among its members. The chairperson shall be responsible for
setting the agenda for, and calling and leading meetings of the JDC. Any member of the JDC may request that items be added to the agenda for discussion. The secretary of the meeting, as designated by the chairperson, shall prepare and distribute
meeting minutes to all members of the JDC. Minutes of each JDC meeting shall be approved or disapproved, and revised as necessary within thirty (30) days following such meeting. Final minutes of each meeting shall be distributed to the members
of the JDC by the chairperson. 
 (d) JDC Working Groups. From time to time, the JDC may establish and delegate duties
to other committees, sub-committees, or directed teams (each a “JDC Working Group”) on an “as needed” basis to oversee particular projects or activities. 
 4.2 Responsibilities of the JDC. The JDC shall have the responsibility and authority to: 
 (a) review the Development of the Licensed Product in the Field in the Territory and discuss the overall strategy for Development
of the Licensed Product in the Field in the Territory; 
 (b) monitor the progress of all clinical studies that are
ongoing as of the Effective Date; 
 (c) oversee the execution of the [*] and [*] with respect to the Licensed Product;

  

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 (d) review, approve and monitor performance against [*] for Development activities
as set forth in the Development Plans; 
 (e) review and monitor performance against [*] for Development activities as
set forth in the Development Plans; 
 (f) discuss the [*] as developed by Schering pursuant to Section 5.1; and

 (g) perform such other functions as the Parties may agree in writing. 
 4.3 JDC Conduct. 
 (a) Consensus. The Parties will endeavor to reach consensus on all matters within the scope of the JDC. 
 (b) Dispute Resolution. If the JDC is unable to reach unanimous agreement on any issue within its purview, such issue shall be promptly referred to the [*] and the [*] (the “JDC Responsible Executives”) who
shall make good faith efforts to promptly resolve the matter in dispute within thirty (30) days. Schering shall have sole and final decision making authority with respect to any matter in dispute that cannot be resolved by the JDC Responsible
Executives relating to the Development of Licensed Products in the Field in the Territory, provided, however, that any material amendment to the Core Development Plan will require the consensus of the Parties pursuant to
Section 5.2(c). The foregoing notwithstanding (i) Schering shall have the right to make a final decision, and the Parties will proceed in a manner consistent with Schering’s position, on any time-sensitive matter disputed at the JDC
where Schering reasonably determines that a delay in such decision is likely to have an adverse effect on either the Development or Commercialization of the Licensed Product and (ii) Schering shall be permitted to modify the Core Development
Plan in its sole discretion as set forth in Section 5.2(c). For the avoidance of doubt, disputes of the JDC resolved pursuant to this Section 4.3(b) (other than disputes related to compliance with this Agreement or the validity, breach,
termination or interpretation of this Agreement; including, without limitation, whether the standard of Commercially Reasonable Efforts has been met) shall not be subject to any other dispute resolution mechanism or arbitration procedure.

 4.4 Novacea JDC Participation. Novacea’s membership in the JDC shall be at its sole discretion as a matter of right and not
obligation for the sole purpose of participation in governance, decision making and information exchange with respect to Development activities. At any time prior to disbanding of the JDC pursuant to Section 4.5 below, Novacea shall have the
right to withdraw from participation in the JDC upon thirty (30) days’ prior written notice to Schering, which notice shall be effective upon the expiration of such thirty (30) days period (“Withdrawal Notice”).
Following the issuance of a Withdrawal Notice and subject to this Section 4.4, (i) the JDC shall be disbanded, (ii) Schering shall have the right to make the final decision on all matters previously within the scope of authority of
the JDC; and (iii) Novacea shall have the right to continue to receive the Quarterly Development Report and Monthly Update Reports. 
  

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 4.5 Disbanding of JDC. Schering may, in its sole discretion, disband the JDC upon the earlier of
(i) Regulatory Approval in the United States for all indications being actively pursued in the Core Development Plan, or (ii) a Novacea Change of Control event, as set forth in Section 18.1. In addition, the Parties shall have the
right to disband the JDC upon thirty (30) days written notice at any time upon mutual agreement. To the extent not disbanded pursuant to Section 4.4 or this Section 4.5 above, the JDC shall be automatically disbanded after any twelve
(12) month period during which no active Development of any Licensed Product has occurred. 
 4.6 Alliance Manager. Each Party
will appoint and maintain for the term of this Agreement an Alliance Manager to facilitate the reasonable and appropriate flow of information and communication between the Parties pursuant to this Agreement. 
 ARTICLE 5 
 DEVELOPMENT

 5.1 Overview. As of the Effective Date, Schering shall be primarily responsible for the Development of the Licensed Product in
the Field in the Territory. Schering shall perform all of its Development activities in accordance with the INDs for the Licensed Products. Without limiting the generality of the foregoing, subject to Sections 5.2(c) and (d), Schering shall be
responsible for (a) determining which indications (other than the Core Indications) Licensed Product will be Developed for in the Field; (b) developing the Forward Development Plan(s); (c) determining the Development strategy for all
indications in the Field in the Territory; (d) developing protocols for future pre-clinical and clinical studies to be conducted in the Territory in the Field; and (e) conducting any pre-clinical and clinical studies in the Territory in
the Field other than Novacea’s ongoing clinical studies pursuant to Section 5.2(c) hereof. Upon request by either Party, the Parties hereby agree to enter into a services agreement as necessary to govern the performance of any Development
activities to be performed by Novacea pursuant to this Agreement. 
 5.2 Development Plans. 
 (a) Core Development Plan. The Parties have agreed on the initial Development plan for the Licensed Product in the Core Indications
in the Field in the Territory (as may be amended in accordance with this Agreement, the “Core Development Plan”), a copy of which is attached hereto as Exhibit A. 
 (b) Updates to Development Plans. The JDC will review and update the Core Development Plan from time-to-time, but no less
frequently than annually, to take into account completion, commencement, changes in or cessation of Development activities not contemplated by the then-current Core Development Plan. 
  

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 (c) To the extent there are ongoing clinical studies being conducted by Novacea,
Novacea will continue to execute such ongoing studies in accordance with the Core Development Plan and under the oversight, review and direction of the JDC, with the scope and nature of Schering’s participation to be agreed by the Parties and
set forth in the Core Development Plan. For purposes of clarity, Novacea will continue to conduct all activities related to ASCENT-2, except as otherwise set forth in the Core Development Plan. From and after the Effective Date, Schering will assume
responsibility and control of the execution of all Development activities related to the Licensed Product under the oversight of the JDC and in accordance with the Core Development Plan, provided, however, that the Parties will agree
upon and set forth, in the Core Development Plan, any specific activities to be performed by Novacea (to be reimbursed at the FTE Rate) relating to the Development of the Licensed Product in the Core Indications. From and after the Effective Date,
to the extent there are any Novacea-initiated clinical studies for which final reports have not been finalized, Novacea shall have primary responsibility at its own cost and expense to write up all study reports for such studies, provided,
however, that drafts of all such reports must be reviewed and approved by the JDC before being deemed final and filed. Any material changes to the Core Development Plan must be agreed upon by the Parties, provided, however, that
in the event that Schering determines that (i) the Licensed Product has not met the initial target product profile agreed to by the Parties and listed in the CDP (“TPP”), or (ii) the results of work done under the Core
Development Plan provide a reasonable expectation, supported by market research data provided to Novacea, that the then-current TPP will not be achieved or makes it commercially unreasonable to pursue Development in accordance with the Core
Development Plan, Schering shall be permitted to modify the Core Development Plan in its sole discretion. 
 (d) Either
Party may propose to the JDC that Additional Indications be pursued. To the extent Novacea makes such a proposal, it shall present formal clinical study proposals to the JDC for consideration. Should Schering determine, in its sole discretion, that
Development of any Additional Indications is desirable and commercially reasonable, Schering will develop a separate Development plan (or plans) covering such Development activities (the “Forward Development Plan(s)”) and Schering
will be primarily responsible for the Development and execution thereof. A copy of the initial Forward Development Plan is attached hereto as Exhibit B. The JDC will discuss the scope of subsequent Novacea participation in execution of
Forward Development Plan(s). It is currently anticipated that Novacea will execute the pancreatic study listed in the Forward Development Plan under the oversight of the JDC. For clarity, Schering shall not be obligated to undertake Development
and/or Commercialization of the Licensed Product for indications outside of the Core Indications. 
 5.3 Development Costs. During the
Term, Schering shall be responsible for all costs and expenses related to the Development of Licensed Product under this Agreement in the Field in the Territory that are incurred following the Effective Date (“Development Costs”).
With respect to those Development Costs incurred by Novacea after the Effective Date, Schering’s obligations under this Section 5.3 shall be limited to those reasonable documented direct costs and expenses incurred by Novacea following the
Effective Date in connection with the conduct 

  

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of Development activities provided for in the Development Plans, including (i) the forward funding of Novacea’s ongoing clinical studies pursuant
to the Core Development Plan and (ii) compensating Novacea at the FTE Rate for those FTEs that are engaged in the execution of Development Plans, provided, however, that such Novacea costs and expenses must not exceed the amounts
attributed to such activities in the budget set forth in the Development Plan by more than [*] percent without Schering’s prior written consent. Novacea shall be responsible for providing, once every calendar quarter, an estimate of the
Development Costs it expects to incur for the next [*]. To the extent that Novacea anticipates any variance [*] percent or more from the amount attributed to a budgeted line item activity exceeding [*] (as identified in a Development Plan) or to the
activities as a whole, Novacea shall promptly inform Schering and may not incur such additional costs without Schering’s prior written consent. For the avoidance of doubt, Novacea shall remain solely responsible for all costs and expenses
accrued or incurred in the Development of Licensed Product in the Territory prior to the Effective Date. 
 5.4 Reports.
Schering shall provide to Novacea quarterly Development reports (“Quarterly Development Report”) that will include a listing of clinical studies and the status of such studies for the Licensed Product in the Major Markets. As a part
of the Quarterly Development Report, Schering shall provide to Novacea a table report that contains the status of Regulatory Approvals for the Licensed Product in the Territory. In addition, Schering shall provide to Novacea monthly updates of
patient enrollment information for any Phase III Studies in a Core Indication or for pancreatic cancer (“Monthly Update Report”), provided, however, (i) it is understood that such information will be based solely
on the information Schering receives as reported from clinical trial sites and (ii) to the extent Novacea is responsible for such a study, Novacea shall provide a Monthly Update Report to Schering. For clarity, all such information provided by
a Party under this Article 5 shall be considered Schering’s Confidential Information. 
 5.5 Transfer of Information Regarding
Licensed Products. In accordance with Section 2.4, Novacea shall work with Schering to allow for an orderly and appropriate transfer to Schering, as soon as reasonably practicable following the Effective Date and pending a thorough review
of Novacea data management processes utilized in connection with the Development of the Licensed Product by Schering, of (a) databases containing all data collected from clinical trials that have been conducted prior to or are ongoing as of the
Effective Date by or on behalf of Novacea, or any of its Affiliates, with respect to Licensed Product in the Field in the Territory (provided that with respect to ongoing clinical trials, measures shall be taken to ensure that the clinical trials
remain blinded in accordance with Schering standards and the laws or regulations of any applicable Governmental Authority), and (b) all documents and reports that have been prepared by or on behalf of Novacea, or any of its Affiliates, in
connection with such studies, including without limitation trial master files, protocols, investigators brochures and case report forms. In connection with the transfer of the database pursuant to this Section 5.5, Novacea shall provide the
software programs used to calculate the fields contained in such database and the audit trails for any changes that have been made to the database, together with a list of the standard conventions and coding utilized in preparing such database, and
any other explanatory 

  

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documentation. In addition, Novacea shall provide Schering with copies of any audit or similar reports that have been prepared by or on behalf of Novacea, of
any of its Affiliates, prior to the Effective Date with respect to any Development or Manufacturing activities related to Licensed Product and will cooperate with Schering after the Effective Date to provide Schering reasonable access to all data
(including source data), documents and procedures as required by Schering to conduct audits of any sites conducting any clinical trials, Development or Manufacturing activities on behalf of Novacea. For purposes of clarity, Novacea shall remain
responsible for all activities required for data completion related to ASCENT-2 except as otherwise set forth in the CDP. This Section 5.5 is subject to any restriction under Novacea’s agreements with Third Parties with respect to the
foregoing, however, to the extent that such agreements with Third Parties limit the disclosure to Schering, Novacea shall request of such Third Parties the authorization to disclose such information and documents to Schering. Novacea shall make such
requests within forty-five (45) days of the Effective Date of this Agreement. 
 5.6 Development Diligence. Schering shall
use Commercially Reasonable Efforts to Develop the Licensed Product in accordance with the Core Development Plan, as it may be amended, which will include Commercially Reasonable Efforts to meet the targeted activity timelines set forth therein, as
they may be amended (the “CDP Timelines”). To the extent that Schering meets the CDP Timelines, Schering shall be deemed to have met its diligence obligations under this Section 5.6. Further, so long as Schering is using
Commercially Reasonably Efforts to meet the CDP Timelines, failure to do so shall not constitute a breach of this Agreement. 
 ARTICLE 6

 REGULATORY 
 6.1
Regulatory Filings Transfer. 
 (a) Within [*] days after the Effective Date (or such other date as mutually agreed
by the Parties), Novacea shall transfer to Schering all existing INDs and other Regulatory Applications that it owns or controls covering the Licensed Product and reasonably assist Schering in obtaining the transfer of such INDs and other Regulatory
Applications that it does not own or control. The Parties agree that Novacea will continue to execute ASCENT-2 in accordance with the Core Development Plan, and Schering hereby delegates such responsibility to Novacea. Novacea shall, upon request,
timely provide to Schering information and reports related to ASCENT-2 necessary to satisfy Schering’s routine Regulatory Authority reporting obligations. For a period of at least [*] days after the Effective Date, Novacea will provide, at its
own cost and expense and at Schering’s request, necessary information and support to Schering with respect to regulatory correspondence, discussions and meetings between Novacea and Regulatory Authorities that took place prior to the Effective
Date. After the Effective Date, other than with respect to the DMF owned by Plantex under the Existing Supply Agreement, all further submissions to any Governmental Authorities relating to such Regulatory Applications and/or INDs or any other
Regulatory Applications covering the Licensed Product, shall be 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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owned by, filed by and in the name of Schering or its Affiliates. Schering or its Affiliates shall hold all Regulatory Approvals for Licensed Product
throughout the Territory. 
 (b) In accordance with Section 2.4, within forty-five (45) days after the
Effective Date (or such other date as mutually agreed by the Parties), Novacea shall transfer to Schering one copy of all documents and records that have been generated by or on behalf of Novacea with respect to any existing INDs and other
Regulatory Applications that it owns or controls covering the Licensed Product in the Territory, as well as any correspondence between Novacea and Governmental Authorities related to Licensed Products. 
 (c) Other than with respect to the DMF owned by Plantex under the Existing Supply Agreement, Schering shall be solely responsible
for overseeing, monitoring and coordinating all regulatory actions, communications and filings with the FDA and other Governmental Authorities in the Territory and preparing, submitting and maintaining all Regulatory Applications and health
registrations with respect to all Licensed Product. 
 (d) Other than with respect to the DMF owned by Plantex under
the Existing Supply Agreement, Schering shall be solely responsible for interfacing, corresponding and meeting with the FDA and other Governmental Authorities throughout the Territory with respect to Licensed Product. Schering shall provide Novacea
with copies of any non-routine material correspondence with FDA or other Governmental Authorities in the Major Markets relating to approval of Licensed Product, within thirty (30) days of any such correspondence. Schering shall also provide
Novacea with meeting minutes from any material meetings with Regulatory Authorities in the Major Markets concerning the approval of Licensed Product. Schering will provide Novacea with reasonable advance notice of any scheduled meeting with the FDA
relating to Development of the Licensed Product and/or any Regulatory Application for the Licensed Product in the United States. 
 6.2
Pharmacovigilance. 
 (a) In accordance with the Safety Agreement to be entered into by the Parties pursuant to
Section 6.2(d) hereof, following the transfer of any INDs related to Licensed Product from Novacea to Schering, the Parties shall be responsible for the collection and tracking, and Schering shall be responsible for the review, assessment, and
filing, of information related to adverse events (“AEs”) associated with Licensed Product, in accordance with U.S. 21 CFR 312.32, 314.80, the European Legislation Directive 2004/27/EC, Council Regulation (EEC) No 2004/726,
Commission Regulation (EC) No 540/95, European Union Guidance Volume 9 and Volume 9a on Rules Governing Medicinal Products, and Guidance Documents for the Clinical Trial Directive 2001/20/EC and other comparable regulations, guidance, directives and
the like governing AEs associated with Licensed Product that are applicable. 
 (b) In accordance with the Safety
Agreement to be entered into by the Parties pursuant to Section 6.2(d) hereof, as soon as is practicable following the Effective Date, but in any event within thirty (30) days of the Effective Date, Novacea will provide Schering with all

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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known safety information for Licensed Products, including without limitation copies of all AEs reports, copies of all study reports of completed studies
(including copies of the protocols), and copies of all interim study analysis of all ongoing studies for Licensed Product (including copies of protocols) to the extent not previously provided to Schering. In furtherance of the foregoing, Novacea
shall transfer to Schering databases that are consistent with industry standards and contain all relevant information regarding adverse events that have been observed during any clinical trials conducted with respect to Licensed Product prior to the
Effective Date. 
 (c) Within a reasonable period of time following receipt of all such information, Schering shall
assume responsibility for maintaining a global safety database for Licensed Product consistent with industry practices. 
 (d) As soon as is practicable following the Effective Date, the Parties will enter into a Safety Agreement. 
 (e) Novacea hereby agrees that, following the Effective Date, it will cooperate with Schering to help ensure that Novacea’s information technology systems used for collecting, compiling, tracking and filing information related
to AEs are compatible with Schering’s information technology systems for same. 
 ARTICLE 7 
 COMMERCIALIZATION AND MEDICAL EDUCATION 
 7.1 Joint Commercialization Committee 
 (a) At least [*] months prior to the anticipated filing of the
first NDA/MAA in the Territory, the Parties will establish a joint commercialization committee (“JCC”). The primary role of the JCC shall be to exchange information and coordinate the activities of the Parties with respect to the
support and Commercialization of the Licensed Products in the Field in the Territory. 
 (b) Effective as of the date
of the initial approval from the FDA for the Licensed Product in the U.S., the JCC shall become responsible for approving the [*] and [*] by Schering for the Licensed Product in the U.S. The JCC will also provide a forum for discussing U.S. [*] and
coordinating the U.S. medical education activities by the Parties, which will include discussion of [*] and the [*] to obtain Novacea’s input. Notwithstanding the foregoing, the JCC will not have any decision making authority with respect to
any matters in the Territory related to [*] and [*] (including [*]),[*], or the content of [*]. 
 (c) Schering
will have decision making authority with respect to all aspects of the Commercialization of the Licensed Product in the ROW, and shall keep Novacea reasonably informed with respect to such activities through periodic reports to the JCC. 

 

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 (d) [*] shall appoint a chairperson of the JCC from among its members. The
chairperson shall be responsible for setting the agenda for, and calling and leading meetings of the JCC. Any member of the JCC may request that items be added to the agenda for discussion. The secretary of the meeting, as designated by the
chairperson, shall prepare and distribute meeting minutes to all members of the JCC. Minutes of each JCC meeting shall be approved or disapproved, and revised as necessary, at the next meeting. Final minutes of each meeting shall be distributed to
the members of the JCC by the chairperson. 
 (e) The JCC shall have [*] of representatives from each Party.

 (f) Novacea’s membership in the JCC shall be at its sole discretion as a matter of right and not obligation for
the sole purpose of participation in information sharing and coordination with respect to Commercialization activities. At any time prior to disbanding of the JCC pursuant to Section 7.1(g) below, Novacea shall have the right to withdraw from
participation in the JCC upon thirty (30) days’ prior written notice to Schering, which notice shall be effective upon expiration of such thirty (30) day period (“Withdrawal Notice”). Following the issuance of a
Withdrawal Notice and subject to this Section 7.1(f): (i) the JCC shall be disbanded; (ii) Schering shall have the right to make the final decision on all matters previously within the scope of authority of the JCC; (iii) in its
sole discretion, Schering may terminate its funding obligations with respect to Novacea MSLs and, in such case, Novacea MSLs shall cease activities related to Licensed Product; and (iv) Schering may, in its sole discretion, replace existing
Novacea MSLs with Schering MSLs. 
 (g) The JCC shall be automatically disbanded upon the earlier of
(i) termination of the Royalty Term in the U.S. or (ii) discontinuation of MSL support by Novacea. 
 7.2 JCC Dispute
Resolution. Decisions on any issues within the JCC’s purview will be made on a unanimous basis. If the JCC is unable to reach unanimous agreement on such an issue, such issue will be promptly referred to the [*] and the [*] (the
“JCC Responsible Executives”) who shall make good faith efforts to promptly resolve the matter in dispute within thirty (30) days, provided, however, that Schering shall have the right to make a final decision,
and the Parties will proceed in the manner consistent with Schering’s position, on any time-sensitive matter disputed at the JCC where Schering reasonably determines that a delay in such decision is likely to have an adverse effect on the
Commercialization of the Licensed Product. In furtherance and not in limitation of the foregoing, Schering shall have final decision making authority with respect to any matter in dispute that cannot be resolved by the JCC Responsible Executives.
For the avoidance of doubt, disputes of the JCC resolved pursuant to this Section 7.2 (other than disputes related to compliance with this Agreement or the validity, breach, termination or interpretation of this Agreement; including, without
limitation, whether the standard of Commercially Reasonable Efforts has been met) shall not be subject to any other dispute resolution mechanism or arbitration procedure. 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 7.3 Commercialization and Medical Education Support. 
 (a) As of the Effective Date, Schering shall have sole responsibility and decision-making authority for and control over
Commercialization and medical education activities related to the Licensed Product in the ROW (including, without limitation, pricing, marketing, promotion, distribution and sale) and Schering shall be responsible for all costs and expenses
associated with the Commercialization activities related to the Licensed Product in the Field in the Territory, except as otherwise specified below with respect to certain Third Party royalties. 
 (b) The Parties will provide support for the Licensed Product in the U.S. as set forth herein. Novacea shall provide that number of
MSLs as set forth in Stage 1 and Stage 2 below to support product launch and Schering shall have the option, in its sole discretion, to provide up to the greater of (i) [*] MSLs or (ii) [*] MSL per defined Schering U.S. Sales territory.
Schering shall fund Novacea’s MSLs at the FTE Rate through the Royalty Term in the U.S., except as otherwise provided in Sections 7.1(f), 7.3(d), or 7.3(h). In the event that Novacea is unable to provide the agreed number of MSLs, as set forth
below, within [*] months of the target date for bringing on such MSLs as established by the JDC or the JCC, Schering shall be permitted to increase the number of Schering MSLs accordingly and the number of MSLs that Novacea will provide will be
reduced accordingly. 
 (i) Stage 1: No later than [*] months prior to anticipated U.S. Regulatory Approval of
Licensed Product for AIPC, Schering will fully fund (at the FTE Rate) [*] Novacea MSLs to support product launch; and 
 (ii) Stage 2: No later than [*] months prior to anticipated U.S. Regulatory Approval of Licensed Product for the first of ADPC or Adjuvant Therapy, Schering will fully fund (at the FTE Rate) [*] additional Novacea MSLs to
support product launch. 
 For purposes of this section, “Dedicated MSLs” shall mean MSLs (either of Schering or of Novacea) that dedicate
[*] of their time to support of the Licensed Products. 
 (c) All Novacea MSLs will be managed by Novacea, but will be
required to adhere to all Schering standard operating procedures, including, without limitation, with respect to hiring and operations, all of which shall be provided by Schering to Novacea. For purposes of clarity and in furtherance of the
foregoing, all Novacea MSLs must be hired in accordance with Schering hiring policies and must perform in accordance with such minimum performance and reporting requirements and standard operating procedures as are established by Schering. All
Novacea MSLs will be required to complete an activity report in the form required by Schering, which shall be submitted to Schering by the end of the calendar month to which such activity report relates. Novacea MSL managers will be responsible for
reporting in to Schering’s operations management in a manner consistent with Schering’s reporting requirements. Novacea shall regularly monitor Novacea MSLs with respect to meeting Schering’s minimum performance requirements
established by Schering, and Schering shall be permitted to 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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periodically monitor Novacea MSLs with respect to such performance requirements. In the event that either Party determines that any Novacea MSLs do not meet
such minimum performance requirements, including those for whom Schering has a reasonable expectation that they may not meet or continue to meet such requirements over a period of [*] days or more, it shall promptly notify the other Party and shall
provide such other Party with sufficient information for it to confirm such findings. In the event that a Novacea MSL has not, for [*] consecutive months, performed in accordance with such minimum performance requirements, Novacea shall cause such
Novacea MSL to cease activities related to the Licensed Product. Novacea has the right to replace such Novacea MSL, however, if Novacea fails to do so within [*] months, (i) Schering will be permitted to replace such Novacea MSL with a Schering
MSL, notwithstanding any limitation on the number of MSLs that Schering may provide, and (ii) the minimum number of Novacea MSLs funded by Schering shall be reduced by one. In furtherance of the foregoing, to the extent that any Novacea MSL
fails to adhere to any law or regulation applicable to its performance hereunder, Novacea will ensure that such Novacea MSL(s) immediately cease all activity related to the Licensed Products. 
 (d) While Schering is providing 100% of the funding for Novacea MSLs, Schering may, at its discretion, and with prior notice to
Novacea, have such MSLs support other Schering products, provided, however, that, in such event, the MSLs shall continue to be Dedicated MSLs. Notwithstanding the foregoing, in the period expiring [*] after AIPC Regulatory Approval in
the U.S., one hundred percent (100%) of Novacea MSL activity shall be dedicated to the Licensed Product. In the period beginning [*] months prior to the first to occur of the anticipated ADPC or Adjuvant Therapy Regulatory Approval in the U.S.
and expiring [*] months after the first to occur of the anticipated ADPC or Adjuvant Therapy Regulatory Approval in the U.S., at least [*] percent [*] of Novacea MSL activity shall be dedicated to the Licensed Product with at least [*] percent [*]
of Novacea MSL effort and physician visits directed at [*] To the extent that Novacea supports other Novacea owned and controlled products through its medical education infrastructure on terms to be established by the Parties; (1) Novacea must
provide prior notice to Schering of such change at least [*] months in advance, including information regarding the other Novacea product(s) that it intends to have the Novacea MSLs support, and will work with Schering to ensure support of the
Licensed Products is not adversely affected; (2) such Novacea MSLs must continue to be Dedicated MSLs; and (3) subsequent Schering funding of such Novacea MSLs will be reduced as follows: (a) if such Novacea MSLs provide up to [*]
percent [*] (as a percentage of time) support to other Novacea owned and controlled products, Schering shall reduce its funding of such Novacea MSLs by [*] percent [*]; or (b) if such Novacea MSLs provide greater than [*] percent [*] up to [*]
percent [*] (as a percentage of time) support to other Novacea owned and controlled products, Schering shall reduce its funding of such Novacea MSLs by the percentage of time such MSLs spend on Novacea products not licensed to Schering. 

(e) If the Parties determine that additional Dedicated MSLs are desired or necessary in order to adequately support the Licensed
Products, such Dedicated MSLs shall be Novacea MSLs funded by Schering at the above FTE Rate. If Schering has other MSLs that 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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primarily support other Schering products and it wishes to have those MSLs provide some support to the Licensed Products, Schering may do so, provided that
such additional MSLs are not Dedicated MSLs. [*] months prior to the anticipated filing of a Regulatory Application for the second Core Indication pursuant to the Core Development Plan, the JCC shall assess Schering’s and Novacea’s
resources available to promote the Licensed Product. Subject to Section 7.2, should the JCC determine that Schering’s available resources are inadequate to Commercialize the Licensed Product in the U.S., the JCC may request that Novacea
participate in Commercialization activities in the U.S. (which may include sales force support). 
 (f) For the
first [*] months following launch of the initial indication in each of the U.S., [*], Schering will support the Licensed Products in each such market as follows: 
 (i) In the U.S., Schering will support licensed product with [*] than [*] oncology field force. As of the Effective Date, the
Parties agree that an appropriate composition of [*] oncology field force in the U.S. is between [*] and [*] representatives who will primarily target oncologists. The Parties further agree that the appropriate composition of [*] oncology field
force in the U.S. may change over the term of this Agreement and therefore, Schering’s support of the licensed product may be adjusted by Schering as appropriate for a large international pharmaceutical company. Schering’s sales force will
be supported by a team of appropriate account management, distribution, and reimbursement support in support of distribution to key customers; and 
 (ii) In the other markets listed above, Schering will commit a corresponding level of effort (as defined by local Schering standards), taking into account relative market size, field force structure, etc.

 In all such markets, the Licensed Products will be the primary focus of the detailing efforts directed to appropriately targeted physicians,
provided, however, that, in the event that there are significant differences between the proposed TPP and approved labeling for such initial indication, Schering reserves the right to adjust Commercialization efforts accordingly.

 (g) Specific Provisions related to MSLs 
 (i) Novacea will comply with all applicable Laws in the hiring, employment, and discharge of all Novacea MSLs involved with
performance of Novacea’s responsibilities under this Section 7.3. Novacea represents to Schering that Novacea is an Equal Opportunity Employer and does not discriminate against any person because of race, color, creed, age, sex, or
national origin. 
 (ii) Novacea acknowledges and agrees that Schering does not and will not maintain or procure any
worker’s compensation insurance for or on behalf of Novacea or any of Novacea’s MSLs, all of which shall be Novacea’s sole responsibility. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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 (iii) Novacea acknowledges and agrees that all Novacea MSLs are not, and are not
intended to be or be treated as, employees of Schering or any of its Affiliates, and that such individuals are not, and are not intended to be, eligible to participate in any benefits programs or in any “employee benefit plans”, as such
term is defined in section 3(3) of ERISA, that are sponsored by Schering or any of its Affiliates or that are offered from time to time by Schering or its Affiliates to their own employees (the “Schering Benefit Plans”). All matters of
compensation, benefits and other terms of employment for any such personnel shall be solely a matter between Novacea and such individual. Novacea shall be solely responsible and liable for the payment of all compensation and benefits under any such
employee benefit plan to its MSLs. 
 (iv) Schering shall not be responsible to Novacea or to any Novacea MSLs used to
perform Novacea’s obligations under this Section 7.3 with respect to Licensed Product for any compensation, expense reimbursements or benefits (including, without limitation, vacation and holiday remuneration, healthcare coverage or
insurance, life insurance, pension or profit-sharing benefits and disability benefits), payroll-related taxes or withholdings, or any governmental charges or benefits (including without limitation unemployment and disability insurance contributions
or benefits and workmen’ compensation contributions or benefits) that may be imposed upon or be related to the performance by Novacea and its MSLs of Novacea’s obligations under this Agreement, all of which shall be the sole responsibility
of Novacea, even if it is subsequently determined by any court, the IRS or any other governmental agency that such individual may be a common law employee of Schering or any of its Affiliates. 
 (v) Novacea shall be solely responsible for its acts and omissions and for those acts or omissions of its MSLs while performing any
of the services to be provided by Novacea under this Agreement. 
 (vi) Novacea will indemnify, defend, and hold
harmless Schering and its Affiliates, and its and their directors, employees and agents from and against any and all damages, liability, losses and costs that may be paid or payable resulting from or in connection with any claim or other cause of
action asserted by any Novacea MSLs, or by any Third Party (including without limitation federal, state or local governmental authorities) arising out of the execution and/or performance of any activities provided for in Section 7.3 of this
Agreement that is based on or with respect to: 
 a. costs, damages and losses that Schering or its Affiliates may
incur resulting from any claims for benefits that any Novacea MSLs may make under or with respect to any Schering Benefit Plan; and 
 b. any payment or obligation to make a payment to any Novacea MSLs relating in any way to any compensation, benefits of any type under any employee benefit plan (as such term is defined in Section 3(3) of ERISA), and any other
bonus, stock option, stock purchase, 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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incentive, deferred compensation, supplemental retirement, severance and other similar fringe or employee benefit plans, programs or arrangements that may be
sponsored at any time by Schering or any of its Affiliates, or by Novacea or any of its Affiliates, even if it is subsequently determined by any court, the IRS or any other governmental agency that any Novacea MSL may be a common law employee of
Schering or any of its Affiliates; and 
 c. the payment or withholding of any contributions, payroll taxes, or any
other payroll-related item by or on behalf of Novacea or any of its MSLs with respect to which Novacea or any of its MSLs may be responsible hereunder or pursuant to applicable law to pay, make, collect, withhold or contribute, even if it is
subsequently determined by any court, the IRS or by any other governmental agency that any such Novacea MSLs may be a common law employee of Schering or any of its Affiliates; and 
 d. failure of Novacea to withhold or pay required taxes or failure to file required forms with regard to compensation paid to
Novacea by Schering and compensation and benefits paid or extended by Novacea to its MSLs. 
 Notwithstanding anything in this
Section 7.3(g)(vi) to the contrary, Novacea shall have no liability to Schering or its Affiliates or their respective directors, employees and agents to the extent attributable to any discriminatory, harassing or retaliatory acts of Schering
its Affiliates, or its or their directors, employees or agents, or any tortious acts (including without limitation acts constituting assault, battery or defamation) by Schering, its Affiliates, or its or their directors, employees or agents, with
respect to any Novacea MSLs. 
 (vii) Novacea is and shall remain solely responsible and liable for all probationary
and termination actions taken by it, as well as for the formulation, content, and for the dissemination (including content) of all employment policies and rules (including written probationary and termination policies) applicable to its employees
and contractors. 
 (h) Notwithstanding anything herein to the contrary, in the event that the royalties payable by
Schering in the U.S. are reduced pursuant to Section 10.4(c), Schering shall have the right, in its sole discretion, to reduce or eliminate its funding obligations with respect to Novacea MSLs. In such event, Novacea’s obligation to
provide MSLs for the Licensed Product shall be correspondingly reduced or eliminated, as applicable; provided that in such case if and to the extent Schering elects to continue using some MSLs for the Licensed Product in the U.S., Schering
shall first [*] before reducing the number of Schering funded Novacea MSLs. 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
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 (i) Schering shall be solely responsible for the distribution and booking of sales
of Licensed Products throughout the Territory. 
 7.4 Reports. Prior to the First Commercial Sale of the Licensed Product in
the United States, at the JCC, Schering will present and discuss with Novacea its planned pre-launch activities and launch plan for the Licensed Product in the United States. Thereafter, on an annual basis, Schering will provide Novacea with
information on approvals and launches in ROW (“Annual Commercialization Report”). For clarity, all information provided by Schering to Novacea under this Article 7 shall constitute Schering’s Confidential Information.

 7.5 Recalls. 
 (a) Each Party shall promptly notify the other Party in writing if it determines that any event, incident or circumstance has occurred which may result in the need for a “recall” or “market withdrawal” (as such
terms are defined in U.S. 21 CFR 7.3 or other similar national, state or local law or regulation) (hereinafter referred to as a “Recall”) of a Licensed Product or any lot(s) thereof. 
 (b) Schering shall be responsible for determining whether and upon what terms and conditions Licensed Product shall be Recalled or
otherwise withdrawn from sale to Third Parties within any country in the Territory. Schering shall be responsible for discussions with Regulatory Authorities within the applicable country regarding all aspects of the Recall decision and the
execution thereof. 
 (c) If at any time (i) any Governmental Authority in the Territory issues a request,
directive or order for a Recall of a Licensed Product in the Territory; or (ii) a court of competent jurisdiction orders a Recall of a Licensed Product in the Territory; then Schering shall be responsible for implementing such Recall. The
expenses arising from such Recall shall be the responsibility of Schering. 
 7.6 Non-Solicitation. During the Term and for a
period of [*] months thereafter, neither Party shall, either directly or indirectly, solicit for employment any MSL of the other Party whom such Party has met as a result of its performance hereunder, provided, however, the foregoing restriction
shall not prohibit either Party from engaging in a general recruitment effort carried out through a public solicitation or general solicitation not specifically targeted at the other Party’s MSLs pursuant thereto. 
 7.7 Commercial Diligence. Schering shall use Commercially Reasonable Efforts to Commercialize the Licensed Product in the Field in the
Major Markets, including, without limitation, in performing its obligations under this Article 7. 
 7.8 Use of Novacea Name on
Product Labeling. To the extent consistent with applicable law, Schering shall include the Novacea name and/or logo together with the name and logo of Schering on the packaging and labeling for Licensed Product, identifying the Licensed 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
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Product as being “under license from Novacea, Inc.”, and on core promotional materials used in Commercializing the Licensed Product. Novacea hereby
grants to Schering the limited, non-sublicensable (except to Affiliates and Sublicensees solely if and as required for manufacture, use and sale of the Licensed Products in the Territory) rights to use the Novacea name and logo in connection with
the Commercialization of the Licensed Product in accordance with this Section 7.8. 
 ARTICLE 8 
 [RESERVED] 
 ARTICLE 9

 MANUFACTURING 
 9.1 From and after the Effective Date, Schering shall be solely responsible for all aspects of the Manufacturing and supply (clinical and commercial) of the Licensed Product, provided, however, that the Parties will
cooperate to facilitate an appropriate and efficient transition of the Compound and finished product Manufacture and/or technology transfer, as deemed appropriate, and to the extent consistent with the Existing Supply Agreement. 
 9.2. The Parties agree that the terms and conditions of this Section 9.2 shall apply solely with respect to manufacturing of calcitriol under
the Existing Supply Agreement for use in connection with the manufacture, use and distribution of Licensed Product in the Territory. In accordance with Section 5.1 of the Existing Supply Agreement, Schering shall purchase from Plantex, or its
Affiliates, at least [*] percent [*] of its annual requirements of calcitriol for the manufacture, sale, and distribution of Licensed Products in the Territory, and except as provided below shall not purchase from any source other than Plantex, or
its Affiliates, in any calendar year during the Term any amount of calcitriol for use in connection with the manufacture, sale, and distribution of Licensed Products in the Territory. During the Term, Schering shall have the right during any given
calendar year, and notwithstanding the foregoing [*] percent [*] requirement, to purchase from a source other than Plantex and its Affiliates up to such amount of calcitriol for use in connection with the manufacture, sale, and distribution of
Licensed Products in the Territory as is necessary to keep a second manufacturing source of calcitriol qualified; provided that such purchases shall in the aggregate be at least [*] and not more than [*] of calcitriol for Licensed Product in
any calendar year. The Parties agree that Plantex shall be deemed a third party beneficiary under this Agreement solely with respect to this Section 9.2. The Parties further agree that: (i) as between Schering and Novacea, in the event of
any inconsistency between this Section 9.2 and the other terms and conditions of this Agreement, such other terms and conditions shall control; and (ii) in the event that the Existing Supply Agreement is terminated and/or modified such
that the restrictions set forth in Section 5.1 of the Existing Supply Agreement no longer apply, then this Section 9.2 shall be deemed terminated. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 32 

 9.3. Pursuant to Section 2.4(b) Novacea shall make all reasonable efforts to transfer to
Schering the Manufacturing Know-How of Plantex by (i) requesting of Plantex authorization to reveal and transfer to Schering any Plantex Manufacturing Know-How that is in Novacea’s possession and (ii) requesting Plantex to transfer
all such Know-How to Schering. Notwithstanding anything herein to the contrary, to the extent Schering assumes the Existing Supply Agreement, all of the following costs and expenses incurred by Schering shall be creditable against any royalty or
milestone payments due Novacea pursuant to this Agreement: 
 (a) amounts paid to Plantex to purchase minimum
requirements of Compound that are in excess of Schering’s actual requirements and that cannot reasonably be utilized by Schering; and 
 (b) amounts paid to a second manufacturer of Compound to purchase Compound (for the purposes of qualifying such second manufacturer as permitted by the Existing Supply Agreement and maintaining such second
manufacturer in a qualified status and reserving manufacturing capacity in the event of a supply failure by Plantex) in excess of the quantities of Compound that Schering can reasonably utilize in the Manufacture of Licensed Product. 
 ARTICLE 10 
 PAYMENTS 

10.1 Upfront Payment. Schering shall pay to Novacea the following non-refundable payments within [*] Business Days after the Effective
Date: 
 (a) Thirty-five million Dollars ($35,000,000) as reimbursement for research and Development expenses incurred
by Novacea prior to the Effective Date; and 
 (b) A one-time license issuance fee of twenty-five million Dollars
($25,000,000). 
 10.2 Equity. Schering hereby agrees to purchase twelve million Dollars ($12,000,000) of Novacea common stock
pursuant to the terms of the Stock Purchase Agreement. 
 10.3 Development Milestones. 
 (a) Milestones. Schering shall make each of the following one-time, non-refundable milestone payments to Novacea upon first
occurrence of the corresponding milestone event with respect to the Licensed Product, whether such milestone is achieved by or on behalf of Schering, its Affiliate, or Sublicensee. Following the first such payment, no additional payments will be due
upon any repeated or subsequent occurrence of the same event. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 33 

							
		 	EVENT	 		  	PAYMENT

 AIPC 
 [*]

 ADPC 
 [*] 
 Adjuvant Therapy 
 [*] 
 Additional Indication Milestones 
 Will only apply to approvals of
each of the indications in the following tumor types: 
 [*] 
 (b) Notice; Payment. Schering shall notify Novacea within [*] Business Days after the occurrence of an achievement of each milestone event giving rise to a payment obligation under this
Section 10.3, and Schering shall pay Novacea the indicated amount no later than [*] days after delivery of such notice to Novacea. 
 10.4 Royalties. 
 (a) Royalty Rates. Schering shall pay to Novacea during the Royalty Term, a
royalty on worldwide annual Net Sales of Licensed Product at the rates set forth below: 
  

				
	 Annual Worldwide Net Sales
	  	Royalty Rate	 
	 First $[*]
	  	[	*]%
	 Portion above $[*] and up to and including $[*]
	  	[	*]%
	 Portion above $[*] and up to and including $[*]
	  	[	*]%
	 Portion above $[*]
	  	[	*]%

 (b) Timing of Payments. Royalty obligations will be determined
quarterly and due payable as set forth in Article 11. 
 (c) Royalty Term. 
 (i) Royalty Major Markets. With respect to sales of Licensed Product in Royalty Major Markets, royalties will be payable, on
a Licensed Product-by- Licensed 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 34 

 
Product basis, in any country starting with the First Commercial Sale of Licensed Product in such country and expiring on a country-by-country basis upon the
last to expire Patent owned or Controlled by Novacea that covers the Licensed Product or its use in the Field and provides commercial exclusivity for such Licensed Product (the “Major Market Royalty Term”), provided,
however, that on a country-by-country, Licensed Product-by-Licensed Product basis, the royalties payable by Schering hereunder will be automatically reduced [*] beginning [*] following the date on which unit sales of Generic Products that
have entered the market in such country for the then current calendar month are, in the aggregate, greater than [*] percent [*] of the unit sales of the Licensed Product during such same period, until the earlier of: (a) [*], or (b) the
last to expire [*] Patent that comprises a part of the Novacea Background Patents, at which time the royalties payable by Schering hereunder will be automatically reduced [*] 
 (ii) Rest of World. With respect to sales of Licensed Product in all countries of the Territory other than Royalty Major
Markets, royalties would be payable, on a Licensed Product-by-Licensed Product basis, in any country starting with the First Commercial Sale of Licensed Product in such country and expiring on a country-by-country basis upon the later of
(a) the last to expire Patent owned or Controlled by Novacea that covers the Licensed Product or its use in the Field and provides commercial exclusivity for such Licensed Product, and (b) the end of the first calendar quarter of [*] (the
“ROW Royalty Term” and together with the Major Market Royalty Term, the “Royalty Term”), provided, however, that on a country-by-country, Licensed Product-by-Licensed Product basis, the royalties
payable by Schering hereunder would be automatically reduced [*] beginning [*] following the date on which unit sales of Generic Products that have entered the market in such country for the then current calendar month are, in the aggregate, greater
than [*] percent [*] of the unit sales of the Licensed Product. 
 10.5 Third Party License Agreements. 
 (a) Novacea shall remain solely responsible for any and all royalties and other payments due to Third Parties after the Effective
Date under agreements between Novacea and such Third Parties executed prior to the Effective Date. 
 (b) Upstream
License Agreements. Notwithstanding anything therein or herein to the contrary, Novacea and Schering hereby agree that: 
 (i) In the event that either of the Upstream License Agreements terminates or Novacea breaches an Upstream License Agreement such that Schering is required to make direct payments to the University of Pittsburgh or OHSU, Schering
shall be permitted to offset any such payments against any unpaid royalty or milestone payments due Novacea pursuant to this Agreement. 
 (ii) Schering will not bear any liability for indemnifying either the University of Pittsburgh or OHSU against any Losses arising out of events taking place prior to the Effective Date and Novacea shall
indemnify Schering under the Upstream License Agreements against any such Losses. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 35 

 (iii) To the extent that Novacea has the right under the Upstream License
Agreements to review any proposed publications and request delays related thereto, it shall provide such publications to Schering to enable it to timely opine on any request for delay of publication as provided by the relevant Upstream License
Agreement. Novacea agrees that it shall promptly provide copies of such publications to Schering so that it may exercise its rights hereunder. 
 (iv) In the event that Novacea fails to cure any actual or potential breach of an Upstream License Agreement, which is not due to an action or inaction by Schering and for which the upstream licensor has the
right to terminate such Upstream License Agreement upon failure to cure such breach, at least [*] Business Days prior to the expiration of the applicable cure period for the breach as provided under the applicable agreement, then Schering shall have
the right to immediately undertake any actions, in its name or in the name of Novacea, that Schering considers reasonably necessary to cure the breach on behalf of Novacea in order to avoid termination of such agreement. Schering’s rights under
this Section shall include, without limitation, (i) the right to make on Novacea’s behalf any royalty payments or other payments to licensors that are due under the applicable Upstream License Agreement, and/or (ii) to contract
directly with the applicable licensor in order to maintain Schering’s licenses and other rights to the Compound and Licensed Products in the Territory. Novacea shall fully cooperate with Schering in connection with the performance of any
activities undertaken by Schering pursuant to this Section, which cooperation shall (if necessary) include procuring the assignment to Schering or its designated Affiliates of all of Novacea’s rights and interests under the applicable Upstream
License Agreement. Nothing in this Section, or any actions undertaken by Schering pursuant hereto, shall be construed as a waiver, or as otherwise releasing, Novacea from any liability under this Agreement, or otherwise at law or equity, resulting
from any breach of its obligations under this Agreement. In addition, to the extent that Schering makes any royalty payments or other payments due to a licensor under an Upstream License Agreement pursuant to this Section in order to avoid
termination of such agreement and retain Schering’s rights and licenses under this Agreement, (1) Schering shall have the right to deduct any such payments to licensor from any of its unpaid payment obligations to Novacea under this
Article 10 of this Agreement, and (2) Schering and its Affiliates shall have no further obligations to Novacea, and Novacea shall have no right to receive any further payments from Schering, with respect to any such deducted amounts.

 (v) Schering hereby agrees to comply with the terms and conditions set forth in Schedule 10.5(b)(v) of this
Agreement as required by Section 4.02 of the OHSU License Agreement. The Parties agree that as between Schering and Novacea, in the event of any inconsistency between the terms and conditions of this Agreement and 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 36 

 
the terms and conditions set forth in Schedule 10.5(b)(v), the terms and conditions of this Agreement shall control. The Parties further agree that in the
event that the OHSU License Agreement is terminated and/or modified such that the requirements set forth in Section 4.02 of the OHSU License Agreement no longer apply, then this Section 10.5(b)(v) and Schedule 10.5(b0(v) shall be deemed
terminated. 
 (c) Except with respect to those Manufacturing rights that Plantex possesses for calcitriol, in the
event that Schering reasonably and in good faith believes that one or more licenses to Third Party Patents or Know-How may be required in order to enable Schering or its Affiliates or Sublicensees to Develop, Manufacture, use, and/or Commercialize a
Licensed Product in the Field in the Territory (“Third Party License Agreements”), it shall notify Novacea and the Parties may meet to discuss the basis for Schering’s conclusion. Schering shall be responsible for negotiating
and entering into any Third Party License Agreements regarding Patents which claim or that would be infringed by, and any Know-How which is necessary for the Development, Manufacture, use, and/or Commercialization of the Licensed Product in the
Field in the Territory. 
 (d) In the event that Schering, or its Affiliates or Sublicensees pay a Third Party any
license fees, milestone payments, royalties or other amounts under a Third Party License Agreement, related to any Patents (including any related Know-How) licensed under such Third Party License Agreements (“Third Party License
Fees”), Schering shall be entitled to credit against any royalties that are due Novacea pursuant to Section 10.4 [*] percent [*] of all of Third Party License Fees actually paid to the Third Party under such Third Party License
Agreement, provided, however, that to the extent such Third Party License Fees encompass more than Patents and related Know-How necessary to Develop, Manufacture, use, and/or Commercialize Licensed Products, any Third Party License
Fees reasonably attributable thereto will not be credited. In no event, however, shall such credit cause the royalties paid to Novacea for any particular calendar quarter to be reduced to less than [*] percent [*] of the amount due to Novacea prior
to such reductions; provided, however, that any amounts that cannot be offset due to such limitation (“carryover amounts”) can be offset against royalties payable to Novacea in subsequent calendar quarters (subject to the
same limitation applying). Any carryover amounts that remain at the end of the Royalty Term under the Agreements will be [*] 
 10.6
Compulsory License. In the event that Schering or Novacea receives a request for a Compulsory License anywhere in the world, it shall promptly notify the other Party. If any Third Party obtains a Compulsory License in the Territory, then
Novacea or Schering (whoever has first notice) shall promptly notify the other Party. For the avoidance of doubt, for purposes of calculating the royalties due Novacea under Section 10.4 with respect to sales of the Licensed Product by any
compulsory licensee, Schering’s Net Sales from such sales shall be calculated based solely on the actual royalty payments, if any, paid by the compulsory licensee to Schering or its Affiliates under the Compulsory License. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 37 

 ARTICLE 11 
 PAYMENT; REPORTS; AUDITS 
 11.1 Schering Quarterly Royalty Payments and Reports. 

(a) Starting on the First Commercial Sale in the Territory and continuing until the expiration of Schering’s royalty
obligations under Section 10.4, Schering agrees to make written reports to Novacea within [*] days after the end of each calendar quarter covering all sales of the Licensed Product in the Territory by Schering, its Affiliates and Sublicensees
for which invoices were sent during such calendar quarter, each such written report in reasonable detail as available to Schering (including the details of Schering’s gross sales to Net Sales calculation) stating for the period in question:

 (i) the Net Sales by Schering, its Affiliates and Sublicensees for the applicable calendar quarter, and 

(ii) a calculation of the amount of royalty payment due on such Net Sales pursuant to Section 10.4. 
 (b) The information contained in each report under this Section 11.1 shall be considered Confidential Information of Schering.
Novacea may provide access to such reports if requested by an upstream licensor under the audit provisions of the Upstream License Agreements, subject to the confidentiality obligations contained therein and shall be treated as confidential
information thereunder. Concurrent with the delivery of each quarterly report, Schering shall make the royalty payment due Novacea under Section 10.4 for the calendar quarter covered by such report. 
 (c) In the case of transfers or sales of any Licensed Product between Schering and an Affiliate or Sublicensee of Schering, a
royalty shall be payable only with respect to the sale of such Licensed Product to an independent Third Party not an Affiliate or Sublicensee of Schering, [*] in the case of [*] such [*] of [*], in which case, [*]. For purposes of this
Section 11.1(c), [*] shall mean an [*] 
 11.2 Schering Quarterly Development Cost Payments. As soon as possible, but in
any event within [*] Business Days of a calendar quarter close, Novacea shall submit a report showing actual Development Costs and supporting documentation along with an invoice for such quarter. Schering will have [*] days from its receipt of such
invoice to provide payment in accordance with Section 11.4. 
 11.3 Accounting. 
 (a) Schering. Schering agrees to keep full, clear and accurate records for a maximum period of [*] years after the relevant
payment is owed pursuant to this Agreement, setting forth the sales and other disposition of Licensed Product sold or otherwise disposed of in 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 38 

 
sufficient detail to enable royalties and compensation payable to Novacea hereunder to be determined. Schering further agrees, upon reasonable prior notice,
to permit the books and records relating to such [*]year period to be examined during normal business hours by an independent nationally recognized accounting firm selected by Novacea and acceptable to Schering for the purpose of verifying reports
provided for in Section 11.1. Such audit shall not be performed more frequently than once per calendar year nor more frequently than once with respect to records covering any specific period of time and shall be conducted under appropriate
confidentiality provisions, for the sole purpose of verifying the accuracy and completeness of all financial, accounting and numerical information and calculations provided under this Agreement. Such examination is to be made at the expense of
Novacea, except in the event that the results of the audit reveal an underpayment of royalties, milestones, or other payments to Novacea under this Agreement of [*] percent [*] or more over the period being audited, in which case reasonable audit
fees for such examination shall be paid by Schering. When calculating the Net Sales, the amount of such sales in foreign currencies shall be converted into Dollars using the standard methodologies employed by Schering for consolidation purposes.
Schering shall provide reasonable documentation of the calculation and reconciliation of the conversion figures on a country-by-country basis as part of its report of Net Sales for the period covered under the report. 
 (b) Novacea. Novacea agrees to keep full, clear and accurate records for a maximum period of [*] years after the relevant payment
is owed pursuant to this Agreement, setting forth the Development Costs and reimbursable MSL expenses incurred by it and charged to Schering pursuant to Article 4, Section 5.3, and 7.3 in sufficient detail to enable appropriate reimbursement
payable to Novacea hereunder to be determined. Novacea further agrees, upon reasonable prior notice, to permit the books and records relating to such [*]-year period to be examined during normal business hours by an independent nationally recognized
accounting firm selected by Schering and acceptable to Novacea for the purpose of verifying invoices provided pursuant to Section 11.2 or MSL expenses charged pursuant to Section 7.3. Such audit shall not be performed more frequently than
once per calendar year nor more frequently than once with respect to records covering any specific period of time and shall be conducted under appropriate confidentiality provisions, for the sole purpose of verifying the accuracy and completeness of
all financial, accounting and numerical information and calculations provided under this Agreement. Such examination is to be made at the expense of Schering, except in the event that the results of the audit reveal an overpayment of such costs and
expenses to Novacea under this Agreement of [*] percent [*] or more over the period being audited, in which case reasonable audit fees for such examination shall be paid by Novacea. 
 11.4 Methods of Payments. All payments due to a Party under this Agreement shall be paid in Dollars by wire transfer to a bank in the
United States designated in writing by such Party. 
 11.5 Taxes. If a law or regulation of any country of the Territory
requires withholding of taxes of any type, levies or other charges with respect to any amounts payable hereunder to 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 39 

 
Novacea, Schering shall promptly pay such tax, levy, or charge for and on behalf of Novacea to the proper Governmental Authority, and shall promptly furnish
Novacea with receipt of such payment. Schering shall have the right to deduct any such tax, levy or charge actually paid from payment due Novacea or be promptly reimbursed by Novacea if no further payments are due Novacea. Schering agrees to assist
Novacea in claiming exemption from such deductions or withholdings under double taxation or similar agreement or treaty from time to time in force and in minimizing the amount required to be so withheld or deducted. 
 11.6 Late Payments. Any amount owed by one Party to the other Party under this Agreement that is not paid within the applicable time period
set forth herein shall accrue interest at the rate of Six Month LIBOR plus [*] percent [*] as set by the British Bankers Association as of the due date or, if lower, the highest rate permitted under applicable law. 
 ARTICLE 12 
 INTELLECTUAL PROPERTY

 12.1 Ownership of Background IP. The Parties acknowledge and agree that: 
 (a) Novacea is and will remain in Control and/or the owner of Novacea Background Patents and Novacea Background Know-How;

 (b) Schering (or its Affiliate) is and shall remain the owner of Schering Background Patents and Schering Background
Know-How; and 
 (c) Except for those rights and licenses expressly granted under this Agreement, nothing contained in
this Agreement shall be construed as granting or conveying (expressly, by implication, or otherwise) to any Party any license or other rights under any Patents, Know-How or other intellectual property rights owned or Controlled by another Party.

 12.2 Ownership of Program IP. As between Schering and Novacea, all rights, title and interest in or to any and all Program
Know-How and Program Patents shall be owned by Schering. 
 (a) Novacea shall promptly perform such other acts as may
be reasonably requested by Schering in order to perfect Schering’s (or if applicable its Affiliate’s) ownership interest in Program Patents in accordance with this Section 12.2, including without limitation by causing the execution of
any assignment or other similar documents. 
 (b) To the extent that Novacea utilizes its existing Third Party
contractors or sublicensees to perform any Development activities or Manufacturing activities related to the Licensed Products, Novacea shall convey to Schering its rights to any Program IP made by such Third Party contractors. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 40 

 (c) To the extent that after the Effective Date Novacea enters into any new agreements
with Third Party contractors or sublicensees to perform any Development activities or Manufacturing activities related to the Licensed Products, Novacea shall ensure that such Third Party contractors are obligated to assign or license rights to
Novacea to any Program IP made by such Third Party contractors so that such rights may be conveyed to Schering under this Section 12.2. 
 12.3 Prosecution of Intellectual Property. 
 (a) Schering Background Patents. Schering shall
have the sole right and responsibility (at its expense) to Prosecute any and all Schering Background Patents and shall have final decision making authority with respect to all matters related thereto. 
 (b) Novacea Owned Background Patents. Novacea shall have the first right and responsibility (at its expense) to Prosecute
any and all Novacea Background Patents solely owned by it and shall consult with Schering regarding all aspects of the Prosecution thereof and provide Schering a reasonable opportunity to review and make comments with respect thereto, which comments
Novacea shall consider in good faith. Novacea shall notify Schering a reasonable time prior to taking (or failing to take) action that would affect the scope or validity of rights under such Novacea Background Patents or any issued patents arising
therefrom (including but not limited to substantially narrowing or canceling any claim without reserving the right to file a continuing or divisional application, abandoning any Patent or not filing or perfecting the filing of any Patent in any
country) to provide Schering a reasonable opportunity to review and make comments with respect thereto, which comments Novacea shall consider in good faith. In the event that Novacea intends to abandon or to otherwise discontinue Prosecution of any
Novacea Background Patents solely owned by it that claim the Formulation and/or the Licensed Product (or the Manufacture or use of any of the foregoing) in one or more countries in the Territory, it shall first offer Schering the opportunity to
assume responsibility and control (at Schering’s expense) over Prosecution of such Novacea Background Patents. Written notice of any such offer to assume responsibility for Novacea Background Patents shall be communicated to Schering at least
thirty (30) days prior to any final (non-extendable) deadlines related to Prosecution of the relevant Novacea Background Patent(s), and shall clearly identify the nature and status of the relevant Patents. In the event that Schering does assume
control over any Novacea Background Patents pursuant to this Section 12.3(b), then Novacea shall promptly provide to Schering (or its designated outside counsel) copies of all files related to Prosecution of the relevant Patents (including
without limitation copies of all communications related to such Patents with the U.S. Patent and Trademark Office and/or any analogous foreign Governmental Authority). In addition, Novacea shall upon request (i) perform such commercially
reasonable acts (including signing or causing the signing of documents) reasonably necessary to enable Schering to control the Prosecution of such Patents, and (ii) provide Schering (or its designated patent counsel) with access to any of
Novacea’s or its Affiliates’ employees, agents or consultants to the extent necessary (and for such periods of time as are reasonable) to enable Schering to Prosecute any such Patents. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 41 

 (c) Novacea Background Patents Not Solely Owned by Novacea. With respect to
Novacea Background Patents owned in whole or in part by OHSU or the University of Pittsburgh under the Upstream License Agreements or by Aventis under the Aventis Agreements, Novacea shall keep Schering reasonably informed with respect to
prosecution of such Patents as soon as practicable to the extent Novacea is informed under such agreements and shall act in accordance with Section 12.3(b) with respect to such Patents to the extent not inconsistent with the Upstream License
Agreements or the Aventis Agreements. 
 (d) Program Patents. Schering shall have the sole right and
responsibility (at its expense) to Prosecute any and all Program Patents and shall have final decision making authority with respect to all matters related thereto. Schering shall keep Novacea reasonably informed regarding all patent filings and
strategies related thereto. 
 (e) Cooperation. Novacea shall, upon request, reasonably cooperate with Schering
in the Prosecution of Program Patents. Such cooperation shall include (i) causing the execution and delivery of documents, and (ii) making reasonably available to Schering, (or to its designated attorneys, agents or representatives) any of
Novacea’s employees, agents or consultants, in each case to the extent necessary or reasonable to enable Schering to prepare, file, prosecute and maintain such Program Patents, such access to personnel to be for periods of time sufficient to
obtain the necessary assistance from such personnel. 
 12.4 Enforcement and Defense of Patents. 
 (a) Notice. Each Party shall promptly notify the other Party in the event it becomes aware of any Infringement Claims. Any
such notice shall clearly identify the relevant Third Party and shall include sufficient information (to the extent available) to reasonably enable the other Party to evaluate such Infringement Claim. 
 (b) Defense of Infringement Claims. Schering shall have the right and responsibility, at its sole discretion, to defend and
control any action or proceeding with respect to any Infringement Claim. With respect to any such Infringement Claim, Novacea shall, upon request, reasonably cooperate with Schering as necessary for the defense of such Infringement Claim (including
consenting to any necessary use of its or its Affiliates’ name). Schering shall have sole control of any suit, action or other proceedings to defend an Infringement Claim, and for any and all settlement discussions or negotiations with respect
thereto; provided, however, that Schering shall not settle or compromise any such suit (or enter into any consent order for the settlement or compromise thereof) without the prior written consent of Novacea, which consent shall not be
unreasonably withheld, conditioned or delayed, if such settlement or compromise: (i) involves an admission of invalidity of any Novacea Background Patents; (ii) would impose any financial obligations on Novacea or its Affiliates;
(iii) would impose an injunction or other similar restriction on Novacea or its Affiliates; or (iv) would constitute an admission of guilt or liability by or on behalf of Novacea or its Affiliates. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 42 

 (c) Step-in Right for Novacea. In the event that Schering does not elect to
defend an action or proceeding related to an Infringement Claim within [*] of said claim being brought (or such shorter time period as may be necessary to appropriately respond to said claim), or if Schering notifies Novacea at any time prior
thereto of its intention not to defend such action or proceeding, then Novacea shall have thereafter have the right, but not be obligated, to defend and control any action or proceeding. In the event Novacea elects to defend the Infringement Claim
it shall notify Schering to that effect and shall thereafter have sole control of any suit, action or other proceedings to defend the Infringement Claim, and for any and all settlement discussions or negotiations with respect thereto;
provided, however, that Novacea shall not settle or compromise any such suit (or enter into any consent order for the settlement or compromise thereof) without the prior written consent of Schering, which consent shall not be
unreasonably withheld, conditioned or delayed, if such settlement or compromise: (i) involves an admission of invalidity of any Schering Background Patents or Program Patents; (ii) would impose any financial obligations on Schering or its
Affiliates, or otherwise adversely impact Schering’s rights, with respect to the Formulation or the Licensed Product; (iii) would impose an injunction or other similar restriction on Schering or its Affiliates; or (iv) would
constitute an admission of guilt or liability by or on behalf of Schering or its Affiliates. Schering shall, upon request, reasonably cooperate with Novacea as necessary for the defense of any Infringement Claim for which Novacea has assumed
responsibility under this Section 12.4(c) (including consenting to any necessary use of Schering or its Affiliates’ name). 
 (d) Costs and Expenses of Defending an Infringement Claim. Except as otherwise expressly set forth in this Section 12.4(d) and Article 15, each Party shall be responsible for the costs and expenses (both internal and
out-of-pocket costs) of defending any Infringement Claim for which it has assumed the responsibility pursuant to Sections 12.4(b) or 12.4(c). Such Party shall reimburse the other Party for any documented reasonable out-of-pocket costs incurred by or
on behalf of such other Party in cooperating with the defense of such Infringement Claim. If, as a result of a judgment in the litigation or settlement with the Third Party, Schering or its Affiliates or Sublicensees is required to pay to such Third
Party royalties or other consideration, Schering and Novacea shall share the costs of such royalties [*] 
 12.5 Prosecution of
Infringers. Should any Third Party infringe, or reasonably appear to be infringing, any Novacea Background Patents which adversely affect or could reasonably be expected to adversely affect the Development, Manufacture, use or Commercialization
of Compound, Formulation or Licensed Product in the Field in the Territory, the Party learning of such infringement or potential infringement shall promptly notify the other upon learning of the same. Any such notice shall clearly identify the
relevant Third Party and shall include sufficient information (to the extent available) to reasonably enable the other Party to evaluate such infringement or potential infringement. 
 (a) Schering shall have the primary right, but not the obligation, to bring and direct any legal or other action, including any
settlement negotiation or proceeding, with respect to any infringement or potential infringement in the Territory of the Novacea Background 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 43 

 
Patents solely owned by Novacea and except to the extent such action would conflict with the Upstream License Agreements or Aventis Agreements with respect
to Novacea Background Patents covered by such Agreements. Schering shall have the right to join Novacea (or the University of Pittsburgh or OHSU with respect to Novacea Background Patents covered by the Upstream License Agreements or Aventis with
respect to Novacea Background Patents covered by the Aventis Agreements) as a party plaintiff in any such action or to bring any such action in Novacea’s name if required by applicable law. Schering shall also have the sole right, but not the
obligation, to bring and direct any legal or other action, including any settlement negotiation or proceeding, with respect to any infringement or potential infringement in the Territory of the Schering Background Patents or Program Patents.

 (b) As regards each discovered infringer of Novacea Background Patents, if Schering does not bring suit against said
infringer pursuant to this Section 12.5, or has not commenced negotiations with said infringer for discontinuance of said infringement, as herein provided, within [*] days after receipt of notice of such infringement pursuant to this
Section 12.5 (or such shorter period of time as is necessary to preserve any rights to obtain injunctive relief under applicable law), then Novacea shall have the right, but not the obligation, to bring and direct any legal or other action for
such infringement. Schering shall retain its rights to initiate patent infringement litigation respecting an infringer of Novacea Background Patents solely owned by it (and Novacea Background Patents covered by the Upstream License Agreements or the
Aventis Agreements to the extent not in conflict with such agreements) if it places such infringer on proper legal notice that such infringer’s infringing activities will be addressed in a legal action initiated subsequent to the resolution of
another infringement action involving the same Novacea Background Patents. 
 (c) In the event that Schering elects to
institute any action against an infringer of Novacea Background Patents in accordance with the provisions of this Section 12.5, it shall promptly notify Novacea and keep Novacea reasonably informed as to important developments of such
negotiation and suit. In the event that Novacea elects to initiate or conclude any settlement negotiation or proceeding with respect to any infringement or potential infringement in the Territory of Novacea Background Patents in accordance with
Section 12.5(b), it shall promptly notify Schering and keep Schering reasonably informed as to important developments of such negotiations or proceedings. 
 (d) Each Party agrees to render such reasonable assistance as may be reasonably requested by the other Party and as may be
reasonably necessary or useful to assist the other with respect to any actions instituted by the other Party pursuant to this Section 12.5. Each Party may be represented by counsel of its own selection at its own expense in any suit or
proceeding brought to restrain such infringement by any Third Party; provided, however, the foregoing shall not affect the right to control such litigation by the Party which has instituted it. 
 12.6 Allocation of Recovery Against Third Party Infringer. All amounts recovered from a Third Party pursuant to Section 12.5 shall be
used first to reimburse the documented reasonable costs and expenses (including reasonable attorney’s fees and costs) of the Parties in 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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such action (including any settlement negotiation or proceeding). Any remaining amounts from such recovery shall be allocated as follows: 
 (a) With respect to any recovery for infringement of a Novacea Background Patent solely owned by it, (x) if Schering initiated
and prosecuted the action pursuant to Section 12.5(a), Schering shall pay Novacea an amount equal to [*] percent [*] of the balance of such recovery and Schering shall be entitled to keep the remainder of such balance, and (y) if Novacea
initiated and prosecuted the action pursuant to Section 12.5(b), Novacea shall pay Schering an amount equal to [*] percent [*] of the balance of such recovery and Novacea shall be entitled to keep the remainder of such balance. 
 (b) With respect to any recovery for infringement of a Schering Background Patent or Program Patent, the entire balance shall be
retained by Schering. 
 12.7 Updating Patent Schedule. Novacea shall update Schedules 13.3(a) and 13.3(b) (Novacea
Background Patents) on an annual basis and provide a copy of such updated schedule to Schering. For clarity, any failure to update or delay in updating Schedules 13.3(a) and 13.3(b) to identify a given Novacea Background Patent shall not be
construed as excluding such Patents from being treated as a Novacea Background Patent for all purposes under this Agreement. 
 12.8
Ownership of Trademarks. Novacea agrees to assign all right, title, and interest in or to the Trademark to Schering. Novacea agrees to perform such acts as may be reasonably requested by Schering in order to perfect Schering’s ownership
interest in the Trademark including, without limitation, assigning the U.S. application to Novacea once the registration for the Trademark is granted so as to comply with restrictions under U.S. trademark law on assigning “intent-to-use”
applications. Novacea grants Schering an exclusive, royalty-free license to use the Trademark in the U.S. until such time as the trademark registration is assigned to Schering. Novacea agrees to pursue the U.S. trademark application to registration
and Schering agrees to pay for any costs associated with prosecution and/or opposition efforts. Novacea agrees to execute any assignment and similar documents as requested by Schering relating to the assignment of the Trademark and Schering agrees
to pay for all costs associated with the filing and recording of such assignments. In addition, Schering (or its designated Affiliates) shall have the right to select and shall own any and all other trademarks, trade-dress and service marks
associated with Licensed Product in the Territory (collectively, “Other Marks”) and shall own all goodwill associated therewith. Schering (or its designated Affiliates) shall also own any domain names associated with Licensed
Product in the Territory, including any domain names that contain the Trademark or any Other Marks. Schering shall be solely responsible (at its own expense) for registering, maintaining, defending and enforcing any and all Other Marks in the
Territory, and shall have sole control and final decision making authority over all matters with respect thereto. To the extent that Schering or its Affiliates are utilizing the Trademark in connection with the Development, Manufacture and
Commercialization of the Licensed Product in the Territory, Schering shall also have the right to control the defense and enforcement of the Trademark in the Territory. Schering and its designated Affiliates shall be entitled to retain 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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recoveries, awards or damages awarded or otherwise resulting from any action to enforce the Other Marks against any Third Party infringing or otherwise
committing any unauthorized use of the Other Marks. 
 12.9 Certification Under Drug Price Competition and Patent Restoration Act.
Each Party shall immediately give written notice to the other Party of any certification of which they become aware filed pursuant to 21 U.S.C. Section 355(b)(2)(A) (or any amendment or successor statute thereto) claiming that any Novacea
Background Patents covering Compound, Formulation or Licensed Product are invalid or unenforceable, or that infringement will not arise from the Manufacture, use or sale of a product by a Third Party. 
 12.10 Listing of Patents. Schering shall have the sole right to determine which of the Novacea Background Patents, if any, shall be listed
for inclusion in the Approved Drug Products with Therapeutic Equivalence Evaluations pursuant to 21 U.S.C. Section 355, or any successor law in the United States, together with any comparable laws or regulations in any other country in the
Territory. 
 ARTICLE 13 
 REPRESENTATIONS, WARRANTIES, AND COVENANTS 
 13.1 Mutual Representations and Warranties. Each Party hereby
represents and warrants to the other Party as of the Execution Date: 
 (a) Such Party is a corporation or entity duly
organized and validly existing under the laws of the state or other jurisdiction of its incorporation or formation; 
 (b) The execution, delivery and performance of this Agreement by such Party has been duly authorized by all requisite corporate action; 
 (c) Such Party has the corporate power and authority to execute and deliver this Agreement and the performance of such Party’s obligations hereunder do not conflict with or violate such Party’s
corporate charter and bylaws or any requirement of applicable laws or regulations and to perform its obligations hereunder, and such performance does not conflict with or constitute a breach of any agreement of such Party with a Third Party; and

 (d) Such Party has the right to grant the rights and licenses described in this Agreement. 
 13.2 Knowledge of Pending or Threatened Litigation. Each Party represents and warrants to the other Party that as of the Execution Date
there is no claim, investigation, suit, action or proceeding pending against it and of which it has received written notice or, to the knowledge of such Party, threatened against it before or by any Governmental Authority or arbitrator that,
individually or in the aggregate, could reasonably be expected to materially impair the ability of such Party to perform any obligation under this Agreement. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 13.3 Additional Representations and Warranties of Novacea. Novacea further represents and
warrants to Schering, as of the Execution Date, as follows: 
 (a) Novacea is the exclusive owner of the Patents listed
on Schedule 13.3(a), all of which are owned by Novacea free and clear of any liens, charges, claims and encumbrances, and no other person, corporate or other private entity, or governmental or university entity or subdivision thereof has any
claim of ownership or right to obtain compensation with respect to such Patents. 
 (b) Novacea is the exclusive
licensee of the Patents listed on Schedule 13.3(b), all of which, to Novacea’s knowledge, are licensed to Novacea free and clear of any liens, charges, claims and encumbrances, and, to Novacea’s knowledge, no corporate or private
entity has any claim of ownership or right to obtain compensation with respect to such Patents. 
 (c) To the knowledge
of Novacea, there are no Patents or Know-How owned or licensed by Novacea or its Affiliates that are necessary or useful for the Development, Manufacture and Commercialization of Licensed Product in the Field in the Territory that are not Controlled
by Novacea or otherwise outside of the scope of the licenses granted to Schering pursuant to this Agreement. 
 (d) To
the knowledge of Novacea, the conception, development and reduction to practice of the Novacea Background Patents and Novacea Background Know-How has not constituted or involved the misappropriation of trade secrets or other proprietary rights of
any Third Party. 
 (e) Except as previously disclosed by Novacea and discussed by the Parties, to the knowledge of
Novacea, the Manufacture or use of Compound and/or the Formulation in the Field, the importation or exportation of the Compound and/or Formulation in the Territory, and the Manufacture, use, importation and sale of the Licensed Product in the Field
in the Territory, do not infringe valid claims of any issued patents or other intellectual property rights of any Third Party. 
 (f) No claim has been made by any Third Party against Novacea or its Affiliates in writing asserting the invalidity, misuse, unregisterability, unenforceability or non-infringement of any of the Novacea Background Patents owned or
Controlled by Novacea or challenging Novacea’s or its Affiliates’ rights to use or ownership of any of the Novacea Background Patents or making any adverse claim of ownership thereof. To the extent Novacea has filed and prosecuted the
Novacea Background Patents, Novacea has materially complied with all applicable laws, rules and regulations during the course of its filing and prosecution of the Novacea Background Patents in the Territory, including without limitation all rules of
the United States Patent and Trademark Office (“USPTO”) and any regulations applicable to the filing and prosecution of Patent Rights before the USPTO and, to the extent a Third Party has filed and prosecuted the Novacea Background
Patents, to Novacea’s knowledge, such Third Party has materially complied with all applicable laws, rules and regulations during the course of 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 47 

 
its filing and prosecution of the Novacea Background Patents in the Territory, including without limitation all rules of the USPTO and any regulations
applicable to the filing and prosecution of Patent Rights before the USPTO. 
 (g) Novacea has disclosed to Schering
all material information known to Novacea or its Affiliates and/or in Novacea’s or its Affiliates’ Control with respect to the safety or efficacy of the Compound, Formulation or Licensed Product in the Field, and any human risk factors
related thereto, as well as all pre-clinical and clinical data related to Compound, Formulation or Licensed Product (including without limitation all toxicology and carcinogenicity data), and no such information and data has been falsified as to
which Novacea is aware or after a reasonable investigation should have been aware. 
 (h) Except as otherwise disclosed
to Schering, it is the sole and exclusive owner or exclusive licensee of the entire right, title and interest in and to each of the Trademarks and all of the Novacea Background Know-How free and clear of any liens, charges, claims and encumbrances
and has the right to grant rights therein to Schering in the Territory. 
 (i) To Novacea’s knowledge, there are
no oppositions or interferences concerning the (i) Novacea Background Patents pending before the USPTO or a foreign counterpart in any country where Novacea Background Patents have issued or are pending, or (ii) Trademarks that have been
filed in the principal register before the USPTO, or with a state Governmental Authority. 
 (j) It owns or controls no
other intellectual property rights other than the Novacea IP that, to its knowledge, would be necessary or useful for Schering to exercise its rights and to perform as contemplated herein. 
 (k) There is nothing in any Third Party agreement Novacea has entered into as of the Effective Date which in any way, will
adversely materially limit Novacea’s ability to perform all of its obligations hereunder, and that it will not enter into any agreement after the Effective Date under which Novacea would incur any such limitations. 
 (l) It has not omitted to furnish Schering with any information concerning Licensed Product owned by Novacea or under
Novacea’s control requested by Schering, nor intentionally concealed from Schering, any information under its control concerning Licensed Product or the transactions contemplated by this Agreement, which would be material to Schering’s
decision to enter into this Agreement and to undertake the commitments and obligations set forth herein. 
 (m) Prior
to the Execution Date, (i) Novacea has paid all maintenance fees and annual payments for Trademarks that have issued as of the Execution Date, and (ii) Novacea has paid all maintenance fees and annual payments for which it is responsible
associated with the Novacea Background Patents. To Novacea’s knowledge, all maintenance fees and annual 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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payments associated with the Novacea Background Patents for which a Third Party was responsible have been paid. 
 (n) To Novacea’s knowledge, all clinical studies related to the Licensed Product that have been conducted on behalf of Novacea
or any of its Affiliates prior to the Execution Date have been performed in accordance with Good Clinical Practice and all ICH guidelines in all material respects. 
 (o) All clinical studies related to the Licensed Product that have been conducted by Novacea or any of its Affiliates prior to the
Execution Date have been performed in accordance with Good Clinical Practice and all ICH guidelines in all material respects. 
 (p) To the knowledge of Novacea, all files, documentation, records and information provided to Schering pursuant to Articles 6 and 9 and Sections 2.5 and 5.5 are true, accurate and complete in all material respects. 
 (q) Novacea has not granted to any Third Party any rights or licenses with respect to the Compound, Formulation, Licensed Product,
or Novacea IP, which rights or licenses would be inconsistent with the rights and licenses granted to Schering hereunder. 
 (r) To the knowledge of Novacea, Novacea and its Affiliates are in material compliance with, and have not committed or permitted any actions or omissions which would cause the incurable breach of, any agreements between Novacea (or
its Affiliates) and any Third Parties which provide for the grant to Novacea or such Affiliates of any licenses or other rights with respect to the Development, Manufacture, use, distribution or sale of Compound, Formulation or Licensed Products in
the Field in the Territory. 
 (s) Novacea has satisfied all of its or its Affiliates’ obligations, if any, to
obtain any approvals or consents, and satisfied any other pre-conditions, necessary for it to enter into and perform all of its obligations under this Agreement. 
 (t) All clinical studies related to the Licensed Product started prior to the Effective Date are clinically complete and there are
no ongoing clinical studies related to the Licensed Product, except as set forth on Schedule 13.3(t). 
 13.4 Covenants by Novacea.

 (a) Third Party Agreements. During the term of this Agreement Novacea will use, and will cause its
Affiliates to use Commercially Reasonable Efforts not to diminish the rights under Novacea IP that are granted to Schering under this Agreement. Such efforts will include without limitation not committing or permitting any actions or omissions which
would cause a breach of any agreements between Novacea (or its Affiliates) and any Third Parties which provide for the grant to Novacea or such Affiliates of any licenses or other rights with respect to the Development, Manufacture, use,
distribution or sale of Compound, Formulation or 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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Licensed Products in the Field in the Territory, which breach permits any such Third Party to terminate its agreement with Novacea (or its Affiliates), and
promptly notifying Schering in writing of any such alleged breach by Novacea or Schering (as a sublicensee) under such agreements. Any such notice shall clearly identify the nature of the alleged breach and the steps Novacea is undertaking to cure
the breach. 
 (b) Novacea further agrees that during the term of this Agreement it shall not, without Schering’s
consent, terminate the OHSU License Agreement pursuant to Section 13.03 thereof or the University of Pittsburgh License Agreement pursuant to Section 10.2 thereof. 
 (c) As of the Effective Date, Novacea shall not file, or cause to be filed, any Patents related to the Compound, the Formulation,
the use of the Compound or the Formulation, without the prior written consent of Schering. 
 (d) As of the Effective
Date, Novacea shall promptly notify Schering of any potential Patent filings related to the Compound, the Formulation, the use of the Compound or the Formulation, of which it becomes aware arising out of any agreements with Third Parties.

 13.5 Disclaimer of Warranty. Except as expressly set forth in Sections 13.3 and 13.4, neither Party has made, and nothing in
this Agreement shall be construed as, a warranty or representation (i) that any Licensed Product made, used, sold or otherwise disposed of under the Licenses or the rights granted to Schering under Section 2.1 is or will be free from
infringement of patents, copyrights, trademarks, industrial design or other intellectual property rights of any Third Party, or (ii) regarding the effectiveness, value, prospects for success (whether financial, regulatory or otherwise), safety,
non-toxicity, patentability, or non-infringement of any patent technology, Licensed Product or any information or results provided by either Party pursuant to this Agreement. Each Party explicitly accepts all of the same as experimental and for
Development purposes, and without any express or implied warranty from the other Party. Except as expressly set forth in this Agreement, each Party expressly disclaims, waives, releases, and renounces any representation or warranty of any kind,
express or implied either in fact or by operation of law, by statute or otherwise, whether written or oral, or arising from course of performance, course of dealing or usage of trade, including, without limitation, any representation or warranty
with respect to non-infringement, value, adequacy, freedom from fault, quality, efficiency, suitability, characteristics or usefulness, or merchantability or fitness for a particular purpose. 
 13.6 Limitation of Liability. NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INDIRECT, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT, EACH PARTY’S PERFORMANCE OR LACK OF PERFORMANCE HEREUNDER, OR ANY LICENSE GRANTED HEREUNDER, EXCEPT FOR DAMAGES ARISING FROM A BREACH OF SECTION 13.1. THE FOREGOING SHALL NOT
LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS HEREUNDER WITH RESPECT TO THIRD PARTY CLAIMS. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 13.7 Update. From the Execution Date until the Effective Date of this Agreement, each Party
will give the other Party prompt written notice upon becoming aware of any development, event or circumstance that could reasonably be expected to result in a breach of or inaccuracy in any of the notifying Party’s representations and
warranties in this Article 13. On the Effective Date, Novacea shall confirm that the Schedules provided hereunder as of the Execution Date have not changed or deliver to Schering updated Schedules reflecting any exceptions to the representations and
warranties made by Novacea as of the Effective Date. 
 ARTICLE 14 
 CONFIDENTIALITY 
 14.1 Confidentiality. The provisions of this
Article 14 supersede and replace the obligations of the Parties pursuant to the Amended and Restated Mutual Non-Disclosure Agreement dated [*] (the “Existing CDA”), provided, however, that the Existing CDA will remain
in full force and effect solely with respect to information disclosed thereunder related to [*]. During and for a period of the later of (i) [*] years after the expiration of this Agreement pursuant to Section 16.1 and (ii) [*] years
after the early termination of this Agreement, including under Sections 16.2, 16,3, and 16.4, each Party shall (i) maintain in confidence all Confidential Information of the other Party; (ii) not use such Confidential Information for any
purpose except as permitted by this Agreement; and (iii) not disclose such Confidential Information to anyone other than those of its Affiliates, sublicensees, prospective sublicensees, employees, consultants, agents or subcontractors
(collectively, “Agents”) who are bound by written obligations of nondisclosure and non-use no less stringent than those set forth in this Article 14 and to whom such disclosure is necessary in connection with such Party’s
activities as contemplated in this Agreement. Each Party shall ensure that such Party’s Agents are informed of the confidential nature of the Confidential Information and comply with these obligations. Each Party shall be responsible for any
breach of these obligations by such Party’s Agents. Novacea shall notify Schering promptly on discovery of any unauthorized use or disclosure of Schering’s trade secrets or proprietary information that is made available to Novacea or
Novacea’s Agents pursuant to this Agreement. 
 14.2 Exceptions. The obligations of confidentiality, non-disclosure, and
non-use set forth in Section 14.1 shall not apply to the extent the receiving Party (the “Recipient”) can demonstrate that the disclosed information (i) was in the public domain at the time of disclosure to the Recipient
by the other Party, or thereafter entered the public domain, in each case other than as a result of actions of the Recipient, its Affiliates or Agents, in breach of this Agreement; (ii) was rightfully known by the Recipient or its Affiliates
(as properly demonstrated by the Recipient) prior to the date of disclosure to the Recipient by the other Party; (iii) was independently developed by the Recipient or its Affiliates without the aid, application or use of Confidential
Information of the other Party (as properly demonstrated by the Recipient); or (iv) was received by the Recipient or its Affiliates on an unrestricted basis from a Third Party rightfully in possession of such information and not under a duty of
confidentiality to the other Party. Notwithstanding any other provision of this Agreement, Recipient’s disclosure of 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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Confidential Information shall not be prohibited if such disclosure: (a) is in response to a valid order of a court or other Governmental Authority;
provided, however, that Recipient provides the other Party with prompt prior written notice of such disclosure in order to permit the other Party to seek a protective order or other confidential treatment of such Confidential Information; or
(b) is required to be disclosed by applicable law or regulation; provided, however, that Recipient limit such disclosure to only the Confidential Information so required to be disclosed. 
 14.3 Project Data. The Project Data shall be owned by Schering. For avoidance of doubt, the Project Data shall be considered the
Confidential Information of Schering for purposes of this Agreement and shall be treated by Novacea as such under the terms of this Article 14. 
 14.4 Publications. 
 (a) Novacea shall have no right to publish or otherwise publicly disclose any
(i) Project Data or (ii) other data (not previously published or otherwise publicly disclosed) generated prior to the Effective Date that relates to the Licensed Product, without the prior written consent of Schering, which may be withheld
for any reason, except that, with respect to Project Data or other data that has been previously published or otherwise publicly disclosed, consent will not be unreasonably withheld. Schering shall decide upon any proposed publication of the Project
Data (and, for the avoidance of doubt, Schering may disclose clinical trial data and other information related to the Licensed Product as it determines, and shall provide notice and a description of the content of such disclosure to Novacea at least
[*] hours in advance of any such disclosure). 
 (b) To the extent that any proposed publication or public presentation
(including without limitation any abstracts or manuscripts for publication, slides and texts of oral or other public presentations, and texts of any transmission through any electronic media (e.g., any computer access system such as the Internet,
World Wide Web etc.) collectively or individually a “Public Presentation”) to be made by Novacea or its Affiliates may contain Confidential Information of Schering, Novacea shall provide to Schering an advance copy of any such
proposed publication or presentation prior to its submission or dissemination to any Third Party. Schering shall have a period of [*] days to review and recommend any changes it reasonably believes are necessary to protect its Confidential
Information. Novacea shall remove any Confidential Information of Schering therefrom; other changes recommended by Schering shall not be unreasonably refused. In addition, if such publication could, in Schering’s reasonable judgment, be
expected to have a material adverse effect on the commercial value of Schering’s Confidential Information or on the Licensed Product, then Schering shall have the right to delay or prevent such publication as proposed by providing written
notice to that effect during such [*] day period. In the case where such publication may disclose any Program IP, any such delay shall be sufficiently long so as to permit the timely preparation and filing of a patent application(s) (or
application(s) for other appropriate forms of protection) on the Confidential Information involved. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 14.5 No Disclosure of Agreement Terms. 
 (a) In connection with the execution of this Agreement, the Parties shall either (i) issue the joint press release set forth
in Schedule 14.5, and/or (ii) issue mutually agreed upon individual press releases. Except as otherwise required by law, Novacea shall not issue any additional press release or make any other public disclosure concerning this Agreement
or the subject matter hereof (which shall include, without limitation, the programs covered hereunder) without the prior written consent of Schering. 
 (b) The foregoing provisions of this Section 14.5 notwithstanding, Novacea shall have the right to disclose non-public information related to the terms and conditions of this Agreement solely if and to the
extent necessary (as reasonably determined by its legal counsel) to be disclosed (i) in the context of a Change of Control, to Third Parties and their counsel with whom Novacea is negotiating a Change of Control transaction or to accredited
investors, qualified institutional buyers, and qualified purchasers and their counsel as such terms are defined in the Securities Act of 1933 and the Exchange Act, each of whom is under an obligation of confidentiality no less restrictive than those
set forth in this Agreement and (ii) in order to comply with the rules and regulations of the United States Securities and Exchange Commission (or another similar securities exchange authority in Territory). In the event of (ii) above,
Novacea shall notify Schering in advance of any such disclosure, shall provide Schering with a reasonable opportunity to review and comment on the form and content of any such disclosure, and shall use Commercially Reasonable Efforts to obtain
confidential treatment to the fullest extent available. 
 (c) Further, Schering agrees that Novacea has the right to
issue a press release with respect to the occurrence of the following events under this Agreement with respect to the Licensed Product, provided that Schering is afforded a reasonable opportunity (but not less than [*] Business Days) to review and
provide input with respect to the content and timing of such press release and that Novacea considers in good faith and uses Commercially Reasonable Efforts to incorporate in such press release any input provided by Schering: [*] and/or [*] of
any [*]; [*] of a [*] in a [*] or in [*] and [*]. In addition and notwithstanding anything to the contrary herein, (a) if the relevant text of a proposed press release has already previously been reviewed and approved by Schering and the text
remains accurate and complete in all material respects, then such text may be disclosed or republished in such proposed press release provided that Novacea provides notice to Schering of such press release at least [*] Business Days prior to the
issuance of such press release and (b) if the relevant text of a proposed public announcement such as a corporate presentation or comments to analysts or investors has already previously been reviewed and approved by Schering (whether in the
form of an approved press release or prior approved presentation materials, Q&A script or the like) and the text remains accurate and complete in all material respects, then such text may be included in such proposed public announcement (but not
a press release) without resubmission and review by Schering. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 ARTICLE 15 
 INDEMNIFICATION 
 15.1 Indemnification by Novacea. Unless otherwise provided herein,
Novacea agrees to indemnify, hold harmless, and defend Schering, its Affiliates, and their directors, officers, employees, and agents (the “Schering Indemnitees”) from and against any and all Third Party suits, claims, actions,
demands, liabilities, expenses and/or losses (including without limitation attorneys’ fees, court costs, witness fees, damages, judgments, fines and amounts paid in settlement) (“Losses”) to the extent that such Losses arise
out of (a) Novacea’s breach of this Agreement, (b) the negligence or willful misconduct of Novacea or its Affiliates, or (c) for personal injury or death caused by or resulting from the Development, Manufacture, distribution,
testing, use or sale of Compound, Formulation or Licensed Product by or on behalf of Novacea or its Affiliates, licensors or licensees prior to the Effective Date, including, without limitation, any Losses arising out of the Upstream License
Agreements. Notwithstanding the foregoing, Novacea’s obligation to indemnify, hold harmless, and defend the Schering Indemnitees shall not apply to the extent any Losses arise out of the negligence or willful misconduct of Schering or its
Affiliates. 
 15.2 Indemnification by Schering. Unless otherwise provided herein, Schering shall indemnify, hold harmless, and
defend Novacea, its Affiliates, and their directors, officers, employees, and agents (the “Novacea Indemnitees”) from and against any and all Losses, to the extent that such Losses arise out of (a) Schering’s breach of
this Agreement, (b) the negligence or willful misconduct of Schering or its Affiliates, or (c) the Development, Manufacture, distribution, use, testing, promotion, marketing, or sale or other disposition of the Compound, Formulation or
Licensed Product by or on behalf of Schering or its Affiliates pursuant to this Agreement after the Effective Date. Notwithstanding the foregoing, Schering’s obligation to indemnify, hold harmless, and defend the Novacea Indemnitees shall not
apply to the extent any Losses arise out of the negligence or willful misconduct of Novacea or its Affiliates. 
 15.3 Indemnification
Procedure. 
 (a) The Party entitled to indemnification under this Article 15 (an “Indemnified
Party”) shall notify the Party potentially responsible for such indemnification (the “Indemnifying Party”) within ten (10) Business Days of becoming aware of any claim or claims asserted or threatened against the
Indemnified Party which could give rise to a right of indemnification under this Agreement; provided, however, that the failure to give such notice or any delay in such notice shall not relieve the Indemnifying Party of its indemnity
obligation hereunder except to the extent that such failure materially prejudices its rights hereunder. 
 (b) If the
Indemnifying Party has acknowledged in writing to the Indemnified Party the Indemnifying Party’s responsibility for defending such claim, the Indemnifying Party shall have the right to defend, at its sole cost and expense, such claim by all
appropriate proceedings, which proceedings shall be prosecuted diligently by the Indemnifying Party to a final conclusion or settled at the discretion of the Indemnifying Party; provided, however, that 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 54 

 
the Indemnifying Party may not enter into any compromise or settlement unless such compromise or settlement includes as an unconditional term thereof, the
giving by each claimant or plaintiff to the Indemnified Party of a release from all liability in respect of such claim. The foregoing notwithstanding, the Indemnifying Party may not enter into any compromise or settlement of such claim without the
prior written consent of the Indemnified Party if such compromise or settlement would (i) impose an injunction or other similar restriction of the Indemnified Party, (ii) impose any financial obligations on the Indemnified Party, and/or
(iii) would constitute an admission of guilt or liability by or on behalf of the Indemnified Party. 
 (c) The
Indemnified Party may participate in, but not control, any defense or settlement of any claim controlled by the Indemnifying Party pursuant to this Section 15.3 and shall bear its own costs and expenses with respect to such participation;
provided, however, that the Indemnifying Party shall bear such costs and expenses if counsel for the Indemnifying Party shall have reasonably determined that such counsel may not properly represent both the Indemnifying Party and the
Indemnified Party. 
 (d) The foregoing notwithstanding, the Indemnified Party shall have the right to waive its rights
to indemnity under this Agreement and control the defense or settlement thereof to the extent such claim involves an issue or matter that it believe may materially adversely affect the business and/or assets of such Indemnified Party; provided,
however, that in no event shall any such waiver be construed as a waiver of any indemnification rights which such Party may have at law or in equity. 
 15.4 Insurance. Each Party represents and warrants to the other Party that it has in place and during the term of this Agreement shall maintain insurance and/or a program of self-insurance sufficient to
cover its liabilities under this Agreement. 
 ARTICLE 16 
 TERM AND TERMINATION 
 16.1 Term.  
 (a) The term of this Agreement shall begin on the Effective Date and, unless earlier terminated in accordance with the terms of
this Article 16, will expire on the date on which the Royalty Term expires for all Licensed Products in all countries of the Territory (the “Term”). 
 (b) To the extent required by the HSR Act, each Party will (i) file or cause to be filed, as promptly as practicable after the
Execution Date (and in any event within five (5) business days after such Execution Date), with the United States Federal Trade Commission (“FTC”) and the United States Department of Justice (“DOJ”), all reports and other
documents required to be filed by such Party under the HSR Act concerning the transactions contemplated hereby and (ii) promptly comply with or cause to be complied with any requests by the FTC or DOJ for additional information concerning such
transactions, in each case so that the waiting 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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period applicable to this Agreement and the transactions contemplated hereby under the HSR Act will expire as soon as practicable after the date hereof. Each
Party agrees to request, and to cooperate with the other Party in requesting, early termination of any applicable waiting period under the HSR Act. Each Party shall be responsible for its own costs, expenses, and filing fees in connection with the
filings. In addition, Novacea shall use good faith reasonable efforts to assist Schering in eliminating any concern on the part of any court or government authority regarding the legality of the proposed transaction, including, if required by
federal or state antitrust authorities, promptly taking all reasonable steps necessary to secure government antitrust clearance. Novacea shall cooperate in good faith at its own cost with any government investigation and promptly produce documents
and information demanded by a second request for documents and of witnesses if requested. 
 16.2 Termination for Breach. 

(a) A Party (the “non-breaching Party”) shall have the right, in addition to any other rights and remedies, to
terminate this Agreement: (i) on a product-by-product and country-by-country basis (if such breach is limited to a Licensed Product or country) in the event the other Party (the “breaching Party”) is in breach of any of its material
obligations under this Agreement with respect to such Licensed Product or country, or (ii) in its entirety in the event the breaching Party is in breach of any of its material obligations under this Agreement with respect to a Major Market
country. The non-breaching Party shall first provide written notice to the breaching Party, which notice shall identify with particularity the alleged breach. The breaching Party shall have a period of ninety (90) days (thirty (30) days in
the case of an undisputed non-payment of money) after such written notice is provided to cure such breach. If such breach is not cured within such period, this Agreement shall terminate in its entirety or on a product-by-product and
country-by-country basis immediately at the end of such period on written notice of such termination from the non-breaching Party, or where a breach other than for non-payment is not capable of being cured in ninety (90) days, if the breaching
Party fails to (1) initiate actions during such ninety (90) day period that are reasonably anticipated to cure the default within a reasonable period (not to exceed one hundred eighty (180) days) and (2) thereafter use continuing
diligent efforts to cure the default, then the non-breaching Party may immediately terminate this Agreement in its entirety or on a product-by-product and country-by-country basis at any time by providing written notice of such termination.
Termination under this Section 16.2 shall not relieve any Party of any obligation accrued prior to (or otherwise existing upon) the date of termination nor relieve the breaching Party from liability for breach of this Agreement. 
 (b) Termination under this Section 16.2 for whatever reason will be automatically stayed for the duration of any dispute
resolution proceedings initiated under Article 17 if the matter in dispute is the basis for the proposed termination. 
 16.3
Termination for Insolvency. A Party shall have the right to terminate this Agreement if, at any time, (a) the other Party shall file in any court or agency pursuant to any statute or regulation of any state or country, a petition in
bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of the Party 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 56 

 
or of its assets, or (b) if the other Party proposes a written agreement of composition or extension of its debts, or (c) if the other Party shall
be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or (d) if the other Party shall propose or be a party to any
dissolution or liquidation, or (e) if the other Party shall make an assignment for the benefit of creditors. 
 16.4 Termination by
Schering. 
 (a) Termination At Will. Schering shall
have the right to terminate this Agreement in its entirety or on a product-by-product and country-by-country basis at any time after the second (2nd) anniversary of the Effective Date on [*] days prior written notice to Novacea. 
 (b) Termination For Technical Failure. Schering shall have the right to terminate this Agreement in its entirety effective upon written notice to Novacea in the event that Schering reasonably determines
that there has been a Technical Failure, which, for purposes of this Agreement shall mean: 
 (i) there is a
significant issue related to the safety or efficacy of the Licensed Product in humans; or 
 (ii) further Development
and Commercialization of the Licensed Product in the U.S. and/or Europe is not commercially reasonable due to Manufacturing issues or other technical problems related to the Licensed Product. 
 16.5 Effects of Expiration. Upon and at all times after the expiration of this Agreement pursuant to Section 16.1(a), Schering will retain a
worldwide, exclusive, royalty-free, irrevocable right and license, with the right to sublicense and authorize the grant of further sublicenses, under the Novacea IP to Develop, make, have made, use, and Commercialize the Licensed Product in the
Territory in the Field. 
 16.6 Effects of Termination by Novacea under Sections 16.2 and 16.3 and by Schering under
Section 16.4(a). Upon termination of this Agreement in its entirety or on a product-by-product and country-by-country basis by Novacea pursuant to Sections 16.2 (Schering breach) and 16.3 (Schering insolvency) or by Schering pursuant to
Section 16.4(a) (Schering at-will), the following provisions shall apply: 
 (a) The licenses granted by
Novacea to Schering under Section 2.1 shall terminate; 
 (b) Novacea shall have a worldwide, royalty-free,
exclusive and perpetual license (which shall include the right to grant sublicenses) from Schering under any Schering IP existing at the time of termination and which is incorporated in a Licensed Product that is then being Developed or
Commercialized by Schering. Novacea’s license under this Section 16.6(b) 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 57 

 
shall be limited solely to the right to Develop, make, have made, use, and Commercialize such Licensed Product in the Field in the Territory; 
 (c) Schering shall reasonably cooperate with Novacea in order to enable Novacea to assume the Development and/or Commercialization
of all Licensed Products then being Commercialized or in clinical Development by Schering. Such cooperation and assistance shall be provided in a timely manner (having regard to the nature of the cooperation or assistance requested) and shall
include the following: 
 (i) Schering shall transfer to Novacea (or its nominee) all INDs, Regulatory Approvals and
Regulatory Applications for Regulatory Approvals made or obtained by Schering or its Affiliates or any of its Sublicensees to the extent relating to Licensed Product then being Commercialized or in Development. 
 (ii) Schering shall assign to Novacea all of its rights in the Trademark and any Other Marks and shall transfer to Novacea all of
its rights in any domain names containing such Trademark and Other Marks, in each case only to the extent that such Trademark and Other Marks have actually been utilized previously by Schering in connection with the Commercialization of Licensed
Product in the Field. Any assignment or transfer to Novacea pursuant to this Section 16.6(c)(ii) shall be at no cost to Novacea. 
 (iii) Schering shall transfer to Novacea (or its nominee), to the extent not previously provided, a copy of all Project Data in its possession or under its control relating to any Licensed Product then being
Commercialized or in clinical Development by Schering and reasonably necessary or useful for its continued Development and/or Commercialization, including without limitation all information contained in Schering’s regulatory and/or safety
databases, all in the format then currently maintained by Schering; provided, however, nothing in this Section 16.6(c)(iii) shall be deemed to expand the scope of the license granted to Novacea pursuant to Section 16.6(b).

 (iv) Upon the request of Novacea, Schering shall use Commercially Reasonable Efforts to assign to Novacea any
sublicenses previously granted by Schering related to Licensed Product. 
 (v) Upon the request of Novacea, Schering,
its Affiliates and its Sublicensees shall use Commercially Reasonable Efforts to complete any clinical studies related to Licensed Product in the Field that (x) are being conducted under Schering’s IND for Licensed Product and are ongoing
as of the date this Agreement is terminated, and (y) for which it is not practical to transfer responsibility for conducting such studies to Novacea; provided, however, that Novacea agrees to reimburse Schering for all Development
costs incurred by Schering after termination in completing such studies. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 (vi) Schering shall transfer to Novacea, at a price of [*] percent [*] of
Schering’s fully allocated Manufacturing cost for the Licensed Product, all quantities of Licensed Product in the possession of Schering or its Affiliates (including, without limitation, clinical trial supplies and Licensed Product intended for
commercial sale). 
 (vii) Schering shall supply Novacea with Licensed Product, at a price of [*] percent [*] of
Schering’s fully allocated Manufacturing cost for the Licensed Product, for a reasonable period of time not to exceed [*] years. 
 The Parties shall
use Commercially Reasonable Efforts to complete the transition of the Development and Commercialization of the Licensed Product from Schering to Novacea pursuant to this Section 16.6 as soon as is reasonably possible. 
 (d) In addition, solely in the event of termination by Schering pursuant to Section 16.4(a) (Schering at-will), Novacea shall
pay Schering a royalty on Net Sales of the terminated Licensed Product(s) in each relevant country in the Territory, to be determined as follows: 
 (i) in the event that the effective date of termination occurs after [*] and prior to [*] Licensed Product in such country, [*]; or 
 (ii) in the event that the effective date of termination occurs after [*] Licensed Product in such country, [*]. 
 Such royalties shall be payable quarterly within sixty (60) days following the close of each calendar quarter. 
 (e) In the event of termination by Novacea pursuant to Sections 16.2 (breach), Novacea shall pay Schering a royalty on Net Sales of
the terminated Licensed Product(s) in each relevant country in the Territory, to be determined as follows: 
 (i) in
the event of termination for breach by Schering of the non-compete obligations set forth in Section 3.1, [*]; 
 (ii) in the event of termination for breach other than as set forth in Section 16.6(e)(i) and the effective date of termination occurs after [*] and prior to [*] Licensed Product in such country, [*]; or 
 (iii) in the event of termination for breach other than as set forth in Section 16.6(e)(i) and the effective date of
termination occurs after [*] Licensed Product in such country, [*]. 
 (f) In the event of termination by Novacea
pursuant to Section 16.3 (insolvency), [*] shall be payable by Novacea to Schering on Net Sales of the terminated Licensed Product(s) in each relevant country in the Territory. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 59 

 (g) Novacea shall provide written reports to Schering, consistent with
Section 11.1, that will accompany its payments to Schering pursuant to this Section 16.6. 
 (h) In the
event of a termination that relates solely to a particular Licensed Product or a specific country, then the provisions of this Section 16.6 shall apply mutatis mutandis solely with respect to the terminated markets or terminated Licensed
Product and the Non-Compete set forth in Article 3.1 shall remain in full force and effect; provided, however, that if the termination is pursuant to Section 16.2 (breach) and relates solely to a specific country, the non-compete will not apply
to the non-breaching Party in such country. 
 16.7 Effects of Termination by Schering under Sections 16.2 and 16.3. Upon
termination of this Agreement by Schering pursuant to Sections 16.2 (Novacea breach) or 16.3 (Novacea insolvency), the following provisions shall apply: 
 (a) Schering shall have the sole and exclusive right to Develop and Commercialize each of the terminated Licensed Products or terminated country(ies) throughout the Territory and the licenses granted by Novacea
to Schering under Section 2.1 shall be exclusive, worldwide, irrevocable, perpetual, fully paid-up licenses (which shall include the right to grant sublicenses) with respect to the terminated Licensed Product or terminated country(ies)
throughout the Territory. 
 (b) Schering shall remain liable to Novacea for any sums properly payable by Schering to
Novacea in accordance with the terms of this Agreement with respect to the terminated Licensed Product or terminated countr(ies) prior to notice of such termination and in accordance with the terms of this Agreement. 
 (c) Novacea shall receive a royalty on Net Sales of the terminated Licensed Product or in the terminated country(ies) after notice
of such termination, as set forth below: 
 (i) in the event of termination for breach by Novacea of the non-compete
obligations set forth in Section 3.1, [*]; 
 (ii) in the event of termination for “Catastrophic Breach”
(as defined below) by Novacea, royalties equal to [*] shall apply; and 
 (iii) in the event of termination for
insolvency, or termination for breach by Novacea other than as described in (i) or (ii) above, [*]. 
 For purposes of Section 16.7(c)(ii),
the term “Catastrophic Breach” shall mean a breach by Novacea of one or more of its material obligations under this Agreement that results or is reasonably likely to result in imminent substantial harm to the commercial value of the
Licensed Product in one or more Major Markets. For clarity, “substantial harm to the commercial value of the Licensed Product” shall mean the [*] of the [*] an [*] or [*] which [*] and [*] the [*] from [*] for the [*] by [*] in [*],
including [*] having [*] the [*] of [*] on [*]. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 (d) In the event of a termination that relates solely to a particular Licensed
Product or a specific country, then the provisions of this Section 16.7 shall apply mutatis mutandis solely with respect to the terminated markets or terminated Licensed Product and the Non-Compete set forth in Article 3.1 shall remain in full
force and effect; provided, however, that if the termination is pursuant to Section 16.2 (breach) and relates solely to a specific country, the non-compete will not apply to the non-breaching Party in such country. 
 16.8 Effects of Termination by Schering under Section 16.4(b). If Schering terminates this Agreement pursuant to Section 16.4(b)
(Termination for Technical Failure) then (i) the licenses and other rights granted by Novacea to Schering pursuant to this Agreement shall terminate, (ii) Schering shall conduct an orderly wind-down of all then on-going Development
activities (including without limitation those being performed by Schering’s Affiliates or Third Party contractors) with respect to the Licensed Product, and (iii) Schering shall promptly make all payments due and owing Novacea and to
Third Parties with respect to the Licensed Product. 
 16.9 Competing Product Acquisition. If a Party (or one of its Affiliates
or its successor in interest) acquires (such Party, Affiliate or successor in interest, as applicable, the “Acquiring Party”) a Competing Product from a Third Party or undergoes a Change of Control which results in such Party being
controlled by an entity with a Competing Product that is already being commercialized in one or more country in the Territory (“Acquired Competing Product”), then: 
 (a) to the extent Novacea is the Acquiring Party, it shall deliver to Schering as soon as possible (and in any event within [*]
after Novacea acquires such Acquired Competing Product or undergoes such Change of Control) a written notification of Novacea’s election, in its sole discretion, either to divest or retain all of its rights, title and interest in and to such
Acquired Competing Product. If Novacea elects to retain such Acquired Competing Product, Schering shall have the right to deem the Agreement terminated under Section 16.2 and the effects in Section 16.7 shall apply. If Novacea (or its
successor in interest) provides notice of its intention to divest the Acquired Competing Product and fails to complete the divestiture of the Acquired Competing Product within [*] months after its acquisition thereof, then Novacea will be in
material breach of this Agreement as of the expiration of the [*] month following acquisition; 
 (b) to the extent
Schering is the Acquiring Party, it shall deliver to Novacea as soon as possible (and in any event within [*] after Schering acquires such Acquired Competing Product or undergoes such Change of Control) a written notification of Schering’s
election, in its sole discretion, either to divest or retain all of its rights, title and interest in and to such Acquired Competing Product or the Licensed Product. If Schering elects to retain both the Acquired Competing Product and the Licensed
Product, Novacea shall have the right to deem the Agreement terminated under Section 16.2 and the effects in Section 16.6 shall apply. If Schering (or its successor in interest) provides notice of its intention to divest either the
Acquired 

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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Competing Product or the Licensed Product and fails to complete the divestiture of such product within [*] months after its acquisition of the Acquired
Competing Product, then Schering will be in material breach of this Agreement as of the expiration of the [*] month following acquisition. 
 16.10 Survival; Accrued Rights. The rights and obligations of the Parties under the following provisions of this Agreement shall survive expiration or any termination of this Agreement as follows: 
 (a) Article 1 (Definitions), Article 13 (Representations, Warranties, and Covenants), Article 14 (Confidentiality), Article 15
(Indemnification), Article 17 (Dispute Resolutions; Governing Law), Article 18 (Miscellaneous); 
 (b) Section 2.1
(License Grant) and Article 12, but only to the extent such survival is provided for in Section 16.7(a) (Effects of Termination by Schering under Sections 16.2 and 16.3); 
 (c) Section 10.4 (Royalties), but only to the extent provided by Section 16.7(c)(ii)-(iii) (Effects of Termination
by Schering under Sections 16.2 and 16.3); 
 (d) Sections 10.5(b)(i), 10.5(b)(iv), 10.5(d) (Third Party License
Agreements), 9.3(a), 9.3(b) (Manufacturing), 10.6 (Compulsory License)), 11.1 (Schering Quarterly Royalty Payments and Reports), 11.3(b) (Accounting), 11.4 (Methods of Payment), 11.5 (Taxes), , but in all cases under this Section 16.10(d) only
to the extent Section 10.4 (Royalties) survives under Section 16.7(c)(ii)-(iii); and 
 (e) Section 2.5
(Section 365(n) of the Bankruptcy Code), 7.3(g) (Specific Provisions related to MSLs), Section 7.6 (Non-Solicitation), Section 10.5(b)(ii) (Upstream License Agreements), Section 11.6 (Late Payments), Section 12.1 (Ownership of
Background IP), Section 12.2 (Ownership of Program IP), Section 16.5 (Effects of Expiration), Section 16.6 (Effects of Termination by Novacea under Sections 16.2 and 16.3 and by Schering under Section 16.4(a)), Section 16.7
(Effects of Termination by Schering under Sections 16.2 and 16.3), Section 16.8 (Effects of Termination by Schering under Section 16.4(b)), Section 16.10 (Survival; Accrued Rights). 
 In any event, expiration or termination of this Agreement shall not relieve the Parties of any liability which accrued hereunder prior to the effective date of such
expiration or termination nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity with respect to any breach of this Agreement, nor prejudice either Party’s right to obtain performance of any
obligation. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
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 ARTICLE 17 
 DISPUTE RESOLUTIONS; GOVERNING LAW 
 17.1 Arbitration. If the Parties are unable
resolve a given dispute, either Party may have the given dispute settled by binding arbitration in the manner described below. 
 17.2
Arbitration Request. If a Party intends to begin an arbitration to resolve a dispute arising under this Agreement, such Party shall provide written notice (the “Arbitration Request”) to the other Party of such intention and
the issues for resolution. From the date of the Arbitration Request and until such time as the dispute has become finally settled, the running of the time periods as to which Party must cure a breach of this Agreement becomes suspended as to any
breach that is the subject matter of the dispute. 
 (a) Additional Issues. Within ten (10) Business Days
after the receipt of the Arbitration Request, the other Party may, by written notice, add additional issues for resolution. 
 (b) No Arbitration of Patent/Confidentiality Issues. Unless otherwise agreed by the Parties, disputes relating to patents and non-disclosure, non-use and maintenance of Confidential Information shall not be subject to
arbitration, and shall be submitted to a court of competent jurisdiction. 
 (c) Arbitration Procedure. The
Arbitration shall be held in the continental United States under the rules of the International Institute for Conflict Prevention and Resolution (“CPR”) then in effect. The arbitration shall be conducted by three
(3) arbitrators who are knowledgeable in the subject matter at issue in the dispute. One (1) arbitrator will be selected by Novacea, one (1) arbitrator will be selected by Schering, and the third arbitrator will be selected by mutual
agreement of the two (2) arbitrators selected by the Parties. The arbitrators may proceed to an award, notwithstanding the failure of either Party to participate in the proceedings. The arbitrators shall, within fifteen (15) days after the
conclusion of the arbitration hearing, issue a written award and statement of decision describing the essential findings and conclusions on which the award is based, including the calculation of any damages awarded. The arbitrators shall be
authorized to award compensatory damages, but shall not be authorized to award non-economic damages or punitive damages, or to reform, modify or materially change this Agreement or any other agreements contemplated hereunder. The arbitrators also
shall be authorized to grant any temporary, preliminary or permanent equitable remedy or relief the arbitrators deem just and equitable and within the scope of this Agreement, including, without limitation, an injunction or order for specific
performance. The award of the arbitrators shall be the sole and exclusive remedy of the Parties (except for those remedies set forth in this Agreement). Judgment on the award rendered by the arbitrators may be enforced in any court having competent
jurisdiction thereof, subject only to revocation on grounds of fraud or clear bias on the part of the arbitrators. Notwithstanding anything contained in this Section 17.2 to the contrary, each Party shall have the right to institute judicial
proceedings against the other Party or anyone acting by, through or under such other Party, in order to enforce the instituting Party’s rights hereunder through specific performance, injunction or similar equitable relief. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 63 

 (d) Costs; Satisfaction. Each Party shall bear its own attorneys’
fees, costs, and disbursements arising out of the arbitration, and shall pay an equal share of the fees and costs of the arbitrators; provided, however, that the arbitrators shall be authorized to determine whether a Party is the
prevailing Party, and if so, to award to that prevailing Party reimbursement for its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees and expenses, photocopy charges and travel expenses). Absent
the filing of an application to correct or vacate the arbitration award as permitted by applicable law, each Party shall fully perform and satisfy the arbitration award within fifteen (15) days of the service of the award. 
 17.3 Waiver. By agreeing to this binding arbitration provision, the Parties understand that they are waiving certain rights and protections
which may otherwise be available if a dispute between the Parties were determined by litigation in court, including, without limitation, the right to seek or obtain certain types of damages precluded by this provision, the right to a jury trial,
certain rights of appeal, and a right to invoke formal rules of procedure and evidence. 
 17.4 Choice of Law. The validity,
performance, construction, and effect of this Agreement shall be governed by the laws of the State of Delaware, without regard to conflicts of law principles that would provide for application of the law of another jurisdiction. 
 ARTICLE 18 
 MISCELLANEOUS

 18.1 Assignment. Either Party may assign this Agreement to any Affiliate of such Party without the prior written consent
of the other Party; provided, however, that such Party provides the other Party with written notice of such assignment and remains fully liable for the performance of such Party’s obligations hereunder by such Affiliate. Further, each
Party may assign this Agreement without the prior written consent of the other Party, to its successor in interest by way of a merger, acquisition, or sale of all or substantially all of its assets to which this Agreement relates (which shall be no
less than all such Party’s oncology business); provided, however, that such Party provides the other Party with written notice of such assignment; provided further, that if Novacea undergoes a Change of Control, then, upon written
notice by Schering, the provisions of Article 4, Sections 5.4 and 7.4 of this Agreement shall terminate immediately and Schering may elect to terminate all Novacea MSL support provided pursuant to Section 7.3. Any other assignment of this
Agreement by a Party requires the prior written consent of the other Party. Any assignment in violation of this Section 18.1 shall be null and void. This Agreement shall be binding on and shall inure to the benefit of the permitted successors
and assigns of the Parties hereto. 
 18.2 Force Majeure. If either Party shall be delayed, interrupted in or prevented from
the performance of any obligation hereunder by reason of force majeure including an act of God, fire, flood, earthquake, war (declared or undeclared), public disaster, act of terrorism, strike or 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 64 

 
labor differences, governmental enactment, rule or regulation, or any other cause beyond such Party’s control, such Party shall not be liable to the
other therefor; and the time for performance of such obligation shall be extended for a period equal to the duration of the force majeure which occasioned the delay, interruption or prevention. The Party invoking such force majeure rights of this
Section 18.2 must notify the other Party by courier or overnight dispatch (e.g., Federal Express) within a period of fifteen (15) days of both the first and last day of the force majeure unless the force majeure renders such notification
impossible in which case notification will be made as soon as possible. If the delay resulting from the force majeure exceeds six (6) months, both Parties shall consult together to find an appropriate solution. 
 18.3 Entire Agreement. This Agreement, together with the Stock Purchase Agreement, constitutes the entire agreement between the Parties
with respect to the subject matter herein and, effective on the Effective Date, supersedes all previous agreements between the Parties with respect to the subject matter herein, whether written or oral, including without limitation the Existing CDA
(except with respect to information disclosed thereunder relating to [*]). This Agreement shall not be changed or modified orally, but only by an instrument in writing signed by both Parties. 
 18.4 Severability. If any provision of this Agreement is declared invalid by a court of last resort or by any court or other governmental
body from the decision of which an appeal is not taken within the time provided by law, then and in such event, this Agreement will be deemed to have been terminated only as to the portion thereof that relates to the provision invalidated by that
decision and only in the relevant jurisdiction, but this Agreement, in all other respects and all other jurisdictions, will remain in force; provided, however, that if the provision so invalidated is essential to the Agreement as a
whole, then the Parties shall negotiate in good faith to amend the terms hereof as nearly as practical to carry out the original intent of the Parties, and, failing such amendment, either Party may submit the matter for resolution pursuant to
Article 17. 
 18.5 Notices. Any notice or report required or permitted to be given under this Agreement shall be in writing
and shall be mailed by recognized overnight courier and shall be effective upon confirmed receipt thereof or by certified or registered mail, or telexed or telecopied and confirmed by mailing, as follows and shall be effective five (5) days
after such mailing: 
  

			
	If to Novacea:	  	Novacea, Inc.
		  	601 Gateway Blvd., Ste. 800
		  	South San Francisco, CA 94080
		  	Attention: [*]
		  	Fax No: (650) 228-1088
		
	with a copy of notices only to:	  	Latham & Watkins LLP
		  	140 Scott Drive
		  	Menlo Park, California 94025
		  	Fax No: (650) 463-2600
		  	Attention: John E. Wehrli, Esq.

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 65 

			
	If to Schering:	  	Schering Corporation
		  	2000 Galloping Hill Road
		  	Kenilworth, NJ 07033
		  	Attention: [*]
		  	Fax No.: (908) [*]
		
	with copies to:	  	
		  	Attention: [*]
		  	Fax No.: (908) [*]

 18.6 Further Assurances. The Parties agree to reasonably cooperate with each other
in connection with any actions required to be taken as part of their respective obligations under this Agreement, and shall (a) furnish to each other such further information; (b) execute and deliver to each other such other documents; and
(c) do such other acts and things (including working collaboratively to correct any clerical, typographical, or other similar errors in this Agreement), all as the other Party may reasonably request for the purpose of carrying out the intent of
this Agreement. 
 18.7 Agency. Neither Party is, nor will be deemed to be an employee, agent or representative of the other
Party for any purpose. Each Party is an independent contractor, not an employee or partner of the other Party. Neither Party shall have the authority to speak for, represent or obligate the other Party in any way without prior written authority from
the other Party. 
 18.8 No Waiver. Any omission or delay by either Party at any time to enforce any right or remedy reserved
to it, or to require performance of any of the terms, covenants or provisions hereof, by the other Party, shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement. Any waiver by a Party
of a particular breach or default by the other Party shall not operate or be construed as a waiver of any subsequent breach or default by the other Party. 
 18.9 No Strict Construction. This Agreement has been prepared jointly by the Parties and shall not be strictly construed against either Party. 
 18.10 Headings. The captions used herein are inserted for convenience of reference only and shall not be construed to create obligations,
benefits, or limitations. 
 18.11 Counterparts. This Agreement may be executed in counterparts, all of which taken together
shall be regarded as one and the same instrument. 
 [Signature page follows] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 66 

 IN WITNESS WHEREOF, the Parties have executed this License, Development, and Commercialization Agreement
through their duly authorized representatives to be effective as of the Effective Date. 
  

									
	Novacea, Inc.	 		 	Schering Corporation
					
	By:	 	/s/ John P. Walker	 		 	By:	 	/s/ Michael J. DuBois
	Name:	 	John P. Walker	 		 	Name:	 	Michael J. DuBois
	Title:	 	Chairman – Interim CEO	 		 	Title:	 	Vice President
	Date:	 	May 29, 2007	 		 	Date:	 	May 29, 2007

  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 Page 67 

 EXHIBIT A 
 CORE DEVELOPMENT PLAN 
 CORE
DEVELOPMENT PLAN 
 DATED: May 25, 2007 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-1 

 [*] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-2 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-3 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-4 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-5 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-6 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-7 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-8 

 [*] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 A-9 

 EXHIBIT B 
 DRAFT FORWARD DEVELOPMENT PLAN 
 FORWARD DEVELOPMENT PLAN 
 DRAFT FOR REVIEW 
 Subject to Revision 
 DATED: May 25, 2007 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 B-1 

 [*] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 B-2 

 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 B-3 

 SCHEDULE 1.92 
 TRADEMARKS 
 TRADE NAME:
ASENTAR 
 [*] 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S1.92-1 

 Schedule 10.5(b)(v) OHSU Terms. 
 The following terms and conditions and the paragraph references set forth below correspond to paragraphs contained in the OHSU License Agreement. All capitalized terms that appear in the provisions set forth in this
Schedule 10.5(b)(v) shall have the respective meanings ascribed to such terms in the OHSU License Agreement. 
  

	5.01	If and only to the extent required and applicable under 35. U.S.C. §202(c)(4), OHSU reserves on behalf of the Government an irrevocable, nonexclusive,
nontransferable, royalty-free license for the practice of all subject inventions, as such term is defined in 35 U.S.C §201(e), licensed under the Licensed Patent Rights. 

  

	5.02	If and only to the extent required and applicable under 35 U.S.C §204, Licensee agrees that products used or sold in the United States embodying Licensed Patent
Rights that are subject inventions as defined in 35 U.S.C. §201(e) shall be manufactured substantially in the United States, unless a written waiver is obtained in advance from the Government. 

  

	8.01	Licensee agrees to keep accurate and correct records of Licensed Products made, used, or sold and Licensed Processes practiced under this Agreement
appropriate to determine the amount of royalties due OHSU. Licensee shall require its sublicensees to keep similar records so as to enable Licensee to audit any such sublicensees in order to meet its record keeping obligations
under this Agreement. Licensee’s records shall be retained for at least [*] years following a given reporting period. Licensee’s records shall be available during normal business hours for inspection at the expense of
OHSU by an accountant or other designated auditor selected by OHSU for the sole purpose of verifying reports and payments hereunder. The accountant or auditor shall only disclose to OHSU information relating to the accuracy of
reports and payments made under this Agreement. If an inspection shows an under reporting or underpayment in excess of [*] percent [*] for any [*] month period, then Licensee shall reimburse OHSU for the cost of the inspection
at the time Licensee pays the unreported royalties, including any interest charges as required by Paragraph 6.10 of this Agreement. All payments required under this Paragraph 8.01 shall be due within [*] days of the date OHSU
provides Licensee notice of the payment due. 

  

	10.01	Licensee shall use Reasonable Commercial Efforts to introduce the Licensed Products into the commercial market or apply the Licensed Processes to
commercial use as soon as practicable. The efforts of a sublicensee shall be considered the efforts of Licensee. 

  

	10.02	  If and only to the extent applicable under 35 U.S.C. §200, upon the First Commercial Sale until the expiration of this Agreement, Licensee shall use
Reasonable Commercial 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S10.6(B)(V)-1 

 
Efforts to keep Licensed Products and Licensed Processes reasonably accessible to the public. 
  

	12.01	 OHSU offers no warranties other than those specified in Article 1. 

  

	12.02	 OHSU does not warrant the validity of the Licensed Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed Patent
Rights, or that the Licensed Patent Rights may be exploited without infringing other patents or other intellectual property rights of third parties. 

  

	12.03	 OHSU MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER DEFINED BY THE CLAIMS OF THE LICENSED
PATENT RIGHTS. 

  

	12.04	 OHSU does not represent that it will commence legal actions against third parties infringing the Licensed Patent Rights. 

  

	12.05	 Licensee shall indemnify and hold OHSU, its directors, trustees, officers, employees, students, fellows, agents, and consultants harmless from and against all
liability, demands, damages, expenses, and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out of a) the use by or on behalf of Licensee or sublicensees, directors,
employees, or third parties of any Licensed Patent Rights, or b) the design, manufacture, distribution, or use of any Licensed Products, Licensed Processes or materials, or other products or processes developed in connection
with or arising out of the Licensed Patent Rights, or c) otherwise arising out of exercise of Licensed Patent Rights granted under this Agreement. Licensee at all times shall carry insurance or self-insurance sufficient
to cover its contractual obligations with respect to activities performed under this Agreement. Licensee shall provide evidence of this coverage to OHSU. 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S10.6(B)(V)-2 

 SCHEDULE 13.3(A) 
 NOVACEA EXCLUSIVELY OWNED PATENTS 
 [*] 
  

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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S13.3(A)-1 

 SCHEDULE 13.3(B) 
 NOVACEA EXCLUSIVELY LICENSED PATENTS 
 [*] 
  

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S13.3(B)-1 

 SCHEDULE 13.3(T) 
 ONGOING CLINICAL STUDIES 
 [*] 
  

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S13.3(T)-1 

 SCHEDULE 14.5 
 ISSUED PRESS RELEASE 
  

							
	

	  		  	

			
	Novacea Contacts:	  		  	 Schering-Plough Contacts:

				
	Media:	  	Paul Laland	  		  	 Mary-Frances Faraji

		  	650-228-1811	  		  	 908-298-7109 (office)

		  		  		  	 908 432-2404 (cell)

				
		  		  		  	 Cathy Cantone

				
		  		  		  	 908 327-3013 (cell)

				
	Investors:	  	Nina Ferrari	  		  	 Alex Kelly

		  	415-264-8796	  		  	 908-298-7450

 NOVACEA AND SCHERING-PLOUGH ENTER INTO WORLDWIDE 
 DEVELOPMENT AND COMMERCIALIZATION AGREEMENT FOR ASENTAR, A 
 NOVEL TREATMENT FOR PROSTATE CANCER 
 SOUTH SAN FRANCISCO, CA and KENILWORTH, NJ — May 30,
2007-—Novacea, Inc. (NASDAQ: NOVC) and Schering-Plough Corporation (NYSE: SGP) today announced that they have entered into an exclusive worldwide license agreement for the development and commercialization of AsentarTM (DN-101). Novacea is
currently conducting a large international Phase 3 trial (ASCENT-2) evaluating Asentar in 900 patients with androgen-independent prostate cancer (AIPC). Asentar is a novel, proprietary, high-dose oral formulation of calcitriol, a potent hormone that
exerts its effects through the vitamin D receptor (VDR). 
 Under the terms of the agreement, Novacea will receive an upfront payment of $60
million, including $35 million as reimbursement for past research and development expenses, a license fee of $25 million, as well as a commitment by Schering-Plough to purchase $12 million of Novacea common stock at a predetermined price within ten
days of the closing. Additionally, the agreement provides Novacea 

  

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S14.5-1 

 
with potential pre-commercial milestone payments of up to $380 million, and tiered royalties on worldwide sales of Asentar. Closing of the transaction is
subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) and is anticipated to occur following HSR clearance. 
 Schering-Plough will be responsible for all forward development costs in exploring indications for earlier stages of prostate cancer, such as androgen-dependent prostate cancer (ADPC) and adjuvant therapy and will lead all global
commercialization efforts for Asentar. Novacea will provide medical support to Schering-Plough’s commercial operations for Asentar in the United States, including deployment of their Medical Science Liaisons, which will be funded by
Schering-Plough. 
 “A corporate partnership has been a significant corporate goal for 2007, and we are proud to be co-developing
Asentar with a highly-respected pharmaceutical company such as Schering-Plough. The partnership leverages Novacea’s existing capabilities with Schering-Plough’s experienced development, regulatory and commercial teams and will provide
Novacea with an opportunity to support the commercialization of Asentar in the United States. Additionally, this agreement provides us with substantial funding for the continued development of our operations,” said John P. Walker,
Novacea’s chairman and interim chief executive officer. 
 “This agreement with Novacea allows us the potential opportunity to
extend our oncology pipeline into a tumor with significant unmet need,” said Thomas P. Koestler, Ph.D. executive vice president and president of Schering-Plough Research Institute. “Asentar represents an innovative research development and
reinforces our continual commitment to patients.” 
 About Asentar 
 Asentar is currently being developed as an oral treatment in combination with Taxotere® (docetaxel) for the treatment of AIPC. Prostate cancer is the second leading cause of cancer death in men with approximately 232,000 new cases and
30,000 deaths in the U.S. in 2005. AIPC is an advanced disease state of prostate cancer. Based on results of Novacea’s completed Phase 2 clinical trial, known as ASCENT, the use of weekly Asentar in combination with weekly Taxotere may provide
AIPC patients with an innovative cancer therapy that may prolong survival with the potential in reducing some of the toxicities and complications normally associated with chemotherapy. Novacea is now evaluating the benefits of Asentar in a
900-patient Phase 3 trial, known as ASCENT-2, which uses overall survival as the primary endpoint and compares weekly Asentar plus Taxotere to the current standard of care in the treatment of AIPC. 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S14.5-2 

 Conference Call and Webcast Information 
 Members of Novacea’s management team will discuss the agreement via a webcast and conference call today at 10:00 am Eastern Time. The webcast can be
accessed in the Investor Relations section of Novacea’s Web site at www.novacea.com. The live audio of the conference call is also accessible via telephone to investors, members of the news media and the general public by dialing either
866-770-7129 (United States and Canada) or 617-213-8067 (International) and typing in the passcode 46251887. 
 An archived replay of the
webcast will be available via Novacea’s Web site until June 30, 2007. The replay will also be available via telephone by dialing 888-286-8010 (United States and Canada) or 617-801-6888 (International) and typing in the passcode 43282090
until June 30, 2007. 
 About Schering-Plough 
 Schering-Plough Corporation is a global science-based health care company with leading prescription, consumer and animal health products. Through internal research and collaborations with partners, Schering-Plough
discovers, develops, manufactures and markets advanced drug therapies to meet important medical needs. Schering-Plough’s vision is to earn the trust of the physicians, patients and customers served by its more than 33,500 people around the
world. The company’s Web site is www.scheringplough.com. 
 About Novacea 
 Novacea, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing novel cancer therapies. Novacea has two product
candidates in clinical trials, including AsentarTM, which currently is in a Phase 3 clinical trial for androgen-independent prostate cancer, or AIPC. Novacea’s second product candidate, AQ4N, is a hypoxia-activated prodrug that is currently
in a Phase 1b/2a clinical trial in glioblastoma multiforme. More information on any of Novacea’s trials can be found at www.ClinicalTrials.gov. 
 SCHERING-PLOUGH DISCLOSURE NOTICE: The information in this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to
the potential market and prospects for Asentar. Forward-looking statements relate to expectations or forecasts of future events. Schering-Plough does not assume the 

  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S14.5-3 

 
obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Schering-Plough’s forward-looking
statements, including uncertainties in the development process and the regulatory process, any developments following regulatory approval, patent and other intellectual property protection, and current and future branded, generic or over-the-counter
competition, among other uncertainties. For further details about these and other factors that may impact the forward-looking statements, see Schering-Plough’s Securities and Exchange Commission filings, including Item 1A, “Risk
Factors” in the Company’s first quarter 2007 10-Q. 
 Note: Except for the historical information contained herein, the matters set forth in
this press release, including statements as to financial guidance, development, clinical studies, regulatory review and approval, and commercialization of products, are forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management’s
good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance and results to differ materially from the forward-looking
statements we make include: early stage of development; the focus, conduct, enrollment and timing of our clinical trials; regulatory review and approval of product candidates; commercialization of products; developments relating to our licensing and
collaboration agreements; market acceptance of products; funding requirements; intellectual property protection for our product candidates; competing products and other risks detailed from time to time under the heading “Risk Factors” in
our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as may be updated from time to time by our future filings under the Securities Exchange Act. If one or more of these risks or uncertainties materialize, or if any
underlying assumptions prove incorrect, our actual performance or results may vary materially from any future performance or results expressed or implied by these forward-looking statements. We assume no obligation to update forward-looking
statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.
 Novacea is a registered trademark of Novacea, Inc., and Asentar is a trademark of Novacea, Inc. All other trademarks are property of their
respective owners. 
 37-05 
  

 [*] = CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 
 S14.5-4Common Stock Purchase Agreement

 Exhibit 10.2 
 EXECUTION VERSION 
 NOVACEA, INC. 
 COMMON STOCK PURCHASE AGREEMENT 
 This Common Stock Purchase Agreement
(“Agreement”) is made as of May 29, 2007, by and among Novacea, Inc., a Delaware corporation (the “Company”), and Schering Corporation, a New Jersey corporation (the “Purchaser”). 

RECITALS 
 A. In connection with
that certain License, Development and Commercialization Agreement, dated of even date herewith (the “LDC Agreement”), by and between the Company and the Purchaser, the Purchaser wishes to purchase from the Company, and the Company
wishes to sell and issue to the Purchaser, certain shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), upon the terms and subject to the conditions set forth in this Agreement. 
 B. The Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the
provisions of Regulation D, as promulgated by the U.S. Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”). 
 AGREEMENT 
 In consideration of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Purchaser hereby agree as follows: 
 SECTION 1. AUTHORIZATION OF SALE OF SHARES. 
 The
Company has authorized the sale and issuance of certain shares of its Common Stock, par value $0.001 per share (the “Common Stock”), on the terms and subject to the conditions set forth in this Agreement. The shares of Common Stock
sold hereunder shall be referred to herein as the “Shares”. 
 SECTION 2. AGREEMENT TO SELL AND PURCHASE THE SHARES. 
 2.1 Sale of Shares. At the Closing (as defined in Section 3), the Company will sell to the Purchaser, and the Purchaser will purchase from the
Company that number of Shares of Common Stock equal to (x) $12,000,000, divided by (y) the Per Share Purchase Price (as defined below), as set forth on Exhibit A hereto. The “Per Share Purchase Price” shall be equal
to the average closing sale price of the Common Stock as quoted on The Nasdaq Stock Market for the twenty consecutive Trading Days ending on the Trading Day immediately prior to the date of this Agreement. A “Trading Day” shall be
any day on which The Nasdaq Stock Market is open and available for at least five hours for the trading of securities. 

 SECTION 3. CLOSING AND DELIVERY. 
 3.1 Closing. The Closing of the purchase and sale of the Shares pursuant to this Agreement (the “Closing”) shall be held at the offices of Latham & Watkins LLP, 140 Scott Drive, Menlo
Park, California 94025, within ten business days of the Effective Date (as such term is defined in the LDC Agreement), or on such other date and place as may be agreed to by the Company and the Purchaser. At or prior to the Closing, the Purchaser
shall execute any related agreements or other documents required to be executed hereunder, dated as of the date of the Closing (the “Closing Date”). 
 3.2 Delivery of the Shares at the Closing. At the Closing, the Company shall deliver to the Purchaser stock certificates registered in the name of the Purchaser, or in such nominee name(s) as designated by the
Purchaser, representing the number of shares of Common Stock to be purchased by the Purchaser at the Closing pursuant to Section 2.1 hereof against payment of the aggregate purchase price for such shares. The name(s) in which the stock
certificates are to be issued to the Purchaser are set forth in the Investor Questionnaire in the form attached hereto as Appendix I (the “Investor Questionnaire”), as completed by the Purchaser, which shall be provided to the
Company no later than five business days prior to the Closing. 
 SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY. 
 The Company hereby represents and warrants as of the date hereof to, and covenants with, the Purchaser as follows: 
 4.1 Organization and Standing. The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of
Delaware, has full corporate power and authority to own or lease its properties and conduct its business as presently conducted, and is duly qualified as a foreign corporation and in good standing in all jurisdictions in which the character of the
property owned or leased or the nature of the business transacted by it makes qualification necessary, except where the failure to be so qualified would not have a material adverse effect on the business, properties, financial condition or results
or operations of the Company (a “Company Material Adverse Effect”). The Company has no subsidiaries or equity interest in any other entity except for Novacea Europe Limited, a wholly-owned subsidiary of the Company. 
 4.2 Corporate Power; Authorization. The Company has all requisite corporate power, and has taken all requisite corporate action, to execute and
deliver this Agreement, sell and issue the Shares and carry out and perform all of its obligations under this Agreement. This Agreement constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms,
except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by equitable principles generally,
including any specific 

  

 2 

 
performance, and (iii) as to those provisions of Section 8.3 relating to indemnity or contribution. The execution and delivery of this Agreement
does not, and the performance of this Agreement and the compliance with the provisions hereof and the issuance, sale and delivery of the Shares by the Company will not conflict with, or result in a breach or violation of the terms, conditions or
provisions of, or constitute a default under, or result in the creation or imposition of any lien pursuant to the terms of, the Certificate of Incorporation or Bylaws of the Company or any statute, law, rule (including federal and state securities
laws and the rules and regulations of The NASDAQ Stock Market (the “Principal Market”)) applicable to the Company or regulation or any state or federal order, judgment or decree applicable to the Company or any indenture, mortgage,
lease or other material agreement or instrument to which the Company is a party or any of its properties is subject. No approval of the shareholders of the Company is required for the Company to issue and deliver to the Purchaser the Shares.

 4.3 Issuance and Delivery of the Shares. The Shares, when issued and paid for in compliance with the provisions of this Agreement,
will be validly issued, fully paid and nonassessable. The issuance and delivery of the Shares is not subject to preemptive, co-sale, right of first refusal or any other similar rights of the stockholders of the Company or any liens or encumbrances.
Assuming the accuracy of the representations made by the Purchaser in Section 5, the offer and issuance by the Company of the Shares is exempt from registration under the Securities Act. 
 4.4 SEC Documents; Financial Statements. The Company has filed in a timely manner all documents that the Company was required to file with the
Commission under Sections 13, 14(a) and 15(d) the Securities Exchange Act of 1934, as amended (the “Exchange Act”), since becoming subject to the requirements of the Exchange Act. As of their respective filing dates (or, if amended
prior to the date of this Agreement, when amended), all documents filed by the Company with the Commission (the “SEC Documents”) complied in all material respects with the requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder. None of the SEC Documents as of their respective dates contained any untrue statement of material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Documents (the “Financial Statements”) comply as to form in all material
respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto. The Financial Statements have been prepared in accordance with United States generally accepted accounting
principles consistently applied and fairly present the financial position of the Company at the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal,
recurring adjustments). 
 4.5 Capitalization. All of the Company’s outstanding shares of capital stock have been duly authorized
and validly issued, are fully paid and nonassessable, and have been issued in compliance with all federal and state securities laws. As of the date of this Agreement, the authorized capital stock of the Company consists of 123,104,000 shares of
common stock. As of the date of this Agreement, there are 23,276,738 shares of Common Stock issued and outstanding, of which no shares are owned by the Company. There are no other shares of any other class or series of capital stock of the Company
issued or outstanding. The Company has no 

  

 3 

 
capital stock reserved for issuance, except that, as of the date of this Agreement, there are 3,209,924 shares of Common Stock reserved for issuance pursuant
to options and restricted stock units outstanding on such date pursuant to the Company’s 2001 Stock Option Plan and 2006 Incentive Award Plan. There are no bonds, debentures, notes or other indebtedness having general voting rights (or
convertible into securities having such rights) (“Voting Debt”) of the Company issued and outstanding. Except as stated above, there are no existing options, warrants, calls, subscriptions or other rights, agreements,
arrangements or commitments of any character, relating to the issued or unissued capital stock of the Company, obligating the Company to issue, transfer, sell, redeem, purchase, repurchase or otherwise acquire or cause to be issued, transferred,
sold, redeemed, purchased, repurchased or otherwise acquired any capital stock or Voting Debt of, or other equity interest in, the Company or securities or rights convertible into or exchangeable for such shares or equity interests or obligations of
the Company to grant, extend or enter into any such option, warrant, call, subscription or other right, agreement, arrangement or commitment. The issuance of Common Stock or other securities pursuant to any provision of this Agreement will not
give rise to any preemptive rights or rights of first refusal on behalf of any Person or result in the triggering of any anti-dilution or other similar rights. 
 4.6 Governmental Consents. No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state, or local governmental authority on the
part of the Company is required in connection with the consummation of the transactions contemplated by this Agreement except for (a) compliance with the securities and blue sky laws in the states and other jurisdictions in which shares of
Common Stock are offered and/or sold, which compliance will be effected in accordance with such laws, (b) the filing of a registration statement and all amendments thereto with the Commission as contemplated by Section 8.1 of this
Agreement and (c) applicable requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended in connection with the transactions contemplated by the LDC Agreement and this Agreement. 
 4.7 No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged in any form
of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Securities Act) in connection with the offer or sale of the Shares. 
 4.8 No Integrated Offering. None of the Company, any of its affiliates, or any Person acting on their behalf has, directly or indirectly, made any
offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the Shares under the Securities Act or cause this offering of the Shares to be integrated with prior offerings
by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of the Principal Market. 
 SECTION 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER. 
 5.1 The Purchaser hereby represents and warrants to and covenants with the Company that: 
  

 4 

 (a) The Purchaser is knowledgeable, sophisticated and experienced in making, and is qualified to make,
decisions with respect to investments in shares presenting an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company, and has requested, received, reviewed and considered all
information the Purchaser deems relevant, including the SEC Documents, in making an informed decision to purchase the Shares. 
 (b) The
Purchaser is acquiring the Shares pursuant to this Agreement in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement or understanding with
any other persons regarding the distribution of such Shares, except in compliance with Section 5.1(c). 
 (c) The Purchaser will not,
directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the securities purchased hereunder except in compliance with the Securities Act,
applicable blue sky laws, and the rules and regulations promulgated thereunder. 
 (d) The Purchaser has, in connection with its decision to
purchase the Shares, relied with respect to the Company and its affairs solely upon the SEC Documents and the representations and warranties of the Company contained herein. 
 (e) The Purchaser is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act or a
Qualified Institutional Buyer within the meaning of Rule 144A promulgated under the Securities Act. 
 (f) The Purchaser has full right,
power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement. Upon the execution and
delivery of this Agreement by the Purchaser, this Agreement shall constitute a valid and binding obligation of the Purchaser, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, (ii) as limited by equitable principles generally, including any specific performance, and (iii) as to those provisions of
Section 8.3 relating to indemnity or contribution. 
 (g) The Purchaser is not a broker or dealer registered pursuant to Section 15
of the Exchange Act (a “registered broker-dealer”) and is not affiliated with a registered broker dealer. Purchaser is not party to any agreement for distribution of the Shares. 
 (h) The Purchaser shall have completed or caused to be completed and delivered to the Company, no later than five business days prior to the Closing
Date, the Investor Questionnaire for use in preparation of the Registration Statement, and the answers to the Investment Questionnaire will be true and correct as of the Closing Date and the effective date of the Registration Statement; provided
that the Purchaser shall be entitled to update such information by providing notice thereof to the Company before the effective date of such Registration Statement. 
  

 5 

 5.2 The Purchaser represents, warrants and covenants to the Company that the Purchaser has not, either
directly or indirectly through an affiliate, agent or representative of the Company, engaged in any transaction in the Securities of the Company subsequent to December 15, 2006. The Purchaser represents and warrants to and covenants with the
Company that the Purchaser has not engaged and will not engage in any short sales of the Company’s Common Stock prior to the effectiveness of the Registration Statement (either directly or indirectly through an affiliate, agent or
representative). 
 5.3 The Purchaser understands that nothing in this Agreement or any other materials presented to the Purchaser in
connection with the purchase and sale of the Shares constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection
with its purchase of the Shares. 
 5.4 Legends. It is understood that the Shares may bear one or more legends in substantially the
following form and substance: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT UPON SATISFACTION OF CERTAIN CONDITIONS, WHICH ARE SET FORTH IN THAT CERTAIN COMMON STOCK PURCHASE AGREEMENT DATED MAY 29,
2007, WHICH ALSO CONTAINS VARIOUS OTHER PROVISIONS AFFECTING THESE SECURITIES, BINDING UPON TRANSFEREES HEREOF. INFORMATION CONCERNING THESE RESTRICTIONS AND PROVISIONS MAY BE OBTAINED FROM THE CORPORATION OR ITS LEGAL COUNSEL.” 
 In addition stock certificates representing the Shares may contain: 
 (a) Any legend required by the laws of the State of California, including any legend required by the California Department of Corporations. 
 (b) Any legend required by the blue sky laws of any other state to the extent such laws are applicable to the sale of the Shares hereunder. 

5.5 Restricted Securities. The Purchaser understands that the Shares are characterized as “restricted securities” under the federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such Shares may be resold without registration under the Securities Act only in
certain limited circumstances. In this connection, the Purchaser represents that it is familiar with Commission Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. 
  

 6 

 SECTION 6. CONDITIONS TO COMPANY’S OBLIGATIONS AT THE CLOSING. 
 The Company’s obligation to complete the sale and issuance of the Shares and deliver shares of Common Stock to the Purchaser shall be subject to the
following conditions to the extent not waived by the Company: 
 6.1 Receipt of Payment. The Company shall have received payment, by
wire transfer of immediately available funds, in the full amount of the purchase price for the Shares being purchased by the Purchaser at the Closing as set forth on Exhibit A hereto. 
 6.2 Representations and Warranties. The representations and warranties made by the Purchaser in Section 5 hereof shall be true and correct in
all material respects when made and shall be true and correct in all material respects on the Closing Date. 
 SECTION 7. CONDITIONS TO PURCHASER’S
OBLIGATIONS AT THE CLOSING. 
 The Purchaser’s obligation to accept delivery of the Shares and to pay for the Shares shall be subject
to the following conditions to the extent not waived by the Purchaser: 
 7.1 Representations and Warranties Correct. The
representations and warranties made by the Company in Section 4 hereof shall be true and correct in all material respects when made, and any failure of such representations and warranties to be true and correct in all material respects after
the date hereof shall not have resulted in a Company Material Adverse Effect as of the Closing Date (except to the extent any such representations and warranties are made as of a particular date, in which case such representations and warranties
shall have been true and correct as of the date so specified). 
 7.2 Compliance Certificate. The Purchaser shall have received a
certificate signed by an officer of the Company certifying to the fulfillment of the conditions set forth in Section 7. 
 SECTION 8. REGISTRATION OF
THE SHARES; COMPLIANCE WITH THE SECURITIES ACT. 
 8.1 Registration Procedures and Expenses. The Company is obligated to do the
following: 
 (a) The Company shall use its commercially reasonable efforts to prepare and file with the Commission, within 60 days of the
Closing Date, a resale registration statement on Form S-3 (or such other resale registration form that the Company may then be eligible to use) in order to register with the Commission the resale by the Purchaser, from time to time, of the Shares
through Nasdaq or the facilities of any national securities exchange on which the Company’s Common Stock is then traded, or in privately-negotiated transactions (a “Registration Statement”). The Company shall provide the
Purchaser and its counsel a reasonable opportunity to review and comment upon the Registration Statement prior to its filing with the Commission, and shall consider and act in good faith with respect to the incorporation of any changes in the
Registration Statement reasonably proposed by the Purchaser. The Company shall use its commercially reasonable efforts to cause such Registration Statement to be declared effective as soon thereafter as reasonably practicable. 
  

 7 

 (b) If such a Registration Statement has been filed, the Company shall use its commercially reasonable
efforts to prepare and file with the Commission (i) such amendments and supplements to the Registration Statement and the prospectus used in connection therewith, (ii) such reports with the Commission and (iii) such other filings
required by the Commission, in each case as may be necessary to keep the Registration Statement effective and not misleading until the earliest of (A) the second anniversary date of the Closing Date, or (B) such time as all of the Shares
held by the Purchaser can be sold within a given three-month period pursuant to Rule 144 under the Securities Act. Notwithstanding the foregoing, following the effectiveness of the Registration Statement, the Company may, at any time, suspend the
effectiveness of the Registration Statement for up to an aggregate of 60 days, as appropriate (a “Suspension Period”), by giving notice to the Purchaser, if the Company shall have determined that the Company may be required to
disclose any material corporate development. Notwithstanding the foregoing, the Company may not suspend the effectiveness of the Registration Statement more than twice during any twelve-month period. Each Purchaser agrees that, upon receipt of any
notice from the Company of a Suspension Period, such Purchaser will not sell any Shares pursuant to the Registration Statement until (i) such Purchaser is advised in writing by the Company that the use of the applicable prospectus may be
resumed, (ii) such Purchaser has received copies of any additional or supplemental or amended prospectus, if applicable, and (iii) such Purchaser has received copies of any additional or supplemental filings which are incorporated or
deemed to be incorporated by reference in such prospectus. 
 (c) The following term used in this Section 8.1(c) shall have the
following definitions: 
 (i) “Effectiveness Deadline” means, with respect to the Registration Statement
required to be filed pursuant to Section 8.1(a) hereof, the first anniversary of the Effective Date; provided that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the
Effectiveness Deadline shall be extended to the next business day on which the Commission is open for business. 
 If: (i) a
Registration Statement filed or required to be filed hereunder is not declared effective by the Commission (or otherwise does not become effective) by the Effectiveness Deadline; or (ii) after the Effectiveness Deadline, a Registration
Statement ceases for any reason to remain continuously effective as to all Shares for which it is required to be effective or the Purchaser are otherwise not permitted to utilize the prospectus therein to resell such Shares for more than 20
consecutive calendar days or more than an aggregate of 60 calendar days in any 12-month period (which need not be consecutive), (any such failure or breach in clauses (i) through (ii) above being referred to as an “Event,”
and, for purposes of clause (i), the date on which such Event occurs, or for purposes of clause (ii), the date on which such 20 or 60 calendar period (as applicable) is exceeded, being referred to as “Event Date”), then in addition
to any other rights the Purchaser may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event
is cured, the Company shall pay to the Purchaser an amount in cash, as partial liquidated damages and not as a penalty (“Liquidated Damages”), equal to 1.0% of the aggregate purchase price paid by the Purchaser pursuant to the
Purchase Agreement for any Shares then held by the Purchaser; provided that all periods shall be 

  

 8 

 
tolled in respect of any delay that results from a pending request by the Company to the Commission for confidential treatment of all or a portion of the LDC
Agreement and any agreements or amendments related thereto. If the Company fails to pay any partial Liquidated Damages pursuant to this Section in full within seven business days after the date payable, the Company will pay interest thereon at a
rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial Liquidated Damages are due until such amounts, plus all such interest thereon, are
paid in full. The partial Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event. For the avoidance of doubt, the Company shall not be liable hereunder for any
Liquidated Damages in respect of any periods following the second anniversary of the Effective Date. 
 (d) In order to facilitate the public
sale or other disposition of all or any of the Shares by the Purchaser, the Company shall furnish to the Purchaser with respect to the Shares registered under the Registration Statement such number of copies of prospectuses, prospectus supplements,
preliminary prospectuses and final prospectuses as the Purchaser reasonably requests in conformity with the requirements of the Securities Act. 
 (e) The Company shall file any documents required of the Company for normal blue sky clearance in states specified in writing by the Purchaser; provided, however, that the Company shall not be required to qualify to do business or consent
to service of process in any jurisdiction in which it is not now so qualified or has not so consented as of the date of this Agreement. 
 (f) Other than fees and expenses, if any, of counsel or other advisers to the Purchaser, which fees and expenses shall be borne by the Purchaser, the Company shall bear all expenses (exclusive of any brokerage fees, underwriting discounts
and commissions) in connection with the procedures in paragraphs (a) through (e) of this Section 8.1. 
 (g) With a view to
making available to the Purchaser the benefits of Rule 144 promulgated under the Securities Act (“Rule 144”) and any other rule or regulation of the Commission that may at any time permit the Purchaser to sell Shares to the
public without registration or pursuant to registration, the Company covenants and agrees to use its commercially reasonable efforts to: (i) make and keep public information available, as those terms are understood and defined in Rule 144,
until the earlier of (A) the second anniversary of the Closing Date or (B) such date as all of the Shares shall have been resold; (ii) file with the Commission in a timely manner all reports and other documents required of the Company
under the Exchange Act; and (iii) furnish to the Purchaser upon request, as long as the Purchaser owns any Shares, (A) a written statement by the Company that it has complied with the reporting requirements of the Exchange Act, (B) a
copy of the most recent annual or quarterly report of the Company, and (C) such other information as may be reasonably requested in order to avail any Purchaser of any rule or regulation of the Commission that permits the selling of any such
Shares without registration under the Securities Act. 
 8.2 Transfer of Shares After Registration. The Purchaser agrees that it will
not effect any disposition of the Shares that would constitute a sale within the meaning of the Securities Act, except: 
  

 9 

 (a) pursuant to the Registration Statement, in which case the Purchaser shall submit the certificates
evidencing the Shares to the Company’s transfer agent, accompanied by a separate certificate executed by the Purchaser or by an officer of, or other authorized person designated by, the Purchaser, to the effect that (A) the Shares have
been sold in accordance with the Registration Statement and (B) the requirement of delivering a current prospectus has been satisfied; or 
 (b) in a transaction exempt from registration under the Securities Act, in which case the Purchaser shall, prior to effecting such disposition, submit to the Company an opinion of counsel in form and substance reasonably satisfactory to the
Company to the effect that the proposed transaction is in compliance with the Securities Act. 
 8.3 Indemnification. As used in this
Section 8.3 the following terms shall have the following respective meanings: 
 (a) “Selling Stockholder” shall mean
the Purchaser and any transferee of the Purchaser who is entitled to resell Shares pursuant to the Registration Statement; 
 (b)
“Registration Statement” shall include any final prospectus, exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 8.1; and 
 (c) “Untrue Statement” shall include any untrue statement or alleged untrue statement, or any omission or alleged omission to state in
the Registration Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 The Company agrees to indemnify and hold harmless each Selling Stockholder from and against any losses, claims, damages or liabilities to which such
Selling Stockholder may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, any Untrue Statement on or after
the effective date of the Registration Statement, or on or after the date of any prospectus or prospectus supplement or the date of any sale by the Purchaser thereunder, or arise out of any failure by the Company to fulfill any undertaking included
in the Registration Statement and the Company will reimburse such Selling Stockholder for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim; provided,
however, that the Company shall not be liable to such Selling Stockholder in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an Untrue Statement made in such Registration Statement in reliance
upon and in conformity with information furnished to the Company by or on behalf of such Selling Stockholder in writing specifically for use in preparation of the Registration Statement, or the failure of such Selling Stockholder to comply with the
covenants and agreements contained in Section 8.1 or 8.2 hereof respecting sale of the Shares or any statement or omission in any Prospectus that is corrected in any subsequent prospectus that was delivered to the Selling Stockholder prior to
the pertinent sale or sales by the Selling Stockholder. 
  

 10 

 The Purchaser hereby agrees to indemnify and hold harmless the Company (and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act, each officer of the Company who signs the Registration Statement and each director of the Company) from and against any losses, claims, damages or liabilities to which
the Company (or any such officer, director or controlling person) may become subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon, any failure to comply with the covenants and agreements contained in Section 8.1 or 8.2 hereof respecting sale of the Shares, or any Untrue Statement contained in the Registration Statement on or after the effective date thereof, or
in any prospectus supplement as of its issue date or date of any sale by the Purchaser thereunder, if such Untrue Statement was made in reliance upon and in conformity with information furnished by or on behalf of the Purchaser in writing
specifically for use in preparation of the Registration Statement, and the Purchaser will reimburse the Company (or such officer, director or controlling person), as the case may be, for any legal or other expenses reasonably incurred in
investigating, defending or preparing to defend any such action, proceeding or claim. 
 Promptly after receipt by any indemnified person of
a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 8.3, such indemnified person shall notify the indemnifying person in writing of such claim
or of the commencement of such action, and, subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person and such indemnifying person shall have been notified thereof, such indemnifying person
shall be entitled to participate therein, and, to the extent it shall wish, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its
election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof; provided, however, that
if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate
or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one
separate counsel for all indemnified parties. 
 8.4 Termination of Conditions and Obligations. The conditions precedent imposed by
Section 5 or this Section 8 upon the transferability of the Shares shall cease and terminate as to any particular number of the Shares when such Shares shall have been sold or otherwise disposed of in accordance with the intended method of
disposition set forth in the Registration Statement covering such Shares or at such time as an opinion of counsel satisfactory to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the
Securities Act. 
 8.5 Information Available. So long as the Registration Statement is effective covering the resale of Shares owned
by the Purchaser, the Company will furnish to the Purchaser, upon reasonable request, an adequate number of copies of the prospectuses and supplements to supply to any other party requiring such prospectuses. 
  

 11 

 8.6 Plan of Distribution. The Purchaser agrees to distribute the Shares in compliance with the
plan of distribution set forth in the Registration Statement. 
 SECTION 9. BROKER’S FEE. 
 The Company and the Purchaser each hereby represent that there are no brokers or finders entitled to compensation in connection with the sale of the
Shares, and shall indemnify each other for any such fees for which they are responsible. 
 SECTION 10. NOTICES. 
 All notices, requests, consents and other communications hereunder shall be in writing, shall be sent by confirmed facsimile or mailed by first-class
registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so sent in the case of facsimile transmission, or when so received in the case of mail or courier, and addressed as
follows: 
 (a) if to the Company, to: 
 Novacea, Inc. 
 601 Gateway Boulevard, Suite 800 
 South San Francisco, California 94080 
 Attention: Chief Executive Officer 
 Facsimile: (650) 228-1088 
 with a copy (not constituting notice) mailed to: 
 Latham & Watkins LLP 
 140 Scott Drive 
 Menlo Park, California 94025 
 Attention: Alan C. Mendelson and Mark V. Roeder 
 Facsimile: (650) 463-2600 

or to such other person at such other place as the Company shall designate to the Purchaser in writing; and 
 (b) if to the Purchaser, at the address as set forth at the end of this Agreement, or at such other address or addresses as may have been furnished to
the Company in writing. 
 SECTION 11. MISCELLANEOUS. 
 11.1 Waivers and Amendments. Neither this Agreement nor any provision hereof may be changed, waived, discharged, terminated, modified or amended except upon the written consent of the Company and the Purchaser.

 11.2 Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and
shall not be deemed to be part of this Agreement. 
  

 12 

 11.3 Severability. In case any provision contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
 11.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware as applied to contracts entered into and performed entirely in Delaware by Delaware
residents, without regard to conflicts of law principles. 
 11.5 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the
other parties. 
 11.6 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. 
 11.7 Entire
Agreement. This Agreement and other documents delivered pursuant hereto, including the exhibit, constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. 
 11.8 Payment of Fees and Expenses. Each of the Company and the Purchaser shall bear its own expenses and legal fees incurred on its behalf with
respect to this Agreement and the transactions contemplated hereby. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs
and necessary disbursements in addition to any other relief to which such party may be entitled. 
 [signature pages follow] 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first above written. 
  

			
	 NOVACEA, INC.

		
	 By:
	 	/s/ John P. Walker
	 Name:
	 	John P. Walker
	 Title:
	 	Chairman—Interim CEO

 PURCHASER: 
  

			
	SCHERING CORPORATION
		
	 By:
	 	 /s/ Michael J. DuBois

	 Name:
	 	 Michael J. DuBois

	 Title:
	 	 Vice President

	
	2000 Galloping Hill Road
	Kenilworth, NJ 07033
	Attention: Senior Vice President, Global Licensing
	Fax No.: (908) 298-7366
	
	with copies to:
	
	Attention: Senior Legal Director, Licensing
	Fax No.: (908) 298-2739

 EXHIBIT A 
  

						
	 Name and Address
	  	 Per Share
 Purchase Price
	  	 Number of
 Shares

	 SCHERING CORPORATION
 2000 Galloping Hill Road Kenilworth, NJ 07033
	  	$	8.049	  	1,490,868
	 Total:
	  			  	1,490,868

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