Document:

exv4wxaywx7y

Exhibit 4(a)(7)

Dated as of September 17, 2009

SHAREHOLDERS’ AGREEMENT

by and among

JANSSEN PHARMACEUTICAL,

JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED,

LATAM PROPERTIES HOLDINGS,

JNJ IRISH INVESTMENTS ULC,

ELAN CORPORATION, PLC,

CRIMAGUA LIMITED,

ELAN PHARMA INTERNATIONAL LIMITED

and

JANSSEN ALZHEIMER IMMUNOTHERAPY

 

 

Contents

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

 

 

Exhibits

Exhibit A — Memorandum and Articles of Association

Exhibit B — Form of Contribution Agreement

Exhibit C — Form of Deed Poll of Adherence

Exhibit D — Initial Contribution Agreement

Exhibit E — Loan Agreement

Exhibit F — Jupiter Universal Calendar

 

 

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

Parties

	(1)	 	JANSSEN PHARMACEUTICAL, an Irish Unlimited Company (“Jupiter Parent”).

	(2)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (HOLDING) LIMITED (F/K/A JUNO NEUROSCIENCES (HOLDING)
LIMITED), an Irish Limited Company (“Jupiter Sub-1”).

	(3)	 	LATAM PROPERTIES HOLDINGS, an Irish Unlimited Company (“Jupiter Sub-2”).

	(4)	 	JNJ IRISH INVESTMENTS ULC, a Canadian Unlimited Liability Company (“Jupiter Sub-3”).

	(5)	 	ELAN CORPORATION, PLC, an Irish Public Limited Company (“Lucky Parent”).

	(6)	 	CRIMAGUA LIMITED, an Irish Limited Company (“Lucky Sub-1”).

	(7)	 	ELAN PHARMA INTERNATIONAL LIMITED, an Irish Limited Company (“Lucky Sub-2”).

	(8)	 	JANSSEN ALZHEIMER IMMUNOTHERAPY (F/K/A JUNO NEUROSCIENCES), an Irish Unlimited Company (the
“Company”).

Background

	(A)	 	Lucky Sub-1, a successor in interest to Lucky Sub-2 and itself a successor in
interest to Neuralab Limited, and Wyeth (formerly known as American Home Products
Corporation), a Delaware corporation (“Wyeth”), are party to that certain Research,
Development and Commercialization Agreement dated as of March 17, 2000 (as amended from time
to time, the “Collaboration Agreement”).

	(B)	 	Jupiter Parent, the Company, Lucky Parent and certain Subsidiaries of Lucky Parent
are party to that certain Asset Purchase Agreement dated as of July 2, 2009 (as amended from
time to time, the “Asset Purchase Agreement”), pursuant to which the Collaboration Agreement
and certain related assets will be assigned and transferred to the Company at the Closing.

	(C)	 	The Company was incorporated on June 25, 2009. On incorporation, Jupiter Sub-1
subscribed for 500 ordinary shares of $0.01 each and Jupiter Sub-3 subscribed for 1 ordinary
share (collectively, the “Subscriber Shares”). The Subscriber Shares were redesignated as
Class O-J Shares on June 29, 2009.

1

 

	(D)	 	Immediately prior to the Closing, the Company’s issued and outstanding share capital
consisted of 501 Class O-J Shares of $0.01 each, 500 of which were held by Jupiter Sub-1 and 1
of which was held by Jupiter Sub-3.

	(E)	 	Immediately prior to the Closing, the Memorandum and Articles of Association of the
Company were in the form attached as Exhibit A hereto, and the authorized share
capital of the Company consisted of 501 Class O-J Shares of $0.01 each, 499 Class O-E Shares
of $0.01 each and 1,000,000,000 Class C Shares of $0.01 each.

	(F)	 	At the Closing the Company will issue to Lucky Sub-1 the shares in the capital of the
Company as set forth herein.

	(G)	 	The parties hereby agree to exercise their rights in relation to the Company in
accordance with the terms and conditions of this Agreement.

Agreed terms

	1.	 	Interpretation

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

2

 

	 	 	board of directors of Lucky Parent and (ii) the Lucky Parent Ordinary Shares and/or ADSs
are converted into or are otherwise entitled to receive cash with a per share value
(determined as of the date of consummation of the Change of Control) that is less than the
Reference Purchase Price (the cash amount per share so determined, the “Triggering Event
Price”). In the event the Triggering Event Price is denominated in a currency other than
United States dollars, for purposes of determining the Triggering Event Price hereunder,
the applicable cash amount shall be converted into United States dollars at the then
prevailing exchange rate as quoted in the Financial Times on the day on which the related
Antidilution Obligatory Transfer Event is consummated, or if such day is not a Business
Day, as quoted in the Financial Times on the immediately preceding Business Day.

	 	 	Applicable Laws: means any and all applicable laws (whether civil, criminal or
administrative) including, but not limited to, common law, statutes, subordinate
legislation, treaties, regulations, directives, decisions, by-laws, circulars, codes,
orders, notices, demands, decrees, injunctions, guidance, judgments or resolutions of a
parliamentary government, quasi-government, federal, state or local government, statutory,
administrative or regulatory body, court or agency in any part of the world which is in
force or enacted from time to time.

	 	 	A person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially
own”, and shall be deemed to have “Beneficial Ownership” of, any securities as determined
in accordance with Rule 13d-3 under the Exchange Act, as in effect on the date of this
Agreement (but disregarding the phrase “within sixty days” in paragraph (d)(1)(i) thereof),
including, without limitation, pursuant to any contract, arrangement or understanding
(whether or not in writing), any relationship or otherwise. Without duplicative counting
of the same securities by the same person, securities Beneficially Owned by a person shall
be deemed to include (a) all securities Beneficially Owned, directly or indirectly, by such
person, any of such person’s Affiliates and any other person with which or whom such person
or such person’s Affiliates would constitute a Group and (b) all securities which are the
subject of, or the reference securities for, or that underlie, any Derivative Interest held
by such person or any of such person’s Affiliates, with the number of ordinary (or common)
            shares or voting securities deemed Beneficially Owned being the notional or other number of
ordinary (or common) shares or voting securities specified in (or determined pursuant to)
the documentation evidencing the Derivative Interest as being subject to be acquired upon
the exercise or settlement of the Derivative Interest or as the basis upon which the value
or settlement amount of such Derivative Interest is to be calculated in whole or in part.

	 	 	Blocking Third Party Intellectual Property: has the meaning given to such term in the
Collaboration Agreement (it being understood and agreed that with respect to any product
based on a Company Product that is not a Product, the same definition shall apply
mutatis mutandis).

	 	 	Board: means the board of directors of the Company as constituted from time to time.

3

 

	 	 	Business Cessation: means, at any time following a Specified Collaboration Termination and
for a continuous period of at least six consecutive months, the failure of the Company to
perform (directly or indirectly through any of its Subsidiaries, licensees, sublicensees,
contractors, or agents (in a good faith manner with a view to furthering the business of
the Company)) any activity involving the planning or conduct of any research, development,
manufacture or commercialization of an R&D Candidate, Product, or any other compound,
molecule, macromolecule, vaccine or pharmaceutical product (other than any such failure to
perform due to a Force Majeure Event or a prohibition, injunction or similar restraint
imposed by Applicable Law or by order of any governmental agency, court or other body of
competent jurisdiction).

	 	 	Business Day: means a day (other than a Saturday or Sunday) when banks in Dublin, Ireland
and New York, New York are open for business.

	 	 	Business Intellectual Property: has the meaning given to such term in the Asset Purchase
Agreement.

	 	 	Calendar Quarter: means a quarter of a Calendar Year, based on the applicable thirteen week
or fourteen week periods under the Jupiter Universal Calendar for that year.

	 	 	Calendar Year: means a calendar year based on the Jupiter Universal Calendar for that year.

	 	 	Capital Call Period: means the period beginning on the date of this Agreement and ending on
the date on which Jupiter Sub-1 and Lucky Sub-1 are no longer required to fund Shared
Contributions pursuant to clause 6.4.

	 	 	Change of Control: means, at any time on or after the date of this Agreement, with respect
to Lucky Parent or Jupiter PubliCo (and any of their respective successors), as the context
may require:

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

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

4

 

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

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

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

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

5

 

	 	 	Class O-E Share: means a non-voting ordinary share of $0.01 in the capital of the Company.
The Class O-E Shares shall carry no voting rights and shall have the right to receive
payments as provided in clauses 7.1(e) and (g) on a pro rata basis with the Class O-J
Shares.

	 	 	Class O-J Share: means a voting ordinary share of $0.01 in the capital of the Company. The
Class O-J Shares shall carry voting rights and shall have the right to receive payments as
provided for in clauses 7.1(a) and 7.1(b), and, on a pro rata basis with the Class O-E
Shares, as provided for in clauses 7.1(e) and (g).

	 	 	Closing: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	Closing Date: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	Closing Date IP: means the Business Intellectual Property transferred to Company as of the
Closing Date under the Asset Purchase Agreement that is necessary for the research,
development, manufacture or commercialization of any Product or R&D Candidate for use in
the Field.

	 	 	Company Product: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	Contract: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	Contribution Agreement: means a contribution agreement to be entered into in accordance
with clause 6.5 and clause 6.9, in the form attached as Exhibit B hereto.

	 	 	Control: means, with respect to any designated Intellectual Property or right therein
granted by one party to another hereunder, the possession (whether by ownership or license,
other than pursuant to this Agreement) by the party of the ability to grant access and/or a
license to the other as provided herein under such Intellectual Property or right therein
without violating the terms of any agreement or other arrangement with any third party
existing before the date of such grant.

	 	 	Covers the product: means, with respect to a product (including any Product or any finished
form of a Company Product) sold in a country, that (i) a Valid Claim literally encompasses,
whether generically or specifically, the product or an active pharmaceutical ingredient
(whether an R&D Candidate or another Company Product) in such product, or any labeled
indication or use of such product, or (ii) a Valid Claim in a country (whether the country
of sale or another country) where the R&D Candidate or other active pharmaceutical
ingredient of such product sold in the country of sale was manufactured that literally
encompasses, whether generically or specifically, the manufacture of the R&D Candidate in
the product.

	 	 	Deed Poll of Adherence: means a deed poll of adherence to this Agreement in the form
attached as Exhibit C hereto.

	 	 	Derivative Interest: means any derivative security (as defined under Rule 16a-1 under the
Exchange Act) that increases in value as the value of some other ordinary (or

6

 

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

	 	 	Development Program: has the meaning given to such term in the Collaboration Agreement.

	 	 	Divested Assets: has the meaning given to such term in the Collaboration Agreement.

	 	 	Encumbrance: means any mortgage, charge (fixed or floating), pledge, lien, hypothecation,
guarantee, trust, right of set-off or other third party right or interest (legal or
equitable), including any assignment by way of security, reservation of title or other
security interest of any kind, howsoever created or arising, or any other agreement or
arrangement (including a sale and repurchase agreement) having a similar effect. The term
“Encumber” shall have a correlative meaning.

	 	 	Enhancing Third Party Intellectual Property: has the meaning given to such term in the
Collaboration Agreement (it being understood and agreed that with respect to any product
based on a Company Product that is not a Product, the same definition shall apply
mutatis mutandis).

	 	 	Exchange Act: means the Securities Exchange Act of 1934, as amended.

	 	 	Field: has the meaning given to such term in the Collaboration Agreement.

	 	 	First Commercial Sale: has the meaning given to such term in the Collaboration Agreement.

	 	 	Force Majeure Event: means any labor strike, act of God, act of a public enemy, act of
terrorism, riot or other event that interrupts the operation of the Company’s business,
which other event arises from circumstances beyond the reasonable control of the Company.

	 	 	Funding Percentage: means, at any time:

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

7

 

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

	 	 	G-7 Country: means any of Canada, France, Germany, Italy, Japan, the United Kingdom or the
United States of America.

	 	 	Group: means two or more persons acting, formally or informally, as a partnership, limited
partnership, syndicate or other group or pursuant to any agreement, arrangement or
understanding, in any event, for purpose of acquiring, holding, voting or disposing of
securities.

	 	 	holding company: has the meaning given to it in section 155 of the Companies Act 1963.

	 	 	Indebtedness: of any person means (i) all obligations of such person for borrowed money,
(ii) all obligations of such person evidenced by bonds, debentures, notes or similar
instruments, (iii) all obligations of such person upon which interest charges are
customarily paid by such person, other than trade credit incurred in the ordinary course of
business, (iv) all indebtedness of others secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by) any
Encumbrance on property owned or acquired by such person, whether or not the obligations
secured thereby have been assumed, (v) all capital lease obligations, purchase money
obligations and synthetic lease obligations of such person, (vi) any advance or deferred
purchase agreement if one of the primary reasons behind entering into the agreement is to
finance the acquisition or construction of the asset or service in question, (vii) all
obligations of such person for the reimbursement of any obligor in respect of letters of
credit, letters of guaranty, bankers’ acceptances and similar credit transactions (other
than any such letter, acceptance or similar transaction entered into in the ordinary course
of business and not drawn (or, if drawn, not repaid within five Business Days thereafter))
and (viii) any amount of any liability in respect of any guarantee or counter-indemnity
for any of the items referred to in subclauses (i) through (vii) above.

	 	 	Initial Contribution Agreement: means the Contribution Agreement to be entered into in
accordance with clause 6.1 between Jupiter Sub-1 and the Company, in the form attached as
Exhibit D hereto.

	 	 	Intellectual Property: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	JSC: has the meaning given to such term in the Collaboration Agreement.

	 	 	Jupiter Shareholders: means Jupiter Sub-1, Jupiter Sub-3 and any of their Affiliates which
may hold Shares as a result of a Transfer permitted by clause 11.2.

	 	 	Jupiter Shares: means, at any time, the Shares then held by the Jupiter Shareholders.

	 	 	Jupiter Universal Calendar: means the universal calendar Jupiter PubliCo uses as part of
its financial reporting system, as provided to the Company from time to time by Jupiter
Sub-1 and consistent with the universal calendar attached as Exhibit F hereto.

8

 

	 	 	License and Grant-Back Agreement: has the meaning given to such term in the Asset Purchase
Agreement.

	 	 	Loan: means the loan made by the Company to Jupiter Sub-2 pursuant to the Loan Agreement.

	 	 	Loan Agreement: means the Loan Agreement to be entered into in accordance with clause 6.2
between the Company and Jupiter Sub-2, in the form attached as Exhibit E hereto.

	 	 	Loss: has the meaning given to such term in the Asset Purchase Agreement.

	 	 	Lucky Parent Ordinary Shares: means ordinary shares of Lucky Parent, par value €0.05 per
share.

	 	 	Lucky Shareholders: means Lucky Sub-1 and any of its Affiliates that may hold Shares as a
result of a Transfer permitted by clause 11.2.

	 	 	Lucky Shares: means, at any time, the Shares then held by the Lucky Shareholders.

	 	 	Non-Triggering Party: means, with respect to any Obligatory Transfer Event (i) Jupiter
Sub-1 if such Obligatory Transfer Event occurs with respect to any Lucky Shares or (ii)
Lucky Sub-1 if such Obligatory Transfer Event occurs with respect to any Jupiter Shares.

	 	 	person: means any individual, firm, company, corporation, partnership, limited liability
company, trust, joint venture, business association, governmental entity or other entity
(whether or not having a separate legal personality).

	 	 	Positive Cash Flow Date: means, following the date of the first commercial sale of any
product by or on behalf of the Company in a G7 Country, the first day of the Calendar
Quarter immediately following the first Calendar Quarter for which the Company and its
Subsidiaries shall have generated positive cash flow from operations on a consolidated
basis (determined in accordance with GAAP or IFRS, as applicable, but without giving effect
to any milestone payments made to the Company pursuant to the Collaboration Agreement
during such first Calendar Quarter).

	 	 	Post-Closing IP: means the Intellectual Property developed by the Company in conducting the
Business during the period running from the Closing Date until any Business Cessation that
is necessary for the research, development, manufacture or commercialization of any Product
or R&D Candidate for use in the Field.

	 	 	Product: has the meaning given to such term in the Collaboration Agreement.

	 	 	R&D Candidate: has the meaning given to such term in the Collaboration Agreement.

	 	 	Research Term: has the meaning given to such term in the Collaboration Agreement.

	 	 	Reference Purchase Price means $9.32.

	 	 	Requisite Amount: means, at any date of determination, assets which in the aggregate (i)
have a fair market value exceeding 50% of the fair market value of all of the assets of a
person and its Subsidiaries, determined on a consolidated basis as of the last day of the

9

 

	 	 	most recently-completed fiscal quarter of such person ended prior to such date of
deter-mination for which financial statements are in existence or (ii) were used to
generate more than 50% of the gross revenues of a person and its Subsidiaries, determined
on a consolidated basis for the most recent four consecutive fiscal quarters of such person
ended prior to such date of determination for which financial statements are in existence.

	 	 	Research Program: has the meaning given to such term in the Collaboration Agreement.

	 	 	Restricted Period: means the period beginning on the date hereof and ending on the third
anniversary of the Closing Date.

	 	 	Royalty Agreement: means that certain royalty letter agreement between Lucky Sub-2 and the
Company executed pursuant to the Asset Purchase Agreement and dated as of the date hereof,
as amended from time to time.

	 	 	Shareholder: means, at any time, any person that, at such time, holds one or more Shares as
a result of an issuance or Transfer made in compliance with this Agreement.

	 	 	Shares: means the Class C Shares, the Class O-E Shares and the Class O-J Shares in issue
from time to time.

	 	 	Sharing Percentage: means, at any time:

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

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

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

10

 

	 	 	Specified Collaboration Documents: has the meaning given to such term in the Asset
Purchase Agreement.

	 	 	Specified Collaboration Termination: means a termination of the Collaboration Agreement (i)
pursuant to Sections 13.2.1, 13.6.1 or 13.7.3 of the Collaboration Agreement, in each case,
if the Company is the terminating party, (ii) pursuant to Section 13.5.1 of the
Collaboration Agreement, if Wyeth (or its successor) is the terminating party or (iii) that
is effected by voluntary agreement of the Company and Wyeth (or its successor), other than
pursuant to any express Section of the Collaboration Agreement.

	 	 	Subsidiary: means, with respect to any person and at any time, another person, an amount of
the voting securities, other voting ownership or voting partnership interests of which that
is sufficient to elect at least a majority of its board of directors or other governing
body (or, if there are no such voting interests, 50% or more of the equity interests of
which) is owned directly or indirectly by such first person or by another subsidiary of
such person at such time.

	 	 	Transfer: means, whether directly or indirectly (by merger, scheme of arrangement,
operation of law or otherwise), any sale, assignment, license, sublicense, conveyance,
transfer, donation or any other means to dispose of, or pledge, hypothecate or otherwise
Encumber in any manner whatsoever, or permit or suffer any Encumbrance of, any Shares or
any interest in Shares or other interest in the Company.

	 	 	Triggering Parties: means, with respect to any Obligatory Transfer Event (i) the Jupiter
Shareholders if such Obligatory Transfer Event occurs with respect to any Jupiter Shares or
(ii) the Lucky Shareholders if such Obligatory Transfer Event occurs with respect to any
Lucky Shares.

	 	 	Valid Claim: means, in reference to a particular time that a product is sold in a country,
any claim that at such time is: (a) granted in any unexpired and issued patent included in
the Closing Date IP or Post-Closing IP that has not been revoked or held unenforceable or
invalid by a final decision of a court or other governmental agency of competent
jurisdiction, or that has not been disclaimed, denied or admitted to be invalid or
unenforceable through reissue or disclaimer or otherwise; or (b) pending in a
nonprovisional patent application included in the Closing Date IP or the Post-Closing IP
that has not lapsed or been cancelled, withdrawn or abandoned without the possibility of
revival, but excluding any such claim that is pending after the earlier of fifteen (15)
years from the earliest priority date claimed for such application and ten (10) years from
the first commercial sale of such product (where the meaning of “first commercial sale” has
the same meaning as First Commercial Sale as applicable mutatis mutandi).

	1.2	 	Each of the following terms is defined in the clause of this Agreement indicated
below:

	 	 	 	 	 
	Term:	 	Clause:
	Agreement
	 	Recital
	Asset Purchase Agreement
	 	Recital

11

 

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

12

 

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

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

13

 

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

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

	3.2	 	At Closing:

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

14

 

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

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

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

15

 

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

16

 

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

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

	5.2	 	The Board shall be comprised of seven directors, five of whom shall be appointed by
the Jupiter Shareholders (each, a “Jupiter Sub Director”) and two of whom shall be appointed
by the Lucky Shareholders (each, a “Lucky Sub Director”). At least one

17

 

	 	 	Lucky Sub Director and at least three Jupiter Sub Directors shall be residents of the
Republic of Ireland. The Lucky Sub Directors shall not, and neither is authorized to, take
any actions on behalf of the Company or any of its Subsidiaries, other than actions
expressly authorized by this Agreement and actions contemplated by this clause 5 that are
incidental to the office of a director. In the event any Subsidiary of the Company shall
form a board of directors (or other similar governing body), or if the Board or any such
board of directors or governing body of a Subsidiary shall form any committee or
sub-committee, the rights of the Jupiter Shareholders and the Lucky Shareholders to appoint
directors to the Board shall apply mutatis mutandis to any such board of directors (or
other governing body) or to any such committee or sub-committee, and any such
representation shall be in direct proportion to the Jupiter Shareholders’ and the Lucky
Shareholders’ representation on the Board.

	5.3	 	Each director shall serve until the earlier of such director’s death, resignation or
replacement in accordance with this Agreement.

	5.4	 	The post of chairman shall be held by a Jupiter Sub Director, as designated by
Jupiter Parent. The chairman shall not have a casting vote. If the chairman for the time being
is unable to attend any meeting of the Board, Jupiter Parent shall be entitled to appoint
another Jupiter Sub Director to act as chairman at such meeting.

	5.5	 	Each of Jupiter Parent and Lucky Parent shall have the sole right to replace its
appointees to the Board (or fill any vacancy on the Board due to the death or resignation of
any of its appointees to the Board) at any time and from time to time in its discretion upon
written notice to the other Shareholders and to the Company. Any such replacement (or
appointment) shall take effect on the date on which notice of the same is received by the
other Shareholders and the Company or, if a later date is given in the notice, on such later
date. For clarity, no director may be removed from the Board by any person other than the
party that appointed such director.

	5.6	 	The party replacing a director shall indemnify and keep indemnified the Company
against any claim connected with the director’s removal from office.

	5.7	 	Any director may resign at any time by giving written notice to the Shareholders and
to the Company. Any such resignation shall take effect on the date on which notice of the same
is received by the Shareholders and the Company or, if a later date is given in the notice, on
such later date.

	5.8	 	A director may, and at the request of a director the secretary shall, call a meeting
of the Board; provided that (i) there shall be at least four meetings of the Board in
each

18

 

	 	 	Calendar Year and (ii) not more than one meeting of the Board may be called (or requested)
by the Lucky Sub Directors (taken together) during any three-month period.

	5.9  	 	Meetings of the Board may be held in person at such location in the Republic of
Ireland as may be agreed by the Shareholders (it being agreed that all meetings of the Board
shall be held with a majority of directors participating in the meeting physically present in
the Republic of Ireland). Subject to the prior sentence, any director may attend any meeting
of the Board by way of teleconference, videoconference or other similar communications
equipment so long as all directors participating in such meeting can hear one another at the
time of such meeting. Participation in a meeting of the Board via teleconference,
videoconference or other similar communications equipment in accordance with the preceding
sentence shall constitute presence in person at such meeting.

	5.10	 	The parties shall ensure that at least seven days’ notice of a meeting of the Board
is given to all directors then constituting the Board, accompanied by an agenda specifying in
reasonable detail the matters to be raised at the meeting. Matters absent from such agenda
may not be raised at a meeting of the Board unless at least one Jupiter Sub Director and one
Lucky Sub Director consent (it being agreed that the failure of any director to raise an
objection shall be deemed consent of such director for purposes of this sentence).

	5.11	 	A shorter period of notice of a meeting of the Board may be given if at least one
Jupiter Sub Director and one Lucky Sub Director so agree in writing; provided that the
prior consent of a Lucky Sub Director shall not be required if (a) the urgency of the matter
giving rise to the meeting in question requires the Board to promptly take action (as
reasonably determined by the Jupiter Sub Directors) and (b) at least 24 hours has elapsed from
the time a notice of such meeting was given to the Lucky Sub Directors.

	5.12	 	The quorum at any meeting of the Board (including adjourned meetings) for which
notice was provided is a majority of the directors then constituting the Board. For clarity,
neither Lucky Sub Director shall be required to be present for quorum purposes if the
requirements of the preceding sentence are otherwise satisfied. A majority of the directors
present at a meeting of the Board may adjourn the meeting, whether or not a quorum is present.

	5.13	 	No business shall be conducted at any meeting of the Board unless a quorum is
present at the beginning of the meeting and at the time when there is to be voting on any
business.

	5.14	 	If a quorum is not present within 30 minutes after the time specified for the
meeting of the Board in the notice of meeting, then the meeting shall be adjourned.

19

 

	5.15	 	The parties shall use their respective reasonable endeavours to ensure that every
meeting of the Board and every general meeting of the Company has the requisite quorum.

	5.16	 	The vote of a majority of the directors present at a meeting of the Board at which a
quorum is present shall be the act of the Board. For clarity, no vote of either Lucky Sub
Director shall be required if the requirements of the preceding sentence are otherwise
satisfied.

	5.17	 	The Board may take action in the absence of a meeting upon the written consent of
each director then constituting the Board.

	5.18	 	If any Jupiter Sub Director or any Lucky Sub Director is absent from a meeting of
the Board, the absent director may appoint any person to act as his alternate at such meeting.
For the purposes of such meeting the alternate director:

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

	5.19	 	The Shareholders and the Board shall regularly monitor and review the tax residency
status of the Company and, where necessary, take such action as may be required or considered
necessary or appropriate to ensure that the Company shall at all times remain resident for tax
purposes in the Republic of Ireland.

	5.20	 	The Shareholders and the Board shall procure that all key strategic decisions
relating to the Business shall be discussed, resolved and made in the Republic of Ireland.

	5.21	 	The parties hereby acknowledge that the provisions of this Agreement have been
structured with a view to permitting the financial results of the Company to be consolidated
with the consolidated financial statements of Jupiter PubliCo, subject to any accounting for
minority interest (the “Consolidation Objective”). In the event that, as a result of a change
in GAAP, IFRS or other Applicable Law after the date of this Agreement, Jupiter PubliCo is
advised by its independent auditors that the foregoing provisions of this clause 5 conflict
with the Consolidation Objective, the parties shall cooperate in good faith to prepare,
execute and deliver an amendment to this Agreement to revise such of the foregoing provisions
of this clause 5 as are necessary (based on the advice of such independent auditors) to give
effect to the Consolidation Objective;

20

 

	 	 	provided that nothing in this clause 5.21 shall require Lucky Parent or any of its
Affiliates to prepare, execute or deliver any such amendment in the event the terms of such
amendment could reasonably be expected to adversely affect, in any material respect, the
economic interests of the Lucky Shareholders in this Agreement.

	6.	 	Loan; Cash Contributions; Class C Shares

	6.1	 	At Closing Jupiter Sub-1 shall provide a cash contribution to the Company in the
amount of five hundred million dollars ($500,000,000.00) pursuant to the terms of the Initial
Contribution Agreement.

	6.2	 	Immediately following Closing, the Company and Jupiter Sub-2 shall enter into the
Loan Agreement, and the Company shall fund the Loan. In the event Jupiter Sub-2 repays all or
any portion of the principal amount of the Loan to fund or otherwise cover all or any portion
of a Loss for which the Company is entitled to indemnification under Article VIII of the Asset
Purchase Agreement (the amount of such Loss funded or covered by a Loan repayment, the
“Repayment Amount”) and the Company subsequently is indemnified for all or any portion of such
Loss at any time prior to the Positive Cash Flow Date (the amount of any such indemnity, not
to exceed the Repayment Amount, the “Indemnity Amount”), then upon receipt of the Indemnity
Amount the Company shall loan to Jupiter Sub-2 an amount equal to the Indemnity Amount (and in
connection therewith Jupiter Sub-2 hereby agrees to execute any and all amendments to the Loan
Agreement reasonably requested by the Company to increase the principal amount of the Loan to
reflect the additional loan to Jupiter Sub-2 referred to above). The parties agree that under
no circumstances shall interest or other charges accrue or be payable in respect of the Loan.

	6.3	 	Jupiter Sub-2 shall repay the principal amount of the Loan at the times and in the
amounts required by the Board. Once the Positive Cash Flow Date is determined to have
occurred or a decision is made by the parties to voluntarily wind-up the Company, Jupiter
Sub-2 shall promptly repay the then unpaid principal amount of the Loan (if any) (such amount,
the “Priority Dividend Amount”), and upon receipt thereof the Company shall declare and make a
payment on the Class O-J Shares (pro rata to the holders of the Class O-J Shares) equal to the
Priority Dividend Amount (such dividend, the “Priority Dividend”) pursuant to clause 7.1(b).
If for legal or other reasons the Priority Dividend cannot be paid by the Company on such
date, the parties shall procure that it shall be paid as soon thereafter as is possible.

	6.4	 	At any time after the earlier of (i) Jupiter Sub-2 has repaid the Loan in full and
(ii) the Positive Cash Flow Date, cash contributions shall be offered by Jupiter Sub-1 and
Lucky Sub-1 (pro rata in accordance with their respective Funding Percentage) at the times and

21

 

	 	 	in the amounts required by the Board, until Jupiter Sub-1 and Lucky Sub-1 (taken together)
shall have offered and the Company shall have accepted an aggregate of four hundred million
dollars ($400,000,000.00) pursuant to this clause 6.4 (the “Shared Contributions”). In
connection with any Shared Contribution, and with the prior written consent of Jupiter
Parent (not to be unreasonably withheld), Lucky Parent may designate any Affiliate of Lucky
Sub-1 to fund, on Lucky Sub-1’s behalf, such Shared Contribution, and in connection
therewith the parties shall enter into any reasonable arrangement requested by the Board to
implement such alternative funding of the Shared Contribution at issue. For clarity, any
such designation in accordance with the preceding sentence shall not relieve Lucky Sub-1
from its funding obligation with respect to the relevant Shared Contribution at issue,
unless and until its allocable portion of such Shared Contribution is funded by the
applicable designee.

	6.5	 	Notwithstanding anything to the contrary, (i) the amount of any Loan repayment or
cash contribution required by the Board shall not be greater than the projected cash needs of
the Company and its Subsidiaries during the 180 days following the applicable repayment or
contribution, as determined by the Board in good faith (for clarity, nothing in this subclause
(i) shall limit the number of Loan repayments or capital contributions the Board may require
during any period), (ii) in the event Jupiter Sub-1 repays all or any part of the Loan
pursuant to clause 6.3 at any time after the Positive Cash Flow Date in an amount in excess of
the Priority Dividend Amount, Jupiter Sub-1 and Lucky Sub-1 shall enter into any reasonable
arrangement requested by the Board so that such excess is treated and funded as a Shared
Contribution under clause 6.4 and (iii) no party shall be required to provide cash
contributions or other capital to the Company in any amount or at any time other than as
expressly provided for in this clause 6. For clarity, the aggregate amount of capital
contributions required to be offered by Jupiter Sub-1 and Lucky Sub-1 under clause 6.4 shall
be permanently reduced, on a dollar-for-dollar basis, as each contribution is made. All
contributions pursuant to clause 6.4 shall be denominated in United States dollars, and shall
be payable in integrals of $1.00. In connection with each contribution pursuant to clause
6.4, the relevant contributing Shareholder and the Company shall execute a Contribution
Agreement in respect of each such capital contribution.

	6.6	 	Each of Jupiter Sub-1 and Lucky Sub-1 agree to fund any and all capital contributions
they are required to offer pursuant to clause 6.4 in immediately available funds in United
States dollars within ten Business Days after the Board shall have provided written notice of
the same (it being agreed that the Company hereby accepts any and all contributions offered
pursuant to clause 6.4 without further action by any party).

	6.7	 	In the event Jupiter Sub-2 fails to satisfy a repayment requirement in respect of the
Loan under clause 6.3, or in the event Jupiter Sub-1 or Lucky Sub-1 fails to fund their share
of a Shared Contribution for any reason (any such failure, a “Funding Default”), the

22

 

	 	 	Company and the non-defaulting Shareholder shall be entitled, in connection with such
Funding Default, to take all actions available under Applicable Law to enforce the terms of
this Agreement. In the event of a Funding Default by Jupiter Sub-1 or Jupiter Sub-2, the
Company shall provide Lucky Parent with prompt written notice thereof.

	6.8	 	In the event a Funding Default shall occur with respect to any Shared Contribution,
the non-defaulting Shareholder shall have the option (the “Refund Option”), exercisable by
submitting written notice to the Company within thirty days of such default, to not proceed
with the funding of its allocable portion of such Shared Contribution (in which case any
amounts actually funded by the non-defaulting Shareholder in respect of such Shared
Contribution shall be promptly refunded by the Company). If the Refund Option is not
exercised, and without prejudice to clause 12.1(a), the non-defaulting Shareholder shall
designate, by submitting written notice to the Company within fifteen days of the expiration
or waiver of the Refund Option, the treatment of its share of such Shared Contribution as
either (i) Indebtedness of the Company payable as and when demanded by the non-defaulting
Shareholder and accruing interest at a rate per annum equal to 6.00% from the date initially
funded or (ii) a subscription of Class C Shares, in which case the Company shall (x) issue to
the non-defaulting Shareholder one fully-paid Class C Share for every one dollar of the
related contribution funded by the non-defaulting Shareholder, (y) enter such non-defaulting
Shareholder in the register of members of the Company as the holder of such Class C Shares and
(z) if requested by such non-defaulting Shareholder, issue a share certificate to such
non-defaulting Shareholder in respect of the Class C Shares so issued to such non-defaulting
Shareholder (which certificate shall contain appropriate legends regarding transferability).
In the event the non-defaulting Shareholder does not make such a designation within the
relevant fifteen-day period, the Shareholder shall be deemed to have selected the issuance of
Class C Shares under subclause (ii) above. If the Refund Option is exercised, and without
prejudice to clause 12.1(a), the necessary funds may be raised as determined by the Board,
including by obtaining external debt financing.

	6.9	 	In the event the Board determines that the Company requires funds in excess of those
provided for by clauses 6.3 or 6.4, the Board shall, in the case of each such determination,
first offer Jupiter Sub-1 and Lucky Sub-1 the opportunity to provide additional cash
contributions to the Company. Any such opportunity shall be offered to Jupiter Sub-1 and
Lucky Sub-1 pro rata in accordance with their respective Funding Percentage. For clarity, no
contribution shall be made pursuant to this clause 6.9 unless both Jupiter Sub-1 and Lucky
Sub-1 (or any designee as provided below) fund the full amount offered to them in accordance
with the preceding sentence. The Company, Jupiter Sub-1 and Lucky Sub-1 (or any designee as
provided below) shall execute a Contribution Agreement in respect of any and all contributions
offered pursuant to this clause 6.9. In connection with any contribution offered pursuant to
this clause 6.9, and with the prior written consent of Jupiter Parent (not to be unreasonably
withheld), Lucky

23

 

	 	 	Parent may designate any Affiliate of Lucky Sub-1 to fund, on Lucky Sub-1’s behalf, its
allocable portion of such contribution, and in connection therewith the parties shall enter
into any reasonable arrangement requested by the Board to implement such alternative
funding of the contribution at issue.

	6.10	 	In the event one of Lucky Sub-1 or Jupiter Sub-1 declines to provide a contribution
offered pursuant to clause 6.9 (the party not so declining, with respect to any such offer, an
“Electing Holder”) and the Electing Holder wishes to provide all or any portion of the
required funds, the Electing Holder shall have the option to contribute to the Company all or
any portion of the required funds. Upon the funding by the Electing Holder of any such
contribution, the Company shall: (a) issue to the Electing Holder one fully-paid Class C Share
for every one dollar of the contribution funded by the Electing Holder; (b) enter such
Electing Holder in the register of members of the Company as the holder of such Class C
Shares; and (c) if requested by such Electing Holder, issue a share certificate to such
Electing Holder in respect of the Class C Shares so issued to such Electing Holder (which
certificate shall contain appropriate legends regarding transferability). In the event both
Lucky Sub-1 and Jupiter Sub-1 decline to provide a contribution pursuant to clause 6.9 and
this clause 6.10, the necessary funds may be raised as determined by the Board, including by
obtaining external debt financing.

	7.	 	Applications of cash and priorities on a winding up

	7.1	 	Subject to the requirements of Applicable Law, within 75 days after each Calendar
Quarter (and on such other days the Board may determine), the Company shall transfer all cash
(if any) then available (as determined by the Board in good faith after taking into account
all projected cash requirements and needs of the Company over a foreseeable period (including
the repayment or payment of any Indebtedness or other liabilities), all projected revenue over
such period and all appropriate reserves) to the Shareholders in the following priority:

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

24

 

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

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

25

 

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

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

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

26

 

	 	 	 	any person in any way to do, or attempt to do, anything prohibited by subclauses
(i) or (ii) above (the actions prohibited by subclauses (i), (ii) and (iii) are
collectively referred to as the “Competitive Activities”); or

	 	(b)	 	use any Confidential Information for its own benefit or the benefit of any
person other than the Company and its Subsidiaries or third parties acting on
behalf of either of the foregoing;

provided, however, that nothing in clause 8.1(a) shall apply to or
prevent Lucky Parent or any of its Affiliates from (A) exercising any of their rights
(or performing any of their obligations) under the License and Grant-Back Agreement or
(B) researching, developing, manufacturing, and/or commercializing a composition of
matter or article of manufacture outside of the Field where such composition of matter
or article of manufacture is to be used in combination therapy (but not as a combination
product) with a Product sold by the Company, Wyeth or any of their Affiliates at the
time of such research, development, manufacture or commercialization; provided
that such activities are in compliance with the terms and subject to the conditions of
Section 2.4 of the Collaboration Agreement assuming for purposes of this proviso that
Lucky Parent and its Affiliates are bound by the provisions of such Section. For the
avoidance of doubt, there is no express or implied license granted by the Company to
Lucky Parent or any of its Affiliates under this clause 8.1. Lucky Parent, on behalf of
itself and each of its Affiliates, hereby agrees that any inventions conceived and/or
reduced to practice in conducting any activities described above shall be included as
patent rights under the terms and subject to the conditions of Section 2.4 of the
License and Grant-Back Agreement.

	8.2	 	Until the later of the fifth anniversary of the Closing and the second anniversary of
the date on which none of Jupiter Parent or any of its Affiliates is a Shareholder, Jupiter
Parent and Jupiter Sub-1 shall not, and each shall cause their respective Affiliates (other
than the Company and its Subsidiaries) not to, alone or in collaboration with or through the
grant of rights to any Third Party (a) engage in activities or businesses, or establish any
new businesses, that involve any Competitive Activities or (b) use any Confidential
Information for its own benefit or the benefit of any person other than the Company and its
Subsidiaries or third parties acting on behalf of either of the foregoing.

	8.3	 	Clause 8.1(a) shall be deemed not breached solely as a result of the ownership by
Lucky Parent or any of its Affiliates (and clause 8.2(a) shall be deemed not breached solely
as a result of the ownership by Jupiter Parent or any of its Affiliates) of: (i) less than an
aggregate of 5% of any class of stock of a person engaged, directly or indirectly, in any
Competitive Activities; provided, however, that such stock is listed on a
national securities exchange; or (ii) less than 5% in aggregate principal amount of any series
of indebtedness of a person engaged, directly or indirectly, in any Competitive Activities.
Notwithstanding clauses 8.1(a) and 8.2(a), it is understood and agreed that nothing in this

27

 

	 	 	Agreement shall at any time limit or otherwise prevent the Shareholders or any of their
respective Affiliates from pursuing and/or consummating (whether by way of merger,
purchase, scheme of arrangement or otherwise) one or more acquisitions of or business
combinations with another company or business that engages in Competitive Activities (the
portion of such other company or business involving Competitive Activities, the “Competing
Assets”) so long as all of the Competing Assets are sold, divested or otherwise disposed of
within one year from the closing of the applicable acquisition or business combination
giving rise to the Competing Assets at issue (and, for clarity, no Confidential Information
shall be used to benefit any such Competing Assets). For clarity, no license or other
rights under the Business Intellectual Property are granted to Lucky Parent or any of its
Affiliates by virtue of this clause 8.3.

	8.4	 	Notwithstanding any other provision of this Agreement, it is understood and agreed
that remedies at law would be inadequate in the case of any breach of the covenants contained
in clause 8.1 or clause 8.2. It is accordingly agreed that any non-defaulting Shareholder and
the Company shall be entitled to equitable relief, including an injunction or injunctions to
prevent breaches of this clause 8 and to enforce specifically the performance of the terms and
provisions of this Agreement, without proof of actual damages (and the parties hereto hereby
waive any requirement for the securing or posting of any bond in connection with such remedy),
this being in addition to any other remedy to which such non-defaulting Shareholder and the
Company are entitled at law or in equity. The parties further agree not to assert that such a
remedy, including a remedy of specific enforcement, is unenforceable, invalid, contrary to law
or inequitable for any reason, nor to assert that a remedy of monetary damages would provide
an adequate remedy for any such breach.

	8.5	 	Each of the covenants in this clause 8 is considered fair and reasonable by the
parties. If any such restriction shall be found to be unenforceable but would be valid if any
part of it were deleted or the period or area of application reduced, the restriction shall
apply with such modifications as may be necessary to make it valid and effective.
	 
	8.6	 	Notwithstanding anything herein to the contrary, the restrictions set forth in this
clause 8 shall immediately terminate and be of no further force or effect upon the granting of
a Close-Out License.
	 
	9.	 	Books and Records
	 
	9.1	 	The Company shall maintain or cause to be maintained appropriate books and records,
in accordance with the requirements of all Applicable Laws.

28

 

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

29

 

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

	 	(a)	 	the applicable transferee shall have executed and delivered a Deed Poll of
Adherence pursuant to which it shall agree to become bound by the provisions of
this Agreement as they pertain to the transferring Shareholder with respect to the
Shares so Transferred (and shall become entitled to the rights and privileges of
such transferring Shareholder with respect to the Shares so Transferred) as if it
were named an original party to this Agreement; and

	 	(b)	 	Jupiter Parent or Lucky Parent (as the case may be) shall acknowledge and
agree that its guarantee under clause 20 shall, from and after such Transfer,
extend to the obligations, covenants, agreements and duties then applicable to the
relevant transferee under this Agreement without prejudice or limitation of any
kind.

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

30

 

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

	 	(a)	 	the applicable transferee shall have executed and delivered a Deed Poll of
Adherence pursuant to which it shall agree to become bound by the provisions of
this Agreement as they pertain to the Transferring Shareholders (and shall become
entitled to the rights and privileges of such Transferring Shareholders) as if it
were named an original party to this Agreement; and

	 	(b)	 	the applicable transferee provides a written certification to the
Non-Transferring Shareholder (which is reasonably satisfactory to the
Non-Transferring Shareholder) that from and after such transfer it will satisfy its
obligations under this Agreement (it being understood that in the event the
Non-Transferring Shareholder is not reasonably satisfied with such certification,
the applicable transferee shall be entitled to submit a replacement certification
(which also must be reasonably satisfactory to the Non-Transferring Shareholder)
accompanied by adequate assurance of its performance by way of a parent guarantee,
security or otherwise).

31

 

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

	 	(a)	 	a Funding Default by Jupiter Sub-1, Jupiter Sub-2 or Lucky Sub-1, as
applicable, which default is not cured within thirty days after receipt of a
default notice from the Company or any Shareholder;

	 	(b)	 	with respect to the Lucky Shares, a material breach of clause 8.1(a) of
this Agreement which breach is not cured within thirty days after receipt of a
default notice from the Company or any Shareholder;

32

 

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

33

 

	 	 	 	For clarity, the solvent re-organization or restructuring by any Shareholder or any of
their respective holding companies shall not constitute an Obligatory Transfer Event
under subclause (e) to (m) above if no person other than Jupiter PubliCo, Lucky Parent
or any of their wholly owned Subsidiaries receives shares in connection therewith.

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

34

 

	 	 	Transfer Notice in respect of such Obligatory Transfer Event was delivered, or deemed
delivered, under clause 12.2.

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

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

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

35

 

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

36

 

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

	 	(a)	 	the Non-Transferring Shareholder exercises its right to purchase Shares
pursuant to the applicable First Offer Notice (in the case of a Transfer pursuant
to clause 11.3); or

	 	(b)	 	the Non-Triggering Party delivers a Call Notice (in the case of a Transfer
pursuant to clauses 12.4 or 12.5).

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

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

37

 

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

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

38

 

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

	 	(a)	 	is irrevocably authorised to appoint any person to Transfer the Shares on
such Triggering Party’s or such Transferring Shareholder’s behalf, as applicable,
and to do anything else that the Non-Triggering Party or Non-Transferring
Shareholder, as applicable, reasonably requests to complete the Transfer (including
removing the Triggering Party’s or Transferring Shareholder’s, as applicable,
directors from the Board); and

	 	(b)	 	may receive the applicable purchase price in trust for such Triggering
Party or Transferring Shareholder, as applicable, and shall provide the
Non-Triggering Party or Non-Transferring Shareholder, as applicable, with a receipt
that shall fully discharge the Non-Triggering Party or Non-Transferring
Shareholder, as applicable.

	15.	 	Termination and liquidation

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

	 	(a)	 	when, as a result of permitted Transfers of Shares, only one person
remains as legal and beneficial holder of all of the Shares;

	 	(b)	 	when a resolution is passed by all Shareholders or the requisite
creditors, or an order made by a court or other competent body or person
instituting a process that shall lead to the Company being wound up and its assets
being distributed among the Company’s creditors, shareholders or other
contributors; or

	 	(c)	 	with the written consent of each Shareholder.

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

	 	(a)	 	clause 1 (Interpretation);

	 	(b)	 	clause 8 (Agreement not to compete) (except for any termination after the
granting of a Close-Out License);

	 	(c)	 	clause 10 (Tax matters);

	 	(d)	 	clause 15 (Termination and liquidation);

	 	(e)	 	clause 17 (Confidentiality);

	 	(f)	 	clause 22 (Whole agreement);

	 	(g)	 	clause 24 (Amendment and waiver);

	 	(h)	 	clause 25 (Costs);

39

 

	 	(i)	 	clause 28 (Notice);

	 	(j)	 	clause 29 (Severance); and

	 	(k)	 	clause 33 (Governing law and jurisdiction).

	15.3	 	Termination of this Agreement shall not affect any rights or liabilities that the
parties have accrued under this Agreement prior to termination.

	15.4	 	Where the Company is to be wound up and its assets distributed, the Board shall deal
with the interests and assets of the Company and shall endeavour to ensure that:

	 	(a)	 	all existing contracts of the Company are performed to the extent that
there are sufficient resources;

	 	(b)	 	the Company shall not enter into any new contractual obligations; and

	 	(c)	 	the Company is dissolved and its assets are distributed as soon as
practical in the manner and order of priority set forth in clause 7.1.

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

40

 

	 	(a)	 	which any party may have or acquire (whether before or after the date of
this Agreement) in relation to the customers, suppliers, business, assets or
affairs of the Company or any of its Subsidiaries; or

	 	(b)	 	which relates to the contents of this Agreement (or any agreement or
arrangement entered into in connection with this Agreement).

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

	 	(a)	 	is or becomes public knowledge other than as a direct or indirect result
of the information being disclosed in breach of this Agreement;

	 	(b)	 	any party can establish to the reasonable satisfaction of the other
parties that it acquired the information from a source not connected with the other
parties or their Affiliates and that such source was not then under any obligation
of confidence in respect of the information;

	 	(c)	 	any party can establish to the reasonable satisfaction of the other
parties that the information was known to the first party before the date of this
Agreement and that, at the time of disclosure, it was not under any obligation of
confidence in respect of the information (for purposes of this subclause (c), Lucky
Parent and its Affiliates shall be deemed to not have knowledge of any matters
relating to the Acquired Assets (as defined in the Asset Purchase Agreement)); or

	 	(d)	 	the parties agree in writing that it is not confidential.

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

	 	(a)	 	on a need-to-know basis to such party’s directors, officers and employees,
and to such party’s consultants working on such party’s premises, to the extent
such disclosure is reasonably necessary for a purpose related to the operation of
this Agreement;

	 	(b)	 	with the prior written consent of the other parties, such consent not to
be unreasonably withheld (it being agreed that if such a consent is provided, the
relevant third party shall, prior to any disclosure, execute a confidentiality
agreement reasonably acceptable to the parties);

	 	(c)	 	as may be required by law or by the rules of any recognised stock
exchange, or governmental or other regulatory body (and only to the extent so
required), in which case the party concerned shall, if practicable, supply a copy
of the required disclosure to the other parties before it is disclosed and
incorporate any

41

 

	 	 	 	amendments or additions reasonably required by the other parties and which would
not thereby prevent the disclosing party from complying with its legal
obligations; or

	 	(d)	 	to any tax authority to the extent reasonably required (and only to the
extent so required) for the purposes of the tax affairs of the party concerned or
any of its Affiliates.

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

	 	(a)	 	to keep it confidential in accordance with the terms of this Agreement;
and

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

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

42

 

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

43

 

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

44

 

	 	 	 from the royalties otherwise payable in respect of such calendar year; provided
that (i) no such deduction shall apply for any consideration or royalties paid in respect
of any patent rights set forth on Schedule 4 of the Royalty Agreement, including any
Blocking Third Party Intellectual Property or Enhancing Third Party Intellectual Property
set forth on such Schedule 4, and (ii) the aggregate amount of any and all deductions under
this sentence for any calendar year shall not be greater than an amount which would have
the effect of decreasing the royalties otherwise payable in respect of such calendar year
by more than twenty-five percent (25%). In the event the Close-Out Licensee seeks any such
deduction for non-monetary consideration paid for Blocking Third Party Intellectual
Property or Enhancing Third Party Intellectual Property, a deduction shall be made based
upon such non-monetary consideration’s fair value as mutually determined by the Close-Out
Licensee and Jupiter Sub-1 (or its designee) in good faith. The Company, Jupiter Sub-1 (or
its designee) and the Close-Out Licensee shall use good-faith efforts to enter into a
written agreement providing for the Close-Out License and related royalty payment terms as
soon as reasonably practical after receipt of the Election Notice.

	18.8	 	Any payments made by Lucky Parent or its Affiliates to Jupiter Sub-1 (or its
designee) pursuant to clause 18.7 shall be subject to deduction or withholding of any taxes as
required by Applicable Law. Any amounts so deducted or withheld shall be paid over by Lucky
Parent or its Affiliate (as applicable) to the applicable tax authority, and upon request by
the appropriate party, Lucky Parent or its Affiliate (as applicable) will furnish that party
with proof of payment of such tax. The parties shall cooperate reasonably to minimize such
taxes in accordance with Applicable Law. Each party shall cooperate reasonably as requested
by another party in completing and filing any documents required under the provisions of any
Applicable Law in connection with the making of any required tax payment or withholding
payment, or in connection with any claim to a refund of or credit for such payment.

	18.9	 	In the event the consummation of the transactions contemplated by the Asset Purchase
Agreement and the Specified Collaboration Documents give rise to an obligation on the part of
Wyeth, the Company and/or any of their Subsidiaries (each of the foregoing, an “Indemnitee”)
to pay any royalties or other consideration (or to pay any increased or additional royalties
or other consideration) to any person (any such person, a “Rights Holder”) under any Contract
to which, immediately following the Closing, any Indemnitee is party, or to which any of the
properties or assets of any Indemnitee is subject, then in each such case Lucky Sub-1 shall
indemnify any and all of the Indemnitees for any payments any of them may be required to make
in respect of any such royalties or other consideration. The indemnification payments
pursuant to the foregoing sentence shall be made by Lucky Sub-1 in the amounts that the
applicable Indemnitee is required to make the related royalty or other payment to the
applicable Rights Holder (and no such indemnification payment shall be subject to set-off,
deduction or limitation of any kind) upon receipt by Lucky Sub-1 of a certificate of an

45

 

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

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

46

 

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

	18.11	 	Any payments made to a non-Electing R&D Holder (or its designee) pursuant to clause
18.10 shall be subject to deduction or withholding of any taxes as required by Applicable

47

 

	 	 	Law. Any amounts so deducted or withheld shall be paid over by the Electing R&D Holder to
the applicable tax authority, and upon request by the appropriate party, the Electing R&D
Holder will furnish that party with proof of payment of such tax. The parties shall
cooperate reasonably to minimize such taxes in accordance with Applicable Law. Each party
shall cooperate reasonably as requested by another party in completing and filing any
documents required under the provisions of any Applicable Law in connection with the making
of any required tax payment or withholding payment, or in connection with any claim to a
refund of or credit for such payment.

	19.	 	Transactions with Wyeth
	 
	19.1	 	Neither Jupiter Parent nor any of its Affiliates will engage in any transaction with
Wyeth or any of its Affiliates if such transaction involves (a) the forfeiture or modification
by the Company, in a manner adverse to the Company, of one or more rights under the
Collaboration Agreement and (b) the receipt by Jupiter Parent or any of its Affiliates (other
than the Company and its Subsidiaries) of one or more rights against (or benefits owing from)
Wyeth or any of its Affiliates with respect to matters not related to the Collaboration
Agreement under circumstances in which the transactions described in this clause (b) would not
have occurred absent the transaction described in clause (a) above.
	 
	20.	 	Parent guarantees
	 
	20.1	 	Jupiter Parent hereby irrevocably guarantees, as principal and not as surety, (a)
the due and punctual payment of all monetary obligations now or hereafter due and payable by
Jupiter Sub-1 or Jupiter Sub-2 pursuant to this Agreement or the Loan Agreement, and (b) the
full and complete performance of all covenants, agreements, duties and obligations applicable
to the Jupiter Shareholders or Jupiter Sub-2 pursuant to this Agreement or the Loan Agreement,
whether such covenants, agreements, duties or obligations are outstanding on the date hereof
or arise or are incurred at any time or times hereafter, in each case without setoff or
reduction for any purpose. The guarantee of Jupiter Parent shall automatically be released at
the time and to the extent provided in clauses 11.4 or 15.
	 
	20.2	 	Lucky Parent hereby irrevocably guarantees, as principal and not as surety, (a) the
due and punctual payment of all monetary obligations now or hereafter due and payable by Lucky
Sub-1 or Lucky Sub-2 pursuant to this Agreement or the Royalty Agreement, and (b) the full and
complete performance of all covenants, agreements, duties and obligations applicable to the
Lucky Shareholders or Lucky Sub-2 pursuant to this Agreement or the Royalty Agreement, whether
such covenants, agreements, duties or obligations are outstanding on the date hereof or arise
or are incurred at any time or times hereafter, in each case without setoff or reduction for
any purpose. The guarantee of

48

 

	 	 	Lucky Parent shall automatically be released at the time and to the extent provided in
clauses 11.4 or 15.

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

49

 

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

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

	 	(b)	 	shall be:

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

50

 

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

	28.2	 	The addresses for service of notice are:

	 	(a)	 	Janssen Pharmaceutical
	 
	 	 	 	State Road 933 KM 0.1

Mamey Ward

Gurabo, PR 00778

	 
	 	 	 	and
	 
	 	 	 	Janssen Pharmaceutical

HC 02, Box 19250

Gurabo, Puerto Rico 00778

Attention: Ivan Cartagena, Director

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

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

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

Global Head Business Development

Tel: 732-524-0400

Fax: 732-846-2058
	 
	 	 	 	and a copy to:
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

Attention: Office of General Counsel

Tel: 732-524-0400

Fax: 732-524-2788

	 	(b)	 	Janssen Alzheimer Immunotherapy (Holding) Limited
	 
	 	 	 	Little Island Industrial Estate

Little Island, County Cork

Republic of Ireland

Attention: Corporate Secretary

51

 

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

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

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

Global Head Business Development

Tel: 732-524-0400

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

Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788

	 	(c)	 	Latam Properties Holdings
	 
	 	 	 	c/o Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

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

Business Development

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

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788

	 	(d)	 	JNJ Irish Investments ULC
	 
	 	 	 	c/o Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

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

Business Development

52

 

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

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

Fax number: 732-524-2788

	 	(e)	 	Elan Corporation, plc
	 
	 	 	 	Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713

	 	(f)	 	Crimagua Limited
	 
	 	 	 	Treasury Building , Lower Grand Canal Street, Dublin 2, Ireland

For the attention of: Liam Daniel, Company Secretary

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

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

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713

	 	(g)	 	Elan Pharma International Limited
	 
	 	 	 	Monksland, Athlone, County Westmeath, Ireland

For the attention of: VP Legal

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

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

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713

	 	(h)	 	Janssen Alzheimer Immunotherapy
	 
	 	 	 	Little Island Industrial Estate, Little Island, County Cork, Republic of Ireland

53

 

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

New Brunswick, NJ 08933

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

Business Development

Fax number: 732-846-2058
	 
	 	 	 	Johnson & Johnson

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

For the attention of: Office of General Counsel

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

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

For the attention of: Liam Daniel, Company Secretary

Fax number: +353 1 709 4713

	28.3	 	A notice is deemed to have been received:

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

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

54

 

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

[Remainder of page intentionally left blank]

55

 

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

	 	 	 	 	 	 	 
	 	 	JANSSEN PHARMACEUTICAL,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ Ivan Cartagena
 

Name: Ivan Cartagena
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	JANSSEN ALZHEIMER IMMUNOTHERAPY	 	 
	 	 	(HOLDING) LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ Gerard Collins
 

Name: Gerard Collins
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	LATAM PROPERTIES HOLDINGS,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ Alberto F. Navarro Dial
 

Name: Alberto F. Navarro Dial
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	JNJ IRISH INVESTMENTS ULC,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ Paul G. Wulfing
 

Name: Paul G. Wulfing
	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	JANSSEN ALZHEIMER IMMUNOTHERAPY,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ Gerard Collins
 

Name: Gerard Collins
	 	 
	 

	 	 	 	Title: Director	 	 

Signature Page to the Shareholders’ Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ELAN CORPORATION, PLC,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ William Daniel
 

Name: William Daniel
	 	 
	 

	 	 	 	Title: EVP, Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	CRIMAGUA LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ William Daniel
 

Name: William Daniel
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	ELAN PHARMA INTERNATIONAL LIMITED,	 	 
	 
	 	 	 	 	 	 
	 

	 	by
	 	/s/ William Daniel
 

Name: William Daniel
	 	 
	 

	 	 	 	Title:Director	 	 

Signature Page to the Shareholders’ Agreementexv4wxaywx8y

 

Exhibit 4(a)(8)

EXECUTION COPY

JANSSEN ALZHEIMER IMMUNOTHERAPY

(F/K/A JUNO NEUROSCIENCES)

Little Island Industrial Estate, Little Island

County Cork, Republic of Ireland

September 17, 2009

Elan Pharma International Limited

Monksland, Athlone

County Westmeath, Ireland

Royalty Agreement

          Reference is made to the Asset Purchase Agreement dated as of July 2, 2009 among Janssen
Pharmaceutical, an Irish Unlimited Company (“Jupiter Parent”), Janssen Alzheimer
Immunotherapy (f/k/a Juno Neurosciences), an Irish Unlimited Company (the “Company”), Elan
Corporation, plc, an Irish Public Limited Company (“Lucky Parent”), Crimagua Limited, an
Irish Limited Company (“Lucky Sub-1”) and the other subsidiaries of Lucky Parent party
thereto (as amended from time to time, the “Asset Purchase Agreement”) and the transactions
contemplated thereby (collectively, the “Transactions”), including as set forth in: the
Shareholders’ Agreement dated as of the date hereof (as amended from time to time, the
“Shareholders’ Agreement”), by and among Jupiter Parent, Janssen Alzheimer Immunotherapy
(Holding) Limited (f/k/a Juno Neurosciences (Holding) Limited), an Irish Limited Company
(“Jupiter Sub-1”), Latam Properties Holdings, an Irish Unlimited Company, JNJ Irish
Investments ULC, a Canadian Unlimited Liability Company, Lucky Parent, Lucky Sub-1, Elan Pharma
International Limited, an Irish Limited Company (“Lucky Sub-2”) and the Company; and the
Research, Development and Commercialization Agreement dated as of March 17, 2000 among Lucky Sub-1
(as successor in interest to Lucky Sub-2, itself a successor in interest to Neuralab Limited) and
Wyeth (formerly known as American Home Products Corporation), a Delaware corporation (as assigned
to Company and amended as of the date hereof, and as further amended from time to time in
accordance with the Shareholders’ Agreement, the “Collaboration Agreement”).

          Capitalized terms used but not defined in this agreement (this “Royalty Agreement”)
shall have the meanings ascribed thereto in the Asset Purchase Agreement. Section 9 hereof sets
forth the definitions of certain capitalized terms used herein.

ARTICLE A. ROYALTIES ON PRODUCTS UNDER COLLABORATION AGREEMENT

1A. Royalty Rate.

          In consideration for the Transactions and the investment by Lucky Parent and its subsidiaries
in the research and development of Products under the Collaboration Agreement, the Company hereby
agrees that, subject to the terms and conditions of the Shareholders’ Agreement, which is
incorporated by reference herein, and to the other terms and conditions of this Royalty

 

2

Agreement (including without limitation Section 4A), royalties shall accrue to Lucky Sub-2 on
Collaboration Product Net Sales during the Royalty Term as follows:

	 	 	 	 	 
	Calendar Year Collaboration Product Net Sales (US Dollars)	 	Royalty Rate
	Less than or equal to $1,000,000,000
	 	 	0	%
	Greater than $1,000,000,000 and less than or equal to $2,000,000,000
	 	 	5	%
	Greater than $2,000,000,000 and less than or equal to $5,000,000,000
	 	 	7	%
	Greater than $5,000,000,000
	 	 	9	%

          Notwithstanding the foregoing, (i) if the Activation Date is not January 1 of a calendar year
(such calendar year in which the Activation Date occurs, the “First Year”), the dollar
thresholds under the caption “Calendar Year Collaboration Product Net Sales” in the table above
shall, solely with respect to the applicable portion of the First Year, be proportionally reduced
based on the number of full Calendar Quarters in the First Year from and including the Activation
Date to and including the earlier of December 31 of the First Year and the Termination Date
(e.g., assuming the Termination Date does not occur during the First Year, a 75% reduction
if the Activation Date is October 1) and (ii) if the Termination Date is not December 31 of a
calendar year (such calendar year in which the Termination Date occurs, the “Last Year”),
the dollar thresholds under the caption “Calendar Year Collaboration Product Net Sales” in the
table above shall, solely with respect to the applicable portion of the Last Year, be
proportionally reduced based on the number of full Calendar Quarters from and including the later
of January 1 of the Last Year and the Activation Date to and including the Termination Date
(e.g., assuming the Activation Date does not occur in the Last Year, a 25% reduction if the
Termination Date is September 30).

2A. Applicability of Royalty Rate to Collaboration Product Net Sales.

          Royalties under this Royalty Agreement on Collaboration Product Net Sales in a calendar year
(or applicable portion thereof in the case of the First Year and Last Year) shall accrue at the
rate applicable to the portion of Collaboration Product Net Sales within each of the Collaboration
Product Net Sales levels set forth in the table above during such calendar year (as proportionately
reduced pursuant to the last paragraph in Section 1 hereof). For example, if, for a calendar year
during the Royalty Term, Collaboration Product Net Sales totaled $2,500,000,000, then (in the
absence of any adjustments pursuant to Section 4A) the royalties accruing hereunder for such
calendar year would equal the sum of (i) the royalties with respect to the first $1,000,000,000 of
Collaboration Product Net Sales at the first-level percentage of zero percent (0%) ($1,000,000,000
x 0.0 = $0), plus (ii) the royalties with respect to the next $1,000,000,000 of Collaboration
Product Net Sales at the second-level percentage of five percent (5%) ($1,000,000,000 x 0.05 =
$50,000,000), plus (iii) the royalties with respect to the remaining $500,000,000 of Collaboration
Product Net Sales at the third-level percentage of seven percent (7%) ($500,000,000 x 0.07 =
$35,000,000), for a total accrued royalty of $85,000,000.

3A. Royalty Term.

 

3

          Royalties under this Royalty Agreement shall accrue in respect of Collaboration Product Net
Sales made during the Royalty Term. No other royalty or other consideration shall accrue under
this Royalty Agreement (or be payable under the Shareholders’ Agreement), including without
limitation in respect of Collaboration Product Net Sales made before the Activation Date or after
the Termination Date.

4A. Royalty Adjustments.

          Notwithstanding anything herein to the contrary, if, as of any date during the Royalty Term,
there shall be no Valid Claim of any Closing Date IP Covering a Product in a country where such
Product is sold by a Party or its Sublicensees, and no Valid Claim of any Closing Date IP Covering
the Manufacture of Product where the R&D Candidate or other active pharmaceutical ingredient of
such Product is manufactured by or on behalf of a Party or its Sublicensees, under the
Collaboration Agreement (the first such date, with respect to such Product in such country, being
the “Fall-Away Date”), then for purposes of calculating royalties on Collaboration Product
Net Sales under this Royalty Agreement, Collaboration Product Net Sales of such Product in such
country shall be excluded from and after the Fall-Away Date for such Product in such country;
provided that, in the event any Fall-Away Date does not occur on the last day of a Calendar
Quarter, such Fall-Away Date shall be deemed to have occurred with respect to the relevant Product
in the relevant country on the last day of the Calendar Quarter in which the Fall-Away Date occurs.

          In the event that a Party or any of its Sublicensees under the Collaboration Agreement shall
be required to pay any consideration or royalties for a license or rights to any Blocking Third
Party Intellectual Property or Enhancing Third Party Intellectual Property during any calendar
year, the Company shall be entitled to deduct fifty percent (50%) of such consideration or
royalties actually paid to any third party for such license or rights from the royalties otherwise
accruing under this Royalty Agreement in respect of such calendar year; provided that (i)
no such deduction shall apply for any consideration or royalties paid in respect of any patent
rights set forth on Schedule 4 hereto, including any Blocking Third Party Intellectual
Property or Enhancing Third Party Intellectual Property set forth on Schedule 4 hereto, and
(ii) the aggregate amount of any and all deductions under this sentence for any calendar year shall
not be greater than an amount which would have the effect of decreasing the royalties otherwise
accruing hereunder in respect of such calendar year by more than twenty-five percent (25%). Any
deduction the Company seeks from royalties accruing under this Royalty Agreement for non-monetary
consideration paid for Blocking Third Party Intellectual Property or Enhancing Third Party
Intellectual Property shall be at such consideration’s fair monetary value as mutually determined
by the Company and Lucky Sub-2 in good faith.

          Except as set forth in this Section 4A or as required by law, royalties accruing under this
Royalty Agreement shall not be subject to any downward adjustment.

5A. Subordination; Payments.

          Any and all royalties accruing hereunder shall be payable in the amounts and on the dates
provided therefor in clause 7 of the Shareholders’ Agreement. No interest or other premium shall
be payable in respect of any royalties accruing under this Royalty Agreement.

 

4 

          Lucky Sub-2 acknowledges and agrees that at all times (including on a winding up of the
Company) its right to payment of accrued royalties hereunder shall be subordinated to the payments
in respect of the Aggregate Antidilution Amount, the Priority Dividend, Class C Shares, Class O-E
Shares and Class O-J Shares as and to the extent set forth in subclauses (a), (b), (c), (d) and (e)
of clause 7.1 of the Shareholders’ Agreement. Without limiting the foregoing, in the event Lucky
Sub-2 receives any payment in respect of a royalty accruing hereunder that is in conflict with the
priority of payments set forth in clause 7.1 of the Shareholders’ Agreement, Lucky Sub-2 agrees to
promptly pay over to the proper party such amount as is required to give effect to the priorities
contemplated by clause 7.1 of the Shareholders’ Agreement.

6A. Net Sales.

          Except as otherwise expressly provided in this Royalty Agreement, the determination of Net
Sales (and related calculations) by the Company and Wyeth for purposes of the Collaboration
Agreement shall be final and binding on Lucky Sub-2 for purposes of calculating the royalties
accruing hereunder.

7A. Reports, Inspection and Audit Rights.

          After the Activation Date during the Royalty Term hereof, the Company shall, within
seventy-five (75) days after the end of each Calendar Quarter, furnish to Lucky Sub-2:

     (i) any reports or notices delivered by or to the Company pursuant to Sections 7.4.1A
and 7.4.2A of the Collaboration Agreement in respect of all or any portion of such Calendar
Quarter;

     (ii) a royalty report showing any royalties accrued in respect of such Calendar
Quarter under this Royalty Agreement (or if none shall have accrued, a report so stating);

     (iii) a schedule showing any and all adjustments made under Section 4A hereof to the
royalties accrued in respect of such Calendar Quarter, which schedule shall contain
reasonable detail to support any such adjustment (including the relevant Product to which
the adjustment pertains); and

     (iv) the exchange rates used in converting all royalties accrued in such Calendar
Quarter to U.S. Dollars from the currencies in which the sales of Products were made.

          Royalties accruing on Collaboration Product Net Sales in countries other than the United
States shall be calculated in accordance with the standard exchange rate conversion practices used
by the Company for financial accounting purposes. The Company shall keep, and shall use reasonable
efforts to cause its Sublicensees to keep, complete and accurate books of account and records in
sufficient detail to properly reflect all Collaboration Product Net Sales made by the Company and
its Sublicensees or reported to the Company to enable the royalties accruing hereunder to be
determined. Such books and records shall be kept at the principal place of business of the Company
for at least thirty-six (36) months following the end of the Calendar Quarter to which they
pertain. Not more than once in each calendar year, upon Lucky Sub-2’s written request, the Company
shall permit employees of Lucky Sub-2 and its representatives (including an independent auditor)
(all of whom shall be reasonably acceptable to the Company), to have access, at mutually acceptable
date(s), during normal business hours to such of the records of the Company as may be reasonably
necessary to verify the accuracy of the royalty

 

5 

reports hereunder for any of the last eight Calendar Quarters prior to the date of such
inspection. Such representatives and employees shall execute a reasonable confidentiality
agreement prior to commencing any such inspection, which shall contain confidentiality provisions
no less stringent than those contained in the Collaboration Agreement. Inspections conducted under
this Section 7A shall be at the expense of Lucky Sub-2; provided that if an underpayment is
identified in an amount, for any four consecutive Calendar Quarters, exceeding ten percent (10%) of
the total amount required to have been paid for such four Calendar Quarters, the reasonable
out-of-pocket costs of Lucky Sub-2 relating to the applicable inspection shall be paid by Jupiter
Sub-1. Any underpayments or unpaid amounts discovered by such inspection shall constitute Accrued
and Unpaid Royalty Payments for purposes of clause 7.1 of the Shareholders’ Agreement, and shall be
paid pursuant to the priority of payments specified thereby.

          Notwithstanding anything to the contrary, in the event any provision of this Section 7A shall
conflict with the Collaboration Agreement, the Company shall not be in breach of this Section 7A to
the extent it determines in good faith that non-compliance with this Section 7A is necessary in
order to comply with the terms of and obligations under the Collaboration Agreement.

8A. Blocked Payments.

          If it becomes unlawful for the Company to pay royalties to Lucky Sub-2, the Company shall
promptly notify Lucky Sub-2 of the conditions preventing such payment and the royalties accruing
hereunder shall, when otherwise payable, be deposited in local currency in the relevant country to
the credit of Lucky Sub-2 in a recognized banking institution selected by the Company. The Company
shall use commercially reasonable efforts to ameliorate the circumstances which have made such
payment of royalties unlawful and to expedite the release thereof. Upon release and subject to
clause 7.1 of the Shareholders’ Agreement, any blocked payments shall be paid to Lucky Sub-2.

ARTICLE B. ROYALTIES ON COMPANY PRODUCTS OUTSIDE COLLABORATION AGREEMENT

1B. Royalty Rate.

          In the event that Lucky Parent and Jupiter Parent equally co-fund the Company’s development of
any Company Products that are not Products under the Collaboration Agreement as provided for under
clause 18.10 of the Shareholders’ Agreement, the Company hereby agrees that, subject to the terms
and conditions of the Shareholders’ Agreement and to the other terms and conditions of this Royalty
Agreement, royalties shall accrue to Lucky Sub-2 on Company Product Net Sales on such Company
Products during the Royalty Term as follows:

	 	 	 	 	 
	Calendar Year Company Product Net Sales (US Dollars)	 	Royalty Rate
	Less than or equal to $1,000,000,000
	 	 	0	%
	Greater than $1,000,000,000 and less than or equal to $2,000,000,000
	 	 	5	%

 

6 

	 	 	 	 	 
	Calendar Year Company Product Net Sales (US Dollars)	 	Royalty Rate
	Greater than $2,000,000,000 and less than or equal to $5,000,000,000
	 	 	7	%
	Greater than $5,000,000,000
	 	 	9	%

          Notwithstanding the foregoing, (i) if the Activation Date is not January 1 of a calendar year
(such calendar year in which the Activation Date occurs, the “First Year”), the dollar
thresholds under the caption “Calendar Year Company Product Net Sales” in the table above shall,
solely with respect to the applicable portion of the First Year, be proportionally reduced based on
the number of full Calendar Quarters in the First Year from and including the Activation Date to
and including the earlier of December 31 of the First Year and the Termination Date (e.g.,
assuming the Termination Date does not occur during the First Year, a 75% reduction if the
Activation Date is October 1) and (ii) if the Termination Date is not December 31 of a calendar
year (such calendar year in which the Termination Date occurs, the “Last Year”), the dollar
thresholds under the caption “Calendar Year Company Product Net Sales” in the table above shall,
solely with respect to the applicable portion of the Last Year, be proportionally reduced based on
the number of full Calendar Quarters from and including the later of January 1 of the Last Year and
the Activation Date to and including the Termination Date (e.g., assuming the Activation
Date does not occur in the Last Year, a 25% reduction if the Termination Date is September 30).

2B. Applicability of Royalty Rate to Company Product Net Sales.

          Royalties under this Royalty Agreement on Company Product Net Sales in a calendar year (or
applicable portion thereof in the case of the First Year and Last Year) shall accrue at the rate
applicable to the portion of Company Product Net Sales within each of the Company Product Net Sales
levels set forth in the table above during such calendar year (as proportionately reduced pursuant
to the last paragraph in Section 1B hereof). For example, if, for a calendar year during the
Royalty Term, Company Product Net Sales totaled $2,500,000,000, then (in the absence of any
adjustments pursuant to Section 4B) the royalties accruing hereunder for such calendar year would
equal the sum of (i) the royalties with respect to the first $1,000,000,000 of Company Product Net
Sales at the first-level percentage of zero percent (0%) ($1,000,000,000 x 0.0 = $0), plus (ii) the
royalties with respect to the next $1,000,000,000 of Company Product Net Sales at the second-level
percentage of five percent (5%) ($1,000,000,000 x 0.05 = $50,000,000), plus (iii) the royalties
with respect to the remaining $500,000,000 of Company Product Net Sales at the third-level
percentage of seven percent (7%) ($500,000,000 x 0.07 = $35,000,000), for a total accrued royalty
of $85,000,000.

3B. Royalty Term.

          Royalties under this Royalty Agreement shall accrue in respect of Company Product Net Sales
made during the Royalty Term. No other royalty or other consideration shall accrue under this
Royalty Agreement (or be payable under the Shareholders’ Agreement), including without limitation
in respect of Company Product Net Sales made before the Activation Date or after the Termination
Date.

4B. Royalty Adjustments.

          Notwithstanding anything herein to the contrary, if, as of any date during the Royalty Term,
there shall be no Valid Claim Covering a Company Product in a country where

 

7 

such Company Product is sold by a Party or its Sublicensees, and no Valid Claim of any Closing
Date IP Covering the Manufacture of Company Product where the active pharmaceutical ingredient of
such Company Product is manufactured by or on behalf of a Party or its Sublicensees (the first such
date, with respect to such Company Product in such country, being the “Fall-Away Date”),
then for purposes of calculating royalties on Company Product Net Sales under this Royalty
Agreement, Company Product Net Sales of such Company Product in such country shall be excluded from
and after the Fall-Away Date for such Company Product in such country; provided that, in
the event any Fall-Away Date does not occur on the last day of a Calendar Quarter, such Fall-Away
Date shall be deemed to have occurred with respect to the relevant Company Product in the relevant
country on the last day of the Calendar Quarter in which the Fall-Away Date occurs.

          In the event that a Party or any of its Sublicensees shall be required to pay any
consideration or royalties for a license or rights to any Blocking Third Party Intellectual
Property or Enhancing Third Party Intellectual Property during any calendar year, the Company shall
be entitled to deduct fifty percent (50%) of such consideration or royalties actually paid to any
third party for such license or rights from the royalties otherwise accruing under this Royalty
Agreement in respect of such calendar year; provided that (i) no such deduction shall apply
for any consideration or royalties paid in respect of any patent rights set forth on Schedule
4 hereto, including any Blocking Third Party Intellectual Property or Enhancing Third Party
Intellectual Property set forth on Schedule 4 hereto, and (ii) the aggregate amount of any
and all deductions under this sentence for any calendar year shall not be greater than an amount
which would have the effect of decreasing the royalties otherwise accruing hereunder in respect of
such calendar year by more than twenty-five percent (25%). Any deduction the Company seeks from
royalties accruing under this Royalty Agreement for non-monetary consideration paid for Blocking
Third Party Intellectual Property or Enhancing Third Party Intellectual Property shall be at such
consideration’s fair monetary value as mutually determined by the Company and Lucky Sub-2 in good
faith.

          Except as set forth in this Section 4B or as required by law, royalties accruing under this
Royalty Agreement shall not be subject to any downward adjustment.

5B. Subordination; Payments.

          Any and all royalties accruing hereunder shall be payable in the amounts and on the dates
provided therefor in clause 7 of the Shareholders’ Agreement. No interest or other premium shall
be payable in respect of any royalties accruing under this Royalty Agreement.

          Lucky Sub-2 acknowledges and agrees that at all times (including on a winding up of the
Company) its right to payment of accrued royalties hereunder shall be subordinated to the payments
in respect of the Aggregate Antidilution Amount, the Priority Dividend, Class C Shares, Class O-E
Shares and Class O-J Shares as and to the extent set forth in subclauses (a), (b), (c), (d) and (e)
of clause 7.1 of the Shareholders’ Agreement. Without limiting the foregoing, in the event Lucky
Sub-2 receives any payment in respect of a royalty accruing hereunder that is in conflict with the
priority of payments set forth in clause 7.1 of the Shareholders’ Agreement, Lucky Sub-2 agrees to
promptly pay over to the proper party such amount as is required to give effect to the priorities
contemplated by clause 7.1 of the Shareholders’ Agreement.

 

8 

6B. Inapplicability of Article A.

          For the avoidance of doubt, the provisions of Article A above shall not apply to any Company
Products for which royalties accrue under this Article B.

7B. Reports, Inspection and Audit Rights.

          After the Activation Date during the Royalty Term hereof, the Company shall, within
seventy-five (75) days after the end of each Calendar Quarter, furnish to Lucky Sub-2:

     (i) a royalty report showing any royalties accrued in respect of such Calendar Quarter
under this Royalty Agreement (or if none shall have accrued, a report so stating);

     (ii) a schedule showing any and all adjustments made under Section 4B hereof to the
royalties accrued in respect of such Calendar Quarter, which schedule shall contain
reasonable detail to support any such adjustment (including the relevant Company Product to
which the adjustment pertains); and

     (iii) the exchange rates used in converting all royalties accrued in such Calendar
Quarter to U.S. Dollars from the currencies in which the sales of Company Products were
made.

          Royalties accruing on Company Product Net Sales in countries other than the United States
shall be calculated in accordance with the standard exchange rate conversion practices used by the
Company for financial accounting purposes. The Company shall keep, and shall use reasonable
efforts to cause its Sublicensees to keep, complete and accurate books of account and records in
sufficient detail to properly reflect all Company Product Net Sales made by the Company and its
Sublicensees or reported to the Company to enable the royalties accruing hereunder to be
determined. Such books and records shall be kept at the principal place of business of the Company
for at least thirty-six (36) months following the end of the Calendar Quarter to which they
pertain. Not more than once in each calendar year, upon Lucky Sub-2’s written request, the Company
shall permit employees of Lucky Sub-2 and its representatives (including an independent auditor)
(all of whom shall be reasonably acceptable to the Company), to have access, at mutually acceptable
date(s), during normal business hours to such of the records of the Company as may be reasonably
necessary to verify the accuracy of the royalty reports hereunder for any of the last eight
Calendar Quarters prior to the date of such inspection. Such representatives and employees shall
execute a reasonable confidentiality agreement prior to commencing any such inspection.
Inspections conducted under this Section 7B shall be at the expense of Lucky Sub-2;
provided that if an underpayment is identified in an amount, for any four consecutive
Calendar Quarters, exceeding ten percent (10%) of the total amount required to have been paid for
such four Calendar Quarters, the reasonable out-of-pocket costs of Lucky Sub-2 relating to the
applicable inspection shall be paid by Jupiter Sub-1. Any underpayments or unpaid amounts
discovered by such inspection shall constitute Accrued and Unpaid Royalty Payments for purposes of
clause 7.1 of the Shareholders’ Agreement, and shall be paid pursuant to the priority of payments
specified thereby.

8B. Blocked Payments.

 

9 

          If it becomes unlawful for the Company to pay royalties to Lucky Sub-2, the Company shall
promptly notify Lucky Sub-2 of the conditions preventing such payment and the royalties accruing
hereunder shall, when otherwise payable, be deposited in local currency in the relevant country to
the credit of Lucky Sub-2 in a recognized banking institution selected by the Company. The Company
shall use commercially reasonable efforts to ameliorate the circumstances which have made such
payment of royalties unlawful and to expedite the release thereof. Upon release and subject to
clause 7.1 of the Shareholders’ Agreement, any blocked payments shall be paid to Lucky Sub-2.

ARTICLE C. CERTAIN DEFINITIONS.

          For purposes of this Royalty Agreement, the terms below have the following meanings:

          “Accrued and Unpaid Royalty Payments” shall have the meaning given to such term in the
Shareholders’ Agreement.

          “Activation Date” means the first date (if any) on which (i) the Aggregate
Antidilution Amount (if any) has been paid in full to the Jupiter Shareholders (or their
successors), (ii) the Priority Dividend (if any) has been paid in full to the Jupiter Shareholders
(or their successors), (iii) there are no Class C Shares issued and outstanding and (iv) the
Jupiter Shareholders (or their successors) shall have received aggregate payments from the Company
pursuant to clause 7.1(e) of the Shareholders’ Agreement equal to five hundred million dollars
($500,000,000.00) minus the Priority Dividend Amount (if any); provided that, in
the event such first date is not the first day of a Calendar Quarter, the Activation Date shall not
occur until the first day of the Calendar Quarter commencing immediately following such first date.

          “Affiliate” shall have the meaning given to such term in the Shareholders’ Agreement.

          “Aggregate Antidilution Amount” shall have the meaning given to such term in the
Shareholders’ Agreement.

          “AHPC Patent Rights” shall mean the AHPC Patent Rights as defined in the Collaboration
Agreement that are assigned or licensed to the Company by virtue of the Transactions.

          “Blocking Third Party Intellectual Property” shall (i) in reference to a Product, have
the meaning given such term in the Collaboration Agreement and (ii) in reference to a Company
Product that is not a Product, have the same meaning as applicable mutatis
mutandis.

          “Calendar Quarter” shall have the meaning given to such term in the Collaboration
Agreement.

          “Class C Shares”, “Class O-E Shares” and “Class O-J Shares” shall have
the respective meanings given to such terms in the Shareholders’ Agreement.

          “Closing Date IP” has the meaning given to such term in the Shareholders’ Agreement.

 

10 

          “Collaboration Patent Rights” shall mean the Collaboration Patent Rights as defined in
the Collaboration Agreement that are assigned or licensed to the Company by virtue of the
Transactions.

          “Collaboration Product Net Sales” means, with respect to any calendar year (or portion
thereof in the case of the First Year and Last Year), fifty percent (50%) of the aggregate
worldwide Net Sales of any and all Products under the Collaboration Agreement during such calendar
year (or portion thereof).

          “Company Product Net Sales” means, with respect to any calendar year (or portion
thereof in the case of the First Year and Last Year), one hundred percent (100%) of the aggregate
worldwide net sales of any and all Company Products that are not Products under the Collaboration
Agreement during such calendar year (or portion thereof), where such net sales shall have the same
meaning of Net Sales as defined in reference to Products under the Collaboration Agreement,
applicable mutatis mutandis to Company Products.

          “Covering a Company Product” means, with respect to a Company Product (other than a
Product) sold on a particular date in a country, (i) a Valid Claim in the country of sale that
literally encompasses, whether generically or specifically, such Company Product as an active
pharmaceutical ingredient or in finished form, or any labeled indication or use of the Company
Product, or (ii) a Valid Claim in a country (whether the country of sale or another country) where
such Company Product sold in the country of sale was manufactured that literally encompasses,
whether generically or specifically, the manufacture of the Company Product.

          “Covering a Product” means, with respect to a Product sold on a particular date in a
country, that (i) a Valid Claim in the country of sale that literally encompasses, whether
generically or specifically, such Product, the R&D Candidate or other active pharmaceutical
ingredient in such Product, or any labeled indication or use of the Product, or (ii) a Valid Claim
in a country (whether the country of sale or another country) where the R&D Candidate or other
active pharmaceutical ingredient of such Product sold in the country of sale was manufactured that
literally encompasses, whether generically or specifically, the manufacture of the R&D Candidate in
the Product.

          “Enhancing Third Party Intellectual Property” shall (i) in reference to a Product,
have the meaning given such term in the Collaboration Agreement and (ii) in reference to a Company
Product that is not a Product, have the same meaning as applicable mutatis
mutandis.

          “First Commercial Sale” shall (i) in reference to a Product, have the meaning given
such term in the Collaboration Agreement and (ii) in reference to a Company Product that is not a
Product, have the same meaning as applicable mutatis mutandis.

          “Jupiter Shareholders” shall have the meaning given to such term in the Shareholders’
Agreement.

          “Net Sales” shall (i) in reference to a Product, have the meaning given to such terms
in the Collaboration Agreement and (ii) in reference to a Company Product that is not a Product,
have the same meaning as applicable mutatis mutandis.

          “Obligatory Transfer Event” shall have the meaning given to such term in the
Shareholders’ Agreement.

 

11 

          “Party” shall (i) as used in Article A, have the meaning given to such term in the
Collaboration Agreement and (ii) as used in Article B, mean the Company.

          “Product” shall have the meaning given to such term in the Collaboration Agreement.

          “Priority Dividend” shall have the meaning given to such term in the Shareholders’
Agreement.

          “R&D Candidate” shall have the meaning given to such term in the Collaboration
Agreement.

          “Royalty Term” shall mean the period commencing on the Activation Date and expiring on
the Termination Date.

          “Seller Disclosure Letter” shall have the meaning given to such term in the Asset
Purchase Agreement.

          “Shares” shall have the meaning given to such term in the Shareholders’ Agreement.

          “Sublicensee” shall (i) as used in Article A, have the meaning given to such term in
the Collaboration Agreement and (ii) as used in Article B, mean a Sublicensee of the Company.

          “Termination Date” means:

	 	(a)	 	as used in Article A, the earliest of: (i) the expiration of
the last Valid Claim Covering a Product, (ii) the date on which no R&D
Candidate is being developed and no Product is being sold pursuant to the
Collaboration Agreement, and (iii) the date on which neither Lucky Sub-1 nor
any Permitted Transferee holds any Shares (including as a result of an
Obligatory Transfer Event); provided that, in the event such earliest
date is not the last day of a Calendar Quarter, the Termination Date shall be
the last day of the Calendar Quarter in which such earliest date occurs. For
purposes of this clause (a), “Permitted Transferee” means any person
(other than any Jupiter Shareholder and any person to whom any Jupiter
Shareholder shall have transferred its Shares in compliance with the
Shareholders’ Agreement) to whom Lucky Sub-1 shall have Transferred its Shares
in compliance with the Shareholders’ Agreement; or
	 
	 	(b)	 	as used in Article B, the earliest of: (i) the expiration of
the last Valid Claim Covering a Company Product, (ii) the date on which no
Company Product is being developed or sold by the Company, and (iii) the date
on which neither Lucky Sub-1 nor any Permitted Transferee holds any Shares
(including as a result of an Obligatory Transfer Event); provided
that, in the event such earliest date is not the last day of a Calendar
Quarter, the Termination Date shall be the last day of the Calendar Quarter in
which such earliest date occurs. For purposes of this clause (b),
“Permitted Transferee” means any person (other than any Jupiter
Shareholder and any person to whom any Jupiter Shareholder shall have
transferred its Shares in compliance with the

 

12 

	 	 	 	Shareholders’ Agreement) to whom Lucky Sub-1 shall have Transferred its Shares
in compliance with the Shareholders’ Agreement.

          “Transfer” shall have the meaning given to such term in the Shareholders’ Agreement.

          “Valid Claim” means: (i) in reference to a particular time that a Product is sold in
a country, any claim that at such time is (a) granted in any unexpired and issued patent included
in the AHPC Patent Rights, the Collaboration Patent Rights, or the Patent Rights (as that term is
defined in the Asset Purchase Agreement) set forth in Schedule 1.02(a)(i)(A)(1) of the Seller
Disclosure Letter that has not been revoked or held unenforceable or invalid by a final decision of
a court or other governmental agency of competent jurisdiction, or that has not been disclaimed,
denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise, or
(b) pending in a nonprovisional patent application included in the AHPC Patent Rights or the
Collaboration Patent Rights that has not lapsed or been cancelled, withdrawn or abandoned without
the possibility of revival, but excluding any such claim that is pending after the earlier of
fifteen (15) years from the earliest priority date claimed for such application and ten (10) years
from the First Commercial Sale of the Product in such country; and (ii) in reference to a
particular time that a Company Product (other than a Product) is sold in a country, any claim that
at such time is (a) granted in any unexpired and issued patent included in the Closing Date IP
that has not been revoked or held unenforceable or invalid by a final decision of a court or other
governmental agency of competent jurisdiction, or that has not been disclaimed, denied or admitted
to be invalid or unenforceable through reissue or disclaimer or otherwise, or (b) pending in a
nonprovisional patent application included in the Closing Date IP that has not lapsed or been
cancelled, withdrawn or abandoned without the possibility of revival, but excluding any such claim
that is pending after the earlier of fifteen (15) years from the earliest priority date claimed
for such application and ten (10) years from the First Commercial Sale of the Company Product in
such country.

D. OTHER PROVISIONS.

          In the event of any conflict between the express provisions of the Shareholders’ Agreement and
the express provisions of this Royalty Agreement, the provisions of the Shareholders’ Agreement
shall control with respect to the subject matter hereof. This Royalty Agreement is for the sole
benefit of the parties hereto and nothing herein expressed or implied shall give or be construed to
give to any person, other than the parties hereto, any legal or equitable rights hereunder.

          The representations and warranties of the parties set forth in the Asset Purchase Agreement
are expressly incorporated by reference herein.

          The Company may not assign or transfer this Royalty Agreement and its rights and obligations
hereunder without the prior written consent of Lucky Sub-2. Except as provided in the immediately
following sentence, this Royalty Agreement and the rights and obligations hereunder shall not be
assignable or transferable by Lucky Sub-2 (including by operation of law in connection with a
merger, consolidation or similar extraordinary transaction) to any person other than any wholly
owned subsidiary of Lucky Parent (and subsequent thereto each reference herein to Lucky Sub-2 shall
be construed as a reference to the applicable transferee) without the prior written consent of the
Company. In the event neither Lucky Sub-1 nor any of its Affiliates holds any Shares as a result
of one or more Transfers in compliance with the Shareholders’ Agreement, Lucky Sub-2 shall,
immediately following the last of such Transfers, assign this

 

13 

Royalty Agreement and its rights and obligations hereunder to the applicable transferee in
such last Transfer of Shares (and following any such assignment, each reference herein to Lucky
Sub-1 and Lucky Sub-2 shall be construed as a reference to the applicable permitted transferee).
Any attempted assignment of this Royalty Agreement in violation of the foregoing provisions shall
be void.

          This Royalty Agreement may not be amended and no provision hereof may be waived or modified
except in each case by an instrument in writing signed by the parties. All notices and
communications hereunder shall be made in accordance with the provisions set forth in Section 9.03
(Notices) of the Asset Purchase Agreement. The provisions of Sections 5.05(b) (Confidentiality),
9.04(a) (Interpretation), 9.07 (Severability), 9.08 (Consent to Jurisdiction), 9.09 (Governing Law)
and 9.10 (Waiver of Jury Trial) of the Asset Purchase Agreement shall apply to this Royalty
Agreement, mutatis mutandis, as though fully set forth herein.

          This Royalty Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of which, when taken together, shall constitute one agreement. Delivery
of an executed counterpart of a signature page of this letter agreement by facsimile transmission
or other customary means of electronic transmission shall be effective as delivery of a manually
executed counterpart hereof.

          This Royalty Agreement shall be effective as of the later of the date of execution hereof or
the date of Closing; provided that, if the Asset Purchase Agreement is terminated prior to
the Closing, this Royalty Agreement shall terminate without further action by any party and all
rights and obligations of the parties hereunder shall terminate without liability of any party to
any other party.

[Remainder of page intentionally left blank]

 

 

          If the foregoing correctly sets forth our understanding, please indicate your acceptance of
the terms hereof by returning to us an executed counterpart hereof, whereupon this letter agreement
shall become a binding agreement.

	 	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
	 	JANSSEN ALZHEIMER IMMUNOTHERAPY

 	 
		    by  	             /s/ Gerard Collins
 	 
	 		Name:  	Gerard Collins 	 
	 		Title:  	Director 	 
	 	
	 	Solely for purposes of the penultimate

sentence of the penultimate paragraph of Section 7A

and the last paragraph of 7B hereof:

 	 
	 	
	 	JANSSEN ALZHEIMER IMMUNOTHERAPY

(HOLDING) LIMITED

 	 
		    by  	/s/ Gerard Collins
 	 
	 		Name:  	Gerard Collins 	 
	 		Title:  	Director 	 
	 	

Signature Page to the Royalty Agreement

 

 

Accepted and agreed to as of the date first written
above:

ELAN PHARMA INTERNATIONAL LIMITED

	 	 	 	 	 	 	 
	 

	 	by
	 	/s/ William Daniel	 	 
	 

	 	 	 	 

Name: William Daniel
	 	 
	 

	 	 	 	Title: Director	 	 

Signature Page to the Royalty Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]