Document:

Collaboration Agreement with Siena Biotech S.p.A

 Exhibit 10.40 
 WHENEVER CONFIDENTIAL INFORMATION IS OMITTED HEREIN (SUCH OMISSIONS ARE DENOTED BY AN ASTERISK *), SUCH CONFIDENTIAL INFORMATION HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. 
 COLLABORATION AGREEMENT 
 This COLLABORATION AGREEMENT (“Agreement”) is made this 7th day of February, 2007 (the “Effective Date”) by and between Elixir Pharmaceuticals, Inc. (“Elixir”), a Delaware corporation
with offices at 12 Emily Street, Cambridge, Massachusetts 02139, and Siena Biotech S.p.A. (“SiBi”), a company existing and organized under the laws of Italy with offices at Via Fiorentina 1, 53100 Siena, Italy. Elixir and SiBi are
sometimes hereinafter referred to each as a “Party” and collectively as the “Parties.” 
 INTRODUCTION 
 WHEREAS, the parties after discussing the possibility of a research and development collaboration have signed a Letter of Intent which foresees the interest of both
parties in entering and R&D agreement and subesequetly, subject to certain conditions, a license agreement regarding molecules covered by IP owned by Elixir, 
 WHEREAS, the Parties desire now to enter into a research and development collaboration to identify Clinical Candidates (as defined below) to treat Huntington’s Disease; 
 WHEREAS, upon a successful profiling and identification of each Clinical Candidate, SiBi will have an option to enter into a license agreement with Elixir under which SiBi will further develop and commercialize
Products (as defined herein); and 
 WHEREAS, if SiBi fails to exercise its option as to a Clinical Candidate, then Elixir shall obtain from SiBi a license
to further develop and commercialize such Clinical Candidate, 
 NOW, THEREFORE in consideration of the mutual covenants set forth in this Agreement, and
other good and valuable consideration, the Parties agree as follows: 
  

	1.	DEFINITIONS. 

  

	1.1.	“Clinical Candidate(s)” means one or more Compounds designated for development and commercialization by SiBi in the Field in accordance with Section 3.1.1.

  

	1.2.	“Collaboration IP” means all Know-How and Patents created or conceived as a result of work that is performed as part of the R&D Program. 

  

	1.3.	“Compound(s)” means the compounds identified on Exhibit A, as may be amended by the Parties from time to time, including all analogs or derivatives thereof created
by SiBi. 

  

	1.4.	“Confidential Information” has the meaning set forth in Section 7.1. 

  

	1.5.	“Controlled” or “Controls”, when used in reference to Patent or other intellectual property rights or technology, means the legal authority or right of a person
or entity to grant a license or sublicense of intellectual property rights to another person or entity, or to otherwise disclose or provide technology to such other person or entity, without breaching the terms of any agreement with a different
person or entity. 

  

	1.6.	“Elixir Collaboration IP” means Collaboration IP created or conceived of solely by Elixir. 

  

	1.7.	“Elixir Patents” means the Patents listed in Exhibit B. 

					
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	1.8.	“Elixir Know-How” means Know-How Controlled by Elixir as of the Effective Date that relates directly to the development, manufacture, use or sale of a Compound.

  

	1.9.	“Expanded Field” means the treatment of neurodegenerative diseases other than Huntington’s Disease. 

  

	1.10.	“Field” means the treatment of Huntington’s Disease. 

  

	1.11.	“Field Expansion Option” means the right for SiBi to expand the Field to the treatment of other diseases set forth in Section 4.7. 

  

	1.12	“Joint Collaboration IP” means Collaboration IP created or conceived of jointly by Elixir and SiBi. 

  

	1.13	“JSC” has the meaning set forth in Section 2.4. 

  

	1.14.	“Know-How” means any intangible information, whether proprietary or not and whether patentable or not, including ideas, concepts, formulas, methods, procedures, designs,
compositions, plans, documents, inventions and discoveries. In no event shall “Know-How” include any tangible materials or any other physical embodiments of Know-How. 

  

	1.15.	“License Agreement” has the meaning set forth in Section 3.1.2. 

  

	1.16.	“Option” has the meaning set forth in Section 3.1.1 hereof. 

  

	1.17.	“Patents” means (i) all patents and patent applications and any patents issuing therefrom worldwide, (ii) any substitutions, divisions, continuations,
continuations-in-part, reissues, renewals, registrations, confirmations, re-examinations, extensions, supplementary protection certificates, term extensions (under applicable patent law or other applicable law and regulation), certificates of
invention and the like, and any provisional applications, of any such patents or patent application, and (iii) any foreign or international equivalent of any of the foregoing. 

  

	1.18.	“Product” means any pharmaceutical product containing a Clinical Candidate, or an analog thereof, or a compound derived from a Clinical Candidate, or an analog thereof,
(alone or with other active ingredients) in all forms, presentations, formulations and dosage forms. 

  

	1.19.	“R&D Plan” has the meaning set forth in Section 2.1. 

  

	1.20.	“R&D Program” means the work performed under Section 2 of this Agreement. 

  

	1.21.	“R&D Program Data” means all results, data, developments or other information produced as a result of or otherwise arising from the R&D Program.

  

	1.22.	“SiBi Collaboration IP” means Collaboration IP created or conceived of solely by SiBi 

  

	1.23.	“SiBi Know-How” means Know-How Controlled by SiBi as of the Effective Date that relates directly to the development, manufacture, use or sale of a Compound.

  

	1.24.	“SiBi Patents” means Patents Controlled by SiBi after the Effective Date or during the Term, that claim the development, manufacture, use or sale of a Compound(s), an
analog thereof, or a compound derived from a Compound or an analog thereof . The SiBi Patents as of the Effective Date are listed in Exhibit C. 

  

	1.25.	“Term” has the meaning set forth in Section 6.1. 

  

	1.26.	“Territory” means every country of the world. 

  

	2.	RESEARCH & DEVELOPMENT 

  

	2.1.	R&D Plan. 

 Commencing on or promptly after the
Effective Date, the Parties shall perform and execute the Research and Development Plan (the “R&D Plan”) of Exhibit D. The Parties will perform their obligations in accordance with the same standard of care each usually applies
to similar activities conducted in connection with their internal research and development programs. The Parties shall prepare and maintain records of the activities performed hereunder in sufficient detail and generally in a manner sufficient for
purposes of establishing intellectual property rights in any inventions conceived of or reduced to practice in connection with such activities. 

					
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	2.2.	Initial Payment. 

 As initial consideration for the
Option granted by Elixir, the license of Section 2.6.1., and in general all the IP and technology contributed by Elixir to the R&D Program according with this Agreement, SiBi will pay Elixir a non-refundable sum of Euro sixty thousand
(€ 60,000) within thirty (30) days of the Effective Date, by electronic transfer of immediately available funds, in accordance with wire transfer instructions to be provided by Elixir to SiBi promptly following the Effective Date.

  

	2.3.	Research Funding. 

 SiBi will finance and cover at
its expense all the research efforts that SiBi performs in accordance with the R&D Plan for the identification of the Clinical Candidate and will compensate Elixir for all in-vitro assay and validation activities performed in accordance with the
R&D Plan, *. Such amounts shall be payable on a monthly basis in arrears within thirty (30) days following the receipt by SiBi of an invoice from Elixir. 
  

	2.4.	Joint Steering Committee. 

 The Parties shall
appoint two (2) representatives each to serve as a joint steering committee (the “JSC”). The JSC will oversee the conduct of all activities under the R&D Plan. The JSC will be the primary conduit for all communication between the
Parties relating to the R&D Program. The JSC shall review the progress of the R&D Plan and shall, from time-to-time, suggest amendments to the R&D Plan as the Parties may agree from time to time to implement, resulting in the advancement
of Compounds towards Clinical Candidates. For the avoidance of doubt, it is intended that the Parties shall not be legally bound by the JSC’s decisions, and that only the party responsible for performing each single research activity included
in R&D Plan shall have the right to take the final decision on it. The JSC shall act by the vote of a majority of its members. In the event of a dispute, the disputed matter shall be resolved in accordance with Section 10. 
  

	2.5.	Exclusivity. 

 During the Term and any extension
thereof: 
 a) the subject of the R&D Program will be limited to potential SIRT1 inhibitors in the Field, and, during the Term, *;

 b) SiBi will not provide to any third party for any purpose any Compound(s) that has been used in the R&D Program, except as permitted
under Section 2.6.3, nor shall SiBi use Compound(s) outside the Field. 
 c) SiBi will be entitled to carry out research and development
activities, also in collaboration with third parties, both in the Field and outside the Field, using compounds other than the Compound(s); 
 d) Elixir will be entitled to carry out research and development activities using the Compound(s), also in collaboration with third parties, outside of the Field. Neither Party shall have any right to the Know-How, data or other
intellectual property generated by the other Party in connection with activities conducted under Sections 2.5(c) and 2.5(d). 
 As an
exception to the provision under 2.5 b) above, SiBi will be entitled to provide Compounds to third parties only for the purpose of having such third parties perform activities under the R&D Plan for the benefit of SiBi and Elixir. 
  

	2.6.	License Rights. 

  

	2.6.1.	Subject to the terms of this Agreement, during the Term only, Elixir hereby grants to SiBi a royalty-free, fully paid up, non-transferable (except in accordance with
Section 11.8), non-exclusive right and license under the Elixir Patents, Elixir Know-How, and Elixir Collaboration IP solely to the extent necessary for SiBi to perform SiBi’s activities identified as SiBi responsibilities under the
R&D Plan. 

					
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	2.6.2.	Subject to the terms of this Agreement, for the Term only, SiBi hereby grants to Elixir a royalty-free, fully paid up, non-transferable (except in accordance with
Section 11.8), non-exclusive right and license under the SiBi Patents and SiBi Collaboration IP solely to the extent necessary for Elixir to perform Elixir’s activities identified as Elixir responsibilities under the R&D Plan.

  

	2.6.3.	With respect to the license grants set forth in Sections 2.6.1 and 2.6.2, such licenses include the right to grant sublicenses to third parties (collectively,
“Sublicensees”); provided, however, that as a condition precedent to a Party’s exercise of its rights to sublicense the licenses expressly granted in Sections 2.6.1 and 2.6.2, (i) such Party shall provide prior written
notification to the other Party (the “Counterpart”) of such sublicense, (ii) such Party shall agree in writing to be responsible for any and all obligations of such Sublicensee, (iii) such Sublicensee shall agree in writing to be
bound by the same obligations as the sublicensing Party hereunder with respect to such license, and (iiii) the Counterpart agrees in writing to the sublicensing. Promptly after execution of such a sublicense agreement, the sublicensing Party
shall provide a copy of such sublicense agreement to the other Party, which copy may be redacted to exclude financial terms and confidential scientific information. 

  

	2.6.4.	Nothing in this Agreement is intended to grant any rights to either Party under any intellectual property right of the other Party except as expressly set forth herein.

  

	3.	SiBi OPTION & LICENSE TO ELIXIR 

  

	3.1.	Option. 

  

	3.1.1.	During the Term, SiBi shall have the right at its own discretion to designate Compound(s) (on a Compound by Compound basis) to be Clinical Candidate(s) by written notice to Elixir.
Elixir hereby grants to SiBi the option to take the license described in Section 4.2. with respect to each Compound that is designated a Clinical Candidate by SiBi during the Term as set forth herein (the “Option”). The Option shall
be exercisable by SiBi within the first term to occur of * after the designation of such Clinical Candidate and (ii) * after the expiration of the Research Term and any extension thereof, by providing written notice of its desire to exercise
the Option, which notice shall make specific reference to this Agreement, and which notice shall identify the specific Clinical Candidates with respect to which SiBi is exercising the Option. 

  

	3.1.2.	In the event that SiBi elects to exercise the Option, the Parties, during a period of * from the date of such exercise, will negotiate in good faith towards the execution of a
definitive license agreement (“License Agreement”) for Clinical Candidate(s) according with the provision of article 4. The License Agreement shall include the terms provided in Section 4 and such other terms as are customary under
the circumstances. All the terms and provision of the License Agreement not already foreseen in article 4 will be negotiated in good faith, including the negotiation of an Expanded Field should the Parties so agree. 

  

	3.1.3.	Should SiBi decide not to exercise the Option with respect to a particular Clinical Candidate prior to the first to occur of (i) * after the designation of such Clinical
Candidate and (ii) * after the expiration of the Research Term and any extension thereof, then the Option will expire with respect to such Clinical Candidate. Should SiBi materially breach this Agreement, all Options then in effect shall
terminate. 

					
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	3.2.	License to Elixir. 

  

	3.2.1.	SiBi hereby grants to Elixir an exclusive, irrevocable, royalty-free license under SiBi Collaboration IP and Joint Collaboration IP to develop, manufacture, use and sell the
Compound(s) or Clinical Candidate(s) outside of the Field, in any form or formulation and with or without additional ingredients. 

  

	3.2.2.	Upon the expiration or termination of the right to exercise the Option pertaining to a Clinical Candidate, SiBi will, and hereby does, grant to Elixir an exclusive, irrevocable,
royalty-free license under SiBi Collaboration IP and Joint Collaboration IP to develop, manufacture, use and sell the Clinical Candidate(s) that was the subject of such Option outside of the Field, in any form or formulation and with or without
additional ingredients. 

  

	3.2.3.	From time-to-time during the Term and any extension thereof, upon the request of Elixir, SiBi shall promptly deliver to Elixir all R&D Program Data and all materials that were
developed in the performance of the R&D Plan that relate to the use of Compound(s) or Clinical Candidate(s) outside of the Field if and when they become available. Within * after the expiration or termination of an Option, SiBi shall deliver to
Elixir all additional R&D Program Data and all other materials that were developed in the performance of the R&D Plan that relate to the use of the Clinical Candidate(s) that were subject to such Option within the Field, except to the extent
SiBi is still working on any Compound(s) in the Field under the R&D Plan and such R&D Program Data and/or materials are necessary or useful to support such efforts. 

  

	4.	LICENSE AGREEMENT 

  

	4.1.	Terms. 

 Each License Agreement shall include the
terms and conditions set forth in this Section 4 with respect to the relevant Clinical Compound with such other customary and reasonable terms as the Parties shall determine. 
  

	4.2.	Elixir License Grant. 

 Under the License Agreement,
Elixir will grant SiBi an exclusive license (exclusive even as to Elixir) in the Field, in the Territory, under the Elixir Patents, Elixir Know-How, Elixir Collaboration IP and Elixir’s rights in the Joint Collaboration IP relating to each
Clinical Candidate with respect to which SiBi exercises its options, (with unlimited right to sublicense, subject to customary restrictions) to research, develop, register, use, manufacture, sell, import, export directly or in collaboration with
third parties Compounds or Products containing such Clinical Candidate or an analog thereof, or a Compound derived from such Clinical Candidate, or an analog thereof. 
  

	4.3.	SiBi License Grant. 

 Under the License Agreement,
SiBi will grant Elixir a free-of-charge, exclusive worldwide license (exclusive even as to SiBi), for all uses outside the Field, in the Territory, under SiBi Collaboration IP and SiBi’s rights in the Joint Collaboration IP relating to each
Clinical Candidate with respect to which SiBi exercises its option, with right to sublicense (subject to customary restrictions), to research, develop, register, use, manufacture, sell, import and export products directly and/or in collaboration
with third parties Compounds or Products containing such Clinical Candidate or an analog thereof, or a compound derived from such Clinical Candidate, or an analog thereof. For the avoidance of doubt, such license will not in any way limit
SiBi’s ability to operate in the Field on compounds other than the Compounds. 

					
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	4.4.	License Agreement Payments. 

  

	4.4.1.	SiBi will pay Elixir the following sums upon achievement of the following events with respect to each Product: 

 a) *% of any amounts received by SiBi from third parties in connection with the development or commercialization of a Product with respect to upfront
payments and milestone payments made in connection with the grant or exercise of a sublicense or other rights to develop or commercialize such Product for one or more uses within the Field and for one or more countries within the Territory; but in
each case excluding running royalties paid to SiBi by a third party based upon revenue received by such third party upon the sale of the Product; 
 b) * upon the successful completion of the Phase IIa clinical trial performed on a Clinical Candidate in the event that SiBi has not licensed out development and commercialization rights to the applicable Clinical Candidate to a third
party. A successful completion of Phase IIa shall be considered a successful achievement of a proof-of-concept study followed by the decision to proceed with the further development of the Compound or Product in the next Clinical Phase. 

 

	4.4.2.	Upon launch of a Product, and thereafter during the term of the License Agreement, SiBi shall make annual payments to Elixir equal to * percent (*%) of the net sales (to be defined
in the sublicense granted by SiBi to a third party in accordance with industry norms) generated from sales of such Product, on which SiBi is receiving royalties, to be paid for the longer of, on a country-by-country and Product-by-Product basis,
(i) the period of Patent or data exclusivity (and/or other regulatory exclusivity) in such country for such Product, (ii) infringement of a valid claim of the Elixir Patents or any patent rights emergingarising from the R&D Program (no
matter the ownership thereof) by the manufacture, use, importation, or sale of such product in such country, (iii) until the expiration or termination of the last claim within the Elixir Patents or any Collaboration IP that warrants exclusivity
to the manufacture, use, sale or importation of such Product in such country, and (iv) ten (10) years from first commercial sale of such Product in such country. 

  

	4.4.3	The License Agreement shall contain provisions requiring that SiBi provide royalty reports to Elixir, that SiBi maintain records of all revenue received or generated by SiBi in
connection with the Products, and that Elixir have the right to audit such records periodically. 

  

	4.5.	Termination. 

 Upon any termination of the License
Agreement due to a material contractual breach by SiBi, SiBi shall be deemed to have assigned to Elixir all of SiBi’s right, title and interest in and to any and all SiBi Collaboration IP and Joint Collaboration IP that are necessary or useful
to develop, manufacture, use or sell the Product to which such License Agreement pertained, and SiBi will, within thirty (30) days following such termination, deliver to Elixir all R&D Program Data and all materials that were developed in
the performance of the R&D Plan or under such License Agreement that relate to such Product. Upon such assignment, Elixir shall have and retain the right to perform further research, development and commercialization of such Product free of any
obligation to SiBi hereunder or otherwise. SiBi agrees to take such actions and execute and deliver such documents as are reasonably requested by Elixir to give effect to or to evidence such assignment during or after the Term. 
  

	4.6.	Development Obligations. 

  

	4.6.1.	All costs and activities related to the development of a Clinical Candidate will be decided, carried out and paid for by SiBi. 

  

	4.6.2.	SiBi will use commercially reasonable efforts to research, develop and commercialize the Clinical Candidate(s) licensed exclusively to SiBi by Elixir. 

					
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	 4.6.3.
	 SiBi will keep Elixir informed regarding the development activities with respect to a Clinical Candidate through
biannual reports to be provided to Elixir on or before January 1st and July 1st of each year. Such reports will summarize the activities performed by SiBi under the applicable License Agreement including estimated time to milestones. 

  

	4.7.	Field Expansion Option. 

  

	4.7.1.	Upon exercising the Option, or any time after exercising the Option, SiBi shall have the right to expand the Field. Such an expansion shall be regulated according to the provisions
set forth in this article 4.7. 

  

	4.7.2.	For the expansion of the Field to CNS diseases that may be classified as “Orphan Diseases” according to The Rare Disease Act of 2002 and the US Orphan Drug Act and of
lower incidence than Huntington’s Disease, for which SiBi may seek or obtain approval in connection with the approval in the Field, SiBi will have the right to ask for such expansion, which should not be unreasonably withheld. Such a right
should be exercised in written form as set forth in section 11.11. In connection with such an expansion SiBi will pay Elixir: 

 (I) * down payment of *, once for this group of diseases; 
 (II) Payments on the basis of what is provided for under Sections 4.4.1
and 4.4.2, where this group of Orphan Diseases will be “Products” under Sections 4.4.1 and 4.4.2, with such changes as necessary to accommodate the change in Field. 
  

	4.7.3.	For the expansion to other CNS diseases not classifiable as orphan, for which SiBi may seek approval, SiBi will have the right to ask for such expansion, which should not be
unreasonably withheld. Such a right should be exercised in written form as set forth in section 11.11. In the event SiBi asks Elixir for such expansion, and Elixir consents to such expansion, the Parties will negotiate in good faith toward a
definitive license agreement regarding other CNS diseases not classifiable as orphan. 

  

	5.	INTELLECTUAL PROPERTY OWNERSHIP 

  

	5.1.	Patents filing 

 Each Party shall be responsible for
filing its own Patents resulting from the work performed under the R&D Program. Patents relating to inventions in the Field conceived under the R&D Program will be owned by the Party for whom inventorship can be established under provisions
of U.S. patent law. Each Party will be responsible for the filing, prosecution, maintenance, defense and enforcement of solely owned Patents in the Field at its own expense 
  

	5.2.	Joint Inventions 

 Joint inventions made under the
R&D Program will be jointly owned by the Parties. The JRC will be responsible for determining which, if any, Patents are to be filed with respect to Joint inventions made under the R&D Program. SiBi and Elixir will be jointly responsible for
the filing, prosecution, maintenance, defense and enforcement of such jointly owned Patents in the Field at SiBi’s expense. 

					
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	6.	TERM & TERMINATION 

  

	6.1.	Duration 

 This Agreement will have a duration of
twelve (12) months from the Effective Date (the “Term”) and may be extended for an additional period of six (6) months by mutual written agreement of the Parties, which should not be unreasonably withheld. 
  

	6.2.	Termination 

 Notwithstanding anything herein to the
contrary, each Party shall have the right, in addition and without prejudice to any other rights or remedies, to terminate this Agreement if (i) the other Party commits any material breach of the terms hereof which has not been remedied within
ninety (90) days after receipt by the Party in default of notice specifying the breach; or (ii) the other Party shall dissolve, liquidate, or cease to carry on business operations. 
  

	6.3.	Survival 

 Notwithstanding anything herein to the
contrary, upon any expiration or termination of this Agreement, the provisions of Sections 1, 4.5, 5, 6, 7, 8, 9, 10 and 11 shall survive such expiration or termination and shall continue in full force and effect. 
  

	7.	CONFIDENTIALITY 

  

	7.1.	Confidentiality I 

 Each Party shall hold in
confidence any trade secrets, confidential or proprietary information, or any other knowledge, information, documents or materials, owned, developed or possessed by the other Party, including reports, and/or information related to or regarding a
disclosing Party’s business plans, business methodologies, strategies, technologies, specifications, development plans and product or services, whether in tangible or intangible form, the confidentiality of which such other Party takes
reasonable measures to protect, including Know-How (“Confidential Information”) Confidential Information disclosed by the other or otherwise obtained by such Party from the other as a result of this Agreement, and each Party shall protect
the confidentiality thereof with the same degree of care that it exercises with respect to its own information of a like nature, but in no event less than reasonable care. A receiving Party shall not use, make, disclose or distribute any
Confidential Information, in whole or in part, except as required to perform such Party’s obligations hereunder. Access to the disclosing Party’s Confidential Information shall be restricted to the receiving Party’s employees, who, in
each case, need to have access to carry out a permitted use and are bound in writing to maintain the confidentiality of such Confidential Information. 
  

	7.2.	Confidentiality II 

 The obligations of
Section 7.1 shall not apply to any portion of the Confidential Information which the receiving Party can demonstrate by legally sufficient evidence: (i) now or hereafter, through no act or failure to act on the part of the receiving Party,
is or becomes generally available; (ii) is known to the receiving Party at the time of receiving such Confidential Information without an obligation of confidentiality; (iii) is hereafter furnished to the receiving Party by a third party
as a matter of right without restriction on disclosure; (iv) is independently developed by the receiving Party without use of any Confidential Information received from the other; or (v) is disclosed because of any requirement imposed by
any applicable law or regulation, or in response to a valid order of a court or other governmental body or any political subdivision thereof; provided, however, that the Party making the disclosure shall give notice to the other Party
reasonably in advance of such disclosure or as soon as practicable thereafter. 
  

	7.3.	Confidentiality III 

 Either Party shall submit to
the other any proposed publication disclosing technology developed in connection with the R&D Program at least sixty (60) days before its publication. If the other Party determines that the proposed publication discloses patentable subject
matter that such other Party shall own in accordance with Section 5 or other of its Confidential Information, then such other Party may require a delay of up to sixty (60) days for the purpose of filing patent applications on such subject
matter and for the Parties to negotiate in good faith to remove any such other Confidential Information from such proposed publication so as to minimize any loss of confidentiality upon publication. 

					
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	7.4.	Confidentiality IV 

 Each Party shall, upon
termination or expiration of this Agreement, immediately discontinue use of the other’s Confidential Information. Within a reasonable time after termination of this Agreement, but in no event later than thirty (30) days thereafter, all
materials containing such Confidential Information shall be returned by the receiving Party or destroyed with the disclosing Party’s written consent, with the exception of one copy which may be retained for archive purposes. 
  

	7.5.	Confidentiality V 

 In case of termination or
expiration of this Agreement, such obligations of confidentiality with respect to the other Party’s Confidential Information shall continue for a period of five (5) years from the date of termination or expiration of this Agreement.

  

	8.	REPRESENTATIONS & WARRANTIES 

  

	8.1.	Enforceability 

 Each Party represents and warrants
to the other Party, as of the Effective Date (i) this Agreement has been duly executed and delivered by such Party and constitutes the valid and binding obligation of such Party, enforceable in accordance with its terms, (ii) the
execution, delivery and performance of this Agreement have been duly authorized by all necessary action on the part of such Party, its officers and directors, and (iii) no provision of this Agreement violates any other agreement that such Party
may have with any other person or entity. 
  

	8.2.	Representation 

 EXCEPT AS EXPRESSLY PROVIDED
HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE AND NON-INFRINGEMENT. 
  

	8.3.	Consequential Damages 

 EXCEPT FOR THE PARTIES
INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 9, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING DAMAGES FOR LOSS OF
BUSINESS, LOSS OF USE AND THE LIKE), WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR ANY OTHER CAUSE OF ACTION RELATING TO THIS AGREEMENT, EVEN IF THE OTHER PARTY HAS BEEN INFORMED OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES.

  

	8.4	Additional Representation of SiBI 

 SIBI HEREBY
REPRESENTS AND WARRANTS TO ELIXIR THAT, AS OF THE EFFECTIVE DATE, SIBI DOES NOT CONTROL ANY PATENTS THAT COULD REASONABLY BE ANTICIPATED TO BE BLOCKING ELIXIR IN THE TESTING, DEVELOPMENT, PRODUCING, FORMULATING, MARKETING, DISTRIBUTING AND SELLING
SIR-TI-BASED CLINICAL CANDIDATE OR PRODUCT INSIDE AND OUTSIDE OF THE FIELD, IN LINE WITH THE PROVISION CONTAINED IN THE PRESENT AGREEMENT. 
  

	9.	INDEMNIFICATION 

  

	9.1.	Indemnifying Party 

 Each Party (the
“Indemnifying Party”) hereby agrees to indemnify, defend and hold the other Party and its sublicensees, and their respective employees, directors, agents, consultants, successors, heirs, legal representatives and assigns
(“Indemnitees”) harmless from and against all losses arising from any third party claim due to a breach by the Indemnifying Party of any of its covenants, representations or warranties set forth in this Agreement, except to the extent that
such losses arise from the gross negligence, recklessness or willful misconduct of any Indemnitees. 

					
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	9.2.	Claims 

 Each Party agrees to give the other Party
prompt written notice of any claims made for which the other party might be liable under Section 9.1. The indemnifying Party shall have the opportunity to defend, negotiate, and settle such claims; provided, however, that the
indemnified Party shall be entitled to participate in the defense of such matter and to employ at its expense counsel to assist therein. The Party seeking indemnification shall provide the indemnifying Party with such information and assistance as
the indemnifying Party may reasonably request, at the expense of the indemnifying Party. 
  

	10.	DISPUTE RESOLUTION 

  

	10.1	Mediation 

 In the event of a dispute between the
Parties, the Parties shall first attempt in good faith to resolve such dispute by negotiation and consultation between themselves. In the event that such dispute is not resolved on an informal basis within forty-five (45) days, either Party
may, by written notice to the other, have such dispute referred to each of the Parties’ respective CEOs or his or her designee (who shall be a senior executive), who shall attempt in good faith to resolve such dispute by negotiation and
consultation for a thirty (30) day period following receipt of such written notice. 
  

	10.2.	Arbitration I 

 In the event the Parties’ CEOs
(or designees) are not able to resolve such dispute, either Party may at any time after such 30-day period submit such dispute to be finally settled by arbitration administered in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”) in effect at the time of submission. The arbitration shall be heard and determined by three (3) arbitrators. SiBi and Elixir shall each appoint one arbitrator and the third arbitrator shall be selected
by the two Party-appointed arbitrators, or, failing agreement within sixty (60) days following the date of receipt by the respondent of the claim, by the AAA. Such arbitration shall take place in Boston, MA. The arbitration award so given shall
be a final and binding determination of the dispute, shall be fully enforceable in any court of competent jurisdiction, and shall not include any damages expressly prohibited by Section 8.3. 
  

	10.3.	Arbitration Cost 

 Costs of arbitration are to be
divided by the Parties in the following manner: Elixir shall pay for the arbitrator it chooses, SiBi shall pay for the arbitrator it chooses, and the costs of the third arbitrator shall be divided equally between the Parties. Except in a proceeding
to enforce the results of the arbitration or as otherwise required by law, neither Party nor any arbitrator may disclose the existence, content or results of any arbitration hereunder without the prior written consent of both Parties. 
  

	11.	MISCELLANEOUS PROVISIONS 

  

	11.1.	Disclosing 

 Neither Party shall disclose the
existence or terms and conditions of this Agreement to any third party or make any public statement respecting this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld, except that each
Party may make such disclosures as are required by any applicable law or regulation provided that the disclosing Party provide reasonable advance notice of such disclosure or as soon as practicable thereafter. 

					
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	  	10	  	

	11.2.	Waiver 

 No provision of this Agreement may be
waived except in writing by both Parties hereto. No failure or delay by either Party hereto in exercising any right or remedy hereunder or under applicable law shall operate as a waiver thereof, or a waiver of any right or remedy on any subsequent
occasion. 
  

	11.3.	Force Majeure 

 Neither Party shall be in breach
hereof by reason of its delay in the performance of or failure to perform any of its obligations hereunder, if that delay or failure is caused by strikes, acts of God or the public enemy, riots, terrorism, incendiaries, interference by civil or
military authorities, compliance with governmental priorities for materials, or any fault beyond its control or without its fault or negligence. 
  

	11.4.	Applicable Law 

 This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to its conflicts of law provisions. Each Party hereby irrevocably and unconditionally consents to submit to the sole and exclusive jurisdiction of the
courts of the Commonwealth of Massachusetts and of the United States of America located in the Commonwealth of Massachusetts (the “Massachusetts Courts”) for any litigation among the parties hereto arising out of or relating to this
Agreement, waives any objection to the laying of venue of any such litigation in the Massachusetts Courts and agrees not to plead or claim in any Massachusetts Court that such litigation brought therein has been brought in any inconvenient forum or
that there are indispensable parties to such litigation that are not subject to the jurisdiction of the Massachusetts Courts. 
  

	11.5.	Invalid provisions 

 Should one or more provisions
of this Agreement be or become invalid, then the Parties hereto shall attempt to agree upon valid provisions in substitution for the invalid provisions. If the Parties are unable to agree on such valid provisions, the invalidity of such one or more
provisions of this Agreement shall nevertheless not affect the validity of the Agreement as a whole, unless the invalid provisions are of such essential importance for this Agreement that it may be reasonably presumed that the Parties would not have
entered into this Agreement without the invalid provisions. 
  

	11.6.	Approvals 

 Each Party shall use commercially
reasonable efforts to obtain any government approval required in its country of domicile to enable this Agreement to become effective, or to enable any payment hereunder to be made, or any other obligation hereunder to be observed or performed. Each
Party shall keep the other informed of progress in obtaining any such government approval, and shall cooperate with the other Party in any such efforts. 
  

	11.7.	US Restrictions 

 This Agreement is made subject to
any restrictions concerning the export of materials and technology from the United States that may be imposed upon or related to either Party to this Agreement from time to time by the Government of the United States. Furthermore, each Party agrees
that it shall not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information to any countries for which the United States Government or any agency
thereof at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the Department of Commerce or other agency of the United States Government when required by applicable
statute or regulation. 

					
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	11.8.	Assignability 

 This Agreement may not be assigned
or otherwise transferred by either Party without the prior written consent of the other Party; provided, however, that either Party may assign this Agreement, without the consent of the other Party, in connection with the transfer or sale of all or
substantially all of its assets or business or in the event of its merger or consolidation with another company. Any purported assignment in contravention of this Section 11.8 shall, at the option of the non-assigning party hereto, be null and
void and of no effect. No assignment shall release either Party from responsibility for the performance of any accrued obligation of such Party hereunder. This Agreement shall inure to the benefit of, and be binding upon and enforceable against, the
legal representative of, successor to or any permitted assignees from either of the Parties hereto. 
  

	11.9.	Counterparts 

 This Agreement may be executed in
counterparts, each of which shall be deemed to be original and both of which shall constitute one and the same Agreement. 
  

	11.10.	Relationship between the Parties 

 Nothing herein
contained shall be deemed to create an agency, joint venture, amalgamation, partnership or similar relationship between the Parties. Notwithstanding any of the provisions of this Agreement, neither Party to this Agreement shall at any time enter
into, incur, or hold itself out to third parties as having authority to enter into or incur, on behalf of the other Party, any commitment, expense, or liability whatsoever, and all contracts, expenses and liabilities in connection with or relating
to the obligations of each Party under this Agreement shall be made, paid, and undertaken exclusively by such Party on its own behalf and not as an agent or representative of the other. 
  

	11.11.	Communications 

 All communications between the
Parties with respect to any of the provisions of this Agreement shall be sent to the addresses set out below, or to such other addresses as may be designated by one Party to the other by notice pursuant hereto, by prepaid, certified mail (which
shall be deemed received by the other Party on the seventh business day following deposit in the mails), or by facsimile transmission, or other electronic means of communication (which shall be deemed received when transmitted), with confirmation by
first class letter or overnight courier, postage pre-paid, given by the close of business on or before the next following business day: 
 if
to SiBi, at: 
 Siena Biotech S.p.A. 
 Via Fiorentina, 1 
 53100 Siena, Italy 
 Attention: Dr. Giovanni Gaviraghi, 
                 C.E.O. 
 Fax: (01139) 0577 381
202 
 with a copy to: 
 Siena
Biotech S.p.A. 
 Via Fiorentina, 1 
 53100 Siena, Italy 
 Attention: Gianluca Breghi 
                 Vice President Finance & Bus. Dev. 
 Fax: (01139) 0577 381 213 

					
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 if to Elixir, at: 
 Elixir Pharmaceuticals, Inc. 
 One Kendall Square 
 Building 1000, Fifth Floor 
 Cambridge,
Massachusetts 02139 
 Attention: Alan Watson 
                 Chief Business Officer 
 Fax: (617) 995-7050 
 with a copy to: 
 Goodwin Procter LLP 
 Exchange Place

 Boston, Massachusetts 02109 
 Attention: Kingsley L. Taft, Esq. 
 Fax: (617) 523-1231 
  

	11.12.	Press Release(s) 

 Upon execution of this Agreement,
the Parties shall issue the press release(s) announcing the existence of this Agreement in the form and substance as set forth in Exhibit E attached hereto. Each Party agrees not to issue any other press release or other public statement
disclosing other information relating to this Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of the other Party. 
  

	11.13.	Further acts 

 Each Party agrees to do and perform
all such further acts and things and shall execute and deliver such other agreements, certificates, instruments and documents necessary or that the other Party may deem advisable in order to carry out the intent and accomplish the purposes of this
Agreement and to evidence, perfect or otherwise confirm its rights hereunder. 
  

	11.14.	Headings 

 The paragraph headings are for
convenience only and shall not be deemed to affect in any way the language of the provisions to which they refer. 
  

	11.15.	Entire understanding 

 This Agreement contains the
entire understanding of the Parties relating to the matters referred to herein, and may only be amended by a written document, duly executed on behalf of the respective Parties. 
  

	11.16.	Negotiations 

 Each of the Parties acknowledges and
agrees that this Agreement has been diligently reviewed by and negotiated by and between them, that in such negotiations each of them has been represented by competent counsel and that the final agreement contained herein, including the language
whereby it has been expressed, represents the joint efforts of the Parties hereto and their counsel. Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against either Party hereto as being responsible for
the wording or drafting of this Agreement or any such provision, and ambiguities, if any, in this Agreement shall not be construed against either Party, irrespective of which Party may be deemed to have authored the ambiguous provision. 

 

	11.17.	Captions 

 The captions herein have been inserted
solely for convenience of reference and in no way define or limit the scope or substance of any provision of this Agreement. 
 [Signature page follows]

					
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 IN WITNESS WHEREOF, each of the undersigned, for itself and its Affiliates, have executed this Agreement
as of the Effective Date. 
  

			
	ELIXIR PHARMACEUTICALS, INC.
	
	By:
	
	/s/ William K. Heiden
	Name:	 	
	Title:	 	

  

			
	SIENA BIOTECH S.P.A.
	
	By:
	
	/s/ Dr. Giovanni Gaviraghi
	Name:	 	Dr. Giovanni Gaviraghi
	Title:	 	Chief Executive Officer

					
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 EXHIBIT A 
  

	*	

					
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 EXHIBIT B 
 Elixir Patents 
  

	*	

					
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	  	16	  	

 EXHIBIT C 
 SiBi Patents 
  

	*	

					
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	  	17	  	

 EXHIBIT D 
 R&D Plan 
  

	*	

					
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	  	18	  	

 EXHIBIT E 
 Press Release(s) 
 TO BE ADDED 

					
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	  	19Binding Agreement between Novartis and Elixir

 EXCUTION VERSION 
 Exhibit 10.41 
 WHENEVER CONFIDENTIAL INFORMATION IS OMITTED HEREIN (SUCH OMISSIONS ARE
DENOTED BY AN ASTERISK *), SUCH CONFIDENTIAL INFORMATION HAS BEEN SUBMITTED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. 
 Binding Agreement 
 Between Novartis and Elixir Pharmaceuticals, Inc. Regarding
Rights to Ghrelin 
 Agonists and Sirtuin Modulators 
 September 4, 2007 
  

			
	Parties	  	Novartis International Pharmaceuticals Ltd. (“Novartis”) Elixir Pharmaceuticals, Inc. (“Elixir”).
		
	Meaning of “Proof of Concept”	  	The earlier of (i) successful completion of the first Phase IIa clinical trial (the purpose of which is a preliminary determination of the efficacy and safety in the target population over an
appropriate range of doses) or (ii) such time as Elixir can provide Novartis with statistically significant proof of concept of human efficacy and safety, in each case in accordance with a defined set of criteria which will be agreed between the
Parties prior to the start of Phase II clinical trials for the relevant program.
		
	Meaning of “control”	  	As used in this Agreement, “control” or “controlled” shall have the same meaning as “Control” or “Controlled” as set forth in the BMS
License Agreement (defined below), with appropriate substitutions for parties and/or subject matter, as applicable.
		
	Initial Option Payment	  	For the option rights set forth below, Novartis shall pay Elixir $250,000 upon execution of this Agreement.
	
	RIGHTS TO GHRELIN AGONISTS
		
	Ghrelin Agonists	  	The parties agree that a “Ghrelin Agonist” is a small molecule that agonizes the ghrelin receptor (also known as the GhSR-1a receptor).
		
	BMS Ghrelin Agonist Products	  	Products containing any Ghrelin Agonist licensed by Elixir under the License Agreement between Elixir and Bristol-Myers Squibb Company dated as of April 25, 2005 (“BMS License
Agreement”), and including without limitation: * and * or any back-ups or follow-on Ghrelin Agonists for any of the foregoing subject to the BMS License Agreement (“BMS Ghrelin Agonists”).

					
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 RIGHTS AGREEMENT 
  

			
	Non-BMS Ghrelin Agonist Products	  	Products containing any Ghrelin Agonist, other than a BMS Ghrelin Agonist, controlled by Elixir, which exhibits at least *% of ghrelin agonist receptor activity when compared to ghrelin in
appropriate assays, which Ghrelin Agonist is discovered or synthesized before the end of the Capture Period (“Non-BMS Ghrelin Agonists”). As used in this Agreement, the “Capture Period” means any time prior to the
earlier of (A) two years from the date of this Agreement or (B) the date on which the first BMS Ghrelin Agonist reaches Proof of Concept, whichever comes first.
		
	Territory	  	Worldwide
		
	Ghrelin Agonist Field	  	All indications, subject to the “Field” definition of the BMS License Agreement if and as applicable with respect to the BMS Ghrelin Agonists.
		
	Ghrelin Agonist Intellectual Property	  	All IP owned and licensable or otherwise controlled by Elixir related to the BMS Ghrelin Agonists or BMS Ghrelin Agonist Products or Non-BMS Ghrelin Agonists or Non-BMS Ghrelin Agonist Products,
including all IP licensed to Elixir under the BMS License Agreement with respect to the BMS Ghrelin Agonists or BMS Ghrelin Agonist Products.
		
	Development Efforts	  	Elixir will use commercially reasonable efforts to research and develop one or more of the BMS Ghrelin Agonists for so long as Novartis continues to have any outstanding rights as set forth
below; provided, however, that nothing in this paragraph is intended to limit or modify Elixir’s representations, warranties and covenants set forth below.
		
	BMS Ghrelin Agonist Option	  	 Preconditions to Novartis’s rights below:
  
 (A) BMS waives its rights under the BMS License Agreement the effect of which is that Elixir is free to enter into a “License” (as defined
in the BMS License Agreement) prior to the “Trigger Date” (as defined in the BMS License Agreement) (“Waiver”); and
  
 (B) Elixir and BMS have amended the definition of “Competitive Compound” under the BMS License Agreement such that it is limited to other
Ghrelin Agonists; and
  
 (C) None of the Non-BMS Ghrelin Agonists has
previously reached Proof of Concept; and
  
 (D) either (I) none of the
Sirtuin Modulators has previously reached Proof of Concept or (II) if any of the Sirtuin Modulators has previously reached Proof of Concept, Novartis has not exercised or otherwise has lost its rights to the Sirtuin Modulators as set forth below.

					
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 RIGHTS AGREEMENT 
  

			
		  	 In the event that Preconditions (A) and (B) above are satisfied, Elixir will provide Novartis with notice within * of the latter to occur of those
two preconditions. Such notice shall be accompanied by a report setting forth all information in Elixir’s possession or control which is reasonably requested and required by Novartis to determine whether it wishes to exercise its rights
hereunder.
  
 Provided that Preconditions (C) and (D) above are also satisfied, Novartis
will have the right, exercisable by (i) written notice, and (ii) payment of $* to Elixir within * of Elixir’s notice of the Waiver, to require that Elixir negotiate in good faith with Novartis exclusively the terms of an option
(the “Option”) for Novartis to obtain a License under the Ghrelin Agonist Intellectual Property to research, develop, manufacture and commercialize the BMS Ghrelin Agonists and the BMS Ghrelin Agonist Products in the Ghrelin
Agonist Field throughout the Territory. If Novartis fails to make such exercise, then Novartis’s rights to the BMS Ghrelin Agonists and products containing same will be of no further force or effect.
  
 Such Option shall be exercisable by Novartis, in its sole discretion, on the Trigger Date, the terms
of such License shall be agreed at the time the parties enter into the Option, and in consideration of the grant of such Option, Novartis will pay Elixir $* upon signing of the Option agreement (which agreement shall attach the agreed terms of the
License). Novartis acknowledges and agrees that, unless otherwise agreed with BMS, the terms of any license(s) (and sublicense(s)) under the BMS License Agreement will be consistent with and subject to the terms of, including without limitation
Elixir’s rights to grant sublicenses under, the BMS License Agreement.
  
 In the
event that a Waiver is granted and Elixir and BMS have amended the definition of “Competitive Compound” under the BMS License Agreement such that it is limited to other Ghrelin Agonists as provided in clause (B) above, Novartis’s
rights to the Sirtuin Modulators and products containing same (as set forth below) will be of no further force or effect.
  
 In the event that BMS contends that rights granted Novartis hereunder regarding any BMS Ghrelin Agonist violate any of the terms of the BMS Agreement, Elixir may cancel
the BMS Ghrelin Agonist Option from this Agreement and Novartis shall retain rights to the Non-BMS Ghrelin Agonists and the Sirtuin Modulators (as set forth below).

					
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 RIGHTS AGREEMENT 
  

			
		
	Non-BMS Ghrelin Agonist Right of Negotiation	  	 Preconditions to Novartis’s rights below:
  
 (A) None of the BMS Ghrelin Agonists has previously reached Proof of Concept;
  
 (B) a Non-BMS Ghrelin Agonist has reached Proof of Concept; and
  
 (C) either (I) none of the Sirtuin Modulators has previously reached Proof of
Concept or (II) if any of the Sirtuin Modulators has previously reached Proof of Concept, Novartis has not exercised or otherwise lost its rights to the Sirtuin Modulators as set forth below.
  
 In the event that Preconditions (A), (B) and (C) above are satisfied, Novartis will have the right
to exclusive negotiation with Elixir, for a period of *, of the terms of license(s) (and sublicense(s)) from Elixir under the Ghrelin Agonist Intellectual Property to research, develop, manufacture and commercialize the Non-BMS Ghrelin Agonists and
the Non-BMS Ghrelin Agonist Products in the Ghrelin Agonist Field throughout the Territory, as set forth in this section.
  
 Elixir will provide written notice to Novartis within * of the first of the Non-BMS Ghrelin Agonists to reach Proof of Concept. Such notice shall be accompanied by a
report setting forth all information in Elixir’s possession or control which is reasonably requested and required by Novartis to determine whether it wishes to exercise its rights hereunder. Novartis will have the right, exercisable by written
notice within * of Elixir’s notice, to require that Elixir negotiate in good faith with Novartis exclusively for * the terms of a license under the Ghrelin Agonist Intellectual Property to research, develop, manufacture and commercialize the
particular Non-BMS Ghrelin Agonist to reach Proof of Concept (plus any structurally related back-up compounds) and their Non-BMS Ghrelin Agonist Products in the Ghrelin Agonist Field throughout the Territory, plus mutually agreeable license scope
for Novartis improvements to such compounds. Unless Novartis has previously exercised its right to negotiate an Option over the BMS Ghrelin Agonists, Novartis will pay Elixir $* at the commencement of such negotiation period. If Novartis fails to
make such exercise, then Novartis’s rights to the Non- BMS Ghrelin Agonists and products containing same will be of no further force or effect.

					
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 RIGHTS AGREEMENT 
  

			
		  	 Other than as set forth above, the terms and procedures for Novartis’ right of negotiation with respect to such Non-BMS Ghrelin Agonists will
be substantially identical to the terms and procedures for BMS’ right of 1st negotiation under the BMS License Agreement (including, without limitation, Section 3.2 – it being acknowledged and agreed that any determination as to whether a
third party term sheet is “Less Favorable to Elixir” than the most recent term sheet offered by Novartis shall take into account any previous payment by Novartis to Elixir with respect to the Option over the BMS Ghrelin
Agonists).
  
 In the event that Novartis exercises its right of negotiation and the
Parties enter into a license agreement with respect to such Non-BMS Ghrelin Agonists and Non-BMS Ghrelin Agonist Products as contemplated above: (i) if the Parties had previously entered into an Option agreement with respect to the BMS Ghrelin
Agonists, such Option agreement shall automatically terminate and Novartis will have no further rights thereunder, (ii) Novartis’ rights to BMS Ghrelin Agonists and BMS Ghrelin Agonist Products hereunder will otherwise be of no further force or
effect, (iii) Elixir shall retain all fees paid by Novartis to Elixir with respect to the Option (without limiting the parenthetical in the preceding paragraph); and (iv) Novartis’s rights to the Sirtuin Modulators (as set forth below) will be
of no further force or effect.
  
 In the event that Preconditions (B) and (C) above are
satisfied, Novartis’s rights to the Sirtuin Modulators and products containing same (as set forth below) will be of no further force or effect.

	
	RIGHTS TO SIRTUIN MODULATORS
		
	Sirtuin Modulator Products	  	Products containing any sirtuin modulator controlled by Elixir (including pursuant to the Siena Agreement) (“Sirtuin Modulators”). For the avoidance of doubt, the Sirtuin
Modulators include both (i) sirtuin agonists controlled by Elixir (together “Sirtuin Agonists”) and (ii) SIRT1 inhibitors included in the “Compounds” which are the subject of the Collaboration Agreement between Elixir and
Siena Biotech S.p.A. dated as of February 7, 2007 (“Siena Agreement”) and all other sirtuin inhibitors controlled by Elixir (together “Sirtuin Inhibitors”).

					
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 RIGHTS AGREEMENT 
  

			
		  	An “Available Sirtuin Modulator” means (i) all Sirtuin Agonists; (ii) all Sirtuin Inhibitors which are either (A) outside of the “Compounds” which are the
subject of the Siena Agreement or (B) are “Compounds” which are the subject of the Siena Agreement over which Siena no longer has rights (as outlined below) or (C) are “Compounds” which remain subject to the Siena
Agreement and thus are available to Novartis hereunder only in those fields of use to which Siena no longer has rights (as outlined below), unless otherwise agreed between the Parties.
		
	Territory	  	Worldwide
		
	Sirtuin Modulator Field	  	All indications, including but not limited to metabolic diseases, oncology, CNS indications (including Huntington’s Disease and other neurodegenerative diseases) and HIV.
		
	Sirtuin Modulator Intellectual Property	  	All IP owned and licensable or otherwise controlled by Elixir related to the Sirtuin Modulators or Sirtuin Modulator Products, including all IP licensed to Elixir under the Siena
Agreement.
		
	Development Efforts	  	Elixir will use commercially reasonable efforts to research and develop one or more Sirtuin Modulators for so long as Novartis continues to have any outstanding rights as set forth
below.
		
	Rights of Negotiation	  	 Preconditions to Novartis’s rights below:
  
 (A)   either (I) BMS has not granted a Waiver; or
  
 (II)   BMS has granted a Waiver but Elixir
and BMS have not amended the definition of “Competitive Compound” under the BMS License Agreement such that it is limited to other Ghrelin Agonists; and
  
 (B)   None of the BMS Ghrelin Agonists or Non-BMS Ghrelin Agonists has previously reached Proof of
Concept.
  
 Subject to Preconditions (A) and (B) above, Novartis will have a right of
exclusive negotiation to obtain license(s) (and sublicense(s)) from Elixir under the Sirtuin Modulator Intellectual Property to research, develop, manufacture and commercialize certain Sirtuin Modulators and certain Sirtuin Modulator Products in the
Sirtuin Modulator Field throughout the Territory, as set forth below.
  
 Elixir will
provide notice to Novartis within * of the first of the Available Sirtuin Modulators to reach the end of preclinical development. Such notice shall be accompanied by a report setting forth all information in Elixir’s possession or
control

					
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 RIGHTS AGREEMENT 
  
  

			
		 	 which is reasonably requested and required by Novartis to determine whether it wishes its rights hereunder to apply to such Available Sirtuin
Modulator. Novartis will have the right, exercisable by written notice within * of Elixir’s notice, to reject such Available Sirtuin Modulator, in which case Novartis’ rights hereunder shall not apply to such rejected Available Sirtuin
Modulator (and, for clarity, such rights will continue to apply to the next Available Sirtuin Modulator to reach Proof of Concept, excluding such rejected Available Sirtuin Modulator). For the avoidance of doubt, such right of rejection shall apply
only with respect to the first Available Sirtuin Modulator to reach the end of preclinical development, and Novartis shall only have one such right of rejection, except when such Available Sirtuin Modulator is subject to clause (C) of such
definition and thus Siena retains an interest therein whereupon Novartis may reject such Available Sirtuin Modulator and retain its single rejection right for the next Available Sirtuin Modulator to reach the end of preclinical development in which
Siena has no interest. In the event that Novartis does not exercise its right of rejection hereunder, its rights to the Sirtuin Modulators shall be limited to such Available Sirtuin Modulator.
  
 Subject to the foregoing, Elixir will provide notice to Novartis within * of the first of the
Available Sirtuin Modulators to reach Proof of Concept. Such notice shall be accompanied by a report setting forth all information in Elixir’s possession or control which is reasonably requested and required by Novartis to determine whether it
wishes to exercise its rights hereunder. Novartis will have the right, exercisable by written notice within * of Elixir’s notice, to require that Elixir negotiate in good faith with Novartis exclusively for * the terms of a license under the
Sirtuin Modulator Intellectual Property to research, develop, manufacture and commercialize the Sirtuin Modulators and the Sirtuin Modulator Products in the Sirtuin Modulator Field throughout the Territory, but in all events limited to (i) the
class of either Sirtuin Inhibitors or Sirtuin Agonists (and their respective Sirtuin Modulator Products), depending on the type of such first Sirtuin Modulator to reach Proof of Concept, and (ii) to those Sirtuin Inhibitors or Sirtuin Agonists,
as applicable, that primarily inhibit or agonize the same sirtuin enzyme as such first Sirtuin Modulator to reach Proof of Concept (and no other sirtuin enzymes). Novartis will pay Elixir $* at the commencement of such negotiation
period.

					
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 RIGHTS AGREEMENT 
  

			
		  	  
 Novartis acknowledges and agrees that, to the extent that the option rights
apply to “Compounds” as defined in the Siena Agreement, such right of negotiation shall be subject to the rights of Siena under the Siena Agreement. Accordingly, in the event that Elixir does not have control of a Compound because either
Siena retains the right to exercise an option to obtain a license with respect to a Compound under the Siena Agreement or Elixir and Siena enter into a license agreement with respect to a Compound thereunder, Novartis’ right of negotiation
shall not apply to Siena’s interest in any such Compound and otherwise this option to Sirtuin Modulators will be subject to and consistent with the Siena Agreement.
  
 Other than as set forth above, the terms and procedures for Novartis’ right of negotiation will
be substantially identical to the terms and procedures for BMS’ right of 1st negotiation under the BMS License Agreement (including, without
limitation, Section 3.2). For clarity, any license under this option shall be limited to (i) either Sirtuin Inhibitors or Sirtuin Agonists (and their respective Sirtuin Modulator Products), and (ii) those Sirtuin Inhibitors or Sirtuin
Agonists, as applicable, that primarily inhibit or agonize, respectively, the same sirtuin enzyme as the particular Sirtuin Modulator that trigger the option as described above (and no other sirtuin enzymes).
  
 In the event that an Available Sirtuin Modulator which has not been rejected by Novartis reaches
Proof of Concept, and Novartis does not exercise its right of negotiation as set forth above, Novartis shall have no further rights with respect to Sirtuin Modulators or BMS Ghrelin Agonists or Non-BMS Ghrelin Agonists (or products containing same).

  
 In the event that Novartis exercises its option to have a right of first negotiation
as contemplated above for Sirtuin Modulators, Novartis’s rights to the BMS Ghrelin Agonists and Non-BMS Ghrelin Agonists and products containing same (as set forth above) will be of no further force or effect.

		
	GENERAL	  	
		
	No Limitations	  	Notwithstanding any of the above, Novartis shall be free to carry out its own development and commercialization activities and shall be free to enter into agreements with third parties,
including, without limitation, agreement(s) with BMS related to Ghrelin Agonists and agreement(s) with Siena related to SIRT1 inhibitors, provided that with respect to BMS and Siena (and their assignees) Novartis does not attempt to impair
Elixir’s rights with respect to those entities.

					
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 RIGHTS AGREEMENT 
  

			
	Elixir M&A	  	In the event of a change of control of Elixir (by merger, sale of assets, consolidation or otherwise), the compounds and IP subject to the foregoing options shall be limited to such compounds
and IP, and reasonable derivatives thereof, controlled by Elixir prior to such change of control.
		
	Representations and Warranties by Each Party	  	 Each Party represents and warrants to the other that, as of the first date written above:
  
 •        it has
full corporate power and authority to execute, deliver, and perform this Agreement;
  
 •        this Agreement constitutes a valid and binding agreement enforceable
against it in accordance with its terms; and
  
 •        the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) conflict with or result in a breach of any
provision of its organizational documents, or (ii) result in a breach of any agreement to which it is a party.

		
	Representations, Warranties and Covenants by Elixir	  	 Elixir represents, warrants as of the first date written above, and covenants (for so long as Novartis continues to have any outstanding rights under
this Agreement), to Novartis that:
  
 •        Elixir has the right to grant to Novartis the rights that Elixir purports to grant Novartis hereunder;
  
 •        Elixir has not granted, and will not during the term of this Agreement
grant, to any third party any rights that would interfere or be inconsistent with Novartis’ rights hereunder;
  
 •        other than as expressly set forth in the (i) BMS License Agreement, (ii)
the Siena Agreement, and (iii) agreements or arrangements with universities regarding Sirtuin Modulators (e.g., material transfer agreements), pursuant to which Elixir has either (A) ownership of the developments related to Sirtuin Modulators, or
(B) an option to obtain a license to such developments, but in any such agreements or arrangements, there are no preset financial terms with respect to upfront, milestone or royalty payments by Elixir, there are no agreements or arrangements to
which Elixir is a party relating to BMS Ghrelin Agonists or Non-BMS Ghrelin Agonists or Sirtuin Modulators that would materially limit the rights granted to Novartis under this Agreement or that would restrict Novartis’ ability to research,
develop, manufacture, register, use or commercialize BMS Ghrelin Agonists or Non-BMS Ghrelin Agonists or Sirtuin Modulators;

					
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 RIGHTS AGREEMENT 
  
  

			
		 	 •        Elixir has provided Novartis with a true and
correct copy of each of the BMS License Agreement and the Siena Agreement;
  
 •        for so long as Novartis continues to have any outstanding rights under this
Agreement with respect to BMS Ghrelin Agonists or Non-BMS Ghrelin Agonists, Elixir will not amend or modify the terms of the BMS License Agreement in a manner that materially adversely effects Novartis’ rights under this Agreement without the
prior written consent of Novartis, and for so long as Novartis continues to have any outstanding rights under this Agreement with respect to Sirtuin Modulators, Elixir will not amend or modify the terms of the Siena Agreement in a manner that
materially adversely effects Novartis’ rights under this Agreement without the prior written consent of Novartis;
  
 •        as of the date hereof, Elixir has not committed any act which amounts to an
uncured or uncurable material breach of any of its obligations under either the BMS License Agreement or the Siena Agreement; and
  
 •        for so long as Novartis continues to have any outstanding rights under this
Agreement, Elixir will use commercially reasonable efforts (i) to comply with, perform and observe in all material respects all of its obligations under each of the BMS License Agreement or the Siena Agreement (as applicable with
respect to such outstanding rights), and (ii) without the prior written consent of Novartis referencing this provision, not to commit any act or fail to perform any obligation which would give rise to any right on the part of BMS or Siena to
terminate any such agreement (again, as applicable with respect to such outstanding rights), provided that with respect to the BMS License Agreement, provided Elixir has complied with its diligence obligations hereunder, Elixir may terminate same
under Section 13.3(a) thereof if Elixir reasonably concludes that further development of BMS Ghrelin Agonists is not warranted, provided that Elixir shall consult with Novartis before exercising such BMS License Agreement termination right.

					
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 RIGHTS AGREEMENT 
  

			
	Publicity	  	 Neither Party shall use the name, symbol, trademark, trade name or logo of the other Party or its affiliates in any press release, publication or
other form of public disclosure without the prior written consent of the other Party in each instance (such consent not to be unreasonably withheld or delayed), except for those disclosures for which consent has already been obtained.
  
 Each Party agrees not to issue any press release or other public statement, whether oral or written,
disclosing the existence of this term sheet, the terms hereof or any information relating to this term sheet without the prior written consent of the other Party.
  
 Notwithstanding the foregoing, each Party may make any disclosures required of it to comply with any duty of disclosure it may have pursuant to law or governmental
regulation or pursuant to the rules of any recognized stock exchange. In the event of a disclosure required by law, governmental regulation or the rules of any recognized stock exchange, the Parties shall coordinate with each other with respect to
the timing, form and content of such required disclosure. If so requested by the other Party, the Party subject to such obligation shall use commercially reasonable efforts to obtain an order protecting to the maximum extent possible the
confidentiality of such provisions of this term sheet as reasonably requested by the other Party. If the Parties are unable to agree on the form or content of any required disclosure, such disclosure shall be limited to the minimum required as
determined by the disclosing Party in consultation with its legal counsel. Without limiting the foregoing, each Party shall consult with the other Party on the provisions of this term sheet to be redacted in any filings made by it with the
Securities and Exchange Commission (or other regulatory body) or as otherwise required by law.

		
	Miscellaneous	  	 Novartis and Elixir each covenant and agree to execute, acknowledge and deliver any and all such other documents and take any such other action as
may be reasonably necessary to carry out the intent and purposes of this Agreement.
  
 If
any provision of this Agreement is found to be invalid or unenforceable, this Agreement will remain in full force and effect, and will be reformed to be valid and enforceable while reflecting the intent of the parties to the greatest extent
permitted by law.
  
 Other than any confidentiality obligations between the parties, this
Agreement constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes all previous agreements, communications and understandings between them relating to the subject matter hereof, other than any
confidentiality obligations already in effect between them.

					
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 RIGHTS AGREEMENT 
  

			
		 	 Neither party may assign its rights and obligations under this Agreement without the other party’s
prior written consent, except that:
  
 (I)     Novartis may (a) assign its rights and obligations under this Agreement or any part hereof to one or more of its affiliates without the consent of Elixir; and (b) assign this Agreement in its
entirety to a successor to all or substantially all of its business or assets to which this Agreement relates without the consent of Elixir; and
  
 (II)   Elixir may (a) without the consent of Novartis, assign all of its rights and obligations under this
Agreement to one or more of its affiliates to which it has also assigned all of its rights and obligations under both the BMS License Agreement and the Siena Agreement; and (b) assign this Agreement in its entirety to a successor to all or
substantially all of its business or assets to which this Agreement relates (which business and assets include all of Elixir’s rights and obligations under both the BMS License Agreement and the Siena Agreement), without the consent of
Novartis.
  
 This Agreement will inure to the benefit of, and be binding upon, the
parties hereto and their respective legal representatives, successors and assigns.
  
 No
amendment, change, modification or alteration of the terms and conditions of this Agreement will be binding upon either party unless in writing and signed by the party to be charged. The waiver by either of the parties of any breach of any provision
hereof by the other party will not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself.
  
 This Agreement will be governed by, and construed and enforce in accordance with, the substantive laws of the State of New York, without regard to its principles of
conflicts of law.
  
 Any unresolved disputes between the parties relating to, arising out
of or in any way connected with this Agreement or any term or condition hereof, or the performance by either Party of its obligations hereunder, shall be resolved by final and binding arbitration held in New York, New York, according to the
commercial rules of the International Chamber of

					
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 RIGHTS AGREEMENT 
  

			
		 	 Commerce (“ICC”). The arbitration will be conducted by a panel of three arbitrators appointed in accordance with ICC rules; provided that
each party shall within thirty (30) days after the institution of the arbitration proceedings appoint an arbitrator, and such arbitrators shall together, within thirty (30) days, select a third arbitrator as the chairman of the arbitration panel,
and each arbitrator shall have significant experience in the pharmaceutical business. If the two initial arbitrators are unable to select a third arbitrator within such thirty (30) day period, the third arbitrator shall be appointed in accordance
with ICC rules. The arbitrators shall render their opinion within thirty (30) days of the final arbitration hearing. The arbitrators will have no power to award punitive damages under this Agreement and such award is expressly prohibited. Decisions
of the panel of arbitrators shall be final and binding on the Parties. Judgment on the award so rendered may be entered in any court of competent jurisdiction.
  
 Notwithstanding anything contained herein, provided Elixir has complied with its diligence obligations hereunder, (i) if no BMS Ghrelin Agonist has reached Proof of
Concept by the fifth (5th) anniversary of the date first written above, then Novartis shall have no more rights hereunder to any BMS Ghrelin Agonists or
any products containing same, (ii) if no Non-BMS Ghrelin Agonist has reached Proof of Concept by the seventh (7th) anniversary of the date first
written above, then Novartis shall have no more rights hereunder to any Non-BMS Ghrelin Agonists or any products containing same, and (iii) if no Sirtuin Modulator has reached Proof of Concept by the tenth (10th) anniversary of the date first written above, then Novartis shall have no more rights hereunder to any Sirtuin Modulators or any products containing
same.

 [remainder of this page intentionally left blank] 
 IN WITNESS of the above, the parties have caused their duly authorized representatives to execute this Agreement as of the date set forth below. 
  

									
	NOVARTIS INTERNATIONAL PHARMACEUTICALS LTD.	 		 	ELIXIR PHARMACEUTICALS, INC.
					
	By:	 	/s/ Michael Jones	 		 	By:	 	/s/ William K. Heiden
	Name:	 	Michael Jones	 		 	Name:	 	William K. Heiden
	Title:	 	Member of the Board of Directors	 		 	Title:	 	President & CEO
	Date:	 	August 29, 2007	 		 	Date:	 	9/4/07
					
	By:	 	/s/ Wendy Wiseman	 		 		 	
	Name:	 	Wendy Wiseman	 		 		 	
	Title:	 	Manager	 		 		 	
	Date:	 	August 28, 2007

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