Document:

Exhibit 10.4

SECURED
PROMISSORY NOTE

	
  $100,000.00

  	
  January 22, 2007

  
	
   

  	
  San Francisco,
  California

  

 

For Value Received, Winwin Gaming, Inc.,
a Delaware corporation (“Borrower”),
hereby unconditionally promises to pay to the order of Solidus Networks, Inc.,
a Delaware corporation (“Lender”),
in lawful money of the United States of America and in immediately available
funds, the principal sum of One Hundred Thousand Dollars ($100,000.00) (the “Loan”) together with accrued and
unpaid interest thereon, each due and payable on the dates and in the manner
set forth below.

This Promissory Note is the Note referred to in and is
executed and delivered in connection with that certain Pledge Agreement dated
as of even date herewith and executed by Borrower in favor of Lender (as the
same may from time to time be amended, modified or supplemented or restated,
the “Pledge Agreement”).  Additional rights of Lender are set forth in
the Pledge Agreement.  All capitalized
terms used herein and not otherwise defined herein shall have the respective
meanings given to them in the Pledge Agreement.

1.              Principal Repayment.  The outstanding principal amount of the Loan
shall be due and payable in full on June 30, 2007. (the “Maturity
Date”).

2.              Interest Rate.  Borrower further promises to pay interest on
the outstanding principal amount hereof from the date hereof until payment in
full, which interest shall be payable at the rate of twenty-two and four tenths
percent (22.4%) per annum or the maximum rate permissible by law (which under
the laws of the State of California shall be deemed to be the laws relating to
permissible rates of interest on commercial loans), whichever is less (the “Interest Rate”).  Interest shall be due and payable on the
Maturity Date and shall be calculated on the basis of a 360-day year for the
actual number of days elapsed.

                                              Upon the occurrence
and during the continuance of an Event of Default pursuant to Section 6 below,
all amounts owing thereunder shall bear interest at two percent (2%) over the
Interest Rate.

3.              Place of Payment.  All amounts payable hereunder shall be
payable at the office of Lender, 101 Second Street, Suite 1500, San Francisco,
CA 94105, unless another place of payment shall be specified in writing by
Lender.

4.              Application of
Payments.  Payment on this Note shall
be applied first to accrued interest, and thereafter to the outstanding
principal balance hereof.

5.              Secured Note.  The full amount of this Note is secured by
the Pledged Securities identified and described as security therefor in the Pledge
Agreement executed by and delivered by Borrower to Lender.  Borrower shall not, directly or indirectly,
create, permit or suffer to exist, and shall defend the Pledged Securities
against and take such other action as is necessary

 1
 

to remove, any Encumbrance
on or in the Pledged Securities, or in any portion thereof, except as permitted
pursuant to the Pledge Agreement.

6.              Default.  Each of the following events shall be an “Event of Default” hereunder:

(a)          Borrower fails to
pay timely any of the principal amount due under this Note on the date the same
becomes due and payable or any accrued interest or other amounts due under this
Note on the date the same becomes due and payable;

(b)          Borrower files any
petition or action for relief under any bankruptcy, reorganization, insolvency
or moratorium law or any other law for the relief of, or relating to, debtors,
now or hereafter in effect, or makes any assignment for the benefit of
creditors or takes any corporate action in furtherance of any of the foregoing;

(c)          An involuntary
petition is filed against Borrower (unless such petition is dismissed or
discharged within forty-five (45) days) under any bankruptcy statute now or
hereafter in effect, or a custodian, receiver, trustee, assignee for the
benefit of creditors (or other similar official) is appointed to take
possession, custody or control of any property of Borrower;

(d)          Failure on the part
of Borrower duly to observe or perform any covenants or agreements contained in
the Pledge Agreement;

(e)          Any representation,
warranty, certification or statement made by Borrower in the Pledge Agreement
proving to have been incorrect in any material respect when made; or

(f)            A default shall
exist under any agreement of Borrower which consists of the failure to pay any
indebtedness at maturity or which results in a right by such third party or
parties, whether or not exercised, to accelerate the maturity of indebtedness
of Borrower; provided, however, that this provision shall not apply to Borrower’s
existing default under the Calico bridge.

Upon the
occurrence of an Event of Default hereunder, all unpaid principal, accrued
interest and other amounts owing hereunder shall, at the option of Lender, and,
in the case of an Event of Default pursuant to (b)
or (c) above, automatically, be
immediately due, payable and collectible by Lender pursuant to applicable law.

7.              Waiver.  Borrower waives presentment and demand for
payment, notice of dishonor, protest and notice of protest of this Note, and
shall pay all costs of collection when incurred, including, without limitation,
reasonable attorneys’ fees, costs and other expenses.

The right to plead any and all statutes of limitations
as a defense to any demands hereunder is hereby waived to the full extent
permitted by law.

8.              Governing Law.  This Note shall be governed by, and construed
and enforced in accordance with, the laws of the State of California, excluding
conflict of laws principles that would cause the application of laws of any
other jurisdiction.

 2
 

9.              Successors
and Assigns.  The provisions of this
Note shall inure to the benefit of and be binding on any successor to Borrower
and shall extend to any holder hereof.

 

	
  Borrower

  	
  WinWin Gaming, Inc.

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Monica L. Soares

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  Monica L. Soares

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Secretary, Senior VP

  
					

 

 3Exhibit
10.5

Sent via e-mailed PDF

January 17, 2007

Patrick Rogers

WinWin Gaming,
Inc. WNWNE

8687 W. Sahara Ave.

Suite 201

Las Vegas, NV 89117

RE: WinWin Gaming, Inc. (Symbol: WNWNE)

Docket No. NQ
5313B-06

Dear Mr. Rogers:

This letter is to inform you of the decision of the Listing
Qualifications Hearings Panel regarding the failure of WinWin Gaming, Inc. (the
Company) to satisfy NASD Rules 6530 and 6540.(1)

The Company was previously notified that quotation of
its securities would cease due to the Company’s failure to file a complete Form
10QSB for the quarter ended September 30, 2006. 
The Company timely requested a hearing, which stayed the action. A
telephonic hearing was held on January 17, 2007.(2)

As of the date of the hearing, the Company had not yet
made its filings.  Accordingly, the Panel determined that the Company’s
securities are not eligible for continued quotation on the OTCBB and will
delete all quotations of the Company’s securities on the OTCBB effective with
the open of business on Friday, January 19, 2007.

The Company may request that the Listing and Hearing
Review Council review this decision.  The
request for review must be made in writing and received within 15 days from
the date of the

(1) Those rules require, in relevant part, that to be
eligible for quotation on the OTC Bulletin Board (OTCBB), (a) the issuer of a
security must be current with its reporting obligations to the Securities and
Exchange Commission (SEC) pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934; (b) the required reports must be available through
the SEC’s Electronic Data Gathering Analysis, and Retrieval system (EDGAR) or
be made available to the NASD prior to the expiration of the grace period; and
(3) the filings must be complete, i.e., that they must contain all required
certifications and have been reviewed or audited as applicable by an accountant
registered with the Public Company Accounting Oversight Board.

(2) The hearing was held pursuant to the NASD Rule
9700 Series.

decision.  Requests for review and a copy of the check
must be in writing and faxed to (301) 978-8472, with the original sent to:

Timothy J. Larkin

Counsel

Office of Appeals and Review

The Nasdaq Stock Market, Inc.

9600 Blackwell Road, 3th Floor

Rockville, MD  20850.

Mr. Larkin can be reached at (301) 978-8499.

The Company should be aware that the Listing Council
may also, on its own motion, determine to review any Panel decision within 45
calendar days after issuance of the decision. 
If the Listing Council determines to review this decision, it may
affirm, modify, reverse, dismiss, or remand the decision to the Panel.  The Company will be immediately notified in
the event the Listing Council determines that this matter will be called for
review.

Please be advised that the institution of a review,
whether by way of the Company’s request or on the initiative of the Listing
Council, will not operate as a stay of this decision.

Should you have any questions, please do not hesitate
to contact me at (301) 978-8077.

	
  Sincerely,

  
	
   

  
	
   

  
	
  /s/ Amy Horton

  	
   

  
	
  Amy Horton

  
	
  Counsel to the
  Panel

  
	
  Nasdaq Office of
  General Counsel, Listing Qualifications HearingsExhibit
10.1

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE COMMISSION. 
ASTERISKS (*)

DENOTE SUCH OMISSIONS.

EXECUTION
VERSION

ASSET PURCHASE AGREEMENT

by and between

PRAECIS PHARMACEUTICALS INCORPORATED

as Seller,

and

SPECIALITY EUROPEAN PHARMA LIMITED

as Buyer

Dated as
of January 29, 2007

TABLE OF CONTENTS

ARTICLE I

DEFINITIONS

ARTICLE II

ASSET PURCHASE

	
  Section 2.1

  	
   

  	
  Purchase and Sale of Assets; Assumption of
  Liabilities

  	
   

  	
  10

  
	
  Section 2.2

  	
   

  	
  Purchase Price and Related Matters

  	
   

  	
  15

  
	
  Section 2.3

  	
   

  	
  Closing

  	
   

  	
  17

  
	
  Section 2.4

  	
   

  	
  Additional Consideration; Mechanics

  	
   

  	
  18

  
	
  Section 2.5

  	
   

  	
  Reimbursement for Certain Minimum Annual Commitment
  Payments

  	
   

  	
  20

  
	
  Section 2.6

  	
   

  	
  Further Assurances

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF SELLER

  
	
   

  	
   

  	
   

  	
   

  	
  21

  
	
  Section 3.1

  	
   

  	
  Organization, Qualification and Corporate Power

  	
   

  	
  22

  
	
  Section 3.2

  	
   

  	
  Authority

  	
   

  	
  22

  
	
  Section 3.3

  	
   

  	
  Consents and Approvals; Noncontravention

  	
   

  	
  23

  
	
  Section 3.4

  	
   

  	
  Assigned Contracts

  	
   

  	
  24

  
	
  Section 3.5

  	
   

  	
  Closing Product Materials

  	
   

  	
  24

  
	
  Section 3.6

  	
   

  	
  Title to Acquired Assets

  	
   

  	
  25

  
	
  Section 3.7

  	
   

  	
  Intellectual Property

  	
   

  	
  26

  
	
  Section 3.8

  	
   

  	
  Brokers’ Fees

  	
   

  	
  26

  
	
  Section 3.9

  	
   

  	
  Litigation

  	
   

  	
  26

  
	
  Section 3.10

  	
   

  	
  Compliance with Laws; Governmental Approvals

  	
   

  	
  26

  
	
  Section 3.11

  	
   

  	
  PRAECIS Europe

  	
   

  	
  26

  
	
  Section 3.12

  	
   

  	
  Reliance on Representations and Warranties

  	
   

  	
  27

  
	
  Section 3.13

  	
   

  	
  No Other Representations or Warranties

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF BUYER

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Organization

  	
   

  	
  27

  
	
  Section 4.2

  	
   

  	
  Authority

  	
   

  	
  27

  
	
  Section 4.3

  	
   

  	
  Noncontravention

  	
   

  	
  28

  

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE
SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.

 

 

 i
 

 

	
  Section 4.4

  	
   

  	
  Brokers’ Fees

  	
   

  	
  28

  
	
  Section 4.5

  	
   

  	
  Reliance on Representations and Warranties

  	
   

  	
  29

  
	
  Section 4.6

  	
   

  	
  No Other Representations or Warranties

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEMNIFICATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Indemnification by Seller

  	
   

  	
  29

  
	
  Section 5.2

  	
   

  	
  Indemnification by Buyer

  	
   

  	
  29

  
	
  Section 5.3

  	
   

  	
  Claims for Indemnification

  	
   

  	
  30

  
	
  Section 5.4

  	
   

  	
  Survival

  	
   

  	
  32

  
	
  Section 5.5

  	
   

  	
  Limitations

  	
   

  	
  32

  
	
  Section 5.6

  	
   

  	
  Treatment of Indemnification Payments

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDITIONAL
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Access to Information; Record Retention; Cooperation

  	
   

  	
  33

  
	
  Section 6.2

  	
   

  	
  Collection of Accounts Receivable

  	
   

  	
  36

  
	
  Section 6.3

  	
   

  	
  Restrictive Covenants

  	
   

  	
  36

  
	
  Section 6.4

  	
   

  	
  Complaints; Recalls

  	
   

  	
  36

  
	
  Section 6.5

  	
   

  	
  Post-Closing Matters

  	
   

  	
  37

  
	
  Section 6.6

  	
   

  	
  Tax Matters

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Press Releases and Announcements

  	
   

  	
  37

  
	
  Section 7.2

  	
   

  	
  No Third Party Beneficiaries

  	
   

  	
  38

  
	
  Section 7.3

  	
   

  	
  Entire Agreement

  	
   

  	
  38

  
	
  Section 7.4

  	
   

  	
  Succession and Assignment

  	
   

  	
  38

  
	
  Section 7.5

  	
   

  	
  Notices

  	
   

  	
  38

  
	
  Section 7.6

  	
   

  	
  Amendments and Waivers

  	
   

  	
  40

  
	
  Section 7.7

  	
   

  	
  Severability

  	
   

  	
  40

  
	
  Section 7.8

  	
   

  	
  Expenses

  	
   

  	
  40

  
	
  Section 7.9

  	
   

  	
  Governing Law

  	
   

  	
  40

  
	
  Section 7.10

  	
   

  	
  Submission to Jurisdiction

  	
   

  	
  41

  
	
  Section 7.11

  	
   

  	
  Construction

  	
   

  	
  41

  
	
  Section 7.12

  	
   

  	
  WAIVER OF JURY TRIAL

  	
   

  	
  41

  
	
  Section 7.13

  	
   

  	
  Exhibits and Schedules

  	
   

  	
  42

  
	
  Section 7.14

  	
   

  	
  Counterparts and Facsimile Signature

  	
   

  	
  42

  

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE
SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.

 

 

 ii
 

 

	
  Section 7.15

  	
   

  	
  Transfer and Sales Tax

  	
   

  	
  42

  
	
  Section 7.16

  	
   

  	
  Bulk Transfer Laws

  	
   

  	
  43

  

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 

 

 iii
 

SCHEDULES (as set forth in the Disclosure Schedule)

	
  Schedule 1.1(a)(iii)

  	
   

  	
  Certain Assigned Contracts

  	 

	
  Schedule 1.1(b)

  	
   

  	
  Designated Intellectual Property

  	 

	
  Schedule 1.1(c)

  	
   

  	
  Manufacturing Contracts

  	 

	
  Schedule 1.1(d)

  	
   

  	
  Minimum Annual Commitment Payments

  	 

	
  Schedule 1.1(e)

  	
   

  	
  Registrations

  	 

	
  Schedule 1.1(f)

  	
   

  	
  Rel-EaseTM Patents

  	 

	
  Schedule 1.1(g)

  	
   

  	
  PRAECIS Europe Shares

  	 

	
  Schedule 1.1(h)

  	
   

  	
  Closing Product Materials

  	 

	
  Schedule 2.1(b)(v)

  	
   

  	
  Excluded Assets

  	 

	
  Schedule 3.3(a)

  	
   

  	
  Governmental Consents

  	 

	
  Schedule 3.3(b)

  	
   

  	
  Third Party Consents

  	 

	
  Schedule 3.3(c)

  	
   

  	
  Conflicts

  	 

	
  Schedule 3.4

  	
   

  	
  Contracts

  	 

	
  Schedule 3.6

  	
   

  	
   

  	 

	
  Schedule 3.7(a)

  	
   

  	
  Termination and Settlement Agreements

  	 

	
  Schedule 3.7(b)

  	
   

  	
  Abarelix License

  	 

	
  Schedule 3.11

  	
   

  	
  PRAECIS Europe Contracts

  	 

	
   

  	
   

  	
   

  	 

	
  EXHIBITS

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  Exhibit A

  	
   

  	
  Form of Rel-EaseTM License

  
	
  Exhibit B-1

  	
   

  	
  NDA Transfer Letter

  
	
  Exhibit B-2

  	
   

  	
  IND 51,710 Transfer Letter

  
	
  Exhibit B-3

  	
   

  	
  IND 56,259 Transfer Letter

  
	
  Exhibit B-4

  	
   

  	
  IND 68,939 Transfer Letter

  
	
  Exhibit C-1

  	
   

  	
  NDA Assumption Letter

  
	
  Exhibit C-2

  	
   

  	
  IND 51,710 Assumption Letter

  
	
  Exhibit C-3

  	
   

  	
  IND 56,259 Assumption Letter

  
	
  Exhibit C-4

  	
   

  	
  IND 68,939 Assumption Letter

  
	
  Exhibit D

  	
   

  	
  Bill of Sale

  
	
  Exhibit E

  	
   

  	
  Assignment of Intellectual Property

  
	
  Exhibit F

  	
   

  	
  Assumption Agreement

  

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH THE
SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.

 

 

 iv

THIS ASSET PURCHASE AGREEMENT (as may be amended, modified, or
supplemented from time to time as provided herein, this “Agreement”) is
made as of the 29th day of January, 2007, by and between PRAECIS
PHARMACEUTICALS INCORPORATED, a Delaware corporation (“Seller”) and SPECIALITY
EUROPEAN PHARMA LIMITED, a companyorganized
under the laws of England and Wales (“Buyer”).  Seller and Buyer are referred to collectively
herein as the “Parties” and each, individually as a “Party.”

W I T N E
S S E T H:

WHEREAS, Buyer wishes to purchase from Seller, and Seller wishes to
sell to Buyer, all of Seller’s right, title and interest in and to the Acquired
Assets (as defined below), upon the terms and subject to the conditions set
forth herein; and

WHEREAS, Buyer has agreed to assume the Assumed Liabilities (as defined
below), upon the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the premises, covenants,
representations and warranties contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties, intending to be legally bound, agree as follows:

ARTICLE I

DEFINITIONS

Whenever used in this
Agreement, the terms defined below shall have the respective indicated
meanings:

“Abarelix License” means
Seller’s license agreement dated as of October 17, 1996, as amended as of June
3, 1998, with Indiana University Foundation (or its assignees) relating to the
Indiana University Intellectual Property.

“Abarelix Product” means
(i) abarelix for injectable suspension and (ii) any other product in whatever
form covered by the Abarelix License.

“Accountant” has
the meaning set forth in Section 2.2(b).

“Accounts Receivable”
means all accounts receivable, notes receivable and indebtedness for borrowed
money or overdue accounts receivable, in each case, due and owing from any
Third Party.

“Acquired Assets” has the
meaning set forth in Section 2.1(a).

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 1
 

“Acquired Assets MAE” means
a material adverse effect on the Acquired Assets taken as a whole; provided,
however, that none of the following circumstances, facts or effects
(each an “Effect”), either alone or in combination, shall be deemed to
constitute, nor shall any of the following be taken into account in determining
whether there has been or will be, an Acquired Assets MAE:  (i) any Effect resulting from Seller’s
compliance with the terms of this Agreement; (ii) any Effect that results from
changes or facts or circumstances affecting the pharmaceutical or biotechnology
industries, or pharmaceutical products for ***************, generally or (iii)
any Effect disclosed in the Disclosure Schedule.

“Act” means the Federal
Food, Drug, and Cosmetic Act, 21 U.S.C. 321, et seq., as amended, and the rules
and regulations promulgated thereunder.

“Additional
Abarelix Product” means any Abarelix Product in a significantly different
formulation to that of the Plenaxisâ Product ************************** including
any sustained release or depot formulation.

“Additional
Marketing Region” means, collectively, the countries or territories other than
(i) ************** and (ii) *************************************.

“Agreed Amount” has the
meaning set forth in Section 5.3(b).

“Agreement” has the
meaning set forth in the first paragraph of this Agreement.

“Affiliate” means, with
respect to any Person, any Person which directly or indirectly through stock
ownership or otherwise either controls, or is controlled by or under common
control with, such Person.

“Allocation Resolution
Period” has the meaning set forth in Section 2.2(b).

“Ancillary Agreements”
has the meaning set forth in Section 2.3(b).

“Assigned Contracts” means,
collectively, (i) the Abarelix License, (ii) the Manufacturing Contracts and
(iii) the Contracts set forth on Schedule 1.1(a)(iii) pursuant to which
services are or have been provided to Seller or PRAECIS Europe with respect to
Plenaxisâ Product or the Product Operations; provided,
however, that “Assigned Contracts” shall not be deemed to include any
Excluded Contracts.

“Assumed Liabilities” has
the meaning set forth in Section 2.1(c).

“BfArM” means
Bundesinstitut für Arzneimittel und Medizinprodukte, or any successor agency
with substantially the same responsibility for regulating the development,
manufacture and sale of human pharmaceutical products.

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 2
 

“Business Day” means any
day other than (i) a Saturday or Sunday or (ii) a day on which banking
institutions located in Boston, Massachusetts are permitted or required by law,
executive order or governmental decree to remain closed.

“Buyer” has the meaning
set forth in the first paragraph of this Agreement.

“Buyer Indemnitees” has
the meaning set forth in Section 5.1.

“Buyer Licensed Party”
means (i) Affiliates of Buyer and members of Buyer’s distribution chain for
Abarelix Products, and (ii) any other Third Parties, in each case to which
Buyer grants a license with respect to, or assigns, any of Buyer’s rights under
this Agreement, any Ancillary Agreement or under any of the Assigned Contracts,
or otherwise directly or indirectly sells any Abarelix Product under any
agreement, arrangement or understanding with Buyer or any Person referred to in
clause (i) of this definition.

“Buyer Licensed Party
Consideration” means ****************************.

“Claim Notice” has the
meaning set forth in Section 5.3(b).

“Claimed Amount” has the
meaning set forth in Section 5.3(b).

“Closing” has the meaning
set forth in Section 2.3(a).

“Closing Date” means the
date on which the Closing occurs, which shall be the date of this Agreement.

“Closing Product
Inventory” means ********************************.

“Closing Product
Materials” means ********************************.

“Code” means the Internal
Revenue Code of 1986, as amended.

“Commercially Reasonable
Efforts” means *****************************.

“Confidentiality
Agreement” means that certain confidentiality agreement dated October 4, 2006
between Buyer and Seller.

“Consideration” has the
meaning set forth in Section 2.2(b).

“Contracts” means any and
all purchase orders, sales orders, leases, subleases, licenses, indentures,
contracts, agreements and other legally binding arrangements, whether oral or
written, in effect between Seller or PRAECIS Europe, on the one hand, and one
or more Third Parties, on the other hand.

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 3
 

“Cost Adjusted Sales”
means ***************************************.

“Damages” shall have the
meaning set forth in Section 5.1.

“Designated Intellectual
Property” all patents, patent applications, domain names, trademarks, service
marks, trademark applications and trade names, including the Trademark Rights,
set forth on Schedule 1.1(b).

“Development Costs” has
the meaning set forth in Section 2.4(b).

“Disclosure Schedule” has
the meaning set forth in Article III.

“Dossier” means the
regulatory dossier supporting the Mutual Recognition Procedure.

“EMEA” means the European
Medicines Evaluation Agency, or any successor agency with substantially the same
responsibility for regulating the development, manufacture and sale of human
pharmaceutical products.

************************************************.

“End User Kits” means
****************************************.

“Excluded Assets” has the
meaning set forth in Section 2.1(b).

“Excluded Contracts”
means any oral or written contract, commitment, purchase order, lease, note or
other agreement to which Seller is a party, other than the Assigned Contracts.

“Excluded Records” means
(i) records related to human resources and any other employee-related files and
records; (ii) notes and lab notebooks; (iii) personal files and records; and
(iv) records relating to the filing, prosecution, issuance, maintenance,
enforcement or defense of any intellectual property rights not included in the
Designated Intellectual Property or related to the Abarelix License.

“European Marketing
Region” means *******************************.

“Final Allocation” has
the meaning set forth in Section 2.2(b).

“FDA” means the United
States Food and Drug Administration, or any successor agency with substantially
the same responsibility for regulating the development, manufacture and sale of
human pharmaceutical products.

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 4
 

“GAAP” means generally
accepted accounting principles as used in the United States of America,
consistently applied.

“German Marketing
Authorization” means the Certificate of Registration with respect to Plenaxisâ Product
received by PRAECIS Europe from BfArM on September 27, 2005 to market Plenaxisâ Product
in Germany, together with all amendments, supplements and updates thereto.

“Governmental Authority”
means any governmental department, commission, board, bureau, agency, court or
other instrumentality of any country, or any state, county, jurisdiction,
municipality or other political subdivision of such country.

“Governmental Consents”
has the meaning set forth in Section 3.3(a).

“Governmental Filings”
registrations, filings and notices with or to Governmental Authorities.

“Gross Sales” means
*********************.

“Incremental
Consideration” has the meaning set forth in Section 2.4(a)(i).

“INDs” means the
investigational new drug applications listed on Schedule 1.1(e).

“Indemnified Party” has
the meaning set forth in Section 5.3(a).

“Indemnifying Party” has
the meaning set forth in Section 5.3(a).

“Indiana University
Intellectual Property” means the patents and other intellectual property
covering GnRH antagonist compounds, including abarelix (PPI-149), the active
ingredient of Plenaxisâ Product,
licensed to Seller under the Abarelix License.

“Information” has the
meaning set forth in Section 6.1(a).

“Initial Regulatory
Target Countries” means *******************.

“Intangible Property
Rights” has the meaning set forth in Section 2.1(a)(iv).

“Knowledge of Seller” or “Seller’s
Knowledge” has the meaning set forth in Article III.

“Knowledge of Buyer” has
the meaning set forth in Article IV.

“Law” means any federal,
state, local or foreign law, statute or ordinance, or any

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 5
 

rule, regulation or regulatory requirement promulgated
by any Governmental Authority.

“Lien” means any lien,
charge, claim, pledge, security interest, conditional sale agreement or other
title retention agreement, lease, mortgage, security agreement, right of first
refusal, option, restriction, license, covenant, or other encumbrance, other
than (i) mechanic’s, materialmen’s, and similar liens and (ii) liens on goods
in transit incurred pursuant to documentary letters of credit, in each case
arising in the Ordinary Course of Business of Seller and not material to the
Acquired Assets.

“MAA” means the marketing
authorization application submitted by PRAECIS Europe to BfArM on June 23, 2003
(as supplemented or amended from time to time).

“Manufacturing Contracts”
means Contracts relating to the manufacture of Plenaxisâ Product which are in effect on the Closing
Date, all of which Manufacturing Contracts are set forth on Schedule 1.1(c).

“Marketing Region” means
**************************.

“Material Third Party
Consents” means Third Party Consents, if any, required under any Manufacturing
Contract.

“Medical Product
Regulatory Authority” means any Governmental Authority that regulates the
safety, efficacy, manufacture, investigation, sale or marketing of
pharmaceuticals, medical products, biologics or biopharmaceuticals, including,
without limitation, the FDA and EMEA.

“Medicare National
Coverage Determination” means Seller’s files relating to the determination by
the Centers for Medicare and Medicaid Services with respect to Plenaxisâ Product,
listed as NCD Section Number 110.19.

“Minimum Annual
Commitment Payments” means the payment amounts set forth opposite the name of
each Manufacturing Contract or the reference to the Baxter Agreement, in each
case listed on Schedule 1.1(d).

“Mutual Recognition Procedure” means the
procedure whereby a Regulatory Target Country may recognize the German
Marketing Authorization in accordance with Article 28(4) of Directive
2001/83/EC.  Such terms also include any
analogous or successor procedure under any successor legislation.

“NDA” means the New Drug Application (No. 21-320)
approved by the FDA, together with all amendments, supplements and updates
thereto.

“NDA Assumption Letter”
has the meaning set forth in Section 2.1(e).

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 6
 

“NDC Number” means a
National Drug Code number, as listed with the FDA.

“Net Sales” means
*****************.

“Net Sales Deductions”
means ****************.

“Order” means any order,
judgment, decree or ruling of any Governmental Authority or arbitrator.

“Ordinary Course of
Business” means an action that is in compliance with applicable Laws and is
generally consistent in all material respects with the past practices of Seller
and its Affiliates with respect to Seller’s Product Operations or other
activities in respect of the Acquired Assets in the twelve (12) months
preceding the effective date of this Agreement.

“Parties” has the meaning
set forth in the first paragraph of this Agreement.

“Permitted Liens” means
Liens for Taxes that are not yet due and payable andLiens
arising from any actions of Buyer.

“Person” means an
individual, a corporation, a limited liability company, a partnership, an
association, a trust or other entity or organization, including a federal,
state, local or foreign government or regulatory entity or political
subdivision or an agency or instrumentality thereof.

“Plenaxisâ Product”
means *******************.

“PRAECIS Europe” means
PRAECIS Europe Limited, a private limited company incorporated in England and
Wales.

“Preliminary Allocation”
has the meaning set forth in Section 2.2(b).

“Proceeding” shall mean
any action, suit, litigation, arbitration, proceeding (including any civil,
criminal, administrative, investigative or appellate proceeding), prosecution,
contest, hearing, inquiry, inquest, audit, examination or investigation brought
or conducted by or before any Governmental Authority or any arbitrator or
arbitration panel.

“Product Operations”
means the development (preclinical and clinical), manufacture (including the
right to have manufactured), marketing, distribution and sale of Plenaxisâ Product.

“Product Records” means
collectively (i) regulatory and other reports (including

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 7
 

pharmacovigilance reports), information on adverse
events, written contact regulatory reports and formal minutes with any Governmental
Authority, any documents (including, without limitation, clinical and
pre-clinical animal study data) relating to the Registrations or to the subject
matter of the Registrations, in each case to the extent relating exclusively to
the Plenaxisâ Product
or Seller’s Product Operations and for the period commencing no earlier than
1995, and (ii) records for the period commencing no earlier than 1995 relating
to the filing, prosecution, issuance, maintenance, enforcement or defense of
the Designated Intellectual Property or in relation to the Abarelix License, in
the case of (i) and (ii) that are owned or controlled by or otherwise in the
possession of Seller as of the Closing Date and except to the extent included
in or primarily related to any Excluded Assets or Retained Liabilities and
excluding the Excluded Records.

“Purchase Price” has the
meaning set forth in Section 2.2(a).

“Quarter” has the meaning
set forth in Section 2.4(c).

“Registration Assumption
Letters” has the meaning set forth in Section 2.1(e).

“Registrations” means the
NDA, the German Marketing Authorization and the investigational new drug
applications listed in Schedule 1.1(e).

“Registration Transfer
Letter” has the meaning set forth in Section 2.1(e).

“Regulatory Approval”
means recognition by a Regulatory Target Country of the German Marketing
Authorization in accordance with the Mutual Recognition Procedure and any
approval to market Plenaxisâ Product
in any other country or territory.

“Regulatory Target
Countries” means **********************.

“Rel-EaseTM” means Seller’s
proprietary depot drug delivery technology as described under the Seller’s
Rel-EaseTM Patents as of the date of this Agreement.

“Rel-EaseTM License” means
the License Agreement, substantially in the form of Exhibit A, **********************.

“Retained Liabilities”
has the meaning set forth in Section 2.1(d).

“Royalties” has the
meaning set forth in Section 2.4(a)(ii).

“Royalty Bearing IP”
means *****************.

“Royalty Term” has the
meaning set forth in Section 2.4(b).

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 8
 

“Sale” (as a noun) means
***************************.

“Sales Statement” has the
meaning set forth in Section 2.4(c).

“Section 1060 Forms” has
the meaning set forth in Section 2.2(b).

“Seller” has the meaning
set forth in the first paragraph of this Agreement.

“Seller Indemnitees” has
the meaning set forth in Section 5.2.

“Seller Licensed Party
Consideration” means ******************.

“Seller’s NDC Number”
means the NDC Number that has been used by Seller in connection with Plenaxisâ Product prior to Closing.

“Seller’s Product
Operations” means any Product Operations conducted by Seller through the
Closing Date.

“Seller Purposes” has the
meaning set forth in Section 6.1(b).

“Seller’s Rel-EaseTM
Patents” means the Seller’s issued patents listed on Schedule 1.1(f).

“Shares” means all of the
issued and outstanding shares of PRAECIS Europe as identified on Schedule
1.1(g).

“Taxes” (and with
correlative meanings, “Tax” and “Taxable”) means all taxes of any kind imposed
by a Governmental Authority, including but not limited to those on, or measured
by or referred to as income, gross receipts, financial operation, sales, use,
ad valorem, value added, alternative or add-on minimum, franchise, profits,
license, withholding, payroll (including all contributions or premiums pursuant
to governmental social security laws or pursuant to other tax laws and
regulations), employment, excise or severance and any interest, fines,
penalties, assessments or additions to tax imposed with respect to such items
or any contest or dispute thereof.

“Tax Returns” means all
reports, returns, schedules and any other documents required to be filed with a
Governmental Authority (including federal, state, local and foreign) with
respect to Taxes, including any attachments, schedule and amendment thereof.

“Third Party” means any
entity other than Seller or Buyer and their respective Affiliates.

“Third Party Claim” has
the meaning set forth in Section 5.3(a).

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 9

“Third Party Consents”
has the meaning set forth in Section 3.3(b).

“Trademark Rights” has
the meaning set forth in Section 2.1(a).

“UK Business Day” means
any day other than (i) a Saturday or a Sunday or (ii) a day on which banking
institutions located in the United Kingdom are permitted or required by
law to remain closed.

“Valid Claim” means a
claim of an issued and unexpired patent that has not been held permanently
revoked, unenforceable or invalid by a decision of a court or other
Governmental Authority of competent jurisdiction, unappealable or un-appealed
within the time allowed for appeal, and that has not been admitted to be
invalid or unenforceable through reissue or disclaimer or otherwise.

ARTICLE II

ASSET PURCHASE

Section 2.1                                      Purchase and
Sale of Assets; Assumption of Liabilities. 

(a)           Transfer
of Assets.  Upon and subject to the
terms and conditions set forth in this Agreement, at the Closing, Seller shall
sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase
and acquire from Seller, all of Seller’s right, title and interest in and to
the following assets, properties and rights of Seller (the “Acquired Assets”),
excluding, however, the Excluded Assets:

(i)            all
of Seller’s rights under the Assigned Contracts, with respect to the period
following Closing;

(ii)           the
Registrations, subject, however, to Section 6.1(b);

(iii)          the
name “Plenaxis” and any variant thereof, the trademarks and trade names and all
registrations thereof and all related registration applications set forth on Schedule
1.1(b) and all proceeds of the foregoing and the right to sue for past,
present and future infringements of any of the foregoing and all future
proceeds of such suits (the “Trademark Rights”), and the domain names
set forth on Schedule 1.1(b);

(iv)          the
Designated Intellectual Property (other than the Trademark Rights), and other
intangible property rights owned by Seller as of the Closing Date to the extent
primarily related to Plenaxisâ Product or

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 10
 

Seller’s Product Operations, including, to the extent so
related, trade secrets, technical information and know-how (collectively, the “Intangible
Property Rights”), it being understood for the avoidance of doubt that
Intangible Property Rights does not include Seller’s rights under the Abarelix
License or Seller’s rights with respect to Rel-EaseTM or Seller’s Rel-EaseTM
Patents;

(v)           all
brochures and other promotional and printed materials, trade show materials
(including displays), videos, web pages, advertising and/or marketing
materials, package inserts and packaging materials (all in physical form, pdf,
quark, or other electronic file and camera-ready artwork) in Seller’s
possession or under its control as of the Closing Date previously used
exclusively in connection with Seller’s promotion and sale of the Plenaxisâ Product; provided, however, that
Seller shall be obligated to provide only one copy of any electronic file
containing any of the foregoing;

(vi)          copies
of all customer and supplier lists, marketing studies and consultant reports
related exclusively to the Plenaxisâ Product or
Seller’s Product Operations to the extent maintained by Seller and as in
existence and in Seller’s possession or under its control as of the Closing
Date, and all complaint files and adverse event files related exclusively to
the Plenaxisâ Product or Seller’s Product Operations and as
in existence and in Seller’s possession or under its control as of the Closing
Date;

(vii)         all
Closing Product Materials;

(viii)        all the goodwill of Seller’s Product Operations;

(ix)           all
of Seller’s right, title, and interest in and to the Plenaxisâ Product as of the Closing Date, including all
rights of Seller and its Affiliates to develop, manufacture, make and have
made, offer to sell, sell, distribute, promote, and use the Plenaxisâ Product, to the extent Seller has such rights;

(x)            the
Rel-EaseTM License;

(xi)           the
manufacturing equipment located at Baxter Pharmaceutical Solutions LLC and
which is used or held for use in the operation and conduct of Seller’s Product
Operations;

(xii)          all
Product Records, to the extent not covered by any of the foregoing;

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 11
 

(xiii)         the Medicare National Coverage Determination;

(xiv)        the
Shares; and

(xv)         all
other assets, properties and rights owned by Seller as of the Closing Date
principally used in Seller’s Product Operations or otherwise principally used
in relation to Plenaxisâ Product.

Such Acquired Assets shall be free and clear of all Liens, other than
Permitted Liens.  Notwithstanding
anything contained herein, Seller may retain two (2) archival copies of (A) the
Registrations, (B) the Medicare National Coverage Determination, (C) any
Product Records, and any supplements and associated materials related to the
foregoing items (A) and (B), in each case solely for legal, regulatory, Tax or
accounting purposes.

This Agreement shall not constitute an agreement to assign any Acquired
Asset (including any Assigned Contract), or any claim or right arising
thereunder if an attempted assignment thereof, without consent of a Third
Party, would constitute a breach or other contravention of any agreement with
respect to such Acquired Asset.  Seller
and Buyer will each use reasonable commercial efforts (but without any payment
of money by Seller, other than out-of-pocket legal expenses) to obtain the
consent of the other party or parties to any such Acquired Asset (including any
Assigned Contract) or any claim or right arising thereunder for the assignment
thereof to Buyer.  If such consent is not
obtained, or if an attempted assignment of any such Acquired Asset (including
any Assigned Contract) or claim or right would be ineffective or would
adversely affect the rights of Buyer thereunder so that Buyer would not in fact
receive all such rights, Buyer shall not, except as provided in this sentence,
assume liabilities or obligations with respect thereto, and Seller shall at its
expense effect an alternate arrangement, in the form of a sublicense, sublease,
subcontract, operating agreement or other arrangement, in any case reasonably
satisfactory to Buyer, which results in Buyer obtaining all the benefits and
assuming the liabilities and other obligations with respect to any such
Acquired Asset or Seller shall enforce for the benefit of Buyer with Buyer
assuming Seller’s obligations, any and all rights of Seller against a Third
Party.  Seller will promptly pay to Buyer
when received all monies received by such Party under or with respect to any
such Acquired Asset (including any Assigned Contract) as to which such
arrangement has been entered into, or any claim or right or any benefit arising
thereunder, except to the extent the same represents an Excluded Asset as
contemplated by Section 2.1(b) below. 
For the avoidance of doubt, nothing under this Section 2.1(a) or under
Section 2.6 shall require Seller to effect the recordation of any assignments
of any Trademark Rights.

(b)           Excluded
Assets. Notwithstanding anything to the contrary in this Agreement, Seller
is not selling, conveying, assigning, transferring or delivering to Buyer any
assets, properties or rights of Seller other than those specifically identified
in Section 2.1(a).  The term “Excluded
Assets” shall mean:

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 12
 

(i)            any
right, title or interest, including without limitation, any rights in any
issued United States and foreign patents or other intellectual property and
pending United States and foreign patents or other intellectual property
applications, relating to Seller’s Rel-EaseTM drug delivery technology and depot
formulation, but excluding rights granted to Buyer pursuant to the Rel-EaseTM
License;

(ii)           any
Accounts Receivable (including Accounts Receivable with respect to Plenaxisâ Product which has been shipped prior to the
Closing), and, for the avoidance of doubt, any cash, cash equivalents, bank
deposits or similar cash items, or prepaid expenses (other than royalties) of
Seller and its Affiliates, in each case as of the Closing (whether or not
reflected on the books of Seller or its Affiliates as of the Closing Date);

(iii)          any
rights, claims and credits, including all guaranties, warranties, indemnities
and similar rights in favor of Seller or any of its Affiliates or any of their
respective employees to the extent relating to (A) any other Excluded Asset,
(B) any Excluded Liability or (C) any matter to the extent Seller indemnifies
any Buyer Indemnitees pursuant to Article V;

(iv)          any
Excluded Records; and

(v)           any
other assets, properties and rights set forth on Schedule 2.1(b)(v).

(c)           Assumed
Liabilities. Buyer shall, and hereby does, assume and agree to pay, perform
and discharge when due the following liabilities and obligations (the “Assumed
Liabilities”):

(i)            all
liabilities arising, and all obligations of Seller to be performed, from and
after the Closing under the Assigned Contracts; provided, however,
that any obligations in respect of Minimum Annual Commitment Payments shall be
included in Assumed Liabilities whether or not such payments are required to be
paid prior to the Closing;

(ii)           all
liabilities and obligations of Seller and/or PRAECIS Europe under the
Registrations to the extent to be performed from and after the Closing, including with respect to the post-marketing commitments
and pharmacovigilance obligations relating to FDA approval of the NDA and any
outstanding commitments under the German Marketing Authorization;

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 13
 

(iii)          all
liabilities with respect to all actions, suits, proceedings, disputes, claims
or investigations arising out of or related to the ownership, use, maintenance
or operation of any Abarelix Product, the Acquired Assets or the Product
Operations after the Closing, subject to the proviso to clause (i) above;

(iv)          all
liabilities and obligations relating to the replacement, return or refund of
the purchase price of any Abarelix Product distributed or sold by or on behalf
of Buyer, any of its Affiliates or any Buyer Licensed Party after the Closing;

(v)           all
liabilities and obligations relating to any claim for breach of warranty in
respect of (i) any Abarelix Product manufactured, distributed or sold by or on
behalf of Buyer, any of its Affiliates or any Buyer Licensed Party after the
Closing or (ii) the Closing Product Materials;

(vi)          all
liabilities and obligations arising out of or relating to any product liability
claim involving (i) any Abarelix Product manufactured, distributed or sold by
or on behalf of Buyer, any of its Affiliates or any Buyer Licensed Party after
the Closing or (ii) the Closing Product Materials, in each case including,
without limitation, injury to or death of persons or damage to or destruction
of property, to the extent such injury, death, damage or destruction occurs
after the Closing; and

(vii)         all
other liabilities and obligations not specifically referred to in subsections
(i) through (vi) above (subject to the proviso to clause (i) above), arising
out of or related to the ownership, use, maintenance or operation of any
Abarelix Product, the Acquired Assets or the Product Operations after the
Closing, including, without limitation, the tax liabilities to which reference
is made in the second sentence of Section 7.15(b).

(d)           Retained
Liabilities. Buyer shall not be obligated hereunder to be responsible for,
assume or agree to pay, perform or discharge, and Seller shall remain
responsible and liable for, any and all liabilities and obligations of Seller
(whether known or unknown, whether absolute or contingent, whether liquidated
or unliquidated and whether due or to become due), other than the Assumed
Liabilities (the “Retained Liabilities”).

(e)           Registrations.
On the Closing Date, Seller shall assign or transfer to Buyer, and Buyer will
assume, the Registrations to the extent provided in this Agreement.  Without limiting the generality of the
foregoing, attached as Exhibits B-1 through B-4 are copies
of the letters to be duly executed by and submitted by or on behalf of Seller
to the

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 14
 

FDA on
the Closing Date authorizing the transfer of ownership of the NDA and the INDs
from Seller to Buyer (each such letter, a “Registration Transfer Letter”)
pursuant to 21 C.F.R. § 314.72.  As soon
as practicable after the Closing and the receipt by Buyer of copies of the
Registration Transfer Letters and evidence of the FDA’s receipt of each such
letter, Buyer shall execute and submit to the FDA the letters, substantially in
the form of the letters attached as Exhibits C-1 through C-4,
acknowledging Buyer’s commitment to assume ownership of the NDA and the INDs
(collectively, the “Registration Assumption Letters”).

Section 2.2                                      Purchase Price
and Related Matters.

(a)           Purchase
Price. In consideration of the sale and transfer of the Acquired Assets,
Buyer shall (i) reimburse Seller for any Minimum Annual Commitment Payments
made by Seller and documented for Buyer, in accordance with Section 2.5 and
(ii) pay the Incremental Consideration, the Seller Licensed Party Consideration
and the Royalties, each as provided in Section 2.4 (the payments contemplated
by subsections (i) and (ii), collectively, the “Purchase Price”) and
(iii) assume the Assumed Liabilities as provided in Section 2.1(c).  All payments under this Agreement to Seller
shall be made in United States Dollars by wire transfer of immediately
available funds to an account designated by Seller in writing at least two (2)
Business Days prior to the date that the payment is due and shall be
non-refundable.

(b)           Allocation.

(i)            Buyer
shall propose to Seller an allocation of the Purchase Price **********************
plus the Assumed Liabilities among the Acquired Assets for tax purposes (the “Consideration”)
in accordance with the methodology required by Section 1060 of the Code within
forty-five (45) Business Days after the Closing Date (the “Preliminary
Allocation”).  Within ten (10)
Business Days following the receipt of the Preliminary Allocation, Seller shall
have the right to provide Buyer with a written notice objecting to the
Preliminary Allocation.  Within five (5)
Business Days following receipt of Seller’s objections, if any, to the
Preliminary Allocation (the “Allocation Resolution Period”), Buyer and
Seller shall negotiate in good faith to resolve any differences regarding the
Preliminary Allocation, and Buyer shall make such changes as are reasonably
requested by Seller (as so resolved, the “Final Allocation”). If Seller
does not object to the Preliminary Allocation within ten (10) Business Days a
set forth above, the Preliminary Allocation shall be deemed to be the Final
Allocation for purposes of this Agreement.

(ii)           If
Buyer and Seller are unable to resolve any differences with regard to the
Preliminary Allocation within the Allocation Resolution Period, then Buyer and
Seller shall jointly engage an

CONFIDENTIAL INFORMATION OMITTED
AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

 15
 

internationally recognized accounting firm (the “Accountant”).  The Accountant shall resolve any such
differences based upon its appraisal of the fair value of the Acquired Assets
among which the Consideration is to be allocated.  Buyer and Seller shall promptly provide to
the Accountant such information as the Accountant may reasonably request in
connection with the preparation of such allocation and shall request that the
Accountant prepare and deliver to Buyer and Seller such allocation as promptly
as practicable.  Buyer and Seller shall
each pay 50% of the fees and expenses of the Accountant for its services under
this Section 2.2(b)(ii).  The resolution
by the Accountant of the matters set forth in this Section 2.2(b)(ii) shall be
conclusive and binding upon Buyer and Seller. 
Buyer and Seller agree that the procedure set forth in this Section
2.2(b)(ii) for resolving disputes with respect to the Preliminary Allocation
shall be the sole and exclusive method for resolving any such disputes; provided,
however, that this provision shall not prohibit either Party from
instituting litigation to enforce any ruling of the Accountant.  The Accountant’s determination shall be
deemed to be the Final Allocation for purposes of this Agreement.

(iii)          Buyer
and Seller shall (x) be bound by the Final Allocation for all Taxes purposes,
(y) timely file IRS Form 8594 and all Tax Returns required to be filed in
connection with the Final Allocation (and any other forms or reports required
to be filed pursuant to Section 1060 of the Code or any comparable provisions
of U.S. local or state, or foreign law (the “Section 1060 Forms”)), in
accordance with the Final Allocation, and (z) take no position inconsistent
with the Final Allocation in any Section 1060 Form or Tax Return, any audit or
examination by, or any proceeding before, any Governmental Authority or
otherwise, unless otherwise required by the final determination of a Governmental
Authority.  Buyer and Seller shall make
proper adjustments to the Final Allocation at the time Buyer makes any of the
payments contemplated by this Section 2.2(a)(iii).

(iv)          In
the event that the Final Allocation is disputed by any Governmental Authority,
the Party receiving notice of such dispute shall promptly notify and consult
with the other Party and keep such other Party apprised of material
developments concerning resolution of such dispute.  The Party receiving notice of such dispute
shall control any examination, investigation, audit or other proceeding
resulting from such dispute by any taxing authority regarding the Final
Allocation; provided, however, that the other Party shall have
the nonexclusive right to participate in such examination, investigation, audit
or other proceeding at its sole cost and expense.

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AND FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

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(c)           Payments
of the Purchase Price. Any and
all payments of the Purchase Price as set forth in Section 2.2(a) shall be made
free and clear of and without deduction for any and all Taxes.  If Buyer shall be required by applicable Law
to deduct any such Taxes from or in respect of any such payment, then (i) such
payment shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.2(c)) Seller shall receive an amount equal to the payment
it would have received had no such deductions been made, (ii) Buyer shall make
such deductions and (iii) Buyer shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
Law.

Section 2.3                                      Closing.

(a)           Time and
Location. The closing of the transactions contemplated by this Agreement
(the “Closing”) shall take place, and is taking place, at the offices of
Skadden, Arps, Slate, Meagher & Flom LLP in Boston, Massachusetts (or at
such other place as the parties may designate in writing), commencing at 10:00
a.m., Boston time, on the date of this Agreement.

(b)           Actions
at the Closing. At the Closing:

(i)            Seller
shall execute and deliver to Buyer a Bill of Sale substantially in the form of Exhibit
D;

(ii)           Seller
shall execute and deliver the Assignment of Intellectual Property substantially
in the form of Exhibit E, suitable for recordation in the United States
Patent and Trademark Office and/or United States Copyright Office, as
applicable, or any other applicable Governmental Authority to evidence the
assignment of intellectual property rights thereunder;

(iii)          Seller
shall deliver to Buyer a copy of each executed Registration Transfer Letter;

(iv)          Seller
and Buyer shall execute and deliver to each other counterparts of the Rel-EaseTM
License;

(v)           Seller
and Buyer shall execute and deliver to each other counterparts of an Assignment
and Assumption Agreement substantially in the form of Exhibit F;

(vi)          Seller
shall deliver (or cause to be delivered) to Buyer all of the Governmental
Consents set forth in Schedule 3.3(a) (not otherwise identified on such
Schedule as not being delivered);

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COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

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(vii)         Seller
shall deliver (or cause to be delivered) to Buyer a copy of duly executed
Material Third Party Consents and other Third Party Consents to the extent
obtained by Seller through the Closing Date;

(viii)        Seller shall deliver to Buyer a certificate of corporate good
standing of Seller in Delaware and a certificate as to the incumbency of
officers of Seller executing this Agreement and the Ancillary Agreements and
the adoption by Seller’s board of directors of authorizing resolutions with
respect to the transactions contemplated by this Agreement;

(ix)           Buyer
shall deliver to Seller a certificate of good standing (or analogous
equivalent) of Buyer in England and Wales and a certificate as to the
incumbency of officers of Buyer executing this Agreement and the Ancillary
Agreements and the adoption by Buyer’s board of directors of authorizing
resolutions with respect to the transactions contemplated by this Agreement;
and

(x)            Seller
shall deliver to Buyer certificate(s) representing the Shares, duly endorsed
(or accompanied by duly executed stock powers), for transfer to Buyer.

The agreements and instruments referred to in clauses
(i), (ii), (iii), (iv) and (v) above and the Registration Assumption Letters
are referred to herein as the “Ancillary Agreements.”

Section 2.4                                      Additional
Consideration; Mechanics.

(a)           Additional
Consideration.  

(i)            Incremental
Consideration.  Buyer shall pay to
Seller *****************************. 
The payments described in this Section 2.4(a)(i) are collectively
referred to as the “Incremental Consideration”. 
At such time as Buyer delivers the Sales Statement to Seller, Buyer
shall pay to Seller the Incremental Consideration due hereunder for the
applicable Quarter. 
********************.

(ii)           Seller
Licensed Party Consideration.  Buyer
shall notify Seller within three (3) Business Days of the receipt by Buyer or
any of its Affiliates of any Buyer Licensed Party Consideration.  Buyer shall pay or cause to be paid to Seller
the Seller Licensed Party Consideration within ten (10) Business Days of the
receipt by Buyer or any such Affiliate of such Buyer Licensed Party
Consideration, together with a calculation of such Seller Licensed Party
Consideration, including a breakdown of any

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COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

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reimbursed costs and expenses which have been excluded in
determining the applicable Buyer Licensed Party Consideration.

(iii)          Royalties.
******************************.

(b)           Conduct
of the Product Operations.

Buyer shall, and shall cause its controlled Affiliates to, use
Commercially Reasonable Efforts to commercialize, or cause to be
commercialized, Plenaxisâ Product in **********.  Buyer shall use Commercially Reasonable
Efforts to obtain Regulatory Approval for Plenaxisâ Product in each of the Regulatory Target
Countries, including, in the Initial Regulatory
Target Countries only, using Commercially Reasonable Efforts to commence, as
soon as practicable and no later than one hundred eighty (180) days after the
Closing Date, the Mutual Recognition Procedure for Plenaxisâ Product. 
After obtaining a Regulatory Approval in any Regulatory Target Country,
Buyer shall, and shall cause its controlled Affiliates to, use Commercially
Reasonable Efforts to commercialize, or cause to be commercialized, Plenaxisâ Product
in the Regulatory Target Countries. 
Buyer shall notify Seller within two (2) Business Days after commencing
the Mutual Recognition Procedure for Plenaxisâ Product in a Regulatory Target Country or
filing for the applicable Regulatory Approval in any other country.  For purposes of this Section 2.4(b), “commencing”
the Mutual Recognition Procedure for Plenaxisâ Product in a Regulatory Target Country means
Buyer’s confirmation both to the applicable Governmental Authority in ********
and in such Regulatory Target Country of the date of dispatch of the Dossier to
such Regulatory Target Country.  For the
avoidance of doubt, none of the following shall, in and of itself, constitute a
failure to use Commercially Reasonable Efforts under this Section 2.4(b):  (i) not commencing or causing to be commenced
a Mutual Recognition Procedure in any Regulatory Target Country other than an
Initial Regulatory Target Country; (ii) ceasing or causing to be discontinued
efforts to obtain Regulatory Approval in any Regulatory Target Country; or
(iii) not commencing or continuing, or causing not to be commenced or
continued, efforts to commercialize Plenaxisâ Product in any Regulatory Target Country.

(c)           Reports.  Buyer shall deliver to Seller, within
forty-five (45) days after the last day of each calendar quarter (each, a “Quarter”),
a statement (each, a “Sales Statement”), setting forth (i) the aggregate
amount of Gross Sales by or on behalf of Buyer or its Affiliates for each
Abarelix Product (including unit quantities) for such Quarter, (ii) the
aggregate Net Sales for such Quarter, including a breakdown of the Net Sales
Deductions (which deductions shall be aggregated by category), for each
Abarelix Product in each Marketing Region **********************, (iii) the
aggregate Cost Adjusted Sales for such Quarter, (iv) ********************* and
(v) the calculation of the Incremental Consideration for such Quarter and (vi)
the calculation of the Royalties for such Quarter.

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COMMISSION.

ASTERISKS (*) DENOTE SUCH
OMISSIONS.

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(d)           Late
Payments; Collections. Any amount not paid when due under this Section 2.4
shall bear interest at an annual rate equal to the lesser of (i) the highest
U.S. Prime Interest Rate per annum published in the Wall Street Journal on the
first Business Day after the payment first became due, plus three (3)
percentage points, and (ii) the highest rate permitted by applicable law.

(e)           Books
and Records; Audits.  
Notwithstanding Section 6.1 to the contrary, Buyer and its Affiliates
shall keep full, true and accurate books of account sufficient to determine the
amounts payable pursuant to this Section 2.4.

Seller shall have the right to have the books and records of Buyer and
its Affiliates audited by a qualified independent certified public accounting
firm selected by Seller, subject to Buyer’s approval, which approval shall not
be unreasonably withheld or delayed, under appropriate confidentiality
provisions, to ascertain the accuracy of the reports and payments under this
Section 2.4 for any year ending not more than thirty-six (36) months prior to
the date of such request.  For the
avoidance of doubt, Seller’s audit right shall extend to ascertaining the
accuracy of Development Costs and reimbursed costs and expenses which have been
excluded in determining Buyer Licensed Party Consideration.  Such audit shall be conducted upon at least
ten (10) days’ advance written notice during normal business hours, not more
than once in each year, and in a manner that does not interfere unreasonably
with the business of the audited entity. 
The accounting firm shall disclose to Seller only whether such reports
are correct or incorrect and the specific details concerning any
discrepancies.  Subject to Buyer’s right
to dispute such amounts, any underpayment determined by such audit shall
promptly be paid by Buyer after delivery to Buyer of such accounting firm’s
report so concluding.  In the event such
accounting firm concludes that amounts were overpaid by Buyer during such
period, subject to Seller’s right to dispute such amounts, Seller shall
promptly repay Buyer the amount of such overpayment after delivery to Buyer and
Seller of such accounting firm’s written report so concluding.  Seller and Buyer
shall treat all financial information subject to review under this Section
2.4(e) in accordance with the confidentiality provisions of this Agreement and
shall cause the accounting firm selected by it to enter into a customary and
mutually satisfactory confidentiality agreement with Buyer obligating such firm
to retain all such financial information in confidence pursuant to such
confidentiality agreement.  If Buyer has
underpaid an amount due under this Section 2.4 by more than ten percent (10%) of
the Royalties due hereunder for the period being reviewed, Buyer shall
reimburse Seller for the reasonable fees and costs charged by such accounting
firm (with all fees and costs of the audit to be borne by Seller in all other
cases).

Section 2.5             Reimbursement
for Certain Minimum Annual Commitment Payments.

Seller shall pay any Minimum Annual Commitment Payments payable in
respect of the year 2006 and forthwith
provide evidence of such payments to Buyer who shall reimburse Seller
for the amount of such Minimum Annual Commitment Payments thus paid,
promptly upon receipt of evidence of such payments but in any event no
later than ten (10) UK Business Days after the Closing Date.  For the avoidance of
doubt, other than with respect to Minimum Annual Commitment

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Payments payable in respect
of the year 2006, this Section 2.5 shall not limit Buyer’s obligations
under Section 2.1(c).

Section 2.6             Further
Assurances.

At any time and from time to time after the Closing Date, as and when
requested by any Party, the other Party shall promptly execute and deliver, or
cause to be executed and delivered, all such documents, instruments and
certificates and shall take, or cause to be taken, all such further or other actions
as are reasonably necessary to evidence and effectuate the transactions
contemplated by this Agreement, including, with respect to Seller, executing
and delivering any and all further materials, items, documents and instruments
of conveyance, transfer or assignment as may be reasonably requested by Buyer
to effect, record or verify the transfer to and vesting in Buyer of all of
Seller’s or PRAECIS Europe’s right, title and interest in and to the Acquired
Assets.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER

For purposes of this Agreement, the phrase “to the Knowledge of Seller”,
“to Seller’s Knowledge” or any phrase of similar import shall mean and be
limited to the actual knowledge, after reasonable inquiry, by the following
officers of Seller:  President and Chief
Executive Officer, Vice President and Chief Financial Officer, Senior Vice
President, Regulatory Affairs and Project Management, and Vice President, Legal
and Secretary.  Seller represents and
warrants (except that in the case of Section 3.12, Seller acknowledges) to
Buyer as of the date hereof as set forth in Section 3.1 through Section 3.12 of
this Article III, subject to such exceptions and disclosures as are set forth
in the disclosure schedule supplied by Seller to Buyer and dated as of the date
hereof (the “Disclosure Schedule”). 
Each section or schedule of the Disclosure Schedule shall qualify only
the corresponding numbered sections or subsections hereof to which such
Disclosure Schedule section or schedule relates and shall not qualify any other
provision of this Agreement, except to the extent there is a specific
cross-reference or it is readily apparent from the face of such disclosure that
such disclosure is applicable to such other provision, including as an
exception to the representations and warranties in such other provision.  References herein to a numbered Schedule
refer to such numbered schedule in the Disclosure Schedule.

Section 3.1             Organization,
Qualification and Corporate Power. 

Seller is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and is duly qualified to
conduct business under the

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laws of each jurisdiction where the character of the
properties owned, leased or operated by it or the nature of its activities, in
each case as they relate primarily to Seller’s Product Operations as of the
date hereof, makes such qualification necessary, except for any such failure to
be qualified that would not have an Acquired Assets MAE.  Seller has all requisite corporate power and
authority to carry on the Product Operations to the extent conducted by Seller
as of the date hereof and to own the Acquired Assets.

Section 3.2             Authority.

Seller has all requisite corporate power and authority to execute and
deliver this Agreement and the Ancillary Agreements and to consummate the
transactions contemplated and perform its obligations hereunder and
thereunder.  The execution, delivery and
performance by Seller of this Agreement and the Ancillary Agreements and the
consummation by Seller of the transactions contemplated hereby and thereby have
been duly and validly authorized by all necessary corporate action on the part
of Seller and no other further authorization or consent of Seller or its board
of directors or stockholders will be necessary. 
This Agreement has been, and such Ancillary Agreements will be, duly
executed and delivered by Seller and, assuming this Agreement and each such
Ancillary Agreement constitute the legal, valid and binding obligation of
Buyer, this Agreement constitutes, and each such Ancillary Agreement will
constitute, a legal, valid and binding obligation of Seller, enforceable
against Seller in accordance with its respective terms.

Section 3.3             Consents
and Approvals; Noncontravention.

(a)           Schedule
3.3(a) sets forth a complete and accurate list of all consents, waivers,
approvals, orders, permits or authorizations of, or registrations,
declarations, payments or filings with, any Governmental Authority that, as of
the date hereof, are required by, or with respect to, Seller in connection with
ownership, use, maintenance or operation of the Plenaxisâ Product, the Acquired Assets, or the Product
Operations to the extent conducted by Seller as of the date hereof or the
execution and delivery of this Agreement and the Ancillary Agreements by
Seller, the consummation by Seller of the transactions contemplated hereby and
thereby or the performance of Seller’s obligations hereunder and thereunder
(the “Governmental Consents”).

(b)           Schedule
3.3(b) sets forth a complete and accurate list (the “Third Party
Consents”) of all consents, waivers, approvals, or authorizations of, or notices
to, any Third Party (other than a Governmental Authority) that are required by
or with respect to Seller in connection with the execution and delivery of this
Agreement and the Ancillary Agreements by Seller, the consummation by Seller of
the transactions contemplated hereby and thereby or the performance of Seller’s
obligations hereunder and thereunder.

(c)           Except as
expressly contemplated by this Agreement, neither the execution and delivery by
Seller of this Agreement or the Ancillary Agreements to which

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Seller
will be a party, nor the consummation by Seller of the transactions
contemplated hereby or thereby, will:

(i)            conflict
with or violate any provision of Seller’s Amended and Restated Certificate of
Incorporation, as amended, or Seller’s Third Amended and Restated By-Laws;

(ii)           require
on the part of Seller any filing with, notice to or any permit, authorization,
consent or approval of, any Medical Product Regulatory Authority or other
Governmental Authority or give any Medical Product Regulatory Authority or
other Governmental Authority the right to revoke, withdraw, suspend, cancel,
terminate or modify, any Registration;

(iii)          (A)
conflict with, result in a breach of, constitute (with or without due notice or
lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party the right to terminate or modify, or
require any notice, consent or waiver under, the Assigned Contracts or any
other contract, lease, sublease, license, sublicense, franchise, permit,
indenture, agreement or mortgage for borrowed money or instrument of
indebtedness (1) primarily relating to Seller’s Product Operations to which
Seller is a party or by which Seller is bound or (2) to which any of the
Acquired Assets are subject, except in any such case or in the aggregate as
would not have an Acquired Assets MAE or (B) result in the creation of any Lien
(other than Permitted Liens) upon any of the Acquired Assets;

(iv)          conflict
with, or violate any Order, writ or injunction specifically naming Seller or,
to Seller’s Knowledge, applicable to any of the Acquired Assets; or

(v)           violate
any statute, rule or regulation or other Law applicable to Seller or any of the
Acquired Assets.

Section 3.4             Assigned
Contracts.

(a)           True and
complete copies of each of the Assigned Contracts (including all amendments,
supplements, modifications and waivers thereof) have been delivered to Buyer by
Seller.

(b)           Each
Assigned Contract is currently valid and in full force and effect, and is
enforceable by Seller or PRAECIS Europe, as applicable, in accordance with its
terms, subject to bankruptcy, insolvency, reorganization, moratorium or similar
laws now or hereafter in effect relating to creditors’ rights generally and to
general principles of equity.

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(c)           Neither
Seller nor PRAECIS Europe has waived any of its rights under the Assigned
Contracts.

(d)           Neither
Seller nor PRAECIS Europe is in default, and no party has notified Seller or
PRAECIS Europe that it is in default, under any Assigned Contract.  To Seller’s Knowledge, no event has occurred,
and no circumstances or condition exists, that would, with or without notice or
lapse of time:

(i)            result
in a violation or breach of any of the provisions of any Assigned Contract;

(ii)           give
any Person the right to declare a default or exercise any remedy under any
Assigned Contract;

(iii)          give
any Person the right to accelerate the maturity or performance of any Assigned
Contract or to cancel, terminate or modify any Assigned Contract; or

(iv)          otherwise
have an Acquired Asset MAE in connection with any Assigned Contract.

Section 3.5             Closing
Product Materials.

The information
included in the NDA, the MAA and updated stability data (each as supplemented
or amended from time to time) with respect to Closing Product Materials, in
each case previously made available to Seller, is complete and accurate in all
material respects.

Section 3.6             Title
to Acquired Assets.

Seller or, with respect to the Assigned Contracts listed on Schedule
3.11, PRAECIS Europe, has good and valid title and, without limitation of and
subject to the last paragraph of Section 2.1(a), the right to sell and transfer
to Buyer in accordance with this Agreement good title to all of the Acquired
Assets, free and clear of all Liens except for Permitted Liens.  None of the Permitted Liens consisting of
Liens for Taxes that are not yet due and payable would reasonably be expected
to materially impair the continued use and operation of the Acquired Assets to
which they relate.  Subject to the last
paragraph of Section 2.1(a), the delivery to Buyer of the instruments of
transfer of ownership contemplated by this Agreement will vest good title to
the Acquired Assets in Buyer, free and clear of all Liens except for Permitted
Liens.  Upon Closing, subject to Section
6.5 and the last paragraph of Section 2.1(a), Buyer will have the right to
possess, to the extent tangible, and to use, all Acquired Assets.

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Section 3.7             Intellectual
Property.

(a)           Seller is
the sole owner of the entire right, title and interest in the Intangible
Property Rights and the Trademark Rights existing at the Closing Date, subject
to licenses granted pursuant to the Manufacturing Contracts.  Schedule
3.7(a) sets forth a list of termination and settlement agreements whereby
material license and collaboration agreements with respect to the
commercialization of Plenaxisâ Product previously entered into by Seller (excluding
the Manufacturing Contracts) were terminated and all rights granted by
Seller pursuant to such license and collaboration agreements reverted to
Seller.  True and correct copies of such termination and settlement
agreements have previously been made available to Buyer.  To Seller’s Knowledge, the conception,
development and reduction to practice of the Intangible Property Rights and the
Trademark Rights existing as of the Closing Date have not constituted or
involved the misappropriation of trade secrets or other rights or property of
any Person;

(b)           Seller is
the exclusive licensee under the Abarelix License to the extent set forth
therein, and, as of the Closing Date, there are no actual or, to Seller’s
Knowledge, threatened claims or disputes pending between Seller and Indiana
University Foundation (or its assignees);

(c)           (i) the
Intangible Property Rights, (ii) the Trademark Rights, (iii) Seller’s rights
under the Abarelix License and with respect to Rel-EaseTM and (iv) Seller’s
Rel-EaseTM Patents constitute all of the intellectual property rights within
Seller’s control as of the Closing Date relating to Seller’s Product Operations
as of the Closing Date;

(d)           true,
complete and correct copies of the complete file wrapper and other material
correspondence with any patent office relating to the prosecution, validity and
enforceability of (i) the Designated Intellectual Property, (ii) the patents
under the Abarelix License and (iii) Seller’s Rel-EaseTM Patents have been made
available to Buyer prior to the Closing Date, and to Seller’s Knowledge, there
is no material reason to believe that any of such intellectual property rights
are not valid;

(e)           the
Designated Intellectual Property, the patents licensed to Seller under the
Abarelix License and Seller’s Rel-EaseTM Patents and the Registrations have been
maintained in all material respects in accordance with applicable legal
requirements and all applicable fees have been paid on or before the due date
for payment; or

(f)            to Seller’s
Knowledge, there are no current infringements of Designated Intellectual
Property, the patents under the Abarelix License or Seller’s Rel-EaseTM Patents
by any person and the trade secrets, technical information and know-how within
the Intangible Property Rights and Product Records have been kept confidential
or have been disclosed (i) to Third Parties only under terms of confidentiality
(except as provided in clause (ii)) or (ii) to a Governmental Authority in
connection with the development and commercialization of Abarelix Products.

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Section 3.8             Brokers’
Fees.

Seller has not employed or engaged, and does not have any liability or
obligation to pay any fees or commissions to, any broker, finder, investment
banker or agent with respect to the transactions contemplated by this Agreement
other than Canaccord Adams, the fees and expenses of which shall be solely the
responsibility of Seller.

Section 3.9             Litigation.

There is no Proceeding pending of which Seller has received notice or,
to the Knowledge of Seller, threatened against or affecting Seller with respect
to any of the Acquired Assets, including any such Proceeding alleging that (i)
the Intangible Property Rights, the patents under the Abarelix License and with
respect to Rel-EaseTM the Seller’s Rel-EaseTM Patents or the Trademark Rights are
invalid, or (ii) the disclosing, copying, making, licensing, assigning or
exploiting of the Intangible Property Rights, the patents under the Abarelix
License and Seller’s Rel-EaseTM Patents or Trademark Rights violate, infringe or
otherwise conflict or interfere with any intellectual property or proprietary
right of any Person.  Neither Seller nor
any of the Acquired Assets is subject to any Order or, to the Knowledge of
Seller, any proposed Order, that would have an Acquired Assets MAE.

Section 3.10           Compliance
with Laws; Governmental Approvals. 

To Seller’s Knowledge, Seller is not now, and during the past five
years has not been, in conflict with, or in default, breach or violation of,
any Law applicable to the use, maintenance or operation of the Acquired Assets
or Seller’s Product Operations, or by which any of the Acquired Assets is bound
or affected, in each case which would have an Acquired Assets MAE.  Seller has all Governmental Consents
necessary for Seller to (i) own the Plenaxisâ Product
and the Acquired Assets, and (ii) use, maintain or operate, as applicable, the
Plenaxisâ Product, the Acquired Assets and the Product
Operations to the extent used, maintained or operated by Seller as of the
Closing Date, except (in the case of (i) or (ii)) where the failure to have
such Governmental Consents would not have an Acquired Assets MAE.  No suspension or cancellation of any such
Governmental Consent is pending of which Seller has received notice or, to the
Knowledge of Seller, threatened.

Section 3.11           PRAECIS
Europe.

PRAECIS Europe is a private limited company duly organized, validly
existing and (to the extent such concept is applicable) in good standing under
the laws of England and Wales.  PRAECIS
Europe has all requisite corporate power and authority to hold the German
Marketing Authorization and to be a party to and perform its obligations under
the Contracts listed on Schedule 3.11. 
The authorized equity securities of PRAECIS Europe consist of two (2)
ordinary shares, par value £1.00 per share, of which two (2) shares are issued
and outstanding and constitute the Shares. 
Seller owns the Shares free

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and clear of all Liens.  No legend or other reference to any purported
Lien appears upon any certificate representing any of the Shares.  The Shares have been duly authorized and
validly issued and are fully paid and nonassessable.  There are no Contracts relating to the
issuance, sale or transfer of the Shares. 
PRAECIS Europe has conducted no business and has no liabilities except
(i) applying for, receiving and holding the German Marketing Authorization,
(ii) as a party to the Contracts listed on Schedule 3.11, copies of
which have been made available to Buyer and (iii) as an obligor on intercompany
indebtedness payable by PRAECIS Europe to Seller, which will be capitalized
upon or prior to the Closing.

Section 3.12           Reliance
on Representations and Warranties.

Seller acknowledges that Buyer has entered into this Agreement on the
basis of, and in reliance upon the representations and warranties contained in
this Article III.

Section 3.13           No Other
Representations or Warranties.

Except for the representations and warranties of Seller expressly set
forth in this Agreement or in the Ancillary Agreements, neither Seller nor any
other Person makes any other express or implied representation or warranty on
behalf of Seller or otherwise.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

For purposes of this Agreement, the phrase, “to the Knowledge of Buyer”,
“to Buyer’s Knowledge” or any phrase of similar import shall mean and be
limited to the actual knowledge, after reasonable inquiry, by the executive
officers of Buyer.  Buyer represents and
warrants (except that in the case of Section 4.5, Buyer acknowledges) to Seller
as of the date hereof as set forth in Section 4.1 through Section 4.5 of this
Article IV.

Section 4.1             Organization.

Buyer is a company duly organized, validly existing and in good
standing under the laws of England and Wales. 
Buyer has all requisite corporate power and authority to carry on the
business in which it is now engaged and to own and use the properties now owned
and used by it.

Section 4.2             Authority.

Buyer has all requisite corporate power and authority to execute and
deliver this Agreement and the Ancillary Agreements and to consummate the
transactions contemplated by and perform its obligations hereunder.  The execution, delivery and performance by
Buyer of this Agreement and the Ancillary Agreements and the consummation by
Buyer of the transactions contemplated hereby and thereby, have been

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duly authorized by all necessary corporate action on
the part of Buyer and no other further authorization or consent of Buyer or its
board of directors, lenders or stockholders will be necessary.  This Agreement has been, and such Ancillary
Agreements will be, duly executed and delivered by Buyer and, assuming this
Agreement and each such Ancillary Agreement constitute the legal, valid and
binding obligation of Seller, this Agreement constitutes, and each such
Ancillary Agreement will constitute, a legal, valid and binding obligation of
Buyer, enforceable against Buyer in accordance with its respective terms.

Section 4.3             Noncontravention.

Neither the execution and delivery by Buyer of this Agreement or the
Ancillary Agreements to which Buyer will be a party, nor the consummation by
Buyer of the transactions contemplated hereby or thereby, will:

(a)           conflict
with or violate any provision of the charter or bylaws (or analogous
organizational documents) of Buyer;

(b)           except
with respect to Governmental Filings to be made with respect to the
Registrations, require on the part of Buyer any filing with, or permit,
authorization, consent or approval of, any Medical Product Regulatory Authority
or other Governmental Authority;

(c)           conflict
with, result in a breach of, constitute (with or without due notice or lapse of
time or both) a default under, result in the acceleration of obligations under,
create in any party any right to terminate or modify, or require any notice,
consent or waiver under, any contract or agreement to which Buyer is a party or
by which Buyer is bound;

(d)           violate
any Order, writ or injunction specifically naming, or to Buyer’s Knowledge
applicable to, Buyer or any of its properties or assets; or

(e)           violate
any statute, rule or regulation applicable to Buyer or any of its properties or
assets.

Section 4.4             Brokers’
Fees.

Buyer has not employed or engaged, and does not have any liability or
obligation to pay any fees or commissions to, any broker, finder, investment
banker or agent with respect to the transaction contemplated by this Agreement.

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Section 4.5             Reliance
on Representations and Warranties.  

Buyer acknowledges that Seller has entered into this
Agreement on the basis of, and in reliance upon, the representations and
warranties of Buyer contained in this Article IV.

Section 4.6             No
Other Representations or Warranties.

Except for the representations and warranties of Buyer expressly set
forth in this Agreement or in the Ancillary Agreements, neither Buyer nor any
other Person makes any other express or implied representation or warranty on
behalf of Buyer or otherwise.

ARTICLE V

INDEMNIFICATION

Section 5.1             Indemnification
by Seller.

Subject to the terms and conditions of this Article V, from and after
the Closing, Seller shall indemnify Buyer and its officers, directors,
employees, agents, representatives and its Affiliates (the “Buyer
Indemnitees”) in respect of, and hold the Buyer Indemnitees harmless from
and against, any and all liabilities, obligations, judgments, interest, losses,
assessments, damages, fines, fees, penalties, costs and expenses (including
reasonable attorneys’ fees and expenses of investigating and defending claims,
lawsuits, complaints, actions or other pending or threatened litigation)
(collectively, “Damages”) incurred or suffered by any of the Buyer
Indemnitees arising out of or resulting from or (in the case of clause (c))
constituting:

(a)           any breach
of any representation or warranty of Seller contained in this Agreement or any
Ancillary Agreement;

(b)           any
failure by Seller to perform or observe any covenant or agreement contained in
this Agreement or any Ancillary Agreement; or

(c)           any
Excluded Assets or Retained Liability.

Section 5.2             Indemnification
by Buyer.

Subject to the terms and conditions of this Article V, from and after
the Closing Buyer shall indemnify Seller and its officers, directors,
employees, agents, representatives and its Affiliates (the “Seller Indemnitees”)
in respect of, and hold the Seller Indemnitees harmless from and against, any
and all Damages incurred or suffered by any of the Seller Indemnitees arising
out of or resulting from or (in the case of clause (c)) constituting:

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(a)           any breach of any representation or warranty of Buyer
contained in this Agreement or any Ancillary Agreement;

(b)           any failure by Buyer to perform or observe any
covenant or agreement contained in this Agreement or any Ancillary Agreement;

(c)           any Assumed Liability; or

(d)           any actions or proceedings by a Medical Product
Regulatory Authority resulting from Buyer’s use of Seller’s NDC Number,
including those relating to any actual or alleged misbranding of mislabeling of
the Closing Product Materials from and after the Closing Date.

Section 5.3             Claims for
Indemnification.

(a)           Third Party Claims. All claims for indemnification made under this
Agreement arising out of or resulting from any claim, demand, action, suit, or
proceeding made or brought by a Third Party (a “Third Party Claim”)
against an Indemnified Party shall be made in accordance with the following
procedures.

(i)            The Buyer Indemnitee(s) or Seller Indemnitee(s), as
applicable (an “Indemnified Party”), shall give prompt written
notification to the Person from whom indemnification is sought under this
Article V (the “Indemnifying Party”) of the commencement of any Third
Party Claim for which indemnification may be sought or, if earlier, upon the
receipt of any such claim or demand by a Third Party; provided, however,
that the failure so to notify the Indemnifying Party promptly or at all shall
not relieve the Indemnifying Party of any liability or obligation it may have
to the Indemnified Party hereunder except to the extent of actual prejudice
caused by such failure. Such notification shall include a description in
reasonable detail (to the extent known by the Indemnified Party) of the facts
constituting the basis for such Third Party Claim and the amount of the Damages
claimed.  Within twenty-five (25) days
after delivery of such notification, the Indemnifying Party may, upon written
notice thereof to the Indemnified Party, assume control of the defense of such
Third Party Claim with counsel reasonably satisfactory to the Indemnified
Party.

(ii)           The Party not controlling such defense may participate
therein at its own expense; provided, however, that if the
Indemnifying Party assumes control of such defense and the Indemnified Party
reasonably concludes, based on advice from counsel, that the Indemnifying Party
and the Indemnified Party have conflicting interests with respect to such Third
Party Claim, the reasonable fees and expenses of counsel to the Indemnified
Party solely in connection therewith shall be

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considered “Damages” for the purposes of this Agreement; provided,
further, however, that in no event shall the Indemnifying Party
be responsible for the fees and expenses of more than one counsel for all
Indemnified Parties.  The Party
controlling such defense shall keep the other Party advised of the status of
such Third Party Claim and the defense thereof and shall consider
recommendations made by the other Party with respect thereto.

(iii)          The Indemnified Party shall not agree to any
settlement of any Third Party Claim without the prior written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld or
delayed.  The Indemnifying Party shall
not agree to any settlement of any Third Party Claim that does not include a
complete and unconditional release of the Indemnified Party from all liability
with respect thereto or that admits to any liability on the part of, or imposes
any liability, injunction or obligation on, the Indemnified Party without the
prior written consent of the Indemnified Party (other than the payment of money
as to which the Indemnifying Party has acknowledged in writing its
indemnification obligation hereunder and has provided the Indemnified Party
with evidence reasonably satisfactory to the Indemnified Party of its ability
to pay) which consent shall not be unreasonably withheld or delayed.

(iv)          In the event that in connection with a product
liability Third Party Claim, it is shown by evidence acceptable in a court of
law having jurisdiction over the subject matter and meeting the appropriate
degree of proof for such Third Party Claim that the negligence or willful
misconduct of both Seller and Buyer contributed to the Damages resulting from
such Third Party Claim, Seller and Buyer will bear financial responsibility
with respect to that portion of the Damages shown to be attributable to its
respective negligence or willful misconduct.

(b)           Procedure for Other Claims. An Indemnified Party wishing to
assert a claim for indemnification under this Article V which is not subject to
Section 5.3(a) shall deliver to the Indemnifying Party a written notice (a “Claim
Notice”) which contains (i) a description and the amount (the “Claimed
Amount”) of any Damages incurred by the Indemnified Party, (ii) a statement
that the Indemnified Party is entitled to indemnification under this Article V
and a reasonable explanation of the basis therefor, and (iii) a demand for
payment in the amount of such Damages. Within thirty (30) days after delivery
of a Claim Notice, the Indemnifying Party shall deliver to the Indemnified
Party a written response in which the Indemnifying Party shall: (A) agree that
the Indemnified Party is entitled to receive all of the Claimed Amount (in
which case such response shall be accompanied by a payment by the Indemnifying
Party to the Indemnified Party of the Claimed Amount, by check or by wire
transfer), (B) agree that the Indemnified Party is entitled to receive part,
but not all, of the Claimed Amount (the “Agreed Amount”) (in

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which
case such response shall be accompanied by a payment by the Indemnifying Party
to the Indemnified Party of the Agreed Amount, by check or by wire transfer ),
or (C) contest that the Indemnified Party is entitled to receive any of the
Claimed Amount. If the Indemnifying Party in such response contests the payment
of all or part of the Claimed Amount, the Indemnifying Party and the
Indemnified Party shall use good faith efforts to resolve such dispute.

Section 5.4             Survival.

(a)           The representations and warranties of Seller and Buyer
set forth in this Agreement or any Ancillary Agreement shall survive the
Closing and the consummation of the transactions contemplated hereby and
continue until the date three (3)years after
the Closing Date, at which time they shall (except as set forth in Section 5.4
(b)) expire.  All covenants, agreements
and undertakings of the Parties contemplating performance after the Closing
Date shall survive the Closing Date in accordance with their terms, subject to
the expiration of the applicable statute of limitations for any claim relating
thereto.

(b)           No claim for indemnification may be made based on a
representation or warranty after the expiration thereof as provided in Section
5.4(a); provided, however, that if an indemnification claim under
Section 5.1(a) or Section 5.2(a) is properly asserted in writing pursuant to
Section 5.3 prior to the expiration as provided in Section 5.4(a) of the
representation or warranty that is the basis for such claim, then such
representation or warranty shall survive until, but only for the purpose of,
the resolution of such claim.

Section 5.5             Limitations.

(a)           Notwithstanding anything to the contrary contained in
this Agreement, the following limitations shall apply to indemnification claims
under this Agreement (with the exception of claims based upon fraud):

****************************************************.

(b)           In no event shall any Indemnifying Party be
responsible or liable for any Damages or other amounts under this Article V
that are consequential, in the nature of lost profits, diminution in the value
of property, special or punitive or otherwise not actual damages (except to the
extent same are owing pursuant to a Third Party Claim).  Each Party shall (and shall cause its
Affiliates to) use reasonable commercial efforts to pursue all legal rights and
remedies available in order to minimize the Damages for which indemnification
is provided to it under this Article V.

(c)           The amount of Damages recoverable by an Indemnified
Party under this Article V with respect to an indemnity claim shall be reduced
by (i) the amount of any payment received by such Indemnified Party (or an
Affiliate thereof), with respect to the

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Damages
to which such indemnity claim relates, from an insurance carrier, and (ii) the
amount of any Tax benefit realized by such Indemnified Party (or an Affiliate
thereof) which is attributable to the Damages to which such indemnity claim
relates. An Indemnified Party shall use reasonable commercial efforts to
pursue, and to cause its Affiliates to pursue, all Tax benefits to which it may
be entitled in connection with any Damages it incurs, and the Parties shall
cooperate with each other in pursuing insurance claims with respect to any
Damages or any indemnification obligations with respect to Damages. If an
Indemnified Party (or an Affiliate) receives any insurance payment in
connection with any claim for Damages for which it has already received an
indemnification payment from the Indemnifying Party, it shall pay to the
Indemnifying Party, within 30 days of receiving such insurance payment, an
amount equal to the excess of (A) the amount previously received by the
Indemnified Party under this Article V with respect to such claim plus the
amount of the insurance payments received, over (B) the amount of Damages with
respect to such claim which the Indemnified Party was or has become entitled to
receive under this Article V.

(d)           Except with respect to claims for fraud, or claims for
equitable relief (including specific performance) made with respect to breaches
of any covenant or agreement contained in this Agreement or the Ancillary
Agreements, the rights of the Indemnified Parties under this Article V shall be
the sole and exclusive remedies of the Indemnified Parties and their respective
Affiliates with respect to claims covered by Section 5.1 or Section 5.2 or
otherwise arising out of, resulting from or relating to this Agreement (including
any exhibits or schedules hereto), any Ancillary Agreement (including any
exhibits or schedules thereto) or any certificates or other instruments
delivered in connection with this Agreement or any Ancillary Agreement, or any
of the transactions contemplated hereby or thereby.  Without limiting the generality of the
foregoing, except with respect to claims based on fraud, in no event shall any
Party, its successors or permitted assigns be entitled to claim or seek rescission
of such transactions.

Section 5.6             Treatment of
Indemnification Payments.  

All indemnification payments made under this Agreement shall be treated
by the Parties as an adjustment to the Purchase Price to the maximum extent
allowable under applicable law.  For the
avoidance of doubt, proper adjustments shall be made to the Final Allocation.

ARTICLE VI

ADDITIONAL COVENANTS

Section 6.1             Access to
Information; Record Retention; Cooperation.

(a)           Access to Information. 
Subject to compliance with contractual obligations and applicable laws,
during the five (5)-year period following the Closing, after

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not less
than five (5) days’ prior written notice, each Party shall afford to the other
Party and to such Party’s authorized accountants, counsel, bank auditors and
other designated representatives during normal business hours in a manner so as
to not unreasonably interfere with the conduct of business (i) reasonable
access and duplicating rights to all non-privileged records, books, contracts,
instruments, documents, correspondence, computer data and other data and
information (collectively, “Information”) within the possession or
control of such Party to the extent such access may reasonably be required by
the Party seeking access solely in connection with matters relating to or
affected by Seller’s Product Operations, as to Seller, for periods prior to the
Closing Date, and as to Buyer, for periods on and after the Closing Date and
(ii) reasonable access to the personnel of such Party.  Requests may be made under this Section
6.1(a) for financial reporting and accounting matters, preparing financial
statements, preparing and filing of any Tax Returns, prosecuting any claims for
refund, defending any Tax claims or assessment, preparing securities law or
securities exchange filings, prosecuting, defending or settling any litigation
or insurance claim and performing obligations under this Agreement and the
Ancillary Agreements.

(b)           Seller Retained Rights and Access to the NDA, Etc. For
Seller Purposes.  After the Closing, Seller shall retain the
rights to utilize certain portions of the NDA and other data and information
relating specifically to Rel-EaseTM for researching, developing, manufacturing
or commercializing products (other than Plenaxis® Products) and/or drug formulation, discovery
and development technologies.  At any
time after the Closing, if Seller requires access to certain portions of the
NDA and/or other Information in Buyer’s possession or control pertaining to
Product Operations for legal or regulatory purposes, or for researching,
developing, manufacturing or commercializing products (other than Plenaxisâ Products) and/or drug formulation, discovery and
development technologies (collectively, the “Seller Purposes”), then
upon Seller’s written request, Buyer shall make such portions available to
Seller solely for such Seller Purposes on a temporary basis at a reasonable
time and at Buyer’s facilities.  Seller
may (at its expense) make and retain copies (in electronic and/or paper copy
format) of such portions of the NDA and/or other Information and use such
copies solely for Seller Purposes.  Any
such copies of the NDA and/or other Information shall be subject to the
confidentiality provisions of Section 6.1(f).

(c)           Access for Regulatory Purposes. 
If at any time after the Closing, (i) any Medical Product Regulatory
Authority, requires access to certain portions of the NDA and/or other
Information pertaining to Product Operations for legal or regulatory purposes
of the Party that does not own such items, or (ii) either Party requires access
to certain portions of the NDA and/or other Information pertaining to Product
Operations for legal or regulatory purposes of the Party that does not own such
items, including without limitation for making patent-related submissions,
then, in either of (i) or (ii), Seller or Buyer (as applicable), shall cooperate
with such Medical Product Regulatory Authority or the other Party and make such
portions available to the Medical Product Regulatory Authority

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and/or
the other Party solely for such purpose on a temporary basis at a reasonable
time and at Seller’s or Buyer’s facilities.

(d)           Attorney-Client Privilege. 
The Parties shall cooperate and work together in an effort to ensure
that the attorney-client privilege is preserved with respect to any documents
in the Information that are subject to such privilege (and any other documents,
information, or materials that are subject to such privilege and may be
transferred from or disclosed by one Party to the other under this
Agreement).  In addition, the Parties
acknowledge and agree that any discovery by or disclosure to Buyer of
documents, information, or materials that are not related to the Acquired
Assets is inadvertent.

(e)           Retention of Records. 
Except as may otherwise be required by law or agreed to in writing by
the Parties, each Party shall use reasonable commercial efforts to preserve,
until three (3) years after the Closing Date, all Information in its possession
or control pertaining to Product Operations.

(f)            Post-Closing Confidentiality.

(i)            From and after the Closing, each Party shall hold, and
shall cause its respective Affiliates, auditors, attorneys, financial advisors,
bankers and other consultants and advisors, to hold, in strict confidence all
Information concerning the other Party furnished to it by the other Party or
such other Party’s representatives pursuant to this Agreementor the Confidentiality Agreement except to the extent that
such Information:

(A)          is or becomes generally
available to the public other than as a result of any breach of the obligations
provided for by this Section 6.1(f);

(B)           such Party can
demonstrate that such Information was within the possession of the receiving
party prior to it initially being furnished to the receiving party by or on
behalf of the disclosing party; or

(C)           is or becomes available
on a non-confidential basis to the receiving party from a source other than the
disclosing party, provided, however, that the source of such
Information did not breach any obligation of confidentiality to the disclosing
party.

(ii)           Each Party shall not release or disclose such
Information to any other Person, except its auditors, attorneys, financial
advisors, bankers and other consultants and advisors, unless compelled to
disclose such Information by judicial or administrative process or by
applicable Laws or so as not to violate the rules of any stock exchange, law,
order, or regulation of a Governmental Authority; provided, however,
that in the case of disclosure compelled by judicial or administrative process,
the receiving party shall (to the extent permitted by applicable law) notify

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the disclosing party promptly of the request and the
documents requested thereby so that the disclosing party may seek an
appropriate protective order or other appropriate remedy; and provided, further,
however, that the receiving party shall use reasonable efforts to avoid
and/or minimize such disclosure.

Section 6.2             Collection of
Accounts Receivable.

Buyer agrees that
it shall forward promptly to Seller any monies, checks or instruments received
by Buyer after the Closing with respect to any accounts receivable included as
an Excluded Asset pursuant to this Agreement.

Section 6.3             Restrictive
Covenants.

(a)           Seller will not, and will cause its controlled
Affiliates not to, directly or indirectly, research, develop, manufacture,
distribute, market or sell (i) ****************, (ii)
**********************.

(b)           Until thefirst
anniversary of the Closing Date, neither Party will, and will cause their
respective controlled Affiliates not to, solicit or hire employees of the other
Party without the other Party’s prior written consent.  Notwithstanding the foregoing, neither Party
is prevented from employing, or attempting to employ, any employee of the other
Party who approaches such Party on an unsolicited basis concerning employment
or who responds to a solicitation or advertisement for employment that is made
to the general public.

(c)           Seller, on behalf of itself and its controlled
Affiliates, acknowledges that in view of the nature of the Product Operations
and the objectives of the Parties in entering into the Agreement, the
restrictions contained in this Section 6.3 are reasonable and necessary to
protect the legitimate business interests of the Parties after the Closing, and
that any breach or threatened breach of the provisions of this Section 6.3 will
cause irreparable injury to Buyer or Seller, as applicable, for which an
adequate monetary remedy does not exist. Accordingly, in the event of any such
breach or threatened breach of this Section 6.3, Buyer shall be entitled, in
addition to the exercise of other remedies, to seek and obtain injunctive
relief, without the necessity of posting a bond, restraining Seller or Buyer,
as applicable, or such Affiliate from committing such breach or threatened
breach.

(d)           Except as provided in any Third-Party Consent executed
by Seller, Buyer shall not amend or otherwise modify any Assigned Contract
to increase the liabilities or obligations of Seller thereunder without the
express prior written consent of Seller, which consent may be withheld in
Seller’s sole discretion.

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Section 6.4             Complaints;
Recalls.

Buyer and Seller shall each inform the other Party in accordance with
this Section 6.4 of Plenaxisâ Product complaints, including product returns,
which relate to Plenaxisâ Product for which the other Party bears
financial or regulatory responsibility. Buyer shall notify Seller within three
(3) Business Days of becoming aware of a complaint involving Plenaxisâ Product sold by Seller.  Seller shall notify Buyer within three (3)
Business Days of becoming aware of a complaint involving Plenaxisâ Product
sold by Buyer. All communications relating to the performance or condition of
the Plenaxisâ Product, and all communications relating to
adverse experiences in association with, but not necessarily due to, the
Plenaxisâ Product that are received by any means at
Seller shall be forwarded to Buyer until Seller-labeled Plenaxisâ Product
can reasonably be expected to no longer be available in the market place.  Each Party shall timely cooperate, as
requested by the other, in investigating complaints and completing complaint
investigations, including providing information applicable to each
complaint.  In the event of any recall of
or field notification with respect to the Plenaxisâ Product following the Closing, Seller shall
make available such records and other information, and provide such efforts as
are necessary and appropriate in connection with such recall as required by
applicable Laws and in accordance with any agreements reached between Buyer and
the applicable Medical Product Regulatory Authority, in connection with any
recall of the Plenaxisâ Product.

Section 6.5             Post-Closing
Matters.

Within one hundred
twenty (120) days after the Closing Date, Seller shall deliver to Buyer, or
otherwise put Buyer in possession or control of, all of the Acquired Assets of
a tangible nature, including documents and data in electronic formats to the
extent that such documents and data are in electronic formats.

Section 6.6             Tax Matters.

Buyer shall not
make any election with respect to PRAECIS Europe pursuant to Section 338 of the
Code, or any comparable provision under any Law, without the prior written
consent of Seller, which consent shall not be unreasonably withheld.

ARTICLE VII

MISCELLANEOUS

Section 7.1             Press Releases and
Announcements.

No Party shall issue any press release or public announcement relating
to the subject matter of this Agreement without the prior written approval of
the other Party, which approval will not be unreasonably withheld or delayed; provided,
however, that either Party may make any public disclosure it believes in
good faith is required by applicable law, regulation or securities exchange or
stock market rule (in which case the

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disclosing party shall use reasonable efforts to
advise the other Party and provide it with a copy of the proposed disclosure
prior to making the disclosure for the first time that specific information is
to be disclosed, but shall not be required to do so for any subsequent disclosure
of substantially similar information that has previously been disclosed).

Section 7.2             No Third Party
Beneficiaries.

This Agreement shall inure to the benefit of the Parties and their
respective successors and permitted assigns and, with respect to Article V, the
Buyer Indemnitees and the Seller Indemnitees. 
Nothing contained in this Agreement, express or implied, is intended to
or shall confer upon any Person other than the Parties and, with respect to
Article V, the Buyer Indemnitees and the Seller Indemnitees any right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.

Section 7.3             Entire Agreement.

This Agreement (including the documents referred to and incorporated by
reference herein), the Ancillary Agreements and the Confidentiality Agreement
constitute the entire agreement between Buyer and Seller with respect to the
subject matter hereof and supersede any prior agreements or understandings
between Buyer and Seller and any representations or statements made by or on behalf
of Seller or any of its respective Affiliates to Buyer, whether written or
oral, with respect to the subject matter hereof, other than the Confidentiality
Agreement.

Section 7.4             Succession and
Assignment.

This Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors and permitted assigns.  Neither Party may assign any of its rights or
delegate any of its performance obligations hereunder without the prior written
approval of the other Party; provided, however, that either Party
shall have the right to assign this Agreement or any of its rights hereunder
without such approval at any time to any Affiliate of such Party or to any
Person to whom all or substantially all of such Party’s assets are transferred
or in connection with a merger, consolidation or other similar corporate
transaction involving such Party, but only if, in the case of such a transfer
of assets, such Affiliate or Person assumes this Agreement in writing and
agrees to be bound by and to comply with the terms and conditions hereof
applicable to such assigning Party; provided, further, however,
(and for the avoidance of doubt) that, unless the assigning Party is expressly
released by the other Party, no such assignment shall release the assigning
Party from its obligations hereunder. 
Any purported assignment of rights or delegation of performance
obligations in violation of this Section 7.4 is void.

Section 7.5             Notices.

All notices, requests, demands, claims and other communications
hereunder shall be in writing.  Any
notice, request, demand, claim or other communication

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THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 

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hereunder shall be deemed duly given, made and
received (i) when delivered personally or by facsimile, (ii) four (4) Business
Days after it is sent by registered or certified mail, return receipt
requested, postage prepaid or (iii) one (1) Business Day after it is sent for
next Business Day delivery via a reputable nationwide overnight courier
service, in each case to the intended recipient as set forth below:

If to Buyer:

Speciality European Pharma Limited

25 Buckingham Gate

London SW1E 6LD

Attention: Geoff McMillan

Phone: +44 207 7932 2105

Facsimile: +44 (0) 20 7828 1474

Copy to:

Morrison & Foerster LLP

CityPoint

One Ropemaker Street

London    EC2Y
9AW

Attention:              James Gubbins

Phone:    +44(0) 207 920 4000

Facsimile:               +44(0) 207 496 8500

If to Seller:

PRAECIS PHARMACEUTICALS INCORPORATED

830 Winter Street

Waltham, MA 02451-1420

Attention: President

Phone: (781) 795-4320

Facsimile: (781) 890-7471

Copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

One Beacon Street

Boston, MA 02108

Attention: Kent A. Coit, Esq.

Phone: (617) 573-4835

Facsimile: (617) 305-4835

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 

 39

Any Party may give any notice, request, demand, claim,
or other communication hereunder using any other means (including personal
delivery, expedited courier, messenger service, facsimile, ordinary mail, or
electronic mail), but no such notice, request, demand, claim or other
communication shall be deemed to have been duly given unless and until it
actually is received by the Party for whom it is intended.  Any Party may change the address to which
notices, requests, demands, claims and other communications hereunder are to be
delivered by giving the other Party notice in the manner herein set forth.

Section 7.6             Amendments and Waivers.

The Parties may mutually amend or waive any provision of this Agreement
at any time. No amendment or waiver of any provision of this Agreement shall be
valid unless the same shall be in writing and signed, in the case of an
amendment, by the Parties, or in the case of a waiver, by the Party against
whom the waiver is to be effective.  No waiver
by any Party of any default, misrepresentation, or breach of warranty or
covenant hereunder, whether intentional or not, shall be deemed to extend to
any prior or subsequent default, misrepresentation or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

Section 7.7             Severability.

Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, Buyer and Seller agree that the body making the determination of
invalidity or unenforceability shall have the power to reduce the scope,
duration or area of the term or provision, to delete specific words or phrases,
or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision, and this
Agreement shall be enforceable as so modified.

Section 7.8             Expenses.

Except as otherwise specifically provided to the contrary in this
Agreement, each of Buyer and Seller shall bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby.

Section 7.9             Governing Law.

This Agreement and any disputes hereunder shall be governed by and
construed in accordance with the internal laws of the Commonwealth of
Massachusetts without giving effect to any choice or conflict of law provision
or rule (whether of the

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 

 40
 

Commonwealth of Massachusetts or any other
jurisdiction) that would cause the application of laws of any jurisdiction
other than those of the Commonwealth of Massachusetts.

Section 7.10           Submission to Jurisdiction.

Each of Buyer and Seller consents and (a) submits to the exclusive
jurisdiction of any state or federal court sitting in the Commonwealth of
Massachusetts, (b) agrees that all claims in respect of any action or
proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement may be heard and determined only in any such court, (c)
waives any claim of inconvenient forum or other challenge to venue in such
court, and (d) agrees not to bring any action or proceeding arising out of or
relating to this Agreement in any other court. 
Each of Buyer and Seller may make service on the other Party, and each
of Buyer and Seller agrees to accept service, of any summons, complaint or
other initial pleading made in the manner provided for the giving of notices in
Section 7.5.  Nothing in this Section
7.10, however, shall affect the right of any Party to serve such summons,
complaint or initial pleading in any other manner permitted by law.

Section 7.11           Construction.

(a)           The
language used in this Agreement shall be deemed to be the language chosen by
the parties hereto to express their intent, and no rule of strict construction
shall be applied against any Party.

(b)           Any
reference to any federal, state, local, or foreign statute or law shall be
deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise.

(c)           The
section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

(d)           Any
reference herein to an Article, Section, clause, Exhibit or Schedule shall be
deemed to refer to an Article, Section, clause, Exhibit or Schedule of this
Agreement, unless the context clearly indicates otherwise.

(e)           All
references to “$” or “Dollars” refer to currency of the United States of
America.

(f)            Whenever
the words “include”, “includes” or “including” are used in this Agreement, they
shall be deemed followed by the words “without limitation.”

CONFIDENTIAL
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THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
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 41
 

Section 7.12           WAIVER OF JURY TRIAL.

TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF BUYER AND SELLER HEREBY IRREVOCABLY WAIVES ALL RIGHTS
TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY HERETO IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

Section 7.13           Exhibits and Schedules.

The Exhibits and Schedules identified in this Agreement are
incorporated herein by reference and made a part hereof.

Section 7.14           Counterparts and Facsimile
Signature.

This Agreement may be executed in counterparts, each of which shall be
deemed an original but which together shall constitute one and the same
instrument. This Agreement may be executed by facsimile signature.

Section 7.15           Transfer and Sales Tax.

(a)           Notwithstanding
any provisions of law imposing the burden of such Taxes on Seller or Buyer, as
the case may be, Buyer shall pay (i) all sales, use and transfer Taxes, and
(ii) all similar governmental charges, if any, upon the sale or transfer of any
of the Acquired Assets hereunder, provided, however, that if
Seller is required by Law to make any such payments or Buyer fails to make such
payments on a timely basis, Seller may pay such amounts to the appropriate
Governmental Authority or Authorities, and Buyer shall promptly reimburse
Seller for any amounts so paid by Seller. 
Seller and Buyer shall cooperate with each other and use their
reasonable commercial efforts to minimize such taxes and charges and each Party
agrees to timely sign and deliver to the other Party such certificates or forms
as may be necessary or appropriate to establish an exemption from (or otherwise
reduce), or file Tax Returns with respect to, such Taxes and to use reasonable
commercial efforts to obtain any certificate or document from any Governmental
Authority as may be necessary to mitigate such Taxes.

(b)           Liability
for other Taxes. Seller shall be liable for all Taxes with respect to
Seller’s Product Operations or Acquired Assets (i) for any taxable year or
period that ends on or before the Closing Date and (ii) with respect to any
taxable year or period beginning before and ending after the Closing Date, for
the portion of such taxable year or period ending on and including the Closing
Date. Except as specifically set forth in Section 7.15 (a), Buyer shall be
liable for (i) all Taxes with respect to the Product Operations or the Acquired
Assets with respect to any taxable year or period beginning after the Closing
Date, and (ii) with respect to any taxable year or period beginning before and
ending after

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 42
 

the
Closing Date, for the portion of such taxable year or period beginning after
the Closing Date.

Section 7.16           Bulk Transfer Laws. 

The Parties waive compliance with the requirements of any applicable “bulk
sales” laws in connection with the consummation of the transactions
contemplated hereby.

[Signature Page
Follows]

CONFIDENTIAL
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WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 43

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

	
  

  	
  PRAECIS PHARMACEUTICALS 

  
	
   

  	
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Kevin F. McLaughlin

  
	
   

  	
  Name: 

  	
  Kevin F. McLaughlin

  
	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPECIALITY EUROPEAN PHARMA

  
	
   

  	
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/ Geoff McMillan

  
	
   

  	
  Name:

  	
    Geoff McMillan

  
	
   

  	
  Title:

  	
    C.E.O.

  
						

 

[Asset Purchase Agreement Signature Page]

EXHIBIT A

REL-EASETM LICENSE
AGREEMENT

This REL-EASETM LICENSE AGREEMENT (the “Agreement”) is made as of
the       day of January, 2007, by and between PRAECIS
PHARMACEUTICALS INCORPORATED, a Delaware corporation (“Praecis”) and SPECIALITY
EUROPEAN PHARMA LIMITED, a company organized under the laws of England and
Wales (“Speciality”).  Praecis and
Speciality are referred to collectively herein as the “Parties” and each
individually as a “Party.”

W I T N E
S S E T H:

WHEREAS, Praecis and Speciality have entered into an Asset Purchase
Agreement dated as of January      , 2007 (the “Purchase
Agreement”) pursuant to which Praecis has agreed to sell and Speciality has
agreed to purchase, on the terms and conditions set forth in the Purchase
Agreement, the Acquired Assets. Words not specifically defined in this
Agreement shall have the same meaning ascribed in the Purchase Agreement,
unless the context requires otherwise; and

WHEREAS, as provided in the Purchase Agreement, and subject to the
terms and conditions set forth in this Agreement, Speciality desires to license
from Praecis, and Praecis desires to license to Speciality, the Seller Rel-EaseTM
Patents, solely for use in the Product Operations;

NOW, THEREFORE, in consideration of the premises, covenants,
representations and warranties contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, agree as follows:

1.             Grant
of License.

1.1           Subject to the terms of
this Agreement, Praecis grants Speciality and its controlled Affiliates
************************.

1.2           THE LICENSE GRANTED
PURSUANT TO SECTION 1.1 OF THIS AGREEMENT IS MADE WITHOUT ANY WARRANTIES,
EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, REGARDING REL-EASETM (AS THAT TERM
IS DEFINED IN THE PURCHASE AGREEMENT) OR THE SELLER REL-EASETM PATENTS, THE
FITNESS OF REL-EASETM OR THE SELLER REL-EASETM PATENTS FOR ANY PURPOSE, OR THE
QUALITY OR MERCHANTABILITY OF REL-EASETM OR THE SELLER REL-EASETM PATENTS, AND PRAECIS
DISCLAIMS ANY AND ALL LIABILITY WITH RESPECT TO SPECIALITY’S USE OF REL-EASETM.

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

1.3           Speciality shall have
the right to grant sublicenses to the rights granted under Section 1.1 of this
Agreement.  In the event that Speciality
grants such a sublicense, Speciality shall notify Praecis of the identity of
each such sublicensee (each, a “Sublicensee”) without unreasonable delay
following any such grant of sublicense. 
Speciality shall remain fully responsible for the compliance by each
Sublicensee with the terms and conditions of this Agreement as if such
sublicensees were parties hereto.

1.4           In connection with its
exploitation of the license granted by Section 1.1 of this Agreement,
Speciality shall comply with, and shall cause its Sublicensees to comply with,
all applicable present and future Laws, including, without limitation, the
United States Food, Drug, and Cosmetic Act, as amended, and regulations
promulgated thereunder.

1.5           Nothing herein shall
give Speciality or its Sublicensees any right, title, or interest in Rel-EaseTM
or the Seller Rel-EaseTM Patents other than the license granted by Section 1.1
of this Agreement.

2.             Acknowledgements
Concerning 

Rel-EaseTM and the Seller Rel-EaseTM Patents.

2.1           Speciality acknowledges
that, and shall cause its Sublicensees to acknowledge that (i) the Seller
Rel-EaseTM Patents are valid and enforceable, (ii) Praecis owns all right,
title, and interest in Rel-EaseTM and the Seller Rel-EaseTM Patents, and (iii)
subject to the terms of this Agreement, Praecis has the right, in Praecis’s sole
discretion, to use Rel-EaseTM and to license the Seller Rel-EaseTM Patents in any
way(s) that it sees fit.

2.2           Speciality shall not,
and shall cause its Sublicensees to not, either during or after the Term, (i)
apply for patent protection on Rel-EaseTM, or (ii) otherwise seek to register
any intellectual property related to Rel-EaseTM anywhere in the world. If
Speciality challenges the validity of the Seller Rel-EaseTM Patents, Praecis
shall have the right to terminate this Agreement in accordance with Section
7.2.

3.             Maintenance,
Prosecution on and Enforcement of the Seller Rel-EaseTM Patents

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 2
 

3.1           Praecis undertake to
carry out, at its own cost and expense, the filing, prosecution, maintenance
and/or defense of the Seller Rel-EaseTM Patents using reasonable efforts to
prosecute all patent applications forming part of the Seller Rel-EaseTM Patents
to grant (including but not limited to any interference, reissue or re-examination
or opposition or revocation proceedings). 
Praecis shall keep Speciality informed of all material developments in
relation to Seller Rel-EaseTM Patents and shall, upon Speciality’s request,
provide copies of relevant documents related to the filing, prosecution and
maintenance of the Seller Rel-EaseTM Patents.

3.2           In the event that
Praecis declines to file or, having filed, declines to further prosecute,
maintain and/or defend any Seller Rel-EaseTM Patent, Praecis shall provide
Speciality with written notice thereof. 
In the case where Praecis has filed but is declining to further
prosecute or maintain any Seller Rel-EaseTM Patents, such notice shall be given
at least thirty (30) days prior to the expiration of any official substantive
deadline relating to such activities.  In
any of such circumstances Speciality shall have the right but not the
obligation to decide that Speciality should file, continue to file or prosecute
such Seller Rel-EaseTM Patents and in such case Speciality shall give written
notice to Praecis.  Praecis shall upon
receipt of any such notice from Speciality transfer to Speciality all its files
relating to such Seller Rel-EaseTM Patents and execute any documents necessary
to transfer control of such filing, prosecution and maintenance to Speciality
and, where Praecis declines to file or, having filed, declines to further
prosecute, maintain and/or defend any Seller Rel-EaseTM Patent in the USA,
Europe or Japan, Praecis shall assign such Seller Rel-EaseTM Patents and any
license granted thereunder to Speciality.

3.3           Where a third party is
making, using or selling a product that competes with Abarelix Product as an
infringement of a Seller Rel-EaseTM Patent in the Product Operations in one or
more countries Speciality shall have the right to, but shall not be obliged to,
at its own cost and expense, enforce the same in accordance with the following:

3.3.1        Speciality
shall have sole conduct of the claim and any such infringement proceedings and,
any associated a counterclaim for invalidity or unenforceability or a
declaratory judgment action, including the right to agree a settlement with the
third party provided always that Speciality shall abide by Praecis’
instructions in relation to any such counterclaim or declaratory judgment
action and shall not settle the same without Praecis’ consent. In such case
Praecis shall provide all necessary assistance to Speciality in relation to any
such proceeding;

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 3
 

3.3.2        if
Speciality succeeds in any such infringement proceedings whether at trial or by
way of settlement, Speciality shall be entitled to retain any award of costs and
damages made in such proceedings or settlement sum.

4.             Audit.  Praecis shall have the right at its sole cost
and expense, upon at least ten (10) days written notice to Speciality and no
more than twice per calendar year, to appoint a independent third party advisor
who meets the prior approval of Speciality (such approval not to be
unreasonably withheld or delayed) to inspect Speciality’s applicable (i) books;
(ii) records; and (iii) other documents and materials in the possession of or
under the control of Speciality or its Sublicensees to prepare a report to
Praecis to verify Speciality and its Sublicensees’ compliance with Sections 1.1
and 1.4 of this Agreement, at the place or places where such records are
normally retained by Speciality and/or its Sublicensees.

5.             Patent Marking.  Speciality agrees to comply with the patent
marking statutes in each country in which Rel-EaseTM is used by Speciality
and/or its Sublicensees.

6.             Term.  This Agreement shall be effective as of
January     , 2007, and shall remain in effect until the
expiration of the last Seller Rel-EaseTM Patent, unless earlier terminated
pursuant to Section 7 of this Agreement (the “Term”).  

7.             Termination.

7.1           Speciality may
terminate this Agreement at any time by giving Praecis written notice of not
less than ten (10) days.

7.2           Praecis may terminate
this Agreement upon thirty (30) days written notice to Speciality in the event
of a material breach by Speciality of Section 1.1 of this Agreement or the
failure by Speciality to pay when due and payable any amount (including any
indemnification payment) payable to Praecis pursuant to the terms of the
Purchase Agreement unless such material breach is cured within such thirty (30)
day notice period, save that if Speciality in good faith disputes such alleged
material breach or disputes the alleged failure to cure or remedy such material
breach and provides written notice of that dispute to Praecis within such
thirty (30) day notice period, then the matter will be addressed under the
dispute resolution provisions in Section 16, and Praecis may not terminate this
Agreement until it has been determined under Section 16 that Speciality is in
material breach of this Agreement, and further fails to cure such breach within
thirty (30) days after the conclusion of that dispute resolution procedure.

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 4
 

Praecis may
terminate this Agreement upon ten (10) days written notice if Speciality
challenges the validity of the Seller Rel-EaseTM Patents as provided in Section
2.2.

7.3           Upon termination of
this Agreement for any reason (including its expiration):  (i) the license granted to Speciality under
Section 1.1 of this Agreement, and the right to grant sublicenses under Section
1.3 shall immediately terminate, (ii) nothing in this Agreement shall relieve
or release either Party from any obligations that matured prior to the
effective date of expiration or termination, or from liability for breach of
this Agreement or the Purchase Agreement, and (iii) this Section 7.3 as well as
the following provisions shall expressly survive any such termination:  Section 2 and Sections 8-20.

8.             No Third Party
Beneficiaries.  This Agreement shall
inure to the benefit of the Parties and their respective successors and
permitted assigns.  Nothing contained in
this Agreement, express or implied, is intended to or shall confer upon any
Person other than the Parties any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

9.             Entire Agreement.  This Agreement, together with the other
Ancillary Agreements, the Purchase Agreement and the Confidentiality Agreement,
constitute the entire agreement between Speciality and Praecis with respect to
the subject matter hereof and thereof, and supersede all prior agreements and
understandings, both written and oral, between Speciality and Praecis with
respect to the subject matter hereof and thereof, other than the
Confidentiality Agreement.

10.           Succession and
Assignment.  This Agreement shall be
binding upon and inure to the benefit of the Parties and their respective
successors and permitted assigns. 
Neither Party may assign any of its rights or delegate any of its
performance obligations hereunder without the prior written approval of the
other Party; provided, however, that either Party shall have the right to
assign this Agreement or any of its rights hereunder without such approval at
any time to any Affiliate of such Party or to any Person to whom all or substantially
all of such Party’s assets are transferred or in connection with a merger,
consolidation or other similar corporate transaction involving such Party, but
only if, in the case of such a transfer of assets, such Affiliate or Person
assumes this Agreement in writing and agrees to be bound by and to comply with
the terms and conditions hereof applicable to such assigning Party; provided,
further, however, (and for the avoidance of doubt) that, unless the assigning
Party is expressly released by the other Party, no such assignment shall
release the assigning Party from its obligations hereunder.  Any purported assignment of rights or
delegation of performance obligations in violation of this Section 9 is void.

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 5
 

11.           Notices.  All notices, requests, demands, claims and
other communications hereunder shall be in writing.  Any notice, request, demand, claim or other
communication hereunder shall be deemed duly delivered four (4) Business Days
after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one (1) Business Day after it is sent for next Business Day
delivery via a reputable nationwide overnight courier service, in each case to
the intended recipient as set forth below:

If to Speciality:

Speciality European Pharma Limited

25 Buckingham Gate

London SW1E 6LD

Attention: 
Geoff McMillan

Phone: +44 207 7932 2105

Facsimile: +44 (0) 20 7828
1474

If to Praecis:

PRAECIS PHARMACEUTICALS
INCORPORATED

830 Winter Street

Waltham, MA 02451-1420

Attention: Edward C. English

Phone: (781) 795-4320

Facsimile: (781) 890-7471

E-mail:
ted.english@praecis.com

Copy
to:

Skadden, Arps,
Slate, Meagher & Flom LLP

One Beacon Street

Boston, MA 02108

Attention: Kent A.
Coit, Esq.

Phone: (617)
573-4835

Facsimile: (617)
305-4835

E-mail:  kcoit@skadden.com

Any Party may give any notice, request, demand, claim,
or other communication hereunder using any other means (including personal
delivery, expedited courier, messenger service, facsimile, ordinary mail, or
electronic mail), but no such notice, request, demand, claim or other
communication shall be deemed to have been duly given unless and until it
actually is received by the Party for whom it is intended.  Any Party may change the address to which
notices, requests, demands, claims and other

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 6
 

communications hereunder are to be delivered by giving
the other Party notice in the manner herein set forth.

12.           Amendments and
Waivers.  The Parties may mutually
amend or waive any provision of this Agreement at any time. No amendment or
waiver of any provision of this Agreement shall be valid unless the same shall
be in writing and signed, in the case of an amendment, by the Parties, or in
the case of a waiver, by the Party against whom the waiver is to be
effective.  No waiver by any Party of any
default or breach hereunder, whether intentional or not, shall be deemed to
extend to any prior or subsequent default or breach hereunder or affect in any
way any rights arising by virtue of any prior or subsequent such occurrence.

13.           Severability.  Any term or provision of this Agreement that
is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction. If the final judgment of a
court of competent jurisdiction declares that any term or provision hereof is
invalid or unenforceable, the Speciality and Praecis agree that the body making
the determination of invalidity or unenforceability shall have the power to
reduce the scope, duration or area of the term or provision, to delete specific
words or phrases, or to replace any invalid or unenforceable term or provision
with a term or provision that is valid and enforceable and that comes closest
to expressing the intention of the invalid or unenforceable term or provision,
and this Agreement shall be enforceable as so modified. 

14.           Expenses.  Each of Speciality and Praecis shall bear its
own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby.

15.           Governing Law.  This Agreement and any disputes hereunder
shall be governed by and construed in accordance with the internal laws of the
Commonwealth of Massachusetts without giving effect to any choice or conflict
of law provision or rule (whether of the Commonwealth of Massachusetts or any
other jurisdiction) that would cause the application of laws of any
jurisdiction other than those of the Commonwealth of Massachusetts.

16.           Submission to
Jurisdiction.  Each of Speciality and
Praecis consents and (a) submits to the exclusive jurisdiction of any state or
federal court sitting in the Commonwealth of Massachusetts, (b) agrees that all
claims in respect of any action or

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INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 7
 

proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement
may be heard and determined only in any such court, (c) waives any claim of
inconvenient forum or other challenge to venue in such court, and (d) agrees
not to bring any action or proceeding arising out of or relating to this
Agreement in any other court.  Each of
Speciality and Praecis may make service on the other Party, and each of
Speciality and Praecis agrees to accept service, of any summons, complaint or
other initial pleading made in the manner provided for the giving of notices in
Section 7.5 of the Purchase Agreement. 
Nothing in this Section 15, however, shall affect the right of any Party
to serve such summons, complaint or initial pleading in any other manner
permitted by law.

17.           Construction.

17.1         The language used in this
Agreement shall be deemed to be the language chosen by the parties hereto to
express their intent, and no rule of strict construction shall be applied
against any Party.

17.2         Any reference to any
federal, state, local, or foreign statute or law shall be deemed also to refer
to all rules and regulations promulgated thereunder, unless the context
requires otherwise.

17.3         The section headings
contained in this Agreement are inserted for convenience only and shall not
affect in any way the meaning or interpretation of this Agreement.

17.4         Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed
followed by the words “without limitation.”

18.           WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY APPLICABLE LAW,
EACH OF SPECIALITY AND PRAECIS HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY HERETO IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT. 

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 8
 

19.           Relationship of the
Parties.  Nothing contained in this
Agreement shall be construed as creating a partnership, joint venture or any
other type of fiduciary relationship between Praecis and Speciality.  Neither Party shall have the authority or
represent itself as having the authority to bind or obligate the other Party in
any manner whatsoever.  

20.           Definitions.  All capitalized terms used herein and not
defined herein shall have the respective meanings given to them in the Purchase
Agreement.  

21.           Counterparts and
Facsimile Signature.  This Agreement
may be executed in counterparts, each of which shall be deemed an original but
which together shall constitute one and the same instrument. This Agreement may
be executed by facsimile signature.

[Signature Page
Follows]

CONFIDENTIAL
INFORMATION OMITTED AND FILED SEPARATELY

WITH
THE SECURITIES AND EXCHANGE COMMISSION.

ASTERISKS
(*) DENOTE SUCH OMISSIONS.  

 9

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

	
  

  	
  PRAECIS PHARMACEUTICALS 

  
	
   

  	
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPECIALITY EUROPEAN PHARMA 

  
	
   

  	
  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

[Rel-EaseTM License
Signature Page]

Schedule
1.1(d)

Minimum
Annual Commitment Payments

(In $U.S.
Millions)

	
  Contract

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  Total

  	
   

  
	
  Lonza Agreement

  	
   

  	
  $

  	
  0.6

  	
   

  	
  $

  	
  0.8

  	
   

  	
  $

  	
  1.0

  	
   

  	
  $

  	
  1.0

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3.4

  	
   

  
	
  Cambrex Agreement

  	
   

  	
  0.9

  	
   

  	
  0.9

  	
   

  	
  0.9

  	
   

  	
  0.9

  	
   

  	
  0.9

  	
   

  	
  4.5

  	
   

  
	
  Baxter Agreement*

  	
   

  	
  0.65

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  0.65

  	
   

  
	
  Total

  	
   

  	
  $

  	
  2.15

  	
   

  	
  $

  	
  1.7

  	
   

  	
  $

  	
  1.9

  	
   

  	
  $

  	
  1.9

  	
   

  	
  $

  	
  0.9

  	
   

  	
  $

  	
  8.55

  	
   

  

 

*  the Commercial Supply Agreement dated
December 4, 2002 and effective as of June 1, 2002 by and among Baxter
Pharmaceutical Solutions LLC (“Baxter”), Baxter Healthcare Corporation
and PRAECIS PHARMACEUTICALS INCORPORATED (“Baxter Agreement”), including
the Quality Agreement dated as of September 13, 2004 by and between Baxter and
PRAECIS PHARMACEUTICALS INCORPORATED which is incorporated within and
constitutes a part of the Baxter Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]