Document:

exv10w30

Form of Performance Share Award Granted to the

Company’s Chairman of the Board and Executive Officers

AMENDED AND RESTATED PERFORMANCE SHARE AWARD AGREEMENT

UNDER THE CARE INVESTMENT TRUST INC. EQUITY PLAN

	 	 	 
	Name of Grantee:

	 	[•]
	 
	 	 
	Target Award:

	 	[•] Performance Shares (the “Target Award”)
	 
	 	 
	Performance Award Period:

	 	From the Grant Date to and including December
31, 2010, subject to earlier completion in the
event of a Liquidity Event (as defined herein)
prior to December 31, 2010 (the “Award Period”)
	 
	 	 
	Grant Date:

	 	December 10, 2009 (the “Grant Date”)

     This Amended and Restated Performance Share Award Agreement (the “Agreement”), dated as of
February 23, 2010, is between Care Investment Trust Inc., a Maryland corporation (the “Company”),
and you, the Grantee named above, as an employee of CIT Healthcare LLC, the manager of the Company
pursuant to a management agreement (the “Manager”), and amends and restates the original terms of
the Agreement dated as of December 10, 2009.

     The Company wishes to award to you performance shares (“Performance Shares”) on the terms and
conditions set forth in this Agreement and in the Care Investment Trust Inc. Equity Plan (the
“Plan”). Capitalized terms that are used in this Agreement and that are not defined herein shall
have the meanings set forth in the Plan.

     Accordingly, for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company and you hereby agree as follows:

     1. Award of Performance Shares.

     The Company hereby awards to you, effective as of the Grant Date, the Performance Shares,
which represent the opportunity to receive shares of the Company’s Common Stock, par value $0.001
per share (the “Common Stock”). The purpose of this Agreement is to incentivize you to identify,
negotiate and lead to completion one or more transactions (each as approved by the Company’s Board
of Directors (the “Board”)) that results in a Liquidity Event (as defined in Section 1(a) below)
for the Company’s stockholders during the Award Period. The number of shares of Common Stock
issuable, if any, under Section 3 below as of the end of the Award Period will be calculated under
Section 2 below based upon the aggregate Net Proceeds (as defined in Section 1(d) below) received
by the stockholders (or, as discussed below, to be received by the stockholders at the closing of
any applicable transaction) during the Award Period.

     (a) A “Liquidity Event” shall mean the first to occur of either: (i) the consummation of a
merger or other business combination transaction that results in the disposition of all of the
issued and outstanding equity securities of the Company in exchange for cash, Freely-Tradable
Public Securities or both, (ii) the consummation of a tender offer made directly to the Company’s

 

 

stockholders either by the Company or by a third party for at least a majority of the Company’s
issued and outstanding Common Stock, or (iii) the declaration of aggregate Distributions (as
defined in Section 1(b) below) by the Company’s Board equal to or exceeding $8.00 per share. If
the Company makes Distributions during the Award Period that do not equal or exceed $8.00 per share
in the aggregate, the Performance Shares shall settle at the end of the Award Period pursuant to
Sections 2 and 3 below (absent the occurrence of a separate Liquidity Event described in (i) or
(ii) above). To the extent that multiple events are jointly approved by the Board as a combination
or series of related events and/or transactions, such events and/or transactions shall collectively
be deemed to constitute a single “Liquidity Event.”

     (b) “Distributions” shall mean any cash distributions declared (including those declared but
not yet paid) in respect of the Company’s Common Stock for any reason during the Award Period,
including, but not limited to, regular or quarterly distributions, special distributions and
liquidating distributions.

     (c) “Freely-Tradable Public Securities” shall mean securities that are (i) of a class that is
registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and are either listed and qualified for trading on the New York Stock Exchange or the NASDAQ
National Market, (ii) issued in a transaction that was registered under the Securities Act of 1933,
as amended (the “Securities Act”), and, in the case of “affiliates” (as such term is defined in the
Securities Act), are subject to a resale registration statement under the Securities Act, (iii) not
subject to any restrictions on transfer (including, but not limited, to any holding requirements)
and (iv) issued by a company that is then current in its reporting obligations under the Exchange
Act.

     (d) “Net Proceeds” means the aggregate amount of Distributions and/or the amount of cash
consideration and the fair market value of any Freely-Tradable Public Securities received by the
Company’s stockholders in connection with a Liquidity Event. The fair market value of any
Freely-Tradable Public Securities received as consideration in a Liquidity Event shall be
determined by the Board in good faith. “Net Proceeds” shall not include (i) any amounts of
consideration to be paid to the Company or its stockholders in connection with a Liquidity Event
that are contingent upon events or performance occurring after the closing date of the transaction,
including amounts of consideration subject to an escrow agreement, a purchase price adjustment or
to indemnity claims (each such contingent amount is referred to herein as a “Contingent
Consideration Amount”) and (ii) any amounts of consideration to be paid to the Company or its
stockholders in connection with a Liquidity Event other than cash or Freely-Tradable Public
Securities (each such amount is referred to herein as an “Illiquid Consideration Amount”).
However, the Board, in its sole and absolute discretion for any or no reason, may at any time prior
to, or at the time of, a Liquidity Event determine that Net Proceeds for all purposes of this
Agreement shall include all or any portion of each Contingent Consideration Amount, Illiquid
Consideration Amount or both, that is actually received by the Company’s stockholders thereafter on
such terms as it deems appropriate without violating the payment requirements of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”).

     2. Determination of Number of Shares of Common Stock Earned.

     If the Net Proceeds are less than $7.50 per share, then the Grantee shall receive 50% of the
Target Award, or [•] shares of Common Stock.

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     If the Net Proceeds are greater than or equal to $7.50 per share and less than or equal to
$7.99 per share, then the Grantee shall receive the Target Award, or [•] shares of Common Stock.

     If the Net Proceeds are equal to or exceed $8.00 per share, then the Grantee shall receive
200% of the Target Award, or [•] shares of Common Stock, and the Award Period shall be deemed
completed in full.

     3. Issuance of Shares.

     Subject to Section 4 of this Agreement, the Performance Shares earned under Section 2 of this
Agreement will be converted into the appropriate number of shares of Common Stock and will be
issued to you as soon as reasonably practicable following the completion of the Award Period.
Assuming the Grantee is still [•] of the Company at such time, the Award Period shall be deemed
completed in full as of the date on which all conditions to the closing of a Liquidity Event
described in Sections 1(a)(i) or (ii) above have been satisfied (other than conditions to closing
which by their nature are to be satisfied on the closing date of such Liquidity Event) and the
number of Performance Shares earned shall be calculated as of such time in accordance with Section
2 above and shares of Company Common Stock shall be issued to the Grantee in accordance with
Section 2 above prior to the closing of such Liquidity Event and in sufficient time for such shares
to be included in such Liquidity Event.

     4. Termination of Employment.

     (a) If your position as [•] of the Company is terminated by the Board for “cause” (as defined
in subsection (c) below) or by you prior to the end of the Award Period, all Performance Shares
will be automatically forfeited upon such termination without any consideration due to you.

     (b) If your position as [•] of the Company is terminated for any reason other than as set
forth in subsection (a) above prior to the end of the Award Period, you shall be entitled to a
pro-rata percentage of the Performance Shares that would otherwise be payable if you had continued
as [•] of the Company until the end of the Award Period, rounded up to the nearest whole share.
The “pro-rata percentage” shall be equal to 100% multiplied by a fraction, the numerator of which
is the number of fully completed months of service with the Company since the Grant Date (including
December 2009 as a fully completed month) through the date of your termination, and the denominator
of which is the number of months in the Award Period (including the month in which the Award Period
is deemed to have been completed).

     (c) For purposes of this Agreement, “cause” shall mean that the Board, acting in good faith
after consultation with the Manager, determines that you have engaged in or committed: willful
misconduct; gross negligence; theft, fraud or other illegal conduct; refusal or unwillingness to
perform your duties; sexual harassment; any willful act that has the effect of injuring the
business of the Company; violation of any fiduciary duty; or breach of any term of this agreement.

     5. Effect of a Change in Control.

     In the event of any “Change in Control” other than a Liquidity Event, assuming the Grantee is
still [•] of the Company, the Award Period shall be deemed completed in full as of the effective
time of such Change in Control, and the Target Award shall be issued to the Grantee in accordance

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with Section 3 above. For purposes of this Agreement, notwithstanding the definition of “Change in
Control” in Section 2(E)(IV) of the Plan, stockholder approval of a plan of liquidation shall not
constitute a “Change in Control.”

     6. Effect of Termination of Management Agreement.

     If the management agreement between the Company and the Manager is terminated or not renewed
other than for Cause (as such term shall be defined in the management agreement), provided that you
are then employed by the Manager and occupy the position of [•] of the Company, the Award Period
shall be deemed completed in full as of the effective time of such termination or non-renewal and
the Performance Shares shall be converted into shares of Common Stock in accordance with Section 3
of this Agreement. If the management agreement is terminated or not renewed for Cause (as such term
shall be defined in the management agreement) prior to the end of the Award Period, all Performance
Shares shall be automatically forfeited without any consideration due to you.

     7. Transfer Restrictions.

     Notwithstanding anything to the contrary in this Agreement, the Performance Shares may not be
sold, assigned, transferred, pledged, or otherwise encumbered by you.

     No transfer by will or the applicable laws of descent and distribution of any shares of Common
Stock which are issuable to you upon settlement of the Performance Shares by reason of your death
shall be effective to bind the Company unless the Committee administering the Plan shall have been
furnished with written notice of such transfer and a copy of the will or such other evidence as the
Committee may deem necessary to establish the validity of the transfer.

     8. Distributions and Adjustments.

     (a) If there is any change in the number or character of the Common Stock of the Company
without additional consideration paid to the Company (through any stock dividend or other
distribution, recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of shares or otherwise), the
Committee shall, in such manner and to such extent (if any) as it deems appropriate and equitable,
adjust the number of Performance Shares subject to this Agreement accordingly, in its sole
discretion. Any fractional Performance Shares resulting from an adjustment under this Section 8(a)
shall be rounded down to the nearest whole unit.

     (b) Distributions payable on the Company’s Common Stock, if any, (other than stock dividends
or other distributions described in Section 8(a) above) will accrue for your benefit (without
interest) during the Award Period without duplication. Accrued amounts under this Section 8(b) on
a Performance Share shall be paid to you upon settlement of your Performance Share award under
Section 3 above. Accrued Distributions on a Performance Share shall be forfeited immediately upon
the forfeiture of such Performance Share under Section 4 above.

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     9. Taxes.

     (a) You acknowledge that you will consult with your personal tax advisor regarding the
federal, state and local tax consequences of the grant of the Performance Shares, payment of
dividend equivalents on the Performance Shares (if any) and the issuance of shares of Common Stock
to you in settlement of the Performance Shares and any other matters related to this Agreement.
You are relying solely on your advisors and not on any statements or representations of the Company
or any of its agents. You understand that you are responsible for your own tax liability that may
arise as a result of this grant or any other matters related to this Agreement.

     (b) In order to comply with all applicable federal, state or local income tax laws or
regulations, the Company may take such action as it deems appropriate to ensure that all income and
payroll taxes, which are your sole and absolute responsibility, are withheld or collected from you
at the minimum required withholding rate.

     (c) In accordance with the terms of the Plan, and such rules as may be adopted by the
Committee administering the Plan, you may elect to satisfy any applicable tax withholding
obligations arising from the settlement of the Performance Shares (including property attributable
to the Performance Shares described in Section 8(b) above) by:

          (i) delivering cash (including check, draft, money order or wire transfer made payable to the
order of the Company),

          (ii) having the Company withhold a portion of the shares of Common Stock to be issued to you
in settlement of the Performance Shares having a Fair Market Value equal to the minimum tax
withholding amount for such taxes, or

          (iii) delivering to the Company shares of Common Stock having a Fair Market Value equal to the
minimum tax withholding amount for such taxes. The Company will not deliver any fractional share
of Common Stock but will pay, in lieu thereof, the Fair Market Value of such fractional share of
Common Stock. Your election must be made on or before the date that the amount of tax to be
withheld is determined.

     10. Liquidating Trust. In the event that the Company elects to form a liquidating
trust, distribute any or all of its assets into such liquidating trust and cancel all of its issued
share capital, the Company agrees to cause the liquidating trust to assume the obligations created
by this Agreement and provide you with a replacement award that provides equal rights and
obligations as those embodied in this Agreement.

     11. General Provisions.

     (a) Interpretations. Unless otherwise specified herein, this Agreement is subject in
all respects to the terms of the Plan. A copy of the Plan is available upon your request. In the
event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of
the Plan shall govern. Any question of administration or interpretation arising under this
Agreement shall be determined by the Committee, and such determination shall be final, conclusive
and binding upon all parties in interest.

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     (b) Securities Matters. The Company shall not be required to issue or deliver any
shares of Common Stock until the requirements of any federal or state securities or other laws,
rules or regulations (including the rules of any securities exchange) as may be determined by the
Company to be applicable are satisfied.

     (c) Headings. Headings are given to the sections and subsections of this Agreement
solely as a convenience to facilitate reference. Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of this Agreement or any provision
hereof.

     (d) Saving Clause. If any provision(s) of this Agreement shall be determined to be
illegal or unenforceable, such determination shall in no manner affect the legality or
enforceability of any other provision hereof.

     (e) Section 409A. The Performance Shares granted hereunder are intended to be exempt
from Section 409A of the Code as a “short-term deferral” and this Agreement shall be interpreted
consistent with this intention. Notwithstanding the foregoing or any provision of the Plan or this
Agreement, if this Agreement becomes subject to and violates Section 409A or could cause you to
incur any tax, interest or penalties under Section 409A, the Board or the Committee, as applicable,
may, in its sole discretion, and without your consent, modify such provision to (i) comply with, or
avoid being subject to, Section 409A, or to avoid the incurrence of any taxes, interest and
penalties under Section 409A, and/or (ii) maintain to the maximum extent practicable, the original
intent and economic benefit to you of the applicable provision without materially increasing the
cost to the Company or contravening the provisions of Section 409A. This Section 11(e) does not
create an obligation on the part of the Company to modify the Plan or this Agreement and does not
guarantee that the Performance Shares or shares of Common Stock distributed hereunder will not be
subject to taxes, interest and penalties under Section 409A.

     (f) Rights as a Stockholder. You shall have no rights as a stockholder of the Company
with respect to any Performance Shares covered by this Agreement until the shares of Common Stock
are issued to you in respect of the Performance Shares.

     (g) Governing Law. The internal law, and not the law of conflicts, of the State of
Maryland will govern all questions concerning the validity, construction and effect of this
Agreement.

     (h) Notices. You should send all written notices regarding this Agreement or the Plan
to the Company at the following address:

Care Investment Trust Inc.

c/o CIT Healthcare LLC

505 Fifth Avenue, 6th Floor

New York, New York 10017

Attn: Chief Financial Officer

     (i) Benefit and Binding Effect. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto, their respective successors, permitted assigns, and legal

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representatives. The Company has the right to assign this Agreement, and such assignee shall
become entitled to all the rights of the Company hereunder to the extent of such assignment.

     (j) American Recovery and Reinvestment Act of 2009. This equity award shall be deemed
void ab initio to the extent it is determined to be in violation of the American Recovery and
Reinvestment Act of 2009 or any regulations adopted thereunder.

(Remainder of page intentionally left blank)

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IN WITNESS WHEREOF, the Company by one of its duly authorized officers has executed this Agreement
as of the day and year first above written.

	 	 	 	 	 
	 	CARE INVESTMENT TRUST INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

8exv10w41

Exhibit 10.41

Confidential Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions.

EXECUTION COPY

LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (“Agreement”) is made effective as of the 18th day of December, 2009
(the “Effective Date”), by and between The Medicines Company, a corporation organized and existing
under the laws of Delaware with offices at 8 Sylvan Way, Parsippany, NJ 07054 (“LICENSEE”), and
Pfizer Inc., a corporation organized and existing under the laws of Delaware with offices at 235
East 42nd Street, New York, NY 10017 (“PFIZER”). LICENSEE and PFIZER may, from
time-to-time, be individually referred to as a “Party” and collectively referred to as the
“Parties”.

RECITALS

     WHEREAS, PFIZER Controls the Licensed Technology (hereinafter defined); and

     WHEREAS, LICENSEE wishes to obtain, and PFIZER wishes to grant, certain licenses under the
Licensed Technology on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual agreements and covenants set forth herein and
other good and valuable consideration, the receipt and sufficiency of which the Parties hereby
acknowledge, the Parties, intending to be legally bound hereby, agree to the foregoing and as
follows:

	1.	 	DEFINITIONS

	 	1.1.	 	“Affiliate” means, with respect to a Party, any Person that controls, is
controlled by, or is under common control with that Party. For the purpose of this
definition, “control” shall refer to: (a) the possession, directly or indirectly, of
the power to direct the management or policies of an entity, whether through the
ownership of voting securities, by contract or otherwise, or (b) the ownership,
directly or indirectly, of fifty percent (50%) or more of the voting securities of such
entity.
	 
	 	1.2.	 	“Applicable Laws” means all applicable laws, statutes, rules, regulations and
guidelines, including all good manufacturing practices and all applicable standards or
guidelines promulgated by the appropriate Regulatory Authority, the rules of the
Securities and Exchange Commission or any stock exchange and any court order or other
governmental order.
	 
	 	1.3.	 	“Bankruptcy Code” has the meaning as set forth in Section 13.3.
	 
	 	1.4.	 	“Bankruptcy Event” has the meaning as set forth in Section 13.3.
	 
	 	1.5.	 	“Business Day” means any day other than a Saturday, a Sunday or a day on which
commercial banks located in New York, New York are authorized or required by law to
remain closed.
	 
	 	1.6.	 	“Calendar Quarter” means each of the three (3) month periods commencing on
January 1, April 1, July 1 and October 1 of any year.

 

 

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	 	1.7.	 	“Calendar Year” means the twelve (12) month period commencing on January 1 and
each successive twelve (12) month period thereafter.
	 
	 	1.8.	 	“cGMP” means current Good Manufacturing Practices and standards as provided
for in the 21 CFR Parts 210-211 and in European Community Directive 91/356/EEC, each as
amended from time to time.
	 
	 	1.9.	 	“Combination Product” means any pharmaceutical product containing: (a) a
Compound(s) and (b) one or more other therapeutically active ingredients which are not
Compounds.
	 
	 	1.10.	 	“Commence” or “Commencement” when used with respect to a clinical trial, means
the first dosing of the first patient for such trial.
	 
	 	1.11.	 	“Commercialize” or “Commercialization” means to manufacture for sale, market,
promote, otherwise offer for sale, distribute, and sell.
	 
	 	1.12.	 	“Commercially Reasonable Efforts” means, with respect to a Product: (a) with
respect to Development of such Product, the efforts, budget, headcount and expenditures
that are directed toward seeking to obtain Regulatory Approval and are comparable to
those used by LICENSEE for one of LICENSEE’s products that is at a similar stage of
development and has similar commercial potential as such Product, and (b) with respect
to Commercialization of such Product, the efforts, budget, headcount and expenditures
that are comparable to those used by LICENSEE for any of LICENSEE’s products that has
similar commercial potential as such Product; in each of cases (a) and (b), as
determined on a country-by-country basis by reference to relevant scientific,
regulatory and commercial factors including product safety and efficacy profile,
development risk, regulatory environment, patent and other exclusivity protections and
risks, anticipated market size, competition from other products or treatments, product
labeling or anticipated labeling and competitive market conditions, all as measured by
the facts and circumstances at the time such efforts are due.
	 
	 	1.13.	 	“Compound” means each of the following, separately: ETC-216, alone, and each
Improvement thereto. ETC-216 and each modified version of ETC-216 which is an
Improvement shall be considered a separate Compound for purposes of this Agreement.
	 
	 	1.14.	 	“Control” or “Controlled” means, with respect to any Intellectual Property
Rights, the legal authority or right (whether by ownership, license or otherwise, other
than pursuant to a license granted under this Agreement) of a Party to grant a license
or a sublicense of or under such Intellectual Property Rights to the other Party
without breaching the terms of any agreement with a Third Party.
	 
	 	1.15.	 	“Cover”, “Covering” or “Covered” means, with respect to a Compound or Product,
in the absence of a license granted under a Valid Claim, the Use of such Compound or
Product would infringe such Valid Claim (or, in the case of a Valid Claim that has not
yet issued, would infringe such Valid Claim if it were to issue).

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	 	1.16.	 	“Danisco” has the meaning as set forth in Section 2.1.3.
	 
	 	1.17.	 	“Danisco Agreement” has the meaning as set forth in Section 2.1.3.
	 
	 	1.18.	 	“Danisco IP” has the meaning as set forth in Section 2.1.3.
	 
	 	1.19.	 	“Develop” or “Development” means to conduct research and development
activities, and related manufacturing activities, necessary to obtain or for the
purpose of obtaining or maintaining Regulatory Approval.
	 
	 	1.20.	 	“EMEA” means the European Medicines Agency, or any successor agency thereof.
	 
	 	1.21.	 	“ETC-216” means the compound designated by PFIZER as ETC-216 as described in
Schedule A hereto in the form existing as of the Effective Date.
	 
	 	1.22.	 	“Europe” means the member states of the European Union, as constituted from
time to time.
	 
	 	1.23.	 	“FDA” means the United States Food and Drug Administration, or a successor
federal agency thereto.
	 
	 	1.24.	 	“Field” means all therapeutic, prophylactic and diagnostic uses in humans and
animals.
	 
	 	1.25.	 	“First Commercial Sale” means, with respect to a Product in a country in the
Territory, the first sale for use or consumption by the general public of such Product
following receipt of Regulatory Approval for such Product in such country.
	 
	 	1.26.	 	“GAAP” means the generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board.
	 
	 	1.27.	 	“Improvements” means, with respect to ETC-216, any change or modification
thereof, including amino acid deletions, additions, duplications and substitutions, and
chemical or physical modifications thereto, in each case to the extent such modified
ETC-216 is or has been Covered by a Valid Claim under the Patent Rights.
	 
	 	1.28.	 	“IND” means: (a) an investigational new drug application filed with the FDA
for authorization for the clinical investigation of a Product, and (b) any of its
foreign equivalents as filed with the applicable Regulatory Authorities in other
countries or regulatory jurisdictions in the Territory, as applicable.
	 
	 	1.29.	 	“Intellectual Property Rights” means all trade secrets, copyrights, patents,
patent applications and other patent rights, Trademarks, moral rights, and any and all
other intellectual property or proprietary rights now known or hereafter recognized in
any jurisdiction.

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	 	1.30.	 	“Know-How” means the confidential or proprietary information and data
(including pre-clinical, clinical and manufacturing data but specifically excluding the
Patent Rights and the Danisco IP) Controlled by PFIZER as of the Effective Date, which
PFIZER or its Affiliates have applied to or incorporated into ETC-216 and which are
necessary or optimal for LICENSEE to Use ETC-216.
	 
	 	1.31.	 	“Knowledge” means the actual present knowledge of PFIZER’s current patent
counsel with responsibility for intellectual property matters relating to ETC-216, and
current director of regulatory affairs matters relating to ETC-216, and is not meant to
require or imply that any particular inquiry or investigation has been undertaken
including obtaining any type of search (independent of that performed by the actual
governmental authority during the normal course of patent prosecution, as applicable,
in a jurisdiction) or opinion of counsel
	 
	 	1.32.	 	“Licensed Technology” means collectively, the Patent Rights and Know-How.
	 
	 	1.33.	 	“Major European Country” means any of the following countries: France,
Germany, Italy, Spain and the United Kingdom.
	 
	 	1.34.	 	“Milestone” means each milestone as set forth in Section 5.1.2.
	 
	 	1.35.	 	“NDA/BLA” means: (a) a new drug application or a new biologic
license application filed with the FDA for authorization for marketing a Product, and
(b) any of its foreign equivalents as filed with the applicable Regulatory Authorities
in other countries or regulatory jurisdictions in the Territory, as applicable,
including a Marketing Authorization Application (“MAA”).
	 
	 	1.36.	 	“Net Sales” means the gross amount invoiced by or on behalf of LICENSEE, its
Affiliates and their respective sublicensees (the “Selling Party”) for sales of the
relevant Product (other than sales by a Selling Party to LICENSEE, its Affiliates or
sublicensees for subsequent resale, in which case the sale thereafter by LICENSEE, its
Affiliates or sublicensees to a Third Party other than a Selling Party (an “End User”)
shall be used for calculation of Net Sales), provided, however, that if
the price invoiced by LICENSEE for the transfer to such Affiliate or sublicensee is
higher than the price invoiced by such Affiliate or sublicensee for the subsequent
resale to the End User, the Net Sales shall be determined on the gross amount invoiced
by LICENSEE to such Affiliate or sublicensee, and not on the gross amount invoiced by
such Affiliate or sublicensee to the End User; less the following deductions if and to
the extent they are included in the gross invoiced sales price of the Product or
otherwise directly incurred by LICENSEE, its Affiliates and their respective
sublicensees with respect to the sale of the Product: (a) rebates, quantity and cash
discounts, and other usual and customary discounts to customers; (b) taxes and duties
paid, absorbed or allowed which are directly related to the sale of the Product; (c)
credits, allowances, discounts and rebates to, and chargebacks for spoiled, damaged,
out-dated, rejected or returned Product; (d) actual freight and insurance costs
incurred in transporting the Product to customers, provided that in no event shall
deductions for freight and insurance exceed three percent (3%) of the gross amount
invoiced; (e) discounts or rebates or other payments required by

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	 	 	 	Applicable Law, including any governmental special medical assistance programs; (f)
customs duties, surcharges and other governmental charges incurred in connection
with the exportation or importation of the Product; (g) fee-for-service wholesaler
fees and inventory management fees paid to non-Affiliate wholesalers, including
hospital buying group/group purchasing organization administration fees, which are
reasonably allocated to the Product, to the extent consistent with the usual course
of dealing of the Selling Party for its products other than a Product; and (h)
amounts that are written off as uncollectible in accordance with the accounting
procedures of the Selling Party, consistently applied, to the extent a royalty has
actually been paid to PFIZER therefor, provided that LICENSEE has made
reasonable efforts to collect on such receivable, and provided,
further, that if such receivable shall thereafter be paid or otherwise
satisfied, the amount thereof shall be added to Net Sales for the Calendar Quarter
in which so paid or satisfied. Subsections (a) through (h) shall be collectively
referred to as “Deductions”. 

The following principles shall apply in the calculation of Net
Sales:

	 	1.36.1.	 	In the case of any sale of a Product which is not invoiced or is delivered
before invoice, Net Sales shall be calculated at the time of shipment or when
the Product is paid for, if paid for before shipment or invoice.
	 
	 	1.36.2.	 	In the case of any sale or other disposal of a Product for non-cash
consideration, Net Sales shall be calculated as the fair market price of the
Product in the country of sale or disposal. Notwithstanding the foregoing,
provision of the Product for the purpose of conducting pre-clinical or clinical
research or Development shall not be deemed to be a sale, so long as the
Product is provided at a price which does not exceed the reasonably estimated
cost of production and distribution thereof.
	 
	 	1.36.3.	 	In the event a Product is sold as a Combination Product, the Net Sales of
the Product, for the purposes of determining royalty payments, shall be
determined by multiplying the Net Sales of the Combination Product by the
fraction, A/(A+B) where A is the weighted (by sales volume) average sale price
in a particular country of the Product when sold separately in finished form
and B is the weighted average sale price in that country of the other
product(s) sold separately in finished form. In the event that such average
sale price cannot be determined for both the Product and the other product(s)
in combination, Net Sales for purposes of determining royalty payments shall be
agreed by the Parties based on the relative value contributed by each
component, such agreement not to be unreasonably withheld, or, if not agreed,
determined pursuant to Section 16.1.2.
	 
	 	1.36.4.	 	Unless otherwise specified herein, Net Sales shall be calculated in
accordance with GAAP generally and consistently applied.

	 	1.37.	 	“Patent Rights” means (a) the patents and patent applications listed in
Schedule B, (b) all divisionals, continuations, and continuations-in-part that
claim priority to the patent applications described in subsection (a) or the patent
applications from which

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	 	 	 	the patents described in subsection (a) issued, (c) all patents that have issued or
in the future issue from any of the foregoing patent applications in subsections (a)
and (b), including utility, model and design patents and certificates of invention,
(d) any reissues, renewals, extensions or additions of any of the foregoing, and (e)
any foreign equivalents of any of the foregoing.
	 
	 	1.38.	 	“Person” means an individual, corporation, partnership, limited liability
company, trust, business trust, association, joint stock company, joint venture, pool,
syndicate, sole proprietorship, unincorporated organization, governmental authority or
any other form of entity not specifically listed herein.
	 
	 	1.39.	 	“Phase II Clinical Trial” means a clinical trial of a Product on patients (i)
the principal purpose of which is to make a preliminary determination that such Product
is safe for its intended use, (ii) which contains a primary efficacy endpoint pursuant
to the protocol established by LICENSEE and approved by the applicable Regulatory
Authority, and (iii) which is generally consistent with the description in 21 CFR
§312.21(b) (as hereafter modified or amended) and any of its foreign equivalents. For
clarity, such trial may be referred to and conducted as a “Phase IIB Trial” or a
“De-Risking Imaging Trial” so long as it satisfies all requirements under 21 CFR
§312.21(b).
	 
	 	1.40.	 	“Phase III Clinical Trial” means the first morbidity and mortality clinical
trial required for the filing of an NDA/BLA or equivalent with a regulatory agency for
a Product that is performed after collecting preliminary evidence suggesting dose and
effectiveness of such Product, and which trial has safety and efficacy endpoints that,
if met, are acceptable to the applicable Regulatory Authorities as a basis for approval
of such NDA/BLA, and which is generally consistent with the description in 21 CFR
§312.21(c) (as hereafter modified or amended) and any of its foreign equivalents.
	 
	 	1.41.	 	“Product” means, on a Compound-by-Compound basis, any product(s) in which such
Compound is used as an active ingredient, for any indication and through any mode of
administration, and any formulations and line extensions of such a product.
	 
	 	1.42.	 	“Regulatory Approval” means, with respect to a Product in any country or
jurisdiction, any approval (including where required, pricing and reimbursement
approvals), registration, license or authorization that is required by the applicable
Regulatory Authority to market and sell such Product in such country or jurisdiction.
	 
	 	1.43.	 	“Regulatory Authority” means any governmental agency or authority responsible
for granting Regulatory Approvals for pharmaceutical or biological products, as
applicable, in the Territory.
	 
	 	1.44.	 	“Regulatory Filings” means, with respect to a Product, any submission to a
Regulatory Authority of any appropriate regulatory application, including any IND,
NDA/BLA, any submission to a regulatory advisory board, any marketing authorization
application, and any supplement or amendment thereto.

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	 	1.45.	 	“Royalty Term” means, on a Product-by-Product and country-by country basis
with respect to each Product and each country in the Territory, the period commencing
on the Effective Date and expiring upon the later of: (a) expiration or abandonment or
other termination of the last Valid Claim of the Patent Rights Covering such Product in
such country in the Territory, (b) the expiration of any market exclusivity period
granted by a Regulatory Authority for such Product in such country, or (c) ten (10)
years following the date of First Commercial Sale of such Product in such country.
	 
	 	1.46.	 	“Sublicense Fees” has the meaning as set forth in Section 5.1.4.
	 
	 	1.47.	 	“Territory” means all countries of the world.
	 
	 	1.48.	 	“Third Party” means any Person other than a Party or an Affiliate of a Party.
	 
	 	1.49.	 	“Trademarks” has the meaning as set forth in Section 13.6.4.
	 
	 	1.50.	 	“United States” means the United States of America, its possessions and territories.
	 
	 	1.51.	 	“Use” means to research, Develop, make, have made, use, sell, have sold, offer
for sale, otherwise Commercialize and import.
	 
	 	1.52.	 	“Valid Claim” means either (a) a claim of an issued and unexpired patent
included within the Patent Rights, which has not been permanently revoked or declared
unenforceable or invalid by an unreversed and unappealable or unreversed and unappealed
decision of a court or other appropriate body of competent jurisdiction, or (b) a claim
of a pending patent application included within the Patent Rights, which claim has not
been revoked, cancelled, withdrawn, or abandoned or finally disallowed without the
possibility of appeal or refiling of such application (or which is not
appealed or refiled within the time allowed for appeal).

	2.	 	LICENSE GRANT

			
	 
	 	2.1. 	License Grant.

2.1.1. Patent Rights. Subject to the terms and conditions of this Agreement,
PFIZER hereby grants to LICENSEE an exclusive (even as to PFIZER and its
Affiliates), sublicensable (subject to Section 2.2), transferable (in
accordance with Section 17.1), royalty-bearing right and license under the
Patent Rights to Use the Products in the Field within the Territory.

2.1.2. Know How. Subject to the terms and conditions of this Agreement, PFIZER
hereby grants to LICENSEE an exclusive (even as to PFIZER and its Affiliates),
sublicensable (subject to Section 2.2), transferable (in accordance with
Section 17.1), royalty-bearing right and license under the Know-How to Use the
Products in the Field within the Territory.

2.1.3. Danisco Agreement. On or before the Effective Date hereof, LICENSEE,
PFIZER and Danisco US, Inc. (“Danisco”) have executed a

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Partial Assignment, Amendment and Assumption of Agreement (the “Danisco
Agreement”) pursuant to which LICENSEE acquired from Danisco an exclusive
license under certain patents and patent applications (the “Danisco IP”) to
make, have made, import, use, market, offer for sale and sell LICENSED PRODUCTS
(as defined in the Danisco Agreement). If PFIZER fails to timely pay to
Danisco the consideration due to Danisco pursuant to Section 3 of the FIRST
AMENDMENT (as defined in the Danisco Agreement) and as described in Article 4.2
of the LICENSE AGREEMENT (as defined in the Danisco Agreement), PFIZER shall
promptly notify LICENSEE thereof, and PFIZER and LICENSEE shall promptly and in
good faith, and at PFIZER’s sole cost and expense, seek to cure such failure to
timely pay Danisco, provided, however, that the good faith
obligation to cure such failure shall not require PFIZER to pay to Danisco any
consideration in addition to the amount agreed to in the FIRST AMENDMENT.
Should PFIZER and LICENSEE not succeed in curing such failure, LICENSEE may
immediately terminate this Agreement.

	 	2.2.	 	Sublicense Rights. Subject to Section 2.2.4 hereof, LICENSEE may sublicense
the rights granted to it by PFIZER under this Agreement to any of its Affiliates or to
any Third Party. Any and all sublicenses shall be subject to the following
requirements:

	 	2.2.1.	 	All sublicenses shall be subject to and consistent with the terms and
conditions of this Agreement and shall: (a) preclude the assignment of such
sublicense without the prior written approval of PFIZER, such approval not to
be unreasonably withheld, conditioned or delayed, and (b) preclude the granting
of further sublicenses in contravention of the terms and conditions of this
Agreement. In no event shall any sublicense relieve LICENSEE of any of its
obligations under this Agreement.
	 
	 	2.2.2.	 	LICENSEE shall furnish to PFIZER a true and complete copy of each sublicense
agreement and each amendment thereto, within [**] days after the sublicense or
amendment has been executed.
	 
	 	2.2.3.	 	At least [**] days before granting a sublicense to a Third Party in any
country in the Territory, LICENSEE shall provide PFIZER with written notice of
its interest in granting a sublicense, which notice shall specify the
country(ies) in which LICENSEE is interested in granted a sublicense. If
PFIZER notifies LICENSEE within such [**] day period that PFIZER desires to
negotiate an agreement with respect to such proposed sublicense rights, then
LICENSEE shall negotiate with PFIZER during such [**] day period, or such
longer period as agreed between the Parties, regarding the terms pursuant to
which the Parties would enter into such an agreement.
	 
	 	2.2.4.	 	Any sublicense granted by LICENSEE to a Third Party in the United States,
Japan, China or any country in Europe, is subject to the prior written consent
of PFIZER, such consent not to be unreasonably withheld, conditioned or
delayed.

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	 	2.3.	 	Residuals. PFIZER may use for any purpose the Residuals resulting from
PFIZER’s access to or work with the Products, but not for purposes of clinically
Developing, Commercializing or manufacturing for sale any Products in the Field in the
Territory. As used herein, “Residuals” means information in non-tangible form which
may be retained in the unaided memories of PFIZER’s employees who have had access to
the Products, including ideas, concepts, know-how or techniques related thereto.
	 
	 	2.4.	 	365(n) Rights. All rights granted under this Agreement by PFIZER are, for the
purposes of Article 365(n) of the Bankruptcy Code, licenses of rights to “intellectual
property” as defined under Article 101 of the Bankruptcy Code. The Parties agree that
LICENSEE will retain, and may fully exercise, all of its rights and elections as a
licensee under the Bankruptcy Code.
	 
	 	2.5.	 	No Additional Rights. Nothing in this Agreement shall be construed to confer
any rights upon LICENSEE by implication, estoppel, or otherwise as to any technology or
Intellectual Property Rights of PFIZER or its Affiliates other than the Licensed
Technology, regardless of whether such technology or Intellectual Property Rights shall
be dominant or subordinate to any Licensed Technology; provided, however, that this
Section 2.5 shall not supersede the provisions of Section 2.4 and the representations
and warranties given by PFIZER pursuant to Article 10. Nothing in this Agreement shall
be construed to confer any rights upon PFIZER by implication, estoppel, or otherwise as
to any technology or Intellectual Property Rights of LICENSEE or it Affiliates other
than as expressly provided in Section 13.6.4.

	3.	 	TECHNOLOGY TRANSFER

	 	3.1.	 	Process.

3.1.1. Documentation. Beginning as promptly as reasonably practical after the
Effective Date and continuing for a period of [**] after the Effective Date
(“Transfer Period”), PFIZER will use reasonable efforts to transfer to LICENSEE
the non-clinical, clinical, pharm-sci, manufacturing and regulatory information
and tangible materials described on Schedule C that (a) exists as of
the Effective Date, (b) includes only information and data related to ETC-216
(provided, however, that, notwithstanding the foregoing, (i)
PFIZER shall use reasonable efforts to separate information and data specific
to ETC-216 from other information and data, and (ii) PFIZER shall provide to
LICENSEE such separated information and data, other information and data that
primarily relate to ETC-216, and the information and data that is reasonably
necessary for LICENSEE’s regulatory and patent activities hereunder), and (c)
is reasonably retrievable by PFIZER (collectively, “Documentation”),
provided, however, that no Documentation containing protected
health information or other patient information, or specimens collected from
patients, will be transferred unless PFIZER has obtained prior informed written
consent to such transfer. To the extent the Documentation exists as of the
Effective Date in an electronic format, including scanned versions of a
hardcopy, PFIZER will provide to LICENSEE only an electronic copy of such
Documentation. For

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Documentation which does not exist in electronic format as of the Effective
Date, PFIZER will provide to LICENSEE a physical copy of the Documentation.
For a period of [**] following expiration of the Transfer Period, if PFIZER or
LICENSEE discovers or learns of any other Documentation that exists and has not
been supplied to LICENSEE in accordance with this Section 3.1.1, LICENSEE shall
provide PFIZER with written notice thereof, including a reasonably detailed
description thereof, and PFIZER shall use reasonable efforts to promptly locate
such Documentation and provide a copy of same to LICENSEE. Notwithstanding the
foregoing, but subject to clause (b)(ii) above and, with respect to clause (x)
below, subject to clause (b)(i) above, PFIZER will not provide Documentation
that: (x) contains data or records related to technology or products other than
ETC-216, or (y) includes laboratory notebooks, PFIZER internal team meeting
minutes, communications, personal notes or internal correspondence. For the
avoidance of doubt, PFIZER has the right, but not the obligation, to retain
copies of Documentation that are provided to LICENSEE.

3.1.2. Manufacturing Technology. Beginning as promptly as reasonably practical
after the Effective Date and continuing for a period of [**] following the
Effective Date, PFIZER shall cooperate with and provide reasonable assistance
to LICENSEE or its designee, through consultation and face-to-face meetings, to
enable LICENSEE or its designee in an efficient and timely manner to transfer
the Know-How with respect to the manufacturing and formulation of ETC-216
generated by or on behalf of PFIZER. PFIZER’s engagement pursuant to this
Section 3.1.2 shall be limited to a maximum of [**] person-hours. LICENSEE
shall reimburse PFIZER for all reasonable, documented out-of-pockets costs and
expenses (but not PFIZER’s internal costs) incurred in connection therewith.

3.1.3. Regulatory Filings; Regulatory Approvals. PFIZER will transfer to
LICENSEE all Regulatory Filings and Regulatory Approvals held by PFIZER or its
Affiliates with respect to ETC-216, and will reasonably cooperate with LICENSEE
in notifying each applicable Regulatory Authority of such transfer. PFIZER
shall promptly initiate such transfers after the Effective Date and shall
complete such transfers within [**] after the Effective Date; provided,
however, that, PFIZER shall initiate the transfer of any INDs to
LICENSEE, and notify the FDA and all other relevant Regulatory Authorities
thereof, within [**] days after the Effective Date. Without limiting the
foregoing, PFIZER shall be available to consult with LICENSEE on regulatory
matters related to ETC-216, including with respect to manufacturing data
submitted to the FDA and other Regulatory Authorities. PFIZER’s engagement
pursuant to this Section 3.1.3 shall be limited to a maximum of [**]
person-hours total. LICENSEE shall reimburse PFIZER for all reasonable
documented out-of-pockets costs and expenses (but not PFIZER’s internal costs)
incurred in connection therewith.

3.1.4. Transition Liaison. Each Party shall appoint one of its employees to
serve as a transition liaison to oversee and facilitate the transfer and
transition of Documentation, manufacturing technology and Know-How, Regulatory

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Filings and Regulatory Approvals pursuant to Sections 3.1.1, 3.1.2 and 3.1.3.
PFIZER’s initial transition liaison is [**], and LICENSEE’s initial transition
liaison is [**]. Each Party may replace its transition liaison upon written
notice to the other Party.

	4.	 	DEVELOPMENT AND COMMERCIALIZATION

	 	4.1.	 	Development. LICENSEE shall itself, or through its Affiliates or sublicensees,
use Commercially Reasonable Efforts to Develop at least one Product in the Territory.
In connection with its efforts to Develop Products, LICENSEE shall bear all
responsibility and expense for filing Regulatory Filings in LICENSEE’s name and
obtaining Regulatory Approval for such Products. LICENSEE will undertake such
activities at its sole expense and shall provide to PFIZER reports regarding LICENSEE’s
progress within [**] days following the expiration of each Calendar Year. For clarity,
the first such report shall pertain to LICENSEE’s efforts during the 2010 Calendar
Year.
	 
	 	4.2.	 	Commercialization. With respect to each Product for which LICENSEE obtains
Regulatory Approval, LICENSEE shall itself, or through its Affiliates or sublicensees,
use Commercially Reasonable Efforts to Commercialize such Product in the Territory
following receipt of Regulatory Approval for such Product in the relevant country in
the Territory. LICENSEE will undertake such activities at its sole expense.
	 
	 	4.3.	 	Manufacturing. As between the Parties, LICENSEE shall have the sole right to
manufacture, or have manufactured, the Products, and LICENSEE, its Affiliates and
sublicensees, shall be entitled to use the manufacturing rights under the Licensed
Technology, and the rights granted under the Danisco Agreement, for such purposes.

	5.	 	PAYMENT TERMS

	 	5.1.	 	Payment Terms.

5.1.1. Upfront Payment. As consideration for PFIZER’s grant of an exclusive
license under the Licensed Technology, LICENSEE shall pay to PFIZER a one-time
upfront, non-refundable and non-creditable payment of US$10,000,000 within five
(5) Business Days after the Effective Date.

5.1.2. Milestone Payments. LICENSEE shall notify PFIZER as soon as practicable
upon achievement of each Milestone. LICENSEE shall pay to PFIZER the following
one-time milestone payments (each, a “Milestone Payment”) within (a) [**] days
after the relevant Clinical or Regulatory Milestone is achieved and (b) [**]
days after the relevant Commercial Milestone is achieved:

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	CLINICAL MILESTONES	 	PAYMENT
	(1) upon Commencement of first Phase II Clinical Trial of a
Product conducted by LICENSEE, its Affiliates or its or their
permitted sublicensees

	 	US$[**]
	 
	 	 
	(2) upon Commencement of the first Phase III Clinical Trial of a
Product conducted by LICENSEE, its Affiliates or its or their
permitted sublicensees

	 	US$[**]
	 
	 	 
	REGULATORY MILESTONES

	 	PAYMENT
	(1) upon first acceptance by the FDA of the filing of a NDA/BLA
for a Product

	 	US$[**]
	 
	 	 
	(2) upon first acceptance by the EMEA of the filing of an MAA for
a Product via the centralized procedure pursuant to Directive
93/41/EEC

	 	US$[**]
	 
	 	 
	(3) upon first acceptance by the Pharmaceuticals and Medical
Devices Agency (“PMDA”) of the filing of a
manufacturing/distribution approval application for a Product in
Japan

	 	US$[**]
	 
	 	 
	COMMERCIAL MILESTONES

	 	PAYMENT
	(1) upon receipt by LICENSEE, its Affiliates or its or their
sublicensee(s) of the first Regulatory Approval by the FDA for a
Product

	 	US$[**]
	 
	 	 
	(2) upon receipt by LICENSEE, its Affiliates or its or their
sublicensee(s) of the first Regulatory Approval by the EMEA for a
Product, including pricing and reimbursement approval with the
applicable Regulatory Authorities in three Major European
Countries

	 	US$[**]
	 
	 	 
	(3) upon receipt by LICENSEE, its Affiliates or its or their
sublicensee(s) of the first Regulatory Approval by the PMDA of a
manufacturing/distribution approval application for a Product,
including pricing and reimbursement approval

	 	US$[**]
	 
	 	 
	(4) upon achieving aggregate Net Sales of Products in any Calendar
Year equal to or greater than [**] US dollars (US$[**])

	 	US$[**]

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	COMMERCIAL MILESTONES	 	PAYMENT
	(5) upon achieving aggregate Net Sales of Products in any Calendar
Year equal to or greater than [**] US dollars (US$[**])

	 	US$[**]
	 
	 	 
	(6) upon achieving aggregate Net Sales of Products in any Calendar
Year equal to or greater than [**] US dollars (US$[**])

	 	US$[**]

Each Milestone Payment shall be deemed earned as of the first achievement of the
corresponding Milestone event. For the avoidance of doubt, regardless of the number of
Products that achieve a Milestone: (i) each Milestone Payment shall be payable only on the
first occurrence of the Milestone; (ii) none of the Milestone Payments shall be payable more
than once; (iii) no additional Milestone Payments shall be due for Milestones completed for
the Development and Commercialization of a Product for any additional indications or for
additional Products; and (iv) satisfaction of a Milestone by a sublicensee or assignee of,
or Third Party retained by, LICENSEE or its Affiliates shall be deemed to have been
satisfied by LICENSEE. The total maximum amount of Milestone Payments that may be paid by
or on behalf of LICENSEE under this Agreement is four hundred ten million US dollars
(US$410,000,000).

               5.1.3. Royalty Payments.

	 	(a)	 	Royalties. In consideration of the licenses and rights
granted to LICENSEE hereunder, on a Product-by-Product and country-by-country
basis, LICENSEE will pay to PFIZER, subject to subsection (b) of this Section
5.1.3, royalties on Net Sales of a Product in the Territory, where such
royalties shall be calculated each Calendar Quarter by multiplying the Net
Sales for such Calendar Quarter by [**] percent ([**]%); provided, however,
that, if no Valid Claim Covers the Use of a Product in the U.S. or Japan, the
royalty rate for such Product in such country shall be reduced to [**] percent
([**]%) (collectively, the “Royalties”). LICENSEE’s obligation to pay
Royalties shall commence on the date of the First Commercial Sale of the
Product in a country and end at the end of the applicable Royalty Term, on a
Product-by-Product and country-by-country basis. LICENSEE shall pay all such
payments within [**] days following the expiration of each Calendar Quarter.
All payments shall be accompanied by a report that includes reasonably detailed
information regarding a total sales calculation of Net Sales of Products
(including all Deductions) and all Royalties payable to PFIZER for the
applicable Calendar Quarter (including any foreign exchange rates employed).
	 
	 	(b)	 	Generic Competition. In the event of bona fide
commercial sales activities in any country in the Territory undertaken by any
Third Party (other than pursuant to a sublicense from LICENSEE) with respect to
(i) any product approved or to be approved for sale in such country using a
Product as its reference product, or (ii) any other product specifically
intended as a direct

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	 	 	 	generically substitutable product to a Product in such country
(collectively, a “Generic Product” with respect to such Product),
and in each case ((i) and (ii)) (1) after such Generic Product in such
country has obtained a market share greater than [**] percent ([**]%) of the
total market share for such Product and such Generic Product, as measured by
unit sales, and (2) for as long as such commercial sales activity is
undertaken in such country, the royalty rate payable with respect to such
Product in such country shall be [**] percent ([**]%) of the applicable
royalty rate pursuant to Section 5.1.3(a).
	 
	 	(c)	 	Royalty Term. Royalties will be payable on a
Product-by-Product and country-by-country basis commencing as of the First
Commercial Sale of the relevant Product in the relevant country until the
expiration of the Royalty Term for such Product in such country. Upon
expiration of the Royalty Term with respect to a Product and a country, the
licenses granted to LICENSEE under this Agreement shall convert to perpetual,
exclusive, fully paid-up, non-royalty-bearing licenses with respect to such
Product in such country.

5.1.4. Sublicense Fees. In further consideration of the licenses and rights
granted to LICENSEE hereunder, LICENSEE will pay to PFIZER [**] percent ([**]%)
of the Sublicense Fees. “Sublicense Fees” means all consideration received by
LICENSEE or its Affiliates with respect to the granting of a sublicense under
any Intellectual Property Right licensed to LICENSEE hereunder, including any
up-front payments, milestone payments, or equity in the sublicensee entity
received for granting such sublicense, but excluding any amounts received by
LICENSEE or its Affiliates in respect of (a) research funding for the
development of a Product, (b) direct pass-through costs, (c) in exchange for
services priced at fair market value, provided in connection with such
sublicensee’s Use of a Product, (d) equity participation in the LICENSEE or its
Affiliates at fair market value (which may, for the avoidance of doubt, include
a premium above the publicly quoted price), or (e) amounts received by LICENSEE
on sales by its sublicensee for which Royalties are actually paid or payable to
PFIZER pursuant to Section 5.1.3 hereof, in each case ((a) through (c)) to the
extent such amounts, if marked up above actual costs or at a premium above the
publicly quoted price (in the case of equity participation), are reasonable and
bona fide payments in respect of the item concerned consistent with industry
standards. LICENSEE shall pay all Sublicense Fees received during each
Calendar Quarter within [**] days following the expiration of each such
Calendar Quarter. All payments shall be accompanied by a report that includes
a calculation of all Sublicense Fees payable to PFIZER for the applicable
Calendar Quarter.

5.1.5. Other Payments. LICENSEE shall pay to PFIZER any other amounts due
under this Agreement within [**] days following receipt of a proper invoice.

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5.1.6. Late Payments. Any late payments shall bear interest, to the extent
permitted by law, at [**] percentage points above the Prime Rate of interest as
reported in the Wall Street Journal on the date payment is due.

     5.2. Payment Method.

5.2.1. Any payments under Section 5 that are recorded in currencies other than
the US dollar shall be converted into US dollars at the average of the daily
foreign exchange rates published in the Wall Street Journal (or any
other qualified source that is acceptable to both Parties) for the Calendar
Quarter in which such payments or expenses occurred, or for periods less than a
Calendar Quarter, the average of the daily rates published in the Wall
Street Journal for such period.

5.2.2. All payments from LICENSEE to PFIZER shall be made by wire transfer in
US Dollars to the credit of such bank account as may be designated by PFIZER in
writing to LICENSEE. Any payment which falls due on a date which is not a
Business Day may be made on the next succeeding Business Day.

5.2.3. If, by reason of Applicable Law in any country, it becomes impossible or
illegal for LICENSEE, its Affiliate or sublicensee to make royalty or other
payments due hereunder to PFIZER in US Dollars, or to make royalty or other
payments due hereunder to PFIZER, (i) if permitted by Applicable Law, such
royalties or other payments due hereunder shall be deposited in local currency
in the relevant country to the credit of PFIZER in a recognized banking
institution designated by PFIZER or, if none is designated by PFIZER within
[**] days, in a recognized banking institution selected by LICENSEE, its
Affiliate or sublicensee, as the case may be, and identified in a notice in
writing given to PFIZER, and (ii) if not permitted under Applicable Law, the
payment of such royalties or other payments shall be negotiated promptly and in
good faith by the Parties.

     5.3. Taxes.

5.3.1. It is understood and agreed between the Parties that any and all
applicable sales, use, VAT, GST, excise, property, and other similar
taxes(collectively, “Taxes”) shall be paid by the Party that such Tax is
imposed upon under Applicable Law; provided that if Applicable Law requires
PFIZER to collect any such Taxes imposed upon LICENSEE, the amount of such
Taxes shall be added to the payment to be made by LICENSEE to PFIZER. PFIZER
shall remit such Taxes collected by PFIZER to the appropriate taxing
jurisdiction. Each Party will be responsible for their own income and property
taxes.

5.3.2. If LICENSEE is required to make a payment to PFIZER subject to a
deduction of tax or withholding tax (a “Withholding Tax”), (a) LICENSEE shall
deduct and withhold the amount of such Withholding Taxes for the account of
PFIZER to the extent required by Applicable Law, (b) the amounts

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payable to PFIZER shall be reduced by the amount of such Withholding Taxes
deducted and withheld, (c) LICENSEE shall pay the amounts of such Withholding
Taxes to the proper governmental authority in a timely manner and (d) LICENSEE
shall promptly transmit to PFIZER an official tax certificate or other evidence
of such tax obligations, together with proof of payment from the relevant
governmental authority of all amounts deducted and withheld, sufficient to
enable PFIZER to claim a credit or deduction for such payment of such
Withholding Taxes. Any such Withholding Taxes required under Applicable Law to
be paid or withheld shall be an expense of, and borne solely by, PFIZER.
LICENSEE will provide PFIZER with reasonable assistance, at PFIZER’s expense,
to enable PFIZER to reduce the amount of such Withholding Taxes or recover such
Withholding Taxes as permitted by Applicable Law.

5.3.3. Notwithstanding anything in this Agreement to the contrary, if an action
by LICENSEE, including an assignment by LICENSEE of its rights or obligations
under this Agreement, or any failure on the part of LICENSEE or its Affiliates
to comply with applicable laws or filing or record retention requirements,
leads to the imposition of withholding tax liability on the amounts payable
hereunder by LICENSEE to Pfizer that would not have been imposed in the absence
of such action or in an increase in such liability above the liability that
would have been imposed in the absence of such action, LICENSEE shall indemnify
and hold harmless Pfizer (or its assignee) from any such additional or
increased tax liability. In the event of any such action, LICENSEE shall, or
shall cause its assignee to, gross up any payments it makes to Pfizer to the
extent necessary so that the net payment received by Pfizer after such
additional or increased tax liability equals the amount that would have been
received by PFIZER under this Agreement had the LICENSEE not taken such action.

6. RECORDS; AUDIT RIGHTS

     6.1. Relevant Records.

6.1.1. Relevant Records. LICENSEE shall, and shall cause its Affiliates and
sublicensees to, maintain accurate financial books and records pertaining to
the sublicensing of the Licensed Technology pursuant to Section 2.2, LICENSEE’s
prosecution, maintenance and enforcement of the Patent Rights pursuant to
Section 7, and the sale of the Products, including any and all calculations of
the applicable Net Sales and Sublicense Fees, and the occurrence of the
Milestones (collectively, “Relevant Records”). The Relevant Records shall be
maintained for the longer of: (a) the period of time required by Applicable
Law, or (b) [**] years following the date on which the relevant amounts were
received or incurred.

6.1.2. Audit Request. PFIZER shall have the right during the term and for [**]
months thereafter to engage, at its own expense, an independent auditor
reasonably acceptable to LICENSEE to examine the Relevant Records from

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time-to-time, but no more frequently than [**] every [**] months, as may be
necessary to verify compliance with the terms of this Agreement. Such audit
shall be requested in writing at least [**] days in advance, and shall be
conducted during LICENSEE’s normal business hours and otherwise in manner that
minimizes any interference to LICENSEE’s business operations. No period shall
be subject to audit more than [**], except that PFIZER may conduct one
additional audit for each audit of a preceding period which has revealed an
underpayment by LICENSEE of more than five percent (5%) of the amount due
PFIZER for such preceding period. The auditor shall enter into a reasonable
confidentiality agreement with LICENSEE and shall only be permitted to disclose
to PFIZER information relating to LICENSEE’s compliance with its payment
obligations hereunder.

6.1.3. Audit Fees and Expenses. PFIZER shall bear any and all fees and
expenses it may incur in connection with any such audit of the Relevant
Records; provided, however, in the event an audit reveals an underpayment of
LICENSEE of more than five percent (5%) as to the period subject to the audit,
LICENSEE shall reimburse PFIZER for any reasonable and documented out-of-pocket
costs and expenses of the audit within [**] days after receiving invoices
thereof.

6.1.4. Payment of Deficiency. If any audit establishes that LICENSEE underpaid
any amounts due to PFIZER under this Agreement, then LICENSEE shall pay PFIZER
any such deficiency within [**] days after the later of the receipt of written
notice thereof and the resolution of any disputes related thereto. For the
avoidance of doubt, such payment will be considered a late payment, subject to
Section 5.1.6. If any audit establishes that LICENSEE overpaid any amounts due
to PFIZER, PFIZER shall pay LICENSEE any such overpayment within [**] days
after the later of the receipt of written notice thereof and the resolution of
any disputes related thereto, without interest.

7. INTELLECTUAL PROPERTY RIGHTS

	 	7.1.	 	Pre-existing IP. Subject to the rights and licenses expressly granted under
this Agreement, each Party shall retain all rights, title and interests in and to any
Intellectual Property Rights that are owned, licensed or sublicensed by such Party
prior to or independent of this Agreement.
	 
	 	7.2.	 	Patent Prosecution.

	 	(a)	 	Patent Prosecution and Maintenance. Subject to PFIZER’s rights
set forth in Section 7.2(c) below, LICENSEE will be responsible for filing,
prosecuting (including in connection with any reexaminations, oppositions and
the like) and maintaining the Patent Rights in the Territory and in PFIZER’s
name, at LICENSEE’s own cost and expense, using reasonable efforts with respect
thereto. LICENSEE will select qualified outside patent counsel and
corresponding foreign associates to prepare, file, prosecute and maintain the
Patent Rights. Before each substantive submission is filed,

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	 	 	 	LICENSEE will provide PFIZER a reasonable opportunity to review and comment
on proposed submissions to any patent office and reasonably consider any
timely comments provided by PFIZER to LICENSEE. LICENSEE will keep PFIZER
reasonably informed of the status of the Patent Rights by timely providing
PFIZER copies of significant communications relating to such Patent Rights
that are received from any patent office or patent counsel of record or
foreign associate.
	 
	 	(b)	 	Assistance.

	 	(i)	 	PFIZER will provide reasonable assistance to
LICENSEE, at LICENSEE’s expense, in connection with the filing,
prosecution and maintenance of such Patent Rights, where such
assistance shall include providing access to relevant persons and
executing all documentation reasonably requested by LICENSEE. Promptly
after the Effective Date, PFIZER will provide to LICENSEE a list of all
Patent Rights, the applicable file wrappers for such Patent Rights and
any docket reports and status reports with respect to such Patent
Rights.
	 
	 	(ii)	 	As reasonably requested by LICENSEE in writing,
PFIZER shall cooperate, at LICENSEE’s expense, in obtaining patent term
restoration (under, but not limited to, the Drug Price Competition and
Patent Term Restoration Act), supplementary protection certificates or
their equivalents, and patent term extensions with respect to the
Patent Rights in the United States, Europe and any other country in
which any patent term restorations, supplementary protection
certificates, patent term extensions or their equivalents are
available.

	 	(c)	 	Failure to Prosecute or Maintain. In the event LICENSEE elects
to forgo filing, prosecution or maintenance of the Patent Rights, LICENSEE
shall notify PFIZER of such election at least [**] days prior to any filing or
payment due date, or any other due date that requires action (“Election
Notice”). Upon receipt of an Election Notice in accordance with the foregoing,
PFIZER shall be entitled, upon written notice to LICENSEE, at its sole
discretion and expense, to file or to continue the prosecution or maintenance
of such Patent Right in such country in PFIZER’s name using counsel of its own
choice and at its own expense (“Pfizer Patent Rights”), in which case, the term
“Patent Rights” shall automatically be modified to exclude such Pfizer Patent
Rights as of the date LICENSEE provides PFIZER such Election Notice.

8. INFRINGEMENT; MISAPPROPRIATION

	 	8.1.	 	Notification. Each Party will promptly notify the other Party in writing of
any actual or threatened infringement, misappropriation or other violation by a Third

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	 	 	 	Party of any Licensed Technology in the Field and in the Territory of which it
becomes aware (“Third Party Infringement”).

     8.2. Infringement Action.

8.2.1. Right of First Enforcement.

	 	(a)	 	LICENSEE shall have the first right (but not the obligation),
at its own expense, to control enforcement of the Licensed Technology against
any Third Party Infringement and may name PFIZER as a party for standing
purposes. Prior to commencing any such action (unless delay would result in
the loss of rights), LICENSEE shall consult with PFIZER and shall consider
PFIZER’s recommendations regarding the proposed action. LICENSEE shall give
PFIZER timely notice of any proposed settlement of any such action instituted
by LICENSEE and shall not, without the prior written consent of PFIZER (not to
be unreasonably withheld), enter into any settlement that would: (i) adversely
affect the validity, enforceability or scope of any of the Patent Rights, (ii)
give rise to liability of PFIZER or its Affiliates, (iii) admit
non-infringement of any Patent Rights, or (iv) otherwise impair PFIZER’s rights
in any Licensed Technology or this Agreement.
	 
	 	(b)	 	Subject to subsection (c) hereof, if LICENSEE does not obtain
agreement from the alleged infringer to desist or fails to initiate an
infringement action: (i) within [**] days following LICENSEE’s receipt of
notice of the alleged infringement, or (ii) no later than [**] days before the
expiration date for filing such action, whichever comes first, PFIZER shall
have the right, at its sole discretion, to control such enforcement of the
Licensed Technology at its sole expense.
	 
	 	(c)	 	In the case of a Paragraph IV Certification, the deadline for
LICENSEE to file an action before PFIZER can exercise the enforcements right in
subsection (b) hereof is [**] days before the expiration date for filing such
action, unless LICENSEE has notified PFIZER in writing at least [**] days
before the expiration date for filing such action that LICENSEE does not intend
to file an action with respect to such Paragraph IV Certification. “Paragraph
IV Certification” means any certification filed pursuant to 21 U.S.C.
§355(b)(2)(A)(iv) or 355(j)(2)(A)(vii)(IV), or any notice under any future
analogous provisions of U.S. law applicable to biologics (or any amendment or
successor statute thereto), or any comparable law under any other jurisdiction.

8.2.2. Assistance. At the request and sole cost and expense of the Party
controlling a Third Party Infringement, the other Party and its Affiliates
shall provide reasonable assistance in connection therewith (including by
joining any such action). The non-controlling Party shall have the right, at
its own expense, to be represented in any such action in which it is a party by
independent counsel of its own choice.

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	 	8.2.3.	 	Recoveries.

	 	(a)	 	Any recoveries resulting from an action relating to a claim of
Third Party Infringement shall first be applied against payment of the
non-prosecuting Party’s costs and expenses incurred in connection therewith,
and then be applied against payment of the prosecuting Party’s costs and
expenses.
	 
	 	(b)	 	For any action instituted by LICENSEE under 8.2.1(a), any
remaining recoveries shall be retained by (or if received by PFIZER, paid to)
LICENSEE; provided however, PFIZER shall be entitled to a
Royalty on such remaining recoveries in accordance with Section 5.1.3 as if the
amount of such remaining recoveries were Net Sales of LICENSEE in the Calendar
Year in which the recoveries were received by LICENSEE; provided, however,
that, if LICENSEE fails to institute an action or proceeding and PFIZER
exercise its right to prosecute such infringement pursuant to Section 8.2.1(b),
any remaining recoveries shall be retained by (or if received by LICENSEE, paid
to) PFIZER.

	9.	CONFIDENTIALITY

	 	9.1.	 	Definition. “Confidential Information” means the terms and provisions of this
Agreement (for which each Party shall be deemed to be the disclosing Party,
notwithstanding Section 9.3.1) and other proprietary information and data of a
financial, commercial, medical, scientific or technical nature that the disclosing
Party or any of its Affiliates has supplied or otherwise made available to the other
Party or its Affiliates, which are: (a) disclosed in writing or (b) if disclosed in a
form other than in writing, then declared to be confidential at the time of disclosure,
and summarized in writing and provided to the receiving Party within [**] days after
disclosure. Notwithstanding the foregoing and Section 9.3.1, all Know-How shall be
considered LICENSEE’s and PFIZER’s Confidential Information, provided,
however, that Know-How not solely applicable to the Use of ETC-216 shall be
considered the Confidential Information of PFIZER.
	 
	 	9.2.	 	Obligations. The receiving Party will protect all Confidential Information of
the disclosing Party against unauthorized disclosure to Third Parties with the same
degree of care as the receiving Party uses for its own similar information, but in no
event less than a reasonable degree of care. The receiving Party may disclose the
Confidential Information of the disclosing Party to its Affiliates, and their
respective actual and bona fide potential directors, officers, employees,
subcontractors, sublicensees, consultants, attorneys, accountants, banks, lenders,
acquirors and investors (collectively, “Recipients”) who have a need-to-know such
information (a) for purposes related to this Agreement; (b) in connection with a
potential merger, acquisition or reorganization; or (c) as a part of due diligence
investigations related to the receiving Party, provided that the receiving Party shall
hold such Recipients to written obligations of confidentiality with terms and
conditions at least as restrictive as those set forth in this Agreement, and provided,
further, that LICENSEE may not disclose any Know-How relating to the manufacturing of
ETC-216 pursuant to subclauses (b) and (c) hereof, except to a Recipient (A) with whom
LICENSEE has

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	 	 	 	executed a non-binding term sheet and with whom LICENSEE expects in good faith to
consummate a transaction, or (B) with whom LICENSEE has executed a binding
agreement. The receiving Party shall only use the disclosing Party’s Confidential
Information to fulfill its obligations and exercise its rights under this Agreement.
	 
	 	9.3.	 	Exceptions.

9.3.1. The obligations under this Section 9 shall not apply to any information
to the extent the receiving Party can demonstrate by competent evidence that
such information:

	 	(a)	 	is (at the time of disclosure) or becomes (after the time of
disclosure) known to the public or part of the public domain through no breach
of this Agreement by the receiving Party or any Recipients to whom it disclosed
such information;
	 
	 	(b)	 	was known to, or was otherwise in the possession of, the
receiving Party prior to the time of disclosure by the disclosing Party;
	 
	 	(c)	 	is disclosed to the receiving Party on a non-confidential basis
by a Third Party who is entitled to disclose it without breaching any
confidentiality obligation to the disclosing Party; or
	 
	 	(d)	 	is independently developed by or on behalf of the receiving
Party or any of its Affiliates, as evidenced by its written records, without
use or access to the Confidential Information.

9.3.2. The restrictions set forth in this Section 9 shall not apply to any of
the disclosing Party’s Confidential Information that the receiving Party is
required to disclose under Applicable Laws, pursuant to a court order or other
governmental order or request, or that is necessary to disclose to defend or
prosecute litigation relating to the Products or this Agreement, provided that
the receiving Party: (a) provides the disclosing Party with prompt notice of
such disclosure requirement if legally permitted, (b) if legally permitted,
affords the disclosing Party an opportunity to oppose or limit, or secure
confidential treatment for, such required disclosure, and (c) if the disclosing
Party is unsuccessful in its efforts pursuant to subsection (b), discloses only
that portion of the disclosing Party’s Confidential Information that the
receiving Party is legally required to disclose as advised by the receiving
Party’s legal counsel.

9.3.3. A receiving Party may use and disclose Confidential Information of the
disclosing Party in order to seek or obtain patent rights or to Regulatory
Authorities in order to seek or obtain approval to conduct clinical trials or
to gain or maintain Regulatory Approval with respect to a Product;
provided, that such disclosure may be made only to the extent
reasonably necessary to seek or obtain such patent rights or approvals.

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9.3.4. In the event that PFIZER wishes to assign, pledge or otherwise transfer
its rights to receive some or all of the Milestone Payments and Royalties
payable hereunder, PFIZER may disclose to a Third Party Confidential
Information of LICENSEE in connection with, and which is directly relevant to,
any such proposed assignment, provided that PFIZER shall hold such Third
Parties to written obligations of confidentiality with terms and conditions at
least as restrictive as those set forth in this Agreement.

9.3.5. Upon execution of this Agreement, the Parties shall jointly issue a
press release announcing the execution of this Agreement, substantially in the
form of Schedule D. Thereafter, LICENSEE may issue press releases with
respect to this Agreement and the activities and results hereunder consistent
with its own internal policies, provided, however, that LICENSEE shall not
issue any press release that names PFIZER or any of its Affiliates without
PFIZER’s prior written consent, which cannot be unreasonably withheld or
delayed, or unless in accordance with Section 9.3.6, mutatis mutandis.

9.3.6. Each Party may disclose the terms of this Agreement to the extent such
Party is advised by counsel that such disclosure is required by Applicable Law
(including by rules or regulations of the United States Securities and Exchange
Commission (“SEC”), any other relevant securities commission in any country,
any securities exchange or NASDAQ); provided, that, (a) prior to such
disclosure, to the extent permitted by Applicable Law or such rules or
regulations, the disclosing Party promptly notifies the other Party of such
requirement and the disclosing Party furnishes only those terms of this
Agreement that the disclosing Party is legally required to furnish, and (b)
specifically with respect to a filing of this Agreement pursuant to the rules
or regulations of the SEC, any other securities commission, any securities
exchange or NASDAQ, the disclosing Party shall request, and use commercially
reasonable efforts to obtain, confidential treatment of terms permitted to be
redacted from the forms of such agreements so filed under the applicable rules
and regulations of the SEC, such securities commission, any securities exchange
or NASDAQ, as applicable. Each Party shall give the other Party a reasonable
opportunity to review those portions of all filings with the SEC (or any other
relevant securities commission in any country, any securities exchange or
NASDAQ) describing the terms of this Agreement (including any filings of this
Agreement) prior to submission of such filings, and shall give due
consideration to any reasonable and timely comments by the non-filing Party
relating to such filing, including the provisions of this Agreement for which
confidential treatment should be sought; provided that each Party will
ultimately retain control over what information that Party discloses to their
relevant securities commission or exchange.

9.3.7. Subject to entering into customary agreements of confidentiality with
each Brewer/Matin Party, LICENSEE may disclose to any Brewer/Matin Party (a) a
copy of this Agreement in which the milestone payment amounts, royalty rates,
Sublicense Fee rate, the schedules hereto, and any other information which
LICENSEE elects to redact, have been redacted, (b) any amendment or

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termination of this Agreement (except to the extent that any such amendment
affects the milestone payment amounts, royalty rates, Sublicense Fee rate or
the schedules hereto), (c) each report LICENSEE provides to PFIZER pursuant to
the third sentence of Section 4.1 of this Agreement, (d) the royalty reports
provided hereunder (with any information relating to the calculation of
Royalties payable to PFIZER and any other information not directly related to
the calculation of Net Sales redacted therefrom in LICENSEE’s discretion), (e)
any audit requests delivered to LICENSEE by PFIZER and any audit reports
provided to PFIZER (with any information relating to the calculation of
Royalties payable to PFIZER and any other information not directly related to
the calculation of Net Sales redacted from such audit requests and audit
reports in LICENSEE’s discretion), in each case pursuant to this Agreement, and
(f) that Section 5.1.3 of this Agreement has become operative, or ceased to be
operative, with respect to any Product in any country in the Territory.
LICENSEE may disclose to the attorney for the Brewer/Matin Parties an
unredacted copy of this Agreement solely for purposes of confirming the extent
of such redactions. “Brewer/Matin Party” means each of (i) Washington
Cardiovascular Associates, LLC, a Maryland limited liability company, (ii) HDLT
LLC, a Delaware limited liability company, (iii) H. Bryan Brewer (iv) Silvia
Santamarina-Fojo, (v) Michael Matin, and (vi) any successor, assign or heir of
the foregoing.

	 	9.4.	 	Right to Injunctive Relief. The Parties agree that breaches of this Section 9
may cause irreparable harm to the non-breaching Party and shall entitle the
non-breaching Party, in addition to any other remedies available to it (subject to the
terms of this Agreement), the right to seek injunctive relief enjoining such action.
	 
	 	9.5.	 	Ongoing Obligation for Confidentiality. Upon expiration or termination of this
Agreement, the receiving Party shall, and shall cause its Recipients to, destroy or
return (as requested by the disclosing Party) any Confidential Information of the
disclosing Party, except for one copy which may be retained in its confidential files
for archive purposes.

	10.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS

	 	10.1.	 	Representations and Warranties by Each Party. Each Party represents and
warrants to the other Party as of the Effective Date that:

	 	(a)	 	it is a corporation duly organized, validly existing, and in
good standing under the laws of its jurisdiction of formation;
	 
	 	(b)	 	it has full corporate power and authority to execute, deliver,
and perform this Agreement, and has taken all corporate action required by
Applicable Law and its organizational documents to authorize the execution and
delivery of this Agreement and the consummation of the transactions
contemplated by this Agreement;

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	 	(c)	 	this Agreement constitutes a valid and binding agreement
enforceable against it in accordance with its terms (except as the
enforceability thereof may be limited by bankruptcy, bank moratorium or similar
laws affecting creditors’ rights generally and laws restricting the
availability of equitable remedies and may be subject to general principles of
equity whether or not such enforceability is considered in a proceeding at law
or in equity);
	 
	 	(d)	 	all consents, approvals and authorizations from all
governmental authorities or other Third Parties required to be obtained by such
Party in connection with the execution and delivery of this Agreement have been
obtained; and
	 
	 	(e)	 	the execution and delivery of this Agreement and all other
instruments and documents required to be executed pursuant to this Agreement,
and the consummation of the transactions contemplated hereby do not and shall
not: (i) conflict with or result in a breach of any provision of its
organizational documents, (ii) result in a breach of any agreement to which it
is a party that would impair the performance of its obligations hereunder; or
(iii) violate any Applicable Law.

	 	10.2.	 	Representations and Warranties by PFIZER. Subject to any intellectual
property rights owned by Danisco and licensed to LICENSEE pursuant to the Danisco
Agreement (of which PFIZER makes no representations or warranties), PFIZER represents
and warrants to LICENSEE as of the Effective Date that:

	 	10.2.1.	 	to the Knowledge of PFIZER, the Use of ETC-216 in the Field does not
infringe any Intellectual Property Rights of any Third Party;
	 
	 	10.2.2.	 	the Know-How and Patent Rights (except as noted with respect to the Patent
Rights on Schedule B2) comprise all patents, patent applications and
know-how owned or Controlled by PFIZER or its Affiliates that are necessary or
optimal for LICENSEE to Use ETC-216;
	 
	 	10.2.3.	 	to its Knowledge, there is no claim pending or threatened against PFIZER or
its Affiliates alleging that the Use of ETC-216 in the Field within the
Territory infringes, misappropriates or otherwise violates the Intellectual
Property Rights of a Third Party;
	 
	 	10.2.4.	 	to its Knowledge, PFIZER has not received written notice from a Third Party
asserting or alleging that the Use of ETC-216 on or before the Effective Date
infringed or misappropriated any Intellectual Property Rights of such Third
Party;
	 
	 	10.2.5.	 	there is no claim pending, or to the Knowledge of PFIZER, threatened, by
PFIZER alleging that a Third Party is or was infringing, misappropriating or
otherwise violating the Licensed Technology (except as noted with respect to
the Patent Rights on Schedule B2) in the Field in any country within
the Territory;

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	 	10.2.6.	 	to its Knowledge, and except as noted with respect to the Patent Rights on
Schedule B2, all issued patents included in the Patent Rights are valid
and enforceable, and no Third Party has challenged the extent, validity or
enforceability of any of the Patent Rights;
	 
	 	10.2.7.	 	to its Knowledge, PFIZER has complied with all Applicable Laws, including
any disclosure requirements, in connection with the filing, prosecution and
maintenance of the Patent Rights (except as noted with respect to the Patent
Rights on Schedule B2);
	 
	 	10.2.8.	 	PFIZER is able to grant the licenses to LICENSEE as purported to be granted
pursuant to this Agreement, free and clear of any rights of any Third Party.
All Patent Rights (except as noted with respect to the Patent Rights on
Schedule B2) have been properly assigned to PFIZER and all assignment
documents with respect to the Patent Rights (except as noted with respect to
the Patent Rights on Schedule B2) have been properly executed and
recorded in the relevant U.S. and foreign patent offices;
	 
	 	10.2.9.	 	to PFIZER’s Knowledge, each Regulatory Filing for ETC-216 submitted or filed
by PFIZER or any of its Affiliates was true, complete and accurate in all
material respects at the time of submission or filing and timely filed;
	 
	 	10.2.10.	 	to its Knowledge, PFIZER and its Affiliates have not received any written
notice that indicates that any of the Regulatory Filings submitted or filed for
ETC-216 are not currently in good standing with the relevant Regulatory
Authorities or that any “clinical hold” or similar regulatory action is in
effect, provided, however, that PFIZER has received a communication from the
FDA dated August 15, 2007, stating that the FDA would anticipate asking PFIZER
to comprehensively summarize all pertinent in-vitro, pre-clinical, and clinical
data both in a submission and at a face to face meeting prior to or at the time
of submission of any new clinical protocols for the ETC-216 program;
	 
	 	10.2.11.	 	to its Knowledge, (a) PFIZER and its Affiliates have complied in all
material respects with all Applicable Laws with respect to the Use of ETC-216
prior to the Effective Date, (b) neither PFIZER nor any employee of PFIZER or
its Affiliates involved in the Development of ETC-216 has been debarred under
Subsection (a) or (b) of Section 306 of the Federal Food, Drug and Cosmetic Act
(21 U.S.C. 335a), and (c) no employee of PFIZER or its Affiliates involved in
the Development of ETC-216 has been placed on any of the FDA clinical
investigator enforcement lists (including the (1) Disqualified/Totally
Restricted List, (2) Restricted List and (3) Adequate Assurances List);
	 
	 	10.2.12.	 	PFIZER has disclosed to LICENSEE the data (including pre-clinical and
clinical data and results), correspondence and information in the possession or
control of PFIZER or its Affiliates relevant to the

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	 	 	 	Development and Commercialization of ETC-216 that LICENSEE has requested;

	 	10.2.13.	 	there are no agreements to which PFIZER or any of its Affiliates is a party
pursuant to which PFIZER or any of its Affiliates has a license or holds an
immunity from suit, with respect to patents which (i) are granted or
registered, or to the Knowledge of PFIZER, applied for or pending, and (ii) but
for PFIZER’s or its Affiliates’ rights under such agreement, could be asserted
by a Third Party to be infringed by the Use of ETC-216 as a monotherapy.
PFIZER has previously delivered or made available to LICENSEE the written
agreements between PFIZER or its Affiliates, on the one hand, and any Third
Parties, on the other hand, necessary for the manufacture of ETC-216 for sale
in the Field in the Territory; provided, that LICENSEE acknowledges and agrees
that the Danisco Agreement has only been made available in redacted form, and
provided, further, that the foregoing is subject to the valid
execution and delivery of the Danisco Agreement by LICENSEE, PFIZER and Danisco
on or before the Effective Date hereof;
	 
	 	10.2.14.	 	certain provisions (Section 3.2, Section 4 and Section 7.2 in part of the
LICENSE AGREEMENT (as defined in the Danisco Agreement) and Sections 4 and 5 of
the FIRST AMENDMENT (as defined in the Danisco Agreement) have been redacted
because they are specific only to PFIZER and are not relevant to LICENSEE’s
rights and assumed obligations under the Danisco Agreement, or they contain
confidential financial or other business information of PFIZER and Danisco; and
	 
	 	10.2.15.	 	all Transferred Inventory (a) was manufactured in accordance with (i) cGMP
and (ii) the specifications set therefor by PFIZER and provided to LICENSEE,
(b) conforms to such specifications, (c) shall, at the time of delivery to
LICENSEE, not contain any material that would cause the Transferred Inventory
to be adulterated or misbranded under Applicable Laws.

	 	10.3.	 	Representations and Warranties by LICENSEE. LICENSEE represents and warrants
to PFIZER that it shall comply in all material respects with all Applicable Law with
respect to the performance of its obligations hereunder. Without limiting the
generality of the foregoing, (i) neither LICENSEE nor, to the actual knowledge of
LICENSEE, any employee, agent or subcontractor of LICENSEE involved or to be involved
in the Development of the Products has been debarred under Subsection (a) or (b) of
Section 306 of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 335a); (ii) no Person
who is known by LICENSEE to have been debarred under Subsection (a) or (b) of Section
306 of said Act will be employed by LICENSEE in the performance of any activities
hereunder; and (iii) to the actual knowledge of LICENSEE, no Person on any of the FDA
clinical investigator enforcement lists (including the (1) Disqualified/Totally
Restricted List, (2) Restricted List and (3) Adequate Assurances List) will participate
in the performance of any activities hereunder. LICENSEE further represents and
warrants to PFIZER

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	 	 	 	that LICENSEE has the financial resources to perform its obligations under this
Agreement.

	 	10.4.	 	No Other Warranties. EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 10, (a)
NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
TITLE, NON-INFRINGEMENT, VALIDITY, ENFORCEABILITY, MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE; AND (b) ANY INFORMATION, DOCUMENTATION AND MATERIALS PROVIDED BY
PFIZER OR ITS AFFILIATES IS MADE AVAILABLE ON AN “AS IS” BASIS WITHOUT WARRANTY WITH
RESPECT TO ACCURACY, COMPLETENESS, COMPLIANCE WITH REGULATORY STANDARDS OR REGULATIONS
OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND OF WARRANTY WHETHER EXPRESS OR
IMPLIED. FOR CLARITY, PFIZER MAKES NO WARRANTIES, EITHER EXPRESS, IMPLIED, STATUTORY
OR OTHERWISE, REGARDING THE DANISCO IP OR ANY OTHER RIGHTS ACQUIRED BY LICENSEE UNDER
THE DANISCO AGREEMENT.
	 
	 	10.5.	 	Tangible Materials. LICENSEE acknowledges and agrees that the Tangible
Materials are experimental in nature and may have unknown characteristics. LICENSEE
shall use prudence and reasonable care in the use, handling, storage, transportation,
disposition, and containment of the Tangible Materials. PFIZER makes no
representations or warranties, and assumes no liability, for LICENSEE’s use of the
Tangible Materials.

	11.	 	INDEMNIFICATION

	 	11.1.	 	Indemnification by LICENSEE. LICENSEE agrees to indemnify, hold harmless and
defend PFIZER and its Affiliates, and their respective officers, directors, employees,
contractors, agents and assigns (collectively, “Pfizer Indemnitees”), from and against
any Claims to the extent arising or resulting from: (a) the Development of a Product by
LICENSEE, its Affiliates, subcontractors or sublicensees, (b) the Commercialization of
a Product by LICENSEE, its Affiliates, subcontractors or sublicensees, (c) the
negligence, recklessness or wrongful intentional acts or omissions of LICENSEE, its
Affiliates, subcontractors or sublicensees under this Agreement, (d) breach by LICENSEE
of any representation, warranty or covenant as set forth in this Agreement, (e) breach
by LICENSEE of the scope of the license set forth in Section 2.1, or (f) any claim by a
Brewer/Matin Party resulting from this Agreement or any agreement or arrangement
between LICENSEE and one or more Brewer/Matin Party(ies). As used in this Section 11,
“Claims” means collectively, any and all Third Party demands, claims, actions and
proceedings (whether criminal or civil, in contract, tort or otherwise) for losses,
damages, liabilities, costs and expenses (including reasonable attorneys’ fees).
Notwithstanding the foregoing, this Section 11.1 does not limit or negate the
representations and warranties made by PFIZER under this Agreement.

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	 	11.2.	 	Indemnification by PFIZER. PFIZER agrees to indemnify, hold harmless and
defend LICENSEE and its Affiliates, and their respective officers, directors,
employees, contractors, agents and assigns (collectively, “Licensee Indemnitees”), from
and against any Claims to the extent arising or resulting from: (a) the Development of
a Product, on or before the Effective Date, by or on behalf of PFIZER, its Affiliates,
subcontractors, assignors or licensees, (b) the negligence, recklessness or wrongful
intentional acts or omissions of PFIZER, its Affiliates, subcontractors, assignors or
licensees, (c) breach by PFIZER of any representation, warranty or covenant as set
forth in this Agreement, or (d) breach by PFIZER of the exclusive license granted to
LICENSEE pursuant to Section 2.1.
	 
	 	11.3.	 	Indemnification Procedure. In connection with any Claim for which a Pfizer
Indemnitee or a Licensee Indemnitee seeks indemnification from LICENSEE or PFIZER,
respectively, (the “Indemnitor”) pursuant to this Agreement, PFIZER or LICENSEE,
respectively, shall: (a) give the Indemnitor prompt written notice of the Claim;
provided, however, that failure to provide such notice shall not relieve the Indemnitor
from its liability or obligation hereunder, except to the extent of any material
prejudice as a direct result of such failure; (b) cooperate with the Indemnitor, at the
Indemnitor’s expense, in connection with the defense and settlement of the Claim; and
(c) permit the Indemnitor to control the defense and settlement of the Claim; provided,
however, that the Indemnitor may not settle the Claim without the prior written consent
(which shall not be unreasonably withheld or delayed) of PFIZER or LICENSEE,
respectively, in the event such settlement imposes any liability or obligation on the
relevant Indemnitee or requires payments by the relevant Indemnitee. Further, PFIZER
or LICENSEE, respectively, shall have the right to participate (but not control) and be
represented in any suit or action by advisory counsel of its selection and at its own
expense.

	12.	 	LIMITATION OF LIABILITY

	 	12.1.	 	Consequential Damages Waiver. EXCEPT FOR A BREACH OF SECTION 9 AND EXCEPT FOR
ANY INDEMNIFICATION OBLIGATIONS ARISING UNDER SECTION 11, NEITHER PARTY SHALL BE LIABLE
FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING
DAMAGES FOR LOST PROFITS OR LOST REVENUES, REGARDLESS OF WHETHER IT HAS BEEN INFORMED
OF THE POSSIBILITY OR LIKELIHOOD OF SUCH DAMAGES OR THE TYPE OF CLAIM, CONTRACT OR TORT
(INCLUDING NEGLIGENCE).

	13.	 	TERM; TERMINATION

	 	13.1.	 	Term. The term of this Agreement shall commence as of the Effective Date and
shall expire upon the last-to-expire Royalty Term. Upon expiration of the Royalty Term
with respect to a Product and a country, the licenses granted to LICENSEE under this
Agreement shall convert to perpetual, exclusive, fully paid-up, non-royalty-bearing
licenses with respect to such Product in such country.

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	 	13.2.	 	Termination for Cause. Each Party shall have the right, without prejudice to
any other remedies available to it at law or in equity, to terminate this Agreement in
the event the other Party breaches any of its material obligations hereunder and fails
to cure such breach within [**] days of receiving notice thereof; provided,
however, if such breach is capable of being cured, but cannot be cured within
such [**] day period, and the breaching Party initiates actions to cure such breach
within such period and thereafter diligently pursues such actions, the breaching Party
shall have such additional period as is reasonable to cure such breach, but in no event
will such additional period exceed [**] days, and provided, further,
that if such breach is solely related to LICENSEE’s failure to pay Milestone Payments
or Royalties on Net Sales pursuant to Section 5 hereof, and such breach is not cured
within [**] days after such notice, PFIZER shall have the right thereafter to terminate
this Agreement immediately by giving written notice to LICENSEE. All timeframes in
this Section 13.2 shall be tolled until the resolution pursuant to Article 16 of any
good faith dispute over the existence or nature of the breach, or over the adequacy of
the cure thereof. Any termination by a Party under this Section 13.2 shall be without
prejudice to any damages or other legal or equitable remedies to which it may be
entitled from the other Party.
	 
	 	13.3.	 	Termination for a Bankruptcy Event. To the extent permitted by Applicable
Law, each Party shall have the right to terminate this Agreement upon written notice to
the other Party in the event of a Bankruptcy Event with respect to the other Party.
“Bankruptcy Event” means the occurrence of any of the following: (a) the institution of
any bankruptcy, receivership, insolvency, reorganization or other similar proceedings
by or against a Party under any bankruptcy, insolvency, or other similar law now or
hereinafter in effect, including any section or chapter of the United States Bankruptcy
Code, as amended or under any similar laws or statutes of the United States or any
state thereof (the “Bankruptcy Code”), where in the case of involuntary proceedings
such proceedings have not been dismissed or discharged within one hundred (120) days
after they are instituted, (b) the making of an assignment for the benefit of creditors
as to all or substantially all of a Party’s assets, or (c) appointment of a receiver,
custodian, trustee, liquidator, assignee or other similar official for all or
substantially all of a Party’s assets.
	 
	 	13.4.	 	Termination by PFIZER. If LICENSEE provides written notice to PFIZER of its
intent to permanently abandon the Development, manufacture and Commercialization, as
applicable, of the Products in the Territory, or if LICENSEE otherwise ceases to use
Commercially Reasonable Efforts for a period exceeding twelve (12) months with respect
to the Development, manufacture and Commercialization, as applicable, of at least one
Product in the Territory, PFIZER may, as its sole remedy, terminate this Agreement at
any time after the Effective Date by giving written notice to LICENSEE thereof, subject
to the cure periods and tolling provisions set forth in Section 13.2.
	 
	 	13.5.	 	Termination by LICENSEE For Convenience. LICENSEE shall have the right to
terminate this Agreement, in its entirety or on a Product-by-Product basis, for
convenience upon ninety (90) days’ prior written notice to PFIZER.

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	 	13.6.	 	Effect of Termination or Expiration.

13.6.1. Upon termination or expiration of this Agreement, LICENSEE shall pay to
PFIZER all amounts due to PFIZER with respect to the terminated Product(s) as
of the effective date of termination or expiration within thirty (30) days
following the effective date of termination or expiration.

13.6.2. Upon termination of this Agreement after a First Commercial Sale,
LICENSEE shall have the right to sell its remaining inventory of any terminated
Product(s) following the termination of this Agreement so long as LICENSEE has
fully paid, and continues to fully pay when due, any and all Royalties owed to
PFIZER, and LICENSEE otherwise is not in material breach of this Agreement.

13.6.3. Upon termination of this Agreement, all licenses granted by PFIZER to
LICENSEE with respect to the terminated Product(s) shall terminate, except for
those licenses described in Section 13.1 that have already vested;
provided, however, that PFIZER shall assume any related
sublicenses granted by LICENSEE hereunder, and such sublicenses shall survive
such termination, but PFIZER shall not be obligated to fulfill any obligations
to such sublicensees beyond those obligations required of PFIZER if this
Agreement had not terminated.

13.6.4. With the exception of termination of this Agreement by LICENSEE
pursuant to Section 2.1.3, 13.2, 13.3 or 17.4, upon termination of this
Agreement:

	 	(a)	 	LICENSEE hereby grants to PFIZER an exclusive, fully paid-up,
royalty-free, worldwide, transferable, perpetual and irrevocable license, with
the right to sublicense, under any Intellectual Property Rights (other than
Trademarks, for which Section 13.6.4(c) applies) Controlled by LICENSEE that
arose from the Development or Commercialization of the terminated Product by
LICENSEE under this Agreement, solely to Use the terminated Product in the
Field in the Territory.
	 
	 	(b)	 	To the extent permitted by applicable Regulatory Authorities,
LICENSEE shall: (i) transfer to PFIZER all Regulatory Filings (including drug
master files) and Regulatory Approvals held by LICENSEE with respect to the
terminated Product, and (ii) to the extent subsection (i) is not permitted by
the applicable Regulatory Authority, permit PFIZER to cross-reference and rely
upon any Regulatory Approvals and Regulatory Filings filed by LICENSEE with
respect to the terminated Product.
	 
	 	(c)	 	LICENSEE hereby grants to PFIZER a non-exclusive, fully
paid-up, royalty-free, worldwide, transferable, sublicensable, perpetual and
irrevocable license to use the Trademarks Controlled by LICENSEE solely
identifying the terminated Product (but, for the sake of clarity, excluding any
Trademark or part thereof that uses the company name of LICENSEE or any
Affiliate of

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	 	 	 	LICENSEE, except to the extent incorporated into the terminated Product’s
name, or required by a Regulatory Authority to be displayed to indicate
manufacturing source or other identifying information with respect to the
inventory or Inventory described in clause (d) during the Migration Period)
for the purpose of manufacturing, marketing, distributing and selling the
terminated Product. As used herein. “Trademarks” means all registered and
unregistered trademarks, service marks, trade dress, trade names, logos,
insignias, domain names, symbols, designs, and combinations thereof.

	 	(d)	 	Upon PFIZER’s request with respect to any clinical trial then
underway with respect to the terminated Product, LICENSEE shall continue such
trial for a mutually agreed upon period after termination of this Agreement,
which period, unless otherwise agreed to by the Parties, shall not exceed [**]
days after the date on which notice of termination of this Agreement was issued
(“Migration Period”), and PFIZER shall bear all costs arising with respect
thereto after the effective date of termination of this Agreement. During the
Migration Period, LICENSEE shall provide such knowledge transfer and other
training to PFIZER or its Affiliates or a Third Party that is designated in
writing by PFIZER (“Designated Affiliate/Third Party”) as reasonably necessary
for PFIZER or the Designated Affiliate/Third Party to continue such activities.
In connection with such transfer, LICENSEE shall, at PFIZER’s option: (i)
transfer to PFIZER or the Designated Affiliate/Third Party the terminated
Product then in LICENSEE’s inventory at the cost paid or incurred by LICENSEE
to manufacture or acquire such Product, (ii) transfer to PFIZER or the
Designated Affiliate/Third Party all Inventory owned by LICENSEE at the cost
paid or incurred by LICENSEE to manufacture or acquire for such Inventory; and
(iii) to the extent solely related to such Product and assignable in accordance
with the terms of the relevant agreement, and subject to Section 13.6.3, assign
to PFIZER or the Designated Affiliate/Third Party any agreements with Third
Parties with respect to the Development or Commercialization of the terminated
Product. PFIZER shall reimburse LICENSEE for all reasonable, documented
out-of-pockets costs and expenses (but not LICENSEE’s internal costs or the
costs of packing and shipping such inventory or the Inventory) incurred in
connection therewith. As used herein, “Inventory” means all components and
works in process then held by LICENSEE with respect to the manufacture of the
terminated Product.

	 	13.7.	 	Survival. Expiration or termination of this Agreement shall not relieve the
Parties of any obligation accruing hereunder prior to such expiration or termination.
In addition, the provisions of Sections 2.3, 2.4, 2.5, 6.1, 7.1, 9, 10.4, 11, 12, 13.6,
13.7, 14, 15, 16, 17.1, 17.2, 17.3, 17.5, 17.6, 17.7, 17.8, 17.10, 17.11, 17.12, 17.13
and 17.14 shall survive expiration or termination of this Agreement.

	14.	 	TRADEMARKS.

	 	14.1.	 	Trademarks. Subject to PFIZER’s rights pursuant to Section 13.6.5(c) and each
Party’s rights pursuant to Section 9, neither Party (nor any of its Affiliates or
agents)

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	 	 	 	shall use the Trademarks of the other Party or its Affiliates in any press release,
publication or other form of promotional disclosure without the prior written
consent of the other Party in each instance.

	15.	 	LICENSEE INSURANCE

	 	15.1.	 	Insurance Requirements. LICENSEE will maintain during the term of this
Agreement and until the later of: (a) three (3) years after termination or expiration
of this Agreement, or (b) the date that all statutes of limitation covering claims or
suits that may be instituted for personal injury based on the sale or use of the
Products have expired, commercial general liability insurance from a minimum “A-” AM
Bests rated insurance company or through self-insurance, including contractual
liability and product liability or clinical trials, if applicable, with coverage limits
of not less than five million US dollars ($5,000,000) per occurrence and five million
US dollars ($5,000,000) in the aggregate. LICENSEE has the right to provide the total
limits required by any combination of primary and umbrella/excess coverage. The
minimum level of insurance set forth herein shall not be construed to create a limit on
LICENSEE’s liability hereunder. LICENSEE shall use reasonable efforts to ensure that
(y) such policies shall name PFIZER and its Affiliates as additional insured and
provide a waiver of subrogation in favor of PFIZER and its Affiliates, and (z) such
insurance policies shall be primary and non-contributing with respect to any other
similar insurance policies available to PFIZER or its Affiliates. Any deductibles for
such insurance shall be assumed by LICENSEE.
	 
	 	15.2.	 	Policy Notification. LICENSEE shall provide PFIZER with certified copies of
such policies or original certificates of insurance evidencing such insurance: (a)
prior to execution by both Parties of this Agreement, and (b) prior to expiration of
any one coverage. Such certificates shall provide that PFIZER shall be given at least
thirty (30) days (ten (10) days in the case of cancellation for non-payment of premium)
written notice prior to cancellation, termination or any change to restrict the
coverage or reduce the limits afforded.

	16.	 	DISPUTE RESOLUTION

	 	16.1.	 	General. The following procedures shall be used to resolve any dispute
arising out of or in connection with this Agreement:

16.1.1. Meeting. Promptly after the written request of either Party, each of
the Parties shall appoint a designated representative to meet in person or by
telephone to attempt in good faith to resolve any dispute. If the designated
representatives do not resolve the dispute within [**] days of such request,
then an executive officer of each Party shall meet in person or by telephone to
review and attempt to resolve the dispute in good faith. The executive officers
shall have [**] days to attempt to resolve the dispute.

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16.1.2. Arbitration.

	 	(a)	 	Any disputes that are not otherwise resolved by the Parties or
by mediation shall be submitted to binding arbitration with the office of the
American Arbitration Association in New York County, New York in accordance
with the then-prevailing commercial arbitration rules of the American
Arbitration Association. The American Arbitration Association shall appoint a
single arbitrator who is neutral to the Parties.
	 
	 	(b)	 	The arbitrator shall not be an officer or employee of either
Party. The cost of the arbitration, including the fees and expenses of the
arbitrator, will be shared equally by the Parties. The substantially
prevailing Party shall be entitled to recover from the losing Party the
substantially prevailing Party’s attorneys’ fees and costs. The arbitrator
shall have the right to apportion liability between the Parties, but will not
have the authority to award any damages or remedies not available under the
express terms of this Agreement. The arbitration award will be presented to
the Parties in writing, and upon the request of either Party, will include
findings of fact and, where appropriate, conclusions of law. The award may be
confirmed and enforced in any court of competent jurisdiction.
	 
	 	(c)	 	Either Party may seek injunctive relief from any court of
competent jurisdiction in order to enforce compliance with the provisions of
this Section 16.1.2.

	 	16.2.	 	THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO TRIAL BY JURY.

	17.	 	GENERAL PROVISIONS

	 	17.1.	 	Assignment. Neither Party may assign its rights and obligations under this
Agreement without the other Party’s prior written consent, except that: (a) PFIZER may
assign to a Third Party its rights to receive some or all of the fees payable
hereunder, (b) each Party may assign its rights and obligations under this Agreement or
any part hereof to one or more of its Affiliates without the consent of the other
Party; and (c) either Party may assign this Agreement in its entirety to a successor to
all or substantially all of its business and assets to which this Agreement relates.
The assigning Party shall provide the other Party with prompt written notice of any
such assignment. Any permitted assignee pursuant to clauses (b) and (c) above shall
assume all obligations of its assignor under this Agreement, and no permitted
assignment shall relieve the assignor of liability for its obligations hereunder. Any
attempted assignment in contravention of the foregoing shall be void.
	 
	 	17.2.	 	Severability. Should one or more of the provisions of this Agreement become
void or unenforceable as a matter of law, then such provision will be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of
this Agreement, and the Parties agree to substitute a valid and enforceable provision

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	 	 	 	therefor which, as nearly as possible, achieves the desired economic effect and
mutual understanding of the Parties under this Agreement.

	 	17.3.	 	Governing Law; Exclusive Jurisdiction.

17.3.1. This Agreement shall be governed by and construed under the laws in
effect in the State of New York, US, without giving effect to any conflicts of
laws provision thereof or of any other jurisdiction that would produce a
contrary result, except that issues subject to the arbitration clause and any
arbitration hereunder shall be governed by the applicable commercial
arbitration rules and regulations.

17.3.2. The federal and state courts of New York shall have exclusive
jurisdiction over any action not resolved pursuant to Section 16.1 brought to
enforce this Agreement, and each of the Parties hereto irrevocably: (a) submits
to such exclusive jurisdiction for such purpose; (b) waives any objection which
it may have at any time to the laying of venue of any proceedings brought in
such courts; (c) waives any claim that such proceedings have been brought in an
inconvenient forum, and (d) further waives the right to object with respect to
such proceedings that any such court does no have jurisdiction over such Party.
Notwithstanding the foregoing, application may be made to any court of
competent jurisdiction with respect to (i) the enforcement of any judgment or
award or (ii) a Party seeking injunctive or other equitable relief in
connection with this Agreement.

	 	17.4.	 	Force Majeure. Except with respect to delays or nonperformance caused by the
negligent or intentional act or omission of a Party, any delay or nonperformance by
such Party (other than payment obligations under this Agreement) will not be considered
a breach of this Agreement to the extent such delay or nonperformance is caused by acts
of God, natural disasters, acts of the government or civil or military authority, fire,
floods, epidemics, quarantine, energy crises, war or riots or other cause outside of
the reasonable control of such Party (each, a “Force Majeure Event”), provided that the Party affected by such Force Majeure Event will promptly begin
or resume performance as soon as reasonably practicable after the event has abated. If
the Force Majeure Event prevents a Party from performing any of its material
obligations under this Agreement for one hundred eighty (180) days or more, then the
other Party may terminate this Agreement immediately upon written notice to the
non-performing Party.
	 
	 	17.5.	 	Waivers and Amendments. The failure of any Party to assert a right hereunder
or to insist upon compliance with any term or condition of this Agreement shall not
constitute a waiver of that right or excuse a similar subsequent failure to perform any
such term or condition by the other Party. No waiver shall be effective unless it has
been given in writing and signed by the Party giving such waiver. No provision of this
Agreement may be amended or modified other than by a written document signed by
authorized representatives of each Party.

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	 	17.6.	 	Relationship of the Parties. Nothing contained in this Agreement shall be
deemed to constitute a partnership, joint venture, or legal entity of any type between
PFIZER and LICENSEE, or to constitute one Party as the agent of the other. Moreover,
each Party agrees not to construe this Agreement, or any of the transactions
contemplated hereby, as a partnership for any tax purposes. Each Party shall act
solely as an independent contractor, and nothing in this Agreement shall be construed
to give any Party the power or authority to act for, bind, or commit the other Party.
	 
	 	17.7.	 	Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Parties hereto and their respective successors and permitted assigns.
	 
	 	17.8.	 	Notices. All notices, consents, waivers, and other communications under this
Agreement must be in writing and will be deemed to have been duly given when: (a)
delivered by hand (with written confirmation of receipt), (b) sent by fax (with written
confirmation of receipt), provided that a copy is sent by an internationally recognized
overnight delivery service (receipt requested), or (c) when received by the addressee,
if sent by an internationally recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses and fax numbers set forth below
(or to such other addresses and fax numbers as a Party may designate by written notice
pursuant to this Section 17.8):

	 	 	 	 	 
	 

	 	If to PFIZER:	 	 
	 

	 	 	 	Pfizer Inc.
	 

	 	 	 	235 East 42nd Street
	 

	 	 	 	New York, NY 10017
	 

	 	 	 	Fax: 646-348-8157
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	If to LICENSEE:	 	 
	 
	 	 	 	 
	 

	 	 	 	The Medicines Company
	 

	 	 	 	8 Sylvan Way
	 

	 	 	 	Parsippany, NJ 07054
	 

	 	 	 	Fax: 862-207-6062
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	WilmerHale
	 

	 	 	 	60 State Street
	 

	 	 	 	Boston, MA 02109
	 

	 	 	 	Fax: 1-617-526-5000
	 

	 	 	 	Attention: David E. Redlick, Esq.

	 	17.9.	 	Further Assurances. LICENSEE and PFIZER hereby covenant and agree, without
the necessity of any further consideration, to execute, acknowledge and

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	 	 	 	deliver any and all such other documents and take any such other action as may be
reasonably necessary or appropriate to carry out the intent and purposes of this
Agreement.

	 	17.10.	 	No Third Party Beneficiary Rights. This Agreement is not intended to and shall not
be construed to give any Third Party (other than the Pfizer Indemnitees and Licensee
Indemnitees) any interest or rights (including any third party beneficiary rights) with
respect to or in connection with any agreement or provision contained herein or
contemplated hereby.
	 
	 	17.11.	 	Entire Agreement; Confidentiality Agreement. This Agreement, which includes its
Schedules, sets forth the entire agreement and understanding of the Parties as to the
subject matter hereof and supersedes all proposals, oral or written, and all other
prior communications between the Parties with respect to such subject matter, including
the Confidential Disclosure Agreement between LICENSEE and PFIZER dated as of July 7,
2009 (the “CDA”). The Parties acknowledge and agree that, as of the Effective Date,
all Confidential Information (as defined in the CDA) disclosed by PFIZER or its
Affiliates pursuant to the CDA shall be considered LICENSEE’s and PFIZER’s Confidential
Information and subject to the terms set forth in this Agreement.
	 
	 	17.12.	 	Counterparts. This Agreement may be executed in two or more counterparts, any of
which may be executed and transmitted by facsimile or other electronic method, and each
of which shall be deemed an original, but all of which together shall constitute one
and the same instrument.
	 
	 	17.13.	 	Cumulative Remedies. No remedy referred to in this Agreement is intended to be
exclusive, but each shall be cumulative and in addition to any other remedy referred to
in this Agreement or otherwise available under law.
	 
	 	17.14.	 	Waiver of Rule of Construction; Interpretation. Each Party has had the opportunity
to consult with counsel in connection with the review, drafting and negotiation of this
Agreement. Accordingly, any rule of construction that any ambiguity in this Agreement
shall be construed against the drafting Party shall not apply. In construing this
Agreement, (a) use of the singular includes the plural and vice versa; (b) “include” or
“including” means “including without limitation”, and (c) except where the context
otherwise requires, the word “or” is used in the inclusive sense. References to
“PFIZER” herein shall include any Affiliate of Pfizer Inc. to the extent that the
relevant Intellectual Property Rights or other assets are held by such Affiliate, any
activities with respect to ETC-216 were conducted by such Affiliate or any rights are
exercised hereunder by such Affiliate, and Pfizer Inc. shall cause such Affiliates to
fulfill the relevant obligations under this Agreement. For the sake of clarity, the
materials described in Schedule C shall include such materials generated by or
on behalf of Esperion Therapeutics, Inc. prior to its acquisition by Pfizer Inc.

[Signatures on next page]

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     IN WITNESS WHEREOF, the Parties intending to be bound have caused this Agreement to be
executed by their duly authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 
	THE MEDICINES COMPANY	 	PFIZER INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Glenn Sblendorio
	 	By:
	 	/s/ Willaim R. Ringo
	 

	 	 
	 	 	 	 
	 

	 	Name: Glenn Sblendorio
	 	 	 	Name: William R. Ringo
	 

	 	Title: EVP and CFO
	 	 	 	Title: SVP, Worldwide Business Development,
Strategy and Innovation

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SCHEDULE A: ETC-216

Description

ETC-216 is a macromolecular complex consisting of a dimer of the recombinant apolipoprotein A-I
Milano (rapoA-IM, a genetic variant of naturally occurring apolipoprotein A-I (apoA-I)) and POPC
(1-palmitoyl-2-oleoyl-sn-glycero-3-phosphocholine) a naturally occurring phospholipid.

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SCHEDULE B: PATENT RIGHTS

Schedule B1:

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Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A
total of 16 pages were omitted pursuant to a request for confidential treatment.

 

 

SCHEDULE C

DOCUMENTATION AND TANGIBLE MATERIALS

For purposes of this Schedule C only, references to “ETC-216” means the compound designated by
PFIZER as ETC-216 as described in Schedule A hereto, regardless of the manufacturing process used
in the generation thereof.

1. Non-Clinical Documentation

1.1 GLP Studies Documentation. PFIZER will provide to LICENSEE copies of protocols,
data, results and reports that were generated as part of GLP Studies conducted by or on
behalf of PFIZER. As used herein, “GLP Studies” means non-clinical toxicology and safety
studies of ETC-216 that are: (a) conducted in accordance with the standards for good
laboratory practices under the ICH guidelines and the applicable standards under the laws of
the United States, and (b) filed or intended by PFIZER to be filed as part of the Regulatory
Filings.

1.2 Non-GLP Studies Documentation. PFIZER will provide to LICENSEE a summary of the
results that were generated as part of relevant Non-GLP Studies conducted by or on behalf of
PFIZER. As used herein, “Non-GLP Studies” means non-clinical studies (including
pharmacology studies) of the Products other than the GLP Studies.

2. Clinical Documentation.

2.1 Trial Master File Documentation. PFIZER will provide to LICENSEE the trial
master files (or equivalent) for clinical studies of ETC-216 conducted by or on behalf of
PFIZER.

2.2 Study Report Documentation. PFIZER will provide to LICENSEE study reports and
supporting data, including SAS data sets, regarding the clinical trials of ETC-216 generated
by or on behalf of PFIZER.

2.3 Adverse Events Documentation. PFIZER will provide to LICENSEE a summary of any
and all adverse events reported to PFIZER for clinical trials of ETC-216, including specific
narratives and attributions for serious adverse events.

3. Regulatory Documentation. PFIZER will provide to LICENSEE any filings, correspondence, and
official meeting minutes between Regulatory Authorities and PFIZER with respect to ETC-216.

4. Manufacturing/Pharm. Sci. Documentation. PFIZER will provide to LICENSEE (a) all current batch
records (including process and packaging information), (b) all certificates of analyses, analytical
test methods, analytical test reports, process development reports (drug substance and drug
product), stability study reports, inventory records, analytical method development reports,
analytical method validation reports, stability summary tables and formulation development reports,
and (c) a drug substance campaign summary report.

 

 

5. Data Room Documentation. PFIZER will provide to LICENSEE electronic copies (if available) or
hard copies of any other materials included in the electronic data room set up by PFIZER on the
Intralinks platform space relating to ETC-216, including the documents listed in Schedule F
hereto.

6. Tangible Materials. Within [**] Business Days following the Effective Date, LICENSEE will
designate the appropriate facility for PFIZER to ship all Tangible Materials. PFIZER will arrange
for shipment of such Tangible Materials to such facility within [**] months the following Effective
Date. LICENSEE will pay for storage costs plus all packaging, handling and shipping costs of the
Tangible Materials. If LICENSEE fails to so designate a facility, PFIZER will have the right, but
not the obligation, to destroy all Tangible Materials. “Tangible Materials” means the Specimens
and the Transferred Inventory.

6.1 Specimen Transfer. PFIZER will provide to LICENSEE Specimens. As used herein,
“Specimens” means specimens or samples that: (a) were generated as part of toxicology GLP
Studies, (b) are retained by PFIZER as of the Effective Date, and (c) are reasonably
retrievable by PFIZER.

6.2 Inventory Transfer. PFIZER will transfer to LICENSEE the manufacturing inventories set
forth in Schedule E hereto (collectively, “Transferred Inventory”).

 

 

SCHEDULE D: PRESS RELEASE

THE MEDICINES COMPANY ACQUIRES APOA-I MILANO FROM PFIZER

Product Has Potential to Reverse Plaque Buildup in Arteries

FOR U.S. AUDIENCES ONLY

PARSIPPANY, NJ, and NEW YORK, NY, DECEMBER 21, 2009 — The Medicines Company (NASDAQ: MDCO) today
announced the exclusive worldwide licensing of ApoA-I Milano from Pfizer Inc. (NYSE:PFE). ApoA-I
Milano is a naturally occurring variant of a protein found in human high-density lipoprotein (HDL)
that has the potential to reverse atherosclerotic plaque development and reduce the risk of
coronary events in patients with acute coronary syndrome (ACS).

Under the terms of the agreement, Pfizer will receive an up-front payment of $10 million for ApoA-I
Milano and will also receive additional payments upon the achievement of certain clinical,
regulatory and sales milestones up to a total of $410 million. Pfizer will also be eligible to
receive single-digit royalty payments on worldwide net sales of ApoA-I Milano. The Medicines
Company will also pay $7.5 million to a third party.

“The acquisition of ApoA-I Milano provides The Medicines Company with a significant asset that fits
well within our current areas of business” said Clive Meanwell MD, PhD, Chairman and Chief
Executive Officer of The Medicines Company. “By mimicking the actions of HDL, ApoA-I Milano has
been shown in an early clinical study, published in JAMA, to rapidly reduce the size of
atherosclerotic plaques. This is an area of cardiovascular medicine that is not yet served by
currently available therapies — and the potential to provide disease modification for patients
with high risk atheroma and associated acute coronary syndromes represents a major innovation
opportunity.”

“We are very pleased to partner with The Medicines Company to advance the Apo-I Milano program as
part of our strategy of out licensing programs that Pfizer no longer pursues internally. The Apo-I
Milano program has the potential to become a valuable and innovative medicine for the treatment of
cardiovascular diseases. We look forward to seeing it progress, thanks to The Medicines Company’s
experience in conducting large clinical trials in cardiovascular patients as well as their
expertise in treating critical and intensive care patients.” said David K. Rosen DVM, Head of Out
Licensing for Pfizer Inc.

About ApoA-I Milano

ApoA-I Milano is a naturally occurring variant of apolipoproteinA-I (ApoA-I), the main protein
component of the HDL lipoprotein particle. The variant has been found in approximately 45
individuals from Limone sul Garda, a small village in northern Italy. Carriers of this variant
appear to have reduced risk of cardiovascular disease. Patented by the University of Milan and
Pharmacia, ApoA-I Milano was licensed to Esperion Therapeutics. Esperion was subsequently

 

 

acquired by Pfizer in 2004. Since that time, Pfizer has moved development forward with improvements
to the original manufacturing process.

In multiple non-clinical models, ApoA-I Milano rapidly removed excess cholesterol from artery
walls, thereby stabilizing and regressing atherosclerotic plaque. A phase I-II study in 36 patients
demonstrated statistically significant reductions on coronary plaque volume by 4.2% in 6 weeks.
These findings were published in the Journal of the American Medical Association and continue to be
widely referenced and discussed.

The Medicines Company will host a conference call today, Monday, December 21, 2009 at 8:30 a.m.
Eastern Time. The conference call will be available via phone and webcast. The dial in information
is listed below:

Domestic Dial In: 866-285-1709

International Dial In: 617-213-8060

Passcode for both dial in numbers: 31802183

Replay is available from 11:30 a.m. Eastern Time following the conference call through January 4,
2010. To hear a replay of the call, dial 888-286-8010 (domestic) and 617-801-6888 (international).
Passcode for both dial in numbers is 58773912.

This call is being webcast and can be accessed at The Medicines Company’s website at
www.themedicinescompany.com.

About The Medicines Company

The Medicines Company (NASDAQ: MDCO) is focused on advancing the treatment of critical care
patients through the delivery of innovative, cost-effective medicines to the worldwide hospital
marketplace. The Company markets Angiomax® (bivalirudin) in the United States and other countries
for use in patients undergoing coronary angioplasty, and Cleviprex® (clevidipine butyrate)
injectable emulsion in the United States for the reduction of blood pressure when oral therapy is
not feasible or not desirable. The Medicines Company’s website is www.themedicinescompany.com.

Statements contained in this press release about The Medicines Company that are not purely
historical, and all other statements that are not purely historical, may be deemed to be
forward-looking statements for purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. Without limiting the foregoing, the words “believes,” “anticipates”
and “expects” and similar expressions are intended to identify forward-looking statements. These
forward-looking statements involve known and unknown risks and uncertainties that may cause the
Company’s actual results, levels of activity, performance or achievements to be materially
different from those expressed or implied by these forward-looking statements. Important factors
that may cause or contribute to such differences include whether physicians, patients and other key
decision-makers will accept clinical trial results,

 

 

whether clinical trial results will warrant submission of applications for regulatory approval,
whether the Company’s products will advance in the clinical trials process on a timely basis or at
all, whether the Company will be able to obtain regulatory approvals, whether we are able to obtain
or maintain patent protection for the intellectual property relating to the Company’s products and
such other factors as are set forth in the risk factors detailed from time to time in the Company’s
periodic reports and registration statements filed with the Securities and Exchange Commission
including, without limitation, the risk factors detailed in the Company’s Quarterly Report on Form
10-Q filed on November 9, 2009, which are incorporated herein by reference. The Company
specifically disclaims any obligation to update these forward-looking statements.

 

 

SCHEDULE E: TRANSFERRED INVENTORY

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SCHEDULE F: ELECTRONIC DATA ROOM SUMMARY

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Confidential Materials omitted and filed separately with the Securities and Exchange Commission. A
total of two pages were omitted pursuant to a request for confidential treatment.

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