Document:

EXHIBIT 4.2

 Exhibit 4.2 
  

WARRANT 
  
 THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. 
  
  
 REGENERX BIOPHARMACEUTICALS, INC. 
  
 WARRANT TO PURCHASE
COMMON STOCK 
  

	 Warrant No.: P-24 
	 Number of Shares: 11,539 

 Issuance Date: December 31, 2004 
  
 THIS CERTIFIES THAT, for value
received, ThinkEquity Partners L.L.C. or its registered assigns (the “Holder”) is entitled to purchase from RegeneRx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), at any time after December 31,
2004 and before the Expiration Date (defined below) at $4.05 per share (the “Exercise Price”) Eleven Thousand Five Hundred and Thirty Nine (11,539) fully paid nonassessable shares of Common Stock (defined below) (the
“Warrant Shares”), all subject to adjustment and upon the terms and conditions provided herein. 
  
 Section 1. Definitions. 
  
 The following terms as used in this Warrant have the following meanings: 
  
 (a) “Business Day” means any day other than Saturday, Sunday or federal holiday. 
  
 (b) “Common Stock” means (i) the Company’s common
stock, $.001 par value per share, and (ii) any capital stock into which the Common Stock is changed or any capital stock resulting from a reclassification of the Common Stock. 
  
 (c) “Engagement Letter” means letter agreement, dated September 1, 2004 between the Holder and the Company.

  
 (d) “Exercise Price” is equal to $4.05,
subject to adjustment. 
  
 (e) “Expiration Date”
means the date three years after the Issuance Date or, if such date falls on a day that is not a Business Day or a day on which trading does not take place on the principal exchange or automated quotation system on which the Common Stock is traded
(a “Holiday”), the next day that is not a Holiday. 
  
  

 (f) “Issuance Date” means December 31, 2004. 
  
 (g) “Person” means a natural person or company, or a
government or any division, department or agency thereof. 
  
 (h)
“Purchase Agreement” means the purchase agreement dated December 31, 2004 between the Company and various investors. 
  
 (i) “Registrable Securities” shall mean, subject to Section 5: (i) the Company securities owned by a shareholder of the Company on the
date of determination; (ii) any class of stock, equity interests or other securities issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to,
or in exchange by the Company generally for, or in replacement by the Company generally of, such equity interests; and (ii) any securities issued in exchange for equity interests in any merger or reorganization of the Company; provided,
however, that Registrable Securities shall not include any securities which have theretofore been registered and sold pursuant to the Securities Act or which have been sold to the public pursuant to Rule 144 or any similar rule promulgated by
the Commission pursuant to the Securities Act, and provided further, the Company shall have no obligation under Section 5 to register any Registrable Securities of a shareholder of the Company requesting such registration if the Company shall
deliver to the requesting shareholder an opinion of counsel reasonably satisfactory to the requesting shareholder and its counsel that the registration which was requested does not require registration under the Securities Act for a sale or
disposition in a single public sale and offers to remove any and all legends restricting transfer from the certificates representing such Registrable Securities. For purposes of this Agreement, a person will be deemed to be a holder of Registrable
Securities whenever such person has the then existing right to acquire Registrable Securities (by conversion, purchase or otherwise) whether or not such acquisition has actually been effected. 
  
 (j) “Securities Act” means the Securities Act of 1933, as
amended. 
  
 (k) “Warrant” means this Warrant and
all Warrants issued in exchange, transfer or replacement thereof. 
  
 Section 2. Exercise of Warrant. 
  
 (a) This
Warrant may be exercised by the Holder registered on the books of the Company, in whole or in part, at any time on any Business Day after December 31, 2004 and prior to 11:59 p.m. Eastern Time on the Expiration Date by (i) delivery of a written
notice, in the form attached as Exhibit A (the “Exercise Notice”), of Holder’s election to exercise this Warrant, specifying the number of Warrant Shares to be purchased, (ii) payment to the Company of an amount equal to
the Exercise Price multiplied by the number of Warrant Shares being purchased (the “Payment”) in cash or wire transfer of immediately available funds or by means of a cashless exercise pursuant to Section 3 and (iii) the surrender
to a common carrier for overnight delivery to the Company, as soon as practicable following such date, of this Warrant, (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction). 
  

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 The Company shall, not later than the second Business Day (the “Delivery Date”)
following receipt of an Exercise Notice, the Payment and this Warrant or an indemnification (the “Exercise Documents”), arrange for its transfer agent, on or before the Delivery Date, to issue and surrender to a common carrier for
overnight delivery to the address specified in the Exercise Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder is entitled. Upon delivery of the Exercise Notice and the Payment,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised on the Delivery Date, irrespective of the date of delivery of the certificates
evidencing the Warrant Shares. 
  
 (b) Unless the rights
represented by this Warrant have expired or been fully exercised, the Company shall, as soon as practicable and in no event later than five Business Days after receipt of the Exercise Documents and at its own expense, issue a new Warrant identical
in all respects to this Warrant, except it shall represent rights to purchase the number of Warrant Shares purchasable immediately prior to exercise, less the number purchased. 
  
 (c) No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares
of Common Stock issued shall be rounded up or down to the nearest whole number. 
  
 Section 3. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided, however, that the Holder may satisfy its obligation to pay the Exercise Price through a
“cashless exercise,” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 
  
 (A) = the average closing price for the five trading days immediately prior
to (but not including) the date of such election; 
  
 (B) = the
Exercise Price of the Warrants, as adjusted; and 
  
 (X) = the
number of Warrant Shares issuable upon exercise of the Warrants in accordance with the terms of this Warrant. 
  
 Section 4. Covenants as to Common Stock. The Company hereby covenants and agrees as follows: 
  
 (a) This Warrant is, and any Warrants issued in substitution for or
replacement of this Warrant upon issuance will be, duly authorized, executed and delivered. 
  
 (b) All Warrant Shares upon issuance will be validly issued, fully paid and nonassessable and free from all liens and charges with respect to the issue thereof. 
  
 (c) As long as this Warrant may be exercised, the Company will have
authorized and reserved at least the number of shares of Common Stock needed to provide for the exercise of the rights then represented by this Warrant. 
  

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 Section 5. Piggy-Back Registrations. If at any time the Company shall determine to register for
its own account or the account of others under the Securities Act (including in connection with an underwritten public offering of the Company’s Common Stock on a Form S-1, Form S-3 , Form SB-1 or Form SB-2 Registration Statement filed with the
Securities and Exchange Commission under the Securities Act or a demand for registration of any shareholder of the Company) any of its equity securities, other than on Form S-8 or Form S-4 or their then equivalents relating to shares of Common Stock
to be issued solely in connection with any acquisition of an entity or business or shares of Common Stock issuable in connection with stock option or other employee benefit plans, it shall send to each holder of Registrable Securities, including
each holder who has the right to acquire Registrable Securities (including, if applicable, the Holder or any holder of warrant shares issued pursuant to this Warrant), written notice of such determination and if, within 15 days after receipt of such
notice, such holder shall so request in writing, the Company shall use its good faith efforts to include in such registration statement all or any part of the Registrable Securities such holder requests to be registered. 
  
 If, in connection with any offering involving an underwriting of Common Stock
to be issued by the Company and that is subject to the registration rights contained in this Section 5, the managing underwriter shall impose a limitation on the number of shares of such Common Stock that may be included in the registration
statement because in its judgment, such limitation is necessary to effect an orderly public distribution, then the Company shall be obligated to include in such registration statement only such portion of the Registrable Securities with respect to
which such holder has requested inclusion pursuant hereto as such limitation permits after the inclusion of all shares of Common Stock to be registered by the Company for its own account. Any exclusion of Registrable Securities shall be made pro
rata among such holders of Registrable Securities (or their assigns) and other selling shareholders seeking to include such shares, in proportion to the number of such shares sought to be included by such holders of Registrable Securities (or their
assigns) and the other selling shareholders. The obligations of the Company under this Section 5 may be waived at any time upon the written consent of holders of at least two-thirds in interest of the Registrable Securities. 
  
 Section 6. Warrant Holder Not Deemed a Shareholder. Except as
specifically provided in Section 2(a), nothing contained in this Warrant shall be construed to (a) grant the Holder any rights to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, (b) confer upon the Holder
any of the rights of a shareholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive
notice of meetings, receive dividends or subscription rights, or otherwise, or (c) impose any liabilities on the Holder to purchase any securities or as a shareholder of the Company, whether asserted by the Company or creditors of the Company, prior
to the issuance of the Warrant Shares. 
  
 Section 7.
Representations of Holder. The Holder, by the acceptance hereof, represents that it is acquiring this Warrant and the Warrant Shares for its own account for investment only and not with a view towards, or for resale in connection with, the
public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or 
  

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 exempted under the Securities Act. The Holder further represents, by acceptance hereof, that, as of this date, Holder is
an “accredited investor” as defined in Rule 501(a)(1) of Regulation D promulgated under the Securities Act (an “Accredited Investor”). Upon exercise of this Warrant, the Holder shall, if requested by the Company, confirm
in writing, in a form satisfactory to the Company, that the Warrant Shares are being acquired solely for the Holder’s own account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale and
that Holder is an Accredited Investor. If Holder cannot make such representations because they would be factually incorrect, it shall be a condition to Holder’s exercise of this Warrant that the Company receive such other representations as the
Company considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of this Warrant shall not violate any federal or state securities laws. The Company shall not be penalized or disadvantaged by a
Holder’s inability to exercise this Warrant due to its inability to make the required representations in connection with the exercise of this Warrant. 
  
 Section 8. Ownership and Transfer. 
  
 (a) The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to the
holder hereof), a register for this Warrant, in which the Company shall record the name and address of the Person in whose name this Warrant has been issued, as well as the name and address of each transferee who has acquired this Warrant in
accordance with applicable law and the terms of this Warrant. The Company may treat the Person in whose name any Warrant is registered on the register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but
in all events recognizing any transfers made in accordance with the terms of this Warrant. 
  
 (b) This Warrant may be offered, sold, transferred or assigned in compliance with the Securities Act and applicable state securities laws without the consent of the Company, except as may otherwise be required by the
Purchase Agreement. 
  
 Section 9. Adjustment of Exercise Price
and Number of Shares. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows: 
  
 (a) Stock Splits. If the Company subdivides (by any stock split, recapitalization or otherwise) its outstanding shares of Common Stock into a
greater number of shares, the Exercise Price in effect immediately prior to the subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company combines (by combination, reverse stock
split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to the combination will be proportionately increased and the number of Warrant Shares will be proportionately
decreased. Any adjustment under this Section shall become effective at the close of business on the date the subdivision or combination becomes effective. 
  
 (b) Stock Dividends. If the Company declares a dividend or any other distribution upon the Common Stock that is payable in shares of Common Stock
or securities convertible into shares of Common Stock, the Exercise Price in effect immediately prior to the declaration of the dividend or distribution will be reduced to the quotient obtained by dividing (i) the number of shares of Common Stock
outstanding immediately prior to the declaration 
  

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 multiplied by the then effective Exercise Price by (ii) the total number of shares of Common Stock outstanding
immediately after the declaration. 
  
 Section 10. Purchase
Rights; Reorganization, Reclassification, Consolidation, Merger or Sale. 
  
 (a) Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s assets to another Person or other transaction in each case that is effected in
such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock is referred to herein as an “Organic
Change.” Upon the consummation of any (i) sale of all or substantially all of the Company’s assets to an acquiring Person or (ii) other Organic Change following which the Company is not a surviving entity, the Company will
secure from the Person purchasing the assets or the successor resulting from the Organic Change (in each case, the “Acquiring Entity”) a written agreement to deliver to Holder in exchange for this Warrant, a security of the
Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Warrant and reasonably satisfactory to the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate
provision to insure that Holder will thereafter have the right to acquire and receive in lieu of the shares of Common Stock immediately theretofore acquirable and receivable upon the exercise of this Warrant, such shares of stock, securities or
assets that would have been issued or payable in the Organic Change with respect to or in exchange for the number of Warrant Shares that would have been acquirable as of the date of the Organic Change. 
  
 Section 11. Lost, Stolen, Mutilated or Destroyed Warrant. If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly, on receipt of an indemnification undertaking reasonably satisfactory to the Company (or, in the case of a mutilated Warrant, the Warrant), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed. 
  
 Section 12. Notice. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Warrant must be in writing and will be deemed to have been delivered: (i)
upon receipt, when delivered personally; (ii) upon receipt, when sent by fax transmittal (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after
deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and fax numbers for communications shall be: 
  
 If to the Company: 
  
 RegeneRx Biopharmaceuticals, Inc. 
 3 Bethesda Metro Center, Suite 700 
 Bethesda, Maryland 20814 
 Fax: (301) 961-1991 
 Attention: President, Chief Executive Officer and Principal Financial Officer 
  

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 With a copy to: 
  

Patton Boggs LLP 
 2550 M Street, N.W.

 Washington, DC 20037 
 Fax:
(202) 457-6315 
 Attention: Philip G. Feigen, Esq. 
  

If to the Holder: 
  
 ThinkEquity Partners L.L.C. 
 600 Montgomery Street 
 8th Floor 
 San Francisco, California 94111 
  
 Each party shall provide five days’ prior written notice to the other party of any change in address or fax number. Written confirmation of receipt (A) given by the
recipient of any notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s fax machine containing the time, date, recipient fax number and an image of the first page of the transmission, or (C)
provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt. 
  
 Section 13. Remedies, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant, the Purchase Agreement and the Engagement Letter, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the
Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the
necessity of showing economic loss and without any bond or other security being required. 
  
 Section 14. Amendment and Waiver. Except as otherwise provided herein, this Warrant may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Holder. No provision
hereunder may be waived other than in a written instrument executed by the waiving party. 
  
 Section 15. Governing Law. This Warrant shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be
governed by, the internal laws of the State of California, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of California or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of California. 
  

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 Section 16. Restrictive Legends. At all times this Warrant and until such time as the Registration
Statement (as defined in the Purchase Agreement) has been declared effective or the Warrant Shares may be sold pursuant to Rule 144(k) under the Securities Act without any restriction as to the number of securities that can then be immediately sold,
certificates for any Warrant Shares will, in addition to any legend required under applicable securities law, bear a restrictive legend substantially in the form first set forth above. 
  
  
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as of December 31, 2004.

  

			
	REGENERX BIOPHARMACEUTICALS, INC.
		
	By:	 	/s/ J.J. FINKELSTEIN
	 	 	 Name:   J.J. Finkelstein
 Title:    President, Chief Executive Officer and Principal Financial Officer

  

 Exhibit A To Warrant 
  
  
 REGENERX BIOPHARMACEUTICALS, INC.

  
 EXERCISE NOTICE 
  
 TO BE EXECUTED BY THE REGISTERED HOLDER 
 TO EXERCISE THIS WARRANT 
  
 The undersigned holder hereby exercises the right to purchase
                                 shares of Common Stock (“Warrant
Shares”) of RegeneRx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant. 
  
 1.
Payment of Exercise Price (check applicable box). 
  
 [    ] Payment in the sum of $                 [is enclosed] [has been wire transferred to the Company at the following
account:                     ] in accordance with the terms of the Warrant. 
  
 [    ] The cancellation of such number of Warrant Shares
as is necessary, in accordance with the formula set forth in subsection 2(c) of the Warrant, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in
subsection 2(c). 
  
 2. Delivery of Warrant Shares. The
Company shall deliver the Warrant Shares in the name of the undersigned or in such other name as is specified below in accordance with the terms of the Warrant at the following address: 
  

	 	

  

	 	

  

	 	

  
 3. Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended. 
  
 Date:
                         ,
                 
  

			
	 
		
	By:	 	 
	 	 	 Name:
 Title:

  

 ACKNOWLEDGMENT 
  
 The Company hereby acknowledges this Exercise Notice and hereby directs
                . to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated
                , 200_ from the Company and acknowledged and agreed to by
                    . 
  

			
	REGENERX BIOPHARMACEUTICALS, INC.
		
	By:	 	 
	 	 	 Name:
 Title:License Agreement

 Exhibit 10.18 
  
 ** CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN
UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 LICENSE AGREEMENT 
  
 THIS LICENSE AGREEMENT (this “Agreement”) dated as of October 22, 2004 (the “Effective Date”), is entered into between MediciNova, Inc., a Delaware corporation (“MN”) having a place of business located at 4350
La Jolla Village Drive, Suite 950, San Diego, California 92122, U.S.A., and Kyorin Pharmaceutical Co., Ltd., a Japanese corporation (“KR”), having a place of business located at 5, Kanda Surugadai 2-chome, Chiyoda-ku, Tokyo 101-8311,
Japan. 
  
 W I T N E S S E T H: 
  
 WHEREAS, KR is the owner of the KR Intellectual Property Rights, as defined
herein; 
  
 WHEREAS, MN desires to obtain exclusive license
rights, with a right to grant sublicenses, under the KR Intellectual Property Rights, and KR desires to grant such license to MN, upon the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 For purposes of this Agreement, the terms defined in this Article 1 shall
have the respective meanings set forth below, it being understood that (a) words in the singular include the plural and vice versa and (b) any reference to any Party includes its Affiliates, successors in title and permitted assigns: 
  
 1.1 “Act” shall mean the Federal Food, Drug, and Cosmetic
Act of 1938, as amended, and the rules and regulations promulgated thereunder, or any successor act, as the same shall be in effect from time to time. 
  
 1.2 “Affiliate” shall mean, (i) any corporation or business entity of which fifty percent (50%) or more of the securities or other
ownership interests representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or indirectly, by a Party or by any entity mentioned in (ii) hereinafter; (ii) any corporation or business entity

  

 1 

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 
which, directly or indirectly, owns, controls or holds fifty percent (50%) or more (or the maximum ownership interest permitted by law) of the securities or
other ownership interests representing the equity, voting stock or general partnership interest of a Party; or (iii) any corporation or business entity of which a Party has the legal right to acquire, directly or indirectly, at least fifty percent
(50%) of the securities or other ownership interests representing the equity, voting stock or general partnership interest thereof. 
  
 1.3 “Business Day” shall mean any day that is not a Saturday or a Sunday or a day on which the New York Stock Exchange or the Tokyo Stock
Exchange is closed. 
  
 1.4 “Calendar Quarter”
shall mean the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31. 
  
 1.5 “Calendar Year” shall mean each successive period of twelve (12) months commencing on January 1 and ending on December 31.

  
 1.6 “cGMP” shall mean current applicable good
manufacturing practices as defined in regulations promulgated by the FDA under the Act and, if applicable, corresponding applicable laws and regulations of other countries in the MN Territory or the KR Territory relating to the formulation,
manufacture, testing prior to delivery, storage and delivery of Compound and Licensed Product. 
  
 1.7 “Compound” shall mean the chemical compound known as Ibudilast whose specific chemical name is [**], as diagrammed on Exhibit 1.7 hereto. 
  
 1.8 “Controlled by” shall mean with respect to the KR
Intellectual Property, that (i) KR has an exclusive license to the KR Patent Assets or the KR Know-How and has the ability to grant licenses thereto to MN in accordance with the terms of this Agreement without violating the terms of the Sakoda
Agreement or any other agreement or arrangement with Sakoda or any other Third Party and that (ii) neither Sakoda nor any other Third Party has any rights to grant a license or other rights to such KR Intellectual Property to any other Third Party.

  
 1.9 “DMF” shall mean a Drug Master File, as
defined in 21 CFR Section 314.420, as the same may be amended or re-promulgated from time to time or any successor filing or procedure and/or its equivalent in other countries of the MN Territory. 
  
 1.10 “End of Phase 2 Meeting” shall mean the first end of
Phase 2 meeting with the FDA, as defined in 21 CFR Section 312.47, intended to determine the safety of proceeding to Phase 3, evaluate the Phase 3 plan and protocols and identify any additional information necessary to support an NDA for Licensed
Product. 
  
 1.11 “FDA” shall mean the United
States Food and Drug Administration or any successor thereto having regulatory jurisdiction over the manufacture, distribution and sale of drugs. 
  

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	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 1.12 “First Commercial Sale” shall mean, the first commercial sale of Licensed Product
to Third Party for use or consumption by the general public of such Licensed Product in any country in the MN Territory by MN and/or its sublicensee after Regulatory Approval has been granted by the governing health authority of such country.

  
 1.13 “GAAP” shall mean generally accepted
accounting principles in the United States. 
  
 1.14
“Generic Competition” shall exist or be deemed to exist, in any particular country in the MN Territory, commencing on the earlier of (i) where IMS or IMS-equivalent data is available, the first date on which Generic Drugs achieve a
market share in one (1) Calendar Quarter of [**] or greater of the total prescriptions for Licensed Product in such country (as so shown by the average of the monthly IMS (or IMS-equivalent) data for such prescriptions) or (ii) the first date
on which there are three (3) Generic Drugs available in one (1) Calendar Quarter in such country. 
  
 1.15 “Generic Drug” shall mean any product containing Compound that (i) is an AB rated equivalent to Licensed Product, as defined in the
23rd edition of Approved Drug Products with Therapeutic Equivalence Evaluations issued by the United States Department of Health and Human Services; (ii) is defined in a particular country in the MN Territory as a generic drug to Licensed Product by
applicable legal texts or regulatory authorities in such country; or (iii) can be substituted for Licensed Product by a pharmacy, in each case other than a product introduced in such country by MN or its sublicensees. 
  
 1.16 “Improvement” shall mean any improvement, including
without limitation, any change or modification to any method, process, composition, any enhancement in the manufacture, formulation, ingredients, preparation, presentation, means of delivery, dosage or packaging relating to Compound or Licensed
Product, and shall include any homolog, analog, derivative, or conjugate of Compound or Licensed Product or any new use of the foregoing. 
  
 1.17 “IND” shall mean an investigational new drug application and any amendments thereto relating to the use of Compound or Licensed
Product in the United States or the equivalent application and any amendments thereto in any other regulatory jurisdiction in the MN Territory or the KR Territory, the filing of which is necessary to commence clinical testing of Licensed Products in
humans. 
  
 1.18 “KR Intellectual Property
Rights” shall mean all intellectual property and proprietary rights in, arising out of, or associated with: (i) all KR Patent Assets and (ii) all KR Know-How. 
  
 1.19 “KR Know-How” shall mean any and all information and materials, including but not limited to,
discoveries, information, Improvements, processes, formulae, data, inventions (whether patentable or not), invention disclosures, know-how and trade secrets, patentable or otherwise, which relate to Compound or Licensed Product, including without
limitation, all chemical, pharmaceutical, toxicological, biochemical, biological, technical and nontechnical 

  

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	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 
data, and information relating to the results of tests, assays, methods, processes, and specifications and/or other documents containing information and
related data, and any preclinical, clinical, assay control, regulatory, and any other information necessary or useful for the development and/or Regulatory Approval of Compound or Licensed Product that are as of the Effective Date or become at any
time during the term of this Agreement owned or Controlled by KR. 
  
 1.20 “KR Licensee” shall mean a Person other than KR’s Affiliates to which KR licenses any or all KR Intellectual Property Rights subject to the terms of this Agreement. 
  
 1.21 “KR Patent Assets” shall mean all United States,
international and foreign utility and design patents and applications therefor (which shall be deemed to include certificates of invention and applications for certificates of invention and supplementary protection certificates) and all reissues,
divisions, registrations, extensions, provisionals, continuations and continuations-in-part thereof which as of the Effective Date or at any time during the term of this Agreement: 
  
 (a) are owned or Controlled by KR, and 
  
 (b) relate to Compound or Licensed Product, 
  
 including, but not limited to, methods of their manufacture, methods of their use, or otherwise relating to KR Know-How, including the
patents and patent applications listed on Exhibit 1.21 hereto, and any counterparts thereof which have been or may be filed in other countries in the MN Territory. 
  
 1.22 “KR Territory” shall mean Japan, China (PRC), Taiwan (ROC) and South Korea. 
  
 1.23 “Licensed Product” shall mean any product other than
Ophthalmic Product in final dosage form for commercial sale by prescription, over-the-counter, or by any other method (or, where the context so indicates, the product being tested in clinical trials), incorporating Compound as the primary
therapeutically active ingredient in any dosage form or package configuration, such Licensed Product to include a combination product with other chemically or biologically active components. 
  
 1.24 “Market Exclusivity Period” shall mean that period of
time with respect to a particular country in the MN Territory during which MN has the exclusive legal right to market Licensed Products pursuant to regulations of such country’s governing health authority and during which no Generic Competition
exists. 
  
 1.25 “MN Intellectual Property
Rights” shall mean all Improvements under Section 8.1 of this Agreement. 
  
 1.26 “MN Option” shall mean the option described in Section 3.2. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 1.27 “MN Territory” shall mean all countries worldwide, except for the KR Territory.

  
 1.28 “MS Indication” shall mean use of
Licensed Product to treat, alleviate or prevent any of the symptoms associated with multiple sclerosis. 
  
 1.29 “NDA” shall mean a new drug application filed with the FDA for marketing authorization of a Licensed Product in the United States, a
corresponding submission in the European Union or under the Centralized Procedure if the context so indicates, or the equivalent application in any other regulatory jurisdiction, and any amendments and supplements thereto in the MN Territory or the
KR Territory, as applicable. 
  
 1.30 “Net Sales”
shall mean with respect to any Licensed Product, the gross amounts invoiced by MN to Third Party customers for sales or other transfers or disposition of a Licensed Product commencing as of the date of First Commercial Sale, less: 
  
 (a) customary trade, quantity, and cash discounts or rebates
actually allowed on Licensed Product; 
  
 (b)
credits or allowances given to Third Party customers for rejections or returns of Licensed Product or on account of retroactive price reductions affecting such Licensed Product; 
  
 (c) sales taxes, excise taxes, use taxes, import/export duties or other governmental charges actually due or
incurred with respect to the production, importation, use or sale of a Licensed Product to Third Party customers; 
  
 (d) rebates and chargebacks, or similar payments or credits consistent with industry standards granted to managed health care
organizations, wholesalers, distributors, buying groups, retailers, health care insurance carriers, pharmacy benefit management companies, health maintenance organizations or other institutions or health care organizations or to federal,
state/provincial, local and other governments, their agencies and purchasers and reimbursers; and 
  
 (e) write offs or allowances for bad debts, in an amount not to exceed ten percent (10%) of the gross amount invoiced. 
  
 1.31 “Ophthalmic Product” shall mean any product in final
dosage form for commercial sale by prescription, over-the-counter, or by any other method (or, where the context so indicates, the product being tested in clinical trials), incorporating Compound as the primary therapeutically active ingredient in a
liquid pharmaceutical formulation that is applied directly to the eyes, such Ophthalmic Product to include a combination product with other chemically or biologically active components. 
  
 1.32 “Optional Indications” shall mean all indications or uses of Licensed Product other than the MS
Indication. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 1.33 “Party” shall mean KR or MN. 
  
 1.34 “Person” shall mean an individual, corporation,
partnership, 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. 
  
 1.35 “Phase 3 Clinical Trial” shall mean a trial conducted
after an End of Phase 2 Meeting in patients with multiple sclerosis on a sufficient number of patients that is designed to establish that Licensed Product is safe and efficacious for its intended use, and to define warnings, precautions and adverse
reactions that are associated with Licensed Product in the dosage range to be prescribed, and supporting marketing authorization of Licensed Product for the MS Indication. 
  
 1.36 “Program” shall mean those activities to be undertaken by MN or its designee including its
sublicensees with respect to Compound or Licensed Product which are devoted to the evaluation of safety and efficacy in preclinical and clinical trials, and/or the conduct of any other activities or studies directed toward obtaining Regulatory
Approval of Compound or Licensed Product for the MS Indication. 
  
 1.37 “Proprietary Information” shall mean any and all scientific, clinical, regulatory, marketing, financial and commercial information or data, whether communicated in writing, orally or by any other means, which is owned
and under the protection of one Party and is being provided by that Party to the other Party in connection with this Agreement. 
  
 1.38 “Regulatory Approval” shall mean all approvals (including pricing and reimbursement approvals required for marketing authorization),
product and/or establishment licenses, registrations or authorizations of all regional, federal, state or local regulatory agency, department, bureau or other governmental entity, necessary for the manufacture, use, storage, import, export,
transport and sale of Compound or Licensed Product in a regulatory jurisdiction in the MN Territory or the KR Territory, as applicable. 
  
 1.39 “Royalty Term” shall mean, with respect to each Licensed Product in each country in the MN Territory, the period of time beginning
with the date of the First Commercial Sale of such Licensed Product by MN in such country and continuing until the later of (a) the last date on which the manufacture, use or sale of such Licensed Product in such country would infringe a Valid
Patent Claim but for the license granted by this Agreement or (b) the last date of the Market Exclusivity Period in such country. In the event that in any country (x) neither a Valid Patent Claim nor Market Exclusivity Period existed during any
period in which Licensed Product is sold in such country and (y) Licensed Product is not subject to Generic Competition in such country, then the Royalty Term in such country shall mean the period commencing on the date of the First Commercial Sale
of Licensed Product by MN in such country and expiring on the earlier of (i) five (5) years from such date or (ii) the end of the second (2nd) consecutive Calendar Quarter in which Generic Competition exists in such country. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 1.40 “Royalty Year” shall mean (i) for the first year in which the date of First
Commercial Sale occurs (the “First Royalty Year”), the period commencing with the first day (the “Commencement Date”) of the Calendar Quarter in which such First Commercial Sale occurs and expiring on the last day of the twelfth
(12th ) month following the Commencement Date and (ii) for each subsequent year, each successive twelve (12) month
period commencing on the date immediately following the last day of the First Royalty Year. 
  
 1.41 “Sakoda” shall mean Saburo Sakoda, M.D. 
  
 1.42 “Sakoda Agreement” shall mean the Covenant by and between Sakoda and KR dated as of August 3, 2004, including the letter agreement by and between Sakoda and KR dated as of June 10, 2004, a copy
(with the redaction of the financial terms) of which is attached hereto, together with an English translation thereof, as Exhibit 1.42.  
  
 1.43 “Third Party” shall mean any Person other than KR, MN and their respective Affiliates. 
  
 1.44 “Trademark” shall mean the trademark, trade name and
trade dress to be used for sale of each Licensed Product by MN or its sublicensees which Trademark may include MN’s existing trademark, trade name and trade dress. 
  
 1.45 “Valid Patent Claim” shall mean a claim of an issued and unexpired patent included within the KR
Patent Assets, which has not been held permanently revoked, or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or for which an appeal has not been filed within the time
allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
  
 ARTICLE 2 
 PROGRAM 
  
 2.1 Conduct of Program and Regulatory Matters. 
  
 (i) MN Territory. 
  
 MN shall use commercially reasonable efforts to develop and
commercialize Licensed Product in the MN Territory for the MS Indication, including the preparation and filing of regulatory submissions. MN shall own, control and retain primary legal responsibility for, and shall be responsible for funding, the
preparation, filing and prosecution of all filings and regulatory applications required to obtain Regulatory Approval of Licensed Product in the MN Territory for the MS Indication. MN may subcontract portions of the Program; provided, however, that
such subcontracted Third Party shall be subject to an agreement with MN consistent with the confidentiality obligations in accordance with Article 7 below. KR shall transfer free of charge to MN as soon as practicable after the Effective Date any
IND or other regulatory filings relating to Compound or Licensed Product owned or Controlled by KR, if any, 

  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 
in the MN Territory and KR shall allow MN or its sublicensees free of charge the right to cross reference any IND, NDA or DMF if owned or controlled by KR
and relating to Compound or Licensed Product. Upon MN’s reasonable request, KR shall consult and cooperate with MN in obtaining Regulatory Approval of Licensed Product for the MS Indication in the MN Territory, provided that (i) MN provides KR
with reasonable notice and reimburses KR for reasonable out-of-pocket expenses incurred by KR in performing such services at MN’s request and (ii) unless either KR or its Affiliates is developing Licensed Product for the MS Indication in the KR
Territory, any consultation and cooperation in obtaining such Regulatory Approval (other than providing KR Know-How or otherwise performing KR’s obligations under this Agreement) shall be subject to KR’s acceptance of such request.

  
 (ii) KR Territory. KR shall own,
control and retain primary legal responsibility for, and shall be responsible for funding, the preparation, filing and prosecution of all filings and regulatory applications required to obtain Regulatory Approval of Licensed Product in the KR
Territory. MN shall allow KR or KR Licensees free of charge the right to cross reference any IND or NDA owned or controlled by MN and relating to Compound or Licensed Product in order for KR or KR Licensees to obtain such Regulatory Approval in the
KR Territory. 
  
 2.2 Clinical Development Reports.

  
 (i) MN Reports. MN shall provide KR
with a written report on a semi-annual basis summarizing the status of MN’s preclinical and clinical development and regulatory filing activities with respect to Compound and Licensed Product in the MN Territory, with the delivery to KR of the
summary of the annual report to an IND submitted by MN or its sublicensees to the FDA or, if applicable, corresponding regulatory authorities in the MN Territory, in connection with the periodic reporting requirements of the IND, to be in
satisfaction of any report required by this sentence. Alternatively, any such report may be in the form of a meeting at a mutually acceptable location, a video conference or a teleconference. Any disclosures of such progress and results shall be
deemed Proprietary Information of MN. MN shall promptly notify KR upon the receipt of Regulatory Approvals and of the date of First Commercial Sale in the MN Territory. KR shall designate an appropriate representative of KR to receive such clinical
development and regulatory communications and to coordinate further correspondence between the Parties. KR’s initial designee shall be Toru Shionoya. 
  
 (ii) KR Reports. KR shall provide MN with a written report on a semi-annual basis summarizing the status of KR’s preclinical
and clinical development and regulatory filing activities with respect to (i) Ophthalmic Product in the KR Territory and the MN Territory; (ii) Compound and/or Licensed Product for the MS Indication in the KR Territory, and (iii) Compound and/or
Licensed Product for the Optional Indications in the KR Territory and the MN Territory if applicable, with the delivery to MN of the summary of the annual report to an IND submitted by KR or KR Licensees to the regulatory authorities in the KR
Territory (and in the MN Territory if applicable in the case of the Optional Indications or Ophthalmic Product, as applicable) in connection with the periodic reporting requirements of the applicable IND to be in 

  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 
satisfaction of any report required by this sentence. Alternatively, such report may be in the form of a meeting at a mutually acceptable location, a video
conference or a teleconference. Any disclosures of such progress and results shall be deemed Proprietary Information of KR. KR shall promptly notify MN upon the receipt of Regulatory Approvals and of the date of first commercial sale of (i)
Ophthalmic Product in the KR Territory or the MN Territory, (ii) Compound and/or Licensed Product for the Optional Indications in the MN Territory or the KR Territory, or (iii) Compound or Licensed Product for the MS Indication in the KR Territory.
MN shall designate an appropriate representative of MN to receive such clinical development and regulatory communications and to coordinate further correspondence between the Parties. MN’s initial designee shall be Takashi Kiyoizumi, M.D.,
Ph.D. 
  
 2.3 Excused Performance. The obligations of MN
under Section 2.1.(i) with respect to Compound and Licensed Product are expressly conditioned upon the absence of any serious adverse conditions relating to the safety or efficacy of Compound or Licensed Product including the absence of any action
by any regulatory authority limiting the development or commercialization of Compound or Licensed Product. 
  
 2.4 Manufacture of Compound and Licensed Product. MN shall be responsible for the manufacture and supply of Compound and Licensed Product for
preclinical, clinical and commercial purposes, in compliance with cGMP, in the MN Territory. In addition, no later than twelve (12) months prior to the earlier of the estimated first submission of an NDA by KR or KR Licensee for Regulatory Approval
of (i) Licensed Product for the MS Indication in the KR Territory, (ii) Licensed Product for the Optional Indications in either the KR Territory or the MN Territory if MN does not exercise the MN Option, or (iii) Ophthalmic Product in either the KR
Territory or the MN Territory, KR shall provide a written notice to MN (the “Supply Notice”) stating whether KR desires MN to be the exclusive manufacturer and supplier of Compound and/or Licensed Product for use in the KR Territory and/or
the MN Territory in the case of Compound for the Ophthalmic Product and Compound and/or Licensed Product for the Optional Indications and, if so, including a summary of KR’s proposed terms for a supply agreement between the Parties. After
receipt by MN of the Supply Notice, and if such proposed terms are acceptable to MN, the Parties shall negotiate in good faith to enter into a supply agreement containing commercially reasonable terms applicable to similar types of exclusive supply
agreements. 
  
 ARTICLE 3 
 LICENSE AND OPTION 
  
 3.1 License Grant to MN. KR hereby grants to MN an irrevocable, exclusive (even as to KR) license in the MN Territory under the KR Intellectual
Property Rights, including the right to grant sublicenses, to develop, use, offer for sale, make, have made, sell, import, distribute, and otherwise commercialize Compound and Licensed Product for the MS Indication (the “Initial License”).

  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 3.2 MN Option. KR hereby grants MN an exclusive option (the “MN Option”) to acquire an
exclusive (even as to KR) license in the MN Territory under the KR Intellectual Property Rights, including the right to grant sublicenses, to develop, make, have made, evaluate, use, offer for sale, market, sell, import, distribute, practice
processes and methods and otherwise commercialize Compound and Licensed Product for the Optional Indications on the terms and conditions set forth in this Section 3.2 (the “Expanded License”). 
  
 (i) In the event KR intends to develop or commercialize by
itself or through any Affiliate or to enter into discussions or negotiations with any Third Party to develop or commercialize Compound and/or Licensed Product for any Optional Indication(s) in the MN Territory, KR shall give written notice to MN of
such intention (the “Option Commencement Notice”). 
  
 (ii) MN shall have the right to exercise the MN Option by delivery to KR of a written notice of exercise (the “Notice of Exercise”) within thirty (30) days after the date it receives the Option Commencement
Notice. 
  
 (iii) If MN exercises the MN Option
by delivery to KR of the Notice of Exercise, then the Parties shall enter into an amendment to this Agreement to (i) provide for the grant by KR to MN of the Expanded License in exchange for royalties on Net Sales of Licensed Product for the
Optional Indications at the same rates and on the same terms and conditions as royalties on Net Sales of Licensed Product payable for the MS Indication in accordance with the grant of the Initial License hereunder; and (ii) revise and clarify any
other provisions of this Agreement as are deemed necessary or appropriate in view of the grant of the Expanded License, as may be mutually agreed to. 
  
 (iv) KR shall not grant to any Third Party any rights under the KR Intellectual Property Rights that are inconsistent or in conflict with
the rights granted by KR to MN under this Agreement. 
  
 (v) In the event the MN Option is not exercised by MN, KR shall in determining the presentation form or formulation of Licensed Product for the Optional Indications and in determining whether to market Licensed Product for the Optional
Indications in the MN Territory, have due regard to whether or not (a) the envisaged presentation form or formulation of Licensed Product for the Optional Indications or (b) marketing Licensed Product for the Optional Indications are likely to have
a significant adverse impact on the commercialization of Licensed Product for the MS Indication (including, without limitation, impact as a result of off label use or other unauthorized activities). 
  
 (vi) In the event the MN Option is not exercised by MN, and
if MN considers it necessary to do so, the Parties shall jointly retain a mutually agreed reputable organization such as IMS to monitor and track the respective sales of the Licensed Product for the MS Indications and the Optional Indications in the
MN Territory. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 3.3 Sublicense Rights. MN may grant sublicenses within the scope of the license granted to MN
under this Agreement to any Affiliate or Third Party; provided, however that any such sublicense shall be subject to the provisions of this Agreement. MN shall promptly inform KR of each such sublicensee and provide KR with a copy of the sublicense
agreements. In the event of any sublicense to a Third Party, the provisions of Section 4.8 shall be applicable. Upon termination of this Agreement pursuant to Section 9.3 by KR for an uncured material breach by MN, any existing sublicense
agreement(s) shall survive and shall be assigned by MN to KR without any cost to KR provided that (i) the sublicensee is not in material breach of its sublicense agreement at the time of such termination of this Agreement, (ii) any sublicensee who
desires its sublicense to survive shall promptly agree in writing to be bound by the applicable terms of and assume all obligations of MN under this Agreement, and (iii) KR does not have any commercially reasonable objection to such survival.

  
 3.4 Exchange of Information. MN hereby acknowledges
receipt of certain of KR Intellectual Property Rights prior to the execution of this Agreement. Upon execution of this Agreement, KR shall disclose to MN in writing all KR Intellectual Property Rights not previously disclosed. During the term of
this Agreement, and in addition to the other communications required under this Agreement, KR shall also promptly disclose to MN in Japanese or in English and in writing on an ongoing basis all KR Intellectual Property Rights and other information
developed in connection with KR’s activities relating to Compound, if any. 
  
 3.5 License Grant to KR. MN hereby grants to KR an exclusive royalty-free license including the right to grant sublicenses to KR Licensees to use all the preclinical and clinical and regulatory databases owned
by MN and developed in connection with MN’s performance of the Program solely to (i) obtain Regulatory Approval of and commercialize Compound and Licensed Product for the MS Indication in the KR Territory; (ii) provided the MN Option became
exercisable in accordance with Section 3.2 but MN did not exercise the MN Option, obtain Regulatory Approval of and commercialize Compound and Licensed Product in the KR Territory and the MN Territory for the Optional Indications; and (iii) obtain
Regulatory Approval of and commercialize Ophthalmic Product in the KR Territory and the MN Territory; provided, however, that upon termination of this Agreement pursuant to Section 9.3 by MN, KR shall pay royalties to MN equal to [**] of all
net sales of (i) Licensed Product for the MS Indication in the KR Territory, (ii) Licensed Product for the Optional Indications in the KR Territory and the MN Territory; and (iii) Ophthalmic Product in the KR Territory and the MN Territory, in each
case by KR or KR Licensees for a period of five (5) years from the date of such termination of this Agreement if KR or any KR Licensee uses the foregoing MN’s databases. In the event KR claims that KR or KR Licensee did not use such MN’s
databases or for any reason fails to make the royalty payments required by the preceding sentence, KR shall provide MN with copies of all regulatory submissions relating to Licensed Product for the MS Indication in the KR Territory or relating to
Licensed Product for the Optional Indications, or relating to Ophthalmic Product in the KR Territory or the MN Territory in order for MN to determine whether such submissions used MN’s databases (to the extent not already provided pursuant to
other provisions of this Agreement). 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 3.6 Adverse Events. In the event KR develops or commercializes Compound and/or Licensed Product
for the MS Indication in the KR Territory and/or develops and commercializes Compound and/or Licensed Product for the Optional Indications in the MN Territory or the KR Territory, and/or develops and commercializes Compound and/or Ophthalmic Product
in the MN Territory or the KR Territory, each Party shall promptly furnish to the other Party all information concerning safety of Compound, Licensed Product or Ophthalmic Product, such as adverse or unexpected side effects, injury or other events
associated with uses, studies, investigations or tests of Compound, Licensed Product or Ophthalmic Product, whether or not such Party is required to report such information to any regulatory authority and whether or not such event is determined to
be attributable to Compound, Licensed Product or Ophthalmic Product. The procedures for exchange of such information shall be discussed and agreed upon between the Parties in writing. 
  
 ARTICLE 4 
 PAYMENTS AND ROYALTIES 
  
 4.1 Up Front License
Fee. In consideration of the rights granted by KR hereunder, MN shall pay to KR [**], payable within ten (10) days after the execution of this Agreement by the Parties. 
  
 4.2 Milestone Payments. In further consideration of the rights granted by KR hereunder, MN shall pay KR the following
milestone payments, contingent upon occurrence of the specified event, with each milestone payment to be made no more than once with respect to the achievement of such milestone (but payable on the first achievement of such milestone): 

 

	 	(a)	[**] upon initiation of the first clinical trial (upon dosing of the first patient) in patients with multiple sclerosis in the MN Territory by MN or its sublicensees;

  

	 	(b)	[**] upon initiation of the first Phase 3 Clinical Trial (upon dosing of the first patient) in the United States by MN or its sublicensees; and 

  

	 	(c)	[**] upon receipt in writing of the first Regulatory Approval in the United States by MN or its sublicensees. 

  
 MN shall notify KR in writing within thirty (30) days after the first achievement of the
milestones specified above and payment of the appropriate milestone payment shall be payable with MN’s notices. The payments described in this Section 4.2 shall be payable only upon the initial achievement of each milestone, and no amounts
shall be due hereunder for any subsequent or repeated achievement of such milestones, regardless of the number of Licensed Products for which such milestone may be achieved. 
  
 The payments made under Section 4.1 above and this Section 4.2 shall not be refundable or creditable against royalties payable under Section
4.3 below. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 4.3 Royalties Payable by MN. In further consideration of the license granted by KR to MN herein,
during the Royalty Term, MN shall pay to KR royalties in the applicable percentage specified in Exhibit 4.3 attached hereto for Net Sales in each Royalty Year of Licensed Products by MN in the MN Territory. 
  
 4.4 Combination Product. Notwithstanding the foregoing, in the event a
Licensed Product is sold as a combination product with other chemically or biologically active components, Net Sales, for purposes of royalty payments on the combination product, shall be calculated by multiplying the Net Sales of that combination
product by the fraction A/B, where A is the gross selling price of Licensed Product sold separately and B is the gross selling price of the combination product. If no such separate sales are made by MN, Net Sales for royalty determination shall be
calculated by multiplying Net Sales of the combination product by the fraction C/(C+D), where C (excluding the fully allocated cost of the other chemically or biologically active component in question) is the fully allocated cost of the Compound and
D is the fully allocated cost of such other chemically or biologically active components. It is understood and agreed to between the Parties, however, that if the fully allocated cost of such other chemically or biologically active components
exceeds by a multiple of one hundred (100) the fully allocated cost of Compound, then the Parties shall discuss in good faith to determine a more appropriate method of calculating Net Sales for the combination product, consistent with the overall
intents and purposes of this Agreement; provided, however, that in no event shall the calculation of Net Sales under this Section 4.4 be less than fifty percent (50%) of the actual Net Sales of the combination product. 
  
 4.5 Third Party Royalties. If MN is compelled, including under Section
8.9, to obtain one (1) or more patent licenses from and to pay royalties to any Third Party in any country in the MN Territory in order to exercise its rights hereunder to practice any process or method, or to make, use or sell Compound or Licensed
Product, which is the subject of the Valid Patent Claim in such country, then fifty percent (50%) of the royalties actually paid to such Third Party by MN for sale of such Licensed Product for each Calendar Quarter in such country shall be
creditable against the royalty payments due KR with respect to the sale of such Licensed Product by MN in such country; provided, however, that MN shall first notify and discuss the foregoing with KR and that in no event shall the royalty rate
payable to KR under Section 4.3 be less than [**] of Net Sales. 
  
 4.6 One Royalty. No more than one (1) royalty payment shall be due with respect to a sale of a particular Licensed Product. No multiple royalties shall be payable because any Licensed Product, or its manufacture, sale or use is
covered by more than one (1) Valid Patent Claim. No royalty shall be payable under this Article 4 with respect to sales of Licensed Products among MN and its Affiliates for resale, nor shall a royalty be payable under this Article 4 with respect to
Licensed Products distributed for use in research and/or development, in clinical trials, as donations to non-profit institutions or government agencies or as promotional free samples. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 4.7 Compulsory Licenses. If a compulsory license is granted to a Third Party with respect to
Licensed Product in any country in the MN Territory with a royalty rate lower than the royalty rate provided in Exhibit 4.3, then the royalty rate to be paid by MN on Net Sales in that country under Exhibit 4.3 shall be adjusted to the same rate
paid by the compulsory Third Party licensee during the period of such compulsory license. 
  
 4.8 Sublicense Payments. In the event of any sublicense to a Third Party under Section 3.3 above in any country of the MN Territory in which MN is entitled to a lump sum and/or milestone payments and a royalty
based on net sales of Licensed Product by the sublicensee under the sublicense agreements, then in lieu of royalty payments on Net Sales as set forth in Exhibit 4.3 in such country, MN shall pay KR (i) [**] of royalty payments received by MN
based on net sales of Licensed Product by MN’s sublicensee and (ii) [**] of lump sum and/or milestone payments received by MN from MN’s sublicensee (other than payments made by MN’s sublicensee (x) to reimburse MN for MN’s
research and development expenditures, calculated in accordance with GAAP, or (y) as equity investments in MN). The provisions of Article 5 and Article 6 will apply where appropriate with respect to the amounts payable under this Section 4.8.

  
 4.9 Sakoda Agreement and Payments. KR shall be
responsible for performance and payment of, shall perform and pay and shall indemnify MN against any liability or claim for, any royalties or other payments, obligations or amounts owed to Sakoda pursuant to the Sakoda Agreement as a result of the
rights granted by KR to MN and the payments made by MN to KR under this Agreement. During the term of this Agreement, KR shall not amend, modify, or terminate the Sakoda Agreement without the prior written consent of MN, except to the extent such
amendment or modification relates to the financial terms. In the event that KR breaches or causes a default under the Sakoda Agreement, KR shall immediately notify MN of such situation as soon as practicable, and KR shall use its commercially
reasonable efforts to promptly cure such breach. If KR is unable to or does not cure such breach, KR shall (i) permit MN to cure such breach; provided, however, that any amounts paid by MN in connection with curing such breach shall be deducted from
any amounts payable by MN to KR under this Agreement; and (ii) use its best efforts to obtain an agreement from Sakoda to the effect that in the event that the Sakoda Agreement is terminated, Sakoda shall grant MN substantially equivalent rights on
substantially equivalent terms as those granted to KR pursuant to the Sakoda Agreement. 
  
 ARTICLE 5 
 ROYALTY REPORTS AND ACCOUNTING 
  
 5.1 Reports. During the Royalty Term, MN shall furnish to KR a written report for the Calendar Quarter showing on a
country by country basis, (a) the gross sales of all Licensed Products sold by MN in the MN Territory during such Calendar Quarter and the calculation of Net Sales from such gross sales; (b) the royalties, payable in United States dollars, which
shall have accrued hereunder based upon Net Sales of Licensed Products; (c) the withholding taxes, if any, required by law to be deducted in respect of such royalties; (d) the date of the First Commercial Sales of each Licensed Product in each
country in the MN Territory; and (e) the 

  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 
exchange rates used in determining the amount of United States dollars, as more specifically provided in Section 6.2 below. Reports shall be due ninety (90)
days following the close of each Calendar Quarter. MN shall keep complete and accurate records in sufficient detail to properly reflect all gross sales and Net Sales and to enable the royalties payable hereunder to be determined. 
  
 5.2 Audits. 
  
 (i) Audit Rights. Upon the written request of KR and
not more than once in each Calendar Year, MN shall permit an independent certified public accounting firm of nationally recognized standing, selected by KR and reasonably acceptable to MN, at KR’s expense, to have access during normal business
hours on at least ten (10) days’ prior written notice, to such of the records of MN as may be reasonably necessary to verify the accuracy of the royalty reports hereunder for any Royalty Year ending not more than thirty-six (36) months prior to
the date of such request. The accounting firm shall disclose to KR only whether the records are correct or not and the specific details concerning any discrepancies. No other information shall be shared. 
  
 (ii) Audit Results. If such accounting firm concludes
that additional royalties were owed during such period, MN shall pay the additional royalties within sixty (60) days of the date KR delivers to MN such accounting firm’s written report so concluding; provided, however, that, in the event that
MN shall not be in agreement with the conclusion of such report (a) MN shall not be required to pay such additional royalties and (b) such matter shall be resolved pursuant to the provisions of Section 11.6 herein. In the event such accounting firm
concludes that amounts were overpaid by MN during such period, MN shall have a credit against future royalties payable to KR in the amount of such overpayment; provided, however, that in the event that KR shall not be in agreement with the
conclusion of such report (a) MN shall not have such a credit and (b) such matter shall be resolved pursuant to the provisions of Section 11.6 herein. The fees charged by such accounting firm shall be paid by KR; provided, however, if the audit
discloses that the royalties payable by MN for the audited period are more than one hundred ten percent (110%) of the royalties actually paid for such period, then MN shall pay the reasonable fees and expenses charged by such accounting firm. Upon
the expiration of thirty-six (36) months following the end of any Royalty Year, the calculation of royalties payable with respect to such Royalty Year shall be binding and conclusive upon KR and MN shall be released from any liability or
accountability with respect to royalties for such Royalty Year. 
  
 (iii) Confidential Financial Information. KR shall treat all financial information subject to review under this Article 5 or under any sublicense agreement as confidential, and shall cause its accounting firm
to retain all such financial information in confidence. 
  

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 ARTICLE 6 
 PAYMENTS 
  
 6.1 Payment
Terms. Royalties shown to have accrued by each royalty report provided for under Article 5 of this Agreement shall be due and payable on the date such royalty report is due. Payment of royalties in whole or in part may be made in advance of such
due date. 
  
 6.2 Payment Method. All payments by MN to KR
under this Agreement shall be paid in United States dollars. If any currency conversion shall be required in connection with the payment of any royalties hereunder, such conversion shall be made by using the exchange rate for the purchase of U.S.
dollars reported by the Wall Street Journal on the last Business Day of the Calendar Quarter to which such royalty payments relate. 
  
 6.3 Exchange Control. If at any time legal restrictions prevent the prompt remittance of part or all royalties with respect to any country in the
MN Territory where Licensed Product is sold, MN shall have the right, at its option, to make such payments by depositing the amount thereof in local currency to KR’s account in a bank or other depository designated by KR in such country. If the
royalty rate specified in this Agreement should exceed the permissible rate established in any country in the MN Territory, the royalty rate in such country shall be adjusted to the highest legally permissible or government-approved rate.

  
 6.4 Withholding Taxes. MN shall be entitled to deduct
from any payment due KR under this Agreement the amount of any withholding taxes, value-added taxes or other taxes, levies or charges with respect to such amounts, other than United States taxes, payable by MN, or any taxes required to be withheld
by MN or its Affiliates, to the extent MN pays to the appropriate governmental authority on behalf of KR such taxes, levies or charges. MN shall use reasonable efforts to minimize any such taxes, levies or charges required to be withheld on behalf
of KR by MN. MN promptly shall deliver to KR proof of payment of all such taxes, levies and other charges, together with copies of all communications from or with such governmental authority with respect thereto. KR shall provide MN with all forms
or documentation required by any applicable taxation laws, treaties or agreements to such withholding or as necessary to claim a benefit thereunder (including, but not limited to, Form W-8BEN and any successor form). 
  
 ARTICLE 7 
 CONFIDENTIALITY AND PUBLICITY 
  
 7.1 Nondisclosure Obligations. Except as otherwise provided in this Article 7, (a) during the term of this Agreement and for a period of five (5) years thereafter, both Parties shall maintain in confidence and
use only for purposes of this Agreement information and data resulting from or related to the development of Compound or Licensed Products; (b) during the term of this Agreement, both Parties shall maintain in confidence and use only for purposes of
this Agreement information and data not described in clause (a) above resulting from or related to the Program; and (c) during the term of this Agreement and for a period of five (5) years thereafter, both Parties shall also maintain in confidence
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Agreement all information and data not described in clause (a) or (b) above but supplied by the other Party under this Agreement marked
“Confidential.” For purposes of this Article 7, information and data described in clause (a), (b) or (c) above shall be deemed “Proprietary Information.” 
  
 7.2 Permitted Disclosures. To the extent it is reasonably necessary or appropriate to fulfill its obligations or
exercise its rights under this Agreement, (a) a Party may disclose Proprietary Information which is otherwise obligated under this Article 7 not to disclose to its Affiliates, to KR Licensees, if the Party is KR, to its sublicensees, if the Party is
MN, and to its consultants, outside contractors and clinical investigators, on a need-to-know basis on condition that such Persons agree to keep the Proprietary Information confidential for the same time periods and to the same extent as such Party
is required to keep the Proprietary Information confidential; and (b) a Party (including MN’s sublicensees or KR Licensees) may disclose such Proprietary Information to government or other regulatory authorities to the extent that such
disclosure is required by applicable law (including without limitation all applicable securities laws), regulation, agency or court order, or is reasonably necessary to obtain patents or authorizations to conduct clinical trials with, and to
commercially market Licensed Product, provided that the disclosing Party shall provide written notice to the other Party and sufficient opportunity to object to such disclosure or to request confidential treatment thereof. The obligation not to
disclose or use Proprietary Information received from the other Party shall not apply to any part of such Proprietary Information that (i) is or becomes patented, published or otherwise part of the public domain other than by acts of the Party
obligated not to disclose such Proprietary Information in contravention of this Agreement; (ii) is disclosed to the receiving Party by a Third Party, provided such Proprietary Information was not obtained by such Third Party directly or indirectly
from the other Party under this Agreement on a confidential basis; (iii) prior to disclosure under this Agreement, was already in the possession of the receiving Party, provided such Proprietary Information was not obtained directly or indirectly
from the other Party under this Agreement; or (iv) is disclosed in a press release agreed to by both Parties, which agreement shall not be unreasonably withheld. 
  
 7.3 Publication. In the event a Party or consultant to such Party or MN’s sublicensees or KR Licensees wishes to
make a scientific publication relating to Compound or Licensed Product, it shall deliver to the other Party a copy of the proposed publication or an outline of the oral disclosure at least thirty (30) Business Days prior to submission or
presentation, such that any issue of patent protection can be resolved in accordance with the terms of this Agreement. 
  
 ARTICLE 8 
 INTELLECTUAL PROPERTY RIGHTS AND
INFRINGEMENT 
  
 8.1 Ownership of Improvements. The entire
right and title in all Improvements or other technology directed to the use of Licensed Product or Compound in the MS Indication, and all processes relating thereto, whether or not patentable, and any patent applications or patents based thereon,
made or conceived during and as a result of the Program by employees or others acting solely on behalf of MN shall be owned solely by MN. 
  

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 8.2 Ownership of Trademarks. MN shall select, own and maintain Trademarks for Licensed Product in
the MN Territory. The entire right and title in all Trademarks used by MN and, if applicable its sublicensees in the MN Territory shall be owned solely by MN. 
  

8.3 Patent Applications. 
  
 (i) Foreign Filing Decisions. KR shall determine whether patents or patent applications included in the KR Intellectual Property
Rights should be abandoned without replacement, abandoned and refiled, pursued within the country of original filing only, or used as the basis for a claim of priority under the Paris Convention or the Patent Cooperation Treaty for corresponding
applications in other countries in the MN Territory after consultation with MN, and subject to the provisions of Section 8.3.(ii). The Parties shall consult together to ensure that so far as practicable the specifications of the patent applications
filed in the United States and in other countries in the MN Territory contain the same information and claim at least the same scope of protection as sought in the priority country. 
  
 (ii) Prosecution and Maintenance. KR shall have the initial right to control the prosecution, grant
and maintenance of the KR Intellectual Property Rights in the MN Territory and the KR Territory, and to select all patent counsel or other professionals to advise, represent or act for it in all matters relating to the KR Intellectual Property
Rights. KR shall be responsible for the payment of all such patent prosecution and maintenance costs. MN shall have the right to control the prosecution, grant and maintenance of the MN Intellectual Property Rights in the KR Territory and the MN
Territory, and to select all patent counsel or other professionals to advise, represent or act for it in all matters relating to the MN Intellectual Property Rights. MN shall be responsible for the payment of all such patent prosecution and
maintenance costs. If KR elects under Section 8.3.(i) or this Section 8.3.(ii) not to file, prosecute or maintain a patent or patent application included in the KR Intellectual Property Rights in any country in the MN Territory, it shall provide MN
with written advance notice sufficient to avoid any loss or forfeiture, and MN shall have the right but not the obligation, at its sole expense, to file, prosecute or maintain such patent or patent application in MN’s name and KR shall assign
to MN all of KR’s right, title and interest in and to such patent or patent application, which shall no longer be deemed a KR Patent Asset. 
  
 8.4 Cooperation. Each Party shall make available as far as possible to the other Party or to the other Party’s authorized attorneys or agents,
each Party’s representatives, employees or consultants and any documents necessary or appropriate to enable the other Party to file, prosecute and maintain patent or patent applications, as set forth in Sections 8.3.(i) and 8.3.(ii) above, as
reasonably needed for a reasonable period of time. Where appropriate, each Party shall sign or cause to have signed all documents relating to said patent applications or patents at no charge to the other Party. 
  
 8.5 Enforcement of Intellectual Property Rights. MN shall have the
first right to enforce the KR Intellectual Property Rights against infringers in the MN Territory, and shall consult with KR both prior to and during said enforcement. KR shall have the first right to 

  

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enforce the KR Intellectual Property Rights against infringers in the KR Territory, and may consult with MN both prior to and during said enforcement. In the
event either Party learns of significant and continuing infringement of the KR Intellectual Property Rights, it shall promptly provide written notice to the other Party of the fact and supply such other Party with all evidence it possesses
pertaining to and establishing said infringement(s). 
  
 8.6
Procedure for Enforcement of Intellectual Property Rights. The Party having the first right to enforce the KR Intellectual Property Rights pursuant to this Article 8 (the “Enforcing Party”) shall have six (6) months from the date of
receipt of notice of request by the other Party or any shorter period stipulated by any statute to abate the infringement, or to file suit against at least one of the infringers, at the sole expense of the Enforcing Party, following consultation
with the other Party. If the Enforcing Party does not, within such six (6) months or shorter period, abate the infringement or file suit to enforce the KR Intellectual Property Rights against at least one infringer in a country in the MN Territory
or the KR Territory, as applicable, the other Party shall have the right to take whatever action it deems appropriate in its own name and its own expense to enforce the KR Intellectual Property Rights in its Territory, as applicable; provided,
however, that, within thirty (30) days after receipt of notice of the other Party’s intent to file such suit, the Enforcing Party shall have the right to jointly prosecute such suit. 
  
 8.7 Settlements. The Party controlling the action may not settle the action or otherwise consent to an adverse
judgment in such action that diminishes the rights or interests of the non-controlling Party without the express written consent of the non-controlling Party. Notwithstanding the foregoing, KR and MN shall cooperate with each other in the planning
and execution of any action to enforce the KR Intellectual Property Rights. Any recovery obtained by MN or KR shall be shared as follows: 
  
 (i) the Party that initiated and prosecuted, or maintained the defense of, the action shall recoup all of its costs and expenses
(including reasonable attorneys’ fees) incurred in connection with the action, whether the recovery is by settlement or otherwise; 
  
 (ii) the other Party then shall, to the extent possible, recover its costs and expenses (including reasonable attorneys’ fees)
incurred in connection with the action; 
  
 (iii)
if KR initiated and prosecuted, or maintained the defense of, the action, the amount of any recovery remaining then shall be retained by KR; and 
  
 (iv) if MN initiated and prosecuted, or maintained the defense of, the action, the amount of any recovery remaining shall be retained by
MN, except that KR shall receive a portion equivalent to the royalties it would have received in accordance with the terms of this Agreement if the amount of such remaining recovery was considered Net Sales. 
  
 8.8 Notification of Patent Term Restoration. The Parties shall
cooperate with each other in obtaining patent term restoration or supplemental protection certificates or their equivalents in any country where applicable to the KR Intellectual Property Rights in the MN Territory. MN shall notify KR of (a) the
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Intellectual Property Rights, giving the date of issue and patent number for each such patent, and (b) each notice pertaining to any patent included within
the KR Intellectual Property Rights pursuant to the Drug Price Competition and Patent Term Restoration Act of 1984 (the “1984 Act”), including notices pursuant to §§ 101 and 103 of the 1984 Act from Persons who have filed an
abbreviated NDA. Such notices shall be given promptly, but in any event within five (5) days of each such patent’s date of issue or receipt of each such notice pursuant to the 1984 Act, whichever is applicable. MN shall notify KR of each filing
for patent term restoration under the 1984 Act and all awards of patent term restoration (extensions) with respect to the KR Intellectual Property Rights. Likewise, KR or MN, as the case may be, shall inform the other Party of patent extensions and
periods of data exclusivity in the rest of the world regarding any Licensed Product. 
  
 8.9 Infringement Actions by Third Parties. If MN or its sublicensees or customers shall be sued by a Third Party for infringement of a patent held by such Third Party because of the manufacture, importation,
marketing, use, offer for sale or sale of Compound or Licensed Products, MN shall promptly notify KR in writing of the institution of such suit. MN shall have the first right, in its sole discretion, to control the defense of such suit at its own
expense, in which event KR shall have the right to be represented by advisory counsel of its own selection, at its own expense, and shall cooperate fully in the defense of such suit and furnish to MN all evidence and assistance in KR’s control.
If MN does not elect within thirty (30) days after such notice from MN to KR to so control the defense of such suit, KR may undertake such control at its own expense, and MN shall then have the right to be represented by advisory counsel of its own
selection and at its own expense, and MN shall cooperate fully in the defense of such suit and furnish to KR all evidence and assistance in MN’s control. The Party controlling the suit may not settle the suit or otherwise consent to an adverse
judgment in such suit that diminishes the rights or interests of the non-controlling Party without the express written consent of the non-controlling Party. Any Third Party royalty or other payments required to be paid as the result of a judgment or
settlement under this Section 8.9 shall be borne equally by the Parties, subject to the provisions of Article 12. 
  
 ARTICLE 9 
 TERM AND TERMINATION 
  
 9.1 Expiration. Unless terminated earlier pursuant to Section 9.2 or
9.3 below, this Agreement shall expire on the later of the expiration of the Royalty Term on a country-by-country basis or the expiration of the obligation to make payments by MN to KR under Sections 4.3 and 4.8. 
  
 9.2 Termination by MN. MN shall have the right, in its sole
discretion, to terminate this Agreement (a) with respect to the entire Agreement, or any country in the MN Territory in the event that a Third Party claims Compound infringes such Third Party’s intellectual property rights in such country in
the MN Territory, by providing not less than thirty (30) days prior written notice of such termination to KR or (b) with respect to the entire Agreement, or any country in the MN Territory with ninety (90) days written notice to KR, provided that
prior to 

  

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such termination, MN shall discuss with KR the reasons for such termination. Subject to the provisions of Section 9.4 below, the rights and obligations of KR
and of MN with respect to this Agreement in its entirety or with respect to the terminated country in the MN Territory, as applicable, shall terminate in the event of a termination pursuant to this Section 9.2; provided, however, that in the event
of a partial termination by MN under this Section 9.2, this Agreement shall continue in full force and effect with respect to the countries in the MN Territory unaffected by such partial termination. 
  
 9.3 Termination for Cause. Either Party may terminate this Agreement
upon or after the breach of any material provision of this Agreement by the other Party, if the breaching Party has not cured such breach within ninety (90) days after notice thereof from the non-breaching Party. This Agreement shall terminate, at
the option of the non-breaching Party, at the expiration of such ninety (90) day cure period; provided, however, that if the breach is not capable of being cured within ninety (90) days of such written notice, this Agreement may not be terminated so
long as the breaching Party commences and is taking commercially reasonable actions to cure such breach as promptly as practicable, provided that in such event, if the breach is not cured within one hundred eighty (180) days of such written notice,
the non-breaching Party shall have the right to terminate this Agreement. 
  
 9.4 Effect of Expiration and Termination. Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. MN and its sublicensees
shall have the right to sell or otherwise dispose of the stock of any Compound and Licensed Product subject to this Agreement then on hand or in process of manufacture, subject to Articles 4, 5 and 6. In addition to any other provisions of this
Agreement which by their terms continue after the expiration of this Agreement, the provisions of Article 7 shall survive the expiration or termination of this Agreement and shall continue in effect during the term set forth in Section 7.1. In
addition, any other provision required to interpret and enforce the Parties’ rights and obligations under this Agreement shall also survive, but only to the extent required for the full observation and performance of this Agreement. In the
event of termination of this Agreement in its entirety or for any country in the MN Territory by MN pursuant to Section 9.2 (b) or termination of this Agreement by KR pursuant to Section 9.3, MN shall, if requested to do so in writing by KR, grant a
license to KR or its designee under the MN Intellectual Property Rights, all INDs, NDAs and other existing Regulatory Approval obtained by MN in the MN Territory or in the terminated countries of the MN Territory, as applicable, to make, have made,
use and sell Compound and Licensed Product for the MS Indication on commercially reasonable terms to be negotiated in good faith between the Parties. In the event of termination of this Agreement in its entirety by MN pursuant to Section 9.2 (b) or
termination of this Agreement by KR pursuant to Section 9.3 prior to the completion of a Phase 2 clinical trial on Licensed Product, the foregoing license from MN to KR shall be royalty-free. Except as expressly set forth herein, the rights to
terminate as set forth herein shall be in addition to all other rights and remedies available under this Agreement, at law, or in equity, or otherwise. 
  

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 ARTICLE 10 
 REPRESENTATIONS AND WARRANTIES 
  
 The Parties hereby represent and warrant as follows: 
  
 10.1 Corporate Existence and Power. Such Party (a) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated; and (b) has the corporate power and authority
and the legal right to own and operate its property and assets, to lease the property and assets it operates under lease, and to carry on its business as it is now being conducted; 
  
 10.2 Authorization and Enforcement of Obligations. Such Party (a) has the corporate power and authority and the legal
right to enter into this Agreement and to perform its obligations hereunder and (b) has taken all necessary corporate action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This
Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms; 
  
 10.3 Consents. All necessary consents, approvals and authorizations of all governmental authorities and other Persons
required to be obtained by such Party in connection with this Agreement have been obtained; 
  
 10.4 No Conflict. The execution and delivery of this Agreement and the performance of such Party’s obligations hereunder (a) do not conflict with or violate any requirement of applicable laws or
regulations and (b) do not conflict with, or constitute a default under, any contractual obligation of such Party; and 
  
 10.5 Ownership, Validity and Non-Infringement. As of the Effective Date, KR represents and warrants that: (a) the KR Intellectual Property Rights
are owned or Controlled solely and exclusively by KR free and clear of any liens, charges and encumbrances, and no other person (including Sakoda), corporate or other private entity, or governmental or university entity or subdivision thereof, has
any valid claim of ownership with respect to the KR Intellectual Property Rights, whatsoever; (b) KR has not previously granted, and will not grant during the term of this Agreement, any right, license or interest in and to the KR Intellectual
Property Rights, or any portion thereof, inconsistent with the license granted to MN herein; (c) to KR’s best knowledge, KR is not aware of the existence of any references, omissions or conduct that would bring into question the validity or
enforceability of the KR Intellectual Property Rights; (d) there are no threatened or pending actions, suits, investigations, claims or proceedings in any way relating to the KR Intellectual Property Rights; (e) to KR’s best knowledge, the KR
Intellectual Property Rights and the contemplated development, importation or exportation, manufacture, use, offer for sale and sale of any Compound or Licensed Product do not infringe any patent rights owned or possessed by any Third Party; (f) KR
has disclosed to MN all information known by it that is reasonably believed by KR to be related to the KR Intellectual Property Rights (including all information received by KR concerning the institution or possible institution of any interference,
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any official proceeding involving the KR Patent Asset, and will continue such disclosure with respect to new events during the term of this Agreement) and
the activities contemplated under this Agreement; and (g) Exhibit 1.21 is a complete and accurate list of all patents and patent applications relating to Compound or Licensed Product and relating to the MS Indication owned or Controlled by KR.

  
 10.6 Sakoda Agreement. As of the Effective Date, KR
represents and warrants that (a) attached as Exhibit 1.42 is a true and complete (subject to redaction only of the financial terms) copy of the Sakoda Agreement, and that the English translation thereof is for the purpose of MN’s convenience
only, and in the event of any difference in interpretation of the Sakoda Agreement, the Japanese language thereof shall prevail; (b) neither KR nor Sakoda is in default under or in breach of any of the terms or provisions of the Sakoda Agreement,
and (c) the Sakoda Agreement is valid and in full force and effect and KR is not aware of any claims challenging the validity thereof. 
  
 10.7 Effect of Representations and Warranties. It is understood that if the representations and warranties made by a Party under this Article 10
are not true and accurate, and the other Party incurs damages, liabilities, costs or other expenses as a result, the Party making such representations and warranties shall indemnify and hold the other Party harmless from and against any such
damages, liabilities, costs or other expenses incurred as a result. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1 Force Majeure. Neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this
Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party including but not
limited to fire, floods, embargoes, power shortage or failure, war, acts of war (whether war be declared or not), terrorism, insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God or acts, omissions or
delays in acting by any governmental authority or the other Party. 
  
 11.2 Assignment. This Agreement may not be assigned or otherwise transferred, nor, except as expressly provided hereunder, may any right or obligation hereunder be assigned or transferred by either Party without the prior written
consent of the other Party; provided, however, that either KR or MN may, without such consent, assign this Agreement and its rights and obligations hereunder in connection with the transfer or sale of all or substantially all of its business, or in
the event of its merger or consolidation or change in control or similar transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement. 
  
 11.3 Severability. Each Party hereby acknowledges that it does not intend to violate any public policy, statutory or
common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries. Should one or more provisions of this Agreement be or become invalid, the Parties 

  

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shall substitute, by mutual consent, valid provisions for such invalid provisions which valid provisions in their economic effect are sufficiently similar to
the invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such provisions. In case such provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall
not affect the validity of this Agreement as a whole, unless the invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without such
invalid provisions. 
  
 11.4 Notices. Any consent, notice
or report required or permitted to be given or made under this Agreement by one of the Parties to the other shall be in writing, delivered personally or by facsimile or email (and promptly confirmed by personal delivery, U.S. first class mail or
courier), U.S. first class mail or courier, postage prepaid (where applicable), addressed to such other Party at its address indicated in the first paragraph of this Agreement, or to such other address as the addressee shall have last furnished in
writing to the addressor and (except as otherwise provided in this Agreement) shall be effective upon receipt by the addressee. 
  
 11.5 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to the
conflicts of law principles thereof. 
  
 11.6 Dispute
Resolution. (a) The Parties agree to attempt initially to solve all claims, disputes, or controversies arising under, out of, or in connection with this Agreement (a “Dispute”) by conducting good faith negotiations. Any Disputes which
cannot be resolved by good faith negotiation within twenty (20) Business Days from the initiation of such negotiation, shall be referred, by written notice from either Party to the other, to the Chief Executive Officer or its equivalent, of each
Party. Such Chief Executive Officers shall negotiate in good faith to achieve a resolution of the Dispute referred to them within twenty (20) Business Days after such notice is received by the Party to whom the notice was sent. If the Chief
Executive Officers are unable to settle the Dispute between themselves within such twenty (20) Business Days, they shall so report to the Parties in writing. The Dispute shall then be referred to mediation as set forth in the following subsection
(b). 
  
 (b) Upon the Parties receiving the Chief Executive
Officers’ report that the Dispute referred to them pursuant to subsection (a) has not been resolved, the Dispute shall be referred to mediation by written notice from either Party to the other. The mediation shall be conducted pursuant to the
LCIA Mediation Procedure. The place of the mediation shall be London, England and the language of the mediation shall be English. If the Parties have not reached a settlement within twenty (20) Business Days of the date of the notice of mediation,
the Dispute shall be referred to arbitration pursuant to subsection (c) below. 
  
 (c) If after the procedures set forth in subsections (a) and (b) above, the Dispute has not been resolved, a Party shall decide to institute arbitration proceedings, it shall give written notice to that effect to the
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proceedings for a period of sixty (60) days following such notice. During such period, the Parties shall continue to make good faith efforts to amicably
resolve the Dispute without arbitration. If the Parties have not reached a settlement during that period the arbitration proceedings shall go forward and be governed by the LCIA Arbitration Rules then in force. Each such arbitration shall be
conducted by a panel of three (3) arbitrators: one (1) arbitrator shall be appointed by each of MN and KR and the third arbitrator, who shall be the Chairman of the tribunal, shall be appointed by the two-Party appointed arbitrators. Any such
arbitration shall be held in New York, New York, USA and the language of the arbitration shall be English. 
  
 The tribunal shall issue its award within forty-five (45) days after the date on which the arbitration proceedings have closed. The arbitrators shall have
the authority to grant specific performance. Judgment upon the award so rendered may be entered in any court having jurisdiction or application may be made to such court for judicial acceptance of any award and an order of enforcement, as the case
may be. In no event shall a demand for arbitration be made after the date when institution of a legal or equitable proceeding based on Dispute would be barred by the applicable statute of limitations. Each Party shall bear its own costs and expenses
incurred in connection with any arbitration proceeding and the Parties shall equally share the cost of the mediation and arbitration levied by the LCIA. 
  
 11.7 Right to Develop Independently. Nothing in this Agreement shall be deemed to prevent MN from developing and commercializing products which are
similar to or competitive with Compound or Licensed Product so long as MN is using commercially reasonable efforts to develop and commercialize Licensed Product as specified in sub-section 2.1.(i). 
  
 11.8 Compliance with Laws. Either Party shall furnish to the other
Party any information requested or required by that Party during the term of this Agreement or any extensions hereof to enable that Party to comply with the requirements of any U.S., Japan or foreign, federal, state and/or governmental agency.

  
 11.9 LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE
LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY. 
  

11.10 Further Assurances. At any time or from time to time on and after the date of this Agreement, each Party shall at the request of the other
(i) deliver to the other such records, data or other documents consistent with the provisions of this Agreement, (ii) execute, and deliver or cause to be delivered, all such consents, documents or further instruments of transfer or license, and
(iii) take or cause to be taken all such actions, as the other Party may reasonably deem necessary or desirable in order for the other Party to obtain the full benefits of this Agreement and the transactions contemplated herein. 
  
 11.11 Entire Agreement. This Agreement contains the entire
understanding of the Parties with respect to the subject matter hereof. All express or implied agreements and understandings, either oral or written, heretofore made are expressly superseded by this 

  

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Agreement. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties. 
  
 11.12 Headings. The captions to the several Articles and Sections
hereof are not a part of this Agreement, but are merely guides or labels to assist in locating and reading the several Articles and Sections hereof. 
  
 11.13 Independent Contractors. It is expressly agreed that KR and MN shall be independent contractors and that the relationship between the Parties
shall not constitute a partnership, joint venture or agency. Neither KR nor MN shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the
prior written consent of the other Party to do so. 
  
 11.14
Waiver. The waiver by either Party of any right hereunder or the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by said other Party whether of a
similar nature or otherwise. 
  
 11.15 Counterparts. This
Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 ARTICLE 12 
 INDEMNIFICATION 
  
 12.1 Indemnification by MN. MN
shall indemnify, defend and hold KR and KR Licensees and their respective officers, directors, shareholders, agents and employees (“KR Indemnified Party”) harmless against any and all claims, liability, damage, loss, cost or expense
(including reasonable attorney’s fees) (collectively, “Losses”) incurred by KR arising or resulting from any Third Party claim made or suit brought against KR or any KR Indemnified Party to the extent any such Losses arise out of (i)
any breach by MN of any of its representations or warranties in this Agreement; (ii) MN’s negligence or willful misconduct; or (iii) the development, use, importation, promotion, marketing, commercialization, distribution and sale of Compound
or Licensed Product by MN; provided, however, that MN shall not be required to indemnify KR or any KR Indemnified Party to the extent it is determined that the Losses resulted from the negligence or willful misconduct of KR or any such KR
Indemnified Party or if KR would be required to indemnify MN under Section 12.2 below. MN shall use its commercially reasonable efforts to have its sublicensees indemnify, defend and hold KR and any KR Indemnified Party harmless against Losses in a
substantially similar way under the sublicense agreement; provided, however, that in the event that MN fails to execute such sublicense agreement containing such indemnification provision, MN shall on behalf of its sublicensees, indemnify, defend
and hold KR and KR Indemnified Party harmless against Losses in the same manner as provided in this Section 12.1. 
  

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 12.2 Indemnification by KR. KR shall indemnify, defend and hold MN and its sublicensees and their
respective officers, directors, shareholders, agents and employees (“MN Indemnified Party”) harmless against any and all Losses incurred by MN arising or resulting from any Third Party claim made or suit brought against MN or any MN
Indemnified Party to the extent any such Losses arise out of (i) any breach by KR of any of its representations or warranties in this Agreement, (ii) KR’s negligence or willful misconduct; or (iii) the development, manufacture, use,
importation, promotion, marketing, commercialization, distribution and sale of Compound or Licensed Product by KR; provided, however, that KR shall not be required to indemnify MN or any MN Indemnified Party to the extent it is determined that the
Losses resulted from the negligence or willful misconduct of MN or any such MN Indemnified Party or if MN would be required to indemnify KR under Section 12.1 above. 
  
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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 
  

			
	 MEDICINOVA, INC.

		
	By:	 	 /s/ Takashi Kiyoizumi

	 	 	 Name: Takashi Kiyoizumi, M.D., Ph.D.

	 	 	 Title: President and CEO

  

			
	 KYORIN PHARMACEUTICAL CO., LTD.

		
	By:	 	 /s/ Ikuo Ogihara

	 	 	 Name: Ikuo Ogihara

	 	 	 Title: President

  

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 EXHIBIT 1.7 
  
 [**] 
  

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 EXHIBIT 1.21 
  
 [**] 
  

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 EXHIBIT 1.42 
  
 SAKODA AGREEMENT 
  
 (See Attached) 
  

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 EXHIBIT 4.3 
  
 ROYALTY RATES 
  
 For Licensed Products sold in the U.S. 
  

			
	 Annual Net Sales

	  	 Royalty Rate

	 Annual Net Sales for the first [**]
	  	[**]
	 For annual Net Sales more than [**] but less than [**]
	  	[**]
	 For annual Net Sales more than [**]
	  	[**]

  
 Example: If annual Net Sales is
[**] for sale of Licensed Products in the U.S., the royalty shall be calculated as [**] x [**] plus [**] x [**] = [**]. 
  
 For Licensed Products sold in non-U.S. countries within the MN Territory where a Valid Patent Claim and/or Market Exclusivity exists and
Licensed Product is not subject to Generic Competition: 
  

			
	 Annual Net Sales

	  	 Royalty Rate

	 Annual Net Sales for the first [**]
	  	[**]
	 For annual Net Sales more than [**] but less than [**]
	  	[**]
	 For annual Net Sales more than [**]
	  	[**]

  
 For Licensed Products sold in non-U.S.
countries within the MN Territory where neither a Valid Patent Claim nor Market Exclusivity exists and Licensed Product is not subject to Generic Competition, a royalty rate equal to [**] of Net Sales in such country. 
  

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 Exhibit 1.42—FOR MN’S CONVENIENCE PURPOSES ONLY (Translation) 
  
 COVENANT 
  
 This Covenant is made by Saburo Sakoda, M.D. (“DR. SAKODA”) and KYORIN Pharmaceutical Co., Ltd.
(“KYORIN”) 
  
 WHEREAS, DR. SAKODA and KYORIN have
entered into a letter agreement as of June 10, 2004, pursuant to which (1) DR. SAKODA consents that KYORIN grants to MediciNova, Inc., a Delaware corporation (“MEDICINOVA”), an exclusive license, with the right to grant sublicenses, to
exercise KYORIN’s and DR. SAKODA’s joint right, title and interest in, to and under the patent “REMEDIES FOR MULTIPLE SCLEROSIS” for which DR. SAKODA and KYORIN jointly filed an international application (PCT Pub. No.:
[**], the “PATENT”), in the United States of America, Canada and the contracting states of European Patent Convention (the “TERRITORY”), and (2) KYORIN agrees that in the event that MEDICINOVA launches a product containing
Ibudilast with the indication “multiple sclerosis” (the “PRODUCT”) in the TERRITORY, KYORIN shall pay to DR. SAKODA certain amount of compensation; and 
  
 WHEREAS, such letter agreement anticipates the execution of a document setting forth the amount of compensation and payment
method thereof, among other things; 
  
 NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants provided herein, the parties hereby agree as follows: 
  
 ARTICLE I (PURPOSES) 
  
 DR. SAKODA, for good and valuable consideration, the receipt of which is hereby acknowledged, grants an exclusive (even as to himself) license, with the
right to grant sublicenses, to KYORIN under DR. SAKODA’s right, title and interest in, to and under the PATENT in the TERRITORY. DR. SAKODA further covenants not to exercise his right, title and interest in, to and under the PATENT by himself
or through a license or other arrangement including, but not limited to, an assignment of the PATENT, to any third party in the TERRITORY. DR. SAKODA further authorizes KYORIN to grant to MEDICINOVA the first right to enforce his right, title and
interest in, to and under the PATENT against infringers in the TERRITORY, and DR. SAKODA agrees not to enforce by himself or through a third party his right, title and interest in, to and under the PATENT against infringers in the TERRITORY.

  
 ARTICLE II (COMPENSATION) 
  
 (note) The sentences relating to the compensation are deducted, as they are
not necessary. 
  
 The obligation of KYORIN to pay compensation to
DR. SAKODA shall continue in effect until the expiration of the PATENT on a country-by-country basis in the TERRITORY. 
  
 ARTICLE III (COMPENSATION REPORTS AND PAYMENT) 
  
 (note) The sentences relating to the method of payment are deducted, as they are not necessary. 
  
 ARTICLE IV (CONFIDENTIALITY) 
  
 Each party (the “ACQUIRING PARTY”, as the case may be) shall keep
the contents of this Agreement and all confidential and proprietary information of the other party acquired in connection with this Covenant (the “CONFIDENTIAL INFORMATION”) in confidence, and shall not disclose without prior written
consent of the other party the CONFIDENTIAL INFORMATION to any third party; provided, however, that the obligation to keep the CONFIDENTIAL INFORMATION in confidence shall not apply to any part of the CONFIDENTIAL INFORMATION that: 
  

	 	(a)	is published or otherwise part of the public domain at the time of acquisition; 

  

	 	(b)	becomes published or otherwise part of the public domain other than by acts or omissions of the ACQUIRING PARTY; 

  

	 	(c)	the ACQUIRING PARTY can demonstrate, was already in its possession prior to acquisition; 

  

	 	(d)	the ACQUIRING PARTY can demonstrate, is disclosed to it by a third party having a legal right to do so without any restriction; or 

  

	 	(e)	is legally required to be disclosed by any governmental authority; provided, however, that the ACQUIRING PARTY shall notify the other party in writing to that effect in advance.

  
 ARTICLE V (TERM AND TERMINATION) 
  
 (1) This Covenant shall become effective on the date hereof and shall
continue in effect until the expiration of KYORIN’s obligation to pay compensation to DR. SAKODA pursuant to ARTICLE II; provided, however, that in the event that MEDICINOVA, or its sublicensee, ceases to exercise the PATENT in whole countries
of the TERRITORY due to termination of the agreement between KYORIN and MEDICINOVA and KYORIN no longer receives the consideration from MEDICINOVA, this Covenant shall be automatically terminated on such termination date. In such event, KYORIN shall
promptly inform DR. SAKODA to that effect in writing. 
  
 (2) DR.
SAKODA may terminate this Covenant upon or after the breach or delay of the performance of any provision of this Covenant by KYORIN, if KYORIN has not cured such breach or delay within sixty (60) days after notice to cure such breach or delay from
DR. SAKODA. DR. SAKODA will also deliver such notice to MEDICINOVA and shall accept MEDICINOVA’s tender made within such sixty (60) days to cure such breach or delay if KYORIN has not already cured within such time. 
  
 (3) Notwithstanding the provisions of (1) and (2) of this Article, the
provisions of Article IV shall survive the expiration or termination of this Covenant. 
  
 ARTICLE VI (Good Faith Negotiation) 
  
 DR. SAKODA and KYORIN shall, through a good faith negotiation, try to resolve a matter not specifically provided herein or where question to the interpretation arises under this Covenant. 
  
 IN WITNESS WHEREOF, the parties have executed this Covenant. 
  
 August 3, 2004 
  

			
	 SABURO SAKODA

	 	 	11-2-104, Kawanishicho, Ashiya,
Hyogo 659-0072, Japan
		
	By:	 	 /s/ Saburo Sakoda

	 Name:
	 	 Saburo Sakoda, M.D.

	
	 KYORIN PHARMACEUTICAL CO., LTD.

	 	 	5, Kanda Surugadai 2-chome, Chiyoda-ku, Tokyo 101-8311, Japan
		
	By:	 	 /s/ Toshiro Takusagawa

	 Name:
	 	Toshiro Takusagawa
	 Title:
	 	 Senior Executive Officer

	 	 	 Executive Director

  

	**	CERTAIN INFORMATION (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST. AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

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