Document:

Manufacturing Services Agreement

 Exhibit 10.10 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 MANUFACTURING SERVICES AGREEMENT 
 This MANUFACTURING SERVICES AGREEMENT (“Agreement”) is made this 27th day of March, 2007, by and between Cardinal Health PTS, LLC, having a place of business at 4401 Alexander Blvd NE,
Albuquerque, NM 87107 (“Cardinal Health”) and Targanta Therapeutics, Corp. (“Targanta”), having its principal place of business at 225 South East Street, Suite 390, Indianapolis, IN 46202. 
  

	 	A.	Cardinal Health provides contract pharmaceutical development, manufacturing, packaging, analytical, and sales and marketing services to the pharmaceutical industry.

  

	 	B.	Targanta has certain technology relating to the certain pharmaceutical products and wants Cardinal Health to assist in the formulation, filling, packaging and testing on such
products as provided in this Agreement and the attachments hereto. 

  

	 	C.	Targanta desires to engage Cardinal Health to provide certain services to Targanta in connection with the processing of Targanta’s Product (defined below); and Cardinal Health
desires to provide such services pursuant to the terms and conditions set forth in this Agreement. 

 NOW, THEREFORE, in
consideration of the mutual covenants, terms and conditions set forth below, the parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 The following terms have
the following meanings in this Agreement: 
  

	1.1	“Affiliate(s)” means any corporation, firm, partnership or other entity which controls, is controlled by or is under common control with a party. For purposes of this
definition, “control” shall mean the ownership of at least fifty percent (51%) of the voting share capital of such entity or any other comparable equity or ownership interest. 

  

	1.2	“API” means the active pharmaceutical ingredient used in the manufacture of the Product as identified in the Specifications. 

  

	1.3	“Applicable Laws” means all laws, ordinances, rules and regulations within the Territory applicable to the Processing of Product or any aspect thereof and the obligations
of Cardinal Health or Customer, as the context requires, including, without limitation, (i) all applicable federal, state and local laws and regulations of each Territory; (ii) the U.S. Federal Food, Drug and Cosmetic Act, and
(iii) the Good Manufacturing Practices promulgated by the Regulatory Authorities, as amended from time to time (“GMPs”). 

	1.4	“Batch” means a specific quantity of a Product comprising a number of units of Product mutually agreed upon between the parties, and that (a) is intended to have
uniform character and quality within specified limits, and (b) is Processed according to a single manufacturing order during the same cycle of Processing. 

  

	1.5	“Calendar Quarter” means a period of three (3) consecutive months commencing on January 1, April 1, July 1 or October 1 of any calendar
year. 

  

	1.6	“Cardinal Health Materials” shall have the meaning set forth in Article 12. 

  

	1.7	“Change Order” shall have the meaning set forth in Section 4.5(a). 

  

	1.8	“Commencement Date” means the first date upon which a Regulatory Authority approves Cardinal Health as a manufacturer of one of the Products. 

  

	1.9	“Confidential Information” is as defined in Section 11.2. 

  

	1.10	“Contract Year” means each consecutive twelve (12) month period beginning on the Commencement Date. 

  

	1.11	“Targanta Materials” shall have the meaning set forth in Article 12. 

  

	1.12	“Defective Product” shall have the meaning set forth in Section 5.2. 

  

	1.13	“Delayed Approval Fee” shall have the meaning set forth in Section 7.4. 

  

	1.14	“Dispute” shall have the meaning set forth in Section 18.9. 

  

	1.15	“Dosage Container” means any final dosage form container(s) the parties may agree upon in writing from time to time. 

  

	1.16	“Effective Date” means the date this Agreement was fully executed. 

  

	1.17	“Facilities” means Cardinal Health’s facilities located in Albuquerque, NM, San Diego, CA and Philadelphia, PA or such other facility as agreed by the parties as
identified more specifically in the Quality Agreement. 

  

	1.18	“FDA” means the United States Food and Drug Administration, and any successor entity thereto. 

  

	1.19	“Firm Commitment” shall have the meaning set forth in Section 4.2. 

  

	1.20	“Intellectual Property” means all intellectual property (whether or not patented), including without limitation, patents, patent applications, know-how, trade secrets,
copyrights, trademarks, designs, concepts, technical information, manuals, standard operating procedures, instructions or specifications. 

  

 2 

	1.21	“Minimum Requirement” shall have the meaning set forth in Section 4.1. 

  

	1.22	“Process”, “Processed”, or “Processing” means the sterile compounding, filling, producing and/or packaging of the API and Raw Materials into Product in
accordance with the Specifications and the terms and conditions set forth in this Agreement. 

  

	1.23	“Processing Date” means the day on which the Product is to be first Processed by Cardinal Health. 

  

	1.24	“Product” means the fully compounded bulk drug solution Processed into Dosage Containers and packaged in accordance with the Specifications. 

  

	1.25	“Purchase Order” shall have the meaning set forth in Section 4.3. 

  

	1.26	“Raw Materials” means all raw materials, supplies, components and packaging necessary to manufacture and ship the Product in accordance with the Specifications, as
provided in Exhibit A, but not including the API. 

  

	1.27	“Regulatory Approval” shall have the meaning set forth in Section 7.4. 

  

	1.28	“Regulatory Authority” means any governmental regulatory authority within a Territory involved in regulating any aspect of the development, manufacture, market approval,
sale, distribution, packaging or use of the Product. 

  

	1.29	“Review Period” shall have the meaning set forth in Section 5.1. 

  

	1.30	“Rolling Forecast” shall have the meaning set forth in Section 4.2. 

  

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

  

	1.32	“Specifications” means the procedures, requirements, standards, quality control testing and other data and the scope of services set forth in the master batch record
and/or master packaging batch record applicable to the Product, as amended in accordance with the terms of Article 8 of this Agreement. 

  

	1.33	“Term” shall have the meaning set forth in Section 15.1. 

  

	1.34	“Territory” means the United States of America and any other country which the parties agree in writing to add to this definition of Territory in an amendment to this
Agreement. 

  

	1.35	“Unit Pricing” shall have the meaning set forth in Section 7.1. 

  

 3 

	1.36	“Validation Batches” shall mean each Batch of Product manufactured by Cardinal Health which is necessary to support the validation portion of Targanta’s NDA or ANDA
submission to the FDA. 

 ARTICLE 2 
 VALIDATION, PROCESSING & RELATED SERVICES 
 2.1 Validation Services. Cardinal Health shall perform
the qualification, validation and stability services described in Exhibit A and Exhibit B of this Agreement for the prices specified therein. 
 Supply and Purchase of Product. During the Term, Cardinal Health shall Process the Products in accordance with the Specifications, the Applicable Laws and the terms and conditions of this Agreement. Targanta shall purchase the
Product from Cardinal Health in accordance with the terms and conditions of this Agreement. 
 2.3 Other Related Services. Cardinal Health shall
provide other services upon terms and conditions agreed to by the parties in writing from time to time. 
 ARTICLE 3 
 MATERIALS 
 3.1 API. Targanta shall supply to
Cardinal Health for Processing, at Targanta’s sole cost, the API and applicable reference standards in quantities sufficient to meet Targanta’s requirements for each Product as further set forth in Article 4. Prior to delivery of any of
the API or reference standard to Cardinal Health for Processing, Targanta shall provide to Cardinal Health a copy of the API Material Safety Data Sheet (“MSDS”), as amended, and any subsequent revisions thereto. Targanta shall supply the
API, reference standards, and Certificate of Analysis FOB the Facility no later than [*] before the scheduled Processing Date upon which such API will be used by Cardinal Health. Upon receipt of the API, Cardinal Health shall conduct identification
testing of the API. Cardinal Health will bear risk of loss of the API while the API is held at Cardinal Health’s Facility, subject to the limitations of liability in Section 16.1. Cardinal Health shall use the API solely and exclusively
for Processing under this Agreement. 
 3.2 Raw Materials. Cardinal Health shall be responsible for procuring, inspecting and releasing adequate Raw
Materials as necessary to meet the Firm Commitment, unless otherwise agreed to by the parties in writing. If Targanta requires a specific supplier for any Raw Material, Targanta shall be responsible for the timeliness, quantity and quality of supply
of such Raw Materials. Targanta will be responsible for all costs associated with qualification of a new supplier of a Raw Material not previously qualified by Cardinal Health. Unless a particular Raw Material can be replaced with the same raw
material from another supplier, Cardinal Health shall not be liable for any delay in delivery of Product if (i) Cardinal Health is unable to obtain, in a timely manner, a particular Raw Material necessary to Process the Product, and
(ii) Cardinal Health placed orders for such Raw Materials promptly following receipt of Targanta’s Firm Commitment. 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions. 
  

 4 

 3.3 Artwork and Packaging. Targanta shall provide or approved, prior to the procurement of applicable components,
all artwork, advertising and packaging information necessary to Process the Product. Such artwork, advertising and packaging information is and shall remain the exclusive property of Targanta, and Targanta shall be solely responsible for the content
thereof. Such artwork, advertising and packaging information or any reproduction thereof may not be used by Cardinal Health following the termination of this Agreement, or during the Term of this Agreement in any manner other than solely for the
purpose of performing its obligations hereunder. 
 3.4 Reimbursement for Materials. In the event of (i) a Specification change for any reason,
(ii) termination or expiration of this Agreement; or (iii) obsolescence of any Raw Materials, Targanta shall bear the cost of any unused Raw Materials, provided that Cardinal Health purchased such Raw Materials in quantities consistent
with the [*] of Targanta’s Rolling Forecast and any minimum purchase obligations required by the Raw Material supplier. If materials were purchased by Cardinal Health in quantities exceeding the [*] of Targanta’s Rolling Forecast and such
materials become obsolete, then Cardinal Health shall bear the cost of the unused Raw Materials. 
 ARTICLE 4 
 [*], PURCHASE ORDERS & FORECASTS 
 4.1 [*].
Beginning in [*] and during each [*] of the Term of this agreement, the [*], provided, however that the parties agree that [*] of Product for delivery during the [*]. For clarity, Product [*] shall not satisfy the [*]. If [*], within [*] after the
end of such [*], [*] the difference between (i) the [*] if the [*] had been fulfilled for the Product and (ii) the [*] for the Product during the just-concluded [*]. Cardinal Health shall notify Targanta of acceptance of the [*] of
receipt. Cardinal Health shall not be obligated to supply more than [*] in any [*]. 
 4.2 Forecasts and Purchase Orders. On or before the [*],
beginning [*] the anticipated Commencement Date, Targanta shall furnish to Cardinal Health a [*] rolling forecast of the quantities of Product that Targanta intends to order from Cardinal Health during such period (“Rolling Forecast”). The
[*] of such Rolling Forecast shall constitute a binding order for the quantities of Product specified therein (“Firm Commitment”) and the following [*] of the Rolling Forecast shall be non-binding, good faith estimates. Targanta shall
provide a binding, non-cancelable purchase order for the Firm Commitment portion of the Rolling Forecast at the same time that it submits the Rolling Forecast. Such purchase order shall specify the actual number of Batches to be Processed, the
approximate number of Dosage Containers in each Batch, and the requested delivery dates for each Batch. Cardinal Health shall notify Targanta of acceptance of the Rolling Forecast and Purchase Order or of any amended terms within [*] of receipt. In
the event of a conflict between the terms of any Rolling Forecast or Purchase Order and this Agreement, this Agreement shall control. Notwithstanding the foregoing, Cardinal Health shall use [*] to supply Targanta with quantities of Product which
are in excess of the quantities specified in the Firm Commitment. 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted
portions. 
  

 5 

 4.4 Cancellation of Purchase Orders Due to Failure to Ship API. In the event Targanta refuses or fails to make
scheduled deliveries of the API as required by Section 3.1 of this Agreement, Targanta shall notify Cardinal Health when it expects to make such delivery. If Cardinal Health does not receive such API at least [*] prior to the expected
Processing Date, Cardinal Health may cancel all, or any part of, the Purchase Order relative to the API that was not shipped as scheduled, and Cardinal Health shall have no further obligations or liability with respect to this particular Purchase
Order for material which API was not shipped on time to meet production schedule requirements. 
 4.5 Unplanned Delay or Elimination of Processing.
Cardinal Health shall use [*] to meet the Purchase Orders where API shipment has been delayed, subject to the terms and conditions of this Agreement in Section 4.4. Cardinal Health shall provide Targanta with [*] if Cardinal Health determines
that any Processing will be delayed or eliminated for any reason. This Section 4.5 for unplanned delay or elimination of Processing is specifically tied to failure of Targanta to ship required API on time. 
 ARTICLE 5 
 TESTING; SAMPLES; RELEASE

 5.1 Sample; Testing; Acceptance. Targanta shall notify Cardinal Health within [*] following delivery of Product to Targanta if Targanta has
determined that such Product does not conform to Specifications and shall provide Cardinal Health a sample of such non-conforming Product. If Cardinal Health agrees that the Batch is non-conforming, Cardinal Health shall, at Targanta’s option,
re-perform the services in accordance with this Article, or credit any payments made by Targanta for such Product. If Cardinal Health does not agree with Targanta’s determination that such Product fails to meet the Specifications, then after
reasonable efforts to resolve the disagreement, either party may submit a sample of such Product to a mutually agreed upon independent third party laboratory to determine whether the Product meets the Specifications. The independent party’s
results shall be final and binding. Unless otherwise agreed to by the parties in writing, the costs associated with such testing and review shall be borne by the non-prevailing party. 
 5.2 Replacement of Defective Product. In accordance with the terms set forth in this Agreement, Cardinal Health shall replace, [*], all Product that does not comply with the Specifications (“Defective
Product”). THE OBLIGATION OF CARDINAL HEALTH TO (I) REPLACE DEFECTIVE PRODUCT IN ACCORDANCE WITH THE SPECIFICATIONS OR CREDIT TARGANTA FOR SUCH DEFECTIVE PRODUCT AND (II) REIMBURSE TARGANTA FOR [*] THE SUPPLIED MATERIALS (INCLUDING WITHOUT
LIMITATION [*]) RENDERED UNUSEABLE DUE TO USE IN SUCH DEFECTIVE PRODUCT ([*]) SHALL BE TARGANTA’S [*] UNDER THIS AGREEMENT FOR DEFECTIVE PRODUCT AND IS [*]. 
 5.3 Supply of Material for Replacement Product. In the event Cardinal Health is required to replace Product pursuant to Section 5.2, above, Targanta shall supply Cardinal Health with sufficient quantities of the API [*].
Material will be supplied to Cardinal Health by Targanta as necessary for Cardinal Health to complete such replacement. Cardinal Health will use [*] to meet scheduling requirements for Replacement Product. 
  

 *Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 6 

 ARTICLE 6 
 DELIVERY 
 6.1 Delivery. Cardinal Health shall segregate and store all Product until acceptance as set forth
in Section 5.1 above. Cardinal Health shall tender the Product for delivery, [*]. [*] shall be responsible for all costs and risk of loss associated with shipment of the Product. [*] shall designate acceptable carriers to ship the Product and
then designate the priority of such qualified carriers [*]. 
 6.2 Failure to Take Delivery. If Targanta fails to take delivery on any scheduled
delivery date, Targanta shall be invoiced [*] for the stored Product [*]. For each such batch of undelivered Product, Targanta agrees that: (i) Targanta has made a fixed commitment to purchase such Product, (ii) risk of ownership for such
Product passes to Targanta, (iii) such Product shall be on a bill and hold basis for legitimate business purposes, (iv) if no delivery date is determined at the time of billing, Cardinal Health shall have the right to ship the Product to
Targanta [*] after billing, and (v) Targanta will be responsible for any decrease in market value of such Product that relates to factors and circumstances outside of Cardinal Health’s control. Within [*] following a written request from
Cardinal Health, Targanta shall provide Cardinal Health with a letter confirming items (i) through (v) of this Section for each Batch of undelivered Product. 
 ARTICLE 7 
 PRICING AND PAYMENT 
 7.1 Pricing. Targanta shall pay to Cardinal Health the unit pricing set forth on Exhibit B (“Unit Pricing”) for all Product. In addition, Targanta shall pay Cardinal Health for certain
regulatory support services as set forth on Exhibit B. In the event Targanta requests any other services, Cardinal Health shall provide a written quote of the fee for such additional services and Targanta shall advise Cardinal Health whether
it wishes to have such additional services performed by Cardinal Health. 
 7.2 Price Increase. Cardinal Health may implement an increase in the Unit
Price [*] following completion of the [*] in accordance with the total percentage change in the Producer Price Index, Pharmaceutical Preparations (Series ID PCU325412325412) (“PPI”) as published by the U.S. Department of Labor, Bureau of
Labor Statistics over the [*] preceding the date of such price increase, provided, however, that the amount of such price increase shall be [*] in any [*] regardless of the change in the PPI. Notwithstanding the foregoing, if Cardinal
Health’s cost for any Raw Material increases by more than [*], Cardinal Health shall be entitled to increase the Unit Price by [*]. In such event, Cardinal Health shall provide [*] of the increased cost of Raw Materials. 
 7.3 Taxes; Duty. All taxes, duties and other amounts assessed on the Raw Materials, API or the Product by governmental entities prior to or upon sale to Targanta
are the responsibility of Targanta, and Targanta shall reimburse Cardinal Health for any such taxes or duties paid by Cardinal Health. 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions. 
  

 7 

 7.4 Product Approval. Notwithstanding the terms set forth above, Targanta shall use [*] to expedite and obtain all
regulatory approvals necessary for Cardinal Health to commence production at the Facility (“Regulatory Approvals”). 
 7.5 Payment Terms.
Cardinal Health shall invoice Targanta for all Product as provided in Section 5.1, and payment for such invoices shall be due [*] after invoice receipt. In the event payment made to Cardinal Health after [*] (payment made [*] after invoice
receipt and sent to Cardinal Health) then such unpaid amount shall accrue interest at the rate of [*] until paid in full. 
 ARTICLE 8

 CHANGES TO SPECIFICATIONS 
 All Specifications and any changes thereto agreed to by the parties from time to time shall be in writing, dated and signed by the parties. No change in the Specifications shall be implemented by Cardinal Health, whether requested by
Targanta or requested or required by any Regulatory Authority, until the parties have agreed in writing to such change, the implementation date of such change, and any increase or decrease in fees associated with such change. Cardinal Health shall
use [*] to respond within [*] to any request made by Targanta for a change in the Specifications, and both parties shall use [*] to agree to the terms of such change within [*] of request for change. As soon as possible after a request is made for
any change in Specifications, Cardinal Health shall notify Targanta of the fees associated with such change and shall provide such supporting documentation as Targanta may reasonably require. Targanta shall pay all fees associated with such agreed
upon changes. The parties shall share in any cost savings that result from a change in Specifications that improves the efficiency of the manufacturing process and that requires submission of at least a CBE30 filing with the FDA. 
 ARTICLE 9 
 RECORDS; REGULATORY
MATTERS 
 9.1 Batch Records and Data. Cardinal Health shall provide Targanta with one properly completed copy of the Batch records prepared for
each Batch of Product released by Cardinal Health’s Quality Assurance group within [*]. Cardinal Health will provide additional copies at Targanta’s expense. 
 9.2 Recordkeeping. Cardinal Health shall maintain true and accurate books, records, test and laboratory data, reports and all other information relating to Processing under this Agreement, including all
information required to be maintained by all Applicable Laws. Such information shall be maintained in forms, notebooks and records for a period of at least [*] from the relevant finished Product expiration date or longer if required under Applicable
Laws. 
 9.3 Regulatory Compliance. Targanta shall be solely responsible for all permits and licenses required by any regulatory agency with respect
to the Product and the Processing under this Agreement, including any product licenses, applications and amendments in connection therewith. Cardinal Health will be responsible to maintain all permits and licenses required by any Regulatory
Authority with respect to the Facility. During the Term, Cardinal Health will assist Targanta with all regulatory matters relating to Processing under this Agreement, at Targanta’s request and at Targanta’s expense. Each party intends and
commits to cooperate to satisfy all Applicable Laws relating to Processing under this Agreement. 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted
portions. 
  

 8 

 9.4 Quality Audits. During the term of this Agreement, up to [*] duly-authorized employees, agents and
representatives of Targanta for up to [*] shall be granted access to the Facility [*] upon at least [*] prior written notice and at reasonable times during regular business hours for the purpose of inspecting and verifying that Cardinal Health is
complying with cGMPs, the Specifications and the Product master batch record. Targanta shall have the right to perform additional for cause audits in the case of a critical deviation or unexpected event impacting product quality. For purposes of
this Section 9.4, duly-authorized agents and representatives shall be required to sign Cardinal Health’s standard Confidential Disclosure Agreement prior to being allowed access to Cardinal Health’s Facilities. 
 9.5 Inspection of Processing. Targanta may base up to [*] representatives at the Facilities to observe the Processing provided that Targanta provides Cardinal
Health at least [*] advance written notice of the attendance of such Targanta representatives. Targanta shall indemnify and hold harmless Cardinal Health for any action or activity of such representatives while on Cardinal Health’s premises.

 9.6 Governmental Inspections and Requests. Cardinal Health shall immediately (within [*]) advise Targanta if an authorized agent of any Regulatory
Authority visits the Facility concerning the Processing of the Product. Targanta may, upon mutual agreement, be present at the Facility for any Regulatory Authority visit concerning the Processing or the Product. Upon request, Cardinal Health shall
furnish to Targanta a copy of the relevant portions of any report by such Regulatory Authority, if any, within [*] of Cardinal Health’s receipt of such report. Further, upon receipt of a Regulatory Authority request to inspect the Facilities or
audit Cardinal Health’s books and records with respect to Processing under this Agreement, Cardinal Health shall immediately notify Targanta, and shall provide Targanta with a copy of any written document received from such Regulatory Authority
relating to the Product before the audit and within [*] following receipt of any regulatory report. Targanta may send up to [*] representatives to the Facility during any Regulatory inspection relating specifically to the Product. Cardinal will not
necessarily allow Targanta into the inspection process, but will provide daily updates to Targanta representatives and opportunity for input during the process to the extent relevant to the Product. 
 9.7 Recall. In the event Cardinal Health believes a recall, field alert, Product withdrawal or field correction may be necessary with respect to any Product
provided under this Agreement, Cardinal Health shall immediately notify Targanta in writing. Cardinal Health will not act to initiate a recall, field alert, Product withdrawal or field correction without the express prior written approval of
Targanta, unless otherwise required by Applicable Laws or upon the advice of legal counsel. In the event Targanta believes a recall, field alert, Product withdrawal or field correction may be necessary with respect to any Product provided under this
Agreement, Targanta shall immediately notify Cardinal Health in writing and Cardinal Health shall use commercially reasonable efforts to provide all necessary cooperation and assistance to Targanta. Targanta shall bear the cost of, and shall
reimburse Cardinal Health for expenses incurred in connection with, any recall, field alert, Product withdrawal or field correction related to the Product except to the extent such recall, field alert, Product withdrawal or field correction is

  

 *Certain information on
this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 9 

 
caused by Cardinal Health’s breach of its obligations under this Agreement or Applicable Laws or its gross negligence or willful misconduct, in which
case, such cost shall be shared by Cardinal Health and Targanta, according to fair responsibility for the recall, field alert, Product withdrawal or field correction. For purposes hereof, such cost shall be limited to reasonable, actual and
documented administrative costs incurred by Targanta for such recall, withdrawal or correction, and replacement of the Defective Product to be recalled, in accordance with Article 5. 
 9.8 Quality Agreements. Attached to this Agreement as Exhibit C is a copy of the Quality Agreement executed by the parties relating to the Product (“Quality Agreement”). The Quality Agreement shall in
no way determine liability or financial responsibility of the parties for the responsibilities set forth therein. In the event of a conflict between the terms of this Agreement and the Quality Agreement, this Agreement shall control except with
respect to matters relating to compliance with GMPs and related regulations, in which case, the Quality Agreement will control. 
 ARTICLE
10 
 REPRESENTATIONS AND WARRANTIES 
 10.1 Cardinal Health. Cardinal Health represents and warrants to Targanta that: 
 A. At the time of delivery of the Product
as provided in Section 6.1, such Product will conform to and will have been Processed in conformance with the Product Specifications and Applicable Laws. 
 B. All Product prepared for or delivered to Targanta by Cardinal Health will be produced, held, used, and/or disposed of by Cardinal Health in accordance with all Applicable Laws. 
 C. Cardinal Health shall not use any materials provided by or prepared for Targanta for any purpose other than that explicitly set forth in this
Agreement. 
 D. Cardinal Health will comply with all Applicable Laws applicable to Cardinal Health’s performance under this Agreement.

 10.2 Targanta. Targanta represents and warrants to Cardinal Health that: 
 A. The Targanta-Supplied Materials will comply with all applicable Specifications, will have been produced in compliance with the Applicable Laws;

 B. All artwork and the content thereof provided to Cardinal Health shall comply with all Applicable Laws; 
 C. It has provided all safe handling instructions, health and environmental information and material safety data sheets applicable to the Product or to
and any Targanta-Supplied Materials, except as disclosed to Cardinal Health in writing by Targanta in sufficient time for review and training by Cardinal Health prior to delivery; 
  

 10 

 D. All Product delivered to Targanta by Cardinal Health will be held, used and/or disposed of by Targanta
in accordance with all Applicable Laws; and 
 E. Targanta will comply with all Applicable Laws applicable to Targanta’s performance
under this Agreement and its use of any materials or Products provided by Cardinal Health under this Agreement. 
 F. Targanta will not
release the Product if the batch record for a particular Batch of Product indicates that the Product does not comply with the Specifications or Applicable Laws. 
 G. Prior to releasing any Batch of Product, Targanta will review all Product specific validation records and confirm that the Product has been validated in compliance with Applicable Laws. 
 10.3 Mutual. Each party hereby represents and warrants to the other party that: 
 A. Existence and Power. Such party (1) is duly organized, validly existing and in good standing under the laws of the state in which it is
organized, (2) has the power and authority and the legal right to own and operate its property and assets, and to carry on its business as it is now being conducted, and (3) is in compliance with all requirements of Applicable Laws, except
to the extent that any noncompliance would not materially adversely affect such party’s ability to perform its obligations under the Agreement; 
 B. Authorization and Enforcement of Obligations. Such party (1) has the power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder and (2) has taken
all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. 
 C. Execution and Delivery. 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; 
 D. No Consents. All necessary consents, approvals and authorizations of all Regulatory Authorities and other persons required to be obtained by
such party in connection with the Agreement have been obtained; and 
 E. No Conflict. The execution and delivery of this Agreement
and the performance of such party’s obligations hereunder (1) do not conflict with or violate any requirement of Applicable Laws; and (2) do not materially conflict with, or constitute a material default or require any consent under,
any contractual obligation of such party. 
  

 11 

 10.4 Limitations. THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 10 ARE THE SOLE AND EXCLUSIVE
REPRESENTATIONS AND WARRANTIES MADE BY EACH PARTY TO THE OTHER AND NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY,
NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. 
 ARTICLE 11 
 CONFIDENTIAL INFORMATION 
 11.1 Mutual Obligation. Cardinal Health and Targanta agree
that they will not disclose the other party’s Confidential Information (defined below) to any third party without the prior written consent of the other party except as required by law, regulation or court or administrative order; provided,
however, that prior to making any such legally required disclosure, the party making such disclosure shall give the other party as much prior notice of the requirement for and contents of such disclosure as is practicable under the circumstances.
Notwithstanding the foregoing, each party may disclose the other party’s Confidential Information to any of its Affiliates that (A) need to know such Confidential Information for the purpose of performing under this Agreement, (B) are
advised of the contents of this Article, and (C) agree to be bound by the terms of this Article. 
 11.2 Definition. As used in this Agreement,
the term “Confidential Information” includes all such information furnished by Cardinal Health or Targanta, or any of their respective representatives or Affiliates, to the other or its representatives or Affiliates, whether furnished
before, on or after the date of this Agreement and furnished in any form, including but not limited to written, verbal, visual, electronic or in any other media or manner. Confidential Information includes all proprietary technologies, know-how,
trade secrets, discoveries, inventions and any other Intellectual Property (whether or not patented), analyses, compilations, business or technical information and other materials prepared by either party, or any of their respective representatives,
containing or based in whole or in part on any such information furnished by the other party or its representatives. Confidential Information also includes the existence of this Agreement, which may be requested and not unreasonably withheld, and
its terms. 
 11.3 Exclusions. Notwithstanding Section 11.2, Confidential Information does not include information that (A) is or becomes
generally available to the public or within the industry to which such information relates other than as a result of a breach of this Agreement, or (B) is already known by the receiving party at the time of disclosure as evidenced by the
receiving party’s contemporaneously dated written records, or (C) becomes available to the receiving party on a non-confidential basis from a source that is entitled to disclose it on a non-confidential basis, or (D) was or is
independently developed by or for the receiving party without reference to the Confidential Information, as evidenced by the receiving party’s written records. 
 11.4 No Implied License. The receiving party will obtain no right of any kind or license under any patent application or patent by reason of this Agreement. Except as provided in Article 12, all Confidential
Information will remain the sole property of the party disclosing such information or data. 
  

 12 

 11.5 Return of Confidential Information. Upon termination of this Agreement, the receiving party shall, upon
request, promptly return within thirty (30) days all such information, including any copies thereof, and cease its use or, at the request of the disclosing party, shall promptly destroy the same and certify such destruction to the disclosing
party; except for a single copy thereof, which may be retained for the sole purpose of determining the scope of the obligations incurred under this Agreement. 
 11.6 Survival. The obligations of this Article 11 will terminate [*] from the expiration of this Agreement. 
 ARTICLE 12 
 INTELLECTUAL PROPERTY 
 All Cardinal Health Materials, including without limitation, all improvements, developments, derivatives or modifications to the Cardinal Health Materials, shall be owned exclusively by Cardinal Health. All Targanta
Materials, including, without limitation, all improvements, developments, derivatives or modifications to the Targanta Materials shall be owned exclusively by Targanta. For purposes hereof, “Cardinal Health Materials” means all Cardinal
Health proprietary information, intellectual property, and developments (including, all patents, patent applications, know-how, inventions, designs, concepts, improvements, technical information, manuals, instructions or specifications), owned,
licensed or used by Cardinal Health in developing, formulating, manufacturing, filling, processing or packaging of liquid solutions or pharmaceuticals and the packaging equipment, processes or methods of packaging, or any improvements to any of the
foregoing, including any container, pouch, vial, ampoule or other form of liquid container developed by Cardinal Health. For purposes hereof, “Targanta Materials” means all proprietary information, intellectual property and developments
owned, developed, licensed or used by Targanta relating to the API, including, without limitation, patents, patent applications, know-how, inventions, designs, concepts, improvements, technical information, trademarks or trade names. For purposes of
clarity, to the extent that one party contributes to any improvement, development, derivative, or modification to the other party’s Materials, the contributing party shall and hereby does assign its entire right, title and interest in such
contribution to the other party. 
 ARTICLE 13 
 INDEMNIFICATION 
 13.1 Indemnification by Cardinal Health. Cardinal Health shall indemnify and hold harmless
Targanta, its Affiliates, and their respective directors, officers, employees and agents (“Targanta Indemnitees”) from and against any and all suits, claims, losses, demands, liabilities, damages, costs and expenses (including reasonable
attorneys’ fees) in connection with any suit, demand or action by any third party (“Losses”) [*] (A) any breach of its representations, warranties or obligations set forth in this Agreement or (B) any negligence or willful
misconduct [*], except to the extent that any of the foregoing [*] negligence, willful misconduct or breach of this Agreement. 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions. 
  

 13 

 13.2 Indemnification by Targanta. Targanta shall indemnify and hold harmless Cardinal Health, its Affiliates, and
their respective directors, officers, employees and agents (“Cardinal Health Indemnitees”) from and against all Losses [*] (A) any breach of its representations, warranties or obligations set forth in this Agreement; (B) [*];
(C) Targanta’s exercise of control over the Project to the extent that Targanta’s instructions or directions violate Applicable Law; (D) any actual or alleged infringement or violation of any patent, trade secret, copyright,
trademark or other proprietary rights provided [*]; or (F) any negligence or willful misconduct by [*], except to the extent that any of the foregoing [*] negligence, willful misconduct or breach of this Agreement. 
 13.3 Indemnification Procedures. All indemnification obligations in this Agreement are conditioned upon the party seeking indemnification: (A) promptly
notifying the indemnifying party of any claim or liability of which the party seeking indemnification becomes aware (including a copy of any related complaint, summons, notice or other instrument); provided, however, that failure to provide such
notice within a reasonable period of time shall not relieve the indemnifying party of any of its obligations hereunder except to the extent the indemnifying party is prejudiced by such failure; (B) cooperating with the indemnifying party in the
defense of any such claim or liability (at the indemnifying party’s expense); and (C) not compromising or settling any claim or liability without prior written consent of the indemnifying party. 
 ARTICLE 14 
 INSURANCE

 14.1 Cardinal Health. Cardinal Health shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance
during the term of this Agreement: (i) Commercial General Liability insurance with per-occurrence and general aggregate limits of not less than [*]; (ii) Products and Completed Operations Liability Insurance with per-occurrence and general
aggregate limits of not less than [*]; (iii) Workers’ Compensation and Employer’s Liability Insurance with statutory limits for Workers’ Compensation and Employer’s Liability insurance limits of not less than [*];
(iv) Professional Services Errors & Omissions Liability Insurance with per claim and aggregate limits of not less than [*] covering sums that Cardinal Health becomes legally obligated to pay as damages resulting from claims made by
Targanta for errors or omissions committed in the conduct of the services outlined in the Agreements. In lieu of insurance, Cardinal Health may self-insure any or a portion of the above required insurance. In the event that any of the required
policies of insurance are written on a claims made basis, then such policies shall be maintained during the entire term of this Agreement and for a period of not less than [*] following the termination or expiration of this Agreement. Cardinal
Health shall obtain a waiver from any insurance carrier with whom Cardinal Health carries Workers’ Compensation insurance releasing its subrogation rights against Targanta. Targanta shall be an additional insured under the Commercial General
Liability insurance policy as respects Targanta’s liability for damages caused in whole or in part by the acts or omissions of Cardinal Health in the performance of manufacturing services this Agreement. Such additional insured status shall end
upon the termination or expiration of this Agreement unless the policy is written on a claims made basis when such additional insured status will continue for a period of time Cardinal Health is required to maintain such insurance under the terms of
this Agreement. Upon request, Cardinal Health shall furnish to Targanta a certificate of insurance or other evidence of 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to
the omitted portions. 
  

 14 

 
the required insurance and additional insured status as soon as practicable after the Effective Date and within thirty (30) days after renewal of such
policies. Each insurance policy which is required under this Agreement shall be obtained from an insurance carrier with an A.M. Best rating of at least A- VII. 
 14.2 Targanta Insurance. Targanta shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance during the term of this Agreement: (i) Products and Completed Operations Liability
Insurance (including coverage for products used in clinical trials) with per-occurrence and general aggregate limits of not less than [*]; (ii) Workers’ Compensation and Employer’s Liability Insurance with statutory limits for
Workers’ Compensation and Employer’s Liability insurance limits of not less than [*]. In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained during the
entire term of this Agreement and for a period of not less than [*] following the termination or expiration of this Agreement. Targanta shall furnish certificates of insurance for all of the above noted policies and required additional insured
status to Cardinal Health as soon as practicable after the Effective Date of the Agreement and upon renewal of any such policies. Each insurance policy that is required under this Section shall be obtained from an insurance carrier with an A.M. Best
rating of at least A- VII. 
 ARTICLE 15 
 TERM AND TERMINATION 
 15.1 Term. This Agreement shall commence on the Effective Date and shall continue for a
period of three (3) Calendar Years, unless earlier terminated under Section 15.2 below (the “Term”). 
 15.2 Termination by Either
Party. 
 (a) Material Breach. Either party may terminate this Agreement effective upon sixty (60) days prior written notice
to the other party, if the other party commits a material breach of this Agreement and fails to cure such breach by the end of such sixty (60) day period; provided, however, that failure to pay amounts due under this Agreement within [*] after
such payments are due (as set forth in Section 7.5) shall relieve Cardinal Health from performing any further obligation under this Agreement until all outstanding payments are brought current. 
 (b) Bankruptcy. Either party may terminate this Agreement effective upon written notice to the other party, if the other party becomes insolvent
or admits in writing its inability to pay its debts as they become due, files a petition for bankruptcy, makes an assignment for the benefit of its creditors or has a receiver, trustee or other court officer appointed for its properties or assets.

 ARTICLE 16 
 LIMITATIONS OF LIABILITY 
 16.1 CARDINAL HEALTH SHALL [*] FOR [*] LOST, DAMAGED OR DESTROYED API OR OTHER TARGANTA-SUPPLIED MATERIALS, [*].

  

 *Certain information on
this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 15 

 16.2 CARDINAL HEALTH’S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL [*]. 
 16.3 NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL (EXCEPT FOR THOSE INDEMNITY OBLIGATIONS UNDER ARTICLE 13 THAT
ARE DEFINED AS CONSEQUENTIAL DAMAGES) DAMAGES ARISING OUT OF PERFORMANCE UNDER THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, LOSS OF REVENUES, PROFITS OR DATA, WHETHER IN CONTRACT OR TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. 
 ARTICLE 17 
 NOTICE 
 All notices and other communications hereunder shall be in writing and shall be deemed given: (A) when delivered personally to
the representatives named if mentioned below; (B) when delivered by facsimile transmission (receipt verified); (C) when received or refused, if mailed by registered or certified mail (return receipt requested), postage prepaid; or
(D) when delivered if sent by express courier service, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only
upon receipt thereof): 
  

			
	To Targanta:	  	Targanta Therapeutics Corp.
		  	225 S. East Street
		  	Indianapolis, IN 46202-4002
		  	Attention: Vice President, Manufacturing
		
	With a copy to:	  	Targanta Therapeutics Corp.
		  	225 S. East Street
		  	Indianapolis, IN 46202-4002
		  	Attn: Director, Quality Assurance
		
	To Cardinal Health:	  	Cardinal Health PTS, L.L.C.
		  	4401 Alexander Blvd NE
		  	Albuquerque, NM 87114
		  	Attn: General Manager

  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  
  

 16 

			
	With a copy to:	  	Cardinal Health, Inc.
		  	7000 Cardinal Place
		  	Dublin, Ohio 43017
		  	Attn: Associate General Counsel,
		  	Pharmaceutical Technologies and Services
		  	Facsimile: (614) 757-5051

 ARTICLE 18 
 MISCELLANEOUS 
 18.1 Entire Agreement; Amendments. This Agreement, Exhibits, the attachments, Project Plans
and any amendments thereto constitute the entire understanding between the parties and supersede any contracts, agreements or understanding (oral or written) of the parties with respect to the subject matter hereof. No term of this Agreement may be
amended except upon written agreement of both parties, unless otherwise provided in this Agreement. 
 18.2 Captions. The captions in this
Agreement are for convenience only and are not to be interpreted or construed as a substantive part of this Agreement 
 18.3 Further Assurances.
The parties agree to execute, acknowledge and deliver such further instruments and to take all such other incidental acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement. 
 18.4 No Waiver. Failure by either party to insist upon strict compliance with any term of this Agreement in any one or more instances will not be deemed to
be a waiver of its rights to insist upon such strict compliance with respect to any subsequent failure. 
 18.5 Severability. If any term of this
Agreement is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining terms of this Agreement will continue in full force and effect. 
 18.6 Independent Contractors. The relationship of the parties is that of independent contractors, and neither party will incur any debts or make any commitments for the other party except to the extent
expressly provided in this Agreement. Nothing in this Agreement is intended to create or will be construed as creating between the parties the relationship of joint ventures, co-partners, employer/employee or principal and agent. 
 18.7 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties, their successors and permitted assigns. Neither party
may assign this Agreement, in whole or in part, without the prior written consent of the other party, except that either party may, without the other party’s consent, assign this Agreement to an Affiliate or to a successor to substantially all
of the business or assets of the assigning company. 
  

 17 

 18.8 Governing Law. This Agreement shall be governed by and construed under the laws of the State of Ohio,
excluding its conflicts of law provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. 
 18.9 Alternative Dispute Resolution. If any dispute arises between the parties (“Dispute”), such Dispute shall be presented to the respective presidents or senior executives of Cardinal Health and Targanta for their
consideration and resolution. If such parties cannot reach a resolution of the Dispute, then such Dispute shall be resolved by binding alternative dispute resolution in accordance with the then existing commercial arbitration rules of CPR Institute
for Dispute Resolution, 366 Madison Avenue, New York, NY 10017. Arbitration shall be conducted in the jurisdiction of the defendant party. 
 18.10
Prevailing Party. In any dispute resolution proceeding between the parties in connection with this Agreement, the prevailing party will be entitled to its reasonable attorney’s fees and costs in such proceeding. 
 18.11 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. Any photocopy, facsimile or electronic reproduction of the executed Agreement shall constitute an original. 
 18.12
Publicity. Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the other party’s express prior written consent, not to be unreasonably withheld,
except as required under applicable law or by any governmental agency, in which case the party required to make the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other party as to the
form, nature and extent of the press release or public disclosure prior to issuing the press release or making the public disclosure. Each party shall furnish advance and final copy to the other party per Article 17. 
 18.13 Setoff. Without limiting Cardinal Health’s rights under law or in equity, Cardinal Health, its Affiliates, or parent, collectively or individually, may
exercise a right of set-off against any and all amounts due to Cardinal Health from Targanta. For purposes of this Article, Cardinal Health, its Affiliates, or parent shall be deemed to be a single creditor. 
 18.14 Survival. The rights and obligations of the parties shall continue under Articles 6 (Confidentiality), 7 (Intellectual Property), 9 (Indemnification), 10
(Limitations of Liability), 11 (Insurance), to the extent expressly stated therein, 13 (Notice), 14 (Miscellaneous) and Section 12.3 (Effect of Termination), notwithstanding expiration or termination of this Agreement. 
 18.15 Force Majeure. Except as to payments required under this Agreement, neither party shall be liable in damages for, nor shall this Agreement be terminable or
cancelable by reason of, any delay or default in such party’s performance hereunder if such default or delay is caused by events beyond such party’s commercially reasonable control including, but not limited to, acts of God, regulation or
law or other action or failure to act of any government or agency thereof, war or insurrection, civil commotion, destruction of production facilities or materials by earthquake, 

  

 18 

 
fire, flood or storm, labor disturbances, epidemic, or failure of suppliers, public utilities or common carriers; provided however, that the party seeking
relief hereunder shall immediately notify the other party of such cause(s) beyond such party’s reasonable control. The party that may invoke this section shall use all reasonable endeavors to reinstate its ongoing obligations to the other. If
the cause(s) shall continue unabated for one hundred eighty (180) days, then both parties shall meet to discuss and negotiate in good faith what modifications to this Agreement should result from this force majeure. 
 IN WITNESS WHEREOF, the parties have caused their duly authorized representative to execute this Agreement effective as of the date first written above.

  

									
	CARDINAL HEALTH PTS, LLC	 		 	TARGANTA THERAPEUTICS Corp.
					
	By:	 	/s/ Barry Littlejohns	 		 	By:	 	/s/ Mark Leuchtenberger
					
	Name:	 	Barry Littlejohns	 		 	Name:	 	Mark Leuchtenberger
					
	Its:	 	Vice President & General Manager	 		 	Its:	 	President and Chief Executive Officer
					
	Date:	 	March 27, 2007	 		 	Date:	 	March 26, 2007

  

 19 

 EXHIBIT A 
 SPECIFICATIONS 
 Specifications* for Oritavancin for Injection 100 mg 
 [*] 
  

 *Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted
portions. 
  

 20 

 EXHIBIT B 
 UNIT PRICING AND OTHER FEES 
 [*] 
  

 *Certain information on this page has
been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 21License Agreement, dated December 23, 2005

 Exhibit 10.11 
 [***] CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED
FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE
OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. 
 LICENSE AGREEMENT 
 This LICENSE AGREEMENT (the “Agreement”) is made effective and entered into as of December 23, 2005 (the “Effective Date”), by and between InterMune, Inc. (“Licensee”), a corporation
organized and existing under the laws of the State of Delaware, and Eli Lilly and Company (“Lilly”), a corporation organized and existing under the laws of the State of Indiana. Licensee and Lilly are sometimes referred to herein
individually as a “Party” and collectively as “Parties.” For certain purposes under this Agreement, InterMune, Inc. is sometimes referred to as “InterMune.” 
 RECITALS 
 WHEREAS, Lilly and Licensee entered into an asset purchase and
license agreement on September 21, 2001 (the “Prior Agreement”) pursuant to which (i) Lilly sold or licensed to Licensee, and Licensee purchased or licensed from Lilly, certain product inventory, technology and certain rights
thereto and regulatory documents owned by Lilly, and (ii) Licensee assumed certain liabilities associated with the rights and assets transferred herein, each in accordance with the terms and conditions set forth in the Prior Agreement; and

 WHEREAS, as of the Effective Date, Targanta Therapeutics, Inc. (“Targanta”) and Licensee intend to enter into an Asset Purchase
Agreement (“APA”) under which Targanta (i) will purchase all of Licensee’s right, title and interest in and to the Purchased Assets (as defined in the APA), including, without limitation, Licensee’s rights and obligations
under this Agreement; and 
 WHEREAS, as of and after the Effective Date, this Agreement will govern the exclusive license of the Licensed
Technology and Licensed Patents from Lilly to Licensee and the related rights and obligations under such license. 
 NOW, THEREFORE, in
consideration of the foregoing, the covenants and premises contained in this Agreement, and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS

 For purposes of this Agreement, the following terms will have the meanings set forth below: 
  

	1.1	“Affiliate” means, with respect to a Party, any Person (or Persons) directly or indirectly 

 Controlling, Controlled by, or under common Control with, such Party. 

	1.2	“Applicable Laws” means all applicable laws, ordinances, rules and regulations of any kind whatsoever of any governmental or regulatory authority, including,
without limitation, all laws, ordinances, rules and regulations promulgated by the FDA. 

  

	1.3	“Application for Marketing Authorization” means, with respect to Product, (i) in the United States, a New Drug Application filed with the FDA pursuant to 21
U.S.C. Section 357 and 21 C.F.R. Section 314 (“NDA”), and (ii) in any country other than the United States, an application or set of applications for marketing approval comparable to an NDA necessary to make and sell Product
commercially in such country. 

  

	1.4	“Calendar Quarter” means the three month period ending on March 31, June 30, September 30 or December 31. 

  

	 1.5
	 “Calendar Year” means the twelve (12) month period ending on December 31st. 

  

	1.6	“Closing Date” shall have the meaning set forth in the Prior Agreement. 

  

	1.7	“Compound” means any compound claimed in a Licensed Patent. 

  

	1.8	“Confidential Information” means information received (whether disclosed in writing, machine readable form, orally or by observation) by one Party (the
“Receiving Party”) from the other Party (the “Disclosing Party”) that the Receiving Party: (i) has a reasonable basis to believe is confidential to the Disclosing Party, (ii) is indicated in writing by the Disclosing
Party to be confidential, or (iii) is information that the Receiving Party received relating to manufacture of Compound or Product, including but not limited to, manufacturing know-how, unless in each case such information:

 (a) was known to the Receiving Party or to the public prior to the Disclosing Party’s disclosure, as
demonstrated by contemporaneous written records; 
 (b) became known to the public, after the Disclosing Party’s
disclosure hereunder, other than through a breach of the confidentiality provisions of this Agreement by the Receiving Party or any Person to whom such Receiving Party disclosed such information; 
 (c) was disclosed to the Receiving Party by a Person having a legal right to disclose, without any restrictions, such information or data;
or 
 (d) was developed by the Receiving Party independent of the Disclosing Party’s Confidential Information, as
demonstrated by contemporaneous written records. 
  

	1.9	“Control,” “Controlling,” “Controlled By” or “Under Common Control With” means the direct or indirect ability or power to
direct or cause the direction of management policies of a Person or otherwise direct the affairs of such Person, whether through ownership of equity, voting securities, beneficial interest, by contract or otherwise. 

  

 2 

	1.10	“Damages” means any and all costs, losses, claims, demands for payment, threatened government enforcement actions, liabilities, fines, penalties, expenses, court
costs and reasonable fees and disbursements of counsel, consultants and expert witnesses incurred by a Party hereto or its Affiliates (including interest which may be imposed in connection therewith). 

  

	1.11	“Data Exclusivity Period” means, with respect to a country, the period of time (if any) beginning on the date of the first Regulatory Approval by the FDA (or, in
countries other than the United States, an equivalent regulatory agency) during which the FDA (or, if applicable, such equivalent regulatory agency) prohibits reference, without the consent of the owner of an Application for Marketing Authorization
or Regulatory Approval package, to the clinical and other data that relates to the Product and that is contained in such Application for Marketing Approval or Regulatory Approval package and that is not published or publicly available outside of
such Application or Regulatory Approval package. 

  

	1.12	“European Union” or “EU” means Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, The
Netherlands, Norway, Portugal, Spain, Sweden, the United Kingdom, Switzerland and those additional countries that hereafter become members (whether voting or nonvoting) or are allowed to participate in the European Union. 

 

	1.13	“FDA” means the United States Food and Drug Administration, any comparable agency in any Foreign Jurisdiction, and any successor agency or entity to any of the
foregoing that may be established hereafter. 

  

	1.14	“Field” means [***]. 

  

	1.15	“Foreign Jurisdiction” means any jurisdiction other than the United States. 

  

	1.16	“Indication” means Regulatory Approval of, approval by the FDA of a submission made by Licensee under 21 CFR §99.201, or Licensee’s sales and promotion of
Product which leads to the treatment of additional diseases [***]. Such additional Indications may include, but not be limited to, [***]. 

  

	1.17	“Initial Product” means a form of Product that had been used by Lilly through the Closing Date, i.e., oritavancin, which Lilly and Licensee contemplated as
of the Closing Date would be the form of Product to be first commercialized by InterMune. 

  

	1.18	“Licensee Technology” means any inventions, ideas, conceptions or reductions-to-practice, patentable or not, information, works and/or data that are generated,
identified, discovered, created and/or made by Licensee, its employees or a Third Person contracted by or otherwise controlled by Licensee [***] and [***]. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 3 

	1.19	“Licensed Patents” means those United States and foreign patent applications (including provisional applications) and patents listed in Exhibit A
attached hereto and all patents and patent applications relating to the [***]; and: 

 (a) all divisions and
continuations of these applications, all patents issuing from such applications, divisions and continuations, and any reissues, reexaminations and extensions of all such patents; and 
 (b) any continuations-in-part, any divisions and continuations of these continuations-in-part, any patents issuing from such
continuations-in-part, divisions and continuations, and any reissues, reexaminations and extensions of all such patents, in each case to the extent that they contain one or more claims directed to the invention or inventions disclosed in the patent
applications and patents listed in Exhibit A. 
 The Licensed Patents will not include any subject matter described or disclosed
in subsection (b), above, to the extent such subject matter [***], above, which was filed on or before the Effective Date. 
  

	1.20	“Licensed Technology” means all tangible or intangible know-how, trade secrets, inventions (whether or not patentable), data, analytical reference materials and
methods and all confidential or proprietary chemical substances, assays and technical information which has been developed, created, made, used or acquired by Lilly on or before the Effective Date, to the extent such technology is reasonably
necessary, useful for or used in connection with the use or manufacture of the Compound or Product; provided, however, that Licensed Technology will exclude any and all subject matter described or claimed in Licensed Patents.

  

	1.21	“Major Market” means [***]. 

  

	1.22	“Net Sales” means, with respect to the Product, the gross amount invoiced by a Permitted Seller of the Product, less: 

 (a) [***], 
 (b) [***], and 
 (c) [***]. 
 Such amounts will be determined from books and records maintained in accordance with GAAP, consistently applied. In determining Net Sales of Product made by Licensee in a Foreign Jurisdiction, Licensee’s then
current standard procedures and methodology, including Licensee’s then current exchange rate methodology of foreign currency sales 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 4 

 into United States Dollars, a copy of which is attached hereto as Schedule 1.22, will be
consistently applied. No deductions will be made for [***], whether they are [***] or [***] by the Permitted Seller. 
  

	1.23	“Permitted Seller” means Licensee and its Affiliates and any assignee, licensee or sublicensee having the right to sell Product hereunder. 

 

	1.24	“Person” means a natural person, a corporation, a partnership, a trust, a joint venture, a limited liability company, any governmental authority or any other
organization. 

  

	1.25	“Product” means any final form pharmaceutical composition or preparation, in any dosage strength or size, containing Compound as an active pharmaceutical ingredient
that may, pursuant to Applicable Laws, be manufactured, marketed and sold upon Regulatory Approval or otherwise, together with all expansions, improvements and modifications thereon, and which, but for the license granted herein, the manufacture,
use, sale, offer for sale or importation of which in the Territory would infringe or contribute to the infringement of a Valid Claim under the Licensed Patents. Notwithstanding the foregoing, any references in this Agreement to “Product
manufacturing” or the “manufacture” or “manufacturing” of Product means Product that was manufactured for use in clinical trials and not for commercial use. 

  

	1.26	“Regulatory Approval” means (i) in the United States, approval by the FDA of an Application for Marketing Authorization and satisfaction of any related
applicable FDA registration and notification requirements (if any) and (ii) in a Foreign Jurisdiction, approval by regulatory authorities having jurisdiction over such country of a single Application or set of Applications for Marketing
Authorization; provided, however, that with respect to Japan only, Regulatory Approval means the above-described regulatory approval and approval by Japan’s pricing authorities. 

  

	1.27	“Representatives” of a Party means: (i) that Party’s agents, contractors, employees, officers, directors, consultants and advisors, (ii) its
Affiliates, and (iii) the agents, contractors, employees, officers, directors, consultants and advisors of its Affiliates. 

  

	1.28	“Royalty Term” means, with respect to each country in which the Product is sold: 

 (a) if no Valid Claim exists in such country, [***] from the date of first commercial sale of Product in such country, or if a Valid
Claim exists in such country, the period of time from the Effective Date until the expiration in such country of the last-to-expire Licensed Patent with a Valid Claim; and 
 (b) if there is a [***] in such country for Product after the expiration of the applicable time period in (a), above, the period of
time until [***] in such country. 
  

	1.29	“Territory” means the entire world. 

  

	1.30	“Third Person” means a Person that is not a Party to this Agreement or an Affiliate of a Party to this Agreement. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 5 

	1.31	“Valid Claim” means a claim of an issued and unexpired Licensed Patent in a country which: (i) but for this Agreement, would preclude the sale or other
disposition of Product by Licensee or another Permitted Seller, (ii) has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the
time allowed for appeal, and (iii) has not been abandoned, disclaimed or admitted to be invalid or unenforceable through reissue, disclaimer or otherwise. 

 ARTICLE 2 
 PRIOR AGREEMENT 
  

	2.1	Prior Agreement Novated. The terms and conditions of the Prior Agreement related to the sale by Lilly to InterMune of certain documents, rights, technology and Product
Inventory as defined in the Prior Agreement, and InterMune’s payment at the Closing Date of the Prior Agreement have been fully performed and satisfied. This Agreement is a novation of the Prior Agreement and, except as expressly set forth
herein, supersedes the Prior Agreement in its entirety. Lilly and Licensee hereby expressly release and forever discharge and covenant not to sue the other party and its successor, assigns and predecessors, as well as all its directors, officers,
employees, equity holders, representatives, agents and attorneys, from and for any and all debts, actions, accounts, suits, covenants, agreements, demands, claims, damages, causes of action and liabilities, whether liquidated or non-liquidated,
fixed or contingent, matured or unmatured, known or unknown, related to the Prior Agreement, that such party asserted, or could have asserted, against the other party by reason of any acts or omissions of the first party related to the Prior
Agreement prior to the date hereof, including, without limitation, payment by InterMune to Lilly of the Ten Million Dollar ($10,000,000) milestone due under Section 2.2 of the Prior Agreement “upon completion of Phase III Clinical Trials
necessary to support first submission of NDA with FDA for Regulatory Approval,” except for Damages (as defined in the Prior Agreement) to the extent caused by or arising out of or in connection with (i) any claim for any breach of this
Agreement; (ii) any breach by the Receiving Party of the requirements of the Prior Agreement with respect to Confidential Information (as defined in the Prior Agreement); (iii) any claim to the extent caused by or arising out of or in
connection with the Assumed Liabilities (as defined in the Prior Agreement) prior to the Effective Date and (iv) obligations of indemnification under Article 11 of the Prior Agreement to the extent caused by or arising out of or in
connection with such obligations prior to the Effective Date (items (ii) through (iv) the “Prior Claims”). 

  

	2.2	Consent to Assignment. Pursuant to Section 12.1 of the Prior Agreement and this Agreement, by executing this Agreement Lilly hereby ratifies this Agreement and indicates
its approval of the assignment to Targanta of all of Licensee’s rights and obligations under this Agreement (other than the Prior Claims). Contingent upon the consummation of the proposed transaction with Targanta, InterMune will retain only
the obligations associated with the Prior Claims and will have no other rights or obligations under this Agreement, and all such other rights and obligations under this Agreement 

  

 6 

 shall be assumed by Targanta. For clarity, Targanta will not assume any of InterMune’s obligations
under the Prior Agreement which are not expressly set forth herein or in the APA. For the avoidance of doubt, Lilly shall have no responsibility for Assumed Liabilities or for any Damages that are covered by indemnification obligations from and
after the Closing Date of the Prior Agreement and such Assumed Liabilities and Damages are the responsibility and liability of InterMune if they are based on facts or circumstances first accruing from the Closing Date until the Effective Date and
are the responsibility and liability of Targanta if they are based on facts or circumstances first accruing after the Effective Date. Similarly, InterMune shall have no responsibility for Excluded Liabilities (as defined in the Prior Agreement) or
for any Damages that are covered by indemnification obligations prior to the Effective Date, and Targanta shall have no responsibility for Excluded Liabilities or for any Damages that that are covered by indemnification obligations subsequent to the
Effective Date, and such Excluded Liabilities and Damages shall remain the responsibility and liability of Lilly under this Agreement and the Prior Agreement. 
  

	2.3	Conflict with Prior Agreement. To the extent that any term or provision of this Agreement conflicts with the Prior Agreement, the terms of this Agreement shall control.

 ARTICLE 3 
 CONSIDERATION 
 In consideration of the licenses granted by Lilly to Licensee under the Licensed Patents and the
Licensed Technology as set forth in this Agreement, Licensee will pay the following amounts to Lilly: 
  

	3.1	Milestone Payments for Product. Within thirty (30) days of Licensee and/or its Permitted Sellers achieving a milestone event listed below following the Effective Date
with respect to the Product, Licensee will pay the below-specified non-creditable and non-refundable fee to Lilly by Federal Reserve electronic wire transfer in immediately available funds to an account designated by Lilly. 

 

			
	 Milestone Event
	  	 Payment

	 Regulatory Approval for first Indication
	  	 Ten Million Dollars ($10,000,000)
  
 This milestone payment is intended for the first Indication that receives Regulatory Approval.

		
	 Regulatory Approval for second Indication
	  	 Ten Million Dollars ($10,000,000)
  
 This milestone payment is intended for the second Indication that receives Regulatory Approval

		
	First Calendar Year in which Net Sales exceed Two Hundred and Ten Million Dollars ($210,000,000)	  	Fifteen Million Dollars ($15,000,000)

  

 7 

	3.2	Royalty Payment Calculation. Licensee will pay Lilly a royalty (the “Royalty Payment”) during the Royalty Term based upon Net Sales of Product during each Calendar
Year. Except as set forth in Section 3.3 below, the following royalty percentages will apply: 

  

			
	 Net Sales of Product During a
 Calendar Year
	  	 Royalty Percentage on Net Sales of
 Product in Jurisdictions in Which a
 Valid Claim Exists

	$0 to $200,000,000	  	10%
	$200,000,000 - $400,000,000	  	12%
	More than $400,000,000	  	18%

  

	3.3	Royalty Payment. 

 (a)
Payments. Licensee will pay to Lilly the Royalty Payment within [***] of the end of each Calendar Quarter, without regard to whether any Permitted Seller’s customer has actually paid Licensee. For purposes of this Section 3.4, a Net
Sale of Product will be deemed to have been made as of the date of shipment of the Product to the Permitted Seller’s customer, without regard to whether its customer has actually paid Licensee. All payments to Lilly pursuant to this
Section 3.4 will be made by Licensee by an electronic funds transfer system designated or approved by Lilly unless otherwise instructed by Lilly. 
 (b) Payment of Tiered Royalties. In calculating Royalty Payments payable in accordance with Section 3.2 above, Net Sales occurring during a specific Calendar Year will be aggregated at the end of each
Calendar Quarter during such year, and the applicable royalty percentage(s) will be applied to that portion of the Net Sales that occurred during the most recently completed Calendar Quarter. 
 Example: In Calendar Year One, Net Sales by Calendar Quarter in such year were as follows: (i) Calendar Quarter One—$175 million, (ii)
Calendar Quarter Two—$200 million, (iii) Calendar Quarter Three—$350 million, and (iv) Calendar Quarter Four—$500 million. Licensee would owe Lilly the following Royalty Payment: (1) Calendar Quarter One—$175 million x 10%, (2)
Calendar Quarter Two—$175 million x 12% plus $25 million x 10%, (3) Calendar Quarter Three—$325 million x 18% plus $25 million x 12%, and (4) Calendar Quarter Four—$500 million x 18%. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 8 

	3.4	Quarterly Report. Within [***] after the end of each Calendar Quarter, Licensee will furnish Lilly a written report detailing: (i) the Net Sales of Product for the
previous Calendar Quarter, broken down by country and between Licensee and any Permitted Sellers, (ii) the Royalty Payment that is due and payable, and (iii) the basis for calculating such Royalty Payment. Licensee will mail such reports
to the attention of: [***]. 

  

	3.5	Taxes. If laws or regulations require the withholding of taxes on any Royalty Payment due Lilly, Licensee will deduct such taxes from the Royalty Payment and remit the tax to
the proper tax authority. Licensee will provide Lilly with proof of payment within thirty (30) days after payment. Licensee will cooperate fully and promptly in pursuing a refund of such tax, if such refund is appropriate in Lilly’s
determination. 

  

	3.6	Late Payments. Any amounts not paid by Licensee when due under this Agreement and which are not subject to a good faith dispute will be subject to interest from and including
the date payment is due through and including the date upon which Lilly has collected the funds in accordance herewith at a rate equal to the lesser of (i) the sum of [***] plus the prime rate of interest quoted in the Money Rates section of
the Wall Street Journal, calculated daily on the basis of a three hundred sixty (360) day year, or (ii) the maximum interest rate allowed by law. 

  

	3.7	No Excuse. Licensee will not be excused from or relieved of its obligations to pay the amounts described in this Article 3 by any claimed or actual event of force
majeure, commercial or other impracticability or impossibility, or frustration of essential purpose. 

  

	3.8	Currency of Payment. All payments to be made under this Agreement will be made in U.S. Dollars. 

  

	3.9	Financial Audits. Licensee will keep full and accurate books and records relating to the performance required of it under this Agreement. Lilly will have the right, during
regular business hours and upon reasonable advance notice, to have such books and records of Licensee audited no more than one (1) time per Calendar Year so as to verify the accuracy of the information previously reported to Lilly. Lilly will,
for purposes of such audit, utilize only the services of an independent certified public accounting firm selected by Lilly and approved by Licensee, such approval not to be unreasonably withheld. Such audit may cover the two (2) Calendar Years
preceding the date of the request for such audit. Notwithstanding the foregoing, no audit of Licensee pursuant to this Section 2.10 will cover any period of time preceding the Effective Date. Such accountants will keep confidential any
information obtained during such audit and will, report to Lilly only their conclusions. The cost of such audit will be borne by Lilly; however, if such audit reveals an underpayment to Lilly of [***] or more, the cost of the audit will be borne by
Licensee. Within thirty (30) days after both Parties have received a copy of an audit report, Licensee or Lilly, as appropriate, will compensate the other Party for payment errors or omissions revealed by the audit. Licensee will include in all
sublicenses granted in accordance herewith, and any other agreements enabling a Third Person to be a Permitted Seller, an audit provision substantially similar to the foregoing requiring such Permitted Seller to keep full and accurate books and
records relating to the 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 9 

 Product and granting Lilly the right to have an independent public accounting firm audit the accuracy of
the information reported by the sublicensee in connection therewith. 
  

	3.10	Compulsory License. If a Third Person obtains a Compulsory License (as defined below) in a specific country, then Lilly will promptly notify Licensee thereof. If the royalty
percentage(s) payable by the grantee of the Compulsory License is less than the royalty percentage(s) applicable in such country as set forth in Sections 3.2, above, then such royalty percentage(s) will be reduced to the royalty percentage(s)
under such Compulsory License for so long as sales of Product are made pursuant to the Compulsory License. “Compulsory License” means a compulsory license under the Licensed Patents obtained by a Third Person through the order, decree or
grant of a competent governmental authority authorizing such Third Person to manufacture, use, sell, offer for sale or import the Product in a specific country. 

 ARTICLE 4 
 LICENSE OF RIGHTS 
  

	4.1	Grant of License to Licensee under Licensed Patents. Subject to the terms and conditions set forth herein, during the term of this Agreement, Lilly hereby grants to Licensee,
and Licensee accepts, under the Licensed Patents, a royalty-bearing, exclusive (even as to Lilly, except as expressly provided in the following sentence) license in the Field, with a right to sublicense, to make, have made, use, offer to sell, sell
and import Product in the Territory. Such license is exclusive even as to Lilly except that Lilly hereby retains a right under the Licensed Patents to [***]. 

  

	4.2	Grant of License to Licensee under Licensed Technology. Subject to the terms and conditions set forth herein, during the term of this Agreement, Lilly hereby grants to
Licensee, and Licensee accepts, under the Licensed Technology, an exclusive (even as to Lilly) license in the Field, with a right to sublicense, to make, have made, use, offer to sell, sell and import Product in the Territory.

  

	4.3	Sublicenses and Business Opportunities. Licensee will notify Lilly of any sublicenses granted and will, subject to applicable confidentiality restrictions, provide Lilly with
the material terms of the sublicense agreement. Licensee will remain liable for Royalty Payments as a result of Net Sales made by a sublicensee pursuant to a sublicense or license. If, during the term of this Agreement, (i) Licensee begins
negotiations to enter into a commercialization relationship with a Third Person with respect to selling Product in a specific country, or (ii) a Third Person initiates such discussions with Licensee and Licensee is interested in entertaining
such discussions (both (i) and (ii) are collectively referred to as a “Business Opportunity”), then Licensee will notify Lilly in writing thereof, with such notice containing reasonable available non-confidential information
relevant to the Business Opportunity. 

  

	4.4	Excluded Assets. Anything herein to the contrary notwithstanding, Licensee will have no right, title or interest in or to the trademarks “ELI LILLY AND COMPANY” and
“LILLY” and any variation thereof, and any other rights in or to such names. 

	**	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 10 

 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF LILLY 
  

	5.1	Ownership of Intellectual Property. Lilly represents and warrants that (i) either Lilly or an Affiliate of Lilly is the owner of the Licensed Patents and the Licensed
Technology which were warranted under the Prior Agreement (collectively, the “Warranted Intellectual Property”), and (ii) Lilly or its Affiliates can and have the right to license the Warranted Intellectual Property to Licensee
hereunder without the consent of any Third Person. 

  

	5.2	Claims Related to Use of Intellectual Property. Lilly represents and warrants that there are no pending or, to Lilly’s knowledge, threatened claims against Lilly
asserting that any of the activities of Lilly relating to the Warranted Intellectual Property or the conduct of the activities contemplated herein by the Parties relating to the Warranted Intellectual Property infringes or violates the rights of
Third Persons. 

  

	5.3	Notice to Third Persons. Lilly represents and warrants that Lilly has not given any notice to any Third Persons asserting infringement by such Third Persons upon any of the
Warranted Intellectual Property. 

  

	5.4	Rights Granted to Third Persons. Lilly represents and warrants that Lilly has not executed or granted to any Third Person, directly or indirectly, or entered into any
agreement for, any license or other right to make, use, offer to sell, sell or import the Product in the Territory. 

  

	5.5	Organization and Standing. Lilly represents and warrants that Lilly is a corporation duly organized, validly existing and in good standing under the laws of the State of
Indiana. 

  

	5.6	Power and Authority. Lilly represents and warrants that (i) Lilly has all requisite corporate power and authority to execute, deliver and perform this Agreement and the
other agreements and instruments to be executed and delivered by it pursuant hereto and thereto and to consummate the transactions contemplated herein and therein, and (ii) the execution, delivery and performance of this Agreement by Lilly does
not, and the consummation of the transactions contemplated hereby will not, violate any provisions of Lilly’s organizational documents, bylaws, any law or regulation applicable to Lilly, or any agreement, mortgage, lease, instrument, order,
judgment or decree to which Lilly is a party or by which Lilly is bound. 

  

	5.7	Corporate Action; Binding Effect. Lilly represents and warrants that (i) Lilly has duly and properly taken all action required by law, its organizational documents or
otherwise, to authorize the execution, delivery and performance of this Agreement and the other instruments to be executed and delivered by it pursuant hereto and thereto and the consummation of the transactions contemplated hereby and thereby, and
(ii) this Agreement has been duly executed and delivered by Lilly and constitutes, and the other instruments contemplated hereby when duly executed and delivered by Lilly will constitute, legal, valid and binding obligations of Lilly
enforceable against it in accordance with its respective terms, except as enforcement may be affected by bankruptcy, insolvency or other similar laws and by general principles of equity. 

  

 11 

	5.8	Governmental Approval. Lilly represents and warrants that no consent, approval, waiver, order or authorization of, or registration, declaration or filing with, any
governmental authority or any other Third Person is required in connection with the execution, delivery and performance of this Agreement, or any agreement or instrument contemplated by this Agreement, by Lilly or the performance by Lilly of its
obligations contemplated hereby and thereby. 

  

	5.9	Brokerage. Lilly represents and warrants that no broker, finder or similar agent has been employed by or on behalf of Lilly, and no Person with which Lilly has had any
dealings or communications of any kind is entitled to any brokerage commission, finder’s fee or any similar compensation in connection with this Agreement or the transactions contemplated hereby. 

  

	5.10	Not Debarred. Lilly represents and warrants that Lilly is not debarred and has not and will not use in any capacity the services of any Person debarred under subsections
306(a) or (b) of the Generic Drug Enforcement Act of 1992 (the “GDE Act”). 

  

	5.11	Litigation. Lilly represents and warrants that there are no pending or, to Lilly’s knowledge, threatened judicial, administrative or arbitral actions, claims, suits or
proceedings pending as of the date hereof against Lilly or its Affiliates which, either individually or together with any other, will have a material adverse effect on the ability of Lilly to perform its obligations under this Agreement or any
agreement or instrument contemplated hereby or on the ability of Licensee to develop or commercialize the Compound or Product as contemplated by the Parties. 

  

	5.12	Survival Period. The representations and warranties contained in this Article 5 [***] associated with such representations and warranties will [***].

  

	5.13	Implied Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE 5, LILLY MAKES NO REPRESENTATION OR WARRANTY AS TO THE LICENSED PATENTS OR THE LICENSED TECHNOLOGY, EXPRESS
OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND LILLY SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR
A PARTICULAR PURPOSE AND WARRANTY OF NON-INFRINGEMENT. Without limiting the foregoing, Licensee acknowledges that it has not and is not relying upon any implied warranty of merchantability, fitness for a particular purpose, non-infringement, or upon
any representation or warranty whatsoever as to the future prospects (financial, regulatory or otherwise), or the likelihood of commercial success of the Product after the date of this Agreement. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 12 

	5.14	No Third-Person Patent Infringement. Lilly represents and warrants that, to Lilly’s knowledge, there is no patent issued to a Third Person as of the Effective Date that
would be infringed by any of the activities contemplated herein by the Parties. 

  

	5.15	Lilly Research and Development Program. Lilly represents and warrants that as of the Effective Date it does not have a research or development program in place or planned
involving [***]. 

 ARTICLE 6 
 REPRESENTATIONS AND WARRANTIES OF LICENSEE 
  

	6.1	Organization and Standing. Licensee represents and warrants that Licensee is a corporation duly organized, validly existing and in good standing under the laws of the State
of Delaware. 

  

	6.2	Power and Authority. Licensee represents and warrants that (i) Licensee has all requisite corporate power and authority to execute, deliver and perform this Agreement
and the other agreements and instruments to be executed and delivered by it pursuant hereto and thereto and to consummate the transactions contemplated herein and therein, and (ii) the execution, delivery and performance of this Agreement by
Licensee does not, and the consummation of the transactions contemplated hereby will not, violate any provisions of Licensee’s organizational documents, bylaws, any law or regulation applicable to Licensee, or any agreement, mortgage, lease,
instrument, order, judgment or decree to which Licensee is a party or by which Licensee is bound. 

  

	6.3	Corporate Action; Binding Effect. Licensee represents and warrants that (i) Licensee has duly and properly taken all action required by law, its organizational documents
or otherwise, to authorize the execution, delivery and performance of this Agreement and the other instruments to be executed and delivered by it pursuant hereto and thereto and the consummation of the transactions contemplated hereby and thereby,
and (ii) this Agreement has been duly executed and delivered by Licensee and constitutes, and the other instruments contemplated hereby when duly executed and delivered by Licensee will constitute legal, valid and binding obligations of
Licensee enforceable against it in accordance with its respective terms, except as enforcement may be affected by bankruptcy, insolvency or other similar laws and by general principles of equity. 

  

	6.4	Governmental Approval. Licensee represents and warrants that no consent, approval, waiver, order or authorization of, or registration, declaration or filing with, any
governmental authority or any other Third Person is required in connection with the execution, delivery and performance of this Agreement, or any agreement or instrument contemplated by this Agreement, by Licensee or the performance by Licensee of
its obligations contemplated hereby and thereby 

  

	6.5	Brokerage. Licensee represents and warrants that no broker, finder or similar agent has been employed by or on behalf of Licensee, and no Third Person with which Licensee has
had any dealings or communications of any kind is entitled to any brokerage commission, finder’s fee or any similar compensation in connection with this Agreement or the transactions contemplated hereby. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 13 

	6.6	Not Debarred. Licensee represents and warrants that Licensee is not debarred and has not and will not knowingly use in any capacity the services of any Person debarred under
subsections 306(a) or (b) of the GDE Act. 

  

	6.7	Litigation. Licensee represents and warrants that there are no pending or, to Licensee’s knowledge, threatened judicial, administrative or arbitral actions, claims,
suits or proceedings pending as of the date hereof against Licensee which, either individually or together with any other, will have a material adverse effect on the ability of Licensee to perform its obligations under this Agreement or any
agreement or instrument contemplated hereby. 

 ARTICLE 7 
 ADDITIONAL COVENANTS AND AGREEMENTS. 
 OF THE PARTIES

  

	7.1	Compliance with Law. Licensee will comply with all Applicable Laws relating to its development, manufacture, distributing, marketing, promotion, selling, importing and
exporting of the Product. 

  

	7.2	Expenses. Lilly and Licensee will each bear their own direct and indirect expenses incurred in connection with the negotiation and preparation of this Agreement and, except
as set forth in this Agreement, the performance of the obligations contemplated hereby. 

  

	7.3	Diligence. After the Effective Date, Licensee has sole responsibility for all aspects of developing, obtaining Regulatory Approval for, manufacturing and commercializing the
Initial Product throughout the Territory. Licensee will devote Commercially Reasonable Efforts (as defined in the following sentence) to obtain and maintain Regulatory Approval for the Initial Product in the United States or to commercialize Initial
Product in the United States. For purposes of this section only, “Commercially Reasonable Efforts” means the level of effort, expertise and resources that a similarly situated biopharmaceutical company would typically devote to
commercialization of a product of similar marketing potential, profit potential or strategic value, based on conditions then prevailing. If Lilly believes that Licensee is not devoting Commercially Reasonable Efforts for the Initial Product in any
country, Lilly will notify Licensee in writing detailing its specific concerns and recommendations, and the Parties will meet within [***] of such written notice to discuss such concerns and recommendations. After the last of such meeting(s),
Licensee will have [***] to devote its Commercially Reasonable Efforts as set forth above. If Licensee subsequently defaults and does not devote Commercially Reasonable Efforts for the Initial Product in any country, Lilly will have the right to
terminate the licenses granted in this Agreement to Licensee for such specific country pursuant to Section 10.1(c), below, [***], and Licensee will grant to Lilly an exclusive license to all rights, Licensee Technology and data that are useful
and necessary for Lilly to obtain (or maintain) Regulatory Approval to commercialize the Initial Product in the United States. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 14 

	7.4	Publicity. The Parties agree that no publicity release or announcement concerning this Agreement will be issued without the advance written consent of the other, except as
such release or announcement may be required by law, in which case the Party making the release or announcement will, before making any such release or announcement, afford the other Party a reasonable opportunity to review and comment upon such
release or announcement. Notwithstanding anything in this Section 7.4 and Article 9 to the contrary, each Party may make filings that are required by Applicable Laws to the Securities and Exchange Commission (and any applicable securities
exchanges) that discuss the subject matter of this Agreement or otherwise make reference to the other Party in any way whatsoever; provided, however, that such Party provides the other Party with no less than [***]; provided further, however, that,
such Party will use reasonable efforts to obtain confidential treatment by such security exchanges with respect thereto. 

  

	7.5	Cooperation. If either Party becomes engaged in or participates in any investigation, claim, litigation or other proceeding with any Third Person, including the FDA, relating
in any way to the Product, the other Party will cooperate in all reasonable respects with such Party in connection therewith, including, without limitation, using its reasonable efforts to make available to the other such employees who may be
helpful with respect to such investigation, claim, litigation or other proceeding, provided that, for purposes of this provision, reasonable efforts to make available any employee will be deemed to mean providing a Party with reasonable access to
any such employee at no cost for a period of time not to exceed twenty-four (24) hours (e.g., three (3) eight (8) -hour business days). Thereafter, any such employee will be made available for such time and upon such terms and
conditions (including, but not limited to, compensation) as the Parties may mutually agree. 

  

	7.6	Conflicting Rights. Neither Party will grant any right to any Third Person which would violate the terms of or conflict with the rights granted by such Party to the other
Party pursuant to this Agreement. 

  

	7.7	Deemed Breach of Covenant. Neither Lilly nor Licensee will be deemed to be in breach of this Agreement to the extent such Party’s breach is the result of any action or
inaction on the part of the other Party. 

  

	7.8	Intellectual Property Maintenance. Licensed Patents shall be filed, prosecuted and maintained worldwide by a third-party patent counsel acceptable to Licensee and Lilly.
Licensee shall have the ultimate responsibility for and control over such matters and shall bear all expenses incurred in filing, prosecuting and maintaining Licensed Patents. Licensee or its designee shall keep Lilly fully informed of the filing,
prosecution and maintenance of Licensed Patents, and shall furnish to Lilly copies of documents relevant to any such efforts in advance with sufficient time for Lilly to review and provide comments on such documents, and shall use its reasonable
efforts to incorporate the comments and suggestions of Lilly. Licensee shall not, without providing Lilly with 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 15 

 prior written notice and sufficient time for Lilly to review and provide comment, [***]. To the extent
that Lilly does not agree with any such action that is desired by Licensee, in the case of a patent application affected by such action, Lilly may file and assume control of any patent application or foreign counterpart of a patent application filed
by Lilly prior to the Closing Date that Lilly wishes to pursue at Lilly’s sole expense, provided that Licensee may retain control of the parent patent application so affected. Lilly shall provide Licensee with any assistance reasonably
necessary to support the filing, prosecution or maintenance of Licensed Patents. If Licensee decides to allow any Licensed Patent that is an International Patent Application (filed under the Patent Cooperation Treaty) or regional patent application
(filed under the applicable regional patent convention treaty) pending as of the Closing Date to lapse without entry of the national phase in one or more countries designated in such application, or if Licensee wishes to abandon or allow to lapse
any Licensed Patent that is a national patent application or patent pending or in force as of the Closing Date, Licensee shall notify Lilly in writing not less than sixty (60) days prior to taking such action, and Licensee shall thereby
surrender to Lilly its rights under the patent or patent application in the country or countries so affected and Lilly may assume control of the same at Lilly’s sole expense. 
  

	7.9	No Fiduciary Relationship. The Parties hereby expressly agree and acknowledge that they do not intend to create any type of fiduciary relationship as a result of the
provisions set forth in Section 7.8, above. Without limitation or condition of the foregoing, Lilly agrees to provide Licensee’s agent with any and all powers of attorney and other instruments necessary for Licensee to conduct the filing,
prosecution or maintenance of the Licensed Patents as provided in Section 7.8, above, and Lilly acknowledges that any such power of attorney will make Licensee’s agent an attorney-in-fact for Lilly with respect to the matter specified in
the power of attorney or other instrument but will not create an attorney/client relationship or any other fiduciary relationship between Lilly and Licensee’s agent. Lilly shall promptly inform Licensee as to all matters that come to
Lilly’s attention that may affect the preparation, filing, prosecution, or maintenance of the Licensed Patents, including without limitation any prior art of which Lilly or any representative of Lilly knows or has reason to know is material to
the preparation, filing, prosecution, or maintenance of the Licensed Patents, provided that Lilly will have no obligation beyond that required of Lilly under 37 CFR § 1.56 with respect to U.S. patent applications and that Lilly will have
obligations of corresponding scope with respect to foreign patent applications as required under foreign patent regulations. 

  

	7.10	Enforcement of Intellectual Property Rights. 

 (a) Right to Seek Relief. Each Party will promptly notify the other of any infringement or suspected infringement which may come to its notice of any intellectual property rights relating to the Product,
including, without limitation, the Licensed Technology, and will provide such other Party with any information with respect thereto. If a Third Person infringes any [***] the Licensed Patents or the Licensed Technology, Licensee will have the first
right (but not the obligation) to pursue any and all injunctive relief, and any or all compensatory and other remedies and relief (collectively, “Remedies”), against such Third Person. Should 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 16 

 Licensee determine not to pursue Remedies with respect to any such intellectual property within [***]
after receipt of written notice from Lilly requesting Licensee to do so, then Lilly will have the right (but not the obligation) to pursue Remedies against such Third Person; provided, however, that such written notice from Lilly to Licensee must
prominently state that Licensee must take action on the subject matter contained within the notice within [***] of Licensee’s receipt thereof. 
 (b) Assistance and Cooperation. If a Party pursues Remedies hereunder, the other Party will use all reasonable efforts to assist and cooperate with the Party pursuing such Remedies. Each Party will bear its own
costs and expenses relating to such pursuit. Any damages or other amounts collected will be distributed, [***], to the Party that pursued Remedies to cover its costs and expenses and, [***] the other Party to cover its costs and expenses, if any,
relating to the pursuit of such Remedies; any remaining amount will [***]. 
  

	7.11	Infringement of Third Person Rights. If a Third Person institutes a patent, trade secret or other infringement suit against Licensee, a permitted sublicensee or a Permitted
Seller during the term of this Agreement, alleging that the manufacture, marketing, sale or use of the Product infringes one or more patent or other intellectual property rights held by such Third Person, then Licensee will have the first right (but
not the obligation), at its sole expense, to assume direction and control of the defense of such claims. Should Licensee determine not to pursue the defense of a particular claim within [***] after notice from Lilly, then Lilly will have the right
(but not the obligation), at its sole expense, to assume direction and control of such claims. Licensee will not have the right to settle or otherwise dispose of any such claim without the consent of Lilly, which consent will not be unreasonably
withheld. 

  

	7.12	No Liens. Licensee will keep the Licensed Patents and the Licensed Technology free from all liens and encumbrances. 

  

	7.13	Debarment. If at any time a Party uses in any capacity the services of any Person debarred under subsections 306(a) or (b) of the GDE Act, such Party will immediately
notify the other Party thereof. 

  

	7.14	Licensee Technology. Licensee will be the sole owner of the Licensee Technology, subject to Section 7.3, above, and Section 10.2(a)(iii), below.

  

	7.15	Covenant Not to Sue. [***] will not sue Licensee or any licensee of Licensee for any in infringement of any patent or other rights of [***] that may arise from the use,
manufacture, sale, offer for sale or importation in the Territory by Licensee or any licensee of Licensee of any product [***]. 

  

	7.16	Product Inventory. Licensee will use the Product Inventory (as defined in the Prior Agreement and supplied thereunder) for conducting clinical trials only and not for any
commercialization purposes whatsoever. For clarity, the foregoing will not limit Licensee’s use of any product inventory manufactured after the Closing Date. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 17 

 ARTICLE 8 
 ASSUMPTION OF LIABILITIES BY LICENSEE 
  

	8.1	Assumption of Liabilities by Licensee. Except as otherwise provided in this Agreement, Licensee hereby assumes and agrees to bear and be responsible for and to perform
and satisfy all responsibilities, duties (including, without limitation, compliance with all Applicable Laws), obligations, claims, Damages, liabilities, burdens and problems of any nature whatsoever that arise out of or relate to events occurring
after the Effective Date (collectively, the “Obligations”) associated directly or indirectly with Licensee’s ownership, licensing, operation and/or use of the Licensed Patents and the Licensed Technology, as well as those associated
directly or indirectly with the development, manufacturing, distributing, marketing, promoting or selling of the Product that arise out of or relate to events occurring after the Effective Date, including, without limitation, all recalls, all
warranty claims and all product liability claims (without regard to the nature of the causes of action alleged or theories of recovery asserted) arising out of or relating to events occurring in connection with Product sold after the Effective Date,
except for those Obligations with respect to which Lilly is providing indemnification pursuant to the Prior Agreement and the provisions of Section 11.1 of this Agreement, which Obligations will remain the responsibility of Lilly, and those
Obligations with respect to which InterMune is providing indemnification pursuant to the Prior Agreement and the provisions of Section 2.2 of this Agreement, which Obligations will remain the responsibility of InterMune.

 ARTICLE 9 
 CONFIDENTIALITY 
  

	9.1	Confidential Information. The Parties agree that, at all times during the term of this Agreement and for a [***] following its expiration or earlier termination, the
Receiving Party will keep completely confidential, will not publish or otherwise disclose and will not use directly or indirectly for any purpose other than as contemplated by this Agreement any such Confidential Information of the Disclosing Party,
whether such Confidential Information was received by the Receiving Party prior to, on or after the Effective Date. For clarity, Confidential Information provided under the Prior Agreement and meeting the requirements of confidentiality thereunder
and hereunder will be treated as Confidential Information under this Agreement. 

  

	9.2	Disclosure. Subject to Section 9.1, above, each Party may disclose and, with respect only to Section 9.2(g), below, use, Confidential Information to the extent that
such disclosure and, with respect only to Section 9.2(g), below, use, is: 

 (a) made in response to a
valid order or subpoena of a court of competent jurisdiction or other governmental body of a country or any political subdivision thereof of competent jurisdiction; provided, however, that the Receiving Party will first have 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 18 

 given notice to the Disclosing Party and given the Disclosing Party a reasonable opportunity to quash
such order or subpoena and to obtain a protective order requiring that the Confidential Information and documents that are the subject of such order or subpoena be held in confidence by such court or governmental body or, if disclosed, be used only
for purposes for which the order or subpoena was issued; provided further, however, that if a disclosure order or subpoena is not quashed or a protective order is not obtained, the Confidential Information disclosed in response to such court or
governmental order or subpoena will be limited to that information that is legally required to be disclosed in such response to such court or governmental order or subpoena; 
 (b) otherwise required by law, in the opinion of legal counsel to the Receiving Party as expressed in an opinion letter in form and
substance reasonably satisfactory to the Disclosing Party, which will be provided to the Disclosing Party at least twenty-four (24) hours prior to the Receiving Party’s disclosure of the Confidential Information pursuant to this
Section 9.2; 
 (c) made by the Receiving Party to the governmental or regulatory authority as required to obtain or
maintain marketing approval for the Product, provided that reasonable effort will be taken to ensure confidential treatment of such information; 
 (d) made by the Receiving Party to a Third Person as may be necessary or useful in connection with the manufacture, development and commercialization of the Product, provided that the Receiving Party will in each case
obtain from the proposed Third Person recipient a written confidentiality agreement containing confidentiality obligations no less onerous than those set forth in this Section; 
 (e) made by the Receiving Party to a United States or foreign tax authority; 
 (f) made by the Receiving Party to its Representatives; provided, however, that: (i) each such Representative has a need to know such
Confidential Information for purposes of this Agreement, (ii) the Receiving Party informs each Representative receiving Confidential Information of its confidential nature, and (iii) the Receiving Party will be responsible for any breach
of this Section 9 by any of its Representatives to the same extent as if the breach were by the Receiving Party; and 
 (g) made by Licensee or any Representative of Licensee in the filing or publication of patents or patent applications relating to Licensed Patents, Licensed Technology, Licensee Technology or any invention relating to a Compound, including,
without limitation, any method of use or manufacture of such Compound, conceived or reduced to practice by Licensee and/or any Representative of Licensee and or any permitted sublicensee of Licensee, to the extent such use or disclosure in the
filing or publication of the patent or patent application is reasonably necessary for support of the patent or patent application. 
  

	9.3	Notification. The Receiving Party will notify the Disclosing Party immediately, and cooperate with the Disclosing Party as the Disclosing Party may reasonably request, upon
the Receiving Party’s discovery of any loss or compromise of the Disclosing Party’s Confidential Information. 

  

 19 

	9.4	Remedies. Each Party agrees that the unauthorized use or disclosure of any Confidential Information by the Receiving Party in violation of this Agreement or any other
agreement forming a part of this transaction will cause severe and irreparable damage to the Disclosing Party. In the event of any violation of this Article 9, the Receiving Party agrees that the Disclosing Party will be authorized and entitled
to seek from any court of competent jurisdiction injunctive relief, whether preliminary or permanent. The rights provided in the immediately preceding sentences will be cumulative and in addition to any other rights or remedies that may be available
to Disclosing Party. Nothing in this Section is intended, or should be construed, to limit a Party’s right to preliminary and permanent injunctive relief or any other remedy for a breach of any other provision of this Agreement.

 ARTICLE 10 
 TERMINATION 
  

	10.1	Termination. Anything herein to the contrary notwithstanding, this Agreement may be terminated as follows: 

 (a) Expiration. The term of this Agreement will begin upon the Effective Date and, unless sooner terminated under this
Article 10, will continue in full force and effect on a country-by-country basis in the Territory until Licensee and its Permitted Sellers have no remaining Royalty Payment obligations in a specific country under Section 3.2 above. Upon
expiration of the Agreement in any country pursuant to this Section, Licensee will have: (i) a fully paid-up, perpetual, irrevocable, exclusive (except as reserved by Lilly under Section 4.1, above) license in the Field with the
unrestricted right to grant sublicenses under the Licensed Patents to make, use, offer to sell, sell and import Product in such country, and (ii) a fully paid-up, perpetual, irrevocable, exclusive license in the Field with the right to
sublicense subject to Section 4.3, above, under the Licensed Technology to make, have made, use, offer to sell, sell and import Product in such country. 
 (b) Termination for Insolvency. Either Lilly or Targanta may immediately terminate this Agreement by providing written notice to
the other Party if, subsequent to the Effective Date, the other Party is declared insolvent or bankrupt by a court of competent jurisdiction, or a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by the other Party,
or the other Party makes or executes any assignment for the benefit of creditors. 
 (c) Termination for Default.
Either Lilly or Targanta may terminate this Agreement because of a material breach or material default of this Agreement subsequent to the Effective Date by the other Party by giving the other Party prior written notice thereof, specifying in
reasonable detail the alleged material breach or material default, 

  

 20 

 
and if such alleged material breach or material default continues unremedied for a period of [***] with respect to monetary breaches or defaults after the
date of receipt of the notification, or [***] with respect to non-monetary material breaches or material defaults after the date of receipt of the notification or, if the non-monetary material breach or material default reasonably cannot be
corrected or remedied within [***], then if the defaulting Party has not in good faith commenced remedying said material breach or material default within said [***] and be diligently pursuing completion of same, then such Party may immediately
terminate this Agreement by again providing written notification to the defaulting Party. This Section 10.1(c) will not be exclusive and will not be in lieu of any other remedies available to a Party hereto for any breach or default hereunder
on the part of the other Party. Notwithstanding the foregoing, to the extent a material breach or material default of this Agreement by Targanta affects Targanta’s performance and Lilly’s rights under this Agreement as it relates to one or
more jurisdictions, but not all jurisdictions, Lilly may terminate this Agreement in accordance with this Section 10.1(c) as to the affected jurisdiction or jurisdictions only, and in such case this Agreement will remain in full force and
effect with respect to the jurisdictions not so affected. 
  

	10.2	Rights Upon Termination under Section 10.1. 

 (a) Lilly’s Rights Upon Termination for Insolvency or Default of Licensee. If Lilly terminates this Agreement under Section 10.1 (b) or (c), above, then the following will take effect:

 (i) Reversion of Licensed Patents and Licensed Technology. All rights under the Licensed Patents and the Licensed
Technology granted by Lilly to Licensee pursuant to Article 4, above, will terminate and all rights granted therein will immediately revert to Lilly with no further notice or action required on Lilly’s behalf; provided, however, that if
the termination relates only to a specific country, then only the licenses pertaining to such country will revert to Lilly hereunder. 
 (ii) Reversion of Patent Maintenance Responsibilities. Upon the effective date of the termination of this Agreement, the sole responsibility for preparing, filing, prosecuting and maintaining the Licensed
Patents and the Licensed Technology will revert back to Lilly with no further notice or action required on Lilly’s behalf; provided, however, that if the termination relates only to a specific country, then only the patent maintenance
obligations pertaining to such country will revert to Lilly hereunder. In such case, Licensee will maintain its patent responsibilities for all other Licensed Patents and Licensed Technology. 
 (iii) Non-Exclusive License and Access to Licensee Technology. 
 (A) Initial Product(s). Licensee will grant to Lilly a non-exclusive, world-wide, [***] license, with a right to sublicense, under
Licensee Technology to the extent that it relates to Lilly’s ability to make, have made, use, offer to sell, sell and import the Initial Product solely in, and for use in, the country or countries in which Licensee’s rights to the Initial
Product were so terminated. In addition to the 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 21 

 license granted under this Section, Licensee also agrees to provide Lilly, at Lilly’s expense,
reasonable access and reference to, copies of, and use of Licensee Technology, [***], and if Lilly so requests, the [***], to the extent [***] to make, use, offer to sell, sell and import the Initial Product in, and for use in, such country or
countries. 
 (B) Other Products. Licensee will also grant to Lilly a non-exclusive, world-wide license, with a right
to sublicense, under Licensee Technology to the extent that it relates to Lilly’s ability to make, have made, use, offer to sell, sell and import any other Products (namely, any Products other than Initial Product) solely in, and for use in,
the country or countries in which Licensee’s rights to the Initial Product were so terminated. Such license shall be [***]. In addition to the license granted under this Section, Licensee also agrees to provide Lilly, at Lilly’s expense,
reasonable access and reference to, copies of, and use of Licensee Technology, [***], to the extent [***] to make, use, offer to sell, sell and import such other Products in, and for use in, such country or countries. 
 (ii) Disposition of Product Inventory Upon Termination. If Lilly terminates this Agreement after Licensee has obtained a Regulatory
Approval for the Initial Product, Licensee will offer to sell to Lilly or its designee, [***] as determined by Licensee’s records (maintained in accordance with GAAP, consistently applied) for the [***] prior to the termination, Licensee’s
inventory of the Initial Product existing on the date of termination (“Licensee Product Inventory”). Licensee will be entitled to finish manufacturing any work-in-process into the Initial Product, and such newly made Initial Product will
be considered Licensee Product Inventory hereunder. If termination of this Agreement relates only to a specific country, the provisions of this Subsection are applicable only to Licensee’s Initial Product inventories for the country where such
termination occurred. 
 (b) Licensee Rights Upon Termination for Insolvency or Default of Lilly. If Licensee
terminates this Agreement under Section 10.1 (b) or (c), above, then (i) the licenses under the Licensed Patents and the Licensed Technology granted by Lilly to Licensee pursuant to Article 4, above, will, unless otherwise
terminated pursuant to the terms of this Agreement, remain in full force and effect, and (ii) Licensee’s diligence obligations under Section 7.3, above, will terminate. If the termination contemplated in this Section 10.2(b) is
due to the default of Lilly, then in addition to the provisions of (i) and (ii), above, [***] set forth in [***] above, will be [***] and [***]. 
  

	10.3	Termination of Sublicenses. If Lilly terminates this Agreement under Sections 10.1(b) or (c), above, and Licensee has granted sublicenses in accordance herewith, Lilly
agrees 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 22 

 to continue such terminated sublicensee’s license with respect to the Licensed Patents and/or
Licensed Technology on [***] unless such sublicensee was in breach of this Agreement or its sublicense with Licensee on the date of such termination, in which event Lilly may terminate such sublicense in accordance with its terms. 
  

	10.4	Continuing Obligations. Termination of this Agreement for any reason will not relieve the Parties of any obligation accruing prior thereto and will be without prejudice to
the rights and remedies of either Party with respect to any antecedent breach of the provisions of this Agreement. Without limiting the generality of the foregoing and in addition to the foregoing and the rights upon termination set forth in
Section 10.2, no termination of this Agreement, whether by lapse of time or otherwise, will serve to terminate the rights and obligations of the Parties hereto with respect to this Agreement as it relates to the jurisdiction(s) for which this
Agreement has not been terminated, and, with respect to those jurisdictions terminated, the rights and obligations of the Parties hereto under Sections 7.4, 7.5, 10.2, 10.3 and 10.4 and Articles 2, 3, 9, 11 and 12, and such obligations will
survive any such termination. 

  

	10.5	Non-Exclusive Remedies. The remedies set forth in this Article 10 or elsewhere in this Agreement will be in addition to, and will not be to the exclusion of, any other
remedies available to the Parties at law, in equity or under this Agreement. 

 ARTICLE 11 
 INDEMNIFICATION: INSURANCE 
  

	11.1	Indemnification by Lilly. Lilly will indemnify, defend and hold Licensee (and its Affiliates, and its and its Affiliates’ directors, officers and employees) harmless
from and against any and all Damages incurred or suffered by Licensee (and its directors, officers and employees) to the extent caused by or arising out of or in connection with: 

 (a) any breach of any representation or warranty made by Lilly in this Agreement; or 
 (b) any failure to perform duly and punctually any covenant, agreement or undertaking on the part of Lilly contained in this Agreement;

 except to the extent that such Damages are due to the negligence, gross negligence or willful misconduct of Licensee, its Affiliates, or
its or its Affiliates’ employees, agents or contractors. 
  

	11.2	Indemnification by Licensee. Licensee will indemnify, defend and hold Lilly (and its Affiliates and its and its Affiliates’ directors, officers and employees) harmless
from and against any and all Damages incurred or suffered by Lilly (and its directors, officers and employees) to the extent caused by or arising out of or in connection with: 

 (a) any breach of any representation or warranty made by such Licensee in this Agreement; 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 23 

 (b) any failure to perform duly and punctually any covenant, agreement or undertaking on
the part of such Licensee contained in this Agreement; 
 (c) any Assumed Liabilities except those Assumed Liabilities for
which InterMune retained responsibility and liability pursuant to the Prior Agreement and Sections 2.2 and 8.1 of this Agreement; 
 (d) the practice of the Licensed Patents and Licensed Technology by such Licensee, its Affiliates, and any sublicensees; 
 (e) the handling, possession, development, marketing, distribution, promotion, sale or use of the Product by such Licensee or a Permitted Seller after the Effective Date including, but not limited to, any Third Person
claim alleging breach of any express or implied warranties of merchantability or fitness for a particular purpose or asserting strict liability, except to the extent such Damage is caused by a breach of this Agreement by Lilly; or 
 (f) Such Licensee’s failure to comply in all material respects with Applicable Laws in connection with the performance of its
obligations hereunder; 
 except to the extent that such Damages are due to the negligence, gross negligence or willful misconduct of Lilly,
its Affiliates or its or its Affiliates’ employees, agents or contractors. 
  

	11.3	 Notice and Opportunity To Defend. Promptly after receipt by a Party hereto of notice of any claim which could give rise to a right to indemnification
pursuant to Section 11.1 or 11.2, above, such Party (the “Indemnified Party”) will give the other Party (the “Indemnifying Party”) written notice describing the claim in reasonable detail. The failure of an Indemnified Party
to give notice in the manner provided herein will not relieve the Indemnifying Party of its obligations under this Article 11, except to the extent that such failure to give notice materially prejudices the Indemnifying Party’s ability to
defend such claim. The Indemnifying Party will have the right, at its option, to compromise or defend, at its own expense and by its own counsel, any such matter involving the asserted liability of the Party seeking such indemnification; provided,
however, that the Indemnifying Party may do so under a reservation of rights with respect to the obligation to indemnify. If the Indemnifying Party will undertake to compromise or defend any such asserted liability, it will promptly (and in any
event not less than ten (10) days after receipt of the Indemnified Party’s original notice) notify the Indemnified Party in writing of its intention to do so, and the Indemnified Party agrees to cooperate fully with the Indemnifying Party
and its counsel in the compromise or defend against any such asserted liability. All reasonable costs and expenses incurred in connection with such cooperation will be borne by the Indemnifying Party subject to the Indemnifying Party’s
reservation of rights. If the Indemnifying Party elects not to compromise or defend the asserted liability, or fails to notify the Indemnified Party of its election to compromise or defend as herein provided, the Indemnified Party will have the
right, at its option, to pay, compromise or defend such asserted liability by its own counsel and its reasonable costs, expenses, and any payment made therewith will be included as part of 

  

 24 

	 	 
the indemnification obligation of the Indemnifying Party hereunder, subject to the Indemnifying Party’s reservation of rights. Notwithstanding the
foregoing, neither the Indemnifying Party nor the Indemnified Party may settle or compromise any claim without consent of the other; provided, however, that consent to settlement or compromise will not be unreasonably withheld. In any event, the
Indemnified Party and the Indemnifying Party may participate, at their own expense, in the defense of such asserted liability. If the Indemnifying Party chooses to defend any claim, the Indemnified Party will make available to the Indemnifying Party
any books, records or other documents within its control that are necessary or appropriate for such defense; provided, however, any such books, records or other documents within the control of the Indemnified Party which are made available to the
Indemnifying Party hereunder will be held in strict confidence by the Indemnifying Party and will be disclosed by the Indemnified Party to the Indemnifying Party only to the extent that such books, records or other documents relate to the claim.

 Notwithstanding anything to the contrary in this Section 11.3, (a) the Party conducting the
defense of a claim will (1) keep the other Party informed on a reasonable and timely basis as to the status of the defense of such claim (but only to the extent such other Party is not participating jointly in the defense of such claim), and
(2) conduct the defense of such claim in a prudent manner, and (b) the Indemnifying Party will not cease to defend, settle or otherwise dispose of any claim without the prior written consent of the Indemnified Party (which consent will not
be unreasonably withheld). 
  

	11.4	Indemnification Payment Obligation. Neither Party will incur any indemnification obligations under this Article 11 until [***], at which time [***] such Damages will be
covered. The provisions of this Section will not limit or otherwise affect the obligations of any Indemnifying Party under any other Section. 

  

	11.5	Indemnification Payment Adjustments. The amount of any Damages for which indemnification is provided under this Article 11 will be reduced by the insurance proceeds
received and any other amount recovered, if any, by the Indemnified Party with respect to any Damages; provided, however, that the foregoing will not under any circumstances reduce the Damages for which either Party is obligated to indemnify the
other to the extent the insurance proceeds received result from a self-insurance program; provided further, however, that an Indemnified Party will not be subject to an obligation to pursue an insurance claim relating to any Damages for which
indemnification is sought hereunder. To the extent the preceding sentence is applicable, if any Indemnified Party will have received any payment pursuant to this Article 11 with respect to any Damages and will subsequently have received
insurance proceeds or other amounts with respect to such Damages, then such Indemnified Party will pay to the Indemnifying Party an amount equal to the difference (if any) between (a) the sum of the amount of those insurance proceeds or other
amounts received and the amount of the payment by such Indemnifying Party pursuant to this Article 11 with respect to such Damages and (b) the amount necessary to fully and completely indemnify and hold harmless such Indemnified

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 25 

 Party from and against such Damages; provided, however, that in no event will such Indemnified Party have
any obligation pursuant to this sentence to pay to such Indemnifying Party an amount greater than the amount of the payment by such Indemnifying Party pursuant to this Article 11 with respect to such Damages. 
  

	11.6	Indemnification Payment. Upon the final determination of liability and the amount of the indemnification payment under this Article 11, the Indemnifying Party will pay
to the Indemnified Party, within ten (10) business days after such determination, the amount of any claim for indemnification made hereunder. 

  

	11.7	Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR PUNITIVE DAMAGES, HOWEVER CAUSED
OR UPON ANY THEORY OF LIABILITY (INCLUDING A PARTY’S OR ITS AFFILIATES’ OWN NEGLIGENCE, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OR THE NEGLIGENCE, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF A PARTY’S OR A PARTY’S AFFILIATES’
EMPLOYEES, AGENTS OR CONTRACTORS), ARISING OUT OF THIS AGREEMENT OR THE PERFORMANCE OF, OR THE FAILURE TO PERFORM, ANY OBLIGATION(S) SET FORTH HEREIN. 

  

	11.8	Insurance. Licensee will maintain at its own expense, [***] to Lilly, full insurance coverage for Licensee, written on a per occurrence basis, which will [***], including,
without limitation, errors and omissions insurance encompassing claims relating to Licensee’s performance of its obligations under this Agreement and comprehensive general liability insurance for claims for damages arising from bodily injury
(including death) and property damages arising out of acts or omissions of Licensee, [***]. Minimum limits of such insurance (not [***]) will be [***] coverage. Maintenance of such insurance coverage will not relieve Licensee of any responsibility
under this Agreement for damage in excess of insurance limits or otherwise. Licensee will provide Lilly with a certificate from the insurer(s), evidencing such insurance coverage and the insurer’s agreement to notify Lilly [***] such insurance
coverage. 

  

	11.9	Survival. Each Indemnified Party’s rights under Article 11 will not be deemed to have been waived or otherwise affected by such Indemnified Party’s waiver of
the breach of any representation, warranty, agreement or covenant contained in or made pursuant this Agreement, unless such waiver expressly and in writing also waives any or all of the Indemnified Party’s right under Article 11.

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 26 

 ARTICLE 12 
 MISCELLANEOUS 
  

	12.1	Successors and Assigns. This Agreement will be binding upon and will inure to the benefit of the Parties hereto and their respective successors and assigns, and either Lilly
or Licensee may assign this Agreement without the prior written consent of the other. No assignment of this Agreement or of any rights hereunder will relieve the assigning Party of any of its obligations or liability hereunder.

  

	12.2	Notices. Unless otherwise stated in this Agreement as to the method of delivery, all notices or other communications required or permitted to be given hereunder will be in
writing and will be deemed to have been duly given if delivered by hand, courier, facsimile or if mailed first class, postage prepaid, by registered or certified mail, return receipt requested (such notices will be deemed to have been given on the
date delivered in the case of hand delivery or delivery by courier, on the date set forth in the confirmation sheet in the case of facsimile delivery, and on the date of post mark in the case of delivery by mail) as follows:

 If to Lilly, as follows: 
 Eli Lilly and Company 
 Lilly Corporate Center 
 Indianapolis, Indiana 46285 
 Facsimile: (317) 277-7979 
 Attn: Vice President, Corporate Business Development 

With a copy to: 
 Eli
Lilly and Company 
 Lilly Corporate Center 
 Indianapolis, Indiana 46285 
 Facsimile: (317) 433-3000 
 Attn: General Counsel 
 If to Licensee, as follows: 
 InterMune, Inc. 
 3280 Bayshore Boulevard 
 Brisbane, California 94005 
 Facsimile: (415) 466-2300 
 Attn: Senior Vice President of Corporate Development 

 

 27 

 With a copy to: 
 InterMune, Inc. 
 3280 Bayshore Boulevard 
 Brisbane, California 94005 
 Facsimile: (415) 508-0006 
 Attn: General Counsel 
 or in any case to such other address or addresses as hereafter will be furnished in a
written notice as provided in this Section 12.2 by any Party hereto to the other Party. 
  

	12.3	Waiver. Any term or provision of this Agreement may be waived at any time by the Party entitled to the benefit thereof only by a written instrument executed by such Party. No
delay on the part of Lilly or Licensee in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any waiver on the part of either Lilly or Licensee of any right, power or privilege hereunder operate as a waiver
of any other right, power or privilege hereunder nor will any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

  

	12.4	Entire Agreement. This Agreement, including the exhibits and schedules attached hereto and the certificates delivered in connection herewith and therewith constitute the
entire agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements or understandings of the Parties relating thereto, including that certain Confidential Disclosure Agreement, dated as of August 1,
2001. 

  

	12.5	Amendment. This Agreement may be modified or amended only by written agreement of the Parties hereto signed by authorized representatives of the Parties.

  

	12.6	Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original but all of which together will constitute a single
instrument. 

  

	12.7	Governing Law. This Agreement will be governed and construed in accordance with the laws of the State of New York excluding any choice of law rules that may direct the
application of the law of another state. 

  

	12.8	Captions. All section titles or captions contained in this Agreement and in any exhibit, schedule or certificate referred to herein or annexed to this Agreement are for
convenience only, will not be deemed a part of this Agreement and will not affect the meaning or interpretation of this Agreement. 

  

	12.9	No Third-Person Rights. No provision of this Agreement will be deemed or construed in any way to result in the creation of any rights or obligation in any Person not a Party
to this Agreement. 

  

	12.10	Construction. This Agreement will be deemed to have been drafted by both Lilly and 

  

 28 

 Licensee and will not be construed against either Party as the draftsperson hereof. 
  

 29 

	12.11 	Appendices, Exhibits, Schedules and Certificates. Each appendix, exhibit, schedule and certificate attached hereto is incorporated herein by reference and made a part of this
Agreement. 

  

	12.12 	No Joint Venture. Nothing contained herein will be deemed to create any joint venture or partnership between the Parties hereto, and, except as is expressly set forth herein,
neither Party will have any right by virtue of this Agreement to bind the other Party in any manner whatsoever. 

  

	12.13 	Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws effective while this Agreement remains in
effect, the legality, validity and enforceability of the remaining provisions will not be affected thereby. 

  

	12.14 	Force Majeure. If either Party is prevented from complying, either totally or in part, with any of the terms or provisions set forth herein by reason of force majeure,
including, by way of example and not of limitation, fire, flood, explosion, storm, strike, lockout or other labor dispute, riot, war, rebellion, accidents, acts of God, acts of governmental agencies or instrumentalities, failure of suppliers or any
other similar or dissimilar cause, in each case to the extent beyond its reasonable control, said Party will provide written notice of same to the other Party. Said notice will be provided within [***] of the occurrence of such event and will
identify the requirements of this Agreement or such of its obligations as may be affected, and, subject to Section 3.8, to the extent so affected, said obligations will be suspended during the period of such disability. The Party prevented from
performing hereunder will use reasonable efforts to remove such disability and will continue performance whenever such causes are removed. The Party so affected will give to the other Party a good faith estimate of the continuing effect of the force
majeure condition and the duration of the affected Party’s nonperformance. If the period of any previous actual nonperformance of Lilly because of Lilly force majeure conditions plus the anticipated future period of Lilly nonperformance because
of such conditions will exceed an aggregate of [***], Licensee may terminate this Agreement immediately by written notice to Lilly. If the period of any previous actual nonperformance of Licensee because of Licensee force majeure conditions plus the
anticipated future period of Licensee nonperformance because of such conditions will exceed an aggregate of [***], Lilly may terminate this Agreement immediately by written notice to Licensee. When such circumstances as those contemplated herein
arise, the Parties will discuss in good faith, what, if any, modification of the terms set forth herein may be required in order to arrive at an equitable solution. 

  

	12.15 	Independent Contractors. It is understood and agreed that the Parties are independent contractors and are engaged in the operation of their own respective businesses, and
neither Party is to be considered the agent of the other Party for any purpose whatsoever. Neither Party will have any authority to enter into any contracts, assume any obligations, create any liability, nor make any warranties or representations
for or on behalf of the other Party. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 30 

	12.16 	Change of Control. If any Third Person makes a good faith written offer to Licensee to acquire the right to control the majority of the voting stock of Licensee, and if such
Third Person potential acquirer has a [***] in place, then Licensee will promptly notify Lilly of its receipt of such an offer. 

  

	12.17 	Dispute Resolution. If any dispute arises relating to this Agreement, prior to instituting any lawsuit, arbitration or other dispute resolution process on account of such
dispute, the Parties will attempt in good faith to settle such dispute first by negotiation and consultation between themselves, including referral of such dispute to the Chief Executive Officer of Licensee and the Vice President, Corporate Business
Development, of Lilly. If said executives are unable to resolve such dispute or agree upon a mechanism to resolve such dispute within sixty (60) days of the first written request for dispute resolution under this Section 12.16, the Parties
may then either consider other forms of alternative dispute resolution as a means of resolving any such dispute or institute litigation and seek such remedies as may be available. 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 31 

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

  

			
	ELI LILLY AND COMPANY
		
	By:	 	/s/ John C. Lechleiter
	Printed Name: John C. Lechleiter
	 Title: President & Chief Operating
 Officer

  

			
	INTERMUNE, INC.
		
	By:	 	/s/ Thomas Kassberg
	Printed Name: Thomas Kassberg
	 Title: Senior Vice President, Business
 Development and Corporate Strategy

  

 32 

 Exhibit A 
 Licensed Patents 
 [***] 

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 33 

 Schedule 1.22 
 InterMune’s Exchange Rate Methodology 
 All payments to be made under this
Agreement shall be made in U.S. Dollars. For those sales involving Product which occur outside the United States, the Royalty Payments due on such sales will be calculated on the basis of the local currency sales figures translated into United
States Dollars according to InterMune’s then current standard currency translation methodology. The methodology employed by InterMune shall be that methodology used by InterMune in the translation of its foreign currency operating results for
external reporting and shall be consistent with United States GAAP. 
  

 34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]