Document:

Exhibit 10.12

 

PUBLIC HEALTH SERVICE

 

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

This Agreement is based on the model Cooperative Research and
Development Agreement (“CRADA”) adopted by the U.S. Public Health Service (“PHS”) Technology Transfer Policy
Board for use by components of the National Institutes of Health (“NIH”), the Centers for Disease Control and Prevention
(“CDC”), and the Food and Drug Administration (“FDA”), which are agencies of the PHS within the Department
of Health and Human Services (“HHS”).

 

This Cover Page identifies the Parties to this CRADA:

 

The U.S. Department of Health and Human
Services, as represented by

The National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), an Institute, Center, or Division (hereinafter
referred to as the “ICD”) of the NIH.

 

and

 

Intercept Pharmaceuticals, Inc.,

hereinafter referred to as the “Collaborator”,

having offices at 18 Desbrosses Street, New York, New York, 10013,

created and operating under the laws of Delaware.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 1 of 49

    	 

    

 

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

		Article 1.	Introduction

 

This CRADA between ICD and Collaborator will be effective when
signed by the Parties, which are identified on both the Cover Page and the Signature Page (page 22). The official contacts for
the Parties are identified on the Contacts Information Page (page 23). Publicly available information regarding this CRADA appears
on the Summary Page (page 24). The research and development activities that will be undertaken by ICD, ICD’s contractors
or grantees, and Collaborator in the course of this CRADA are detailed in the Research Plan, attached as Appendix A. The staffing,
funding, and materials contributions of the Parties are set forth in Appendix B. Any changes to the model CRADA are set forth in
Appendix C.

 

		Article 2.	Definitions

 

The terms listed in this Article will carry the meanings indicated
throughout the CRADA. To the extent a definition of a term as provided in this Article is inconsistent with a corresponding definition
in the applicable sections of either the United States Code (U.S.C.) or the Code of Federal Regulations (C.F.R.), the definition
in the U.S.C. or C.F.R. will control.

 

“Adverse Drug Experience” or “ADE”
means an Adverse Event associated with the use of the Test Article, that is, an event where there is a reasonable possibility that
the Test Article may have caused the event (a relationship between the Test Article and the event cannot be ruled out), in accordance
with the definitions of 21 C.F.R. Part 310, 305, or 312, or other applicable regulations.

 

“Adverse Event” or “AE”
means any untoward medical occurrence in a Human Subject administered Test Article. An AE does not necessarily have a causal relationship
with the Test Article, that is, it can be any unfavorable and unintended sign (including an abnormal laboratory finding), symptom,
or disease temporally associated with the use of the Test Article, whether or not it is related to it. See FDA Good Clinical Practice
Guideline (International Conference on Harmonisation (ICH) E6: “Good Clinical Practice: Consolidated Guidance, 62 Federal
Register 25, 691 (1997)).

 

“Affiliate” means any corporation
or other business entity controlled by, controlling, or under common control with Collaborator at any time during the term of the
CRADA. For this purpose, “control” means direct or indirect beneficial ownership of at least fifty percent (50%) of
the voting stock or at least fifty percent (50%) interest in the income of the corporation or other business entity.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 2 of 49

    	 

    

 

“Annual Report” means the report
of progress of an IND-associated investigation that the Sponsor must submit to the FDA within sixty (60) days of the anniversary
of the effective date of the IND (pursuant to 21 C.F.R. § 312.33).

 

“Background Invention” means an
Invention conceived and first actually reduced to practice before the Effective Date.

 

“Clinical Data in ICD’s Possession
and Control” means all Raw Data that ICD employees create directly; and all copies of Raw Data and Summary Data that
ICD obtains from Clinical Investigators or contractors performing CRADA activities.

 

“Clinical Investigator” means,
in accordance with 21 C.F.R. § 312.3, an individual who actually conducts a clinical investigation, that is, who directs the
administration or dispensation of Test Article to a subject, and who assumes responsibility for studying Human Subjects, for recording
and ensuring the integrity of research data, and for protecting the welfare and safety of Human Subjects.

 

“Clinical Research Site(s)” means
the site(s) at which the Protocol(s) described in the Research Plan will be performed.

 

“Collaborator Materials” means
all tangible materials not first produced in the performance of this CRADA that are owned or controlled by Collaborator and used
in the performance of the Research Plan. The term “Collaborator Materials” does not include “Test Article”
(defined below).

 

“Confidential Information” means
confidential scientific, business, financial information, or Identifiable Private Information provided that Confidential Information
does not include:

 

		(a)	information that is publicly known or that is available from public sources;

		(b)	information that has been made available by its owner to others without a confidentiality obligation;

		(c)	information that is already known by the receiving Party, or information that is independently created or compiled by the receiving
Party without reference to or use of the provided information; or

		(d)	information that relates to potential hazards or cautionary warnings associated with the production, handling, or use of the
subject matter of the Research Plan.

 

“Cooperative Research and Development Agreement”
or “CRADA” means this Agreement, entered into pursuant to the Federal Technology Transfer Act of 1986, as amended
(15 U.S.C. §§ 3710a et seq.), and Executive Order 12591 of April 10, 1987.

 

“CRADA Data” means information
developed by or on behalf of the Parties in the performance of the Research Plan, excluding Raw Data.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 3 of 49

    	 

    

 

“CRADA Materials” means all tangible
materials first produced in the performance of the Research Plan other than CRADA Data.

 

“CRADA Principal Investigator(s)”
or “CRADA PI(s)” means the person(s) designated by the Parties who will be responsible for the scientific and
technical conduct of the Research Plan.

 

“CRADA Subject Invention” means
any Invention of either or both Parties, conceived or first actually reduced to practice in the performance of the Research Plan.

 

“Drug Master File” or “DMF”
is described in 21 C.F.R. Part 314.420. A DMF is a submission to the FDA that may be used to provide confidential detailed information
about facilities, processes, or articles used in the manufacturing, processing, packaging, and storing of one or more human drugs.

 

“Effective Date” means the date
of the last signature of the Parties executing this Agreement.

 

“Government” means the Government
of the United States of America.

 

“Human Subject” means, in accordance
with the definition in 45 C.F.R. § 46.102(f), a living individual about whom an investigator conducting research obtains:

 

		(a)	data through intervention or interaction with the individual; or

		(b)	Identifiable Private Information.

 

“ICD Materials” means all tangible
materials not first produced in the performance of this CRADA that are owned or controlled by ICD and used in the performance of
the Research Plan.

 

“IND” means an “Investigational
New Drug Application,” filed in accordance with 21 C.F.R. Part 312 under which clinical investigation of an experimental
drug or biologic (Test Article) is performed in Human Subjects in the United States or intended to support a United States licensing
action.

 

“Identifiable Private Information”
or “IPI” about a Human Subject means private information from which the identity of the subject is or may readily
be ascertained. Regulations defining and governing this information include 45 C.F.R. Part 46 and 21 C.F.R. Part 50.

 

“Institutional Review Board” or
“IRB” means, in accordance with 45 C.F.R. Part 46, 21 C.F.R. part 56, and other applicable regulations, an independent
body comprising medical, scientific, and nonscientific members, whose responsibility is to ensure the protection of the rights,
safety, and well-being of the Human Subjects involved in a study.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 4 of 49

    	 

    

 

“Invention” means any invention
or discovery that is or may be patentable or otherwise protected under Title 35 of the United States Code, or any novel variety
of plant which is or may be protectable under the Plant Variety Protection Act, 7 U.S.C. §§ 2321 et seq.

 

“Investigator’s Brochure”
means, in accordance with the definition in 21 C.F.R. § 312.23(a)(5), a document containing information about the Test Article,
including animal screening, preclinical toxicology, and detailed pharmaceutical data, including a description of possible risks
and side effects to be anticipated on the basis of prior experience with the drug or related drugs, and precautions, such as additional
monitoring, to be taken as part of the investigational use of the drug.

 

“Patent Application” means an application
for patent protection for a CRADA Subject Invention with the United States Patent and Trademark Office (“U.S.P.T.O.”)
or the corresponding patent-issuing authority of another nation.

 

“Patent” means any issued United
States patent, any international counterpart(s), and any corresponding grant(s) by a non-U.S. government in place of a patent.

 

“Placebo” means an inactive substance
identical in appearance to the material being tested that is used to distinguish between drug action and suggestive effect of the
material under study.

 

“Protocol” means the formal, detailed
description of a study to be performed as provided for in the Research Plan. It describes the objective(s), design, methodology,
statistical considerations, and organization of a trial. For the purposes of this CRADA, the term, Protocol, for clinical research
involving Human Subjects, includes any and all associated documents, including informed consent forms, to be provided to Human
Subjects and potential participants in the study.

 

“Raw Data” means the primary quantitative
and empirical data first collected from experiments and clinical trials conducted within the scope of this CRADA.

 

“Research Plan” means the statement
in Appendix A of the respective research and development commitments of the Parties. The Research Plan should describe the provisions
for sponsoring the IND, clinical and safety monitoring, and data management.

 

“Sponsor” means, in accordance
with the definition in 21 C.F.R. § 312.3, an organization or individual who assumes legal responsibility for supervising or
overseeing clinical trials with Test Articles, and is sometimes referred to as the IND holder.

 

“Steering Committee” means the
research and development team whose composition and responsibilities with regard to the research performed under this CRADA are
described in Appendix A.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 5 of 49

    	 

    

 

“Summary Data” means any extract
or summary of the Raw Data, generated either by or, on behalf of, ICD or by, or on behalf of, Collaborator. Summary Data may include
extracts or summaries that incorporate IPI.

 

“Test Article” means, in accordance
with 21 C.F.R. § 50.30(j), any drug (including a biological product), medical device, food additive, color additive, electronic
product, or any other article subject to regulation under the Federal Food, Drug, and Cosmetic Act that is intended for administration
to humans or animals, including a drug or biologic as identified in the Research Plan and Appendix B, that is used within the scope
of the Research Plan. The Test Article may also be referred to as Investigational Agent, Study Material, or Study Product.

 

		Article 3.	Cooperative Research and Development

 

		3.1	Performance of Research and Development. The research and development activities to be carried out under this CRADA
will be performed by the Parties identified on the Cover Page, as well as ICD’s contractors or grantees as described in the
Research Plan. However, ICD’s contractors or grantees are not Parties to the CRADA, and this CRADA does not grant to Collaborator
any rights to Inventions made by ICD’s contractors or grantees. The CRADA PIs will be responsible for coordinating the scientific
and technical conduct of this project on behalf of their employers. Any Collaborator employees who will work at ICD facilities
will be required to sign a Guest Researcher or Special Volunteer Agreement appropriately modified in view of the terms of this
CRADA.

 

		3.2	Research Plan. The Parties recognize that the Research Plan describes the collaborative research and development activities
they will undertake and that interim research goals set forth in the Research Plan are good faith guidelines. Should events occur
that require modification of these goals, then by mutual agreement the Parties can modify them through an amendment, according
to Paragraph 13.6.

 

		3.3	Use and Disposition of Collaborator Materials and ICD Materials. The Parties agree to use Collaborator Materials and
ICD Materials only in accordance with the Research Plan and Protocol(s), not to transfer these materials to third parties except
in accordance with the Research Plan and Protocol(s) or as approved by the owning or providing Party, and, upon expiration or termination
of the CRADA, to dispose of these materials as directed by the owning or providing Party.

 

		3.4	Third-Party Rights in Collaborator’s CRADA Subject Inventions. If Collaborator has received (or will receive)
support of any kind from a third party in exchange for rights in any of Collaborator’s CRADA Subject Inventions, Collaborator
agrees to ensure that its obligations to the third party are both consistent with Articles 6 through 8 and subordinate to Article
7 of this CRADA.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 6 of 49

    	 

    

 

		3.5	Disclosures to ICD. Prior to execution of this CRADA, Collaborator agrees to disclose to ICD all instances in which
outstanding royalties are due under a PHS license agreement and in which Collaborator had a PHS license terminated in accordance
with 37 C.F.R. § 404.10. These disclosures will be treated as Confidential Information upon request by Collaborator in accordance
with the definition in Article 2 and Paragraphs 8.3 and 8.4.

 

		3.6	Clinical Investigator Responsibilities. The Clinical Investigator will be required to submit, or to arrange for submission
of, each Protocol associated with this CRADA to all appropriate IRBs, and for ensuring that the IRBs are notified of the role of
Collaborator in the research. In addition to the Protocol all associated documents, including informational documents and advertisements,
must be reviewed and approved by the appropriate IRB(s) before starting the research at each Clinical Research Site. The research
will be done in strict accordance with the Protocol(s) and no substantive changes in a finalized Protocol will be made unless mutually
agreed upon, in writing, by the Parties. Research will not commence (or will continue unchanged, if already in progress) until
each substantive change to a Protocol, including those required by either the FDA or the IRB, has been integrated in a way acceptable
to the Parties, submitted to the FDA (if applicable) and approved by the appropriate IRBs.

 

		3.7	Investigational Applications.

 

		3.7.1	If an IND is required either ICD or Collaborator, as indicated in the Research Plan, will submit an IND, and all Clinical Investigators
must have completed registration documents on file (1572 forms).

 

		3.7.2	If ICD elects to file its own IND, Collaborator agrees to provide ICD background data and information necessary to support
the IND. Collaborator further agrees to provide a letter of cross-reference to all pertinent regulatory filings sponsored by Collaborator.
Collaborator’s employees will be reasonably available to respond to inquiries from the FDA regarding information and data
contained in the Collaborator’s IND, DMF, other filings, or other information and data provided to ICD by the Collaborator
pursuant to this Article 3. If ICD has provided information or data to assist Collaborator in its IND filing, ICD will provide
a letter of cross reference to its IND and respond to inquiries related to information provided by ICD, as applicable.

 

		3.7.3	If Collaborator supplies Confidential Information to ICD in support of an IND filed by ICD, this information will be protected
in accordance with the corresponding confidentiality provisions of Article 8.

 

		3.7.4	Collaborator may sponsor its own clinical trials and hold its own IND for studies performed outside the scope of this CRADA.
These studies, however, should not adversely affect the ability to accomplish the goal of the Research Plan, for example, by competing
for the same study population. All data from those clinical trials are proprietary to Collaborator for purposes of this CRADA.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 7 of 49

    	 

    

 

		3.8	Test Article Information and Supply. Collaborator agrees to provide ICD without charge and on a schedule that will ensure
adequate and timely performance of the research, a sufficient quantity of formulated and acceptably labeled, clinical-grade Test
Article (and, as required by the Protocol(s), Placebo) to complete the clinical trial(s) agreed to and approved under this CRADA.
Collaborator will provide a Certificate of Analysis to ICD for each lot of the Test Article provided.

 

		3.9	Test Article Delivery and Usage. Collaborator will ship the Test Article and, if required, Placebo to ICD or its designee
in containers marked in accordance with 21 C.F.R. § 312.6. ICD agrees that the Clinical Investigators will keep appropriate
records and take reasonable steps to ensure that the Test Article is used in accordance with the Protocol(s) and applicable FDA
regulations. In addition, ICD agrees that the Test Article (and all Confidential Information supplied by Collaborator relating
to the Test Article) will be used solely for the conduct of the CRADA research and development activities. Furthermore, ICD agrees
that no analysis or modification of the Test Article will be performed without Collaborator’s prior written consent. At the
completion of the Research Plan, any unused quantity of Test Article will be returned to Collaborator or disposed as directed by
Collaborator. Pharmacy contacts at ICD or its designee will be determined by ICD and communicated to Collaborator.

 

		3.10	Monitoring.

 

		3.10.1	The Sponsor or its designee will be primarily responsible for monitoring clinical sites and for assuring the quality of all
clinical data, unless otherwise stated in the Research Plan. Monitoring will comply with FDA Good Clinical Practice (International
Conference on Harmonisation (ICH) E6: “Good Clinical Practice: Consolidated Guidance; 62 Federal Register 25, 691 (1997)).
The other Party may also perform quality assurance oversight. The monitor will communicate significant Protocol violations and
submit documentation of monitoring outcomes on Protocol insufficiencies to the other Party in a timely manner.

 

		3.10.2	Subject to the restrictions in Article 8 concerning IPI, and with reasonable advance notice and at reasonable times, ICD will
permit Collaborator or its designee(s) access to clinical site(s) to monitor the conduct of the research, as well as to audit source
documents containing Raw Data, to the extent necessary to verify compliance with FDA Good Clinical Practice and the Protocol(s).

 

		3.11	FDA Meetings/Communications. All meetings with the FDA concerning any clinical trial within the scope of the Research
Plan will be discussed by Collaborator and ICD in advance. Each Party reserves the right to take part in setting the agenda for,
to attend, and to participate in these meetings. The Sponsor will provide the other Party with copies of FDA meeting minutes, all
transmittal letters for IND submissions, IND safety reports, formal questions and responses that have been submitted to the FDA,
Annual Reports, and official FDA correspondence, pertaining either to the INDs under this CRADA or to the Clinical Investigators
on Protocols performed in accordance with the Research Plan, except to the extent that those documents contain the proprietary
information of a third party or dissemination is prohibited by law.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 8 of 49

    	 

    

 

		Article 4.	Reports

 

		4.1	Interim Research and Development Reports. The CRADA PIs should exchange information regularly, in writing. This exchange
may be accomplished through meeting minutes, detailed correspondence, circulation of draft manuscripts, Steering Committee reports,
copies of Annual Reports and any other reports updating the progress of the CRADA research. However, the Parties must exchange
updated Investigator’s Brochure, formulation and preclinical data, and toxicology findings, as they become available.

 

		4.2	Final Research and Development Reports. The Parties will exchange final reports of their results within six (6) months
after the expiration or termination of this CRADA. These reports will set forth the technical progress made; any publications arising
from the research; and the existence of invention disclosures of potential CRADA Subject Inventions and/or any corresponding Patent
Applications.

 

		4.3	Fiscal Reports. If Collaborator has agreed to provide funding to ICD under this CRADA and upon the request of Collaborator,
then concurrent with the exchange of final research and development reports according to Paragraph 4.2, ICD will submit to Collaborator
a statement of all costs incurred by ICD for the CRADA. If the CRADA has been terminated, ICD will specify any costs incurred before
the date of termination for which ICD has not received funds from Collaborator, as well as for all reasonable termination costs
including the cost of returning Collaborator property or removal of abandoned Collaborator property, for which Collaborator will
be responsible.

 

		4.4	Safety Reports. In accordance with FDA requirements, the Sponsor will establish and maintain records and submit safety
reports to the FDA, as required by 21 C.F.R. § 312.32 and 21 C.F.R. 812.150(b)(1), or other applicable regulations. In the
conduct of research under this CRADA, the Parties will comply with specific ICD guidelines and policies for reporting ADEs and
AEs, as well as procedures specified in the Protocol(s). The Sponsor must provide the other Party with copies of all Safety Reports
concurrently with their submission to the FDA, and with any other information affecting the safety of Human Subjects in research
conducted under this CRADA.

 

		4.5	Annual Reports. The Sponsor will provide the other Party a copy of the Annual Report concurrently with the submission
of the Annual Report to the FDA. Annual Reports will be kept confidential in accordance with Article 8.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 9 of 49

    	 

    

 

		Article 5.	Staffing, Financial, and Materials Obligations

 

		5.1	ICD and Collaborator Contributions. The contributions of any staff, funds, materials, and equipment by the Parties are
set forth in Appendix B. The Federal Technology Transfer Act of 1986, 15 U.S.C. §3710a(d)(l) prohibits ICD from providing
funds to Collaborator for any research and development activities under this CRADA.

 

		5.2	ICD Staffing.  No ICD employees will devote 100% of their effort or time to the research and development activities
under this CRADA. ICD will not use funds provided by Collaborator under this CRADA for ICD personnel to pay the salary of any permanent
ICD employee. Although personnel hired by ICD using CRADA funds will focus principally on CRADA research and development activities,
Collaborator acknowledges that these personnel may nonetheless make contributions to other research and development activities,
and the activities will be outside the scope of this CRADA.

 

		5.3	Collaborator Funding. Collaborator acknowledges that Government funds received by Collaborator from an agency of the
Department of Health and Human Services may not be used to fund ICD under this CRADA. If Collaborator has agreed to provide funds
to ICD then the payment schedule appears in Appendix B and Collaborator will make payments according to that schedule. If Collaborator
fails to make any scheduled payment, ICD will not be obligated to perform any of the research and development activities specified
herein or to take any other action required by this CRADA until the funds are received. ICD will use these funds exclusively for
the purposes of this CRADA. Each Party will maintain separate and distinct current accounts, records, and other evidence supporting
its financial obligations under this CRADA and, upon written request, will provide the other Party a Fiscal Report according to
Paragraph 4.3, which delineates all payments made and all obligated expenses, along with the Final Research Report described in
Paragraph 4.2.

 

		5.4	Capital Equipment. Collaborator’s commitment, if any, to provide ICD with capital equipment to enable the research
and development activities under the Research Plan appears in Appendix B. If Collaborator transfers to ICD the capital equipment
or provides funds for ICD to purchase it, then ICD will own the equipment. If Collaborator loans capital equipment to ICD for use
during the CRADA, Collaborator will be responsible for paying all costs and fees associated with the transport, installation, maintenance,
repair, removal, or disposal of the equipment, and ICD will not be liable for any damage to the equipment.

 

		Article
                            6.	Intellectual
                                                                                                                                                       Property

 

		6.1	Ownership of CRADA Subject Inventions, CRADA Data, and CRADA Materials. Subject to the Government license described
in Paragraph 7.5, the sharing requirements of Paragraph 8.1 and the regulatory filing requirements of Paragraph 8.2, the producing
Party will retain sole ownership of and title to all CRADA Subject Inventions, all copies of CRADA Data, and all CRADA Materials
produced solely by its employee(s). The Parties will own jointly all CRADA Subject Inventions invented jointly and all CRADA Materials
developed jointly. A PHS contractor’s or grantee’s rights in data it generates will not be affected by this CRADA.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 10 of 49

    	 

    

 

		6.2	Reporting. The Parties will promptly report to each other in writing each CRADA Subject Invention reported by their
respective personnel, and any Patent Applications filed thereon, resulting from the research and development activities conducted
under this CRADA. Each Party will report all CRADA Subject Inventions to the other Party in sufficient detail to determine inventorship,
which will be determined in accordance with U.S. patent law. These reports will be treated as Confidential Information in accordance
with Article 8. Formal reports will be made by and to the Patenting and Licensing Offices identified on the Contacts Information
Page herein.

 

		6.3	Filing of Patent Applications. Each Party will make timely decisions regarding the filing of Patent Applications on
the CRADA Subject Inventions made solely by its employee(s), and will notify the other Party in advance of filing. Collaborator
will have the first opportunity to file a Patent Application on joint CRADA Subject Inventions and will notify PHS of its decision
within sixty (60) days of an Invention being reported or at least thirty (30) days before any patent filing deadline, whichever
occurs sooner. If Collaborator fails to notify PHS of its decision within that time period or notifies PHS of its decision not
to file a Patent Application, then PHS has the right to file a Patent Application on the joint CRADA Subject Invention. Neither
Party will be obligated to file a Patent Application. Collaborator will place the following statement in any Patent Application
it files on a CRADA Subject Invention: “This invention was created in the performance of a Cooperative Research and Development
Agreement with the [INSERT into Agency’s model as appropriate: National Institutes of Health, Food and Drug Administration,
Centers for Disease Control and Prevention], an Agency of the Department of Health and Human Services. The Government of the
United States has certain rights in this invention.” If either Party files a Patent Application on a joint CRADA Subject
Invention, then the filing Party will include a statement within the Patent Application that clearly identifies the Parties and
states that the joint CRADA Subject Invention was made under this CRADA.

 

		6.4	Patent Expenses. Unless agreed otherwise, the Party filing a Patent Application will pay all preparation and filing
expenses, prosecution fees, issuance fees, post issuance fees, patent maintenance fees, annuities, interference expenses, and attorneys’
fees for that Patent Application and any resulting Patent(s). If a license to any CRADA Subject Invention is granted to Collaborator,
then Collaborator will be responsible for all expenses and fees, past and future, in connection with the preparation, filing, prosecution,
and maintenance of any Patent Applications and Patents claiming exclusively licensed CRADA Subject Inventions and will be responsible
for a pro-rated share, divided equally among all licensees, of those expenses and fees for non-exclusively licensed CRADA Subject
Inventions. Collaborator may waive its exclusive option rights at any time, and incur no subsequent financial obligation for those
Patent Application(s) or Patent(s).

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 11 of 49

    	 

    

 

		6.5	Prosecution of Patent Applications. The Party filing a Patent Application will provide the non-filing Party with a copy
of any official communication relating to prosecution of the Patent Application within thirty (30) days of transmission of the
communication. Each Party will also provide the other Party with the power to inspect and make copies of all documents retained
in the applicable Patent Application or Patent file. The Parties agree to consult with each other regarding the prosecution of
Patent Applications directed to joint CRADA Subject Inventions. If Collaborator elects to file and prosecute Patent Applications
on joint CRADA Subject Inventions, then Collaborator agrees to use the U.S.P.T.O. Customer Number Practice and/or grant PHS a power(s)
of attorney (or equivalent) necessary to assure PHS access to its intellectual property rights in these Patent Applications. PHS
and Collaborator will cooperate with each other to obtain necessary signatures on Patent Applications, assignments, or other documents.

 

		Article 7.	Licensing

 

		7.1	Background Inventions. Other than as specifically stated in this Article 7, nothing in this CRADA will be construed
to grant any rights in one Party’s Background Invention(s) to the other Party, except to the extent necessary for the Parties
to conduct the research and development activities described in the Research Plan.

 

		7.2	Collaborator’s License Option to CRADA Subject Inventions. With respect to Government rights to any CRADA Subject
Invention made solely by an ICD employee(s) or made jointly by an ICD employee(s) and a Collaborator employee(s) for which a Patent
Application was filed, PHS hereby grants to Collaborator an exclusive option to elect an exclusive or nonexclusive commercialization
license. The license will be substantially in the form of the appropriate model PHS license agreement and will fairly reflect the
nature of the CRADA Subject Invention, the relative contributions of the Parties to the CRADA Subject Invention and the CRADA,
a plan for the development and marketing of the CRADA Subject Invention, the risks incurred by Collaborator, and the costs of subsequent
research and development needed to bring the CRADA Subject Invention to the marketplace. The field of use of the license will not
exceed the scope of the Research Plan.

 

		7.3	Exercise of Collaborator’s License Option. To exercise the option of Paragraph 7.2 Collaborator must submit a
written notice to the PHS Patenting and Licensing Contact identified on the Contacts Information Page (and provide a copy to the
ICD Contact for CRADA Notices) within three (3) months after either (i) Collaborator receives written notice from PHS that the
Patent Application has been filed or (ii) the date on which Collaborator files the Patent Application. The written notice exercising
this option will include a completed “Application for License to Public Health Service Inventions” and will initiate
a negotiation period that expires nine (9) months after the exercise of the option. If PHS has not responded in writing to the
last proposal by Collaborator within this nine (9) month period, the negotiation period will be extended to expire one (1) month
after PHS so responds, during which month Collaborator may accept in writing the final license proposal of PHS. In the absence
of Collaborator’s exercise of the option, or upon election of a nonexclusive license, PHS will be free to license the CRADA
Subject Invention to others. These time periods may be extended at the sole discretion of PHS upon good cause shown in writing
by Collaborator.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 12 of 49

    	 

    

 

		7.4	Government License in ICD Sole CRADA Subject Inventions and Joint CRADA Subject Inventions. Pursuant to 15 U.S.C. §
3710a(b)(l)(A), for CRADA Subject Inventions owned solely by ICD or jointly by ICD and Collaborator, and licensed pursuant to the
option of Paragraph 7.2, Collaborator grants to the Government a nonexclusive, nontransferable, irrevocable, paid-up license to
practice the CRADA Subject Invention or have the CRADA Subject Invention practiced throughout the world by or on behalf of the
Government. In the exercise of this license, the Government will not publicly disclose trade secrets or commercial or financial
information that is privileged or confidential within the meaning of 5 U.S.C. § 552(b)(4) or which would be considered privileged
or confidential if it had been obtained from a non-federal party.

 

		7.5	Government License in Collaborator Sole CRADA Subject Inventions.  Pursuant to 15 U.S.C. § 371 a(b)(2), for CRADA
Subject Inventions made solely by an employee of Collaborator, Collaborator grants to the Government a nonexclusive, nontransferable,
irrevocable, paid-up license to practice the CRADA Subject Invention or have the CRADA Subject Invention practiced throughout the
world by or on behalf of the Government for research or other Government purposes.

 

		7.6	Third Party License. Pursuant to 15 U.S.C. § 3710a(b)(l)(B), if PHS grants Collaborator an exclusive license to
a CRADA Subject Invention made solely by an ICD employee or jointly with a Collaborator employee, the Government will retain the
right to require Collaborator to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense
to use the CRADA Subject Invention in Collaborator’s licensed field of use on terms that are reasonable under the circumstances;
or, if Collaborator fails to grant a license, to grant a license itself. The exercise of these rights by the Government will only
be in exceptional circumstances and only if the Government determines (i) the action is necessary to meet health or safety needs
that are not reasonably satisfied by Collaborator, (ii) the action is necessary to meet requirements for public use specified by
federal regulations, and such requirements are not reasonably satisfied by Collaborator; or (iii) Collaborator has failed to comply
with an agreement containing provisions described in 15 U.S.C. § 3710a(c)(4)(B). The determination made by the Government
under this Paragraph is subject to administrative appeal and judicial review under 35 U.S.C. § 203(2).

 

		7.7	Third-Party Rights In ICD Sole CRADA Subject Inventions. For a CRADA Subject Invention conceived prior to the Effective
Date solely by an ICD employee that is first actually reduced to practice after the Effective Date in the performance of the Research
Plan, the option offered to Collaborator in Paragraph 7.2 may be restricted if, prior to the Effective Date, PHS had filed a Patent
Application and has either offered or granted a license in the CRADA Subject Invention to a third party. Collaborator nonetheless
retains the right to apply for a license to any such CRADA Subject Invention in accordance with the terms and procedures of 35
U.S.C. § 209 and 37 C.F.R. Part 404.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 13 of 49

    	 

    

 

		7.8	Joint CRADA Subject Inventions Not Exclusively Licensed by Collaborator. If Collaborator does not acquire an exclusive
commercialization license in a joint CRADA Subject Invention in all fields of use then, for those fields of use not exclusively
licensed to Collaborator, each Party will have the right to use the joint CRADA Subject Invention and to license its use to others,
and each Party will cooperate with the other, as necessary, to fulfill international licensing requirements. The Parties may agree
to a joint licensing approach for any remaining fields of use.

 

		Article 8.	Rights of Access and Publication

 

		8.1	Right of Access to CRADA Data and CRADA Materials. ICD and Collaborator agree to exchange all CRADA Data and to share
all CRADA Materials. If the CRADA is terminated, both Parties agree to provide CRADA Materials in quantities needed to complete
the Research Plan. Such provision will occur before the termination date of the CRADA or sooner, if required by the Research Plan.
If Collaborator possesses any human biological specimens from clinical trials under the CRADA, the specimens must be handled as
described in the Protocol or as otherwise directed by ICD before the termination date of the CRADA.

 

		8.2	Use of CRADA Data and CRADA Materials. The Parties will be free to utilize CRADA Data and CRADA Materials internally
for their own purposes, consistent with their obligations under this CRADA. ICD may share CRADA Data or CRADA Materials with any
contractors, grantees, or agents it has engaged to conduct the CRADA research and development activities, provided the obligations
of this Article 8.2 are simultaneously conveyed. Collaborator may share CRADA Data or CRADA Materials with any contractors, Affiliates,
or agents it has engaged to conduct the CRADA research and development activities, provided the obligations of this Article 8.2
are simultaneously conveyed.

	

 

		8.2.1	CRADA Data.

Collaborator and ICD will use reasonable efforts to
keep CRADA Data confidential until published or until corresponding Patent Applications are filed. To the extent permitted by law,
each Party will have the right to use any and all CRADA Data in and for any regulatory filing by or on behalf of the Party.

 

		8.2.2	CRADA Materials.

Collaborator and ICD will use reasonable efforts to
keep descriptions of CRADA Materials confidential until published or until corresponding Patent Applications are filed. Collaborator
acknowledges that the basic research mission of PHS includes sharing with third parties for further research those research resources
made in whole or in part with NIH funding. Consistent with this mission and the tenets articulated in “Sharing of Biomedical
Research Resources: Principles and Guidelines for Recipients of NIH Research Grants and Contracts,” December 1999, available
at http://ott.od.nih.gov/NewPages/RTguide_final.html, following publication either Party may make available to third parties for
further research those CRADA Materials made jointly by both PHS and Collaborator. Notwithstanding the above, if those joint CRADA
Materials are the subject of a pending Patent Application or a Patent, or were created using a patent-pending or patented material
or technology, the Parties may agree to restrict distribution or freely distribute them. Either Party may distribute those CRADA
Materials made solely by the other Party only upon written consent from that other Party or that other Party’s designee.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 14 of 49

    	 

    

 

		8.3	Confidential Information. Each Party agrees to limit its disclosure of Confidential Information to the amount necessary
to carry out the Research Plan, and will place a confidentiality notice on all this information. A Party orally disclosing Confidential
Information to the other Party will summarize the disclosure in writing and provide it to the other Party within fifteen (15) days
of the disclosure. Each Party receiving Confidential Information agrees to use it only for the purposes described in the Research
Plan. Either Party may object to the designation of information as Confidential Information by the other Party.

 

		8.4	Protection of Confidential Information. Confidential Information will not be disclosed, copied, reproduced or otherwise
made available to any other person or entity without the consent of the owning or providing Party except as required by a court
or administrative body of competent jurisdiction, or federal law or regulation. Each Party agrees to use reasonable efforts to
maintain the confidentiality of Confidential Information, which will in no instance be less effort than the Party uses to protect
its own Confidential Information. Each Party agrees that a Party receiving Confidential Information will not be liable for the
disclosure of that portion of the Confidential Information which, after notice to and consultation with the disclosing Party, the
receiving Party determines may not be lawfully withheld, provided the disclosing Party has been given a reasonable opportunity
to seek a court order to enjoin disclosure.

 

		8.5	Human Subject Protection. The research to be conducted under this CRADA involves Human Subjects or human tissues within
the meaning of 45 C.F.R. Part 46, and all research to be performed under this CRADA will conform to applicable federal laws and
regulations. Additional information is available from the HHS Office for Human Research Protections (http://www.hhs.gov/ohrp/).

 

		8.6	Duration of Confidentiality Obligation. The obligation to maintain the confidentiality of Confidential Information will
expire at the earlier of the date when the information is no longer Confidential Information as defined in Article 2 or three (3)
years after the expiration or termination date of this CRADA, except for IPI, for which the obligation to maintain confidentiality
will extend indefinitely. Collaborator may request an extension to this term when necessary to protect Confidential Information
relating to products not yet commercialized.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		8.7	Publication. The Parties are encouraged to make publicly available the results of their research and development activities.
Before either Party submits a paper or abstract for publication or otherwise intends to publicly disclose information about a CRADA
Subject Invention, CRADA Data, or CRADA Materials, the other Party will have thirty (30) days to review proposed manuscripts and
three (3) days to review proposed abstracts to assure that Confidential Information is protected. Either Party may request in writing
that the proposed publication or other disclosure be delayed for up to thirty (30) additional days as necessary to file a Patent
Application.

 

		8.8	Clinical Investigators’ Research and Development Activities. Although this CRADA does not grant to Collaborator
any rights to Inventions made or Raw Data generated by ICD’s contractors or grantees, as they are not parties to this CRADA,
ICD agrees that:

 

		8.8.1	Subject to the other provisions of Article 8 of this CRADA, ICD will maintain, to the extent permitted by law, all Clinical
Data in ICD’s Possession and Control as Confidential Information, and make them available to Collaborator for its own use
and for exclusive use in obtaining regulatory approval for the commercial marketing of Test Article and related CRADA Subject Inventions.

 

		8.8.2	With regard to Collaborator’s Confidential Information, ICD will require the Clinical Investigators to agree to confidentiality
provisions at least as restrictive as those provided in this CRADA and to Collaborator’s use of data in accordance with Paragraph
8.8.1 for obtaining regulatory approval for marketing Test Article.

 

		8.8.3	If Collaborator wants access to Raw Data or any other data in the possession of the Clinical Investigators working with Test
Article, Collaborator must first contact the CRADA PI. Collaborator will bear any costs associated with Raw Data provided in formats
customized for Collaborator.

 

		8.8.4	Collaborator’s right to access Clinical Data in ICD’s Possession and Control under Paragraph 8.8 is dependent upon
Collaborator’s continued development and commercialization of Investigational Agent. If Collaborator fails to continue development
or commercialization of Investigational Agent without the transfer of its development efforts to another party within ninety (90)
days of discontinuation, ICD has the right to make Clinical Data in ICD’s Possession and Control available to a third party.

 

		Article 9.	Representations and Warranties

 

		9.1	Representations of ICD. ICD hereby represents to Collaborator that:

 

		9.1.1	ICD has the requisite power and authority to enter into this CRADA and to perform according to its terms, and that ICD’s
official signing this CRADA has authority to do so.

 

		9.1.2	To the best of its knowledge and belief, neither ICD nor any of its personnel involved in this CRADA is presently subject to
debarment or suspension by any agency of the Government which would directly affect its performance of the CRADA. Should ICD or
any of its personnel involved in this CRADA be debarred or suspended during the term of this CRADA, ICD will notify Collaborator
within thirty (30) days of receipt of final notice.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		9.2	Representations and Warranties of Collaborator. Collaborator hereby represents and warrants to ICD that:

 

		9.2.1	Collaborator has the requisite power and authority to enter into this CRADA and to perform according to its terms, and that
Collaborator’s official signing this CRADA has authority to do so.

 

		9.2.2	Neither Collaborator nor any of its personnel involved in this CRADA, including Affiliates, agents, and contractors are presently
subject to debarment or suspension by any agency of the Government. Should Collaborator or any of its personnel involved in this
CRADA be debarred or suspended during the term of this CRADA, Collaborator will notify ICD within thirty (30) days of receipt of
final notice.

 

		9.2.3	Subject to Paragraph 12.3, and if and to the extent Collaborator has agreed to provide funding under Appendix B, Collaborator
is financially able to satisfy these obligations in a timely manner.

 

		9.2.4	The Test Article provided has been produced in accordance with the FDA’s current Good Manufacturing Practice set out
in 21 C.F.R. §§ 210-211, and ICH QA7, and meets the specifications cited in the Certificate of Analysis and Investigator’s
Brochure provided.

 

		Article 10.	Expiration and Termination

 

		10.1	Expiration. This CRADA will expire on the last date of the term set forth on the Summary Page. In no case will the term
of this CRADA extend beyond the term indicated on the Summary Page unless it is extended in writing in accordance with Paragraph
13.6.

 

		10.2	Termination by Mutual Consent. ICD and Collaborator may terminate this CRADA at any time by mutual written consent.

 

		10.3	Unilateral Termination. Either ICD or Collaborator may unilaterally terminate this CRADA at any time by providing written
notice at least sixty (60) days before the desired termination date. ICD may, at its option, retain funds transferred to ICD before
unilateral termination by Collaborator for use in completing the Research Plan. If Collaborator terminates this Agreement before
the completion of all approved or active Protocol(s), then Collaborator will supply enough Test Article (and Placebo, if applicable)
to complete these Protocol(s) unless termination is for safety concerns.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 17 of 49

    	 

    

 

		10.4	Funding for ICD Personnel. If Collaborator has agreed to provide funding for ICD personnel and this CRADA is mutually
or unilaterally terminated by Collaborator before its expiration, then Collaborator agrees that funds for that purpose will be
available to ICD for a period of six (6) months after the termination date or until the expiration date of the CRADA, whichever
occurs sooner. If there are insufficient funds to cover this expense, Collaborator agrees to pay the difference.

 

		10.5	New Commitments. Neither Party will incur new expenses related to this CRADA after expiration, mutual termination, or
a notice of a unilateral termination and will, to the extent feasible, cancel all outstanding commitments and contracts by the
termination date. Collaborator acknowledges that ICD will have the authority to retain and expend any funds for up to one (1) year
subsequent to the expiration or termination date to cover any unpaid costs obligated during the term of the CRADA in undertaking
the research and development activities set forth in the Research Plan.

 

		10.6	Collaborator Failure to Continue Development. If Collaborator suspends development of the Test Article without the transfer
of its active development efforts, assets, and obligations to a third party within ninety (90) days of discontinuation, Collaborator
agrees that ICD may continue developing the Test Article. In that event, the following will apply:

 

		10.6.1	Collaborator agrees to transfer to ICD all information necessary to enable ICD to contract for the manufacture of the Test
Article and, unless abandoned for reasons relating to safety as determined by the data safety monitoring board, to provide the
Test Article (and Placebo, if any) in Collaborator’s inventory to ICD.

 

		10.6.2	Further, Collaborator hereby grants to ICD a nonexclusive, irrevocable, world wide, paid-up license to practice, or have practiced
for or on behalf of the Government, any Background Invention that Collaborator may currently have or will obtain on the Test Article,
its manufacture, or on any method of using the Test Article for the indication(s) described in the Research Plan, including the
right to sublicense to third parties.

 

		Article 11.	Disputes

 

		11.1	Settlement. Any dispute arising under this CRADA which is not disposed of by agreement of the CRADA Principal Investigators
will be submitted jointly to the signatories of this CRADA. If the signatories, or their designees, are unable to jointly resolve
the dispute within thirty (30) days after notification thereof, the Assistant Secretary for Health (or his/her designee or successor)
will propose a resolution. Nothing in this Paragraph will prevent any Party from pursuing any additional administrative remedies
that may be available and, after exhaustion of such administrative remedies, pursuing all available judicial remedies.

 

		11.2	Continuation of Work.  Pending the resolution of any dispute or claim pursuant to this Article 11, the Parties agree
that performance of all obligations will be pursued diligently.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		Article 12.	Liability

 

		12.1	NO WARRANTIES. EXCEPT AS SPECIFICALLY STATED IN ARTICLE 9, THE PARTIES MAKE NO EXPRESS OR IMPLIED WARRANTY AS TO ANY
MATTER WHATSOEVER, INCLUDING THE CONDITIONS OF THE RESEARCH OR ANY INVENTION OR MATERIAL, WHETHER TANGIBLE OR INTANGIBLE, MADE
OR DEVELOPED UNDER OR OUTSIDE THE SCOPE OF THIS CRADA, OR THE OWNERSHIP, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF
THE RESEARCH OR ANY INVENTION OR MATERIAL, OR THAT A TECHNOLOGY UTILIZED BY A PARTY IN THE PERFORMANCE OF THE RESEARCH PLAN DOES
NOT INFRINGE ANY THIRD-PARTY PATENT RIGHTS.

 

		12.2	Indemnification and Liability. Collaborator agrees to hold the Government harmless and to indemnify the Government for
all liabilities, demands, damages, expenses and losses arising out of the use by Collaborator for any purpose of the CRADA Data,
CRADA Materials or CRADA Subject Inventions produced in whole or part by ICD employees under this CRADA, unless due to the negligence
or willful misconduct of ICD, its employees, or agents. The Government has no statutory authority to indemnify Collaborator. Each
Party otherwise will be liable for any claims or damages it incurs in connection with this CRADA, except that ICD, as an agency
of the Government, assumes liability only to the extent provided under the Federal Tort Claims Act, 28 U.S.C. Chapter 171 .

 

		12.3	Force Majeure. Neither Party will be liable for any unforeseeable event beyond its reasonable control and not
caused by its own fault or negligence, which causes the Party to be unable to perform its obligations under this CRADA, and which
it has been unable to overcome by the exercise of due diligence. If a force majeure event occurs, the Party unable to perform
will promptly notify the other Party. It will use its best efforts to resume performance as quickly as possible and will suspend
performance only for such period of time as is necessary as a result of the force majeure event.

 

		Article 13.	Miscellaneous

 

		13.1	Governing Law. The construction, validity, performance and effect of this CRADA will be governed by U.S. federal law,
as applied by the federal courts in the District of Columbia. If any provision in this CRADA conflicts with or is inconsistent
with any U.S. federal law or regulation, then the U.S. federal law or regulation will preempt that provision.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		13.2	Compliance with Law. ICD and Collaborator agree that they will comply with, and advise any contractors, grantees, or
agents they have engaged to conduct the CRADA research and development activities to comply with, all applicable Executive Orders,
statutes, and HHS regulations relating to research on human subjects (45 C.F.R. Part 46, 21 C.F.R. Parts 50 and 56) and relating
to the appropriate care and use of laboratory animals (7 U.S.C. §§ 2131 et seq.; 9 C.F.R. Part 1, Subchapter A).
ICD and Collaborator will advise any contractors, grantees, or agents they have engaged to conduct clinical trials for this CRADA
that they must comply with all applicable federal regulations for the protection of Human Subjects, which may include the Standards
for Privacy of Individually Identifiable Health Information set forth in 45 C.F.R. Part 164. Collaborator agrees to ensure that
its employees, contractors, and agents who might have access to a “select agent or toxin” (as that term is defined
in 42 C.F.R. §§ 73.4-73.5) transferred from ICD is properly licensed to receive the “select agent or toxin.”

 

		13.3	Waivers. None of the provisions of this CRADA will be considered waived by any Party unless a waiver is given in writing
to the other Party. The failure of a Party to insist upon strict performance of any of the terms and conditions hereof, or failure
or delay to exercise any rights provided herein or by law, will not be deemed a waiver of any rights of any Party.

 

		13.4	Headings. Titles and headings of the articles and paragraphs of this CRADA are for convenient reference only, do not
form a part of this CRADA, and will in no way affect its interpretation.

 

		13.5	Severability. The illegality or invalidity of any provisions of this CRADA will not impair, affect, or invalidate the
other provisions of this CRADA.

 

		13.6	Amendments. Minor modifications to the Research Plan may be made by the mutual written consent of the CRADA Principal
investigators. Substantial changes to the CRADA, extensions of the term, or any changes to Appendix C will become effective only
upon a written amendment signed by the signatories to this CRADA or by their representatives duly authorized to execute an amendment.
A change will be considered substantial if it directly expands the range of the potential CRADA Subject Inventions, alters the
scope or field of any license option governed by Article 7, or requires a significant increase in the contribution of resources
by either Party.

 

		13.7	Assignment. Neither this CRADA nor any rights or obligations of any Party hereunder shall be assigned or otherwise transferred
by either Party without the prior written consent of the other Party. The Collaborator acknowledges the applicability of 41 U.S.C.
§ 15, the Anti Assignment Act, to this Agreement. The Parties agree that the identity of the Collaborator is material to the
performance of this CRADA and that the duties under this CRADA are nondelegable.

 

		13.8	Notices. All notices pertaining to or required by this CRADA will be in writing, signed by an authorized representative
of the notifying Party, and delivered by first class, registered, or certified mail, or by an express/overnight commercial delivery
service, prepaid and properly addressed to the other Party at the address designated on the Contacts Information Page, or to any
other address designated in writing by the other Party. Notices will be considered timely if received on or before the established
deadline date or sent on or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial
carrier. Notices regarding the exercise of license options will be made pursuant to Paragraph 7.3. Either Party may change its
address by notice given to the other Party in the manner set forth above.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		13.9	Independent Contractors. The relationship of the Parties to this CRADA is that of independent contractors and not agents
of each other or joint venturers or partners. Each Party will maintain sole and exclusive control over its personnel and operations.

 

		13.10	Use of Name; Press Releases. By entering into this CRADA, the Government does not directly or indirectly endorse any
product or service that is or will be provided, whether directly or indirectly related to either this CRADA or to any patent or
other intellectual property license or agreement that implements this CRADA by Collaborator, its successors, assignees, or licensees.
Collaborator will not in any way state or imply that the Government or any of its organizational units or employees endorses any
product or services. Each Party agrees to provide proposed press releases that reference or rely upon the work under this CRADA
to the other Party for review and comment at least five (5) business days before publication. Either Party may disclose the Title
and Abstract of the CRADA to the public without the approval of the other Party.

 

		13.11	Reasonable Consent. Whenever a Party’s consent or permission is required under this CRADA, its consent or permission
will not be unreasonably withheld.

 

		13.12	Export Controls. Collaborator agrees to comply with U.S. export law and regulations. If Collaborator has a need to transfer
any CRADA Materials made in whole or in part by ICD, or ICD Materials, or ICD’s Confidential Information to a person located
in a country other than the United States, to an Affiliate organized under the laws of a country other than the United States,
or to an employee of Collaborator in the United States who is not a citizen or permanent resident of the United States, Collaborator
will acquire any and all necessary export licenses and other appropriate authorizations.

 

		13.13	Entire Agreement. This CRADA constitutes the entire agreement between the Parties concerning the subject matter of this
CRADA and supersedes any prior understanding or written or oral agreement.

 

		13.14	Survivability. The provisions of Paragraphs 3.3, 3.4, 3.8, 4.2, 4.3, 5.3, 5.4, 6.1-9.2, 10.3-10.6, 11.1, 11.2, 12.1-12.3,
13.1-13.3, 13.7, 13.10 and 13.14 will survive the expiration or early termination of this CRADA.

 

SIGNATURES BEGIN ON THE NEXT PAGE

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

SIGNATURE PAGE

 

ACCEPTED AND AGREED

 

BY EXECUTING THIS AGREEMENT, EACH PARTY REPRESENTS THAT ALL
STATEMENTS MADE HEREIN ARE TRUE, COMPLETE, AND ACCURATE TO THE BEST OF ITS KNOWLEDGE. COLLABORATOR ACKNOWLEDGES THAT IT MAY BE
SUBJECT TO CRIMINAL, CIVIL, OR ADMINISTRATIVE PENALTIES FOR KNOWINGLY MAKING A FALSE, FICTITIOUS, OR FRAUDULENT STATEMENT OR CLAIM.

  

	FOR ICD:	 	 
	 	 	 
	/s/ Griffin P. Rodgers	 	6/28/10
	Signature	 	Date

 

	Typed Name:	Griffin P.  Rodgers, M.D.
	Title:	Director

 

	FOR COLLABORATOR:	 	 
	 	 	 
	/s/ Mark Pruzanski	 	7/1/10
	Signature	 	Date

 

	Typed Name:	Mark Pruzanski, M.D.
	Title:	Chief Executive Officer

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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CONTACTS INFORMATION PAGE

 

CRADA Notices

  

	For ICD:	 	For Collaborator:
	Director, Technology Transfer &	 	David Shapiro, M.D.
	Development, NIDDK	 	4370 La Jolla Village Drive, Suite 1050
	12 South Drive (Bldg 12A) Room 3011	 	San Diego, CA 92122
	Bethesda, MD 20892-5632	 	T: (858) 652-6804 (Office)
	T: (301) 451-3636	 	F: (858) 558-5961
	F: (301) 402-7461	 	 

 

Patenting and Licensing

 

	For ICD:	 	For Collaborator (if separate from above):
	Division Director, Division of Technology	 	 
	Development and Transfer	 	 
	NIH Office of Technology Transfer	 	 
	6011 Executive Boulevard, Suite 325	 	 
	Rockville, Maryland 20852-3804	 	 
	Tel: 301-496-7057	 	 
	Fax: 301-402-0220	 	 

  

Delivery of Materials Identified In Appendix
B (if any)

 

	For ICD:	 	For Collaborator:
	Drug Distribution Center to be	 	David Shapiro, M.D.
	Selected	 	4370 La Jolla Village Drive, Suite 1050
	 	 	San Diego, CA 92122
	 	 	T: (858) 652-6804 (Office)
	 	 	F: (858) 558-5961

  

ICD Project Officer for Extramural Investigators

 

	Name:	Patricia Robuck PhD.	 
	Division:	Digestive and Liver Diseases	 
	Address:	6707 Democracy Blvd., Room 653	 
	 	Bethesda, MD 20892-5450	 
	 	Telephone 301-594-8879	 
	 	FAX: (301) 480-8300	 
	 	Email: prl32q@nih.gov	 

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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SUMMARY PAGE

 

EITHER PARTY MAY, WITHOUT FURTHER CONSULTATION
OR PERMISSION,

RELEASE THIS SUMMARY PAGE TO THE PUBLIC.

 

	TITLE OF CRADA:	 	Effects of obeticholic acid (INT-747) versus placebo for the treatment of patients with nonalcoholic steatohepatitis (NASH)
	 	 	 
	PHS [ICD] Component:	 	The National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK)
	 	 	 
	ICD CRADA Principal Investigator:	 	Patricia R.  Robuck, Ph.D., M.P.H.
	 	 	 
	Collaborator:	 	Intercept Pharmaceuticals, Inc.
	 	 	 
	Collaborator CRADA Principal Investigator:	 	David Shapiro, M.D.
	 	 	 
	Term of CRADA:	 	Four (4) years from the Effective Date

  

ABSTRACT OF THE RESEARCH PLAN:

 

The National Institute of Diabetes and Digestive and Kidney
Diseases (NIDDK) will be collaborating with Intercept Pharmaceuticals, Inc. to conduct a multi-center, phase II clinical trial
to evaluate obeticholic acid (INT-747) versus placebo for the treatment of patients with nonalcoholic steatohepatitis (NASH).

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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 APPENDIX A

RESEARCH PLAN

 

TITLE OF CRADA:

Effects of Obeticholic Acid (INT-747) versus Placebo

for the Treatment of Patients with Nonalcoholic Steatohepatitis (NASH)

 

NIH PRINCIPAL INVESTIGATOR:

Patricia R. Robuck, Ph.D., M.P.H.

Senior Advisor for Clinical Trials in Digestive and Liver Diseases

National Institute of Diabetes and Digestive and Kidney Diseases

 

COLLABORATING PRINCIPAL INVESTIGATOR:

David Shapiro, MD

Chief Medical Officer and Executive VP, Development

Intercept Pharmaceuticals

 

TERM OF CRADA: Four (4) years

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		1.	Goals of this CRADA

 

The principal research goal of this CRADA is to evaluate the
histological effects of treatment with the FXR (farnesoid X receptor) ligand INT-747 (6α-ethyl-chenodeoxycholic acid, obeticholic
acid) compared to treatment with placebo in patients with NASH to determine if ITN-747 improves nonalcoholic fatty liver disease
(NAFLD) as determined from hepatic histology.

 

		2.	Background

 

		2.1	Preclinical Rationale for Efficacy of the FXR Agonist
INT-747 in NASH

 

Non-alcoholic fatty liver disease (NAFLD) is considered the
hepatic manifestation of the metabolic syndrome, a cluster of closely related clinical features linked to visceral obesity and
characterized by insulin resistance, dyslipidemia and hypertension. Hepatocellular injury, inflammation and fibrosis are hallmarks
of non-alcoholic steatohepatitis (NASH), which develops in a fraction of subjects with NAFLD via mechanisms still not completely
understood. Several factors have been implicated in the development of NASH, including sensitization by excessive liver triglyceride
accumulation with insulin resistance and subsequent inflammatory and oxidative stress exposure (1). This study will evaluate if
INT-747 (obeticholic acid)- a semisynthetic bile acid and FXR agonist- will improve the histological features of NASH.

 

It has become increasingly recognized in recent years that bile
acids are potent physiological regulators of metabolism (2). Table I summarizes the many metabolic effects of bile acids, both
via Farnesoid X Receptor (FXR), a nuclear receptor, and TGR5, a G-protein coupled receptor expressed on the cell membrane (2).

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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Table 1 | Impact of bile acids on lipid, glucose and energy
homeostasis

 

	Effect	 	Target	 	Pathway	 	Refs
	 	 	 	 	 	 	 
	Bile
    acid metabolism	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Decreased bile-acid synthesis	 	·	Decreased
    CYP7A1, CYP8B1	 	FXR-a–SHP;
    FXR-a–FGF15–FGFR4;
    JNK	 	33,37,38,52,53,146
	 	 	 	 	 	 	 	 
	Increased bile-acid conjugation	 	·	Increased
    BACS, BAT, UGT2B4, SULT2A1	 	FXR-a	 	29,30
	 	 	 	 	 	 	 	 
	Modulation of bile-acid enterohepatic cycling	 	·

        ·
	Decreased
                                                                                       NTCP (liver); ASBT (intestine)

        Increased
        BSEP, MDR2, MRP2 (liver); I-BABP, OSTa,
        OST b
        (intestine)
	 	FXR-a–SHP;
    FXR-a	 	1,30
	 	 	 	 	 	 	 	 
	Cholesterol
    metabolism	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Increased serum LDL cholesterol	 	·	Decreased
    bile-acid synthesis	 	FXR-a	 	156
	 	 	 	 	 	 	 	 
	Decreased serum HDL cholesterol via increased
    HDL clearance	 	·	Increased
    SRB1	 	FXR-a	 	89
	 	 	·

        ·
	Decreased
                                                                                       APOA1

        Increased
        PLTP
	 	FXR-a	 	89
	 	 	 	 	 	 	 	 
	Triglyceride
    metabolism	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Decreased serum TG via decreased VLDL production	 	·	Decreased
    lipogenic genes (ACC1, ACC2, FAS), APOC3

    Increased APOC2, LPL	 	FXR-a–SHP–SREBP1c	 	75
	 	 	 	 	 	 	 	 
	Decreased serum TG via increased VLDL clearance	 	·	Increased
    VLDLR, SDC1	 	FXR-a	 	89
	 	 	 	 	 	 	 	 
	Energy
    homeostasis	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Increased energy expenditure (muscle, brown
    adipose tissue)	 	·	Increased
    mitochondrial activity via D2-mediated local thyroid hormone production and PGC1a
    increase	 	TGR5	 	42
	 	 	 	 	 	 	 	 
	Glucose
    metabolism	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Decreased gluconeogenesis	 	·	Decreased
    PEPCK, G6Pase	 	FXR-a	 	96–98,102,103
	Increased glycogenesis	 	·

        ·
	Decreased
                                                                                       G6Pase

        Increased
        GSK3b
        phosphorylation
	 	FXR-a;
    PI3K– AKT–GSK3b-GS	 	96–98,102,103
	 	 	 	 	 	 	 	 
	Increased incretin release	 	·	Increased
    GLP1 release	 	TGR5	 	45

APO,
apolipoprotein; ACC, acetyl-CoA carboxylase; ASBT, apical sodium dependent bile acid transporter; BACS, bile
acid-CoA synthetase; BAT, bile acid-CoA:amino acid N-acetyltransferase; BSEP, bile salt export pump; CYP7A1,
cholesterol 7a-hydroxylase;
CYP8B1, sterol 12a-hydroxylase;
D2, type 2 iodothyronine deiodinase; FAS, fatty acid synthase; FGF15, fibroblast growth factor 15; FXR-a,
farnesoid X receptor-a;
G6Pase, glucose-6-phosphatase; GLP1, glucagon-like peptide 1; GS, glycogen synthase; GSK3b,
glycogen synthase kinase 3b;
HDL, high-density lipoprotein; HNF, hepatocyte nuclear factor; I-BABP, ileal bile-acid-binding protein; JNK, c-Jun N-terminal
kinase; LPL, lipoprotein lipase; LRH1, liver receptor homologue 1; MDR2, multidrug resistance protein 2; MRP2,
multidrug resistance-associated protein 2; NTCP, sodium taurocholate cotransporting polypeptide; OST, organic solute
transporter; PEPCK, phosphoenol pyruvate carboxykinase; PGC1-a,
peroxisome proliferator-activated receptor-g
co-activator 1a;
PI3K, phosphoinositol-3-kinase; PLTP, phospholipid transfer protein; SDC1, Syndecan-1; SHP, small heterodimer partner
(also known as NR0B2); SRB1, scavenger receptor class B type I; SREBP1c, sterol response element binding protein 1c, TG,
triglycerides; TGR5, also known as G-protein coupled bile acid receptor 1 (GPBAR1); SULT2A1, dehydroepiandrosterone sulphotransferase;
UGT2B4, uridine 5-diphosphate glucuronosyltransferase 2B4; VLDL, very-low-density lipoprotein; VLDLR, VLDL receptor.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 27 of 49

    	 

    

 

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FXR, a member of the nuclear receptor superfamily, is mainly
expressed in liver, intestine, kidney and adipose tissue where it regulates a wide variety of target genes critically involved
in the control of bile acid, lipid and glucose homeostasis (3). FXR agonists have been shown to suppress hepatic fatty acid and
triglyceride synthesis through down-regulation of SREBPlc (4), and increase hepatic fatty acid oxidation through up-regulation
of pyruvate dehydrogenase kinase (PDK4) (5). In addition, FXR agonists show insulin-sensitizing effects (3) and inhibit hepatic
inflammation (6). In mice fed a high-fat diet, treatment with recombinant human fibroblast growth factor 19 (FGF-19), a FXR target
gene markedly unregulated by FXR agonists, improves indices of dyslipidemia, hepatic steatosis, hyperinsulinemia, hyperleptinemia,
and insulin sensitivity, while reducing body weight and adiposity (7). A synthetic FXR agonist protects against NASH in mice fed
a methionine and choline-deficient diet (8). In this model, serum ALT and AST levels were reduced by treatment with the FXR agonist,
accompanied by significantly reduced inflammatory cell infiltration and hepatic fibrosis. The reduction in inflammatory cell infiltration
correlated with decreased serum levels of keratinocyte-derived chemokine and MCP 1, and the reduction of hepatic fibrosis corresponded
to a reduction in hepatic gene expression of fibrosis markers (8). FXR-deficient mice exhibit a hepatic phenotype similar to NASH
patients with significant hepatic triglyceride accumulation, hepatic inflammation and injury, and spontaneous hepatocellular carcinoma
development (9). Thus, several lines of evidence from preclinical studies support the concept that FXR agonists may prove clinically
useful for treating NASH (10).

 

INT-747 (6α-ethyl chenodeoxycholic acid, obeticholic acid)
is a semi-synthetic potent and selective FXR agonist based on a bile acid scaffold, originally described for its anti-cholestatic
and liver-protecting properties (11). INT-747 differs from chenodeoxycholic acid (COCA), the primary human bile acid and natural
FXR ligand in man, by the addition of an 6α-ethyl group (which confers 100x greater FXR agonist properties). More recent
preclinical studies have shown the capacity of INT-747 to increase insulin sensitivity, to modulate lipid metabolism and to exert
anti-inflammatory properties, together with a marked anti-fibrotic effect.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		2.1.1	INT-747 Reduces Hepatic Lipotoxicity and Insulin
Resistance

 

INT-747 induces lipid uptake by mouse adipocyte cell line (3T3-Ll)
(12) and primary human adipocytes (13), which correlate with reduced hepatic and circulating lipid levels, together with increased
insulin sensitivity. Moreover, INT-747 significantly enhances adiponectin and leptin (p<0.05 vs. differentiation mix) secretion
by mouse and human adipocytes (13), which can enhance insulin sensitivity in peripheral tissues. Pancreatic beta cells express
FXR mRNA and protein, and INT-747 significantly enhances insulin secretion by mouse β-TC6 cells (AUC P<0.05 vs. ctrl) and
human pancreatic islets (P<0.01 vs. ctrl). FXR knock down in β-TC6 cells abrogates the INT-747-induced glucose-dependent
insulin mRNA expression and secretion, indicating that these effects are FXR dependent (13). INT-747-induced insulin secretion
by β TC6 cells correlates with enhanced AKT phosphorylation and Glut-2 plasma membrane translocation (13), suggesting that
INT-747 might induce glucose uptake in these cells. INT-747 significantly up-regulates expression of PGC-1α in human hepatocytes
and in mouse beta cells (13), suggesting a potential mechanism of action for its capacity to increase insulin secretion. Collectively,
these results indicate that INT-747 improves glycemia by increasing peripheral glucose uptake, by enhancing glucose-stimulated
insulin secretion, and by inhibiting hepatic lipid synthesis and content while inducing lipid uptake by adipocytes.

 

		2.1.2	INT-747 Effects on Hepatic Inflammation, Fibrosis
& Portal Hypertension

 

In the db/db mouse model of NAFLD, oral treatment for 5 weeks
with INT-747 attenuates the NAFLD molecular profile, as demonstrated by reduced expression of inflammatory (TNF-α, TGF-β)
and fibrotic (TIMP, collagen, SMA) markers in liver tissue (14). In addition, increased monocyte-derived suppressor cells suggest
that FXR activation by INT-747 promote anti inflammatory monocyte infiltration into the liver (14). INT-747 selectively inhibits
the NF-κB mediated hepatic inflammatory response both in vitro and in vivo
while maintaining or even enhancing the cell survival response (6). In addition, INT-747 has been shown to inhibit vascular smooth
muscle cell inflammation by down-regulation of inducible nitric oxide synthase and cyclooxygenase-2 expression (15).

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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Hepatic fibrosis is a key histopathological feature in NASH
patients, and hepatic stellate cell (HSC) activation is critical for hepatic fibrosis. FXR is expressed in HSCs and regulates their
activation. INT-747 protects from liver fibrosis through inhibition of HSC activation in several rodent models (16). In the thioacetamide
model of liver fibrosis in rats, INT-747 prevents fibrosis progression, reverses fibrosis and cirrhosis development, and significantly
decreases portal hypertension (17). In addition, INT-747 reverses portal hypertension in a rat model of cirrhosis induced by bile
duct ligation (18).

 

		2.1.3	INT-747 and Erectile Dysfunction

 

Erectile dysfunction (ED) is often comorbid with obesity, diabetes,
and the metabolic syndrome (MetS) (19). MetS induces ED through several mechanisms, including endothelial dysfunction in penile
vessels. In a high-fat diet model of MetS in rabbits, a 3-month treatment with INT-747 restored endothelium-dependent relaxation
in isolated cavernous tissue, normalizing responsiveness to acetylcholine and to electrical field stimulation, suggesting that
NO production by NANC nerves is increased by INT-747 treatment (Maggi et al., manuscript in preparation). Accordingly, eNOS expression
in the penis is greatly up-regulated by INT-747 treatment. Preliminary experiments in a rat model of chemically induced type 1
diabetes further demonstrate that INT-747 treatment preserves erectile function induced by electrical stimulation of the cavernous
nerve. Evaluating both the prevalence of ED and the effects of INT-747 upon it in male patients with NASH is warranted.

 

Thus, the multiple activities of INT-747, including inhibition
of hepatic lipogenesis, increase in insulin sensitivity, hepatocyte protection against bile acid-induced cytotoxicity, anti inflammatory
effects in liver and vasculature, prevention and reversal of liver fibrosis, make this FXR agonist attractive for development as
a novel therapeutic agent in NASH.

  

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 30 of 49

    	 

    

 

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		2.2	Clinical Overview of INT-747

 

INT-747, 6-ethyl chenodeoxycholic acid or obeticholic acid,
is a modified bile acid and potent FXR nuclear receptor agonist (and a weak agonist for TGR5, the cell membrane bile acid G protein
coupled receptor). Two Phase I and two Phase II studies have been completed. The key data are summarized below.

 

		2.2.1	Phase I Studies

 

The drug was administered to normal volunteers in single (25-500mg)
and multiple (25-250mg) dose studies. Findings are summarized here.

 

		·	Safety: No safety concerns arose with single dose administration. At 250mg, given for 12 days, 4 of 8 subjects reported pruritus
(generally mild); one of these dropped out of the study due to a rash. Elevations in ALT and AST (maximum value 5.2x ULN) occurred
in 6 of the 8 subjects (all resolved without sequelae). No clinically meaningful aminotransferase increases were seen at doses
of 100mg or lower.

		·	As expected, the drug was extensively conjugated (to glycine and taurine conjugates). There was considerable enterohepatic
circulation (lasting several days after the last dose was administered).

 

		2.2.2	Exploratory Study in Type 2 Diabetes and NAFLD-
Euglycemic Clamp

 

An exploratory study in patients with Type 2 diabetes and nonalcoholic
fatty liver disease (NAFLD) (diagnosed by hepatic ultrasound, elevated aminotransferases and/or liver biopsy) received placebo,
25mg or 50mg of INT-747 daily for 6 weeks. A 2-step hyperinsulinemic euglycemic clamp was conducted before and after treatment.

 

Key findings were:

 

		·	Improvements in the steady state glucose infusion rates at both the low and high-dose insulin clamp steps were seen with the
25 mg dose and when both doses were evaluated together, versus placebo (22). This is consistent with improvements in both hepatic
and peripheral (e.g. muscle, adipose tissue) glucose disposal.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

	

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		·	Weight loss was seen in a dose related manner; a fall in ~2% body weight occurred at 50mg after the six weeks of treatment
(p<0.01 versus placebo). FGF-19, a protein secreted from the gut directly under FXR control, with potent metabolic effects (20),
showed a similar dose related increase (which may in part explain the weight loss).

 

		·	ELF (Enhanced, formerly European, Liver Fibrosis) markers showed:

 

		·	~80% of patients had at least mild hepatic fibrosis

 

		·	statistically significant improvements in the composite ELF, and all the individual analyte, scores at the 25mg dose. There
were no meaningful changes at the 50mg dose.

 

		·	Other findings included:

 

		·	Liver enzymes: ~50% decrease in GGTP (both doses) and a significant fall in ALT at 25mg.

 

		·	Lipids: a decrease in triglycerides at the 50mg dose, and an increase in LDL; and decrease in HDL at 50mg. It should be noted
that each of the 4 centers used local laboratories and no lipid fractionation was conducted. Circulating lipids may not reflect
tissue lipid levels.

 

		·	There were no clear, concerning safety signals. Specifically, pruritus and aminotransferase increases were not seen more frequently
with INT-747 therapy. Constipation (generally mild) occurred in 24% of the patients at the 50mg group (which was surprising as
diarrhea was the most common AE seen with COCA therapy).

 

The data suggest that the dose response for insulin sensitivity
(which reached a maximum at 25mg) may differ from that for weight loss (where 50mg showed better results than 25mg). Longer, larger
studies are needed to evaluate if these apparent differences are real.

 

 This study showed that small doses of an oral FXR agonist
can induce meaningful improvements in glucose metabolism.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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		2.2.3	Primary Biliary Cirrhosis (PBC) Studies

 

Two, very similar, Phase II studies in patients with PBC have
been initiated. Alkaline phosphatase (AP), assessed at central laboratories, is the primary endpoint in both studies. Therapy in
each lasts 3 months. A monotherapy study comparing the effects of 10mg and 50mg of INT-747 with placebo is ongoing. The double-blind
phase of the other, a dose response study evaluating 3 doses (10mg, 25mg and 50mg) with placebo in patients with persistent elevations
(>1.5x ULN) in AP levels on a stable dose of ursodeoxycholic acid (UDCA) has been completed. Thirty three (33) centers in 8
countries participated. This data was presented at the recent EASL meeting (21). The data showed:

 

		·	Highly statistically significant falls in AP levels in all doses compared with placebo (p<0.0001). Mean AP falls were ~20-25%
compared to 3% with placebo. Absolute AP falls ranged from ~ 65-75 IU/L versus 5 IU/L for placebo.

		·	Other evaluations of AP response (e.g. response rates) showed similar statistically and clinically meaningful differences from
placebo treatment.

		·	GGTP, ALT, AST and conjugated bilirubin levels were all significantly decreased with INT-747 treatment (mean pretreatment ALT,
AST and bilirubin levels were all within the normal range).

		·	Safety: Pruritus was the only clear clinically meaningful AE that differed between INT-747 treatment and placebo. The incidence
of pruritus was elevated at both the 25mg and 50mg doses in these cholestatic patients (but not at 10mg). However, the severity
of the pruritus and the incidence of discontinuations due to pruritus were both dose related. Overall, 10mg appeared to be acceptably
tolerated (and efficacious).

		·	Lipids: Effects were minimal with only a decrease in HDL seen. Future studies are planned to fractionate the HDL (and other)
components.

		·	Future studies will evaluate the effects of 10mg and lower doses given for longer periods in PBC.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

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In summary, INT-747 appears to be a potent agent whose effects
are consistent with the pre clinical findings of this FXR agonist. The PBC study has clearly shown that the drug has additional
efficacy to that seen with UDCA. The AE profile in the cholestatic PBC patients differed from that seen in the patients with diabetes
and NAFLD. Based on these preclinical and clinical data, a formal study evaluating the effects on histology in patients with NASH
is warranted.

 

		2.3	Background of the Parties

 

The National Institute of Diabetes and Digestive and Kidney
Diseases (NIDDK) is supporting the NASH Clinical Research Network (CRN) to conduct an extramural 12-year study of nonalcoholic
steatohepatitis (NASH) to help define the etiology, contributing factors, natural history, complications, and therapy of nonalcoholic
fatty liver disease in hopes of finding prevention and treatment approaches to this increasing cause of significant liver disease
in the United States. The NASH CRN consists of eight adult clinical centers and a data coordinating center.

 

Intercept Pharmaceuticals, Inc. is privately held biopharmaceutical
company developing novel therapeutics for the treatment of chronic fibrotic and metabolic diseases.

 

		3.	Detailed Description of the Research Plan:

 

		3.1	Type of Study

 

This CRADA will involve an extramural Phase II, multi-center,
double-masked, placebo controlled trial with parallel treatment groups with a 72-week histological change as the primary outcome.
The detailed description of the Research Plan is based on the protocol entitled “The Farnesoid X Receptor Ligand
Obeticholic Acid in Nash Treatment: FLINT Trial”. Dr. Patricia Robuck, The NIDDK Principal Investigator, will file the IND
for this trial with the FDA.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 34 of 49

    	 

    

 

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There will be a planned interim analysis by the trial Data and
Safety Monitoring Board (DSMB) after 15 months of enrollment, but before any end-of-trial liver biopsies are performed. The interim
analysis will be performed at 15 months with 24 week data from an estimated 25-40% of FLINT Trial patients. The interim analysis
will focus on (1) emergent safety issues, if any, and (2) difference in the mean changes of serum alanine aminotransferase (ALT)
by treatment group that are of sufficient magnitude and direction to warrant the continuation of enrollment and treatment of patients
toward the planned sample size and planned follow-up liver biopsies.

 

		3.2	Treatment Groups

 

This protocol will enroll approximately 280 patients 18 years
and older who will be randomly assigned to the following groups of equal size (approximately 140 patients in each group):

 

Group 1: Obeticholic acid (25 mg q.d.)

 

Group 2: Placebo

 

		3.3	Study Duration

 

The study duration is approximately four years (eighteen (18)
months for enrollment). There will be up to 16 weeks screening prior to randomization, including at least 3 months of drug dose
stabilization (or washout) for those using antiNASH medications prior to baseline liver biopsy or prior to randomization.. The
patients will undergo a 72-week treatment period followed by a 24- week post-treatment washout period.

 

		3.4	Recruitment

 

Recruitment of participants will take place at 8 NASH CRN clinical
centers within the U.S.

 

Target recruitment period: September 2010 - June 2012

 

Treatment and follow-up phase: September 2010 - December 2013

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 35 of 49

    	 

    

 

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		3.5	Patient Selection

 

		3.5.1	Inclusion Criteria

 

		1.	Age 18 years or older at initial screening interview

		2.	Histological evidence of NASH on a liver biopsy obtained no more than 3 months prior to randomization and a NAFLD activity
score (NAS) of 4 or greater with a score of at least 1 in each component of the NAS (steatosis scored 0-3, lobular inflammation
scored 0-3, ballooning scored 0-2).

 

3.5.2Exclusion Criteria

		1.	Significant alcohol consumption more than 20 g/day for females and more than 30 g/day for males on average, either currently
or for a period of more than 3 consecutive months in the past year prior to screening

		2.	Inability to reliably quantify alcohol intake

		3.	Clinical or histologic evidence of cirrhosis

		4.	Evidence of other forms of chronic liver disease

		5.	Serum alanine aminotransferase (ALT) greater than 300 U/L

		6.	Serum creatinine of 2.0 mg/dL or greater

		7.	Direct bilirubin greater than l.3 mg/dL

		8.	INR (International Normalized Ratio) greater than 1.3

		9.	Serum albumin less than 3.2 g/dL

		10.	Use of drugs historically associated with NAFLD (amiodarone, methotrexate, systemic glucocorticoids, tetracyclines, tamoxifen,
estrogens at doses greater than those used for hormone replacement, anabolic steroids, valproic acid, other known hepatotoxins)
for more than 2 weeks in the past year prior to randomization

		11.	Use of a non-stable dose of antiNASH drugs (thiazolidinediones, vitamin E, metformin, UDCA, SAM-e, betaine, milk thistle, gemfibrozil,
anti-TNF therapies, probiotics) in the 30 days prior to liver biopsy or the 30 days prior to randomization; treatment with these
drugs may be continued during the study, but the dose should be expected to remain stable

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

	

    	Page 36 of 49

    	 

    

 

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		12.	Use of a non-stable dose of statins (atorvastatin, fluvastatin, lovastatin, pravastatin, rosuvastatin, simvastatin) or fibrates
(clofibrate, fenofibrate) in the 30 days prior to liver biopsy or the 30 days prior to randomization; treatment with these drugs
may be continued during the study, but the dose should be expected to remain stable

		13.	Inability to safely obtain a liver biopsy

		14.	History of bariatric surgery or currently considering or undergoing evaluation for bariatric surgery

		15.	History of biliary diversion

		16.	Known positivity for antibody to Human Immunodeficiency Virus

		17.	Active, serious medical disease with likely life-expectancy less than 5 years

		18.	Active substance abuse, such as alcohol or inhaled or injection drugs, in the year prior to screening

		19.	Women of childbearing potential: positive pregnancy test during screening or at randomization or unwillingness to use an effective
form of birth control during the trial

		20.	Women: breast feeding

		21.	Participation in an IND trial in the 30 days prior to randomization

		22.	Any other condition, which in the opinion of the investigator would impede compliance or hinder completion of the study

		23.	Failure to give informed consent

 

		3.6	Randomization

 

Centrally administered randomization stratified by clinical
center, diabetes status, and blocked by calendar time.

 

		3.7	Visit Schedule

 

Screening period can last no more than 16 weeks after registration.

 

Randomization: final pre-treatment interview, dispensing of
study drug.

 

Follow-up visits: at 4 week and every 12 weeks after randomization
throughout the 72-week treatment phase followed by a 96-week visit after 24 weeks of washout period.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 37 of 49

    	 

    

 

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		3.8	Clinical Outcome Measures (Primary and Secondary)

 

		3.8.1	Primary Outcome Measures

 

Centrally scored histological improvement in NAFLD from baseline
to the end of 72 weeks of treatment, where improvement is defined as:

 

		(1)	No worsening in fibrosis; and

 

		(2)	A decrease in NAFLD Activity Score (NAS) of at least 2 points

 

		3.8.2	Interim Analysis of 24-week data at 15 Months from
1st Patient Randomized

 

Change in serum ALT from baseline to 24 weeks

 

Adverse events and other safety measures through interim
analysis

 

		3.8.3	Secondary Outcome Changes in the Following from
Baseline to 72 Weeks

 

NASH diagnosis (from definite or indeterminate NASH
to not-NASH)

 

Fibrosis score

 

Hepatocellular ballooning score

 

Each component score in the NAS

 

Change in serum aminotransferase and gamma-glutamyl
transpeptidase levels

 

Change in MRI-determined hepatic fat

 

Change in fasting markers of insulin resistance (HOMA,
Adipo-IR)

 

Change in post-glucose parameters of insulin responsiveness
(2 hour glucose and fatty acids)

 

Change in anthropometric measurements (weight, BMI,
waist to hip ratio, waist circumference, body composition)

 

Change in bile acid levels

 

Change in serum FGF-19 levels

 

Change in markers of hepatic apoptosis, inflammation,
and fibrosis

 

Change in HR-QoL scores

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 38 of 49

    	 

    

 

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		3.9	Statistical Analysis

 

All primary analyses will be on an “intention-to-treat”
basis. The primary analysis is an intention-to-treat analysis in which the proportions of subjects in the active-treatment group
(obeticholic acid, 25 mg q.d.) with histological improvement in NAFLD, as defined by the primary outcome measure, is compared with
the proportion of subjects in the placebo group in whom there is improvement. The comparison is made with the use of the Mantel-Haenszel
chi square test, stratified according to clinical site. Subjects who do not undergo an end-of-treatment biopsy are classified as
not having had improvement.

 

		3.9.1	Sample Size Considerations

 

Total of 280 patients in 2 groups of equal size (140 per group)

 

Primary comparison: Obeticholic acid group vs. Placebo group

 

Primary outcome measure: Histological improvement in NAFLD (defined
above)

 

Error protection: Type I= 0.05 and Type II= 0.10 (90% power)

 

Missing data: 10% will not have 72 week biopsies and will be
considered not improved

 

Minimum clinically important difference: 50% higher relative
rate of improvement in the obeticholic acid group vs. the placebo group

Assumed response rates:

		1.	Expected percent with improved NAFLD (defined above) in the placebo group: 39% (based on PIVENS data and 2 to 1 split for patients
on vs. not on vitamin Eat start of trial)

		2.	Expected percent with improved NAFLD in the obeticholic acid group: 58%

 

		3.9.2	Interim Analysis

 

Will be performed at 15 months after 1st patient
randomized, at which time interim efficacy outcomes and safety information will be available on an estimated 25-40% of patients
with at least 24 weeks of follow-up data

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 39 of 49

    	 

    
 

 

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
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The interim target will be considered met if the observed between
treatment groups difference in serum ALT from baseline to 24 week favors the obeticholic acid treatment group and if the upper
95% confidence limit for the 24 week difference is compatible with (i.e., includes) a 20% net reduction, comparing the between
group difference relative to the mean at baseline of both groups combined.

Interim analysis for emergent safety issues will consists of
counts of adverse events (AEs) and serious adverse events (SAEs) by treatment group with associated P-values based on Fisher’s
exact test; the recommendation on safety will be made by DSMB, taking the P-values and all other relevant factors into account.

  

		3.10	Safety Monitoring

 

NIDDK appointed DSMB will monitor the data for safety and efficacy
for outcomes such as hepatotoxicity, pregnancy, and any other outcomes or events identified as safety-related. A member of the
NIDDK DSMB will serve as a liaison to Intercept’s Data Safety Monitoring Committee meetings and participate as necessary
to ensure safety surveillance across all of Intercept’s studies.

 

		4.	Respective Contributions of the Parties

 

		4.1	NIDDK will:

 

The NIDDK will be the central resource for the standardized
assessment of clinical parameters and will be utilized by all participating Clinical Centers. These central resources will function
and be supported under the Data Coordinating Center. The NIDDK and its Extramural Principal Investigator will perform the following
functions.

 

		·	Coordinate, monitor and exercise administrative guidance for the Clinical Centers, Data Coordinating Center, the Steering Committee
Chairman’s Officer, and the Collaborator’s activities;

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

	

    	Page 40 of 49

    	 

    

  

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
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		·	Provide administrative support and oversight for the financial resources awarded to the Clinical Centers and Data Coordinating
Center funded by the U.S. Government;

		·	Assist the Steering Committee and Data and Safety Monitoring Board in carrying out the study

		·	Be a voting member of the Steering Committee and all key study group subcommittees;

		·	Serve as executive secretary of the independent Data and Safety Monitoring Committee; and

		·	Assist in quality control, interim data and safety monitoring, final data analysis and interpretation, preparation of publications,
and coordination and performance monitoring.

 

		4.2	Collaborator will:

 

Collaborator will provide bulk INT-747 (6α-ethyl chenodeoxycholic
acid, obeticholic acid) (Test Agent) and matching placebo to complete the Protocol on a schedule mutually agreed upon by the Parties
(or specified by the NASH Data Coordinating Center) to ensure a sufficient supply of unexpired Test Agent and placebo.

 

The NIDDK will be responsible for the appropriate study labeling
and distribution, through the Data Coordinating Center, of the Test Agent and placebo. A distribution system will be developed
by the NIDDK in collaboration with the NASH Data Coordinating Center to ensure the NASH Clinical Centers have an adequate supply
of these items at all times.

 

		5.	Description of Other Agreements and Intellectual Property
of the Parties

 

		5.1	CRADAs

 

None.

 

		5.2	MTAs

 

None.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 41 of 49

    	 

    

 

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		5.3	CDAs

 

DK-10-0053 executed on November 20, 2009 will be superseded
by this CRADA upon execution of the CRADA.

 

		5.4	Patents

 

		5.4.1	Collaborator Patents/Applications

 

The following is a complete listing of patents relating to INT-747
owned or controlled by Collaborator.

 

	Filing
        Date
	 	Earliest

    Priority	 	Serial
No./

Publication No. 
	 	Subject
    Matter	 	Status	 	Expires*
	02/21/02	 	03/12/01	 	US10/471,549

        US 7,138,390
	 	Composition of Matter for INT-747	 	Issued patent	 	02/21/22
	02/21/02	 	03/12/01	 	PCT/EP02/01832

        WO02/072598
	 	Composition
        of Matter for INT-747

         
	 	National Stage entry 9/21/03

         

        Foreign cases granted:
        Europe, Norway, Spain, Denmark, Germany, Austria, Australia and Japan

         

        Pending: Canada and Israel

         
	 	02/21/22
	02/21/02	 	03/12/01	 	US11/602,307 /

        US2007/0142340

         
	 	Methods for activating FXR using INT-747 for cholestasis or cardiovascular
    disease.	 	Pending. Response to Office
        Action due December 17, 2009. Final deadline is March 17, 2010.

         
	 	02/21/22
	02/21/02	 	03/12/01	 	US12/547,147

         
	 	Methods
        of treating cholestatic liver disease

         
	 	Pending.  Awaiting first Office Action from Patent Office.	 	02/21/02
	02/28/05	 	02/26/04	 	US10/590848

        US2008/0039435

         
	 	Composition
        of Matter for C-7 epimer of INT-747 (6Et-UDCA, FXR agonist)

         
	 	Pending.  Response to Office Action due November 20, 2009.  Final deadline is February
    20, 2010.	 	02/28/25
	02/28/05	 	02/26/04	 	PCT/EP05/002086

        WO05/082925
	 	Composition
        of Matter for C-7 epimer of INT-747 (6Et-UDCA, FXR agonist)

         
	 	National Stage entry 10/26/06

         

        All foreign cases granted:
        Europe, Austria, Belgium,
        Bulgaria, Cyprus,
        Czech Republic, Denmark,
        Estonia, Finland,
        France, Germany,
        Greece, Hungary,
        Iceland, Ireland,
        Italy, Liechtenstein,
        Lithuania, Luxembourg,
        Monaco, Netherlands,
        Poland, Portugal,
        Romania, Slovakia,
        Slovenia, Spain,
        Sweden, Switzerland,
        Turkey and UK
	 	02/28/25
	5/19/06	 	5/19/05	 	11/914,559

        US2008/0214515

         
	 	Process for preparing INT-747	 	Awaiting first Office
        Action from Patent Office.

        Assignment to Erregierre
        S.P.A. recorded at Reel/Frame: 020136/0481; Recorded: 11/20/2007

         
	 	5/19/26
	05/19/06	 	05/19/05	 	PCT/EP06/062446

        WO06/122977

         
	 	Process
        for preparing INT-747

         
	 	National Stage entered
        11/07

         

        Pending Foreign Cases:
        Australia, Canada, China, Europe, Japan

         
	 	05/19/26

*Does not include any patent term extension or patent term
adjustment.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 42 of 49

    	 

    

 

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Note: INT designated compounds are clinical candidates; UPF
designated compounds not yet designated candidates

 

	Filing
Date 
	 	Earliest

    Priority	 	Serial
        No./

        Publication
        No.
	 	Subject
    Matter	 	Status	 	Expires*
	03/14/05	 	03/12/04	 	US11/081,002

        US2006/0069070
	 	Method of inhibiting fibrosis using  INT-747 and other FXR agonists	 	Awaiting response from
        Patent Office to Response filed 8/3/09.

         
	 	03/14/25
	03/14/05	 	03/12/04	 	PCT/US05/008575

        WO05/089316
	 	Method of inhibiting fibrosis using INT-747 and other FXR agonists	 	National Stage entry 09/12/06

         

        Pending Foreign cases:
        Australia, Canada, Europe, and Japan
	 	03/14/25
	10/13/05	 	10/14/04	 	US11/250,298

        US2006/0252670
	 	Method of reducing adverse side effects (weight gain and edema) induced by a PPARg
    agonist by administering an FXR agonist and reducing the amount of PPARg agonist	 	Awaiting response from Patent Office to Response filed 8/10/09.	 	10/13/25
	10/14/05	 	10/14/04	 	PCT/US05/036536

        WO06/044391
	 	Method of reducing adverse side effects (weight gain and edema) induced by a PPARg
    agonist by administering a FXR agonist and reducing the amount of PPARg agonist	 	National Stage entry 4/14/07

         

        Pending Foreign cases:
        Australia, Canada, Europe, and Japan
	 	10/14/25
	11/19/08	 	11/19/08	 	EP08169459	 	Composition of Matter for UPF-930 (FXR agonist)	 	Priority application; foreign filing deadline 11/19/09	 	 
	02/14/07	 	02/14/06	 	US12/435,063

         
	 	Composition of Matter for UPF-838
    (FXR agonist)	 	Response to Missing Parts
        Final Deadline 12/19/09

         

         
	 	02/14/27
	02/14/07	 	02/14/06	 	PCT/US07/003678

        WO07/095174

         
	 	Composition of Matter for UPF-838
    (FXR agonist)	 	National Stage entry 10/14/08

         

        Pending Foreign cases:
        Australia, Brazil, Canada, China, Europe, India, Japan

         
	 	02/14/27
	06/27/07	 	06/27/06	 	US11/819,517

        US2008/0182832
	 	Composition of Matter
        for INT-767 (dual FXR/ TGR5 agonist)

         
	 	Awaiting Office Action from Patent Office	 	06/27/27
	06/27/07	 	06/27/06	 	PCT/07/014829

        WO08/002573

         
	 	Composition of Matter for INT-767 (dual FXR/ TGR5 agonist)	 	National Stage entry 12/27/08

         

        Pending Foreign cases:
        Australia, Canada, China, Europe, India, Israel, Japan, Hong Kong

         
	 	06/27/27

*Does not include any patent term extension or patent term
adjustment

 

			

 

	5.4.2	NIDDK Patents/Applications

 

None.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 43 of 49

    	 

    

 

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FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

		6.	Related Publications

 

		1.	Farrell, G.C., and C.Z. Larter. 2006. Nonalcoholic
fatty liver disease: from steatosis to cirrhosis. Hepatology 43: S99-S112.

 

		2.	Thomas, C., R. Pellicciari, M. Pruzanski, J. Auwerx,
and K. Schoonjans. 2008. Targeting bile-acid signalling for metabolic diseases. Nat Rev Drug Discov 7: 678-693.

 

		3.	Lefebvre, P., B. Cariou, F. Lien, F. Kuipers, and
B. Staels. 2009. Role of bile acids and bile acid receptors in metabolic regulation. Physiol Rev 89: 147-191.

 

		4.	Watanabe, M., S.M. Houten, L. Wang, A. Moschetta,
D.J. Mangelsdorf, R.A. Heyman, D.D. Moore, and J. Auwerx. 2004. Bile acids lower triglyceride levels via a pathway involving FXR,
SHP, and SREBP-lc. J Clin Invest 113: 1408-1418.

 

		5.	Savkur, R.S., K.S. Bramlett, L.F. Michael, and T.P.
Burris. 2005. Regulation of pyruvate dehydrogenase kinase expression by the farnesoid X receptor. Biochem Biophys Res Commun
329: 391-396.

 

		6.	Wang, Y.D., W.D. Chen, M. Wang, D. Yu, B.M. Forman,
and W. Huang. 2008. Famesoid X receptor antagonizes nuclear factor kappaB in hepatic inflammatory response. Hepatology
48: 1632-1643.

 

		7.	Fu, L., L.M. John, S.H. Adams, X.X. Yu, E. Tomlinson,
M. Renz, P.M. Williams, R. Soriano, R. Corpuz, B. Moffat, R. Vandlen, L. Simmons, J. Foster, J.P. Stephan, S.P. Tsai, and T.A.
Stewart. 2004. Fibroblast growth factor 19 increases metabolic rate and reverses dietary and leptin-deficient diabetes. Endocrinology
145: 2594-2603.

 

		8.	Zhang, S., J. Wang, Q. Liu, and D.C. Hamish. 2009.
Farnesoid X receptor agonist WAY-362450 attenuates liver inflammation and fibrosis in murine model of non alcoholic steatohepatitis.
J Hepatol 51: 380-388.

 

		9.	Zhang, Y., and P.A. Edwards. 2008. FXR signaling in
metabolic disease. FEBS Lett 582:10-18.

 

		10.	Cariou, B. 2008. The famesoid X receptor (FXR) as
a new target in non-alcoholic steatohepatitis. Diabetes Metab 34: 685-691.

 

		11.	Pellicciari, R., S. Fiorucci, E. Camaioni, C. Clerici,
G. Costantino, P.R. Maloney, A. Morelli, D.J. Parks, and T.M. Willson. 2002. 6alpha-ethyl-chenodeoxycholic acid (6- ECDCA), a
potent and selective FXR agonist endowed with anticholestatic activity. J Med Chem 45: 3569-3572.

 

		12.	Rizzo, G., M. Disante, A. Mencarelli, B. Renga, A.
Gioiello, R. Pellicciari, and S. Fiorucci. 2006. The farnesoid X receptor promotes adipocyte differentiation and regulates adipose
cell function in vivo. Mol Pharmacol 70: 1164-1173.

 

		13.	Rizzo, G.,D. Passeri, F. De Franco, G. Ciaccioli,
L. Donadio, S. Modica, A. Moschetta, R. Pellicciari, M. Pruzanski, and L. Adorini. 2009. INT-747: a Potent and Selective FXR Agonist
Regulating Glucose Metabolism and Enhancing Insulin Secretion Hepatology, abstract.

  

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 44 of 49

    	 

    

 

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

  

		14.	McMahan, R., T. Krisko, T. Jiang, X. Wang, R. Nash,
M. Pruzanski, L. Adorini, L. Golden-Mason, M. Levi, and H.R. Rosen. 2009. FXR and TGR5 activation improves nonalcoholic fatty
liver disease (NAFLD) and increases intrahepatic myeloid suppressor cells. Hepatology, abstract.

 

		15.	Li, Y.T., K.E. Swales, G.J. Thomas, T.D. Warner, and
D. Bishop-Bailey. 2007. Famesoid x receptor ligands inhibit vascular smooth muscle cell inflammation and migration. Arterioscler
Thromb Vase Biol 27: 2606-2611.

 

		16.	Fiorucci, S., E. Antonelli, G. Rizzo, B. Renga, A.
Mencarelli, L. Riccardi, S. Orlandi, R. Pellicciari, and A. Morelli. 2004. The nuclear receptor SHP mediates inhibition of hepatic
stellate cells by FXR and protects against liver fibrosis. Gastroenterology 127: 1497-1512.

 

		17.	Albanis, E., C.E. Alvarez, M. Pruzanski, S.L. Friedman,
and S. Fiorucci. 2005. A Novel FXR Activator, Reverses Hepatic Fibrosis and Cirrhosis in Thioacetamide Induced Liver Injury in
Rats. Hepatology 42 (S1): Abstract 1040.

 

		18.	Balasubramaniyan, V., V. Sharma, A. Winstanley, N.
Davies, N. Shah, R. Jalan, and R.P. Mookerjee. 2009. Modulation of the DDAH-ADMA pathway with the farnesoid X receptor (FXR) agonist
INT-747 restores hepatic eNOS activity and lowers portal pressure in cirrhotic rats Hepatology, Abstract.

 

		19.	Chitaley, K., V. Kupelian, L. Subak, and H. Wessells.
2009. Diabetes, Obesity and Erectile Dysfunction: Field Overview and Research Priorities. J Urol. e-pub.

 

		20.	Strack, A.M, Myers, R.W. 2004. Modulation of Metabolic
Syndrome by Fibroblast Growth Factor 19 (FGF-19). Endocrinology 145: 2591-2593.

 

		21.	Mason, A., V. Luketic, K. Lindor, et al. 2010. Farnesoid-X
Receptor Agonists: a New Class of Drugs for the Treatment of PBC? An International Study Evaluating the Addition of INT-747 to
Ursodeoxycholic Acid. J. Hepatology 52: Sl (Abstract 2).

 

		22.	Sanyal, A.J., S. Mudaliar, R. Henry, et al. 2009.
A New Therapy for Nonalcoholic Fatty Liver Disease and Diabetes? INT-747 - the First FXR Hepatic Therapeutic Study. Hepatology
50 S4: 389A-390A (Abstract 183).

  

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 45 of 49

    	 

    

  

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

APPENDIX B 

 

STAFFING, FUNDING AND MATERIALS/EQUIPMENT
CONTRIBUTIONS

OF THE PARTIES

 

Staffing Contributions:

 

ICD will provide scientific staff and other support necessary
to conduct the research and other activities described in the Research Plan. ICD’s scientific staff will include ICD’s
CRADA Principal Investigator and technical staff.

 

ICD estimates that [***] of effort per [***] will be required
to complete the CRADA research.

 

Collaborator will provide scientific staff and other support
necessary to conduct the research and other activities described in the Research Plan. Collaborator’s scientific staff will
include Collaborator’s Principal Investigator or technical staff.

 

Collaborator estimates that [***] of effort per [***] will be
required to complete the CRADA research.

 

Funding Contributions:

 

Collaborator agrees to provide support in the form of Collaborator
Materials (described below and having an estimated value of $[***] ([***] Dollars) and funds, of up to the amount of $3,000,000
(Three Million Dollars) for ICD to use to acquire technical, statistical, and administrative support for the research activities,
as well as for use to pay for supplies and travel expenses. Collaborator will provide funds in the following installments.

 

		1.	The first installment of $500,000 (Five Hundred Thousand
Dollars) will be due within thirty (30) days of the Effective Date.

 

		2.	An installment of $250,000 (Two-Hundred and Fifty
Thousand dollars) will be due within sixty (60) days of completing enrollment of 25% (i.e., approximately 70) of the planned patients.

 

		3.	An installment of $1,000,000.00 (One Million Dollars)
will be due within sixty (60) days of, the interim efficacy and safety analyses conducted as described in the protocol to occur
at approximately 15 months from first patient randomized.

 

		4.	An additional installment of $1,250,000 will be due
within sixty (60) days of completing enrollment of 100% (i.e., 280) of the planned patients, provided that, based on results of
the interim efficacy and safety analyses, the decision is made to complete the study. In the event the decision is made not to
proceed, no part of this additional installment will be paid.

 

Collaborator agrees that ICD can allocate the funding between
the various categories in support of the CRADA research as ICD’s CRADA PI sees fit.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 46 of 49

    	 

    

 

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT
AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

  

CRADA PAYMENTS:

 

Collaborator will make checks payable to the National Institute
of Diabetes and Digestive and Kidney diseases, will reference the CRADA number and title on each check, and will send them via
trackable mail or courier to:

 

Connie Jenkins

Budget Office

National Institute of Diabetes & Digestive & Kidney Diseases, NIH

9000 Rockville Pike, Bldg 31, Rm 9A34

Bethesda, MD 20892

 

CRADA Travel Payments:

 

Travel arrangements for all Government staff will be made in
accordance with the Federal Travel Rules and Regulations, whether arranged by ICD and funded using either appropriated funds or
CRADA funds. Travel payments will not be funded directly by Collaborator.

 

Materials/Equipment Contributions:

 

ICD will provide the following ICD Materials for use under this
CRADA: None.

 

Collaborator will provide the following Collaborator Materials
and/or capital equipment for use under this CRADA:

 

		1.	Collaborator Materials: INT-747 (6α-ethyl chenodeoxycholic
acid, obeticholic acid) and matching placebo.

 

		2.	Capital Equipment: None

  

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 47 of 49

    	 

    

 

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

APPENDIX C

 

MODIFICATIONS TO THE MODEL EXTRAMURAL-PHS
CLINICAL CRADA

Insertions are indicated by underline and deletions are indicated by strike through.

 

Modify Article 2 as follows:

 

"CRADA Data" means information developed
by or on behalf of the Parties in the performance of the Research Plan, excluding Raw Data and Identifiable Private Information.

 

"Raw Data" means the primary quantitative
and empirical data first collected from experiments and clinical trials conducted within the scope of this CRADA. Raw Data shall
be considered to be the proprietary confidential information of the producing entity.

 

Modify Article 3 as follows:

 

		3.1	Performance of Research and Development. The
research and development activities to be carried out under this CRADA will be performed by the Parties identified on the Cover
Page, as well as ICD's contractors or grantees as described in the Research Plan. However, LCD's contractors or grantees are not
Parties to the CRADA, and this CRADA does not grant to Collaborator any rights to Inventions made by ICD's contractors or grantees.
The CRADA PIs will be responsible for coordinating the scientific and technical conduct of this project on behalf of their employers.
Any Collaborator employees who will work at ICD facilities will be required to sign a Guest Researcher or Special Volunteer Agreement
appropriately modified in view of the terms of this CRADA.

 

Neither ICD, nor its contractors
or grantees who have access to Collaborator Materials or any Test Article from ICD under this CRADA shall use any such Collaborator
Materials or Test Article in any manner that does not comply with the CRADA, the Research Plan and the Protocol. 

 

Modify Article 8 as follows:

 

		8.7	Publication. The Parties are encouraged to
make publicly available the results of their research and development activities. Before either Party submits a paper or abstract
for publication or otherwise intends to publicly disclose information about a CRADA Subject Invention, CRADA Data, or CRADA Materials,
the other Party will have thirty (30) days to review proposed manuscripts and three (3) five (5) days
to review proposed abstracts to assure that Confidential Information is protected. Either Party may request in writing that the
proposed publication or other disclosure be delayed for up to thirty (30) sixty (60) additional days as
necessary to file a Patent Application.

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

	

    	Page 48 of 49

    	 

    

 

PUBLIC HEALTH SERVICE

COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT

FOR EXTRAMURAL-PHS CLINICAL RESEARCH

 

Modify Article 13 as follows:

 

13.13 Entire Agreement. This CRADA constitutes the entire
agreement between the Parties concerning the subject matter of this CRADA and supersedes any prior understanding or written or
oral agreement. In particular, the Confidential Disclosure Agreement (CDA) between NIDDK and Intercept Pharmaceuticals, executed
on November 20, 2009 (NIDDK No. 10-0053), is superseded by this CRADA upon execution of the CRADA. 

 

	PHS ECT-CRADA	Case Ref.  No.  DK-10-0109	MODEL ADOPTED June 18, 2009
	 
	Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 406 of the Securities Act of 1933, as amended.

    	Page 49 of 49Exhibit 10.13

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SPONSORED RESEARCH AGREEMENT

 

This Sponsored Research Agreement (“Agreement”),
effective as of January 1, 2012 (“Effective Date”), is made and entered into by and between:

  

		1.	Intercept Pharmaceuticals, Inc., 18 Desbrosses Street, New York, NY 10013, (“Sponsor”);

 

		2.	Dipartimento di Chimica e Tecnologia
                                                                del Farmaco of the Università di Perugia, Via del Liceo,
                                                                1, Perugia, Italy 06123 (“University”); and

 

		3.	Professor Roberto Pellicciari of the Dipartimento di Chimica e Tecnologia del Farmaco at the University,
Via del Liceo, 1, Perugia, Italy 06123 (“Principal Investigator”)

 

This Agreement supercedes the Sponsored
Research Agreement entered into by the parties on July 1, 2006; the First Amendment to the Agreement effective as of June 20, 2007
and the Sponsored Research Agreement effective January 1, 2011 (collectively the “Prior Agreement”). This Agreement
therefore constitutes the entire agreement between the parties hereto.

 

WHEREAS, Sponsor desires to sponsor a research
program at University led by Principal Investigator;

 

WHEREAS, Sponsor desires to obtain certain
rights to inventions and technologies arising out of or in connection with such program; and

 

WHEREAS, University and Principal Investigator
are willing to (a) undertake the program and (b) grant to Sponsor such rights under terms and conditions set forth herein.

 

WHEREAS, concurrently with the execution
of this Agreement, Sponsor and Principal Investigator are entering into a Consulting and IP Agreement (the “Consulting
Agreement”).

 

NOW THEREFORE, in consideration of the
promises and undertakings set forth above and hereinafter, the parties hereto mutually agree as follows:

 

Article
1          Definitions

 

1.1           “Affiliate”
means any corporation, company, partnership, joint venture and/or firm which controls, is controlled by or is under common control
with Sponsor. As used herein, “control” shall mean direct or indirect ownership of at least fifty percent (50%) of the
stock or shares having the right to vote for the election of directors.

 

1.2           “Material”
means OCA (INT-747), INT-767 and INT-777, together with their conjugates and intermediates developed by or for the Sponsor.

 

    	 

    	 

    

 

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1.3           “Project
Participant” means any agent or employee of Principal Investigator or University who may participate in the Research
Project, including, but not limited to, scientists, post-doctoral fellows, students, and technicians, in accordance with Section
2.2.

 

1.4           “Research
Parties” shall refer to University and Principal Investigator collectively or individually as the context requires.

 

1.5           “Research
Project” shall mean the research project described in Section 2 herein.

 

1.6           “Research
Project Patent Rights” shall mean any and all patent applications and patents owned or otherwise controlled, in whole
or in part, by Research Parties worldwide, covering any invention conceived and/or reduced to practice by Principal Investigator
and/or Project Participants in the conduct of the Research Project and/or during any period prior to the Effective Date if within
the field of interest defined under the Research Project, together with any and all foreign counterparts, continuations, continuations-in-part
and divisions of such patent applications and any and all extensions, reissues, reexaminations, renewals and substitutions of such
patents.

 

1.7           “Research
Project Technology” shall mean any and all data, information, technical reports, inventions (whether or not patentable),
improvements, chemical materials, substances, reagents or similar tangible materials, and discoveries, not covered by Research
Project Patent Rights, developed and/or generated by Principal Investigator and/or Project Participants in the conduct of the Research
Project and/or during any period prior to the Effective Date if within the scope of the Research Project. Research Project Technology
shall include, but not be limited to, the Materials.

 

Article 2          Research
Project

 

2.1           General.
The goal of the Research Project is to research, realize improvements to the process for synthesizing, and supplying gram scale
reference standard quantities of those chemical entities known as OCA (INT-747), INT-767 and INT-777, as well as any conjugated,
intermediate or other related forms thereof which are made, conceived, reduced to practice, created, written, designed or developed
by the Parties.

 

2.2           Participants.
The Research Project shall be conducted solely by Principal Investigator and Project Participants working under his supervision
at the University. No Project Participant may work on the Research Project unless such Project Participant first signs the Project
Participant Agreement attached as Exhibit A. Principal Investigator shall promptly provide each executed Project Participant Agreement
to Sponsor.

 

2.3           Records.
Principal Investigator and Project Participants shall keep accurate scientific records relating to the Research Project and shall
make such records available to Sponsor during normal business hours upon reasonable notice. It is understood that such records
shall include detailed laboratory notebooks sufficient to document any patentable inventions conceived or reduced to practice during
the course of the Research Project. Upon request by Sponsor and at Sponsor’s expense, Principal Investigator shall promptly provide
copies of all such records to Sponsor.

 

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2.4           Funding.
As consideration for conducting the Research Project, Sponsor agrees to fund the activities of Principal Investigator and Project
Participants under the Research Project, for which Sponsor shall pay to University a total of €80,000 during the term of
this Agreement, payable as follows: €20,000 on March 31, 2012; €20,000 on June 30, 2012; €20,000 on September 30,
2012 and €20,000 on December 31, 2012. All such payments shall be made in Euros, the lawful currency of the European Community
within fifteen (15) business days of such payment due date.

 

2.5           Reports.
Principal Investigator shall submit to Sponsor (a) detailed reports documenting the status of the Research Project and progress
made against the Project Plan from time to time as reasonably requested by Sponsor over the term of this Agreement and (b) a final
report within ninety (90) days after termination or expiration of the Research Project.

 

Article 3          Material
Transfer

 

3.1           Transfer.
From time to time, Principal Investigator will use reasonable efforts to deliver to Sponsor or a Sponsor-named third party such
quantity of Material (or portion thereof) as agreed upon by the parties.

 

3.2           Use
of Material. Principal Investigator and Project Participants under Principal Investigator’s direction hereby agree to use the
Material solely in the conduct of the Research Project and for no other purpose. Research Parties shall not, and shall ensure that
Project Participants do not use any Material or Information for their own or others’ benefit or for any purpose not exclusively
related to the Research Project, including without limitation for any direct or indirect commercial purpose or to treat human subjects,
and shall not disclose, distribute, sell or otherwise transfer the Material to any other commercial or non-commercial third party
without Sponsor’s prior written consent.

 

Article 4          Intellectual Property Rights

 

4.1           Invention
Disclosure. Principal Investigator shall promptly and fully disclose to Sponsor in writing any invention conceived and/or reduced
to practice, whether by Principal Investigator or any Project Participant, in the conduct of the Research Project.

 

4.2           Intellectual
Property Ownership. For valuable consideration received, the Research Parties hereby assign to Sponsor all rights title and
interest in and to all Research Project Patent Rights and Research Project Technology upon creation, each such assignment to be
effective as of the date of creation. Research Parties shall cooperate with Sponsor in providing assistance and executing any documentation
necessary to perfect such assignment. Research Parties agree and acknowledge that Sponsor shall have all rights and final decisions
as to the filing, prosecution or maintenance of all patents or patent applications covering any Research Project Patent Rights
and/or Research Project Technology. Each of the Research Parties will cooperate with Sponsor in any such filing, prosecution or
maintenance. Research Parties further agree that, if Sponsor is unable, after reasonable effort, to secure the signature of Principal
Investigator and/or relevant representative of either Research Party on any such documentation, any executive officer of Sponsor
shall be entitled to execute any such documentation as the agent and the attorney-in-fact of Research Parties, and Research Parties
hereby irrevocably designates and appoints each executive officer of Sponsor as their agent and attorney-in-fact to execute any
such documentation on their behalf.

 

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4.3
          Right of First Refusal. Research Parties shall give the
Sponsor a right of first refusal to negotiate terms to expand the Agreement prior to the end of its term, or upon renewing
it, to incorporate other bile acid and nuclear receptor research based on the discovery and reduction to practice of ligands
that fall outside the scope of the Research Project. Research Parties shall notify Sponsor in writing of any such
opportunity regarding such inventions and Sponsor shall have fifteen (15) days to respond in good faith as to Sponsor’s
intent to expand the Agreement.

 

Article 5          Confidentiality

 

5.1           Confidential
Information. “Confidential Information” shall include all confidential or proprietary information disclosed
by the Sponsor to the Research Parties and all data, results and inventions arising in the course of the Research Project. With
the sole purpose to protect the potential patentability of any invention described therein, Research Parties shall not publish
or disclose any Confidential Information to any third party without prior consultation with Sponsor. This confidentiality obligation
does not apply to information which (i) is available to Research Parties from an independent source not under obligation of confidence
to Sponsor; (ii) is already published at the time of disclosure by Sponsor or creation in the course of the Research Project; (iii)
is/was known to Research Parties independent of Sponsor’s disclosure, either under this Agreement or otherwise, and independent
of the Research Parties’ involvement in, or activities in the course of, the Research Project.

 

5.2           Publishing
and Use. Research Parties may publish or otherwise publicly disclose information gained in the course of the Research Project
and shall give Sponsor the option of receiving a sponsorship acknowledgment in any such publication. In order to avoid disclosure
of Confidential Information and any potential loss of Research Project Patent Rights as a result of premature public disclosure
of patentable information, the Principal Investigator will submit any prepublication materials to Sponsor for review and comment
at least sixty (60) days prior to their planned submission for publication. If such proposed publication contains any disclosures
deemed by Sponsor to be Confidential Information, the Research Parties shall remove such information from the proposed publication
at Sponsor’s request. If such proposed publication contains information considered by Sponsor, in its sole discretion, to
be patentable, the Research Parties agree to withhold publication for a reasonable time, in any event no less than an additional
one hundred twenty (120) days, so that a patent application can be prepared and filed.

 

Article 6          Term and Termination

 

6.1          
Term. The term of this Agreement shall commence on the Effective Date and continue in full force and effect through December
31, 2012, unless terminated prior to such date in accordance with this Section 6. The parties will commence discussions no later
than sixty (60) days prior to the end of the term to determine whether they have a mutual interest in renewing this Agreement.

 

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6.2           Termination
for Breach. If either Research Party, on the one hand, or Sponsor, on the other hand, materially breach(es) any provision of
this Agreement and fail(s) to remedy such breach within thirty (30) days after receipt of notice in writing of such breach from
the other party(ies), such other party(ies), at its/their option, and in addition to any other remedies that may be available to
such other party(ies), may terminate this Agreement by sending written notice of termination to the breaching party(ies).

 

6.3           Sponsor
Termination for Specific Cause. If Principal Investigator is unable or unwilling to continue to conduct research or otherwise
perform his obligations under this Agreement in connection with the Research Project, if Principal Investigator’s employment
with University is terminated, or if Principal Investigator fails to use reasonably diligent efforts to conduct the Research Project,
Sponsor may terminate this Agreement upon thirty (30) days prior written notice to Principal Investigator and/or appropriate University
representative and shall be under no further obligation to make monetary payments to Research Parties as set forth in Section
2.4 of this Agreement.

 

6.4           Effect
of Sponsor Termination and Expiration. In the event of Sponsor termination for a breach by Research Parties under Section 6.2
or Section 6.3, any funds paid to Research Parties by Sponsor under this Agreement which have not been expended or irrevocably
committed upon the effective date of termination shall be refunded to Sponsor within thirty (30) days after the effective date
of termination. Principal Investigator shall furthermore deliver all remaining Material and all tangible documentation containing
Confidential Information within thirty (30) days of Sponsor’s request.

 

6.5           Research
Parties Termination for Specific Cause. If Sponsor fails to make any payment as set forth under Section 2.4 of this Agreement,
then subject to Section 6.2 above, if Sponsor does not remedy such breach within thirty (30) days after receipt of notice in writing
of such breach, then Research Parties may terminate this Agreement upon written notice to Sponsor.

 

6.6           Effect
of Research Parties Termination. In the event of Research Parties termination for a breach by Sponsor during any Quarterly
Period under Section 6.2 or Section 6.5, all rights, title and interest in and to the Research Project Patent Rights and Research
Project Technology created and assigned to Sponsor during said Quarterly Period in accordance with Section 4.2 above shall revert
to Research Parties. In such event, Sponsor shall undertake to immediately execute any and all documentation and to take any and
all required action necessary to effect such reversion. Sponsor’s rights, and the Research Parties’ obligations to Sponsor, with
respect to Research Project Patent Rights and Research Project Technology created prior to such Semiannual Period shall not be
affected by such termination.

 

6.7           Survival.
The following sections of this Agreement shall survive expiration or any termination of this Agreement: Sections 2.3, 2.5, 3.2,
4, 5, 6.4, 6.6, 6.7, 7 and 8. Notwithstanding the preceding, in the event of Research Parties termination for a breach by Sponsor
under Section 6.2 or pursuant to Section 6.5 herein, then Sections 2.3, 3.2 and 4 shall not survive.

 

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Article 7          Representations and Warranties

 

7.1           Representations
and Warranties of Research Parties. Research Parties represent and warrant that: (a) neither of the Research Parties have
granted or will grant to any person or entity other than Sponsor any right or interest in and to the Materials, the Research Project
Patent Rights or the Research Project Technology; (b) Research Parties have the legal right, authority and power to enter into
this Agreement and perform the obligations set forth herein; (c) Research Parties will comply with all applicable laws in the
performance of the Research Project; and (d) Research Parties will conduct the Research Project in a professional and workmanlike
manner.

 

7.2           Representations
and Warranties of University. University represents and warrants that: (a) Principal Investigator has not granted to University,
and University has not accepted from Principal Investigator, any right, title and interest in and to the Materials, the Research
Project Patent Rights or the Research Project Technology; (b) Principal Investigator’s participation in the Research Project and
execution hereof, including the assignment of Research Project Technology and Research Project Patent Rights to Sponsor set forth
in Section 4, shall not conflict with any obligations of Principal Investigator to University; (c) each Project Participant’s participation
in the Research Project and assignment of Research Project Technology and Research Project Patent Rights to Principal Investigator,
and the subsequent assignment to Sponsor, shall not conflict with any obligations of any Project Participant to University.

 

7.3           Representations
of Sponsor. Sponsor represents and warrants that Sponsor has the legal right, authority and power to enter into this Agreement
and meet the obligations set forth herein.

 

7.4           Limitations.
EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 7, NO PARTY TO THIS AGREEMENT MAKES ANY WARRANTY, EXPRESS OR IMPLIED, EITHER IN FACT
OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, RELATING TO THE RESEARCH PROJECT OR OTHERWISE UNDER THIS AGREEMENT, AND EACH
PARTY TO THIS AGREEMENT SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY, TITLE, NON-INFRINGEMENT OR WARRANTY OF
FITNESS FOR A PARTICULAR PURPOSE. Some jurisdictions do not allow limitations on implied warranties, so the above limitations
may not apply to a party in such jurisdictions.

 

Article 8          General Provisions

 

8.1           Independent
Contractors. The relationship of Sponsor, on the one hand, and Research Parties, on the other hand, established by this Agreement
is that of independent contractors, and nothing contained in this Agreement shall be construed to give either party hereto the
power to direct or control the day-to-day activities of the other party hereto, or constitute the parties as partners, joint ventures,
co-owners or otherwise as participants in a joint or common undertaking.

 

8.2           Parties
Bound. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective successors, assigns,
legal representatives and heirs. Sponsor may assign or transfer Sponsor’s rights and obligations under this Agreement to an Affiliate
or a successor to all or substantially all of Sponsor’s assets or business relating to this Agreement, whether by sale, merger,
operation of law or otherwise, upon written notice to Research Parties. This Agreement shall not otherwise be assignable by any
party without the prior written consent of the other parties and any such assignment which does not receive such prior consent
shall be void.

 

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8.3           Entire
Agreement. This Agreement and the Consulting Agreement between Sponsor and Principal Investigator of even date herewith constitute
the entire and only agreements between the parties relating to the subject matter hereof, and all prior negotiations, representations,
agreements and understandings are superseded hereby and thereby, provided that Research Parties agree and acknowledge that
Sponsor may enter into consulting-type arrangements with certain individuals at the University relating to the Research Project.

 

8.4           Notices.
Any notice or other communication required or permitted under this Agreement shall be in English and in writing and will be deemed
given as of the date such notice is (a) hand delivered, or (b) mailed, postage prepaid, first class, certified mail, return receipt
requested, or (c) sent, shipping prepaid, receipt requested by national courier service, to the party at the address listed below
or at such other addresses as may be given from time to time in accordance with the terms of this notice provision.

 

Notices to Sponsor shall be addressed to:

 

Dr. Mark Pruzanski

Intercept Pharmaceuticals, Inc.

18 Desbrosses Street

New York, NY 10013

USA

 

Notices to Principal Investigator shall be addressed
to:

 

Prof. Roberto Pellicciari

Dipartimento di Chimica e Tecnologia del Farmaco

Via del Liceo, 1

Perugia, Italy 06123

 

Notices to University shall be addressed to:

 

Attention: Prof. Benedetto Natalini

Dipartimento di Chimica e Tecnologia del Farmaco

Universita di Perugia

Via del Liceo, 1

Perugia, Italy 06123

 

8.5           Modification.
This Agreement may not be modified except by a written agreement signed by each of the parties hereto.

 

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8.6           Waiver.
No waiver of any rights shall be effective unless agreed to in writing by the party waiving such right, and the waiver of any breach
or default shall not constitute a waiver of any other right hereunder or any subsequent breach or default.

 

8.7           Disclaimer
of Indirect Damages. EXCEPT WITH RESPECT TO A BREACH OF SECTION 5, IN NO EVENT WILL ANY PARTY HERETO BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES ARISING IN ANY WAY OUT OF THIS AGREEMENT, HOWEVER CAUSED AND
ON ANY THEORY OF LIABILITY. THIS LIMITATION WILL APPLY EVEN IF THE OTHER PARTY HERETO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGE. Some jurisdictions do not allow limitations of such damages, so the above limitation may not apply to a party. Each party
may also have other rights which vary from jurisdiction to jurisdiction.

  

8.8           Section
Headings. The headings of the sections of this Agreement are intended for convenience of reference only and are not intended
to be a part of, or to affect the meaning or interpretation of, this Agreement.

 

8.9           Severability.
If, under applicable law or regulation, any provision of this Agreement is invalid or unenforceable, or otherwise directly or indirectly
affects the validity of any other material provision(s) of this Agreement (“Severed Clause”), it is mutually agreed
that this Agreement shall endure except for the Severed Clause. The parties shall consult and use their best efforts to agree upon
a valid and enforceable provision which shall be a reasonable substitute for such Severed Clause in light of the intent of this
Agreement.

 

8.10         Construction.
The parties agree that they have participated equally in the drafting of this Agreement and that the language herein contained
should not be presumptively construed against either of them.

 

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

 

8.12         English
Version. This Agreement is drafted in English. In the event that this Agreement is translated into a language other than English,
the original English version of this Agreement shall control all questions of interpretation with respect thereto.

 

8.13         Choice
of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, USA.

 

8.14         Dispute
Resolution. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity
thereof, shall be resolved as follows:

 

(a)           The
Principal Investigator and the designated executives of Sponsor and University shall meet to attempt to resolve such disputes.
If such persons cannot resolve such disputes within thirty (30) days after any party requests such a meeting, then any party may
make a written demand for formal dispute resolution in accordance with Section 8.14(b).

 

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EXECUTION COPY

Confidential

 

(b)          Any
dispute, controversy or claim not resolved according to Section 8.14(a) shall be finally settled by binding arbitration conducted
in the English language in New York, New York, USA by one arbitrator under the commercial arbitration rules of the American Arbitration
Association (“AAA”), which shall administer the arbitration and act as appointing authority. The arbitrator
shall be authorized to grant interim relief, including to prevent the destruction of goods or documents involved in the dispute,
protect trade secrets and provide for security for a prospective monetary award. The award of the arbitrator shall be the sole
and exclusive remedy of the parties and shall be enforceable in any court of competent jurisdiction, subject only to revocation
on grounds of fraud or clear bias on the part of the arbitrators.

 

(c)          Notwithstanding
anything contained in this Section 8.14 to the contrary, each party shall have the right to institute judicial proceedings against
the other party or anyone acting by, through or under such other party, in order to enforce the instituting party’s rights hereunder
through reformation of contract, specific performance, injunction or similar equitable relief.

 

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left blank]

 

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IN WITNESS WHEREOF, the parties hereto
have executed this Agreement under seal as of the date hereof.

  

	PRINCIPAL INVESTIGATOR	 	INTERCEPT PHARMACEUTICALS, INC.
	 	 	 	 	 
	By:	/s/ Roberto Pellicciari		By:	/s/ Mark Pruzanski
	 	Roberto Pellicciari	 	 	Mark Pruzanski
	 	 	 	 	President and CEO

 

UNIVERSITA DI PERUGIA DIPARTIMENTO DI
CHIMICA E TECNOLOGIA DEL FARMACO

 

	By:	/s/ Benedetto Natalini	 
	Name:	Benedetto Natalini	 
	Position: 	Department Director	 

 

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Confidential

 

    	 

    	 

    

 

EXECUTION COPY

Confidential

 

EXHIBIT A: PROJECT PARTICIPANT AGREEMENT

 

This Project Participant Agreement (“Agreement”),
effective as of January 1, 2012, (“Effective Date”), is made and entered into by and between Intercept Pharmaceuticals,
Inc., a Delaware corporation with principal offices at 18 Desbrosses Street, New York, NY 10013 (“Sponsor”),
and                        
(“Project Participant”), a scientist, post-doctoral fellow, student or technician at Università
di Perugia (“University”).

 

In consideration for being permitted to
participate on the Research Project (as defined in the Sponsored Research Agreement by and among Sponsor, Professor Roberto Pellicciari
and University of even date herewith (the “Sponsored Research Agreement”) under the direction of Professor Roberto
Pellicciari (“Principal Investigator”) at University and funded by Sponsor pursuant to a Sponsored Research Agreement
between Sponsor and Principal Investigator (the “Research Project”). Project Participant agrees:

 

		·	Project Participant shall keep, and provide to Principal Investigator from time to time, accurate
scientific records, including detailed laboratory notebooks sufficient to document any patentable inventions conceived or reduced
to practice, relating to the Research Project and shall make such records available to Sponsor during normal business hours upon
reasonable notice.

 

		·	Project Participant shall promptly and fully disclose to Principal Investigator in writing any
invention conceived and/or reduced to practice in the conduct of the Research Project.

 

		·	Project Participant hereby assigns to Principal Investigator, for subsequent assignment to Sponsor
pursuant to the Sponsored Research Agreement between Sponsor and Principal Investigator, all right, title and interest in and to
any and all data, information, technical reports, inventions (whether or not patentable), improvements, biological materials, substances,
reagents or similar tangible materials and discoveries developed and/or generated by Project Participants in the conduct of the
Research Project and/or during any period prior to or after the Effective Date if related to or derived from any information, data
and works of authorship owned or controlled by Sponsor or any of its affiliates regarding the Research Project (the “Research
Project Technology”), upon their creation, and all patent applications and patents covering any Research Project Technology,
together with any continuations, continuations-in-part and divisions of such patent applications and any extensions, reissues,
reexaminations, renewals and substitutions of such patents (collectively, “Research Project Patent Rights”). Project
Participant shall cooperate with Sponsor in providing assistance and executing any documentation necessary to perfect such assignment.
Project Participant further agrees that, if Sponsor is unable, after reasonable effort, to secure the signature of Project Participant
on any such documentation, any executive officer of Sponsor shall be entitled to execute any such documentation as the agent and
the attorney-in-fact of Project Participant, and Project Participant hereby irrevocably designates and appoints each executive
officer of Sponsor as his/her agent and attorney-in-fact to execute any such documentation on his/her behalf.

 

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EXECUTION COPY

Confidential

 

		·	Project
                                                                                                        Participant shall not
                                                                                                        publish or disclose any
                                                                                                        of Sponsor’s information
                                                                                                        which is (a) disclosed
                                                                                                        in writing or other tangible
                                                                                                        form and is labeled or
                                                                                                        identified as “Confidential”
                                                                                                        or “Proprietary”,
                                                                                                        (b) disclosed verbally
                                                                                                        and subsequently reduced
                                                                                                        to writing or other tangible
                                                                                                        form and labeled as “Confidential”
                                                                                                        or “Proprietary”
                                                                                                        or (c) commonly regarded
                                                                                                        as confidential and/or
                                                                                                        proprietary in the biotechnology
                                                                                                        industry (collectively,
                                                                                                        “Confidential
                                                                                                        Information”).
                                                                                                        All data and information
                                                                                                        developed by Project Participant
                                                                                                        in the course of the Research
                                                                                                        Project, provided by Sponsor,
                                                                                                        Principal Investigator
                                                                                                        or University in the course
                                                                                                        of the Research Project
                                                                                                        or that otherwise relates
                                                                                                        to Research Project Technology
                                                                                                        or Research Project Patent
                                                                                                        Rights shall be deemed
                                                                                                        to be Confidential Information
                                                                                                        of Sponsor.

 

		·	Project Participant represents and warrants that he/she has not granted to any party (including
University) other than Sponsor any right or interest in and to Research Project Technology or Research Project Patent Rights.

 

Project Participant acknowledges that he/she
is not an employee of Sponsor.

 

This Agreement may not be modified except
by a written agreement signed by both parties.

 

If, under applicable law or regulation,
any provision of this Agreement is invalid or unenforceable, or otherwise directly or indirectly affects the validity of any other
material provision(s) of this Agreement (“Severed Clause”), it is mutually agreed that this Agreement shall endure
except for the Severed Clause. The parties shall consult and use their best efforts to agree upon a valid and enforceable provision
which shall be a reasonable substitute for such Severed Clause in light of the intent of this Agreement.

 

This Agreement is drafted in English. In
the event that this Agreement is translated into a language other than English, the original English version of this Agreement
shall control all questions of interpretation with respect thereto.

 

This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, USA, excluding its conflicts of laws principles.

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be executed under seal by their duly authorized representatives.

 

	 	 	 	 
	Sponsor	 	Project Participant	 

 

	By:	 	 	By:	 
	Name:	 	 	Name:	 
	Title:	 	 	Title:	 
	Dated: 	 	 	Dated: 	 

 

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