Document:

Exhibit 4.32

 

EXECUTION COPY

 

 

Date:  4 August 2003

 

 

ELAN CORPORATION, PLC.

 

ELAN PHARMA INTERNATIONAL LIMITED

 

ELAN INTERNATIONAL SERVICES, LTD.

 

ELAN PHARMACEUTICALS, INC.

 

MONKSLAND HOLDINGS BV

 

AND

 

AMARIN CORPORATION PLC.

 

 

AMENDED AND RESTATED MASTER AGREEMENT

 

 

INDEX

 

	
  1.

  	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  NO EXISTING BREACHES
  KNOWN

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  CHARGE;
  AUGUST 2003 AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  LIMITED WAIVER (PERMAX)

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  MORATORIUM

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  ASSET SALES

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  USE OF PROCEEDS
  OF ASSET SALES ETC.

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  CONDITIONAL RELEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  USE OF SUBSEQUENT
  PROCEEDS

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  GENERAL
  PROVISIONS RELATING TO PAYMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  OPTION
  TO CONVERT DEBT INTO ORDINARY SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  INVESTOR RELATIONS
  PROGRAM

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  REPRESENTATIONS,
  WARRANTIES AND COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  MISCELLANEOUS

  	
   

  

 

 

THIS AMENDED
AND RESTATED AGREEMENT is made the 4th August 2003

 

BETWEEN:

 

(1)                                 ELAN CORPORATION, PLC., a public
limited company incorporated in the Republic of Ireland, whose registered
office is at Lincoln House, Lincoln Place, Dublin 2, Ireland (“Elan Corp”)

 

(2)                                 ELAN PHARMA INTERNATIONAL LIMITED,  a company incorporated in  the
Republic of Ireland, whose registered office is at WIL House, Shannon Business
Park, Shannon, Co Clare, Ireland (“EPIL”)

 

(3)                                 ELAN INTERNATIONAL SERVICES, LTD., a Bermuda
exempted limited liability company incorporated under the laws of Bermuda and
having its registered office at Clarendon House, 2 Church Street, Hamilton,
Bermuda (“EIS”)

 

(4)                                 ELAN PHARMACEUTICALS, INC.,  a corporation duly organized
and existing under the applicable laws of the State of Delaware, having a
principal place of business in South San Francisco, California (“EP Inc”)

 

(5)                                 MONKSLAND HOLDINGS BV, a private company limited by
shares incorporated in the Netherlands under registered number 33265127, whose
registered office is at Amsteldijk 166, 1079 Amsterdam, Netherlands (“Monksland”)

 

(6)                                 AMARIN CORPORATION PLC, a company incorporated in
England and Wales (registered no. 002353920), whose registered office is 7
Curzon Street, London, W1J 5HG England (“Amarin”)

 

WHEREAS:

 

(A)                              Elan and Amarin are parties to
a Master Agreement dated 27 January 2003. 
Pursuant to that Master Agreement, Elan and Amarin executed the
Amendments (as defined therein).

 

(B)                                Amarin wishes to further
restructure its relationship with Elan, and accordingly the parties have agreed
to do so upon the terms set out in this Agreement and in the August 2003
Amendments (as defined below).

 

NOW
IT IS AGREED in
consideration of the mutual promises and undertakings set out herein as
follows:

 

1.                                           DEFINITIONS AND INTERPRETATION

 

1.1.                                   Definitions:

 

“ADR”
shall mean the American Depositary Receipts of Amarin representing Amarin’s
American Depositary Shares (“ADSs”), each of which currently represents
one ordinary share of £1 in the capital of the Amarin and as are traded on the
Nasdaq National Market under the symbol “AMRN”.

 

1

 

“Affiliate” shall mean any corporation or
entity controlling, controlled by or under the common control of Elan or Amarin
or any third party, as the case may be. 
For the purpose of this definition, “control” shall mean direct or indirect
ownership of fifty percent (50%) or more of the stock or shares entitled to
vote for the election of directors.

 

“this Agreement” shall mean this amended and
restated agreement and shall include the Recitals and Schedules hereto.

 

“August 2003 Amendments” shall mean the
Carnrick Amendment, the Loan Amendment, the Permax Amendment and the Zelapar
Amendment together.

 

“Carnrick Agreement” shall mean the Amended
and Restated Asset Purchase Agreement dated as of 29 September 1999 (which
agreement concerned certain products known as the “Carnrick products”) by and
between EP Inc and Amarin, as varied.

 

“Carnrick Amendment” shall mean the
Amendment Agreement No. 2 relating to the Carnrick Agreement, the final and
definitive form of which is attached hereto.

 

“Change of Control” shall mean circumstances
where any third party shall, directly or indirectly, acquire fifty percent
(50%) or more of the then voting stock of Amarin, or otherwise merge,
consolidate or enter into any similar transaction (or binding agreement in
respect thereof) with Amarin in a transaction after which Amarin is not the
controlling entity.

 

“Charge” shall mean the Fixed and Floating
Charge over the entire assets and business of Amarin, in favour of Elan Corp,
EPIL, EIS, EP Inc and Monksland, the final and definitive form of which is
attached hereto.

 

“Deferred Payment” shall have the same
meaning as in the Carnrick Agreement, as amended by the Carnrick Amendment.

 

“Demandable Date” shall mean the soonest of:

 

(a)          one (1) business day after the receipt by
Amarin of Net Proceeds of the Legacy Sale, Swedish Sale and Further Equity
Financing of not less than US$30,000,000 (thirty million dollars);

 

(b)         a Change of Control; and

 

(c)          31 December 2003.

 

“Elan” shall mean Elan Corp, EPIL, EIS, EP
Inc and/or Monksland as the context requires.

 

“Elan Agreements” shall mean together :

 

(a)                        this Agreement;

 

2

 

(b)                       the Existing Agreements, as
amended by the respective August 2003 Amendments;

 

(c)                        the Charge; and

 

(d)                       the Registration Rights Agreement
dated as of 21 October 1998 and amended by Amendment No. 1 and Waiver
dated 27 January 2003 between Amarin, EIS and Monksland —

 

and “Elan Agreement” shall have a
corresponding meaning.

 

“Existing Agreements” shall mean the
Carnrick Agreement, the Loan Agreement, the Permax Agreement and the Zelapar
Agreement.

 

“Further Equity Financing” shall mean all
and any equity financing by Amarin or any Affiliate, including by the issue of
shares of any class, warrants, debt convertible into equity and/or the grant of
the right to receive or to subscribe for shares of any class.

 

“Insolvency Event” shall mean circumstances
where:

 

(a)                             Amarin is unable to pay its
debts as they fall due, commences negotiations with any one or more of its
creditors (other than Elan Corp and/or its Affiliates) with a view to the
general readjustment or rescheduling of its indebtedness or makes a general
assignment for the benefit of or composition with its creditors;

 

(b)                            Amarin takes any corporate
action or other steps are taken or legal proceedings are started for its
winding up (which are not dismissed or struck out within seven days of
presentation), or for its dissolution, administration or re-organisation (other
than in connection with a bona fide solvent restructuring) or for the
appointment of a liquidator, receiver, administrator, administrative receiver,
trustee or similar officer of it or of all or a substantial part of its
revenues and assets; or

 

(c)                             any execution or distress is
levied against, or an encumbrancer takes possession of, the whole or any
substantial part of, the property, undertakings or assets of Amarin or any
event occurs which under the laws of any jurisdiction has a similar or
analogous effect.

 

“Legacy Sale” shall mean the sale to one or
more independent third parties of all or substantially all of the assets of
Amarin and/or its Affiliates relating to all or substantially all of the
following products/product lines: Motofen, Capital & Codeine, Nohalist and
the Bontril and Phrenilin families of products.

 

“Lilly” shall mean Eli Lilly and Company,
its successors or assigns.

 

“Lilly Agreement” shall mean the Amended and
Restated License and Supply Agreement dated as of 29 March 2002 between
Lilly and Amarin, relating to Permax.

 

3

 

“Lilly Guaranty” shall mean
Section 3(A) of the Consent to Assignment, Continuance of Limited License,
Unconditional Continuing Limited Guaranty, and Confirmation of Continuing
Obligations Agreement, by and between Lilly and EP Inc, effective as of 29
March 2002.

 

“Loan” shall have the same meaning as in the
Loan Agreement, as amended by the Loan Amendment.

 

“Loan Agreement” shall mean the Loan
Agreement dated 28 September 2001 between Amarin and EPIL, as varied by
(i) a Deed of Variation dated 19 August 2002, (ii) a Deed of
Variation No. 2 dated 23 December 2002 and (iii) a Deed of Variation No. 3
dated 27 January 2003.

 

“Loan Amendment” shall mean the Deed of
Variation No. 4 relating to the Loan Agreement, the final and definitive form
of which is attached hereto.

 

“Net Proceeds” means in relation to (a) the
Legacy Sale and/or Swedish Sale or (b) Further Equity Financing; the gross
amount received by Amarin (and released from any applicable escrow) less
customary expenses properly incurred or reasonably expected to be incurred by
Amarin in connection with the conclusion of such transaction (including
bankers’, brokers, legal and accounting fees, printing fees, stamp duty, stamp
duty reserve tax, ADR issuance fees and NASDAQ fees related to the issuance of
ADRs, the registration of shares and/or the listing of ADRs, and fees of the
U.S. Securities and Exchange Commission related to the registration of shares
and/or ADRs, but for the avoidance of doubt not including interest, repayment of
principal, dividends or redemption of capital).

 

“Ordinary Shares” shall mean ordinary shares
of £1 (one pound sterling) each in the capital of Amarin.

 

“Outstanding Amounts” shall mean such of the
Deferred Payment, Loan and Total Divestiture Amount as may be outstanding at a
given time, whether or not immediately due, including the Relevant Payments.

 

“Permax Agreement” shall mean the Amended
and Restated Distribution, Marketing and Option Agreement dated 28
September 2001, by and between EP Inc and Amarin, as varied by Deed of
Variation dated 27 January 2003.

 

“Permax Amendment” shall mean the Deed of
Variation No. 2 relating to the Permax Agreement, the final and definitive form
of which is attached hereto.

 

“Relevant Payments” shall mean (a) interest
payable under Clauses 2.3 or 2.3A of the Loan Agreement; and (b) quarterly
payments towards the Total Divestiture Amount under Section 3.01(c)(ii) of
the Permax Agreement.

 

“Scherer Agreement” shall mean that certain
License and Supply Agreement dated as of February 25,1999 by and between R
P Scherer Corporation and EPIL, as it may be amended, assigned, novated,
restated or otherwise replaced from time to time.

 

4

 

“Swedish Sale” shall mean the sale to an
independent third party of (a) all or substantially all the shares in Amarin’s
Affiliate Amarin Development AB, Malmö, Sweden (“Amarin AB”) or (b) all or
substantially all of the assets of Amarin AB.

 

“Total Divestiture Amount” shall have the
same meaning as in the Permax Agreement, as amended by the Permax Amendment.

 

“Zelapar Agreement” shall mean the Option
Agreement dated 28 June 2001, between EPIL and Amarin, as varied by Deed
of Variation dated 27 January 2003.

 

“Zelapar Amendment” shall mean the Amended and
Restated Option Agreement (Zelapar), between EPIL and Amarin, the final and
definitive form of which is attached hereto.

 

“$” and “US$” shall mean United States
dollars.

 

1.2.                                   Interpretation:

 

In this
Agreement:

 

1.2.1                             the singular includes the
plural and vice versa; references to words in one gender include references to
the other genders; and references to natural persons includes corporate bodies,
partnerships and vice versa;

 

1.2.2                             any reference to a Clause or
Schedule, unless otherwise specifically provided, is to a Clause or
Schedule of or to this Agreement;

 

1.2.3                             the headings in this Agreement
are inserted for convenience only and do not affect its construction or
interpretation;

 

1.2.4                             the expressions “include”,
“includes”, “including”, “in particular” and similar expressions shall be
construed without limitation.

 

2.                                           NO EXISTING BREACHES KNOWN

 

2.1.                                   EPIL and Amarin acknowledge
that as of 25 July 2003, Amarin owed to EPIL US$169,461 (one hundred and
sixty nine thousand four hundred and sixty one dollars) under Section 4.4
of the Zelapar Agreement.  Amarin will
pay to EPIL the said sum of US$169,461 within three (3) business days after
execution of this Agreement.

 

2.2.                                   Elan and Amarin acknowledge to
each other that as of the date of this Agreement, they have no actual knowledge
of any breach by the other of the Existing Agreements.

 

3.                                           CHARGE; AUGUST 2003 AMENDMENTS

 

Immediately
after execution of this Agreement, the respective parties to each of the Charge
and the August 2003 Amendments shall execute and deliver each of them to
the other parties thereto.

 

5

 

4.                                           LIMITED WAIVER (PERMAX)

 

For the
purposes of the Permax Agreement, EP Inc agrees that Amarin shall not, as a
result of Further Equity Financing, be obliged to apply any part of the
proceeds of such Further Equity Financing received on or before 31
December 2003 in the manner set out in Section 3.01(d) of the Permax
Agreement, but shall instead apply such proceeds in the manner set out in this
Agreement.

 

5.                                           MORATORIUM

 

5.1.                                   Subject to Amarin paying to
EPIL the sum referred to in Clause 2.1, Relevant Payments which would, but for
this Clause, fall due under the Loan Agreement and the Permax Agreement prior
to 31 December 2003 shall instead become due and payable on the earliest
of:

 

5.1.1                             the Demandable Date;

 

5.1.2                             if Amarin breaches any Elan
Agreement and does not remedy it within thirty (30) days of written notice of
such breach from Elan specifying in reasonable detail the nature of the breach
and requesting the same to be remedied, the expiry of such thirty (30) day
period; and

 

5.1.3                             the occurrence of an
Insolvency Event.

 

5.2.                                   Clause 5.1 shall also apply to
the quarterly payment of US$2,500,000 (two million five hundred thousand
dollars) due under Section 3.01(c)(ii) of the Permax Agreement on 4
June 2003, in respect of which Elan previously agreed a delay in payment:

 

5.3.                                   For the avoidance of doubt,
this Clause 5 does not apply to:

 

5.3.1                             any amounts which are payable
under this Agreement, including payments to be made pursuant to this Agreement
under the Loan Agreement and the Permax Agreement; or

 

5.3.2                             Amarin’s obligations under the
Zelapar Agreement, as amended by the Zelapar Amendment.

 

6.                                           ASSET SALES

 

6.1.                                   Subject to the fiduciary obligations
of the Board of Directors, Amarin shall use all its commercial best efforts to
effect for upfront cash consideration the Legacy Sale and the Swedish Sale, in
each case for a reasonable sum, as expeditiously as is reasonably practicable
after the date of this Agreement.

 

6.2.                                   Amarin shall notify Elan as
soon as is reasonably practicable following the Legacy Sale and the Swedish
Sale of the fact of, gross proceeds and Net Proceeds of the Legacy Sale and the
Swedish Sale.

 

6

 

6.3.                                   Not later than the last day of
each calendar month, commencing February 2003, Amarin shall provide to
Elan:

 

6.3.1                             a summary update of the status
of the Legacy Sale and the Swedish Sale; and

 

6.3.2                             certification from a company officer
(a) stating that the requirements of this Clause 6 have been complied with and
(b) outlining in reasonable detail the steps taken by Amarin during that month
to effect the Legacy Sale and the Swedish Sale.

 

The obligation to provide updates and/or certification
shall cease following the discharge in full of the Outstanding Amounts, or (if
sooner) the completion of the Legacy Sale and the Swedish Sale and the
application of the Net Proceeds of the same in accordance with this Agreement.

 

7.                                           USE OF PROCEEDS OF ASSET SALES ETC.

 

Subject
to Clause 8 below, Amarin shall apply not less than 90% (ninety percent) of the
Net Proceeds of (i) the Legacy Sale (ii) the Swedish Sale and (iii) any Further
Equity Financing to the extent that such proceeds of Further Equity Financing
are received on or before 31 December 2003, as follows:

 

7.1.                                   First, in paying to EPIL the
non-refundable sum of US$5,000,000 (five million dollars);

 

7.2.                                   Next, in paying to EP Inc the
balance of the Total Divestiture Amount then outstanding, in partial or total
discharge of that part of the Total Divestiture Amount then undischarged;

 

7.3.                                   Next, in prepaying to EP Inc
the Deferred Payment, in partial or total discharge of that part of the
Deferred Payment of US$6,500,000 (six and a half million dollars) then
undischarged;

 

7.4.                                   Next, in prepaying to EPIL the
Loan which is outstanding;

 

7.5.                                   Next, in discharging any
amounts then due to Elan Corp and/or any of its Affiliates, howsoever arising;

 

7.6.                                   Finally, for such other
purposes as Amarin in its absolute discretion may think fit.

 

8.                                           CONDITIONAL RELEASE

 

Notwithstanding
Clauses 5 and 7, Amarin shall:

 

(a)                                  be irrevocably and unconditionally released
from any further liability in respect of the Outstanding Amounts, and

 

(b)                                 be deemed to have exercised the Option as
defined in the Zelapar Amendment (“Zelapar Option”) –

 

7

 

if and
only if:

 

8.1.                                   Elan receives prior to 31
December 2003 of a cumulative total of US$30,000,000 (thirty million
dollars) from Amarin in immediately available funds, whether in one or a number
of instalments and whether pursuant to Clause 7 or otherwise expressed to be in
discharge of the Outstanding Amounts;

 

8.2.                                   Amarin discharges in full  of
all amounts owed to Elan Corp and/or any of its Affiliates, other than any
Outstanding Amounts;

 

8.3.                                   Amarin is not in breach of any
Elan Agreement;

 

8.4.                                   Amarin:

 

8.4.1                             is able to pay its debts as
they fall due;

 

8.4.2                             has not commenced negotiations
with any one or more of its creditors (other than Elan and/or its Affiliates)
with a view to the general readjustment or rescheduling of its indebtedness or
made a general assignment for the benefit of or composition with its creditors;

 

8.4.3                             has not taken any corporate
action or other steps are taken or legal proceedings are started for its
winding up (which were not dismissed or struck out within seven days of
presentation), or for its dissolution, administration or re-organisation (other
than in connection with a bona fide solvent restructuring) or for the
appointment of a liquidator, receiver, administrator, administrative receiver,
trustee or similar officer of it or of all or a substantial part of its
revenues and assets; and

 

8.4.4                             has not had any execution or
distress levied against, or an encumbrancer taken possession of, the whole or
any substantial part of, the property, undertakings or assets of Amarin or any
event occurs which under the laws of any jurisdiction has a similar or
analogous effect –

 

nor will it become unable to pay its debts
as they fall due or any such event occur by reason of the exercise of the
Zelapar Option;

 

8.5.                                   Amarin is not, to its best
knowledge, having made diligent enquiry, in breach of any obligation under the
Lilly Agreement; and

 

8.6.                                   Amarin provides to Elan
certification from a company officer stating that all the requirements of this
Clause 8 have been complied with –

 

For the
avoidance of doubt, Amarin shall not be entitled to such release unless and
until all the foregoing conditions are met, and in the case of Clause 8.1, met
prior to the date specified therein.

 

For the
further avoidance of doubt, except in the case of fraud or the certification in
relation to Clause 8.4 proving false, Elan’s entitlement to damages in relation
to the certification in Clause 8.6 shall not include any right to Outstanding
Amounts discharged or released under this Clause 8 and the exercise of the
Zelapar Option shall not be invalidated. 
In the event of

 

8

 

fraud
or the certification in relation to Clause 8.4 proving false, the exercise of
the Zelapar Option shall be invalidated in addition to any other remedy Elan
may have.

 

9.                                           USE OF SUBSEQUENT PROCEEDS

 

9.1.                                   If, following discharge of the
Outstanding Amounts pursuant to Clause 8 above but on or prior to 30
June 2004, Amarin receives further Net Proceeds of (i) the Legacy Sale
(ii) the Swedish Sale and (iii) any Further Equity Financing, then to the
extent that all Net Proceeds of the same, including those derived before
discharge of the Outstanding Amounts, exceed US$40,000,000 (forty million
dollars), Amarin shall pay half of such excess to EPIL, rounded up to the next
million dollars and subject to a maximum payment to EPIL of US$10,000,000 (ten
million dollars).

 

9.2.                                   Amounts paid to EPIL under
Clause 9.1 shall be applied in accordance with Section 7.3.2 of the
Zelapar Amendment.

 

9.3.                                   The obligation in Clause 9.1
shall not apply to Net Proceeds received at any time after the termination of
the Scherer Agreement by EPIL or Amarin. 
For the avoidance of doubt, the Scherer Agreement shall not be
considered terminated by reason of any assignment, novation, amendment,
restatement, new agreement or other arrangement of any kind whereby Amarin (or
any Affiliate or assignee) retains material rights, actual or contingent, to
the product known as Zelapar.

 

10.                                    GENERAL PROVISIONS RELATING TO PAYMENTS

 

10.1.                             Time for Payment:

 

Payments
required under Clauses 7 and 9.1 shall be made within 3 (three) business days
of the closing of the Legacy Sale, Swedish Sale or Further Equity Financing, as
the case may be.

 

10.2.                             Right to Amend:

 

Without
prejudice to Clause 8:

 

10.2.1                       Elan shall be entitled, in its
sole discretion, to amend the order in which the Net Proceeds of the Legacy
Sale and/or the Swedish Sale and/or Further Equity Financing (as the case may
be) shall be applied, as between the uses specified in Clauses 7.1 to 7.5
inclusive.

 

10.2.2                       Such amendment will become
effective upon receipt by Amarin of a written notice by Elan at any time or
times but for the avoidance of doubt any such notice shall not have
retrospective effect in respect of any payments previously made by Amarin to
either of EPIL or EP Inc. in accordance with Clause 7.

 

10.3.                             Effect on Permax Agreement:

 

Any
payment made by Amarin to EP Inc under Clause 7.2 shall be credited first
against the last payments in time under Section 3.01(c) of the Permax
Agreement with the intention and effect that the Net Proceeds shall be used to
accelerate the payments due to EP Inc.

 

9

 

10.4.                             Effect on Loan Agreement:

 

Any
payment made by Amarin to EPIL under Clause 7.4 shall be treated as prepayments
under the Loan Agreement, that is to say against the earliest payments in time
due first.  Solely for this purpose,
EPIL waives the minimum prepayment amount.

 

10.5.                             No Conflict With Other Elan
Agreements:

 

In the
event of any conflict between this Agreement and any of the Elan Agreements the
provisions of this Agreement shall prevail.

 

10.6.                             No Refund:

 

Payments
made to Elan under Clauses 7 and 9 shall be non-refundable and shall not be
subject to any future performance obligations of Elan to Amarin or applicable
against any future services provided from Elan to Amarin.

 

11.                                    OPTION TO CONVERT DEBT INTO ORDINARY SHARES

 

11.1.                             The Conversion Option:

 

If the
Outstanding Amounts have not been discharged before 1 January 2004, either
pursuant to Clause 8 of this Agreement or otherwise, Elan in its sole
discretion, subject to Clause 11.2, shall have the option at any time
thereafter to receive payment of the whole or any part of the Outstanding
Amounts in Ordinary Shares (the “Conversion Option”).

 

11.2.                             Necessary Approvals:

 

11.2.1                       Clause 11.1 shall not be
effective unless and until Amarin receives all shareholder, regulatory and
governmental consents and approvals to honour it without material conditions
which are in Elan’s reasonable opinion necessary, including authority to issue
and allot the Ordinary Shares, to disapply pre-emption rights in respect of
them, other shareholder approval and/or the approval of the Panel of Takeovers
and Mergers, London.

 

11.2.2                       Amarin shall use its best
commercial efforts to secure all such consents and approvals and to maintain
them in force at all material times.

 

11.2.3                       Without prejudice to the
generality of the foregoing, Amarin shall seek requisite approvals from its
shareholders in the course of each general meeting convened after the date of
this Agreement.

 

11.3.                             Mode of Exercise:

 

The
Conversion Option shall be exercised by written notice to Amarin, specifying
the amount of payment to be received in Ordinary Shares, and shall relate to
such part or parts of the Outstanding Amounts as Elan may nominate in the
Conversion Option notice.  Notice from
EPIL or EP Inc may validly be given by the other, and/or by Elan Corp.

 

10

 

11.4.                             Multiple Exercise:

 

Elan
may exercise the Conversion Option on any number of occasions while any part of
the Outstanding Amounts remains undischarged PROVIDED THAT the minimum
amount of any one exercise shall be the lesser of US$1,000,000 (one million
dollars) and the balance of the Outstanding Amounts.  Exercises by different Affiliates of Elan Corp within a period of
three (3) business days shall count for this purpose as a single exercise.

 

11.5.                             Issue of Ordinary Shares:

 

Amarin
shall issue and allot the respective Ordinary Shares as soon as reasonably
practicable and in any event within five (5) business days of the Conversion
Option notice.

 

Issue
and allotment shall be to the respective creditor(s), or such person (including
EIS or any other affiliate of EP Inc) as may be designated in the Conversion
Option notice (either, the “Recipient”).

 

11.6.                             Price:

 

The
price at which Ordinary Shares shall be issued and allotted to Elan shall be
the average closing mid-market price of Ordinary Shares (or equivalent number
of American Depositary Receipts representing them) on NASDAQ on the five
business days immediately prior to the date of the Conversion Option notice.

 

Elan
shall not receive fractional shares, any fraction being paid in cash.

 

11.7.                             Revocation:

 

Elan
shall not be entitled to revoke any exercise of the Conversion Option, unless
(a) Amarin consents, or (b) the Ordinary Shares are not issued and allotted
within five (5) business days of exercise of the Option.

 

11.8.                             Assignment:

 

The
Recipient’s right to receive Ordinary Shares, together with all ancillary
rights shall be freely assignable without Amarin’s consent.  For the avoidance of doubt, ancillary rights
include registration rights, any right to revoke exercise of the Conversion
Option, the right to cash payment in the event of such revocation and the right
to demand immediate payment of the same (to the extent that Elan had such
right).

 

11.9.                             Registration Rights:

 

In the
event that Elan exercises the Conversion Option, the Recipient shall be
entitled to registration rights in respect of the Ordinary Shares issued and
allotted which are no less favourable in any respect to the Recipient than
those afforded in respect of the “Registrable Securities” of EIS and Monksland
pursuant to that certain Registration Rights Agreement dated as of 21
October 1998 and amended by that certain Amendment No. 1 and Waiver dated
27 January 2003 between Amarin, EIS and Monksland PROVIDED THAT the Recipient
shall not be entitled to have the Ordinary Shares included in the registration
statement described in Article 5 of the said Amendment No. 1 and Waiver.

 

11

 

11.10.                       Expenses:

 

All
fees and expenses, including stamp duty, stamp duty reserve tax, depositary’s
fees and NASDAQ fees, incurred in connection with this Clause 11 or its
performance, shall be payable by Amarin.

 

11.11.                       No Conflict:

 

11.11.1                 Nothing in this Clause 11 shall affect any
right Elan may have to demand immediate payment of any amount.

 

11.11.2                 Elan’s rights in this Clause 11 are
additional to and not in substitution for those set out in the Carnrick
Agreement and the Carnrick Amendment.

 

12.                                    INVESTOR RELATIONS PROGRAM

 

Insofar
as it is lawfully able to do so, Amarin shall:

 

12.1.                             forthwith after the date of
this Agreement, proactively initiate and thereafter diligently pursue an
investor relations programme to endeavour to raise the profile of its ADRs; and

 

12.2.                             as from the first quarter of
2004, at Elan’s option, actively support a sale or placement of Elan’s equity,
including through roadshow and/or registration statement as may reasonably be
required.

 

13.                                    REPRESENTATIONS, WARRANTIES AND COVENANTS

 

13.1.                             Amarin represents and warrants
to Elan that:

 

13.1.1                       it has the right, power,
capacity and authority and has taken all action necessary to authorise it to
execute and deliver and to exercise its rights and perform its obligations under
this Agreement, the Charge, the August 2003 Amendments and any ancillary
documents pertaining thereto (together “Transaction Documents”), and its
obligations under the Transaction Documents are valid, legally binding and
enforceable according to their terms, including obtaining all necessary
approvals and consents from its shareholders and any third parties;

 

13.1.2                       there are no agreements
between Amarin and any third party that conflict with the Transaction
Documents;

 

13.1.3                       except for the shareholder,
regulatory and governmental consents for the purposes of the issuance,
allotment and registration of shares under each of this Agreement, the Zelapar
Amendment and the Carnrick Amendment, it does not require any further consents
or approvals to consummate the transaction contemplated by the Transaction
Documents including:

 

13.1.3.1                     approval of its shareholders; or

 

13.1.3.2                     approval of NASDAQ;

 

12

 

13.1.4                       as of the date hereof, neither
Amarin nor any of its Affiliates has any indebtedness, secured or unsecured,
outstanding to any third party other than Permitted Indebtedness (as defined in
the Loan Agreement);

 

13.1.5                       Amarin is not, to its best
knowledge, having made diligent enquiry, in breach of any obligation under the
Lilly Agreement; and

 

13.1.6                       Amarin is the legal and
beneficial owner of the Shares, as defined in the Charge.

 

13.2.                             Elan represents and warrants
to Amarin that:

 

13.2.1                       it has the right, power,
capacity and authority and has taken all action necessary to authorise it to
execute and deliver and to exercise its rights and perform its obligations
under the Transaction Documents, and its obligations under the Transaction
Documents are valid, legally binding and enforceable according to their terms,
including obtaining all necessary approvals and consents from its shareholders
and any third parties;

 

13.2.2                       there are no agreements
between Elan and any third party that conflict with the Transaction Documents;

 

13.2.3                       it does not require any further
consents or approvals to consummate the transaction contemplated by the
Transaction Documents including:

 

13.2.3.1                     approval of its shareholders; or

 

13.2.3.2                     approval of the New York Stock Exchange.

 

13.3.                             Amarin covenants with Elan
that it shall:

 

13.3.1                       until 30 April 2005,
maintain its outstanding quantifiable liabilities under the Lilly Agreement (as
may be amended from time to time) at no more than US$3,000,000 (three million
dollars);

 

13.3.2                       promptly inform Elan if Amarin
becomes aware of any action, event or circumstances which may cause Elan to
have liability under the Lilly Guaranty; and

 

13.3.3                       indemnify and hold harmless
Elan against all and any liabilities to Lilly arising under the Lilly Guaranty.

 

14.                                    MISCELLANEOUS

 

14.1.                             Confidentiality:

 

Except
as provided in or anticipated by this Agreement, each party shall at all times
during the continuance of this Agreement use its respective best endeavours to
keep the contents of this Agreement and the Amendments confidential and
accordingly shall not disclose details of the contents of this Agreement or the
August 2003 Amendments to any other person other than on a confidential
basis.

 

13

 

14.2.                             Announcements:

 

Subject
to Clause 14.3, no announcement or public statement concerning the existence,
subject matter or any term of this Agreement shall be made by or on behalf of
any party hereto without the prior written approval of the other party (Elan
Corp in the case of Elan).

 

The
terms of any such announcement shall be agreed in good faith by the parties.

 

14.3.                             Required Disclosures:

 

A party
(the “Disclosing
Party”) will be entitled to make an announcement or public statement
concerning the existence, subject matter or any term of this Agreement, or to
disclose Confidential Information that the Disclosing Party is required to make
or disclose pursuant to:

 

14.3.1                       a valid order of a court or
Governmental Authority; or

 

14.3.2                       any other requirement of law,
regulation or any securities market or stock exchange;

 

PROVIDED THAT if the Disclosing Party
becomes legally required to make such announcement, public statement or
disclosure hereunder, the Disclosing Party shall give the other party or
parties hereto prompt notice of such fact to enable the other party or parties
hereto to seek a protective order or other appropriate remedy concerning any
such announcement, public statement or disclosure.

 

The
Disclosing Party shall fully co-operate with the other party or parties hereto
in connection with that other party’s or parties’ efforts to obtain any such
order or other remedy.

 

If any
such order or other remedy does not fully preclude announcement, public
statement or disclosure, the Disclosing Party shall make such announcement,
public statement or disclosure only to the extent that the same is legally
required.

 

14.4.                             Tax Shelter Regulations
Exclusion:

 

Notwithstanding
the foregoing and/or any other express or implied agreement or understanding to
the contrary, the parties hereto and their respective employees,
representatives, and other agents are authorized to disclose the tax treatment
and structure (insofar as it may be relevant to the tax treatment) of this
transaction to any and all persons, without limitation of any kind.  The parties may disclose all materials of
any kind (including opinions or other tax analysis) to the extent (but only to
the extent) that they relate to the tax treatment and structure (insofar as it
may be relevant to the tax treatment) of the transaction. This authorization is
not intended to permit disclosure of any other information including (i) any
portion of any materials to the extent not related to the tax treatment or
structure (insofar as it may be relevant to the tax treatment) of the
transaction, (ii) the identities of participants or potential participants in
the transaction, (iii) the existence or status of any negotiations, (iv) any
pricing information, (v) any financial information or historic tax return
information relating to any party to the transaction or (vi) any other term or
detail not related to the tax treatment or structure (insofar as it may be
relevant to the tax treatment) of the transaction.

 

14

 

14.5.                             Assignment:

 

14.5.1                       Without prejudice to Clause
11.8, Elan may assign this Agreement in whole or in part to any lawful assignee
of the Existing Agreements, as amended by the August 2003 Amendments.

 

14.5.2                       Amarin shall not assign this
Agreement without the prior written consent of Elan.

 

14.6.                             Change of Control:

 

14.6.1                       Amarin shall notify Elan
immediately upon a Change of Control.

 

14.6.2                       In the event of a Change of
Control, Amarin’s right under Clause 8 shall survive for a period of five (5)
business days, notwithstanding that by virtue of the Change of Control, Elan
may have demanded immediate payment of some or all of the Outstanding Amounts.

 

14.7.                             Parties bound:

 

This
Agreement shall be binding upon and enure for the benefit of parties hereto,
their successors and permitted assigns.

 

14.8.                             Severability:

 

If any
provision in this Agreement is deemed to be, or becomes invalid, illegal, void
or unenforceable under applicable laws:-

 

14.8.1                       such provision will be deemed
amended to conform to applicable laws so as to be valid and enforceable; or

 

14.8.2                       if it cannot be so amended
without materially altering the intention of the parties, it will be deleted
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not be impaired or affected in any way.

 

14.9.                             Relationship of the parties:

 

14.9.1                       Nothing contained in this
Agreement is intended or is to be construed to constitute any of the parties
hereto as partners or members of a joint venture or any party as an employee of
another party.

 

14.9.2                       No party hereto shall have any
express or implied right or authority to assume or create any obligations on
behalf of or in the name of any other party or to bind another party to any
contract, agreement or undertaking with any third party.

 

14.10.                       Amendments:

 

No
amendment, modification or addition hereto shall be effective or binding on any
party hereto unless set forth in writing and executed by a duly authorised
representative of all parties hereto.

 

15

 

14.11.                       Waiver:

 

No
waiver of any right under this Agreement shall be deemed effective unless
contained in a written document signed by the party charged with such waiver,
and no waiver of any breach or failure to perform shall be deemed to be a
waiver of any future breach or failure to perform or of any other right arising
under this Agreement.

 

14.12.                       Entire agreement:

 

14.12.1                 Each of the parties hereto hereby
acknowledges that in entering into this Agreement it has not relied on any
representation or warranty except as expressly set forth herein or in any
document referred to herein.

 

14.12.2                 This Agreement, the Charge, and the
August 2003 Amendments together set forth all of the agreements and
understandings between the parties with respect to the subject matter hereof,
and supersedes and terminates all prior agreements and understandings between
the parties with respect to the subject matter hereof, including the Master
Agreement, but without prejudice to any accrued rights or obligations under the
Master Agreement.  There are no
agreements or understandings with respect to the subject matter hereof, either
oral or written, between the Parties other than as set forth in this Agreement.

 

14.12.3                 Nothing in this Clause 14.12 shall exclude
any liability which any party would otherwise have to the other party or any
right which either of them may have to rescind this Agreement in respect of any
statements made fraudulently by the other prior to the execution of this
Agreement or any rights which either of them may have in respect of fraudulent
concealment by the other.

 

14.13.                       Governing law and jurisdiction:

 

14.13.1                 This Agreement shall be governed by and
construed in accordance with English law.

 

14.13.2                 For the purposes of this Agreement the
parties submit to the jurisdiction of the English courts.

 

14.14.                       Notice:

 

14.14.1                 Any notice to be given under this Agreement
shall be sent in writing in English by registered or recorded delivery post,
reputable overnight courier or fax to:

 

	
  Elan at

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Elan International Services Ltd.

  	
   

  	
   

  
	
  102 St. James Court

  	
   

  	
   

  
	
  Flatts,

  	
   

  	
   

  
	
  Smiths FL04

  	
   

  	
   

  
	
  Bermuda

  	
   

  	
   

  
	
  Attention:

  	
  Secretary

  	
   

  	
   

  
	
  Fax:

  	
  +1 441 292 2224

  	
   

  	
   

  

 

16

 

	
  Amarin at

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7 Curzon Street

  	
   

  	
   

  
	
  London

  	
   

  	
   

  
	
  W1J 5HG

  	
   

  	
   

  
	
  England

  	
   

  	
   

  
	
  Attention:

  	
  General Counsel & Company Secretary

  
	
  Fax:

  	
  +44 20 7499 9004

  	
   

  	
   

  

 

or to such other address(es) and fax
numbers as may from time to time be notified by either party to the other
hereunder.

 

14.14.2                 Any notice sent by mail shall be deemed to
have been delivered within 7 working days after despatch or delivery to the
relevant courier and any notice sent by fax shall be deemed to have been
delivered upon confirmation of receipt. 
Notice of change of address shall be effective upon receipt.

 

14.15.                       Further assurances:

 

At the
request of any of the parties, the other party or parties shall (and shall use
reasonable efforts to procure that any other necessary third parties shall)
execute all such documents, and so all such acts and things as may reasonably
be required subsequent to the signing of this Agreement for assuring to or
vesting in the requesting party the full benefit of the terms hereof.

 

Additionally,
to the extent that the consent of RP Scherer Corporation may be needed to the
Zelapar Amendment, and/or to effect the transaction(s) thereby contemplated,
the parties shall reasonably cooperate with each other with a view to securing
such consent and further (at Elan’s option) Amarin shall use its best efforts
to secure such consent.

 

14.16.                       Counterparts:

 

This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute this Agreement.

 

14.17.                       Contracts (Rights of Third
Parties) Act 1999:

 

A
person who is not a party to this Agreement has no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of this Agreement, but
this does not affect any right or remedy of a third party which exists or is
available apart from that Act.

 

IN WITNESS whereof the parties have
executed this Agreement on the date first above written.

 

17

 

[Signature Page: Amended
and Restated Master Agreement]

 

	
  SIGNED

  	
  SIGNED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For and on
  behalf of

  	
  For and on
  behalf of

  
	
  ELAN CORPORATION, PLC.

  	
  ELAN PHARMA INTERNATIONAL

  LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED

  	
  SIGNED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For and on
  behalf of

  	
  For and on
  behalf of

  
	
  ELAN INTERNATIONAL SERVICES, LTD.

  	
  ELAN PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED

  	
  SIGNED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For and on
  behalf of

  	
  For and on
  behalf of

  
	
  MONKSLAND HOLDINGS BV

  	
  AMARIN CORPORATION PLC.

  

 

18Exhibit 4.33

 

Date:  4th
August 2003

 

 

AMARIN CORPORATION PLC.

 

AND

 

ELAN PHARMA INTERNATIONAL LIMITED

 

 

AMENDED AND RESTATED OPTION AGREEMENT

(ZELAPARTM)

 

 

INDEX

 

	
  1.

  	
  Rights
  Subject to Option; Information Provided to Amarin

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Evaluation by Amarin

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Option to License

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Steering Committee

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Representations,
  Warranties and Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Financial
  Terms; Milestone Payments, Royalty

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous.

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT
  A

  	
  PATENT
  RIGHTS

  	
   

  

 

 

CONFIDENTIAL

 

THIS AMENDED AND RESTATED
AGREEMENT
is made the 4th August 2003

 

BETWEEN:

 

(1)                                 AMARIN CORPORATION PLC, a company incorporated in
England and Wales (registered no. 002353920), whose registered office is 7
Curzon Street, London, W1J 5HG England (“Amarin”); and

 

(2)                                 ELAN PHARMA INTERNATIONAL LIMITED,  a company incorporated in  the
Republic of Ireland, whose registered office is at WIL House, Shannon Business
Park, Shannon, Co Clare, Ireland (“Elan”),

 

each
for themselves and their respective affiliates

 

RECITALS:

 

(A)                              Elan is the owner or exclusive
licensee of certain Rights (as defined below) relating to a Zydis® formulation
of selegeline hydrochloride (the “Product”) presently known as ZelaparTM,
which may have utility in the treatment of Parkinson’s disease and other
diseases or conditions.

 

(B)                                By an Option Agreement dated
18 June 2001, as amended by Deed of Variation dated 27 January 2003,
Amarin acquired an exclusive option for a transfer and assignment of such
Rights in the Territory in the Field, each as defined below.

 

(C)                                Elan and Amarin wish to vary
the terms of the said option, on the terms and conditions set out in this
Agreement.  On the date of entering into
this Agreement, the parties and certain affiliates of Elan have entered into an
Amended and Restated Master Agreement (the “Master Agreement”).

 

(D)                               Elan and Amarin, should Amarin
exercise its Option (as defined below), wish to enter into an Assignment Agreement
for the Rights in the Territory in the Field; and in the meantime, have
established a steering committee for the management of the completion of
development of Zelapar in the Territory.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants set forth
below, the parties hereby agree as follows:

 

1.                                           Rights Subject to Option; Information Provided to Amarin

 

1.1.                                   Definitions and Interpretation.  In this Agreement:

 

1.1.1                             “this Agreement” shall mean
this Amended and Restated Option Agreement, including its recitals, schedules
and exhibits.

 

2

 

1.1.2                             “Original Agreement” shall
mean the Option Agreement dated 18 June 2001 between Amarin and Elan, as
amended by Deed of Variation dated 27 January 2003.

 

1.1.3                             “Demandable Date” has the same
meaning as in the Master Agreement.

 

1.1.4                             “Elan Agreement(s)” has the
same meaning as in the Master Agreement.

 

1.1.5                             the singular includes the
plural and vice versa; references to words in one gender include references to
the other genders; and references to natural persons includes corporate bodies,
partnerships and vice versa;

 

1.1.6                             any reference to a Clause,
Section or Schedule, unless otherwise specifically provided, is to a
Clause, Section or Schedule of or to this Agreement;

 

1.1.7                             the headings in this Agreement
are inserted for convenience only and do not affect its construction or
interpretation;

 

1.1.8                             the expressions “include”,
“includes”, “including”, “in particular” and similar expressions shall be
construed without limitation.

 

1.2.                                   Rights Defined.  For the purposes of this Agreement, “Rights” shall mean all of
Elan’s right, title and interest in any data, information, or know-how
pertaining to, and any license or other rights in, the Product in the
Territory, now owned or controlled or hereafter acquired by Elan.  By way of illustration, the foregoing Rights
shall include but not be limited to (i) all of Elan’s rights under the License and
Supply Agreement between Elan or its affiliates and RP Scherer and Company, as
amended (the “Scherer Agreement”), as it pertains to the Territory, and (ii)
all clinical, preclinical and other data, protocols, inventory, work in
progress, regulatory rights or applications of any kind (such as a New Drug
Application (“NDA”) for the Product), contract rights, market research,
patent rights, patent applications, trademark rights, trademark applications,
and any know-how associated with the Product for use in the Territory.

 

1.3.                                   Information.  Elan shall continue to provide Amarin with continuing access to
and, as appropriate, copies or samples of materials it has within its
possession or control which are the subject of the Rights, together with all
additional information, data, patent or trademark disclosures and know-how
relating thereto now known to or hereafter developed or obtained by Elan during
the Option Period (as defined below) (the “Information”), all on the terms and subject
to the conditions of this Agreement.

 

2.                                           Evaluation by Amarin

 

2.1.                                   Right to Evaluate.  During the Option Period, Amarin shall have the continuing right
to review the Information as Amarin determines is necessary to evaluate its
interest in exercising the Option. 
During the Option Period, Amarin shall use the Information

 

3

 

solely for
that purpose.  Elan shall make the
Information available at its expense at 800 Gateway Blvd, South San Francisco,
California 94080.

 

2.2.                                   Return of Information if
Option not Exercised.  If this
Option is terminated or expires unexercised, Amarin shall return to Elan,
within thirty (30) days following the termination of the Option Period, all
Information of Elan and all copies thereof (or Amarin’s written confirmation
that it has destroyed all such copies), except for one complete set of
Information which Amarin may retain and use solely for compliance purposes
under the confidentiality requirements of this Agreement.

 

3.                                           Option to License

 

3.1.                                   Grant of Option.

 

(a)                             Elan hereby grants to Amarin
the following exclusive option (the “Option”), during the Option Period, to
obtain an exclusive transfer and assignment of the Rights, on the terms stated
below, to use, promote, distribute and sell the Product in the Territory, for
use in the field of human therapeutic treatment of any disease, condition or
disorder (the “Field”).  It is
understood and agreed that Elan retains all rights in the Product outside the
Territory which it now or hereafter may own or control.  For the purposes of this Agreement, the
Territory shall mean the United States.

 

(b)                            This Option is exercisable by
written notice to Elan received at any time during the Option Period.  If Amarin timely and properly exercises the
Option, the parties promptly shall negotiate in good faith and execute a
mutually acceptable definitive assignment agreement (the “Assignment Agreement”) which
shall incorporate the terms and conditions set forth in this Agreement and
shall include other terms and conditions which are reasonable and customary in
transactions of this nature.

 

(c)                             If the parties are unable to
agree upon the form of the Assignment Agreement within thirty days of the date
of the exercise of the Option, the parties shall submit any outstanding issues
to senior management of each party, who shall negotiate in good faith a
resolution.  If thirty days after such
submission to senior management issues remain unresolved, either party may
submit its proposed Assignment Agreement to an arbitrator in the San Francisco,
California area, selected under the then-current Commercial Rules of the
American Arbitration Association, who will select one of the two proposed
agreements, in its entirety.  The
arbitrator’s decision will be final, binding and enforceable in a court of
competent jurisdiction in San Francisco, California, which shall have exclusive
jurisdiction over the matter.

 

(d)                            Among other things, the
Assignment Agreement shall provide that Amarin shall assume and perform Elan’s
obligations under the Scherer Agreement as of the

 

4

 

date of the transfer and assignment of the Rights; that in the event of
a conflict between the Scherer Agreement and the Assignment Agreement, the
Scherer Agreement shall control; and that the parties shall cooperate
reasonably to enable the other to fulfill their respective remaining
obligations under the Scherer Agreement in and outside the Territory.

 

3.2.                                   Option Period.  The “Option Period” shall mean the period
commencing on the date of this Agreement and ending on the sooner of (a) the
date on which Elan or any of its Affiliates which are a party to the Master
Agreement have received a total between them of US$30,000,000 (thirty million
dollars) pursuant to Clauses [7 and 8] of the Master Agreement or otherwise expressed
to be in discharge of the Outstanding Amounts (as defined in the Master
Agreement) and (b) 31 December 2003.

 

3.3.                                   Option Fees.  In consideration for the Option granted to Amarin, Amarin has
paid to Elan a non-refundable, non-creditable option fee of One Hundred
Thousand Dollars ($100,000).  The option
fee, together with the payments to Elan under the Master Agreement, shall be
full consideration for the grant of the Option.

 

3.4.                                   Conditions for, and Deemed
Exercise of, the Option.  Amarin shall
be deemed to have exercised the Option (if available at the time in question)
upon providing the certification referred to in Clause [8.6] of the Master
Agreement; and no other exercise of the Option shall be permitted unless such
certification is made within the Option Period.  Amarin shall provide to Elan like certification upon execution of
the Assignment Agreement.

 

3.5.                                   Pursuit of New Drug
Application.  During the Option Period,
Elan shall subject to Section 4.4 be responsible for and shall use Commercially
Reasonable Efforts to diligently pursue the preparation, submission, acceptance
for filing and substantive review, and approval of an NDA for the Product with
the FDA; shall continue the prosecution and maintenance of all its patents,
patent applications, trademarks and trademark applications included in the
Rights; and shall consult with and consider the reasonable requests of Amarin
in connection with the above.  “Commercially
Reasonable Efforts” of a Party shall mean efforts consistent with
the exercise of its prudent business judgment as applied to other clinical,
regulatory and commercialization efforts for products of similar performance
and potential as would be undertaken in the pharmaceutical industry, but not
less than those efforts applied by that Party to other similar products of its
own product line.

 

4.                                           Steering Committee

 

4.1.                                   Formation of Steering
Committee.  The parties have formed a Zelapar Steering
Committee consisting of an equal number of Elan and Amarin members.  The chair of the Steering Committee shall
rotate between Elan and Amarin at least annually.  Elan and Amarin may each designate a proxy or substitute for its
members, and may substitute its members.

 

5

 

4.2.                                   Steering Committee Meetings;
Project Plan.  The Steering Committee will
meet no less than quarterly at a site to be mutually agreed, with minutes and
next quarter objectives to be distributed by the chair and approved; each party
will pay its own expenses in attendance and related activities.  A draft of the plan for completion of
development and approval of an NDA for the Product (the “Plan”) has been drafted by
Elan for review and approval, not to be unreasonably withheld, by Amarin.  The Plan contains milestone events and
timelines for review and approval by the Steering Committee.  Thereafter, the Plan may be amended only by
majority vote of the Steering Committee. 
Material deviations in executing the Plan must be approved in advance by
the Steering Committee.  It is understood
and agreed that Elan will perform and manage the day-to-day execution and
operations of the Plan.  Disputes not
resolved by the Steering Committee within fourteen (14) days shall be referred
to respective company senior management for good faith discussion and
resolution.

 

4.3.                                   Project Team.  In addition to the Steering Committee, Amarin shall be entitled
to attend and participate in and receive all materials provided to Elan’s
Project Team for Zelapar.

 

4.4.                                   Expenses.  The costs and expenses associated with the parties’ respective
performance of their obligations under this Agreement shall be borne as
follows:

 

(a)                             Elan will bear all costs and
expenses (internal and external) incurred prior to 31 December 2002 (the “Amendment
Date”) and associated with performing its obligations under this
Agreement, including without limitation Section 3.4 above, and the
implementation of the Plan prior to the Amendment Date.

 

(b)                            Subject to Section 4.5,
Amarin shall be responsible for all reasonable and verifiable Out Of Pocket
Costs after the Amendment Date, whether incurred by Elan, Amarin or a third
party where such Out Of Pocket Costs have been approved by the Steering
Committee and such Out Of Pocket Costs are not attributable to a negligent act
or omission or breach of the terms of this Agreement or the Assignment
Agreement by, or on behalf of, Elan.

 

(c)                             Each party shall be
responsible for its costs and expenses which are not Out Of Pocket Costs in
connection with (i) Elan’s activities pursuant to Section 3.4 and/or (ii)
the implementation of the Plan, incurred on or after the Amendment Date.

 

For the purposes of this Section 4.4,
“Out Of
Pocket Costs” shall mean all amounts payable to third parties,
including without limitation contractors, incurred on or after the Amendment
Date in connection with (i) Elan’s activities pursuant to Section 3.4
and/or (ii) the implementation of the Plan.

 

4.5.                                   Process and Audit.

 

(a)                                  Within 15 days of the end of
each calendar month following the Amendment Date, Elan and Amarin shall provide
to each other a statement

 

6

 

of their Out
Of Pocket Costs incurred in the previous calendar month.  Within 15 days thereafter, Amarin shall pay
to Elan an amount equivalent to such Out Of Pocket Expenses of Elan.

 

(b)                                 For the 90 day period
following the close of each calendar year, Amarin and Elan will, in the event
that the other party reasonably requests such access, provide each other’s
independent certified accountants (reasonably acceptable to the other party)
with access, during regular business hours and subject to the confidentiality
provisions as contained in this Agreement, to such party’s books and records
relating to Out Of Pocket Costs, solely for the purpose of verifying the accuracy
and reasonable composition of the calculations hereunder for the calendar year
then ended.

 

(c)                                  In the event of a discovery of
a discrepancy which exceeds five per cent (5%) of the amount due or charged by
a party for any period, the cost of such audit shall be borne by the audited
party; otherwise, such cost shall be borne by the auditing party.

 

5.                                           Confidentiality

 

5.1.                                   Confidential Information.  Except as otherwise provided in this Section 5, during the
Option Period, each party shall maintain in confidence all information of the
other party (including any Product samples) disclosed by the other party under
the Agreement (the “Confidential Information”), and shall not
use, disclose or grant the use of the Confidential Information of the other
party, except to its and its affiliates’ directors, officers, employees,
permitted assignees, agents, consultants, clinical investigators and
contractors, to the extent such disclosure is reasonably necessary in
connection with such party’s activities as expressly authorized by the
Agreement.  To the extent that
disclosure is authorized by the Agreement, prior to disclosure, each party
hereto shall obtain agreement of any such person or entity to hold in
confidence and not make use of the Confidential Information for any purpose
other than those permitted by the Agreement. 
Each party shall notify the other promptly of any unauthorized use or
disclosure of the other party’s Confidential Information.

 

5.2.                                   Permitted Disclosures.  The confidentiality obligations contained in Section 5.1
above shall not apply to the extent that (a) the receiving party (the “Recipient”)
is required to disclose Confidential Information by law, order or regulation of
a governmental agency or a court of competent jurisdiction, provided that the
Recipient shall provide to the disclosing party written notice and sufficient
opportunity to object to such disclosure or to request confidential treatment
thereof; or (b) the Recipient can demonstrate that (i) the Confidential
Information was public knowledge at the time of such disclosure by the
Recipient, or thereafter became public knowledge, other than as a result of
actions of the Recipient, its affiliates and licensees in violation hereof;
(ii) the Confidential Information was rightfully known to or independently
developed by the Recipient, its affiliates or licensees (as shown by its
written records) prior to the date of disclosure to the Recipient

 

7

 

by the other
party hereunder; or (iii) the Confidential Information was received by the
Recipient, its affiliates or licensees on an unrestricted basis from a source
unrelated to any party to the Agreement and not under a duty of confidentiality
to the other party.

 

5.3.                                   Terms of the Agreement and Use
of Name.  Except as otherwise provided in Sections 2.2
and 5.2 above, Elan and Amarin shall not disclose any terms or conditions of
the Agreement to any third party without the prior consent of the other party,
not to be unreasonably withheld.

 

6.                                           Representations, Warranties and Covenants

 

6.1.                                   Elan.  Elan represents and warrants that it has the full right and
authority, and has taken all necessary corporate action, to provide access to
the Information, grant Amarin the exclusive Option and, if exercised, enter
into the Assignment Agreement as set forth in this Agreement.  Elan warrants that Elan’s entering into and
performing this Agreement will not conflict with or create a default under any
agreement or obligation binding on Elan or any of the assets or property which
are the subject of this Agreement.  Elan
further warrants that:

 

(a)                             it is the sole owner or
exclusive licensee of the Rights (with full right to grant the option and
transfer and assign under any license agreement), without the necessity of
obtaining any consents of third parties other than Scherer, and that such
right, title and interest is unencumbered by any lien, charge, claim or
encumbrance of any kind; and

 

(b)                            it is the sole owner or
exclusive licensee (with the full right to sublicense under any license
agreement, without the necessity of obtaining any consents except Scherer) of
the patent(s) or patent applications in the Territory which claim
fast-dissolving drug delivery systems which Scherer owns or under which Scherer
is licensed with the right to sublicense (the “Patent Rights”); Exhibit A
contains a complete and accurate listing of the Patent Rights (plus certain
other patent rights outside of the Territory, to which Elan makes no
representation or warranty) as of the date of the Scherer Agreement, which Elan
has no reason to believe is inaccurate or incomplete; and to Elan’s knowledge,
the Patent Rights are unencumbered by any lien, charge, claim or encumbrance of
any kind.

 

(c)                             from now through the
expiration or termination of this Agreement or the exercise of the Option,
whichever first occurs, Elan shall not convey, sell, transfer, license, assign
or encumber any interest in any of the Rights, including without limitation the
Information or Patent Rights, or agree to do any of the foregoing.

 

6.2.                                   Amarin.  Amarin represents and warrants that it has the full right and
authority, and has taken all necessary corporate action, to enter into and
perform its obligations under this Agreement and, if the Option is exercised,
enter into the Assignment Agreement as set forth in this Agreement.  Amarin warrants that its entering into and
performing this

 

8

 

Agreement will
not conflict with or create a default under any agreement or obligation binding
on Amarin.  Following the exercise of
the Option, Amarin shall not sell, assign, transfer, convey, license or
otherwise substantially dispose of the Rights in and to the Product to a third
party (except as provided in Section 10.3 below) without the prior written
consent of Elan, not to be unreasonably withheld.

 

7.                                           Financial Terms; Milestone Payments, Royalty

 

7.1.                                   Milestone Payment.

 

7.1.1                             Amarin shall pay Elan a
one-time milestone payment based upon annual revenues from the sale of the
Product in the Territory of Ten Million Dollars ($10,000,000) payable within
sixty (60) days of the end of the first successive twelve months in which Net
Sales of the Product in the Territory in that twelve month period exceed twenty
million dollars ($20,000,000).

 

7.1.2                             Subject to Sections 7.1.6 and
7.1.7, the said payment shall be made in ordinary shares of £1 each in the
capital of Amarin (“Ordinary Shares”) and shall be calculated
as follows:

 

7.1.2.1                           in the event that the 30 day
trailing average (closing market mid-price) of the Amarin ADR on NASDAQ (the “Price
Average”) on the 30 trading days preceding the date the milestone is
payable is US$6 or less:

 

	
  No. of
  Amarin Ordinary Shares=

  	
  US$10,000,000

  	
   

  
	
   

  	
  the Price
  Average

  

 

7.1.2.2                           in the event that the Price
Average is in excess of US$6 then the number of Ordinary Shares to be issued to
Elan shall be 1,666,667.

 

7.1.3                             Elan shall be entitled to have
such shares, or American Depositary Receipts representing them (“ADRs”)
registered on NASDAQ or any other recognised securities exchange on which
Amarin’s shares or ADRs are traded.  For
that purpose, Elan and Amarin shall enter into a registration rights agreement
in substantially similar form to that certain registration rights agreement
dated as of 21 October 1998 between Amarin (sub nom Ethical Holdings
plc.) and Monksland Holdings B.V., as amended by that certain Amendment No. 1
to Registration Rights Agreement And Waiver between Amarin, Monksland Holdings
B.V. and Elan International Services, Ltd. dated 27 January 2003.  Amarin shall be responsible for all costs,
fees, duties and taxes whatsoever relating to such registration, including
depositary’s fees, NASDAQ fees, stamp duty and stamp duty reserve tax.

 

9

 

7.1.4                             The right to this payment and
associated rights will be freely assignable by Elan, whether or not in
association with the assignment of other rights in relation to the Product.

 

7.1.5                             As at the date of this
Agreement, each ADR represents one Ordinary Share.  The Assignment Agreement will take into account any change in
Amarin’s share or ADR structure prior to its execution, and will further
contain customary provisions regarding the preservation of value of this payment
in the event of stock splits, consolidations, takeovers, mergers, further share
issues and other events.

 

7.1.6                             Section 7.1.2 shall not
be effective (and Elan shall not receive such payment in Ordinary Shares)
unless and until Amarin receives all necessary shareholder, regulatory and
governmental consents and approvals to so so without material conditions,
including authority to issue and allot the Ordinary Shares, to disapply
pre-emption rights in respect of them, other shareholder approval and/or the
approval of the Panel of Takeovers and Mergers, London.

 

Amarin shall use its best commercial
efforts to secure all such consents and approvals and to maintain them in force
at all material times.

 

Without prejudice to the generality of the
foregoing, Amarin shall seek requisite approvals from its shareholders in the
course of each general meeting convened after the date of this Agreement.

 

If, at the time at which payment is to be
made, Amarin does not have all such consents and approvals, Amarin shall
instead pay to Elan in immediately available funds:

 

(a)                        if the Price Average is
US$6.00 or less, US$10,000,000 (Ten Million Dollars);

 

(b)                       if the Price Average is
greater than US$6.00, the Price Average multiplied by 1,666,667.

 

7.1.7                             In the event that, prior to
the said milestone payment falling due, there is a Change of Control in Amarin
(meaning mean circumstances where any third party shall, directly or
indirectly, acquire fifty percent (50%) or more of the then voting stock of
Amarin, or otherwise merge, consolidate or enter into any similar transaction
(or binding agreement in respect thereof) with Amarin in a transaction after
which Amarin is not the controlling entity):

 

7.1.7.1                           the said milestone payment
shall instead be payable in cash, by wire transfer of immediately available
funds (but without changing its due date);

 

10

 

7.1.7.2                           the amount of such cash
payment shall be the greater of (a) US$10,000,000 (Ten Million Dollars) and (b)
the product of (i) 1,666,667 and (ii) the acquisition price of Amarin’s
ADRs.  For this purpose the “acquisition
price” shall mean the value per ADR received by their holders generally,
including any contingent value actually realised by such holders in due course.

 

7.2.                                   Calculation. “Net Sales” shall mean the
aggregate gross sales of the Product by Amarin and its Affiliates (other than
sales among Amarin and its Affiliates) determined in accordance with UK
generally accepted accounting principles, consistently applied (“GAAP”),
less the following as specifically incurred for the Product: cash, trade or
quantity discounts; sales, use, tariff, or other excise taxes imposed upon
particular sales; transportation charges; and other credits or allowances,
including those granted on account of prices, adjustments, wholesaler
chargebacks, returns or rebates, if any are incurred or granted.  In connection with all amounts based upon
Net Sales payable to Elan pursuant to this Agreement, upon Elan’s request
Amarin shall provide documentation supporting any of the deductions to Net
Sales set forth above.  Any other sales
or transfers among Amarin or Amarin Affiliates shall not be included in the
definition of Net Sales.  In such cases
Net Sales shall be determined based on the invoiced sale price by the Affiliate
to the first third party trade purchaser, less the deductions allowed under
this definition.  Deductions to arrive
at Net Sales shall be determined in accordance with GAAP.  Elan shall have the right, upon reasonable
advance written notice to Amarin and during regular business hours, to inspect
the records of Amarin relating to the calculation of Net Sales hereunder.  Such inspection shall be conducted by an
independent third party auditor chosen by Elan and reasonably acceptable to
Amarin.  Such inspection shall be at Elan’s
cost, unless a discrepency in payment of more than 5% is found, in which case,
it shall be at Amarin’s cost.  The
parties shall reconcile any discrepancy found within 30 days of receipt of the
report of the auditor.  Elan’s audit
right, as described, shall survive any expiration or termination of this
Agreement, such that Elan’s right shall survive one (1) year beyond payment by
Amarin of the final payment to Elan owed hereunder.

 

7.3.                                   Royalty Payments.

 

7.3.1                             Subject to Clause 7.3.2, for
the first eight (8) Launch Years, Amarin shall pay Elan a royalty of twelve and
one-half percent (12.5%) of Net Sales during that period, payable no more than
forty-five (45) days from the end of each calendar quarter for which a payment
is due.

 

7.3.2                             Where Amarin makes one or more
payments to Elan under Clause 9 of the Master Agreement, each whole
US$1,000,000 of such payment (or payments in aggregate) shall reduce the
royalty payable to Elan by one half of one percent (0.5%) as from the calendar
quarter after the payment is made.

 

11

 

Accordingly, payment of the maximum amount
of US$10,000,000 under Clause 9 of the Master Agreement shall reduce the
royalty by 5%, from 12.5% to 7.5%.

 

7.3.3                             Amarin shall not be entitled
to reduce the royalty payable in this manner other than by payments required
under Clause 9 of the Master Agreement or with the prior written consent of
Elan.

 

7.4.                                   Payment Terms.  Payments shall not be refundable or subject to any future
performance obligations of Elan to Amarin and shall not be applicable against
any future services provided by Elan to Amarin.

 

8.                                           Termination

 

8.1.                                   The Option shall terminate
without further notice or action upon the expiration of the Option Period if
Amarin fails to timely and properly exercise the Option as provided in this
Agreement and during the Option Period.

 

8.2.                                   The Option shall terminate
without further notice or action in the event that Amarin has not paid to Elan
and its Affiliates the sum of US$30,000,000 (thirty million dollars) under
Clause 7 of the Master Agreement or otherwise expressed to be in discharge of
the Outstanding Amounts (as defined in the Master Agreement), on or before 31
December 2003.

 

8.3.                                   Amarin may terminate the
Option prior to expiration of the Option Period at any time only by  notifying
Elan in a writing (signed by the CEO or the President of Amarin) of its
decision not to exercise the Option and specifically referring to this
Agreement.

 

8.4.                                   Elan may terminate this
Agreement and the Option in the event that:

 

(a)                             Amarin breaches any Elan
Agreement and does not remedy it within thirty (30) days of written notice of
such breach from Elan specifying in reasonable detail the nature of the breach
and requesting the same to be remedied, the expiry of such thirty (30) day
period ;

 

(b)                            Amarin is unable to pay its
debts as they fall due, commences negotiations with any one or more of its
creditors (other than Elan and/or Elan Affiliates) with a view to the general
readjustment or rescheduling of its indebtedness or makes a general assignment
for the benefit of or composition with its creditors;

 

(c)                             Amarin takes any corporate
action or other steps are taken or legal proceedings are started for its
winding up (which are not dismissed or struck out within seven days of
presentation), or for its dissolution, administration or re-organisation (other
than in connection with a bona fide solvent restructuring) or for the
appointment of a liquidator, receiver, administrator, administrative receiver,
trustee or similar officer of it or of all or a substantial part of its
revenues and assets; or

 

12

 

(d)                            any execution or distress is
levied against, or an encumbrancer takes possession of, the whole or any
substantial part of, the property, undertakings or assets of Amarin or any
event occurs which under the laws of any jurisdiction has a similar or
analogous effect.

 

9.                                           Default

 

Subject
to Section 6.2 above, if either party fails to perform or fulfill at the
time and in the manner herein provided any material obligation or condition
required to be performed by such party (the “Defaulting Party”) hereunder,
and if such Defaulting Party fails to remedy such default within thirty (30)
days after written notice thereof from the non-defaulting party, the
non-defaulting party shall have the right to immediately terminate the
Agreement and the Option by written notice to the Defaulting Party, in addition
to any other rights it may have.

 

10.                                    Miscellaneous.

 

10.1.                             Notices. Any consent, notice or
report required or permitted to be given or made under the Agreement by  one
of the parties hereto to the other party shall be in writing, delivered
personally or by facsimile (and promptly confirmed by personal delivery, U.S.
first class mail or courier), U.S. first class mail or courier, postage prepaid
(where applicable), addressed to such other party at its address indicated
below, or to such other address as either party may notify the other in
accordance with this Section, and (unless otherwise provided in this Agreement)
shall be effective upon receipt by the addressee.

 

If to Amarin:

 

Amarin Corporation, plc

7 Curzon Street

London W1Y 7FL, UK

Attention: CEO

Facsimile: 
+44-207-499-9004

Attn:  Chief
Executive Officer

 

with a copy to:

 

Amarin Corporation, plc

Two Belvedere Place, Suite 330

Mill Valley, California  94941

Attention: 
Executive Vice President, Legal

Facsimile: 
415-389-4756

 

If to Elan:

 

Elan Pharma International Limited

c/o Elan International Services Ltd

102 St. James Court, Flatts,

Smiths FL04, Bermuda

Attention: 
Director

Facsimile: 
441-292-2224

 

13

 

10.2.                             Governing Law.  The Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the conflicts of law
principles thereof.

 

10.3.                             Assignment.  Subject to Elan’s rights of termination in Section 8.4 and
Section 9, neither party shall assign its rights or obligations under the
Agreement without the prior written consent of the other party hereto; provided,
however, that either party may, without such consent, assign the
Agreement and its rights and obligations hereunder to an affiliate, or in
connection with the transfer or sale of all or substantially all of its assets
or business, or in the event of its merger or consolidation or change in
control or similar transaction (again subject to Elan’s right in the event of
an Amarin Change of Control), and provided further that any permitted
assignee assumes in writing all obligations of its assignor under this
Agreement.

 

10.4.                             Waivers and Amendments.  No change, modification, extension, termination or waiver of this
Agreement shall be valid unless made in writing and signed by duly authorized
representatives of the parties.

 

10.5.                             Entire Agreement.  This Agreement, together with the exhibits hereto, embodies the
entire understanding between the parties and supersedes any prior understanding
and agreements between and among them respecting the subject matter, including
the Original Agreement.  There are no
representations, agreements, arrangements or understandings, oral or written,
between the parties relating to the subject matter of the Agreement which are
not fully expressed herein.

 

10.6.                             Counterparts.  The Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

 

10.7.                             Further Assurances.  The parties shall take any other actions, including without
limitation the execution and delivery of documents, as may be reasonable,
necessary or appropriate to carry out the intent of this Agreement.

 

14

 

[Signature Page: Zelapar
Amendment]

 

	
  SIGNED

  
	
   

  
	
   

  	
   

  
	
  For and on
  behalf of

  
	
  ELAN PHARMA INTERNATIONAL LIMITED

  
	
   

  
	
   

  
	
  SIGNED

  
	
   

  
	
   

  	
   

  
	
  For and on
  behalf of

  
	
  AMARIN CORPORATION PLC.

  

 

15

 

EXHIBIT A    PATENT RIGHTS

 

The remainder of this page is intentionally blank.  The following unnumbered pages constitute
Exhibit A.

 

16

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