Document:

exv10w1wi

Exhibit 10.1(i)

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF
THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

COLLABORATION AGREEMENT

BETWEEN

MILES INC.

AND

ONYX PHARMACEUTICALS, INC.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	CHAPTER 1
	 	 	2	 
	Article 1 — Defined Terms
	 	 	2	 
	1.1 “Advertising and Education\
	 	 	2	 
	1.2 “Advertising and Education Expense\
	 	 	2	 
	1.3 “Affiliate\
	 	 	2	 
	1.4 “Allocable Overhead Costs\
	 	 	3	 
	1.5 “Allowable Expenses\
	 	 	3	 
	1.6 “Analoging Program\
	 	 	3	 
	1.7 “Back-Up Compound\
	 	 	3	 
	1.8 “Clinical Development Period\
	 	 	3	 
	1.9 “Collaboration Compound\
	 	 	3	 
	1.10 “Collaboration Product\
	 	 	4	 
	1.11 “Collaboration Revenue\
	 	 	4	 
	1.12 “Control\
	 	 	4	 
	1.13 “Cost of Goods Sold\
	 	 	4	 
	1.14 “Co-Development\
	 	 	4	 
	1.15 “Co-Development Costs\
	 	 	5	 
	1.16 “Co-Development Plan\
	 	 	5	 
	1.17 “Co-Promote\
	 	 	5	 
	1.18 “Co-Promotion Program\
	 	 	5	 
	1.19 “Co-Promotion Product\
	 	 	5	 
	1.20 “Development Compound\
	 	 	5	 
	1.21 “Distribution Costs\
	 	 	5	 
	1.22 “Effective Date\
	 	 	5	 
	1.23 “Field\
	 	 	5	 
	1.24 “Field of Collaborative Research\
	 	 	6	 
	1.25 “Information\
	 	 	6	 
	1.26 “Joint Research and Development Committee” or “JRDC\
	 	 	6	 
	1.27 “Lead Structure\
	 	 	6	 
	1.28 “Marketing Plan\
	 	 	6	 
	1.29 “Marketing Profit or Loss\
	 	 	6	 
	1.30 “Miles Know-How\
	 	 	6	 
	1.31 “Miles Patents\
	 	 	6	 
	1.32 “Net Sales\
	 	 	7	 
	1.33 “Onyx Know-How\
	 	 	7	 
	1.34 “Onyx Patents\
	 	 	7	 
	1.35 “Patent\
	 	 	7	 
	1.36 “Preclinical Development Period\
	 	 	7	 
	1.37 “Pre-Marketing Activities\
	 	 	7	 
	1.39 “Post-Collaboration Compound\
	 	 	8	 
	1.40 “Ras Pathway\
	 	 	8	 
	1.41 “Ras Function\
	 	 	8	 
	1.42 “Regulatory Approval\
	 	 	8	 
	1.43 “Research\
	 	 	8	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

1

 

	 	 	 	 	 
	 	 	Page	 
	1.44 “Research Plan\
	 	 	8	 
	1.45 “Research Term\
	 	 	8	 
	1.46 “Royalty-Bearing Product\
	 	 	8	 
	1.47 “Selling and Promotion Expenses\
	 	 	9	 
	1.48 “Sublicense Revenues\
	 	 	9	 
	1.49 “Third Party\
	 	 	9	 
	1.50 “Third Party Royalties\
	 	 	9	 
	CHAPTER 2
	 	 	10	 
	Article 2 — Initial Payment And Board Representation
	 	 	10	 
	2.1 Purchase of Series D Preferred Stock.
	 	 	10	 
	2.2 Board Representation.
	 	 	10	 
	3.1 Joint Research and Development Committee.
	 	 	11	 
	3.2 Meetings of the JRDC.
	 	 	11	 
	3.3 Functions and Powers of the JRDC.
	 	 	11	 
	3.4 Obligations of Parties.
	 	 	12	 
	3.5 Project Leader.
	 	 	12	 
	3.6 General.
	 	 	12	 
	Article 4 - Licenses
	 	 	13	 
	4.1 Research Licenses.
	 	 	13	 
	4.2 Collaboration Product Commercialization Licenses.
	 	 	13	 
	4.3 Limitations on Exclusivity.
	 	 	13	 
	4.4 Royalty-Bearing Product Commercialization Licenses.
	 	 	14	 
	4.6 Onyx License After Research Termination.
	 	 	14	 
	CHAPTER 3
	 	 	15	 
	Article 5 — Collaborative Research Program
	 	 	15	 
	5.1 Program Management.
	 	 	15	 
	5.2 Decision Points During Research.
	 	 	15	 
	5.3 Research Efforts and Expenses.
	 	 	15	 
	5.4 Annual Plan and Budget.
	 	 	15	 
	5.5 Extension of Research Term.
	 	 	16	 
	5.6 Termination of Research with Substitution of New
Research Target.
	 	 	16	 
	5.7 Consequences of Research Substitution.
	 	 	16	 
	5.8 Termination of Research by Miles.
	 	 	17	 
	5.9 Key Employee Departure.
	 	 	17	 
	Article 6 — Specification of Research Field and Assays
	 	 	19	 
	6.1 Refinement of Field of Collaborative Research.
	 	 	19	 
	6.2 Restriction of the Field of Collaborative Research.
	 	 	19	 
	6.3 Specification of Ras Function Assay Standards.
	 	 	20	 
	Article 7 — Allocation of Research Tasks
	 	 	20	 
	7.1 Onyx Research Obligations.
	 	 	20	 
	7.2 Miles Research Obligations.
	 	 	20	 
	7.3 Independent Funded Research Of Onyx Subject to Buy-Back.
	 	 	21	 
	7.4 Miles Buy-Back.
	 	 	21	 
	7.6 Conduct of Studies.
	 	 	21	 
	Article 8 — Research Material and Information
	 	 	22	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

2

 

	 	 	 	 	 
	 	 	Page	 
	8.1 Rights In Materials
	 	 	22	 
	8.2 Acquisition of Third Party Technology.
	 	 	22	 
	Article 9 — Research Funding
	 	 	23	 
	9.1 Miles Financial Support.
	 	 	23	 
	9.2 Minimum Level of Financial Support.
	 	 	23	 
	9.3 Restriction on Government Support.
	 	 	23	 
	9.4 Manner of Payments.
	 	 	23	 
	9.5 Application of Funds; Reporting.
	 	 	23	 
	9.6 Research Activities After Research Term.
	 	 	24	 
	Article 10 — Research Reports
	 	 	25	 
	10.1 Information and Reports During Research.
	 	 	25	 
	10.2 Reports After Research Term.
	 	 	25	 
	CHAPTER 4
	 	 	26	 
	Article 11 — Co-Development
	 	 	26	 
	11.1 Scope of Development.
	 	 	26	 
	11.2 Preclinical Investigation and Development.
	 	 	26	 
	11.3 Synthesis of Preclinical Materials.
	 	 	26	 
	11.4 Selection of Collaboration Compounds for Co-Development.
	 	 	26	 
	11.5 Budget for Development.
	 	 	27	 
	11.6 Performance of Co-Development.
	 	 	27	 
	11.7 Funding of Co-Development.
	 	 	28	 
	11.8 Development Payments.
	 	 	28	 
	11.9 Development Diligence.
	 	 	29	 
	11.10 Collaboration Product Information.
	 	 	29	 
	11.11 Use of Information.
	 	 	29	 
	11.12 Relationship With Chiron Product Rights.
	 	 	29	 
	11.13 Manufacture of Clinical Materials.
	 	 	30	 
	Article 12 — Independent Development
	 	 	30	 
	12.1 Termination of Funding of Co-Development in Japan.
	 	 	30	 
	12.2 Termination of Funding of Co-Development Outside Japan.
	 	 	30	 
	12.3 No Refund of Co-Development Costs.
	 	 	30	 
	12.4 Independent Development.
	 	 	30	 
	CHAPTER 5
	 	 	32	 
	Article 13 — Commercialization of Collaboration Products
	 	 	32	 
	13.1 Miles Exclusive Rights Outside the United States.
	 	 	32	 
	13.2 Miles Marketing Plan.
	 	 	32	 
	13.3 Financial Projections and Budget.
	 	 	32	 
	13.4 Onyx Option To Co-Promote.
	 	 	32	 
	13.5 Onyx Notice of Intent to Co-Promote.
	 	 	32	 
	13.6 Co-Promotion Program.
	 	 	33	 
	13.7 Co-Promotion Sales Efforts.
	 	 	33	 
	13.8 Co-Promotion Costs.
	 	 	33	 
	13.9 Training Program.
	 	 	33	 
	13.10 Advertising and Promotional Materials.
	 	 	33	 
	13.11 Onyx Marketing.
	 	 	33	 
	13.12 Price Setting in the United States.
	 	 	34	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

3

 

	 	 	 	 	 
	 	 	Page	 
	Article 14 — Sales Responsibility
	 	 	34	 
	14.1 Sales and Distribution.
	 	 	34	 
	14.2 Responsibility.
	 	 	34	 
	14.3 Cost Allocations.
	 	 	34	 
	14.4 Allocation of Co-Promotion Costs.
	 	 	34	 
	Article 15 — Royalty-Bearing Products
	 	 	34	 
	15.1
Commercialization and Marketing of Royalty-Bearing
Products.
	 	 	35	 
	Article 16 — Compensation for Sales of Products
	 	 	35	 
	16.1 Determination and Allocation of Marketing Profit and
Loss with Respect to Sales Of Collaboration Products.
	 	 	35	 
	16.2 Royalty With Respect to Sales of Royalty-Bearing Products.
	 	 	35	 
	16.3 Special Distribution.
	 	 	36	 
	16.4 Research Termination.
	 	 	37	 
	16.5 Duration of Royalty Obligations: Royalty Step-Down.
	 	 	37	 
	16.6 Royalty for Post-Collaboration Compound Sales.
	 	 	37	 
	16.7 Royalty Payment Reports.
	 	 	37	 
	16.8 Royalty Offset.
	 	 	37	 
	16.9 Taxes.
	 	 	38	 
	16.10 Blocked Currency.
	 	 	38	 
	16.11 Foreign Exchange.
	 	 	38	 
	16.12 Payments to or Reports by Affiliates.
	 	 	38	 
	16.13 Sales By Sublicensees.
	 	 	38	 
	Article 17 — Information and Reports During Marketing
	 	 	39	 
	17.1 Adverse Drug Events.
	 	 	39	 
	17.2 Records.
	 	 	39	 
	Article 18 — Trademarks
	 	 	39	 
	18.1 Collaboration Product Trademarks.
	 	 	39	 
	18.2 Royalty-Bearing Product Trademarks.
	 	 	40	 
	18.3 Infringement Of Trademark.
	 	 	40	 
	18.4 Costs of Defense for Collaboration Product Trademarks.
	 	 	40	 
	Article 19 — Manufacturing and Supply
	 	 	40	 
	19.1 Commercial Supply of Collaboration Products.
	 	 	40	 
	19.2 Labelling.
	 	 	41	 
	19.3 Commercial Supply of Royalty-Bearing Products.
	 	 	41	 
	19.4 Supply Shortages.
	 	 	41	 
	CHAPTER 6
	 	 	42	 
	Article 20 — Inventions and Patents
	 	 	42	 
	20.1 Ownership of Research Products and Inventions.
	 	 	42	 
	20.2 Disclosure of Patentable Inventions.
	 	 	42	 
	20.3 Patent Prosecution.
	 	 	42	 
	20.4 Confidential Treatment.
	 	 	43	 
	Article 21 — Infringement
	 	 	43	 
	21.1 Infringement By Third Parties for Collaboration Compound.
	 	 	43	 
	21.2 Infringement by Third Parties for Royalty-Bearing Products.
	 	 	43	 
	21.3 Third Party Claims Against Collaboration Compound.
	 	 	44	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

4

 

	 	 	 	 	 
	 	 	Page	 
	21.4 Allocation of Expense; Collaboration Compound or Product.
	 	 	44	 
	21.5 Third Party Claims Relating to Royalty-Bearing Products.
	 	 	44	 
	Article 22 — Confidentiality
	 	 	45	 
	22.1 Confidentiality; Exceptions.
	 	 	45	 
	22.2 Authorized Disclosure.
	 	 	46	 
	22.3 Survival.
	 	 	46	 
	22.4 Termination of Prior Agreement.
	 	 	46	 
	22.5 Publications.
	 	 	46	 
	CHAPTER 7
	 	 	47	 
	Article 23 — Federal State Tax Characterization
	 	 	47	 
	23.1 Tax Partnership.
	 	 	47	 
	23.2 Tax Matters Partner.
	 	 	47	 
	23.3 Tax Returns.
	 	 	48	 
	23.4 Inconsistent Treatment of Partnership Items.
	 	 	48	 
	23.5 Tax Partnership Elections.
	 	 	48	 
	23.6 Characterization of Certain Payments and Activities.
	 	 	49	 
	23.7 Capital Accounts.
	 	 	49	 
	23.8 Tax Partnership Allocations.
	 	 	49	 
	23.9 Liquidation.
	 	 	51	 
	23.10 Internal Revenue Service Notices.
	 	 	51	 
	23.11 Tax Partnership Audits and Litigation.
	 	 	51	 
	Article 24 — Term and Termination
	 	 	51	 
	24.1 Term of Agreement.
	 	 	51	 
	24.2 Termination for Breach.
	 	 	51	 
	24.3 Termination for Other Reasons.
	 	 	52	 
	24.4 Acquisition of Onyx.
	 	 	52	 
	24.6 Accrued Rights: Surviving Obligations.
	 	 	53	 
	Article 25 — Dispute Resolution
	 	 	53	 
	25.1 Disputes.
	 	 	53	 
	Article 26— Representations and Warranties; Exclusivity
	 	 	54	 
	26.1 Representations and Warranties.
	 	 	54	 
	26.2 Performance By Affiliates.
	 	 	54	 
	26.3 Exclusivity; Noncompetition Within the Field of
Collaborative Research.
	 	 	54	 
	Article 27 — Products Liability and Indemnification
	 	 	55	 
	27.1 Indemnification for Sales of Royalty-Bearing Products.
	 	 	55	 
	27.2 Actions in Respect of Collaboration Products.
	 	 	55	 
	27.3 Indemnification for Negligence.
	 	 	56	 
	Article 28 — Miscellaneous
	 	 	56	 
	28.1 Assignment.
	 	 	56	 
	28.2 Consents Not Unreasonably Withheld.
	 	 	56	 
	28.3 Retained Rights.
	 	 	56	 
	28.4 Force Majeure.
	 	 	56	 
	28.5 Further Actions.
	 	 	56	 
	28.6 No Trademark Rights.
	 	 	56	 
	28.7 Notices.
	 	 	57	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

5

 

	 	 	 	 	 
	 	 	Page	 
	28.8 Waiver.
	 	 	58	 
	28.9 Severability.
	 	 	58	 
	28.10 Counterparts.
	 	 	58	 
	28.11 Press Releases.
	 	 	58	 
	28.12 Entire Agreement.
	 	 	58	 
	28.13 Governing Law.
	 	 	58	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A — Diagram of Collaboration
	 	 	 	 
	Exhibit B — Field of Collaborative Research
	 	 	 	 
	Exhibit C — Research Plan
	 	 	 	 
	Exhibit D — Measured Activity Qualifying as “ras Positive” Inhibition
	 	 	 	 

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

6

 

COLLABORATION AGREEMENT

     This Collaboration Agreement (the “Agreement”) is dated April 22, 1994, by and
between Onyx Pharmaceuticals, Inc., a California corporation having its principal place of
business in Richmond, California (“Onyx”), and Miles Inc., an Indiana corporation having
its principal place of business in Pittsburgh, Pennsylvania (“Miles”). Each of Miles and Onyx are
sometimes referred to herein as the “Party” or, collectively, as the “Parties.”

     In consideration of the covenants and promises contained in this Agreement, the Parties agree
as follows:

CHAPTER 1

DEFINITIONS

     Capitalized words used in this Agreement shall have the meanings ascribed in the following
definitions, unless otherwise stated or defined in the Agreement.

Article 1 — Defined Terms

     1.1 “Advertising and Education” means the advertising and promotion of Collaboration Products,
and related professional education, through any means, including, without limitation,

	 	(i)	 	advertisements appearing in journals, newspapers, magazines or
other media, including direct mail and electronic media,

	 	(ii)	 	seminars and conventions,

	 	(iii)	 	sample packages of Collaboration Products, promotional
literature, visual aids, three dimensional promotional items, and other selling
materials,

	 	(iv)	 	market research, and

	 	(v)	 	symposia and opinion leader development activities; provided,
however, that such term shall exclude direct sales force activity.

     1.2 “Advertising and Education Expense” means costs, [ * ] incurred by a Party or for its
account which are specifically identifiable to the Advertising and Education of a Collaboration
Product and consistent with the Marketing Plan.

     1.3 “Affiliate” means (i) with respect to Miles, any entity that directly or indirectly Owns,
is Owned by, or is under common Ownership with, it, and (ii) with respect to Onyx, any entity that
directly or indirectly is Owned by it. As used in Section 1.3, “Owns” or “Ownership” means direct
or indirect possession of at least 50% of the outstanding voting securities of a corporation or a
comparable equity interest in any other type of entity, or, where the laws of the

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

 

 

jurisdiction in which such entity operates prohibits the ownership by a Party of 50% , such
ownership shall be at the maximum level of ownership allowed by such jurisdiction.

     1.4 “Allocable Overhead Costs” means the overhead costs of the functions that directly support
an activity under this Agreement, as determined using the same allocation methods that the Party
incurring such costs uses throughout its operations. In all cases, Allocable Overhead Costs shall
exclude [ * ].

     1.5 “Allowable Expenses” means those expenses incurred subsequent to the receipt of Regulatory
Approval for marketing a Collaboration Product in a country and shall consist of:

          (i) Cost of Goods Sold,

          (ii) Distribution Costs,

          (iii) Advertising and Education Expenses,

          (iv) Selling and Promotion Expenses,

          (v) Third Party Royalties,

          (vi) [ * ]

          (vii) [ * ]

     1.6 “Analoging Program” means a program conducted under the Research to prepare, assay, and
analyze chemical analogs to one or more specified Lead Structures or other compounds identified by
the JRDC during the Research, or otherwise conducted pursuant to Section 7.3.

     1.7 “Back-Up Compound” shall have the meaning described in Section 11.4.

     1.8 “Clinical Development Period” means, with respect to each Product, the period of
performance of the clinical and non-clinical investigations and other work necessary to and
directly in support of obtaining Regulatory Approval for marketing a Product, commencing [ * ]
after a party has obtained regulatory approval to conduct human clinical trials [ * ].

     1.9 “Collaboration Compound” means, except as provided below, any composition of matter:

	 	(i)	 	that is discovered, identified or synthesized by or on behalf
of Onyx or Miles or an Affiliate of either of them, and is recognized for its
activity for inhibiting Ras Function as provided below, [ * ]; or
	 
	 	(ii)	 	as to which Onyx or Miles or an Affiliate of either of them
acquires rights from a Third Party, [ * ], and which is recognized for its
activity for inhibiting Ras Function as provided below, [ * ]. As used herein,
the

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

2

 

	 	 	 	activity of a composition of matter for inhibiting Ras Function will be
“recognized” if it satisfies the standard for a ras positive set forth in
Exhibit E, or such other specific activity in a particular assay or assays
within the Field of Collaborative Research established by the JRDC from time
to time pursuant to Section 6.3.

     Notwithstanding the foregoing, the term “Collaboration Compound” shall not include:

	 	(a)	 	any composition of matter marketed by Miles or an Affiliate of Miles as of the
Effective Date or as to which Miles or an Affiliate of Miles is conducting human
clinical trials or have approved the commencement of preclinical development (as
determined by the appropriate committee of Miles or an Affiliate of Miles), as of the
Effective Date;

	 	(b)	 	any composition of matter owned by Miles or Onyx or an Affiliate of either of
them that would become subject to this Agreement by reason of an expansion of the Field
of Collaborative Research after the Effective Date but as to which marketing rights
have been granted to a Third Party prior to such expansion; or

     (c) any composition of matter that is a Back-Up Compound after [ * ] following the end of the
Research Term.

     1.10 “Collaboration Product” means a Product as to which each Party has paid or is paying
one-half of the Co-Development Costs and is ready for commercialization pursuant to Article 13.
The term Collaboration Product excludes Royalty-Bearing Products.

     1.11 “Collaboration Revenue” means Net Sales of Collaboration Products plus Sublicense
Revenue.

     1.12 “Control” means possession of the ability to grant a license or sublicense as provided
for herein without violating the terms of any agreement or other arrangement with any Third Party.

     1.13 “Cost of Goods Sold” means

	 	(i)	 	the standard unit cost of Collaboration Products in final
therapeutic form, calculated in accordance with reasonable cost accounting
methods of Miles, consistently applied by Miles as a manufacturer, plus

	 	(ii)	 	[ * ] also calculated in accordance with reasonable cost
accounting methods of Miles, consistently applied by Miles as a manufacturer,
but excluding items referred to in the following sentence. Costs of Goods Sold
shall exclude [ * ].

     1.14 “Co-Development” means the clinical and non-clinical development of a Development
Compound into a Collaboration Product during the Preclinical and Clinical

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

3

 

Development Periods by
Miles and Onyx under the Co-Development Plan for the Development Compound worldwide excluding
Japan.

     1.15 “Co-Development Costs” means all costs and expenses, [ * ] identifiable to the
Co-Development of a Development Compound

	 	(i)	 	after having obtained regulatory approval to conduct human
clinical trials (Clinical Development Period) in the country in question,
within the JRDC budget approved by the Parties, and

	 	(ii)	 	for the Preclinical Development Period pursuant to Section
9.6(b).

Co-Development Costs include the cost of products manufactured for Co-Development activities as
determined in Section 11.13.

     1.16 “Co-Development Plan” means the world-wide plan prepared and managed by the JRDC and
approved by the Parties for the Preclinical and the Clinical Development Period of Development
Compounds as set forth in Section 11.1.

     1.17 “Co-Promote” means to promote jointly Co-Promotion Products through Miles, Onyx, and
their respective sales forces under a single trademark in the United States.

     1.18 “Co-Promotion Program” means the plan as set forth in Section 13.6 for Co-Promoting a
Co-Promotion Product in the United States.

     1.19 “Co-Promotion Product” means a Collaboration Product that is Co-Promoted and sold in the
United States.

     1.20 “Development Compound” means a Collaboration Compound selected by the JRDC, based upon
research results showing sufficient utility as a potential Product, for entry into the Preclinical
Development Period.

     1.21 “Distribution Costs” means the costs, [ * ] incurred by a Party or for its account,
specifically identifiable to the distribution of a Collaboration Product to a Third Party including

	 	(i)	 	handling and transportation to fulfill orders (excluding such
costs, if any, treated as a deduction in the definition of Net Sales),

	 	(ii)	 	customer services including order entry, billing and
adjustments, inquiry and credit and collection, and

	 	(iii)	 	[ * ] for the storage and distribution of Collaboration
Products.

     1.22 “Effective Date” means February 1, 1994.

     1.23 “Field” means the synthesis, discovery, use of and preclinical research upon
Collaboration Compounds and the clinical development, manufacture, use and sale of Products

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

4

 

for all human and animal therapeutic and/or prophylactic and/or diagnostic indications involving Ras
Pathway or Ras Function, subject to Section 11.12.

     1.24 “Field of Collaborative Research” means the specific programs, targets, and assays that
are selected for discovering inhibitors of Ras Pathway and Ras Function. As of the Effective Date,
the Field of Collaborative Research shall be as described on the attached Exhibit B, which shall be
amended by the Parties as the specific programs, targets, and assays within the Field of
Collaborative Research are modified and updated by the JRDC pursuant to Section 6.1. The Field of
Collaborative Research shall not include any molecular entities, programs, targets, or assays that
are not involved in the Ras Pathway or Ras Function.

     1.25 “Information” means information relating to the Field and/or the Field of Collaborative
Research, including, but not limited to, inventions, practices, methods, assays, know-how, test
data including pharmacological, toxicological and clinical test data, analytical and quality
control data, marketing, distribution, cost, sales, manufacturing, patent and legal data or
descriptions.

     1.26 “Joint Research and Development Committee” or “JRDC” means the committee described in
Section 3.1 of this Agreement.

     1.27 “Lead Structure” means a compound identified in the Research that meets a specific
minimum profile established by the JRDC and that is selected by the JRDC for entry into a program
conducted under the Research to prepare, assay, and analyze chemical analogs to one or more
specified Lead Structures or other compounds identified by the JRDC during the Research, or
otherwise conducted pursuant to Section 7.3.

     1.28 “Marketing Plan” means the plan for marketing and selling Collaboration Products,
described in Section 13.2.

     1.29 “Marketing Profit or Loss” means Net Sales of Collaboration Products plus Sublicense
Revenue less Allowable Expenses.

     1.30 “Miles Know-How” means Information which

          (i) Miles discloses to Onyx or an Affiliate of Onyx under this Agreement, and

          (ii) is within the Control of Miles.

Miles Know-How shall exclude Miles Patents.

     1.31 “Miles Patents” means all Patents owned or Controlled by Miles or an Affiliate of Miles
that claim or cover Collaboration Compounds, the manufacture or use of Collaboration Compounds, or
methods or materials useful for discovering, identifying, or assaying for Collaboration Compounds,
where such Patents cover inventions made prior to the first anniversary of the end of the Research
Term.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     1.32 “Net Sales” means gross receipts and any other consideration received by the selling
Party on account of sales of Products, less deductions of the following items:

	 	(i)	 	trade, quantity and cash discounts or rebates, actually allowed and taken,

	 	(ii)	 	credits or allowances given for rejection or return of
previously sold Product or outdated Product,

	 	(iii)	 	any tax or other governmental charge borne by the selling
Party other than income tax levied on the sale, transportation or delivery of
Product, and
	 
	 	(iv)	 	any charges for packing, handling, freight, insurance and duty.

     1.33 “Onyx Know-How” means Information which

	 	(i)	 	Onyx discloses to Miles or an Affiliate of Miles under this Agreement and
	 
	 	(ii)	 	is within the Control of Onyx.

     Onyx Know-How shall exclude Onyx Patents.

     1.34 “Onyx Patents” means all Patents owned or Controlled by Onyx or an Affiliate of Onyx
that claim or cover Collaboration Compounds, the manufacture or use of Collaboration Compounds, or
methods or materials useful for discovering, identifying, or assaying for Collaboration Compounds,
where such Patents cover inventions made prior to the first anniversary of the end of the Research
Term.

     1.35 “Patent” means

     (1) valid and enforceable Letters Patent in any and all countries relating to the Field
and/or the Field of Collaborative Research, including any extension (SPC), registration,
confirmation, reissue, continuation, division, continuation-in-part, re-examination or
renewal thereof, and

     (2) pending applications for any of the foregoing.

     1.36 “Preclinical Development Period” means the period of preclinical investigations and other
work performed on Development Compounds necessary to generate the data for clinical development as
set forth in Section 11.2.

     1.37 “Pre-Marketing Activities” means activities undertaken prior to Regulatory Approval in
preparation for the commercial launch of a Collaboration Product in a particular country, including
Advertising and Education, trademark prosecution and enforcement as provided in Article 18,
training as provided in Section
13.9, and pre-marketing clinical studies conducted to support the Collaboration Product and not as
part of an application for Regulatory Approval.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     1.38 “Product” means any pharmaceutical form or dosage of, or diagnostic product based upon, a
Collaboration Compound.

     1.39 “Post-Collaboration Compound” means any composition of matter synthesized, identified or
discovered by Onyx or Miles:

     (a) that is contained within a chemical genus as defined in any pending or issued claim
of any unexpired Miles Patent or Onyx Patent filed in [ * ] and as to which at least one
member of such chemical genus is a Collaboration Compound, and

     (b) that is recognized for its activity for inhibiting Ras Function, as defined in
Section 1.11, by Onyx or Miles during the [ * ] period after [ * ] of the end of the
Research Term pursuant to Section 9.6 (d) (at a royalty rate pursuant to Section 16.6).

     1.40 “Ras Pathway” means all molecular entities that are part of or that regulate signal
transduction through [ * ] ras. This includes but is not restricted to ras, [ * ]. Ras Pathway
also includes molecules that directly or indirectly regulate the aforementioned [ * ]. Ras Pathway
also includes [ * ].

     Ras Pathway shall not include (by way of example and not limitation) [ * ].

     1.41 “Ras Function” means [ * ]. Ras Function includes without restriction [ * ].

     1.42 “Regulatory Approval” means any approvals (including pricing and reimbursement
approvals), licenses, registrations or authorizations of any federal, state or local regulatory
agency, department, bureau or other government entity, necessary for the manufacture, use, storage,
import, transport or sale, of Products in a country.

     1.43 “Research” means all work performed by the Parties

          (a) within the Field of Collaborative Research during the Research Term; or

          (b) with respect to Collaboration Compounds pursuant to Section 9.6.

     1.44 “Research Plan” means the plan setting forth the research objectives and the Parties’
respective obligations in conducting the Research, as described in Section 5.1.

     1.45 “Research Term” means the period commencing on February 1, 1994 and continuing until
January 31, 1999, unless extended under Sections 5.5 or 5.6, or earlier terminated pursuant to
Section 5.8, 5.9, 24.2, 24.3 or 24.4.

     1.46 “Royalty-Bearing Product” means a Product

          (a) that was not selected for Co-Development by the JRDC and that was independently
developed by a Party pursuant to Section 12.4 (at a rate pursuant to Section 16.2(c));

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     (b) that is sold in a country in which one Party did not participate in paying its
entire one-half share of the Co-Development Costs in that country pursuant to Section 12.1
and 12.2 (at a rate pursuant to Section 16.2 (a) and (b) respectively); or

          (c) for which Miles declined to fund Research pursuant to Section 7.3 (at a rate pursuant to
Section 16.4).

     1.47 “Selling and Promotion Expenses” means costs, [ * ] incurred consistent with the budget
in the Marketing Plan, and specifically identifiable to the sales and/or promotion of Collaboration
Products to all markets and to the operation and maintenance of the sales personnel [ * ].

     1.48 “Sublicense Revenues” means all revenues received from Third Parties as consideration for
the sublicensing of the manufacture, use and/or sale of Collaboration Products.

     1.49 “Third Party” means any entity other than Onyx or Miles and their respective Affiliates.

     1.50 “Third Party Royalties” means royalties payable to a Third Party in respect of the sale
or manufacture of Collaboration Products.

* * * *

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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CHAPTER
2

OVERVIEW OF COLLABORATION

     Proteins and other effectors in the Ras Pathway are directly involved in control of cell
growth. Changes or mutations to components in the Ras Pathway have been shown to cause abnormal
cell growth, including certain cancers. Onyx has technology, materials, and expertise relating to
the modulation of Ras Function and to assays that can identify compounds having activities useful
in inhibiting Ras Function. Miles has an extensive library of chemical substances and natural
materials, and expertise in the research, development, and commercialization of pharmaceutical
compounds. The Parties desire to establish a broad collaboration in the Field to perform research
towards identifying and investigating substances that inhibit Ras Function and to develop and
commercialize substances identified in such process as pharmaceutical products for the treatment of
cancer and other human conditions and diseases. The Parties intend that this Agreement shall
establish such collaboration and determine the rights and obligations of each Party in conducting
all of the research, development, and marketing of products, and all other related activities,
under the collaboration. Attached as Exhibit A is a flowchart depicting in schematic form, the
various activities of the collaboration and the decision points in the progress of identifying,
researching, and developing Collaboration Products.

Article 2 — Initial Payment And Board Representation

     2.1 Purchase of Series D Preferred Stock. Miles agrees to purchase, and Onyx agrees (subject
to the last sentence of this paragraph) to sell, 6,750,000 shares of Onyx Series D Preferred Stock
at a purchase price of Two Dollars ($2.00) per share pursuant to a Stock Purchase Agreement of even
date herewith, with the execution and performance of such Stock Purchase Agreement and the closing
of such purchase and sale to occur within thirty (30) days after the execution of this Agreement.
Promptly following execution of this Agreement, the parties shall cooperate to effect the closing
of such transaction. The parties recognize that to effect such sale of stock, Onyx is required to
obtain certain stockholder consents, and the parties shall cooperate to make such modifications to
the form of Stock Purchase Agreement as such stockholders may reasonably request, provided that
Miles shall not be obligated to approve any modifications which it deems adverse in the reasonable
exercise of its sole discretion.

     2.2 Board Representation.

     (a) Subject to the provisions of paragraph (b) below, Miles shall be entitled,
commencing on the date hereof, to appoint a representative to serve on the Onyx Board of
Directors, with the Miles representative to be approved in advance by the Onyx Board of
Directors. If the Miles representative is unable to attend one or more meetings of the Onyx
Board of Directors, he may designate an alternative Miles representative acceptable to Onyx
to attend such meeting(s) in a nonvoting, observer capacity. All information received by
such individuals from Onyx shall be subject to the non-disclosure obligations of Article 22
of this Agreement. The expenses of such Miles representative associated with attendance at
Onyx Board of Directors meetings will be borne by [ * ].

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     (b) The rights of Miles under this Section 2.3 shall expire upon the later to occur of

     (i) the end of the Research Term, or, if the Parties then have Collaboration
Compound in clinical development, such later date on which the Parties do not have a
Collaboration Compound in clinical development, or

     (ii) such date on which Miles owns less than twelve and one-half percent
(12.5%) of the then outstanding capital stock of Onyx on an as-converted,
fully-diluted basis.

Article 3 — Management of Collaboration

     3.1 Joint Research and Development Committee. The collaboration between Miles, Onyx, and
their respective Affiliates under this Agreement shall be managed by a Joint Research and
Development Committee (the “JRDC”). The size of the JRDC may be determined from time to time;
initially it shall consist of six members, three each appointed by Onyx and Miles within ten days
after the Effective Date. Members of the JRDC shall be composed of senior officers or
representatives of each party authorized to make decisions with respect to matters within the scope
of the JRDC’s authority. An alternate member designated by a Party may serve temporarily in the
absence of a permanent member designated by such Party. Each Party shall appoint and replace its
representatives to the JRDC, as appropriate during the collaboration. The JRDC shall operate by
consensus. Any deadlock shall be referred to the designated executive officers of Miles and Onyx
pursuant to Article 25 of this Agreement.

     3.2 Meetings of the JRDC. The JRDC shall hold meetings at such times as shall be determined
by a majority of the membership of the Committee, at least once a quarter. Notice of meetings
shall be given 30 days in advance to each member, stating the date, time and place of such meeting
and describing the proposed agenda of items to be discussed at such meeting. Either Party may
place items on the proposed agenda. Responsibility for arranging meetings will alternate between
the Parties, with Onyx having responsibility for the first meeting. The JRDC may conduct meetings
in person or by telephone conference; shall keep minutes reflecting actions taken at meetings; may
act without a meeting if prior to such action a written consent thereto is signed by all members of
the committee; and may amend or expand upon the foregoing procedures for its internal operation by
unanimous written consent. At each committee meeting all members shall review and sign the
then-current version of Exhibit B, and the Committee will retain copies of all such signed versions
of Exhibit B generated during the term of the Agreement.

     3.3 Functions and Powers of the JRDC. The activities of the Parties under this Agreement
shall be supervised and managed by the JRDC. The JRDC shall perform the specific functions set
forth in Chapters 2-7 of the Agreement if not stated otherwise, and in addition shall perform the
following general tasks in managing the collaboration:

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     (a) determine the overall strategy for the collaboration in the manner
contemplated by this Agreement;

     (b) coordinate the activities of the Parties hereunder;

     (c) prepare the Annual Plan for the Research (defined in Section 5.4) for each year
during the Research Term, including modifications and amendments to the Research Plan;

     (d) review all work done under and results of the Research;

     (e) determine the scope of the Field of Collaborative Research and establish the assay
standards used to determine Collaboration Compounds, under Article 6;

     (f) review compounds under investigation in the Research for selection as Lead
Structures, and select Collaboration Compounds for Co-Development as Development Compounds;

     (g) approve any agreements with Third Parties to be made by either or both Parties
regarding the subject matter of this Agreement (except with respect to Royalty-Bearing
Products and as otherwise expressly provided in this Agreement); and

     (h) perform such other functions as appropriate to further the purposes of this
Agreement as determined by the Parties.

     3.4 Obligations of Parties. Onyx and Miles shall provide the JRDC and its authorized
representatives with reasonable access during regular business hours to all records, documents, and
Information relating to this collaboration which it may reasonably require in order to perform its
obligations hereunder, provided that if such documents are under a bona fide obligation of
confidentiality to a Third Party, then Onyx or Miles, as the case may be, may withhold access
thereto to the extent necessary to satisfy such obligation. During the Research Term, neither
party shall knowingly receive information which is relevant to the Field and/or the Field of
Collaborative Research under conditions which would preclude disclosure by reason of this Section
3.4.

     3.5 Project Leader. Each Party shall designate an overall project leader within ten days of
the execution of this Agreement. Such project leaders will be responsible for the day-to-day
worldwide coordination of the collaboration contemplated by this Agreement and will serve to
facilitate communication between the Parties relating to the collaboration. The project leaders
shall attend all meetings of the JRDC.

     3.6 General. In all matters related to the collaboration established by this Agreement, the
Parties shall be guided by standards of reasonableness in economic terms and fairness to each of
the Parties, striving to balance as best they can the legitimate interests and concerns of the
Parties and to realize the economic potential of the Products. In conducting

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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research, development, and commercialization activities under this Agreement neither Party shall prejudice
the value of a Product by reason of such Party’s activities outside of the Field.

Article 4 - Licenses

     4.1 Research Licenses.

          (a) Onyx hereby grants Miles and its Affiliates a fully paid-up, worldwide license, without
the right to sublicense, under the Onyx Patents and Onyx Know-How

               (i) to conduct the Research during the Research Term, and

               (ii) to conduct research and development of Products under Section 9.6 following the Research
Term, provided, however, in each case that Miles and its Affiliates may only practice the Onyx
Know-How and Onyx Patents that relate directly to the Field of Collaborative Research as defined at
the time of such use.

               Such license shall be exclusive except as to Onyx and its Affiliates.

          (b) Miles hereby grants Onyx and its Affiliates a fully paid-up, worldwide license, without
the right to sublicense, under the Miles Patents and Miles Know-How

               (i) to conduct the Research during the Research Term, and

               (ii) to conduct research and development of Products under Section 9.6 following Research
Term, provided, however, in each case that Onyx and its Affiliates may only practice the Miles
Know-How and Miles Patents that relate directly to the Field of Collaborative Research as defined
at the time of such use.

               Such license shall be exclusive except as to Miles and its Affiliates.

     4.2 Collaboration Product Commercialization Licenses.

          (a) Onyx hereby grants Miles and its Affiliates a worldwide, fully paid-up license, with the
right to grant sublicenses, under the Onyx Patents and the Onyx Know-How to develop, make, have
made, use, have used, sell and have sold Collaboration Products, subject to the terms and
conditions of this Agreement. Such license shall be exclusive except as to Onyx and its
Affiliates.

          (b) Miles and its Affiliates hereby grants Onyx a fully paid-up license in the United States,
without the right to grant sublicenses, under the Miles Patents and Miles Know-How to develop, use
and sell Collaboration Products, subject to the terms and conditions of this Agreement. Such
license shall be exclusive except as to Miles and its Affiliates.

     4.3 Limitations on Exclusivity.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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          (a) As used in Sections 4.1 and 4.2, a license that is “exclusive except as to” the granting
Party means that the Party granting the license shall not grant any other entity (other than its
Affiliates) any license under such intellectual property rights with the right to practice within
the licensed field, but that otherwise such Party retains all its rights of ownership in such
licensed rights, including without limitation the right to practice such property rights, subject
only to the license granted.

          (b) With respect to the Onyx Patents and Onyx Know-How that Onyx Controls pursuant to that
certain Technology Transfer Agreement between Onyx and Chiron Corporation dated April 24, 1992, as
amended (the “Chiron Agreement”), the exclusive licenses granted to Miles and its Affiliates by
Onyx under such Onyx rights pursuant to this Article 4 shall be exclusive or co-exclusive only to
the extent Onyx holds exclusive or co-exclusive rights under the Chiron Agreement.

     4.4 Royalty-Bearing Product Commercialization Licenses.

          (a) Onyx hereby grants Miles and its Affiliates an exclusive, royalty-bearing license, with
the right to grant sublicenses, under the Onyx Patents and the Onyx Know-How solely to develop,
make, have made, use, have used, sell and have sold Royalty-Bearing Products of Miles in such
countries where such products are deemed hereunder to be Royalty-Bearing Products, subject to the
terms and conditions of this Agreement.

          (b) Miles hereby grants Onyx and its Affiliates an exclusive, royalty-bearing license, with
the right to grant sublicenses, under the Miles Patents and Miles Know-How solely to make, have
made, use, have used, sell and have sold Royalty-Bearing Products of Onyx in such countries where
such products are deemed hereunder to be Royalty Bearing Products, subject to the terms and
conditions of this Agreement.

     4.5 Know-How Licenses Following The Research Term. Each Party hereby grants the other Party
and its Affiliates a non-exclusive, world-wide, fully paid-up license to use the Know-How of the
Party granting such license for any purpose relating to the Ras Pathway or Ras Function.

     4.6 Onyx License After Research Termination. Miles hereby grants Onyx and its Affiliates an
exclusive royalty-bearing, worldwide license (the “Termination License”), with the right to grant
sublicenses, under the Miles Patents, and Miles Know-How at a rate pursuant to Section 16.4 solely
to discover and develop substances with activity in the Field of Collaborative Research and to
make, use and sell such substances; provided, however, that this Termination License may be
exercised by Onyx only in the event that Miles terminates the Research on or before [ * ] under
Section 5.6, 5.7 or 5.8. In the case of termination of Research and substitution under Sections
5.6 and 5.7, this license covers the Field of Collaborative Research as defined prior to such
substitution.

* * * *

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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CHAPTER 3

RESEARCH

Article 5 — Collaborative Research Program

     5.1 Program Management. Miles and Onyx will conduct the Research on a collaborative basis
with the goal of discovering, synthesizing, and performing preclinical investigations on
Collaboration Compounds for clinical development into Products as rapidly as possible. The
Research will be supervised and managed by the JRDC. The Parties have agreed to the two-year
Research Plan attached as Exhibit C. The Parties will update the Research Plan for subsequent
years of the collaboration at least 120 days before the beginning of each calendar year. The
Research Plan also may be amended and updated by the JRDC at any time in view of the results of the
Research performed up to that time.

     5.2 Decision Points During Research. During the Research, the JRDC shall direct compounds and
other materials, including Collaboration Compounds, through the program of research investigation
and preclinical development work towards selection of Collaboration Compounds for Co-Development as
Development Compounds. The initial stage of this process shall be the development of assays and
the screening of compounds to determine which compounds should be selected as Lead Structures.
Identified Lead Structures will be further investigated, including performing Analoging Programs on
such Lead Structures, and performing needed pharmacology, drug optimization, further chemistry
investigation, and toxicology and pharmacokinetic investigations, as appropriate. Compounds
resulting from an Analoging Program will be further investigated under the Research to determine
which of such compounds are Collaboration Compounds. The Research is intended to generate results
and data sufficient to determine which compounds should be selected as Development Compounds for
preclinical development investigation (see Section 11.2).

     5.3 Research Efforts and Expenses. Each of the Parties will work diligently to carry out the
Research, to cooperate with the other Party in the conduct of the Research, and to achieve the
objectives of the Research, and shall maintain and utilize scientific staff, laboratories, offices
and other facilities consistent with such undertaking. Specific funding for performing the
Research is provided in Article 9. Each Party shall bear any of its own expenses incurred in
connection with the Research not provided for in Article 9 or otherwise in this Agreement.
Management of personnel, including their compensation and evaluation, will be the responsibility of
the Party which employs or engages such personnel.

     5.4 Annual Plan and Budget. At least 120 days prior to the beginning of a new calendar year
during the Research Term, the JRDC shall agree upon and provide to the Parties a plan (the “Annual
Plan”) setting forth each Party’s research tasks and goals under the Research for that year and
setting a budget for such Research.
The Parties shall approve the budget in the Annual Plan, with such changes as they deem appropriate
and mutually approve.

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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     5.5 Extension of Research Term. The Parties may agree to extend the Research Term by mutual
consent on such terms and conditions as the Parties may then agree.

     5.6 Termination of Research with Substitution of New Research Target. If prior to two and
one-half years after the Effective Date Miles determines that the program of Research on inhibition
of Ras Function is unlikely to prove successful in identifying products useful for treating cancer
and/or other hyperproliferative diseases, Miles may elect to substitute, as of February 1, 1997,
another Onyx research program in the field of oncology, if such program remains available for
collaboration, in place of the research on inhibition of Ras Function in the Research under this
collaboration. Miles may effect such substitution by giving Onyx at least six months written
notice, to be effective on February 1, 1997. Upon the effective date of such notice, the Onyx
research program in oncology covered by such notice shall be substituted into the collaboration
covered by this Agreement in the place of the then-existing Field of Collaborative Research. The
Parties shall meet in good faith to agree on a suitable amendment to this Agreement in order to
reflect such substitution, including by way of example revising the definitions of Research, Field,
Field of Collaborative Research, Collaboration Compound, and Post Collaboration Compound and
developing a new Research Plan, in order to conform this Agreement with the new research program
substituted by Miles. For purposes of determining the Research Term and the funding of the
Research with respect to such substituted target, upon the election of substitution by Miles under
this Section 5.6, the new Research shall be deemed to commence on February 1, 1997, with a new
five-year Research Term and including an annual $5,000,000 Research payment for each year of such
five year term.

     5.7 Consequences of Research Substitution. If Miles terminates, pursuant to Section 5.6, the
existing research project under the Research and substitutes another Onyx research program in its
place, then, after the effective date of the Miles notice of substitution:

     (i) Miles shall no longer have any rights under Onyx Patents or Know-How, or with
respect to the Field of Collaborative Research as defined prior to such substitution,

     (ii) Onyx may thereafter exercise the Termination License under Miles Patents and
Know-How, and granted to Onyx under Section 4.6;

     (iii) Miles shall promptly return to Onyx or destroy all copies of Onyx Information and
any other confidential information belonging to Onyx (except to the extent such information
relates to the Field of Collaborative Research as newly defined after the substitution). [
* ] shall use due diligence in prosecuting and maintaining all [ * ] Patents arising from
inventions in the Research. In the event [ * ] declines to prosecute or maintain any such [
* ] Patent, [ * ] shall give [ * ] notice of such decision at least [ * ] prior to any
deadline or due date with respect to such patent. [ * ] shall then have the right to prosecute and maintain any such [ * ] Patent at its own expense. [ * ] shall authorize,
transfer and assign to [ * ] the right to enforce and defend all such [ * ] Patents within
the Field of Collaborative Research. [ * ] agrees to perform all acts deemed necessary or
desirable by [ * ] to permit and assist [ * ], at [ * ] expense, in enforcing its rights

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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throughout the world in the [ * ] Patents arising from inventions in the Research and other
intellectual property rights arising from this collaboration. Such acts may include, but
are not limited to, execution of documents and assistance or cooperation in the enforcement,
including litigation or other legal proceedings, of applicable patents.

     5.8 Termination of Research by Miles. Except for termination of the Agreement under Section
23.2, Miles may terminate the Research only

     (a) on the date [ * ] after the Effective Date, by giving Onyx at least [ * ] written
notice in advance of such termination, or

     (b) pursuant to the provisions of Section 5.9.

If Miles terminates the Research hereunder, then:

	 	(i)	 	Onyx may thereafter exercise the Termination License under Miles Patents and
Know-How granted to Onyx under Section 4.6;

	 	(ii)	 	Miles shall promptly return to Onyx or destroy all copies of Onyx Information
and any other confidential information belonging to Onyx; and

	 	(iii)	 	this Agreement, including all licenses granted to Miles under Article 4, shall
terminate effective as of such termination, subject to the survival of this Section,
Section 4.6, and the portions of this Agreement referred to in Section 24.5.

[ * ] shall use due diligence in prosecuting and maintaining all [ * ] Patents arising from
inventions in the Research. In the event [ * ] declines to prosecute or maintain any such [ * ]
Patent, [ * ] shall give [ * ] notice of such decision at least [ * ] prior to any deadline or due
date with respect to such patent. [ * ] shall then have the right to prosecute and maintain any
such [ * ] Patent at its own expense. [ * ] shall authorize, transfer and assign to [ * ] the
right to enforce and defend all such [ * ] Patents within the Field of Collaborative Research. [ *
] agrees to perform all acts deemed necessary or desirable by [ * ] to permit and assist [ * ], at
[ * ] expense, in enforcing its rights throughout the world in the [ * ] Patents arising from
inventions in the Research and other intellectual property rights arising from this collaboration.
Such acts may include, but are not limited to, execution of documents and assistance or cooperation
in the enforcement, including litigation or other legal proceedings, of applicable Patents.

     5.9 Key Employee Departure. If prior to two and one-half years after the Effective Date Dr.
Frank McCormick or Dr. Peter Myers ceases to be employed by Onyx, Onyx shall use diligent efforts
to find a research scientist to replace the departed employee. If Onyx is unable. to find such
replacement who is reasonably satisfactory to Miles within 180 days after Dr. McCormick or Dr.
Myers ceases to be employed by Onyx, then Miles may terminate this Agreement by giving Onyx 60 days
written notice.

     If Miles terminates the Agreement under this Section, Onyx may thereafter exercise the
Termination License under Miles Patents and Know-How granted to Onyx and its Affiliates

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
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under Section 4.6. In such a case, however, the Termination License is non-exclusive, and at a rate
pursuant to Section 16.4.

     After termination Miles may continue the preclinical research and development work in the
Field of Collaborative Research as defined at the date of termination. For this reason, Onyx
hereby grants to Miles and its Affiliates a non-exclusive, royalty-bearing worldwide license under
the Onyx Patents and Know-How, solely to discover and develop substances with activity in the Field
of Collaborative Research and to make, use and sell such substances, at a royalty rate pursuant to
Section 16.4.

     Such work by Miles after termination is deemed to be work under Section 7.3 such that Onyx
provides Information and Miles provides reports on results, may elect to prepare and file an IND
and to proceed with clinical trials, etc. Compounds thus independently investigated and developed
by Miles shall be deemed Royalty-Bearing Products of Miles; however, Onyx has an option for
buy-back pursuant to the provisions of Section 7.4. This paragraph applies only to compounds that
were physically available at the time of termination.

* * * *

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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Article 6 — Specification of Research Field and Assays

     6.1 Refinement of Field of Collaborative Research. In executing this Agreement, the Parties
recognize that scientific understanding of Ras Function is still developing and will continue to
develop during the term of the Research. Further, the Parties recognize that a principal objective
of the Research, particularly in its early stages, is to develop further assays to identify
compounds which may be useful for inhibiting Ras Function. The JRDC shall periodically review the
definition of the Field of Collaborative Research and determine, with specific reference to
programs, targets, and assays then in existence or under development, which programs, targets, and
assays shall comprise the best areas for Research for discovering inhibitors of Ras Function. Such
programs, targets, or assays shall then be selected and included in the Field of Collaborative
Research, and any programs, targets, or assays determined no longer to be useful in identifying
compounds that inhibit Ras Function shall be removed from the Field of Collaborative Research by
the JRDC. Any changes to such Field of Collaborative Research by the JRDC shall be effected by
modification of the attached Exhibit B. In the event the JRDC expands the Field of Collaborative
Research to include other programs, targets, or assays, such expansion shall not affect any rights
or obligations of either Party with respect to Third Parties pursuant to agreements entered into
prior to such expansion. If Miles elects to substitute a different Onyx cancer program for the Ras
Function inhibition program, pursuant to Section 5.6, this Field of Collaboration Research will be
modified to reflect the new programs, targets, and assays included in the program covered by such
substitution, including revision of the attached Exhibit B.

     6.2 Restriction of the Field of Collaborative Research. If, under Section 6.1, the JRDC
removes certain programs, targets, or assays from the definition of Field of Collaborative
Research, then the licenses under the Patents and Know-How relating to such programs, targets, or
assays granted under Article 4 shall then terminate with respect to such programs, targets or
assays. Further, if one Party but not the other had a research program with respect to such
programs, targets, or assays prior to their inclusion in the Field of Collaborative Research (and
so advised the JRDC prior to such inclusion), such Party shall have the option

     (a) to acquire the entire right, interest, and title in and to all know-how and Patents
jointly developed by the Parties during the course of the Research that relate directly to
such programs, targets, or assays removed by the JRDC from the Field of Collaborative
Research; and

     (b) to obtain an exclusive, worldwide license to all know-how and Patents developed
solely by the other Party during the course of the Research that relate directly to such
programs, targets, or assays removed by the JRDC from the Field of Collaborative Research,
solely for purposes of developing and making, using and selling products based upon such
programs, targets and assays. Such option shall be exercisable for [ * ] after such JRDC
decision. If [ * ] is the Party exercising such option, [ * ] shall pay [ * ] for all
amounts expended in the Research directly for developing or discovering such
jointly-developed know-how, Patents, and inventions covered by the option

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
EXCHANGE ACT OF 1933, AS AMENDED.

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exercised, and shall pay [ * ] a commercially reasonable royalty up to [ * ] negotiated in
good faith for the exclusive license. If [ * ] exercises such option, it shall [ * ].

     6.3 Specification of Ras Function Assay Standards. The JRDC shall specify the assays and the
level of measured activity under such assays in the Field of Collaborative Research that shall be
required by the Parties to establish that a specific compound exhibits a sufficient level of
activity in inhibiting Ras Function to qualify as a Collaboration Compound under Section 1.11. The
initial standards of measured activity for identifying a Collaboration Compound are set forth on
Exhibit E. It is anticipated that the specific assays and required level of activity established
hereunder by the JRDC for qualifying compounds as Collaboration Compounds under Sections 1.11 may
change by JRDC decision during the Research, as the Parties improve and refine their understanding
of Ras Function. Such changes shall be reflected by amendment of Exhibit E and shall take effect
on the date the amended Exhibit E is signed by both Parties. The Parties understand that if a
compound or material shows activity in assays within the Field of Collaborative Research, such
activity may support the Parties conducting further Research on such compound within the Field of
Collaborative Research, but such compound shall not qualify as a Collaboration Compound unless it
meets the requirements established by the JRDC under this Section 6.3.

Article 7 — Allocation of Research Tasks

     7.1 Onyx Research Obligations. Onyx shall be primarily responsible for performing the
biological research components of the Research Plan, including investigation of new targets,
development of assays, and production of assay reagents. Onyx shall perform such primary screening
of compounds as the JRDC determines is appropriate. Such primary screening shall include compounds
and materials in the Miles and the Onyx library and collection selected by the JRDC for screening
by Onyx. To the extent assays in the Field of Collaborative Research are appropriate for
large-scale, high throughput primary screening of compounds, Miles shall perform such screening,
with Onyx’ assistance in transferring needed assay reagents and Onyx Information. Onyx will have a
right to perform [ * ] in the first year of the Research Term with [ * ], in the second year with [
* ] and starting in the third year of the Research Term, up to [ * ] of the scientific full-time
equivalents (“FTEs”) funded by Miles at Onyx during the remainder of the Research Term under the
Miles funding. Onyx shall also have the right throughout the Research Term to perform [ * ] in the
Field of Collaborative Research [ * ]. Onyx also will perform [ * ] and will assist Miles in
performing preclinical investigations on Development Compounds in the Preclinical Development
Period, at Miles’ reasonable request. Onyx shall provide the number of FTEs to conduct the
Research as specified by the JRDC under the Annual Plan. Onyx may increase the size of its total
research team beyond that set forth in the Annual Plan, but shall not receive any payment under
Article 9 for any increase in Research effort which was not approved in advance by the JRDC.

     7.2 Miles Research Obligations. Miles shall provide to Onyx samples of a sufficient number
and range of materials from its library and collection, for screening by Onyx under the Research,
to enable Onyx to screen the
Miles prototype library, which is representative of the complexity and diversity of the Miles
library and collection. Onyx shall have the right to screen

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any material from Miles where sampling or other data indicates likelihood of activity in the Field. Miles shall perform all pharmacology
research and such biological research as the JRDC may request. Miles shall perform the chemistry
required during the Research Term, except as performed by Onyx under Section 7.1. Onyx shall
provide Miles such information and materials relating to the Onyx assays as are necessary for Miles
to perform its chemistry obligations under the Research. Miles shall also perform such primary
screening of compounds as the JRDC determines is appropriate using assays within the Field of
Collaborative Research that can be utilized efficiently in large-scale, high throughput screening.

     7.3 Independent Funded Research Of Onyx Subject to Buy-Back. Onyx may perform independent
preclinical research and development work pursuant to Section 12.4 during the Research Term, or
pursuant to Section 9.6 after the Research Term, [ * ]. In those events, upon request by Onyx,
Miles shall provide all Information and materials reasonably requested by Onyx to assist in such
preclinical research and development work. During such work, Onyx shall provide Miles regular
reports on results, including any animal testing data and toxicology. Onyx may elect to prepare
and file an IND and to proceed with clinical trials and Clinical Development Period work. Onyx
shall deliver to Miles a copy of any IND packages. Subject to Miles’ rights under Section 7.4,
compounds independently investigated and developed by Onyx pursuant to this Section shall be deemed
Royalty-Bearing Products of Onyx. Research performed by Onyx following the Research Term shall not
be subject to buy-back rights of Miles except as provided in this Section 7.3 or Section 7.4, 7.5
or 9.6(b).

     7.4 Miles Buy-Back. If under Section 7.1 Onyx performs [ * ] chemistry or under Section 7.3
Onyx performs independent preclinical research and development work, Miles shall have an option to
reestablish the cooperation with Onyx in preclinical research and development work. Such option
may be exercised for any compound deriving from such preclinical research and development work at
any time up until 30 days following [ * ] by written notice to Onyx. If Miles exercises such
option, Miles shall pay Onyx, within [ * ] following notice of exercise of the option, an amount
equal to [ * ] of Onyx’ expenses in performing such independent preclinical research and
development work on such compound, through the date of the notice. In such a case any license
pursuant to Section 4.6 shall terminate and such compound shall be a Collaboration Compound. If
Miles does not exercise such option, such compounds thereafter shall be deemed Royalty-Bearing
Products of Onyx, and Onyx shall have the exclusive right to develop and market such compound under
Section 12.4.

     7.5 Collaboration Compounds Developed After A Termination Under Section 5.9. In the event
that following a termination under Section 5.9, either Party performs preclinical development of a
Collaboration Compound (including for this purpose any compound that was physically available at
that time and is later determined to satisfy the criteria of a Collaboration Compound) that had
been identified prior to such termination, the other Party shall retain buy-back rights to
reestablish a collaboration with respect to such Collaboration Compound under the terms and
conditions of Section 7.4.

     7.6 Conduct of Studies. All work and investigations done in connection with the Research
shall be carried out in compliance with any federal, state or local laws, regulations, or

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guidelines governing the conduct of research at the site where such work is being conducted. Each
Party agrees to provide the other with all safety and other handling information and instructions
available to the disclosing Party relating to all materials transmitted to the other Party
hereunder.

Article 8 — Research Material and Information

     8.1 Rights In Materials.

     (a) Any compounds or other materials that are tested in the Research but do not become
Collaboration Compounds shall remain the sole and exclusive property of the Party that
brought such materials to the collaboration, and the other Party shall have no rights
therein, except as set forth in Section 8.1(c).

     (b) Compounds synthesized in an Analoging Program shall be owned by the Party who
conducted the Analoging Program. If any compound generated under an Analoging Program is
discovered, at any time, to be a Collaboration Compound, then such Collaboration Compound
may be commercialized only as provided hereunder.

     (c) Miles shall have the right, exercisable until [ * ] after the end of the Research
Term, to screen in any of Miles’ assays or screens any compound made by Onyx under an
Analoging Program [ * ]. If Miles desires to commercialize any such compound identified in
such screening as having pharmaceutical utility, Miles shall give Onyx written notice prior
to [ * ] after the end of the Research Term, specifying the compound and the proposed
indication to be developed. Thereafter, the Parties will meet in good faith to negotiate an
exclusive license agreement, including a commercially reasonable royalty and requirement of
diligence, under Onyx’ rights in such compound for such commercialization. The royalty
shall only be paid if and as long as such compound is covered by a valid claim of an Onyx
Patent. At [ * ] after the end of the Research Term, all rights to commercialize compounds
made by Onyx under such an Analoging Program shall return solely and exclusively to Onyx,
except with respect to any such compounds for which Miles gave prior written notice
hereunder. Miles agrees to notify Onyx promptly upon its determination at any time that it
no longer is interested in screening or commercializing any particular compound or compounds
made by Onyx under an Analoging Program. All rights in such compound or compounds then
shall be wholly owned by Onyx, and Miles’ option to screen with respect to such compound or
compounds shall immediately expire.

     8.2 Acquisition of Third Party Technology. If during the Research Term either Party becomes
aware of any technology (including compounds) of a Third Party that would be valuable to the
discovery, development or commercialization of Collaboration Compounds or Products, the Party will
provide such information to the JRDC. Within 60 days of such notification, the JRDC will determine
whether that technology should be brought into the Research. In the event that
acquisition of any Third Party technology would result in payment of royalties or other license
fees to a Third Party that would [ * ], then the Parties shall decide jointly whether to acquire
such technology. No consent shall be required with regard to any

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license for which a Party bears
the entire economic burden, and which does not otherwise impair such Party’s performance under the
Agreement.

Article 9 — Research Funding

     9.1 Miles Financial Support. Miles shall provide financial support for Onyx’ Research efforts
during the Research Term as set forth in each Annual Plan. Such support shall be provided for [ *
] scientific full-time equivalents (FTEs) annually over 5 years initially at the rate of [ * ] per
calendar year for each Onyx scientific FTE working on the Research under the Annual Plan, plus such
Third Party expenses to assist Onyx in performing the Research (such as in vivo animal studies) as
may be approved by the JRDC. Commencing with the calendar year 1995, such reimbursement rate shall
be adjusted each January 1 for inflation based on changes in the Bureau of Labor Statistics
Consumer Price Index for Urban Wage-earners — San Francisco/Oakland from September 1993 to the
September immediately preceding such January 1. Upon the request of either Party during the
Research Term, the JRDC shall review the actual costs of Onyx incurred in connection with the
Research. Any such adjustment in the reimbursement rate shall have prospective effect only.

     9.2 Minimum Level of Financial Support. The minimum amount payable by Miles under Section 9.1
shall be US$[ * ] in the first year of the Research Term, US$[ * ] in each of the next [ * ] years
of the Research Term, and [ * ] in the [ * ] year of the Research Term. These amounts reflect the
total financial support for the [ * ] FTE annually over 5 years.

     9.3 Restriction on Government Support. Onyx shall not obtain any new governmental or other
third party support of the Research without the prior approval of Miles. Upon signing of this
Agreement, Onyx shall terminate all government grants it currently is receiving that cover research
in the Field of Collaborative Research. To the best of Onyx’ knowledge, none of the work done by
Onyx (or its predecessors) under government grants prior to the execution of this Agreement has
resulted in any Patents or patent applications owned or licensed by Onyx that claim subject matter
within the Field of Collaborative Research.

     9.4 Manner of Payments. Miles shall pay Onyx all funding under this Article 9 in U.S. Dollars
in quarterly payments as a lump sum on or before [ * ] each calendar quarter, with payment for the
period from the Effective Date through June 30, 1994 in the amount of [ * ] to be made within 10
days after the execution of this Agreement. Payment shall be made by wire transfer of immediately
available funds to an account designated in writing by Onyx. Unless otherwise agreed in writing by
Onyx and Miles, the amount of each installment (except for the first payment) shall be one-fourth
of the total annual budget for a particular year as approved by the JRDC under the Annual Plan.

     9.5 Application of Funds; Reporting. Onyx shall use the funds received by it under this
Article 9 solely for the purpose
of the Research. Onyx shall submit to the JRDC within 60 days after the end of each calendar year
of the Research Term a report advising the JRDC of the scientific FTEs and other efforts and
expenses applied by it to the Research during the preceding calendar year. In the event that such
report shows that Onyx did not expend some of the funds it

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received hereunder, such amount shall be
applied as a credit towards the next payment of funds by Miles hereunder, or if no such further
payment is owed, shall be promptly refunded to Miles.

     9.6 Research Activities After Research Term. The Parties expect that both Parties may
continue to jointly conduct research and preclinical work on Collaboration Compounds not in
development after the end of the Research Term, with the intent of making proposals to the JRDC for
selection of such Collaboration Compounds for Co-Development into Products. Funding of such
preclinical work shall be as follows:

     (a) For any Collaboration Compound in active Preclinical Development Period work as a
Development Compound at the end of the Research Term, [ * ] pay all costs approved by the
JRDC relating to the preclinical research and investigations by [ * ] in the Preclinical
Development Period. [ * ] shall reimburse [ * ] for its approved preclinical expenses
within [ * ] of the end of each quarter, based upon invoices submitted by [ * ]. If [ * ]
declines to fund the preclinical work on such Development Compound, [ * ] may exercise its
rights under Section 7.3. Either Party may propose any such Collaboration Compound to the
JRDC for selection for Co-Development, as set forth in Section 11.4.

     (b) For all Collaboration Compounds not under active investigation in the Preclinical
Development Period at the end of the Research Term, either Party may propose to the other
that the Parties conduct jointly funded preclinical research and investigation work on such
Collaboration Compound. If the Parties agree on such arrangement, such preclinical work and
Preclinical Development Period work shall be managed by the JRDC to facilitate bringing such
compound into the Clinical Development Period and to eliminate duplication of effort, with [
* ] paying for [ * ] of the expenses of such work, reconciled on a quarterly basis. If a
Party does not accept the other Party’s proposal to perform joint preclinical work on such
Collaboration Compound, either Party may perform such work independently, [ * ]. In that
event, prior to conducting any independent Clinical Development Period work on such
Collaboration Compound, the Party conducting such independent preclinical work shall propose
the Collaboration Compound to the JRDC for selection for Co-Development under Section 11.4.
If the JRDC selects such Collaboration Compound for Co-Development, then the Party that did
not conduct the preclinical work on such Collaboration Compound shall pay the other Party [
* ] of that Party’s expenses in conducting such independent preclinical work on that
compound. Thereafter, the Parties shall [ * ], and shall conduct Co-Development of such
Collaboration Product as set forth in Chapter 4. The rights of a Party to buy back into a
Collaboration Compound being independently developed by the other Party under this Section
9.6(b) shall not expire until 30 days following [ * ]. If the JRDC does not then select
such compound for Co-Development, the Party desiring to develop such Collaboration Compound
may proceed with development independently pursuant to Section 12.4.

     (c) For compounds that are under active investigation as part of the Research at the
end of the Research Term but have not yet been determined to be a Collaboration

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Compound, the Parties shall have equal rights to continue work and commercialize any resulting
Products under the same arrangements as set forth in paragraph (b) above.

     (d) The Party who is the owner of any pending or issued claim of an unexpired Patent
pursuant to Section 1.39 (a) claiming the chemical genus of compounds at least one of which
was identified as a Collaboration Compound and whose Patent covers a Post-Collaboration
Compound shall have the exclusive right to develop and market such Post-Collaboration
Compound worldwide, subject to a royalty pursuant to Section 16.6. The testing for
inhibiting Ras Function activity by Post-Collaboration Compounds shall be done by Onyx.

Article 10 — Research Reports

     10.1 Information and Reports During Research. Onyx and Miles shall make available and
disclose to each other the Information and all other significant information, data, and results
known or developed by each party as of the Effective Date and during the Research Term, relating to
the Field and the Field of Collaborative Research. All discoveries or inventions made by either
Party in the Field and the Field of Collaborative Research, including without limitation
information regarding initial leads, activities of leads, derivatives, analogs, and results of in
vitro and in vivo studies, will be promptly disclosed to the other Party, with significant
discoveries or advances being communicated as soon as practicable after such information is
obtained or its significance is appreciated. Each Party shall also submit a written report to the
JRDC, at least once a quarter and at least three days prior to the JRDC meeting during such
quarter, summarizing the significant results, data, and information, including a list of all new
materials created, from the Research conducted by that Party during the previous quarter. Each
Party will use reasonable efforts not to communicate information to the other Party that has no
application to the Field. Each Party agrees to provide the other with access to review and make
copies of the raw data for any and all work carried out in the course of the Research, as
reasonably requested by the other Party to further the objectives of this Agreement.

     10.2 Reports After Research Term. Following the Research Term, each Party shall submit
reports to the JRDC on a quarterly basis regarding all work being done by such Party with respect
to Collaboration Compounds not yet in Development and other compounds under active investigation in
the Research as of the end of the Research Term, at a level of detail sufficient to enable the
other Party to understand the progress being made and to evaluate whether to participate in funding
such preclinical work under Section 9.6, and with respect to any efforts under Section 9.6(d)
towards identifying and developing Post-Collaboration Compounds.

* * * *

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CHAPTER 4

PRODUCT DEVELOPMENT

Article 11 — Co-Development

     11.1 Scope of Development. Development and commercialization by the Parties, or either of
them, of any and all Collaboration Compounds for any indication in the Field shall be conducted
solely as provided under this Agreement. All Co-Development will be supervised and managed by the
JRDC. The JRDC shall:

	 	(i)	 	review all proposals under Section 11.4 and select Collaboration Compounds for
Co-Development into Collaboration Products;

	 	(ii)	 	review and approve the world-wide plan for the Co-Development of each
Development Compound selected for Co-Development, including an annual budget subject to
approval by the Parties, the clinical plan, and selection of indications (the
“Co-Development Plan”); and

	 	(iii)	 	approve all major decisions regarding Co-Development.

     11.2 Preclinical Investigation and Development. The JRDC shall select which Collaboration
Compounds in the Research shall enter the Preclinical Development Period as Development Compounds.
Development Compounds shall be evaluated and investigated under the Preclinical Development Period
to determine whether to select such Development Compounds for Co-Development. The Preclinical
Development Period shall be directed towards obtaining the data necessary or useful for selecting
specific Collaboration Compounds (that are Development Compounds) for Co-Development and for filing
the applications for approval to conduct human clinical trials. The Preclinical Development Period
includes the preclinical work needed to prepare the data necessary or useful for filing an IND (or
related applications) and for obtaining governmental approval to conduct human clinical trials on
such Development Compounds, such as [ * ]. Except as otherwise provided in the Annual Plan, Miles
shall perform all of the preclinical and regulatory work under the Preclinical Development Period.
Miles shall bear all costs and expenses related to the work in the Preclinical Development Period
(except as set forth in Section 9.6(b) with respect to preclinical work after the Research Term).

     11.3 Synthesis of Preclinical Materials. The cost of Collaboration Compounds synthesized for
use in the Research and the Preclinical Development Period, and related costs of process
development, shall be part of the Annual Plan and budget pursuant to Section 5.4. Materials used in
the Preclinical Development Period shall be manufactured by [ * ], it being understood that Miles
will be the Party responsible for the development of manufacturing processes.

     11.4 Selection of Collaboration Compounds for Co-Development. Co-Development of a Development
Compound shall be initiated by its selection by the JRDC. At any time during the
Agreement, either Party may make a proposal to the JRDC that a

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particular Collaboration Compound be selected for Co-Development. Such proposal shall include a summary of all research and preclinical
results upon which such Party bases its belief that such Collaboration Compound is appropriate for
Clinical Development Period work. Within 60 days of receipt of such proposal, the JRDC shall
review all such data and make its decision whether to select such Development Compound for
Co-Development hereunder. In the event that the JRDC needs more information to make its decision,
the JRDC shall inform the Party making the proposal, prior to the end of such 60 day period,
specifying the additional information needed. The JRDC and such Party shall cooperate to provide
the JRDC such additional information as quickly as possible. The JRDC then shall make its decision
as to such Collaboration Compound within 30 days of receiving such additional information. If the
JRDC selects a Collaboration Compound for Co-Development, such Co-Development shall commence with
work necessary for regulatory submission in the Preclinical Development Period to develop a
Collaboration Product. At that time, the JRDC may select an appropriate number of related
Collaboration Compounds to act as back-up compounds to the selected Development Compound (“Back-Up
Compounds”). Such Back-Up Compounds shall not be subject to independent development under Article
12, during the time that the related Development Compound is in Clinical Development. Such Back-Up
Compounds shall no longer be considered Back-Up Compounds

	 	(a)	 	if the Back-Up Compounds cease to be in Co-Development (including by reason of
Regulatory Approval), or

	 	(b)	 	within [ * ] after the end of the Research Term by decision of the JRDC, or
	 
	 	(c)	 	after [ * ] after the end of the Research Term.

     11.5 Budget for Development. Within 60 days after selection by the JRDC of a Collaboration
Compound for Co-Development the JRDC shall agree upon and provide to the Parties for approval a
budget for the Co-Development activities to be undertaken to achieve Regulatory Approval for such
Development Compound. The JRDC shall amend and update the Co-Development budget at least 90 days
prior to the beginning of a new calendar year while such Co-Development is ongoing, and shall
submit such amended budget to the Parties for approval, with such changes as they may deem
appropriate and mutually approve.

     11.6 Performance of Co-Development. The JRDC shall supervise Co-Development with the goal of
achieving Regulatory Approval of such Development Compound as quickly as possible. In all
countries and territories [ * ], Miles shall have the primary responsibility for performing the
required tasks of Co-Development pursuant to the world-wide Co-Development Plan, including
conducting all clinical trials and obtaining all Regulatory Approvals necessary for marketing
Collaboration Products. Onyx shall assist Miles at Miles’ reasonable request in performing such
Co-Development tasks; provided, however, that Miles shall at all times have decision-making
authority and remain ultimately responsible for completion of all such tasks and obligations.
Miles’ (and Onyx’, where appropriate) performance of such Co-Development obligations shall be under
the management and supervision of the JRDC, and each Party shall keep the JRDC informed as to all
significant work in Clinical Development Period hereunder.

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[ * ] Miles and Onyx shall jointly participate in performing Co-Development tasks with equal participation by the
Parties to the extent practical, under the supervision of the JRDC. Subject to the principle of
equal participation, the Parties expect that such Co-Development will rely, to the extent it is
economically indicated, on the existing structure and capabilities of Miles for performing Clinical
Development Period tasks. Promptly after selection of a Collaboration Compound for Co-Development,
the Parties shall meet to define a specific mechanism for such joint Co-Development [ * ].

     11.7 Funding of Co-Development. Subject to an election as provided in Section 12.2 below,
each Party shall bear one-half of the Co-Development Costs for each Development Compound, for each
country throughout the world excluding Japan that the JRDC selects for Co-Development. Each Party
shall maintain accurate books and records of all costs and expenses allowable as Co-Development
Costs, within the budget of the Co-Development Plan approved by the Parties. Within 60 days after
the end of any calendar quarter, each Party shall submit to the JRDC a summary of all
Co-Development Costs incurred during that quarter with respect to such Development Compound,
including reasonable detail demonstrating the specific basis for the costs and expenses included in
the summary. The JRDC shall review all such expenses to determine if they fall within the annual
budget in the Co-Development Plan. Any amounts expended outside the approved annual budget shall
be borne by the Party making such expenditure, unless approved by JRDC and if so approved shall be
Co-Development Costs. With respect to the expenses within the annual budget of the Co-Development
Plan, the JRDC shall submit to the Party that bore less than half of the Co-Development Costs
within the budget for that quarter an invoice for the amount that Party must remit to the other
Party or bring that Party’s share of the Co-Development Costs up to one-half for the previous
quarter. Such Party shall remit the amount on the invoice to the other Party within [ * ] of
receiving such invoice.

     11.8 Development Payments. Miles agrees to pay Onyx the amounts (“Development Payments”)
specified below. Such payments will occur with respect to each Development Compound during the
Clinical Development Period under the management of the JRDC as long as the Co-Development
continues. No payments under this Section shall be due for independent development pursuant to
Section 12.4. Miles shall make the following Development Payments:

     (a) $5.0 million in consideration of research and development efforts to be undertaken
by Onyx pursuant to this Agreement following the first administration of a Development
Compound to a subject under a Phase II clinical trial. This amount shall be paid by wire
transfer within [ * ] after such administration.

     (b) $15.0 million in consideration of research and development efforts to be undertaken
by Onyx pursuant to this Agreement following the first administration of a Development
Compound to a subject under a Phase III clinical trial. This amount shall be paid by wire
transfer within [ * ] after such administration.

     (c) $10.0 million in consideration of research and development efforts to be undertaken
by Onyx pursuant to this Agreement following the filing of an NDA for a

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
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Development Compound. This amount shall be paid by wire transfer within [ * ] after such
filing.

     (d) $10.0 million in consideration of research and development efforts to be undertaken
by Onyx pursuant to this Agreement following the approval of an NDA for a Development
Compound or equivalent in any one of the following countries: France, Germany, Italy,
Spain, or the United Kingdom. This amount shall be paid by wire transfer within [ * ] after
such approval.

     11.9 Development Diligence. The Parties [ * ] and Miles [ * ] shall use diligent efforts to
complete the work in the Clinical Development Period of Collaboration Compounds selected for
Co-Development, and to file applications to obtain Regulatory Approval for Collaboration Products
in each country in which both Parties bear the Co-Development Costs for a particular Product. The
Parties shall own jointly [ * ] and Miles shall own solely in all other countries all regulatory
submissions and Regulatory Approvals.

     11.10 Collaboration Product Information. Miles and Onyx will disclose and make available to
each other all preclinical, clinical, regulatory, commercial and other information known by Miles
or Onyx or their respective Affiliates concerning Collaboration Products at any time during the
term of this Agreement. All significant information will be disclosed to the other Party promptly
after it is learned or its significance is appreciated. The Parties shall agree on an appropriate
mechanism, relying if possible on existing infrastructure, to maintain a database of clinical trial
data accumulated from all clinical trials and of adverse drug event information for all
Collaboration Products. Both Parties shall own (subject to Section 11.9 above) and have rights of
access to such database and information.

     11.11 Use of Information. Any information contained in reports made pursuant to this Article
11 or otherwise communicated between the Parties will be subject to the confidentiality provisions
of Article 22 below. Subject to such limitation, Miles may use any information obtained by it
pursuant to this Agreement for the purposes of obtaining Regulatory Approval for Products in
countries where Onyx is not participating in Co-Development of such Products.

     11.12 Relationship With Chiron Product Rights. The Parties recognize that Onyx has granted
Chiron prior rights relating to developing and commercializing [ * ] products, as defined in the
Chiron Agreement, and that all rights granted in this Agreement are subject to those prior rights.
In the event any Collaboration Compound introduced to the collaboration by Onyx or synthesized by
Onyx in the course of the Analoging Program pursuant to Section 8.1.(b) satisfies the definition of
a [ * ] product, Onyx shall provide notice to Chiron and comply with Chiron’s rights with respect
to such product. If as a result of such negotiation Chiron elects to develop and commercialize
such compound as a [ * ] product under the Chiron Agreement, then Miles and Onyx shall share
equally any Sublicensing Revenue received from Chiron with respect to such products. If Chiron
does not elect to commercialize such Collaboration Compound as a [ * ] product, such compound shall be developed, if at all, under this Agreement. Any Collaboration Compound
introduced to the collaboration by Miles or synthesized by Miles in the course of the Analoging
Program pursuant to Section 8.1(b) that satisfies the definition of a [ * ]

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
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product, shall not be provided to Chiron. Onyx agrees not to make any amendment to the Chiron Agreement or waive any
rights thereunder after the Effective Date which is adverse to the collaboration established by
this Agreement without the prior consent of Miles.

     11.13 Manufacture of Clinical Materials. Miles shall manufacture, or have manufactured, all
quantities of Collaboration Products required for clinical trials and obtaining Regulatory
Approvals. The specifications for such materials shall be established by the JRDC.

     The cost of manufacturing such materials [ * ] shall be included within Co-Development Costs,
based on Miles’ then most current estimates of the final Cost of Goods Sold for such Products.

Article 12 — Independent Development

     12.1 Termination of Funding of Co-Development in Japan. Onyx has selected not to bear its
share of the Co-Development Costs in Japan. Thus, the Development Compounds shall be deemed
Royalty-Bearing Products for Miles in Japan, but shall remain a Collaboration Product in the rest
of the world. Miles, if it bears the costs to continue work in Japan, shall have the exclusive
rights to develop and market such Products, subject to the payment of royalties pursuant to Section
16.2(b) below.

     12.2 Termination of Funding of Co-Development Outside Japan. Either Party may terminate
entirely its funding for conducting research and preclinical work on Collaboration Compounds not in
development after the end of the Research Term and/or its funding of CoDevelopment Costs for a
particular Development Compound, by giving the other Party 60 days written notice of that decision.
Such Party shall remain responsible for its share of all Co-Development Costs incurred up until
the effective date of such termination under the notice. Thereafter, the other Party may continue
work at its own expense, and the Product shall be deemed a Royalty-Bearing Product. Such Party
continuing work thereby shall obtain the worldwide (excluding Japan), exclusive right to develop
and market such Product, subject to payment to the terminating Party of a royalty on sales of such
Royalty-Bearing Product under Section 16.2(a).

     12.3 No Refund of Co-Development Costs. A Party shall not be entitled to any refund of any
Co-Development Costs it has borne under this Agreement, regardless of any election made under
Sections 12.1 or 12.2.

     12.4 Independent Development. If a Collaboration Compound is not selected by the JRDC as a
Development Compound for Co-Development or has been selected either as Development Compound or as
Back-Up Compound, for which, however, development has been discontinued, either Party may elect, by written
notice to the other Party, to develop such Collaboration Compound as a Product independently,
provided that such Party supported selection by the JRDC at the time the Collaboration Compound was
submitted to the JRDC for consideration. In addition, if Onyx performed independent research and
development on a compound under Section 7.3 and Miles did not exercise the option under Section
7.4, then Onyx may develop such compound as a Product independently. The Party performing such

[ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
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independent Clinical Development Period work shall bear all related expenses. Such independently
developed Product shall be a Royalty-Bearing Product. The non-electing Party shall provide all
materials and Know-How relating to such Collaboration Compound as are reasonable to assist such
Party to perform such Clinical Development Period work. The Party that performs such independent
development shall pay a royalty to the other Party for sales of such Royalty-Bearing Product under
Section 16.2(c).

* * * *

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES
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CHAPTER 5

MARKETING OF PRODUCTS

Article 13 — Commercialization of Collaboration Products

     13.1 Miles Exclusive Rights Outside the United States. Outside the United States, Miles shall
have the exclusive right, subject to Section 13.11, to commercialize and market Collaboration
Products. Miles shall use reasonable diligence in marketing Collaboration Products outside the
United States and shall endeavor to maximize the economic value of the Products to the Parties.
Onyx shall cooperate and assist in such marketing at Miles’ reasonable request.

     13.2 Miles Marketing Plan. At least twelve months prior to the expected Regulatory Approval
of marketing a Collaboration Product, Miles shall develop for review a Marketing Plan setting forth
the world-wide plan for marketing and selling such Collaboration Product. Such Marketing Plan
shall also include a budget financial projections, as set forth in Section 13.3. Such Marketing
Plan will be updated by Miles at least 90 days [ * ] and at least 90 days prior to [ * ] the launch
of such Product. Onyx shall have the right to meet with Miles to discuss the marketing and selling
plans and strategies contained therein.

     13.3 Financial Projections and Budget. Each Marketing Plan shall include a detailed budget
for the marketing and selling of the Collaboration Product and financial projections for sales and
profitability. The financial projections will set forth projections over the first [ * ] years
following launch.

     13.4 Onyx Option To Co-Promote. Onyx has the right to Co-Promote with Miles in the United
States each Collaboration Product that receives Regulatory Approval, so long as Onyx paid one-half
of the Co-Development Costs incurred world-wide for such Collaboration Product excluding Japan.

     13.5 Onyx Notice of Intent to Co-Promote. For each Development Compound in Co-Development,
Miles shall give Onyx a presentation promptly after all Phase II clinical trials data have been
collected and analyzed. This presentation shall give an analysis of all relevant data about such
Development Compound, including results from all Clinical Development Period efforts and shall set
forth a detailed plan and budget for the remaining clinical development needed to obtain Regulatory
Approval and a proposed Marketing Plan for the United States after approval. Such presentation
shall be sufficiently detailed to permit Onyx to make an informed decision about Co-Promotion.
Within [ * ] after receipt of such presentation, Onyx shall provide the Miles written notice of
whether it elects to Co-Promote such Collaboration Product in the United States. If Onyx does not
elect to Co-Promote within such period or does not participate in the launch of the Product,
Miles shall have the exclusive right to commercialize and market such Collaboration Product in the
United States.

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     13.6 Co-Promotion Program. The JRDC shall determine the method of marketing the Co-Promotion
Products that is designed to maximize the economic value of such Products to the Parties. With
respect to each Collaboration Product that Onyx elects to Co-Promote under Section 13.5, Onyx and
Miles shall each work diligently, and use reasonable commercial efforts, to Co-Promote and
commercialize such Co-Promoted Products in the United States. The JRDC shall develop, oversee and
implement all such commercialization activities, giving equal position and opportunity to each
Party in Co-Promoting Products (the “Co-Promotion Program”). At least twelve months prior to the
introduction of each such Co-Promoted Product, the JRDC shall prepare a detailed plan for the
initial launch and the 12 month period following launch (“Launch Year”). Such Co-Promotion Program
shall be updated and approved on an annual basis not later than 90 days prior to each January 1
following launch.

     13.7 Co-Promotion Sales Efforts. Each Party contributes 50% of the overall level of sales
effort for each Co-Promotion Product. The JRDC shall work with the Parties to achieve a mutually
acceptable level of sales efforts, including numbers of sales representatives allocated.

     13.8 Co-Promotion Costs. The Co-Promotion Program for each Co-Promoted Product shall include
a budget, prepared by the JRDC and approved by the Parties, of the approved costs for all aspects
of Co-Promotion in the United States for such Co-Promoted Product (the “Approved Co-Promotion
Costs”). Approved Co-Promotion Costs may include: [ * ] with respect to such Co-Promoted Product.

     13.9 Training Program. The JRDC shall oversee the development of training programs covering
the Co-Promoted Products for the sales forces of each respective Party. The Parties agree to
utilize such training programs on an ongoing basis to assure a consistent, focused promotional
strategy. Training shall be carried out at a time which is mutually acceptable to the Parties, and
which is prior to but reasonably near the date on which Regulatory Approval is expected. As
additional members are added to the Parties’ respective sales forces, training will be given to
groups of the newly selected members at reasonable intervals of time. All training shall be
carried out by Miles. All training materials will be prepared and supplied by Miles.

     13.10 Advertising and Promotional Materials. The JRDC shall oversee the development of all
written sales, promotional, and advertising materials and all oral presentations relating to
Co-Promoted Products. All such written or visual materials, and oral presentations (where
applicable), shall comply with the general requirements of Article 18 relating to trademarks and
shall, if they identify either Party, describe Miles and Onyx as joining in a research
collaboration and the co-promotion of such Product, and shall display the Onyx and Miles names and
logos with equal
prominence (to the extent permitted by law). All such advertising and promotional materials will
be prepared and supplied by Miles.

     13.11 Onyx Marketing. In a country outside the United States and Japan where Onyx has a sales
force and it is legally permissible to co-promote products, Onyx may request that Miles permit Onyx
to co-promote Collaboration Products in such country. Miles shall consider such request in good
faith, and at its discretion may permit Onyx to perform such co-promotion under terms mutually
agreed to by the Parties.

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     13.12 Price Setting in the United States. Miles will have the sole right and responsibility
for establishing and modifying the terms and conditions with respect to the sale of the
Co-Promotion Product, including the [ * ], any [ * ] and the like. In establishing such prices and
commercial terms, Miles shall seek to maximize the economic value of such Products to the Parties
over time.

Article 14 — Sales Responsibility

     14.1 Sales and Distribution. For each Co-Promotion Product, Miles shall be responsible for
booking sales, warehousing, and distribution of all such Products, and for performing all services
related to Product distribution and customer service. If Onyx receives any orders for Co-Promotion
Product, it shall refer such orders to Miles to be filled.

     14.2 Responsibility. Unless otherwise agreed, Miles shall have the sole responsibility with
respect to the following:

     (a) Handling all returns of the Co-Promotion Product. If a Co-Promotion Product is
returned to Onyx, it shall be shipped promptly to the facility responsible for shipment of
such product in the country in question, to the attention of the Returned Goods Department
or another location as may be designated by Miles.

     (b) Handling all recalls of the Co-Promotion Products. Onyx will make available to
Miles, upon request, all of Onyx’ pertinent records which Miles may reasonably request to
assist Miles in effecting any recall.

     (c) Handling all aspects of order processing, invoicing, distribution, inventory,
receivables and collection in respect of sales of Co-Promotion Products.

     (d) Accounting for Collaboration Revenue. Miles shall properly manage and account for
all amounts received on account of sales of Co-Promotion Products.

     14.3 Cost Allocations. To the extent such costs are not [ * ] or otherwise allocated as [ * ]
hereunder, all other costs incurred under Sections 14.1 and 14.2 shall be [ * ].

     14.4 Allocation of Co-Promotion Costs. Miles, as the Party responsible for accounting under
Section 16.1, shall review all invoices submitted by the Parties as [ * ] relating to co-promotion
activities for Co-Promotion Products, and shall approve for reimbursement only those invoices for charges and costs that
constitute Approved Co-Promotion Costs. The Parties shall submit to Miles, on a quarterly basis,
invoices for the Approved Co-Promotion Costs incurred by them during the previous quarter. The
Approved Co-Promotion Costs and the costs pursuant to Section 13.9 and 13.10 shall be deducted as [
* ] from the Collaboration Revenue, in accordance with Section 16.1 below, in determining the
Marketing Profit or Marketing Loss.

Article 15 — Royalty-Bearing Products

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     15.1 Commercialization and Marketing of Royalty-Bearing Products. Each Party which has
exclusive rights in such countries where Products are deemed Royalty-Bearing Products shall conduct
the development and marketing of such Products in accordance with the Party’s internal standards
with respect to matters such as development timetables, expenditures, pricing, promotion and
advertising, taking into account relevant parameters including market size, profit margins and
competition and in accordance with legal and regulatory requirements. Each Party shall use its own
discretion, based upon resources and other relevant parameters, to determine which countries are
selected to pursue the development and marketing of such Royalty-Bearing Products.

Article 16 — Compensation for Sales of Products

     16.1 Determination and Allocation of Marketing Profit and Loss with Respect to Sales Of
Collaboration Products. Within [ * ] of the end of each of the [ * ] calendar quarters and [ * ]
of the [ * ] quarter, Miles shall report to Onyx worldwide Collaboration Revenue received for each
Collaboration Product, on a country-by-country and Product-by-Product on a consolidated basis for
each such quarter. Furthermore Miles shall report to Onyx the [ * ] incurred by Miles and reported
to Miles pursuant to Section 14.4, on a country-by-country and Product-by-Product on a consolidated
basis during such quarter. [ * ] of the Net Sales of all Collaboration Products other than
Co-Promotion Products shall be an additional [ * ] to Miles to compensate Miles for the investment
and risk with respect to the sale and marketing of such Products. The Marketing Profit shall be
divided equally between Onyx and Miles, however, subject to Section 16.3 below. In addition, upon
receipt of such reports for the [ * ] quarter, Miles shall reconcile all reports for such calendar
year and shall direct the remittance of a reconciling payment between the Parties, as appropriate.
Marketing Profit shall be determined and allocated between the Parties for so long as [ * ]. In
the event that the [ * ] are greater than the [ * ] for a particular quarter, the difference shall
be deemed Marketing Loss, which shall be allocated in equal shares to each Party. Within [ * ] of
such allocation, Onyx shall reimburse Miles an amount which, when added to any unreimbursed
Allowable Expense borne by Onyx during the quarter, will be sufficient to allocate to Miles its
one-half share of the Marketing Loss for the quarter.

     16.2 Royalty With Respect to Sales of Royalty-Bearing Products. Sales by a Party or its
sublicensee of Royalty-Bearing Products shall require payment of royalties to the other Party as
determined under the following provisions:

     (a) Royalties After Termination of Co-Development. For Collaboration Compounds that
are independently developed under Section 12.2 as Royalty-Bearing Products, the royalty to
be paid on Net Sales by the Party conducting such development is as follows:

     (i) if the commencement of independent development occurred after the end of
the Research Term and prior to the commencement of the Clinical Development Period,
the royalty shall be at a rate of [ * ] to be negotiated in good faith, or

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     (ii) if the commencement of independent development occurred after the
commencement of the Clinical Development Period at the rate determined by the
following equation:

     Royalty Rate = [ * ]

     (1) “L %” means

     (i) during the five year period after the Regulatory Approval of the
Royalty-Bearing Product, [ * ] and

     (ii) thereafter, [ * ] during the period after the fifth year after Regulatory
Approval of such Royalty-Bearing Product [ * ]

     (2) [ * ] and

     (3) [ * ]

     (b) Royalties For Product Sold in Japan. For Collaboration Compounds, that are
independently developed under Section 12.1 as Royalty-Bearing Products in Japan, the royalty
to be paid on Net Sales is

     (i) A rate of [ * ] if either (A) the compound in question has entered the
Preclinical Development Period prior to [ * ] or (B) such compound is not in the
Preclinical Development Period prior to [ * ] but [ * ] and

     (ii) A rate of [ * ] in all other cases, depending on the stage of development,
such rate to be negotiated in good faith.

     (c) Royalties For Independently-Developed Products. For Collaboration Compounds that
are independently developed under Section 12.4 above, Net Sales of such Royalty-Bearing
Products by such a Party or its sublicensee shall be subject to a royalty payable by such
Party to the other Party. Such royalty will be at a rate between [ * ] to be negotiated in
good faith by the Parties based on the following factors:

     (i) [ * ]

     (ii) [ * ] and

     (iii) [ * ]

     16.3 Special Distribution. At the end of each calendar quarter, Miles shall be entitled to a
special distribution equal to the amounts of Development Payments made by Miles under Section 11.8
and not yet recovered by Miles under this Section 16.3. The amount of the distribution, however,
shall not exceed the sum of:

	 	(i)	 	[ * ] of the [ * ] of Marketing Profits for such quarter; and

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	 	(ii)	 	[ * ] of the [ * ] from Royalty-Bearing Products for such
quarter; and
	 
	 	(iii)	 	if the end of the [ * ] concerned is also the end of the [ *
], [ * ] of any Onyx Profit during [ * ]. As used herein, “Onyx Profit” means
any net profit reported by Onyx for financial accounting purposes, as
calculated by [ * ].
	 
	 	 	 	Such distribution shall be effected within 60 days after the end of the
quarter in the following manner or manners, as necessary, in the following
order: (i) [ * ]; (ii) [ * ]; (iii) [ * ]; and (iv) [ * ].

     16.4 Research Termination. In the event that Miles terminates the Research under Sections
5.6, 5.7, 5.8 and 5.9 and Onyx sells Products thereafter, then Onyx shall pay Miles a royalty on
Net Sales of such Products, at a commercially reasonable royalty rate up to [ * ].

     16.5 Duration of Royalty Obligations: Royalty Step-Down. The royalty obligation under Section
16.2 shall terminate, with respect to sales of a particular Royalty-Bearing Product, on a
country-by-country basis on the later of: the expiration of the last to expire Patent right
covering such Product owned or Controlled by either Party or [ * ] years after the first commercial
sale of such Product. In the event such Product is sold in a country wherein there is no issued
and enforceable Patent owned or Controlled by either Party, covering the manufacture, use or sale
of such Product, then the royalty rate applicable to sales of such Product in such country shall be
[ * ] rate otherwise specified in this Article.

     16.6 Royalty for Post-Collaboration Compound Sales. In the event a Party sells as a product a
Post-Collaboration Compound it owns, such Party shall pay the other Party a royalty of [ * ] of the
Net Sales of such product. Such royalty obligation shall terminate, on a country-by-country basis,
upon the last to expire Onyx Patent or Miles Patent covering such product through its chemical
genus claim.

     16.7 Royalty Payment Reports. Royalty payments under this Agreement shall be made to the
Party owed a royalty hereunder, or
its designee, quarterly within [ * ] following the end of each calendar quarter for which royalties
are due from the selling Party. Each royalty payment shall be accompanied by a report summarizing
the Net Sales of Royalty-Bearing Products during the relevant three-month period.

     16.8 Royalty Offset. A Party may offset, against any amounts owed to the other Party as
royalties hereunder due to its sales of Royalty-Bearing Products, the following expenses to the
extent incurred in the year for which such royalty amounts accrued:

     (a) [ * ] of Third Party Royalties with respect to technology acquired under Section
8.2; and

     (b) [ * ] of such Party’s

               (i) one-time settlement payment, and/or

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     (ii) ongoing Third Party Royalties required in respect of sales of such
Royalty-Bearing Products by reason of claims relating to Patents or Know-How
licensed from the other Party or developed under this Agreement, all under Section
21.5 with respect to such Party’s defense of claims by a Third Party made against
such Party in respect of its making, using, or selling such Royalty-Bearing
Products; provided, however, that a Party may only offset against royalties owned to
the other Party with respect to any particular Product up to an aggregate of [ * ]
royalties owed the other Party for such Product for the calendar year.

     16.9 Taxes. The Party receiving royalties shall pay any and all taxes levied on account of
royalties it receives under this Agreement. If laws or regulations require that taxes be withheld,
the selling Party will

	 	(i)	 	deduct those taxes from the remittable royalty,
	 
	 	(ii)	 	timely pay the taxes to the proper taxing authority, and
	 
	 	(iii)	 	send proof of payment to the other Party within sixty (60)
days following that payment.

The Parties agree to cooperate to obtain the benefit of any tax treaty with respect to such royalty
payments.

     16.10 Blocked Currency. In each country where the local currency is blocked and cannot be
removed from the country, at the election of the selling Party, royalties accrued in that country
shall be paid to the receiving Party in the country in local currency by deposit in a local bank
designated by the receiving Party.

     16.11 Foreign Exchange. For the purpose of computing royalties due upon the Net Sales of
Royalty-Bearing Products sold in a currency other than United States Dollars, such currency shall
be converted into United States Dollars at the
applicable conversion rate published in the Wall Street Journal on the date when the royalty
payment reports pursuant to Section 16.7 is made.

     16.12 Payments to or Reports by Affiliates. Any payment required under any provision of this
Agreement to be made to either Party or any report required to be made by any Party shall be made
to or by an Affiliate of that Party if designated by that Party as the appropriate recipient or
reporting entity.

     16.13 Sales By Sublicensees. In the event either Party grants licenses or sublicenses to
Third Parties to make or sell Royalty-Bearing Products, such licenses or sublicenses shall include
an obligation for the licensee or sublicensee to account for and report its Net Sales of such
Royalty-Bearing Products on the same basis as if such sales were made by the Party granting the
license or sublicense, and such Party shall pay royalties to the Party receiving royalties under
this Agreement as if the Net Sales of such Royalty-Bearing Products of the sublicensee were Net
Sales of the Party granting the license or sublicense.

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Article 17 — Information and Reports During Marketing

     17.1 Adverse Drug Events. The Parties shall maintain and promptly provide to each other
information regarding adverse drug events with respect to Collaboration Products as follows:

     (a) Each Party shall notify the other Party of any fatal or severe events occurring in
a given country and reported to it in respect of Collaboration Products within twenty-four
(24) hours of receipt of such report and immediately thereafter shall supply to the other
Party all further details which become available to the reporting Party with respect to any
such events;

     (b) The Parties shall immediately decide who shall be responsible for notifying such
events reported to it to the appropriate health authorities in accordance with legal
requirements and governmental registrations applying the given country including reporting
to the medical and scientific community if appropriate;

     (c) The Parties shall also keep informed each other on a quarterly basis of all other
events with regard to adverse reactions occurring in the countries in respect of
Collaboration Products.

     17.2 Records. Each Party shall keep or cause to be kept such records as are required to
determine in a manner consistent with generally accepted accounting principles in the United States
the sums or credits due under this Agreement, including, but not limited to, [ * ] At the request
(and expense) of either Party, the other Party and its sublicensees shall permit the requesting
Party or an independent certified public accountant appointed by such Party and reasonably
acceptable to the other Party, at reasonable times and upon reasonable notice, to examine those
records as may be necessary to:

	 	(i)	 	determine, with respect to any calendar year ending not more
than three years prior to such Party’s request, the correctness of any report
or payment made under this Agreement; or
	 
	 	(ii)	 	obtain information as to the royalty payable for any calendar
year. Any such examination shall be subject to Article 22. Results of any
such examination shall be made available to both Parties. The Party requesting
the audit shall bear the full cost of the performance of any such audit, unless
such audit discloses a variance of more than five percent (5%) from the amount
of the original report, royalty or payment calculation. In such case, the
Party being audited shall bear the full cost of the performance of such audit.

Article 18 — Trademarks

     18.1 Collaboration Product Trademarks. Collaboration Products shall be sold under trademarks
selected by agreement of the Parties and owned by [ * ] shall grant to [ * ] an

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exclusive, royalty-free license [ * ] to use Collaboration Product trademarks, in addition to [ * ] use, for
Products developed in the Field. [ * ] shall bear all costs associated with the filing,
prosecution and maintenance of Collaboration Product trademarks. In the event a decision is made
to not maintain a Collaboration Product trademark, [ * ] shall give [ * ] notice to this effect;
after notice, [ * ] may request the assignment of such Collaboration Product trademark and may at
its expense maintain such Collaboration Product trademark. Each Party agrees to conform with the
customary guidelines of the licensing Party with respect to manner of use.

     18.2 Royalty-Bearing Product Trademarks. The Party selling a Royalty-Bearing Product shall
select and own trademarks covering such Royalty-Bearing Products in the countries of sale. Where a
Royalty-Bearing Product is a Collaboration Product in some other countries, the Party selling such
Royalty-Bearing Product may use the Product-specific trademark of such Collaboration Product.

     18.3 Infringement Of Trademark. [ * ] shall notify [ * ] promptly upon learning of any
actual, alleged or threatened infringement of a trademark specific to a Collaboration Product (the
“Trademark”) or of any unfair trade practices, trade dress imitation, passing off of counterfeit
goods, or like offenses. Upon learning of such offenses from [ * ] shall take all reasonable and
appropriate steps to protect, defend and maintain the Trademark for use by the Parties in
connection with the Collaboration Product.

     18.4 Costs of Defense for Collaboration Product Trademarks. All of the costs, expenses and
legal fees in bringing, maintaining and prosecuting any action to maintain, protect or defend a
Trademark which is specific to a Collaboration Product shall be an [ * ], and any recovery shall be
[ * ].

Article 19 — Manufacturing and Supply

     19.1 Commercial Supply of Collaboration Products.

          (a) Miles shall manufacture, or have manufactured, all Collaboration Products for worldwide
sales in conformance with the specifications set forth in the respective applications for
Regulatory Approval and any amendments or supplements thereto, and any substitutes. Subject to
subparagraphs (b) below, the [ * ] shall be kept by Miles as an [ * ]. Miles shall also be allowed
to keep as an [ * ] its [ * ] for each Collaboration Product (to the extent not recovered as
Co-Development Costs pursuant to Sections 11.3 and 11.13)

     (i) incurred prior to the first commercial sale, without interest, in equal
quarterly amounts over a period of [ * ] years, commencing with the first commercial
sale of such Collaboration Product, and

     (ii) incurred after the first commercial sale as they occur in each year.

          (b) The Parties intend that Miles shall be the worldwide manufacturer of Collaboration
Products, unless Miles elects to use the services of a Third Party, but desire to assure Onyx that
the [ * ] are reasonable. If Onyx believes the [ * ] actually charged by Miles

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may exceed a reasonable amount, it shall so advise Miles, and Miles shall confer with Onyx in good faith
regarding the Miles cost structure and accounting methodology and whether cost reducing
alternatives may be available. Following consultations with Onyx, Miles shall in good faith
determine whether any reductions in its [ * ] Sold are appropriate.

     19.2 Labelling. Co-Promotion Products shall bear Miles’ and Onyx’ company name on the labels,
packaging and package inserts with equal prominence to the extent permitted by law. The Parties
shall grant each other fully-paid licenses under their respective trademarks (and as approved by
the Parties at the time) as necessary to effect the Co-Promotion provided for in this Agreement.
All other Collaboration Products shall refer to the fact that the product was developed in
collaboration with Onyx, to the extent permitted by law.

     19.3 Commercial Supply of Royalty-Bearing Products. The Party selling Royalty-Bearing
Products shall be responsible for the manufacture of such Products. If requested by Onyx, Miles
shall consider in good faith any request by Onyx to act at its discretion as manufacturer of
Royalty-Bearing Products being sold by Onyx, on commercially reasonable terms.

     19.4 Supply Shortages. In the event that Miles is unable to manufacture sufficient quantities
of any Product to meet the requirements for Collaboration Products and Miles’ and Onyx’
Royalty-Bearing Products, the Parties shall meet and discuss in good faith how to overcome such
shortage.

* * * *

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CHAPTER 6

INTELLECTUAL PROPERTY RIGHTS

Article 20 — Inventions and Patents

     20.1 Ownership of Research Products and Inventions.

          (a) Except as set forth in Section 20.1(b) below, each Party shall own the entire right, title
and interest in and to all know-how and patentable inventions made solely by the employees or
agents of such Party, and Patents covering such discoveries or inventions, subject to the terms of
this Agreement. Miles and Onyx shall each own an undivided one-half interest in all know-how,
compositions of matter, and inventions made jointly by employees or agents of both Parties under
the Research. Miles and Onyx shall each own an undivided one-half interest in Patents covering
such jointly-made inventions, with inventorship to be determined under the patent laws of the
jurisdiction where the relevant Patent application is filed. Miles and Onyx as joint owners each
shall have the right to grant licenses under such jointly owned Patents, only to the extent as
provided for in this Agreement.

          (b) Notwithstanding the foregoing, in the event that (i) a Party [ * ] or (ii) a Party [ * ],
and [ * ] then the Party [ * ], shall be assigned all right, title and interest in and to all
know-how and patentable inventions associated with such [ * ], subject to the terms of this
Agreement.

     20.2 Disclosure of Patentable Inventions. In addition to the disclosures required under
Sections 10.1 and 11.10, each Party shall submit a written report to the other within 60 days of
the end of each quarter describing any invention arising during the prior quarter in the course of
the collaboration which it believes may be patentable.

     Each Party shall provide the other party with drafts of any patent application which discloses
a Collaboration Compound prior to filing, allowing adequate time for review and comment by the
other Party if possible; provided, however, the providing Party shall not delay the filing of any
patent application pursuant to Section 20.3 below.

     20.3 Patent Prosecution. The Parties intend to establish broad patent protection for
Collaboration Compounds and other patentable inventions arising from the Research. Miles shall
supervise and direct patenting of all patentable inventions conceived in the course of and within
the scope of the Research and reduced to practice during the Research Term or within one year
thereafter by employees of both Parties (the “Inventions”). Miles shall file and prosecute all
patent applications covering Inventions. All internal costs and expenses of prosecuting such
patent applications covering Inventions shall be borne by [ * ]. All [ * ], for prosecuting such
applications on Inventions shall be paid by [ * ] and be [ * ]. Miles shall give Onyx copies of
all such applications and related correspondence, in sufficient time to allow Onyx reasonably to comment thereon. Miles shall
maintain all Patents that issue on such applications. The external costs and expenses in relation
thereto shall be borne by [ * ] and be [ * ].

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     Each Party may make its own decision regarding filing and prosecuting applications for Patents
on inventions made solely by such Party, except with respect to inventions owned by the other Party
pursuant to Section 20.1(b), for which such other Party shall have the right to file and prosecute
patent applications. All such applications shall be [ * ]. Prior to such filing, the Parties will
consult with each other to facilitate uniformity and efficiency in the filing and prosecution of
applications to obtain Patents. Each Party shall be responsible for all costs of prosecuting and
maintaining any applications and patents it files hereunder. If a Party decides not to file or
maintain an application or patent in any country on an invention hereunder, it shall give the other
Party notice to this effect; after that notice, the other Party may, at its expense, file or
maintain such application or patent, and the first Party shall assign to such other Party the
rights in such application or patent.

     20.4 Confidential Treatment. All information disclosed under Sections 20.2 and 20.3 shall be
treated as confidential pursuant to Article 22.

Article 21 — Infringement

     21.1 Infringement By Third Parties for Collaboration Compound. Miles and Onyx shall promptly
notify the other in writing of any alleged or threatened infringement of Patents relating to
Collaboration Compounds of which they become aware. The Parties shall determine how best to
prosecute any such infringement. If the Parties do not agree on whether or how to proceed with
enforcement activity within

	 	(i)	 	[ * ] following the notice of alleged infringement or
	 
	 	(ii)	 	[ * ] before the time limit, if any, set forth in the
appropriate laws and regulations for the filing of such actions, whichever
comes first, then [ * ], may each act in its own name to commence litigation
with respect to the alleged or threatened infringement. In the event a Party
brings an infringement action, the other Party shall cooperate fully,
including, if required to bring such action, the furnishing of a power of
attorney. Neither Party shall have the right to settle any patent
infringement litigation under this Section 21.1 in a manner that diminishes the
rights or interests of the other Party without the consent of such other Party.
The costs of any litigation commenced hereunder, [ * ], but excluding [ * ],
which are incurred after the designation of a Product for Co-Development but
prior to Regulatory Approval, shall be borne in the same manner as if such
costs were Co-Development Costs. Such costs that are incurred following
Regulatory Approval shall be [ * ], reimbursed to the Party incurring such
expense. Any recovery realized as a result of such litigation shall be [ * ].

     21.2 Infringement by Third Parties for Royalty-Bearing Products. If any Patent in the Onyx
Patents or the Miles Patents, which covers a Royalty-Bearing Product, is infringed by a Third Party
in the country where such Royalty-Bearing Product is being sold, the Party to this

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Agreement first having knowledge of such infringement shall promptly notify the other in writing. The notice shall
set forth the facts of that infringement in reasonable detail.

     The Party who is selling such Royalty-Bearing Product shall have the primary right, but not
the obligation, to institute, prosecute, and control any action or
proceeding with respect to such infringement of such Patents. If such Party fails to bring an action or proceeding within a period
of [ * ] after receiving notice of that infringement, then the other Party may bring and control
any such action. If a Party brings any such action or proceeding, the other Party agrees to be
joined as a party plaintiff and to give the first Party reasonable assistance and authority to file
and prosecute the suit. The other Party also may choose to be represented in any such action by
counsel of its own choice, at its own expense.

     The costs and expenses of the Party bringing suit under this Section shall be reimbursed first
out of any damages or other monetary awards recovered in such action. Any remaining damages shall
be retained by the Party that brought the suit, provided that, if the Party selling the relevant
Royalty-Bearing Product brought the suit, [ * ].

     No settlement or consent judgement or other voluntary final disposition of a suit under this
Section may be entered into without the joint consent of Onyx and Miles.

     21.3 Third Party Claims Against Collaboration Compound. If a Third Party asserts that a
patent or other right owned by it is infringed by the manufacture, use or sale of any Collaboration
Compound, the Party first obtaining knowledge of such a claim shall immediately provide the other
Party notice of such claim and the related facts in reasonable detail. In such event, the Parties
shall determine how best to control the defense of any such claim with respect to such
Collaboration Compounds. In the event the Parties cannot agree on the defense of any such claim, [
* ] shall have the right to control such defense with respect to the Collaboration Compounds in
issue in all countries [ * ]; [ * ] shall have the right to control such defense. Onyx and Miles
will cooperate in defending all such actions. Each party shall have the right to be represented
separately by counsel of its own choice. The entity that controls the defense of a given claim
with respect to Collaboration Products shall control settlement of such claim; provided, however,
that no settlement shall be entered into without the consent of a Party if such settlement would
adversely affect the interests of such Party.

     21.4 Allocation of Expense; Collaboration Compound or Product. The expenses of patent
defense, settlement and judgements pursuant to Section 21.3, with respect to sales of Collaboration
Products, shall be a shared expense of the Parties. Such costs incurred after the designation of a
Product for Co-Development but prior to Regulatory Approval shall be [ * ]. Such costs incurred
following Regulatory Approval shall be [ * ].

     21.5 Third Party Claims Relating to Royalty-Bearing Products. Where use of Patents or
Know-How of one Party results in a claim for patent infringement against the other Party for its
sales of Royalty-Bearing Products, then the selling Party shall have the first right, but not
obligation, to defend such claim, at its own expense, and to control settlement of such claim;
provided, however, that no settlement shall be entered into without the written consent of the
non-selling Party if such settlement would adversely affect its interests. In the event the

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selling Party does not undertake such defense within [ * ] of notice of such claim, then the other
Party may defend and settle such claim, at its own expense; provided, however, that no settlement
shall be entered into without the written consent of the selling Party if such settlement would
adversely affect its interests.

     One-time settlement payments and on-going Third Party Royalties required in respect of the
manufacture, use, or sale of Royalty-Bearing Products hereunder may be offset against royalties
owed the other Party, but only to the extent permitted under Section 16.8.

Article 22 — Confidentiality

     22.1 Confidentiality; Exceptions.

     (a) Except to the extent expressly authorized by this Agreement or otherwise agreed in
writing, the Parties agree that, during the periods set forth in (b), the receiving Party
shall keep confidential and shall not publish or otherwise disclose or use for any purpose,
other than as provided for in this Agreement, any Information, and other materials furnished
to it by the other Party pursuant to this Agreement (collectively, “Confidential
Information”).

     (b) The restrictions in Section 22.1(a) shall apply:

          (i) during the Research Term and for seven years thereafter, as to all Confidential
Information except to such Information pursuant to (ii) below; and

          (ii) with respect to Confidential Information directly relating to Collaboration
Compounds, Collaboration Products, or Royalty-Bearing Products in research, development or
being marketed, for so long as such products remain in research, development or being
marketed and for 5 years thereafter.

     (c) The restrictions under this Section 22.1 shall not apply to the extent that it can
be established by the receiving Party that such Confidential Information:

          (i) was already known to the receiving Party, other than under an obligation of
confidentiality, at the time of disclosure by the other Party;

          (ii) was generally available to the public or otherwise part of the public domain at
the time of its disclosure to the receiving Party;

          (iii) became generally available to the public or otherwise part of the public domain
after its disclosure and other than through any act or omission of the receiving Party in
breach of this Agreement; or

          (iv) was disclosed to the receiving Party, other than under an obligation of confidentiality,
by a third party who had no obligation to the disclosing Party not to disclose such information to
others.

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     22.2 Authorized Disclosure. Each Party may disclose Confidential Information hereunder to the
extent such disclosure is reasonably necessary in filing or prosecuting patent applications,
prosecuting or defending litigation, complying with applicable governmental regulations or
conducting preclinical or clinical trials, provided that if a Party is required by law or
regulation to make any such disclosure of the other Party’s Confidential Information it will,
except where impracticable for necessary disclosures, (for example, in the event of medical
emergency), give reasonable advance notice to the other Party of such disclosure requirement and,
except to the extent inappropriate in the case of patent applications, will use its reasonable
efforts to secure confidential treatment of such Confidential Information required to be disclosed
and to minimize the extent of such disclosure. Each Party also may disclose to its collaborators,
under confidentiality obligations,

          (i) Confidential Information developed by such Party during the course of this
collaboration, and

          (ii) Confidential Information relating to Royalty-Bearing Products being developed
and/or sold by that Party after such time as the other Party no longer has any right
to return such Royalty-Bearing Product to the collaboration as a Collaboration
Product.

     22.3 Survival. This Article 22 shall survive the termination or expiration of this Agreement.

     22.4 Termination of Prior Agreement. This Agreement supersedes all previous confidentiality
agreements between the Parties and their respective Affiliates. All confidential information
exchanged between the Parties and their respective Affiliates under such agreements shall be deemed
Confidential Information and shall be subject to the terms of this Article 22.

     22.5 Publications. Except as required by law, each Party agrees that it shall not publish or
present the results of studies carried out as part of the Research and Co-Development without the
opportunity for prior review by the other Party. Each Party shall provide to the other the
opportunity to review any proposed abstracts, manuscripts or presentations (including information
to be presented verbally) which relate to the Field of Collaborative Research at least 14 days
prior to their intended submission for publication. The Party receiving such proposed abstract,
manuscript or presentation shall respond in writing within such time period with either approval of
the proposed material or a specific statement of concern, based upon either the need to seek patent
protection or concern regarding competitive
disadvantage arising from the proposal. In the event of concern, the submitting Party agrees not
to submit such abstract or manuscript for publication or to make such presentation until the other
Party is given a reasonable period of time (not to exceed 30 days) to seek patent protection for
any material in such publication or presentation which it believes is patentable or to resolve any
other issues. Each Party also agrees to delete from any such abstract or manuscript any
Confidential Information of the other Party upon its reasonable request based upon the commercial
value of the secrecy of such information.

* * * *

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CHAPTER 7

GENERAL PROVISIONS

Article 23 — Federal State Tax Characterization

     23.1 Tax Partnership.

     (a) To the extent defined below, the arrangement established by this Agreement shall be
treated by the Parties as a partnership solely for federal and state income tax purposes,
under Subchapter K of Chapter I of Subtitle A of the Internal Revenue Code of 1986, as
amended (the “Code”), and any similar state statute. Such tax partnership shall hereinafter
be referred to as the “Tax Partnership.”

     (b) The characterization of the relationship between the Parties as a partnership is
for the tax purposes set forth herein only and not for the purposes of the partnership law
of any state or for any other purpose. The provisions of this Article 23 do not alter or
amend any other provision of this Agreement, but merely establish the income tax accounting
and reporting methods of the arrangement. The provisions of this Article 23 do not create
any additional rights or obligations between the Parties except as expressly provided herein
and do not, and are not intended to, create any rights in third parties against either
Party. This Article 23 shall not be used by either Party to construe the remainder of the
Agreement nor shall either Party seek to introduce this Article 23 into evidence with
respect to any matter arising between them under the remainder of the Agreement except as to
federal and state income tax issues relating to the Tax Partnership activities of the
Parties during the term of this Tax Partnership. In the event of a conflict or
inconsistency between the terms and conditions of this Article 23 and the terms and
conditions of the remainder the Agreement, the terms and conditions of the remainder of the
Agreement shall govern and control, except in respect of federal and state income tax issues
of the Tax Partnership.

     (c) The Tax Partnership’s activities shall consist only of Research, Co-Development,
jointly funded work and commercialization under Sections 9.6(b) and 9.6(c) of this
Agreement, and production and marketing of Collaboration Products and Co-Promotion Products,
as the foregoing terms are defined in Article 1 of this Agreement. Independent Development
activities pursued by one Party, under Sections 12.1 through 12.4 of this Agreement, work
performed independently at a Party’s own expense after the other Party does not accept a
proposal to perform joint preclinical work under Sections 9.6(b) and 9.6(c) of this
Agreement, production and marketing of Royalty-Bearing Products, and activities under the
licenses described in Sections 4.6, 6.1 and 8.1(c) of this Agreement shall not constitute
Tax Partnership activities.

     23.2 Tax Matters Partner. Miles is designated Tax Matters Partner (“TMP”), as defined in
Section 6231(a)(7) of the Code. The TMP shall use its reasonable efforts to comply

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with the responsibilities outlined in this Article 23 and in Sections 6221 through 6233 of the Code (including any Treasury regulations promulgated
thereunder).

     23.3 Tax Returns.

     (a) TMP shall file all federal and state income tax returns required to be filed by the
Tax Partnership. For purposes of the tax filings contemplated by this Article 23, the Tax
Partnership name shall be “Miles-Onyx.”

     (b) TMP shall prepare and submit drafts of all Tax Partnership returns to the Parties
as soon as reasonably practical in advance of the due date to permit review by the Parties
prior to filing. If a Party disagrees with the proposed treatment of an item on the return
prepared by the TMP, the Parties shall promptly seek to resolve the disagreement through
good faith discussions. If the dispute cannot be so resolved, the Parties shall engage the
services of a mutually agreeable nationally recognized law or accounting firm to resolve the
matter. The firm’s decision on such matter shall be binding on the Parties. Such firm’s
fee shall be [ * ]. If the dispute has not been resolved by the due date of the particular
return, the TMP shall timely file the particular return and the content of the return as
filed shall be determined by the TMP in its sole discretion. Upon resolution of the dispute
between the Parties, if such resolution provides for the reporting of any item which is
inconsistent with the manner in which such item was reported on the return as filed by the
TMP, the TMP shall prepare and file an amended return using the agreed basis of reporting.
TMP may file such requests for extensions of time to file any returns as it deems
appropriate.

     (c) The Parties agree to maintain and provide to the TMP all information necessary for
the preparation and support of all Tax Partnership tax returns. Such information shall be
provided to the TMP within a reasonable time and in a reasonable manner by each Party’s
personnel at each Party’s separate expense.

     23.4 Inconsistent Treatment of Partnership Items. If either Party intends to file a notice of
inconsistent treatment under Section 6222(b) of the Code, such Party shall, at least thirty (30)
days prior to the filing of such notice, notify the other Party of such intent and the manner in
which the Party’s intended treatment of a Tax Partnership item is (or may be) inconsistent with the
treatment of that item by the Tax Partnership, and advise the other Party of the reasons therefor.

     23.5 Tax Partnership Elections. The Parties hereby grant TMP the authority to make all
necessary tax elections for the Tax Partnership. In particular, the TMP is authorized to make the
following elections under the Code and regulations and any similar state statutes:

	 	(i)	 	[ * ]
	 
	 	(ii)	 	Adopt the [ * ] accounting;
	 
	 	(iii)	 	Compute the allowance for depreciation, if any, under [ * ]

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	 	(iv)	 	Amortize start-up expenditures, if any, over a [ * ] period in
accordance with Code Section 195(b) and any similar state statutes;
	 
	 	(v)	 	Amortize organization costs, if any, over a [ * ] period in
accordance with Code Section 709(b) and any similar state statutes;
	 
	 	(vi)	 	Treat research and experimentation expenditures as a deduction
[ * ] in accordance with Code Section 174(a)(1); and
	 
	 	(vii)	 	Elect to adjust the basis of the [ * ] pursuant to Code
Sections 734, 743 and 754.

     23.6 Characterization of Certain Payments and Activities. Direct payments made between the
Parties and direct receipt of revenue by one Party shall, when appropriate to effect the intent of
this Article 23, be considered to have been contributed to or received by, as the case may be, and
paid out by, the Tax Partnership. Research activities shall be considered performed by the Parties
as members of the Tax Partnership.

     23.7 Capital Accounts. Tax Partnership capital accounts will be maintained for each Party by
TMP in full compliance with Section 1.704-1(b)(2)(iv) of the Treasury regulations.

     23.8 Tax Partnership Allocations.

     (a) Except as otherwise provided in this Section, the allocation for income tax
purposes of specific items of income, gain, loss, deduction or credit of the Tax
Partnership, as computed for income tax purposes shall be made to the Party receiving the
economic benefit or bearing the economic burden of such items pursuant to this Agreement.
Pursuant to, but not in limitation of, the application of this principle: (i) [ * ] and
(ii) [ * ]. The allocations contemplated by this paragraph shall take into account that the
items being allocated must be computed pursuant to applicable income tax principles, while
the profit and loss proportioned under Chapter 5 of this Agreement are determined in certain
respects on a different basis. For example to the extent a Party is able to claim credit
under Chapter 5 for an expense incurred by an Affiliate that is nondeductible by the Tax
Partnership, there may have to be an allocation to that Party of an equivalent amount of
gross income (solely for income tax purposes) to carry out the intent of this Article 23.
Similarly, to the extent revenue is calculated under Chapter 5 to include [ * ] that is not
includable in the income of the Tax Partnership, an equivalent amount of gross income
(solely for income tax purposes) may have to be allocated to the other Party.

     (b) Notwithstanding paragraph (a) of this Section, all research and experimentation
expenditures, as defined in Code Section 174 and the applicable Treasury regulations, of the
Tax Partnership shall be allocated to [ * ], to the extent [ * ] has provided funds under
this Agreement through the end of the year in which the expenditures were incurred. The
credit for increasing research activities under Code Section 41 available to the Tax
Partnership shall be allocated in the same manner as the expense generating the credit.

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     (c) [ * ] shall be allocated an amount of gross income of the Tax Partnership each year
equal to the amount of distributions received by [ * ] under Section 16.3.

     (d) In accordance with Section 704(c) of the Code and underlying Treasury Regulations,
income, gain, loss and deduction with respect to any property contributed to the Tax
Partnership by a party shall, solely for tax purposes, be allocated among the Parties so as
to take account of any variation between the adjusted basis of such property to the Tax
Partnership for federal income tax purposes and its fair market value as of the date of
contribution.

     (e) Notwithstanding the above paragraphs of this section, the following allocations
shall be made in the following order:

	 	(i)	 	Such special allocation, if any, shall be made
as is necessary to comply with the minimum gain chargeback requirement
in Section 1.704-2 of the Treasury regulations.
	 
	 	(ii)	 	Such special allocation, if any, shall be made
as is necessary to comply with the qualified income offset requirement
in Section 1.704-l(b)(2)(ii)(d) of the Treasury regulations.

     (f) The provisions of paragraph (e) of this Section 23.8 are intended to comply with
certain requirements of the Treasury regulations. To the extent possible, all allocations
in paragraph (e) of this Section 23.8 shall be offset with other such allocations or with
additional special allocations under this paragraph. TMP shall make such special
allocations under this Section 23.8 so that, to the extent possible, each Party’s capital
account equals the amount that would have resulted if no special allocations had been made
under paragraph (e) of this Section 23.8.

     (g) In the event that the Internal Revenue Service (‘IRS’) or the tax authority having
jurisdiction under any state income tax statute does not permit allocations of Tax
Partnership tax items in a manner consistent with the intentions of the Parties as reflected
in this Article 23, and such allocations are not so made, as a result thereof, the Parties
agree to make such equitable adjustments as will place each Party in the same or
substantially the same position, on an after tax basis, as if the allocations had been
permitted. Notwithstanding the above, neither Party shall be required to pay the other
Party any amount under this paragraph except to the extent that and until the proposed
paying Party has benefitted (that is, the paying Party’s income tax payments have been
reduced or its refunds received have been increased) from the reallocation caused by the IRS
or similar state tax agency, and any payments to be made in equitable adjustment under this
paragraph shall be limited to the after tax benefit received by the paying Party as result
of such reallocation (such payments to be adjusted to recognize the tax benefit or detriment
which results from the payment of an equitable adjustment under this paragraph). Such
payment, before adjustment for tax effect, shall bear interest at the overpayment rate
determined under Section 6621(a)(1) of the Code, compounded daily, from the due date
(determined without regard to extensions of time to file) of the

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receiving Party’s corporate income tax return for the taxable year for which reallocation
occurs, to the day immediately preceding the day upon which the payment is made.

     23.9 Liquidation. Upon liquidation of this Tax Partnership pursuant to Code Section 708,
distributions to the Parties shall be made in amounts equal to the positive capital accounts of the
Parties. To the extent necessary to effectuate the economic arrangement established by this
Agreement, transfers effected in connection with any liquidation of the Tax Partnership not
consistent with the Parties’ respective capital accounts shall be considered to be transfers of
distributed property between the Parties subsequent to all liquidating distributions and shall
occur outside of the Tax Partnership.

     23.10 Internal Revenue Service Notices.

     (a) The Parties shall furnish TMP with such information (including, without limitation,
information specified in Section 6230(e) of the Code) as it may reasonably request to permit
it to provide the IRS with sufficient information to allow proper notice from the IRS to the
Parties in accordance with Section 6223 of the Code.

     (b) TMP shall provide to the Parties within a reasonable time copies of all notices,
correspondence and other communications forwarded by the IRS to the TMP or the Tax
Partnership.

     23.11 Tax Partnership Audits and Litigation. If an audit of any of the Tax Partnership’s tax
returns should occur, TMP may, in its reasonable discretion, retain such accountants and tax
lawyers as it deems necessary in response to such audit. The cost of such professionals, as well
as a reasonable charge for the time spent by the TMP on the audit, administrative appeal and, if
necessary, litigation of the issues raised in the audit, shall be borne by [ * ].

Article 24 — Term and Termination

     24.1 Term of Agreement. This Agreement shall commence as of the Effective Date and, unless
sooner terminated as provided herein, shall continue in effect until the latest of

     (a) the end of the Research Term,

     (b) the expiration of the last to expire of the Patents licensed under this
Agreement, or

     (c) the date on which the Parties are no longer entitled to receive a share of
Marketing Profit on any Collaboration Product.

     24.2 Termination for Breach. If either party materially breaches this Agreement during the
Research Term, which breach is not cured within 60 days of written notice thereof from the
non-breaching Party, then all licenses and sublicenses granted the breaching Party under this
Agreement shall terminate, and the breaching Party shall grant to the non-breaching Party an

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exclusive, worldwide, royalty-free license, with
the right to sublicense, under the breaching Party’s Patents and Know-How, to make, have made, use,
have used, sell, and have sold products. The breaching Party shall deliver to the non-breaching
Party such relevant materials relating to such breaching Party’s Know-How as are necessary or
useful to the exercise by the non-breaching Party of the license hereunder. The breaching Party
hereby authorizes, transfers and assigns to the non-breaching Party the right to prosecute,
maintain and defend all jointly owned Patents licensed hereunder, to the exclusion of the breaching
Party within the Field, in the event of such uncured breach. The breaching Party shall be liable
for any damages resulting from its breach, costs and attorneys’ fees, and the non-breaching Party
shall be relieved from its obligations under this Agreement except as provided in Article 22.

     24.3 Termination for Other Reasons. In the event either Party shall:

     (a) become insolvent or bankrupt;

     (b) make an assignment for the benefit of its creditors;

     (c) appoint a trustee or receiver for itself for all or a substantial part of
its property;

     (d) have any case of proceeding commenced or other action taken by or against
itself in bankruptcy;

     (e) seek liquidation, dissolution, a winding-up arrangement, composition or
readjustment of its debts;

     (f) seek any other relief under any bankruptcy, insolvency, reorganization or
other similar aa or law of any jurisdiction, now or hereafter in effect; or

     (g) have issued against itself a warrant of attachment, execution, distraint or
similar process against any substantial part of its property of the other Party;

then within 60 days of the event, the other Party may, at its sole option, either (i) terminate
this Agreement upon thirty (30) days written notice to the other party; or (ii) continue the
performance of this Agreement thereafter.

     24.4 Acquisition of Onyx.

          (a) In the event that (i) Onyx is acquired by another entity by reason of merger,
consolidation or sale of all or substantially all of its assets (except for a reorganization
transaction in which the persons who held majority ownership of Onyx prior to the transaction
continue to hold majority ownership of Onyx, directly or through a parent company, after the
transaction) or (ii) a single entity other than Miles or an Affiliate of Miles acquires ownership
of a majority of the outstanding voting stock of Onyx, without the consent of Miles (in either
case,

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an “Onyx Acquisition”), then within 60 days after the event, Miles may, at its sole option, either
continue this Agreement without change or exercise the rights set forth in subparagraph (b) below.

          (b) In the event of an Onyx Acquisition, Miles may elect to terminate the Research (which
termination shall be effective 60 days following the occurrence of the Onyx Acquisition), terminate
the co-promotion rights of Onyx (including without limitation termination of any co-marketing
rights or co-promotion rights with respect to Products that Miles may have granted to Onyx outside
of the United States), and, except as set forth below, have exclusive development and marketing
rights with respect to Collaboration Compounds. Thereafter, any Collaboration Compound that is
marketed by Miles as a Product shall be a Royalty-Bearing Product for which royalties will be due
under Sections 16.2(a), (b) or (c), as appropriate. Notwithstanding the characterization of such
Products as Royalty-Bearing Products for all purposes of marketing, Onyx (or the acquiring party as
the case may be) shall continue to have the right to fund Co-Development Costs for Collaboration
Compounds so as to increase the royalty rate payable with respect to the sale of the resulting
Products. In the event that Onyx had commenced independent development of a Collaboration Compound
under Sections 7.3, 9.6 or 12.2 prior to the Onyx Acquisition, then Miles may obtain hereunder the
exclusive marketing rights to such compounds only by exercising, within 60 days, its buy-back
rights in accordance with Sections 7.4 or 9.6 (and only if such rights had not previously lapsed).
Otherwise, Onyx shall retain exclusive marketing rights to such Collaboration Compounds as
Royalty-Bearing Products of Onyx.

          (c) In the event of an Onyx Acquisition, the licenses provided for in Section 4.1(a), 4.4(a)
and 4.5 shall survive, and the other licenses provided for in Article 4 shall terminate, except to
the extent necessary for Onyx to develop and market Royalty-Bearing Products of Onyx, as provided
under Section 24.4(b).

     24.5 Surviving Rights. The following provisions of this Agreement shall survive termination
of the Agreement, in addition to any provisions which survive by their terms: Articles 1, 20, 21,
22, 25, 27 and 28.

     24.6 Accrued Rights: Surviving Obligations. Termination, relinquishment or expiration of the
Agreement for any reason shall be without prejudice to any rights which shall have accrued to the
benefit of either party prior to such termination, relinquishment or expiration, including damages
arising from any breach hereunder. Such termination, relinquishment or expiration shall not
relieve either Party from obligations which are expressly indicated to survive termination or
expiration of the Agreement.

Article 25 — Dispute Resolution

     25.1 Disputes. The Parties recognize that disputes as to certain matters may from time to
time arise during the term of this Agreement which relate to either Party’s rights and/or
obligations hereunder. The Parties shall follow the procedures set forth in this Article 25 to
facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual
cooperation and to attempt to avoid litigation between the Parties.

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     Any disputes among the members of the JRDC, or other disputes among the Parties, that cannot
be resolved by good faith negotiation, shall be referred, by written notice from either Party to
the other, to the respective officers of the Parties designated below (or their successors).

     For Miles:    President of the Pharmaceutical Division

     For Onyx:    Chief Executive Officer

Such executive officers shall negotiate in good faith to achieve a resolution to the dispute
referred to them, within 30 days after such notice is received. In the event the designated
executive officers are not able to resolve such dispute within such 30-day period, either Party may
then invoke any other remedies available to it in law or equity. Any dispute or controversy
arising out of or related to this Agreement which is not resolved between the Parties shall be
submitted to a United States state or federal court of competent jurisdiction and appropriate
venue.

Article 26— Representations and Warranties; Exclusivity

     26.1 Representations and Warranties. Each Party hereby represents and warrants to the other
that this Agreement is a legal and valid obligation binding upon such Party and enforceable in
accordance with its terms. The execution, delivery and performance of and the rights granted under
this Agreement by such Party does not conflict with any agreement, instrument or understanding,
written or oral, to which it is a Party or by which it is bound, nor violate any law or regulation
of any court, governmental body or administrative or other agency having jurisdiction over it.

     26.2 Performance By Affiliates. The Parties recognize that each may perform some or all of
its obligations under this Agreement through Affiliates, provided, however, that each Party shall
remain responsible and be guarantor of the performance by such Affiliates and shall cause such
Affiliates to comply with the provisions of this Agreement in connection with such performance.
Each Party waives any obligation on the other Party to seek performance by such Party’s Affiliate
before the other Party may enforce the foregoing guaranty.

     26.3 Exclusivity; Noncompetition Within the Field of Collaborative Research. During the
Research Term, neither Onyx nor Miles shall, directly or indirectly, conduct, have conducted or
fund any research, development, regulatory, manufacturing or commercialization activity with the
Field of Collaborative Research, except pursuant to this Agreement. In addition, during the
Research Term,

     (i) each Party shall disclose to the other on an ongoing basis all of its activities
within the Field of Collaborative Research, and

     (ii) neither Party shall, without the prior consent of the JRDC, hold any discussions
with any Third Party relating to commercial (as opposed to scientific)
activities within the Field of Collaborative Research. Except as specifically provided

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herein, all activities of the Parties outside of the Field and the Field of Collaborative
Research are outside of the scope of this Agreement.

During the Research Term, neither Party shall enter into any corporate strategic partner
transaction in which such agreement is in conflict with this Agreement.

Article 27 — Products Liability and Indemnification

     27.1 Indemnification for Sales of Royalty-Bearing Products. With respect to each
Royalty-Bearing Product in the countries where such product is sold, each Party selling such
Royalty-Bearing Product hereby agrees to defend, indemnify, and hold harmless the other Party and
its directors, officers, employees, and agents from and against any and all suits, claims, actions,
demands, liabilities, damages, costs, expenses and/or loss, including reasonable legal expenses and
attorneys’ fees (“Losses”), resulting directly or indirectly from the manufacture, use, handling,
storage, sale or other disposition of such Royalty-Bearing Products by such Party, or its agents or
sublicensees, except to the extent such Losses result from

          (i) the negligence of the other Party, or

          (ii) actions or claims referred to under Section 21.5 (which are treated thereunder).

In the event that such other Party seeks indemnification under this Section 27.1, it shall inform
the Party selling the Royalty-Bearing Product of such claim as soon as practicable after it
receives notice of the claim, shall permit such selling Party to assume direction and control of
the defense of the claim (including the right to settle the claim solely for monetary
consideration), and shall cooperate as requested (at the expense of such selling Party) in the
defense of the claim.

     27.2 Actions in Respect of Collaboration Products. With respect to each Collaboration Product
in the countries where such product is sold, the Parties agree that all Losses resulting directly
or indirectly from the manufacture, use, handling, storage, sale or other disposition of such
Collaboration Products (“Shared Losses”) shall be Allowable Expenses, except to the extent such
Losses result from

          (i) the negligence of a Party, or

          (ii) actions or claims referred to under Section 21.3 (which are treated
thereunder).

Each Party agrees to notify the other Party promptly upon learning of any claim, action, suit or
demand that may result in a Shared Loss. The JRDC shall determine how to defend any such claim or
action. In the event the JRDC cannot agree on such defense, Onyx shall have the right to defend
all such actions within the United States, and Miles shall have the right to defend all other such
actions.

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     27.3 Indemnification for Negligence. Each Party hereby agrees to defend, indemnify, and hold
harmless the other Party and its directors, officers, employees, and agents from and against any
and all Losses resulting directly or indirectly from the indemnifying Party’s negligence in the
manufacture, use, handling, storage, sale or other disposition of Collaboration Products.

Article 28 — Miscellaneous

     28.1 Assignment.

     (a) Either Party may assign any of its rights or obligations under this Agreement in
any country to any Affiliates; provided, however, that such assignment shall not relieve the
assigning Party of its responsibilities for performance of its obligations under this
Agreement.

     (b) Neither Onyx nor Miles may assign its rights or obligations under this Agreement or
its ownership interest in Onyx Patents or Miles Patents, respectively, or in Patents owned
jointly by Onyx and Miles to a non-Affiliate without the prior written consent of the other
Party, except that (subject to compliance with the provisions of Section 24.4), either Onyx
or Miles may assign this Agreement and its Patents in connection with any merger,
consolidation, or sale of all or substantially all of its assets.

     28.2 Consents Not Unreasonably Withheld. Whenever provision is made in this Agreement for
either Party to secure the consent or approval of the other, that consent or approval shall not
unreasonably be withheld or delayed, and whenever in this Agreement provision is made for one Party
to object to or disapprove a matter, such objection or disapproval shall not unreasonably be
exercised.

     28.3 Retained Rights. Nothing in this Agreement shall limit in any respect the right of
either Party to conduct research and development with respect to and market products outside the
Field using such Party’s technology or intellectual property rights.

     28.4 Force Majeure. Neither Party shall lose any rights hereunder or be liable to the other
Party for damages or losses on account of failure of performance by the defaulting Party if the
failure is occasioned by government action, war, fire, explosion, flood, strike, lockout, embargo,
act of God, or any other similar cause beyond the control of the defaulting Party, provided that
the Party claiming force majeure has exerted all reasonable efforts to avoid or remedy such force
majeure; provided, however, that in no event shall a Party be required to settle any labor dispute
or disturbance.

     28.5 Further Actions. Each Party agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts, as may be necessary or appropriate in order to carry
out the purposes and intent of this Agreement.

     28.6 No Trademark Rights. Except as otherwise provided herein, no right, express or implied,
is granted by the Agreement to use in any manner the name “Onyx” or “Miles”, or any

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other trade name or trademark of the other Party or
its Affiliates in connection with the performance of the Agreement.

     28.7 Notices. All notices hereunder shall be in writing and shall be deemed given if
delivered personally or by facsimile transmission (receipt verified), telexed, mailed by registered
or certified mail (return receipt requested), postage prepaid, or sent by express courier service,
to the Parties at the following addresses (or at such other address for a party as shall be
specified by like notice; provided, that notices of a change of address shall be effective only
upon receipt thereof):

If to Onyx, addressed to:

ONYX PHARMACEUTICALS, INC.

3031 Research Drive, Bldg. A

Richmond, CA 94806

Attention: Chief Executive Officer

Telephone: (510) 222-9700

Telecopy: (510) 222-9758

With copy to:

COOLEY GODWARD CASTRO HUDDLESON & TATUM

Five Palo Alto Square, 4th Floor

Palo Alto, CA 94306

Attention: Robert L. Jones, Esq.

Telephone: (415) 843-5000

Telecopy: (415) 857-0663

If to Miles, addressed to:

MILES INC.

Pharmaceutical Division

400 Morgan Lane

West Haven, CT 06516

Attention: Joseph A. D’Arco, Esq.

Telephone: (203) 937-2401

Telecopy: (203) 937-2795

With a copy to:

JONES, DAY, REAVIS & POGUE

One Mellon Bank Center

31st Floor

500 Grant Street

Pittsburgh, PA 15219

Attention: Charles A. Schliebs

Telephone: (412) 394-7924

Telecopy: (412) 394-7959

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     28.8 Waiver. Except as specifically provided for herein, the waiver from time to time by
either of the Parties of any of their rights or their failure to exercise any remedy shall not
operate or be construed as a continuing waiver of same or of any other of such Party’s rights or
remedies provided in this Agreement.

     28.9 Severability. If any term, covenant or condition of this Agreement or the application
thereof to any Party or circumstance shall, to any extent, be held to be invalid or unenforceable,
then

          (i) the remainder of this Agreement, or the application of such term, covenant or condition to
Parties or circumstances other than those as to which it is held invalid or unenforceable, shall
not be affected thereby and each term, covenant or condition of this Agreement shall be valid and
be enforced to the fullest extent permitted by law; and

          (ii) the Parties hereto covenant and agree to renegotiate any such term, covenant or
application thereof in good faith in order to provide a reasonably acceptable alternative to the
term, covenant or condition of this Agreement or the application thereof that is invalid or
unenforceable, it being the intent of the Parties that the basic purposes of this Agreement are to
be effectuated.

     28.10 Counterparts. This 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.

     28.11 Press Releases. The Parties agree to consult with each other prior to the issuance of
any press releases that discuss aspects of the collaboration and obtain prior consent to any press
release, provided that in any event either Party may make press releases required by law,
including without limitation compliance with securities laws (in which case the disclosing Party
shall still consult with the other Party prior to issuance of the press release). Each Party shall
endeavor to comment immediately on any proposed press release submitted to it by the other Party.

     28.12 Entire Agreement. This Agreement sets forth all the covenants, promises, agreements,
warranties, representations, conditions and understandings between the Parties hereto and
supersedes and terminates all prior agreements and understanding between the Parties. There are no
covenants, promises, agreements, warranties, representations conditions or understandings, either
oral or written, between the Parties other than as set forth herein and therein. No subsequent
alteration, amendment, change or addition to this Agreement shall be binding upon the Parties
hereto unless reduced to writing and signed by the respective authorized officers of the Parties.

     28.13 Governing Law. Resolution of all disputes arising out of or related to this Agreement
or the performance, enforcement, breach or termination of this Agreement and any

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remedies relating thereto, shall be governed by and construed under the substantive laws of the State of California,
as applied to Agreements executed and performed entirely in the State of California by residents of
the State of California, without regard to conflicts of law rules and excluding the United Nations Convention on Sale of
Goods.

* * * *

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     In Witness Whereof, the Parties have executed this Agreement in duplicate originals
by their proper officers as of the date and year first above written.

	 	 	 	 	 

	Onyx Pharmaceuticals, Inc.

	 	Miles Inc.
	 
	 	 
	By:  	/s/ Hollings C. Renton

	 	By: 	 /s/ Horst Wallrabe
	 	 

	 	 	 
	 	Title: President and Chief Executive Officer

	 	 	Title: /s/ blank

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EXHIBIT A

Diagram of Collaboration

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EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

	 	 	 	 	 

	PHARMACEUTICALS BG 

International Cooperation 

and Licensing
	 	Cooperation with Onyx in Oncology

Structure of Cooperation
	 	Exhibit A (1)

[ * ]

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EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

	 	 	 	 	 

	PHARMACEUTICALS BG
	 	Cooperation with Onyx in Oncology
	 	Exhibit A (2)
	International Cooperation
	 	Ownership of compounds during	 	 
	and Licensing
	 	and after the RESEARCH TERM	 	 

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

	 	 	 	 	 

	PHARMACEUTICALS BG
	 	Cooperation with Onyx in Oncology
	 	Exhibit A (3)
	International Cooperation
	 	Ownership of compounds during	 	 
	and Licensing
	 	and after the RESEARCH TERM	 	 

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

EXHIBIT B

Field of Collaborative Research

Programs:

[ * ]

Targets:

[ * ]

Assays:

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

EXHIBIT C

Research Plan

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

[ * ] Year Research Plan

	 	 	 

	Onyx
	 	Miles

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

Screening [ * ]

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

Profiles: [ * ]

Compounds

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.

 

 

EXHIBIT D

Measured Activity Qualifying as “ras Positive” Inhibition

[ * ]

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BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406
OF THE SECURITIES EXCHANGE ACT OF 1933, AS AMENDED.exv10w13wv

Exhibit
10.13(v)

Onyx Pharmaceuticals, Inc. 

Stock Unit Grant Notice

(2005 Equity Incentive Plan)

Onyx Pharmaceuticals, Inc. (the “Company”), pursuant to Section 7(c) of the Company’s 2005 Equity
Incentive Plan (the “Plan”), hereby awards to Participant a Stock Unit award for the number of
shares of the Company’s Common Stock set forth below (the “Award”). The Award is subject to all of
the terms and conditions as set forth herein and in the Plan and the Stock Unit Award Agreement
(the “Award Agreement”), both of which are attached hereto and incorporated herein in their
entirety. Capitalized terms not otherwise defined herein shall have the meanings set forth in the
Plan or the Award Agreement. In the event of any conflict between the terms in the Award and the
Plan, the terms of the Plan shall control.

	 	 	 	 
	 	 	 	 
	Participant:
	 	 	 
	 

	 	 	 
	Date of Grant:
	 	 	 
	 

	 	 	 
	Vesting Commencement Date:
	 	 	 
	 

	 	 	 
	Number of Stock Units/Shares:
	 	 	 
	 

	 	 	 
	Payment for Common Stock:

	 	Participant’s services to the Company	 

	 	 	 

	Vesting Schedule:

	 	Subject to the Participant’s Continuous
Service through the date of certification
of achievement of the Performance Goal (as
defined below) by the Company’s
Compensation Committee (the “Certification
Date”), this Award shall vest as follows:
	 
	 	 
	 

	 	 
	 
	 

	 	 
	 
	 

	 	 
	 
	 

	 	 
	 
	 	 
	Performance Goal:

	 	 
	 
	 	 
	Issuance Schedule:

	 	The shares will be issued in accordance with the
issuance schedule set forth in Section 6 of the Award
Agreement.

 

 

	 	 	 

	Withholding
Tax

Election:

	 	Pursuant to Section 11 of the Award Agreement, the
Participant hereby elects and the Company hereby agrees
to allow the Participant, to satisfy to the greatest
extent permitted under the Plan and applicable law the
applicable Withholding Taxes as follows:

	 	 	 	Choose One:
	 
	 	A.	 	Sell to Cover. Through the sale of a number of the shares subject to the Award
as determined in accordance with Section 11 of the Award Agreement and the remittance of
the cash proceeds of such sale to the Company. The Participant directs the Company to make
a cash payment equal to the Withholding Taxes from the cash proceeds of such sale directly
to the appropriate taxing authorities. The Participant has carefully reviewed Section
11 of the Award Agreement, and, Participant hereby represents and warrants that on the date
hereof he or she is not aware of any material, nonpublic information with respect to the
Company or any securities of the Company, is not subject to any legal, regulatory or
contractual restriction which would prevent the Agent (as defined in Section 11 of the
Award Agreement) from conducting sales, does not have, and will not attempt to exercise,
authority, influence or control over any sales of Common Stock effected pursuant to the
Award Agreement, and is entering into the Award Agreement and this election to sell to
cover in good faith and not as part of a plan or scheme to evade the prohibitions of Rule
10b5-1 (regarding trading of the Company’s securities on the basis of material nonpublic
information) under the Exchange Act. It is the Participant’s intent that this election to
sell to cover comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange
Act and be interpreted to comply with the requirements of Rule 10b5-1(c). o
	 
	 	B.	 	Tendering of Cash Payment. The Participant hereby elects to tender to the
Company a cash payment equal to the Withholding Taxes. The Participant direct the Company
to make a cash payment equal to the amount tendered by the Participant directly to the
appropriate taxing authorities. o

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees
to, this Stock Unit Grant Notice, the Award Agreement and the Plan. Participant further
acknowledges that as of the Date of Grant, this Stock Unit Grant Notice, the Award Agreement and
the Plan set forth the entire understanding between Participant and the Company regarding the
acquisition of the Common Stock pursuant to the Award specified above and supersede all prior oral
and written agreements on that subject with the exception of (i) Awards previously granted and
delivered to Participant under the Plan, and (ii) the following agreements only:

	 	 	 
	Other Agreements:
	 	 
	 
	 	 
	Onyx Pharmaceuticals, Inc.

	 	Participant

	 	 	 	 	 	 	 

	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Signature
	 	 	 	Signature
	 
	 	 	 	 	 	 
		Title:

	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
		Date:
	 	 	 	 	 
	 

	 	 

	 	 	 	 

Attachments: Award Agreement and 2005 Equity Incentive Plan

 

 

Onyx Pharmaceuticals, Inc. 

2005 Equity Incentive Plan

Stock Unit Award Agreement

     Pursuant to the Stock Unit Grant Notice (the “Grant Notice”) and this Stock Unit Award
Agreement (the “Agreement”), Onyx Pharmaceuticals, Inc. (the “Company”) has awarded you
(“Participant”) a Stock Unit Award (the “Award”) pursuant to Section 7(c) of the Company’s 2005
Equity Incentive Plan (the “Plan”) for the number of Stock Units/shares indicated in the Grant
Notice. Your Award is granted to you effective as of the Date of Grant set forth in the Grant
Notice for this Award and is subject to the terms set forth herein. Defined terms not explicitly
defined in this Agreement shall have the same meanings given to them in the Plan. The details of
your Award, in addition to those set forth in the Grant Notice, are as follows.

     1. Grant of the Award. This Award represents the right to be issued on a future
date one (1) share of Common Stock for each Stock Unit that vests on the applicable vesting date(s)
(subject to any adjustment under Section 3 below) as indicated in the Grant Notice. As of the Date
of Grant, the Company will credit to a bookkeeping account maintained by the Company for your
benefit (the “Account”) the number of Stock Units/shares of Common Stock subject to the Award.
This Award was granted in consideration of your services to the Company. Except as otherwise
provided herein, you will not be required to make any payment to the Company (other than past and
future services to the Company) with respect to your receipt of the Award, the vesting of the
shares or the delivery of the underlying Common Stock.

     2. Vesting. Subject to the limitations contained herein, your Award will vest, if at
all, in accordance with the vesting schedule provided in the Grant Notice, provided that vesting
will cease upon the termination of your Continuous Service. Upon such termination of your
Continuous Service, the shares credited to the Account that were not vested on the date of such
termination will be forfeited at no cost to the Company and you will have no further right, title
or interest in or to such underlying shares of Common Stock.

     3. Number of Shares. The number of Stock Units/shares subject to your Award may be
adjusted from time to time for Capitalization Adjustments, as provided in the Plan. Any additional
Stock Units, shares, cash or other property that becomes subject to the Award pursuant to this
Section 3, if any, shall be subject, in a manner determined by the Board, to the same forfeiture
restrictions, restrictions on transferability, and time and manner of delivery as applicable to the
other Stock Units and shares covered by your Award. Notwithstanding the provisions of this Section
3, no fractional shares or rights for fractional shares of Common Stock shall be created pursuant
to this Section 3. Any fraction of a share will be rounded down to the nearest whole share.

     4. Securities Law Compliance. You may not be issued any Common Stock under your
Award unless the shares of Common Stock are either (i) then registered under the Securities Act, or
(ii) the Company has determined that such issuance would be exempt from the registration
requirements of the Securities Act. Your Award must also comply with other applicable laws and
regulations governing the Award, and you shall not receive such Common

 

 

Stock if the Company determines that such receipt would not be in material compliance with
such laws and regulations.

     5. Transfer Restrictions. Prior to the time that shares of Common Stock have been
delivered to you, you may not transfer, pledge, sell or otherwise dispose of this Award or the
shares issuable in respect of your Award, except as expressly provided in this Section 5. For
example, you may not use shares that may be issued in respect of your Stock Units as security for a
loan. The restrictions on transfer set forth herein will lapse upon delivery to you of shares in
respect of your vested Stock Units.

          (a) Death. Your Award is transferable by will and by the laws of descent and distribution.
In addition, upon receiving written permission from the Board or its duly authorized designee, you
may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory
to the Company and any broker designated by the Company to effect transactions under the Plan,
designate a third party who, in the event of your death, shall thereafter be entitled to receive
any distribution of Common Stock or other consideration to which you were entitled at the time of
your death pursuant to this Agreement. In the absence of such a designation, your executor or
administrator of your estate shall be entitled to receive, on behalf of your estate, such Common
Stock or other consideration.

          (b) Domestic Relations Orders. Upon receiving written permission from the Board or its duly
authorized designee, and provided that you and the designated transferee enter into transfer and
other agreements required by the Company, you may transfer your right to receive the distribution
of Common Stock or other consideration hereunder, pursuant to a domestic relations order that
contains the information required by the Company to effectuate the transfer. You are encouraged to
discuss the proposed terms of any division of this Award with the Company prior to finalizing the
domestic relations order to help ensure the required information is contained within the domestic
relations order.

     6. Date of Issuance. 

          (a) Subject to the satisfaction of the withholding obligations set forth in Section 11 of this
Agreement, in the event one or more Stock Units vests, the Company shall issue to you one (1) share
of Common Stock for each Stock Unit that vests on the applicable vesting date(s) (subject to any
adjustment under Section 3 above). The issuance date determined by this paragraph is referred to
as the “Original Issuance Date”. If the Original Issuance Date falls on a date that is not a
business day, delivery shall instead occur on the next following business day.

          (b) Notwithstanding the foregoing, if on the Original Issuance Date: (i) either (A) you are
subject to the Company’s policy permitting certain individuals to sell shares only during certain
“window” periods and such Original Issuance Date does not fall during such “window” period or
exception from the “window period” (such as a sale pursuant to the “Sell to Cover” election or
other 10b5 trading plan) or (B) you are otherwise unable to sell shares of the Company’s Common
Stock in the public market without violating applicable laws/regulations or incurring material
penalties under applicable laws/regulations, and (ii) (A) you have not elected “Sell to Cover”
under Section 11 below and (B) the Company has elected not to satisfy its tax

 

 

withholding obligations by withholding shares from your distribution, then such shares shall
not be delivered on such Original Distribution Date and shall instead be delivered on, as
applicable, (x) the first business day of the next occurring open “window” period and (y) the first
business day the when you are able to sell shares of the Company’s Common Stock in the open market
without violation/material penalty, as applicable, but in no event later than the fifteenth (15th)
day of the third (3rd) calendar month of the calendar year following the calendar year in which the
Stock Units/shares of Common Stock originally ceased to be subject to a “substantial risk of
forfeiture” (as defined for purposes of Treasury Regulation Section 1.409A-1(b)(4)).

          (c) In all cases, the delivery of shares under this Award is intended to comply with Treasury
Regulation Section 1.409A-1(b)(4) and shall be construed and administered in such a manner. If it
is determined that the delivery of shares under this Award does not comply with Treasury Regulation
Section 1.409A-1(b)(4), shares issued under this Award shall be delivered not later than December
31 of the calendar year in which the Stock Units/shares ceased to be subject to a “substantial risk
of forfeiture” in accordance with Treasury Regulation 1.409A-3(a)(4).

          (d) The form of delivery (e.g., a stock certificate or electronic entry evidencing such
shares) shall be determined by the Company.

     7. Dividends. You shall receive no benefit or adjustment to your Award with respect
to any cash dividend, stock dividend or other distribution that does not result from a
Capitalization Adjustment; provided, however, that this sentence shall not apply with respect to
any shares of Common Stock that are delivered to you in connection with your Award after such
shares have been delivered to you.

     8. Restrictive Legends. The shares of Common Stock issued under your Award shall be
endorsed with appropriate legends as determined by the Company.

     9. Execution of Documents. You hereby acknowledge and agree that the manner selected
by the Company by which you indicate your consent to your Grant Notice is also deemed to be your
execution of your Grant Notice and of this Agreement. You further agree that such manner of
indicating consent may be relied upon as your signature for establishing your execution of any
documents to be executed in the future in connection with your Award.

     10. Award not a Service Contract.

          (a) Your Continuous Service with the Company or an Affiliate is not for any specified term and
may be terminated by you or by the Company or an Affiliate at any time, for any reason, with or
without cause and with or without notice. Nothing in this Agreement (including, but not limited
to, the vesting of your Award or the issuance of the shares subject to your Award), the Plan or any
covenant of good faith and fair dealing that may be found implicit in this Agreement or the Plan
shall: (i) confer upon you any right to continue in the employ of, or affiliation with, the
Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an Affiliate
regarding the fact or nature of future positions, future work assignments, future compensation or
any other term or condition of employment or affiliation;

 

 

(iii) confer any right or benefit under this Agreement or the Plan unless such right or
benefit has specifically accrued under the terms of this Agreement or Plan; or (iv) deprive the
Company of the right to terminate you at will and without regard to any future vesting opportunity
that you may have.

          (b) The Company has the right to reorganize, sell, spin-out or otherwise restructure one or
more of its businesses or Affiliates at any time or from time to time, as it deems appropriate (a
"reorganization”). Such a reorganization could result in the termination of your Continuous
Service, or the termination of Affiliate status of your employer and the loss of benefits available
to you under this Agreement, including but not limited to, the termination of the right to continue
vesting in the Award. This Agreement, the Plan, the transactions contemplated hereunder and the
vesting schedule set forth herein or any covenant of good faith and fair dealing that may be found
implicit in any of them do not constitute an express or implied promise of continued engagement as
an employee or consultant for the term of this Agreement, for any period, or at all, and shall not
interfere in any way with the Company’s right to conduct a reorganization.

     11. Withholding Obligations. 

          (a) At the time your Award is granted, or at any time thereafter as requested by the Company,
you hereby authorize any required withholding from the Common Stock issuable to you and/or
otherwise agree to make adequate provision in cash for any sums required to satisfy the federal,
state, local and foreign tax withholding obligations of the Company or any Affiliate which arise in
connection with your Award (the “Withholding Taxes”). Additionally, the Company may, in its sole
discretion, satisfy all or any portion of the Withholding Taxes obligation relating to your Award
by any of the following means or by a combination of such means: (i) withholding from any
compensation otherwise payable to you by the Company; (ii) causing you to tender a cash payment;
(iii) permitting you to enter into a “same day sale” commitment with a broker-dealer that is a
member of the Financial Industry Regulatory Authority (a “FINRA Dealer”), which shall initially be
E*Trade, whereby you irrevocably elect to sell the portion of the shares to be delivered under the
Award necessary so as to satisfy the Withholding Taxes and whereby the FINRA Dealer irrevocably
commits to forward the proceeds necessary to satisfy the Withholding Taxes directly to the Company
and/or its Affiliates or (iv) withholding shares of Common Stock from the shares of Common Stock
issued or otherwise issuable to you in connection with the Award with a Fair Market Value (measured
as of the date shares of Common Stock are vested or are issued, as applicable) equal to the amount
of such Withholding Taxes; provided, however, that the number of such shares of Common Stock so
withheld shall not exceed the amount necessary to satisfy the Company’s required tax withholding
obligations using the minimum statutory withholding rates for federal, state, local and foreign tax
purposes, including payroll taxes, that are applicable to supplemental taxable income.

          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to deliver to you any Common Stock.

 

 

          (c) In the event the Company’s obligation to withhold arises prior to the delivery to you of
Common Stock or it is determined after the delivery of Common Stock to you that the amount of the
Company’s withholding obligation was greater than the amount withheld by the Company, you agree to
indemnify and hold the Company harmless from any failure by the Company to withhold the proper
amount.

          (d) In the event that you elect to enter into a “sell to cover” commitment pursuant to Section
15(a)(iii) above by electing the “Sell to Cover” box on the Grant Notice, you hereby acknowledge
and agree to the following:

	 	i)	 	I hereby appoint E*Trade as my agent (the “Agent”), and authorize the Agent,
to:

	 	(1)	 	Sell on the open market at the then prevailing market price(s), on my
behalf, as soon as practicable on or after each date on which Shares vest, the
number (rounded up to the next whole number) of the shares of Common Stock to be
delivered to me in connection with the vesting of those Shares sufficient to
generate proceeds to cover (1) the Withholding Taxes that I am required to pay
pursuant to the Plan and this Award Agreement as a result of the Shares vesting (or
being issued, as applicable) and (2) all applicable fees and commissions due to, or
required to be collected by, the Agent with respect thereto; and
	 
	 	(2)	 	Remit any remaining funds to me.

	 	ii)	 	I hereby authorize the Company and the Agent to cooperate and communicate with
one another to determine the number of Shares that must be sold pursuant to this
Section 11(d).
	 
	 	iii)	 	I understand that the Agent may effect sales as provided in this Section 11(d)
in one or more sales and that the average price for executions resulting from bunched
orders will be assigned to my account. In addition, I acknowledge that it may not be
possible to sell shares of Common Stock as provided by in this Section 11(d) due to (i)
a legal or contractual restriction applicable to me or the Agent, (ii) a market
disruption, or (iii) rules governing order execution priority on the national exchange
where the Common Stock may be traded. In the event of the
Agent’s inability to sell shares of Common Stock, I will continue to be responsible for the timely payment to the
Company of all federal, state, local and foreign taxes that are required by applicable
laws and regulations to be withheld, including but not limited to those amounts
specified in this Section 11(d).
	 
	 	iv)	 	I acknowledge that regardless of any other term or condition of this Section
11(d), the Agent will not be liable to me for (a) special, indirect, punitive,
exemplary, or consequential damages, or incidental losses or damages of any kind, or
(b) any failure to perform or for any delay in performance that results from a cause or
circumstance that is beyond its reasonable control.
	 
	 	v)	 	I hereby agree to execute and deliver to the Agent any other agreements or
documents as the Agent reasonably deems necessary or appropriate to carry out the
purposes and

 

 

	 	 	 	intent of this Section 11(d). The Agent is a third-party beneficiary of this Section
11(d).
	 
	 	vi)	 	This Section 11(d) shall terminate not later than the date on which all
Withholding Taxes arising in connection with the vesting of my Award have been
satisfied.

     12. Tax Consequences. The Company has no duty or obligation to minimize the tax
consequences to you of this Award and shall not be liable to you for any adverse tax consequences
to you arising in connection with this Award. You are hereby advised to consult with your own
personal tax, financial and/or legal advisors regarding the tax consequences of this Award and by
signing the Grant Notice, you have agreed that you have done so or knowingly and voluntarily
declined to do so. You understand that you (and not the Company) shall be responsible for your own
tax liability that may arise as a result of this investment or the transactions contemplated by
this Agreement.

     13. Unsecured Obligation. Your Award is unfunded, and as a holder of a vested Award,
you shall be considered an unsecured creditor of the Company with respect to the Company’s
obligation, if any, to issue shares or other property pursuant to this Agreement. You shall not
have voting or any other rights as a stockholder of the Company with respect to the shares to be
issued pursuant to this Agreement until such shares are issued to you pursuant to Section 6 of this
Agreement. Upon such issuance, you will obtain full voting and other rights as a stockholder of
the Company. Nothing contained in this Agreement, and no action taken pursuant to its provisions,
shall create or be construed to create a trust of any kind or a fiduciary relationship between you
and the Company or any other person.

     14. Notices. Any notice or request required or permitted hereunder shall be given in
writing to each of the other parties hereto and shall be deemed effectively given on the earlier of
(i) the date of personal delivery, including delivery by express courier, or (ii) the date that is
five (5) days after deposit in the United States Post Office (whether or not actually received by
the addressee), by registered or certified mail with postage and fees prepaid, addressed at the
following addresses, or at such other address(es) as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto:

	 	 	 	 	 

	 
	 	Company:	 	Onyx Pharmaceuticals, Inc.
	 
	 	 	 	Attn: Stock Administrator
	 
	 	 	 	249 East Grand Avenue
	 
	 	 	 	South San Francisco, CA 94080
	 
	 	 	 	 
	 
	 	Participant:	 	Your address as on file with the Company
	 
	 	 	 	at the time notice is given

     15. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

     16. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be

 

 

transferable by the Company to any one or more persons or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by, the Company’s successors
and assigns.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     17. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.

     18. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating benefits under any employee benefit plan (other than the Plan) sponsored by the
Company or any Affiliate except as such plan otherwise expressly provides. The Company expressly
reserves its rights to amend, modify, or terminate any or all of the employee benefit plans of the
Company or any Affiliate.

     19. Choice of Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the law of the state of California without regard to that state’s conflicts of
laws rules.

     20. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     21. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the

 

 

Securities Act. In addition, you acknowledge receipt of the Company’s Trading Window Policy
and Insider Trading Policy and Policy Against Trading on the Basis of Inside Information.

     22. Amendment. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by you and by a duly authorized representative of the Company.
Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which
specifically states that it is amending this Agreement, so long as a copy of such amendment is
delivered to you, and provided that, except as otherwise expressly provided in the Plan, no such
amendment materially adversely affecting your rights hereunder may be made without your written
consent. Without limiting the foregoing, the Board reserves the right to change, by written notice
to you, the provisions of this Agreement in any way it may deem necessary or advisable to carry out
the purpose of the Award as a result of any change in applicable laws or regulations or any future
law, regulation, ruling, or judicial decision, provided that any such change shall be applicable
only to rights relating to that portion of the Award which is then subject to restrictions as
provided herein.

     23. Compliance with Section 409A of the Code. This Award is intended to comply with
the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4).
Notwithstanding the foregoing, if it is determined that the Award fails to satisfy the requirements
of the short-term deferral rule and is otherwise deferred compensation subject to Section 409A, and
if you are a “Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the
Code) as of the date of your “separation from service” (within the meaning of Treasury Regulation
Section 1.409A-1(h) and without regard to any alternative definition thereunder), then the issuance
of any shares that would otherwise be made upon the date of the separation from service or within
the first six (6) months thereafter will not be made on the originally scheduled date(s) and will
instead be issued in a lump sum on the date that is six (6) months and one day after the date of
the separation from service, with the balance of the shares issued thereafter in accordance with
the original vesting and issuance schedule set forth above, but if and only if such delay in the
issuance of the shares is necessary to avoid the imposition of adverse taxation on you in respect
of the shares under Section 409A of the Code. Each installment of shares that vests is intended to
constitute a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).

* * * * *

     This Stock Unit Award Agreement shall be deemed to be signed by the Company and the
Participant upon the signing by the Participant of the Stock Unit Grant Notice to which it is
attached.

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