Document:

Exclusive License Agreement between Exelixis, Inc. and Merck

 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 
 Exhibit 10.91 
 EXCLUSIVE LICENSE AGREEMENT 

between 

MERCK SHARP & DOHME CORP. 
 and 
 EXELIXIS, INC. 

 TABLE OF CONTENTS 

 

									
	1.	 	DEFINITIONS	  		  	 	1	  
			
	2.	 	LICENSE; EXCLUSIVITY; DEVELOPMENT AND COMMERCIALIZATION	  	 	7	  
				
		 	        2.1	  	Exclusive License Grants	  	 	7	  
				
		 	        2.2	  	Non-Exclusive License Grant	  	 	7	  
				
		 	        2.3	  	Exclusivity	  	 	7	  
				
		 	        2.4	  	Disclosure of EXELIXIS Know-How	  	 	7	  
				
		 	        2.5	  	Development and Commercialization Diligence	  	 	8	  
				
		 	        2.6	  	Development, Commercialization and Regulatory Costs	  	 	8	  
				
		 	        2.7	  	Excused Performance	  	 	8	  
				
		 	        2.8	  	No Implied License; MERCK Covenants	  	 	8	  
			
	3.	 	CONFIDENTIALITY; PUBLICITY AND PUBLICATION	  	 	9	  
				
		 	        3.1	  	Nondisclosure Obligation	  	 	9	  
				
		 	        3.2	  	Publicity and/or Use of Names	  	 	10	  
				
		 	        3.3	  	Publication	  	 	10	  
			
	4.	 	PAYMENTS; ROYALTIES AND REPORTS	  	 	10	  
				
		 	        4.1	  	Consideration for License	  	 	10	  
				
		 	        4.2	  	Development and Regulatory Milestone Payments	  	 	11	  
				
		 	        4.3	  	Sales Threshold Milestone Payments	  	 	11	  
				
		 	        4.4	  	Royalties	  	 	11	  
				
		 	        4.5	  	Reports; Payment of Royalty	  	 	12	  
				
		 	        4.6	  	Audits	  	 	12	  
				
		 	        4.7	  	Payment Exchange Rate	  	 	13	  
				
		 	        4.8	  	Income Tax Withholding	  	 	13	  
			
	5.	 	REPRESENTATIONS AND WARRANTIES	  	 	13	  
				
		 	        5.1	  	EXELIXIS Representation and Warranty	  	 	13	  
				
		 	        5.2	  	Mutual Representation and Warranty	  	 	14	  
			
	6.	 	INTELLECTUAL PROPERTY PROVISIONS	  	 	14	  
				
		 	        6.1	  	Ownership	  	 	14	  
				
		 	        6.2	  	Prosecution of Patents	  	 	15	  
				
		 	        6.3	  	Interference, Opposition, Reexamination and Reissue	  	 	16	  

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

							
				
		 	        6.4	  	Enforcement and Defense	  	16
				
		 	        6.5	  	Patent Term Restoration	  	18
			
	 7.
	 	TERM AND TERMINATION	  	18
				
		 	        7.1	  	Term and Expiration	  	18
				
		 	        7.2	  	Termination at Will	  	18
				
		 	        7.3	  	Termination for Cause	  	18
				
		 	        7.4	  	Effect of Expiration or Termination; Survival	  	20
			
	 8.
	 	INDEMNITY	  	20
				
		 	        8.1	  	Indemnification by MERCK	  	20
				
		 	        8.2	  	Indenmnification by EXELIXIS	  	21
				
		 	        8.3	  	Notice of Indemnification Obligation and Defense	  	21
			
	 9.
	 	MISCELLANEOUS	  	21
				
		 	        9.1	  	Force Majeure	  	21
				
		 	        9.2	  	Assignment: Change of Control	  	22
				
		 	        9.3	  	Severability	  	22
				
		 	        9.4	  	Notices	  	22
				
		 	        9.5	  	Applicable Law	  	23
				
		 	        9.6	  	Dispute Resolution	  	23
				
		 	        9.7	  	Entire Agreement; Amendments	  	24
				
		 	        9.8	  	Headings	  	25
				
		 	        9.9	  	Independent Contractors	  	25
				
		 	        9.10	  	Waiver	  	25
				
		 	        9.11	  	Cumulative Remedies	  	25
				
		 	        9.12	  	Waiver of Rule of Construction	  	25
				
		 	        9.13	  	Certain Conventions	  	25
				
		 	        9.14	  	Business Day Requirements	  	25
				
		 	        9.15	  	Counterparts	  	26
	
	 SCHEDULE A         EXELIXIS PATENT RIGHTS

	
	 SCHEDULE B         EXELIXIS PI3Kdelta SPECIFIC
COMPOUNDS

	
	 SCHEDULE C         EXELIXIS COMPOUNDS

	
	 SCHEDULE D         EXELIXIS KNOW-HOW

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 ii 

			
	
	 SCHEDULE E         EXELIXIS RELATED INACTIVE
COMPOUNDS

	
	 SCHEDULE F         PRESS RELEASE

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 iii

 EXCLUSIVE LICENSE AGREEMENT 

THIS AGREEMENT is effective as of December 21, 2011 (the “Effective Date”) between Merck Sharp & Dohme Corp., a
corporation organized and existing under the laws of New Jersey (“MERCK”), and Exelixis, Inc., a corporation organized and existing under the laws of Delaware (“EXELIXIS”). 

RECITALS: 

WHEREAS, EXELIXIS has developed EXELIXIS Technology (as hereinafter defined) and has rights to EXELIXIS Technology; and

 WHEREAS, MERCK desires to obtain a license under the EXELIXIS Technology, upon the terms and conditions set forth
herein, and EXELIXIS desires to grant such a license; 
 NOW, THEREFORE, in consideration of the foregoing premises and
the mutual covenants herein contained, the Parties hereby agree as follows: 
  

	1.	DEFINITIONS 

 Unless
specifically set forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the respective meanings set forth below: 
  

	1.1	“Affiliate” shall mean: (a) any corporation or business entity of which fifty percent (50%) or more of the securities or other
ownership interests representing the equity, the voting stock or general partnership interest are owned, controlled or held, directly or indirectly, by MERCK or EXELIXIS; or (b) any corporation or business entity which, directly or indirectly,
owns, controls or holds fifty percent (50%) (or the maximum ownership interest permitted by law) or more of the securities or other ownership interests representing the equity, the voting stock or, if applicable, the general partnership
interest, of MERCK or EXELIXIS; provided that “Affiliates” of EXELIXIS shall not include the Change of Control Group upon completion of a Change of Control of EXELIXIS, so long as such Change of Control Group has agreed to the
restrictions specified in Section 2.1(c). 

  

	1.2	“Calendar Quarter” shall mean the respective periods of three (3) consecutive calendar months ending on
March 31, June 30, September 30 and December 31. 

  

	1.3	“Calendar Year” shall mean each successive period of twelve (12) months commencing on January 1 and ending on December 31.

  

	1.4	“Change of Control” shall be deemed to occur if a Party is involved in a merger, reorganization or consolidation, or if there is a sale of all
or substantially all of such Party’s assets or business relating to this Agreement, or if a person or group other than the current Controlling person or group shall effectively acquire Control of the management and policies of such Party.

  

	1.5	“Change of Control Group” shall mean with respect to a Party, the person or entity, or group of persons or entities, that is the acquirer of, or a
successor to, a Party in connection with a Change of Control of such Party, together with affiliates of such persons or entities that are not Affiliates of such Party immediately prior to the completion of such Change of Control of such Party.

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 1 

	1.6	“Clinical Trial” shall mean a Phase I Clinical Trial, Phase II Clinical Trial, Phase III Clinical Trial, and/or Post-approval Clinical Trial.

  

	1.7	“Combination Product” shall mean a Product that contains one or more therapeutically active ingredients (other than Royalty Compound) in a fixed
dose combination with a Royalty Compound. Each Combination Product shall be deemed to be a Royalty Product for all purposes of the Agreement. 

  

	1.8	“Compound” shall mean any EXELIXIS Compound, Joint Compound or MERCK Compound and in all cases including [ * ]. 

 

	1.9	“Control”, “Controls” or “Controlled by” shall mean with respect to any item of or right under EXELIXIS Technology,
MERCK Patent Rights, or other intellectual property rights, the possession of (whether by ownership or license, other than pursuant to this Agreement) or the ability of a Party and/or its Affiliates, as the case may be, to grant access to, or a
license or sublicense of, such items or right as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party and/or its Affiliates would be required hereunder to grant
the other Party such access or license or sublicense. 

  

	1.10	“Diligent Effort” shall mean that effort customarily exerted by MERCK with respect to its own products of similar scientific merit and
commercial potential, taking into account, [ * ], and also including the timing and promptness with which such efforts and resources would be applied. The efforts required by MERCK necessary to constitute Diligent Efforts will not be reduced by
consideration of the fact in and of itself, that MERCK has an interest in developing or commercializing pharmaceuticals other than the Royalty Compounds and Royalty Products, that may be marketed for the same therapeutic indications as such Royalty
Compounds and Royalty Products. Diligent Efforts are [ * ]. 

  

	1.11	“EMEA” shall mean the European Medicines Agency (a cross-national Regulatory Authority in the European Union) and any successor governmental
authority having substantially the same function. 

  

	1.12	“EXELIXIS Compound” shall mean: (a) any PI3Kdelta Specific Compound that is Controlled by EXELIXIS as of the effective date of the
Agreement and is listed on Schedule B; (b) any PI3Kdelta Specific Compound that is claimed or covered by the EXELIXIS Patent Rights listed on Schedule A; and/or (c) any small molecule compound that is listed on Schedule C, which consists
of compounds that are [ * ] from EXELIXIS’ PI3Kdelta program that are [ * ]. For clarity, any PI3Kdelta Specific Compounds that are [ * ] shall [ * ]. 

 

	1.13	“EXELIXIS Know-How” shall mean: 

  

	 	(a)	PI3Kdelta specific [ * ] and other know-how Controlled by EXELIXIS that is not generally known, and is necessary or useful to MERCK to research, develop, make, have
made, use, import, export, sell and/or offer for sale Compounds and Products in the Territory for use in the Field, including but not limited to, those items listed in Schedule D; 

 

	 	(b)	all [ * ] listed on Schedule C; and 

  

	 	(c)	those [ * ] that are related [ * ] and that are listed in Schedule E. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 2 

 For avoidance of doubt and without limiting the foregoing, to the extent it is legally able
to do so, EXELIXIS shall provide to MERCK [ * ] regarding PI3K activity developed by EXELIXIS as of the Effective Date with respect to the EXELIXIS Compounds and the compounds listed on Schedule C (such [ * ] shall be provided as part of the
know-how disclosure described in Section 2.4). 
  

	1.14	“EXELIXIS Patent Rights” shall mean those Patent Rights included in Schedule A and all Patent Rights that are Controlled by EXELIXIS and that
claim or cover: (a) any EXELIXIS Compound; (b) PI3Kdelta [ * ], (c) methods of use of PI3Kdelta Specific Compounds, and/or (d) manufacturing and formulation technology useful for Compound or Product. 

 

	1.15	“EXELIXIS Product” shall mean any pharmaceutical product preparation in final form for sale for use in the Field that contains or comprises an
EXELIXIS Compound including all dosage forms, formulations and line extensions thereof. 

  

	1.16	“EXELIXIS Technology” shall mean EXELIXIS Patent Rights, EXELIXIS Know-How, and EXELIXIS’ interest in Joint Technology.

  

	1.17	“Field” shall mean all therapeutic, diagnostic or prophylactic uses in humans and animals. 

 

	1.18	“Filing” of an NDA shall mean the acceptance by a Regulatory Authority of an NDA for filing. 

 

	1.19	“First Commercial Sale” shall mean, with respect to any Product, the first sale for end use or consumption of such Product in a country after
all required approvals, including Regulatory Approval, have been granted by the Regulatory Authority of such country. 

  

	1.20	“IND” shall mean an Investigational New Drug application, Clinical Study Application, Clinical Trial Exemption, or similar application or
submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority. 

 

	1.21	“IND-Enabling GLP Toxicology Study” shall mean a genotoxicity, acute toxicology, safety pharmacology or sub-chronic toxicology study, in species
that satisfies applicable regulatory requirements, using applicable GLP, and meets the standard necessary for submission as part of an IND filing with a Regulatory Authority. 

 

	1.22	“Indication” shall mean [ * ] prophylactic and/or therapeutic purpose for which the Product is developed [ * ] (e.g., [ * ] would be a
single Indication, [ * ]. However [ * ] shall be considered a different Indication. 

  

	1.23	“Information” shall mean any and all information and data, including without limitation all EXELIXIS Know-How, MERCK Know-How, and all other
scientific, pre-clinical, clinical, regulatory, manufacturing, marketing, financial and commercial information or data, whether communicated in writing or orally or by any other method, which is provided by one Party to the other Party in connection
with this Agreement. 

  

	1.24	“Initiates”, “Initiated” or “Initiation” shall mean, with respect to Section 1.35 and/or a milestone
event as set forth in Section 4.2, the administration of the first dose to an animal in an IND-Enabling GLP Toxicology Study or, a patient or subject in a Clinical Trial. 

 

	1.25	“Joint Compound” shall mean any PI3Kdelta Specific Compounds that are discovered or invented jointly by, or on behalf of, MERCK and EXELIXIS.

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 3 

	1.26	“Joint Know-How” shall mean unpatented PI3Kdelta Specific Compound(s) or PI3Kdelta enzyme assays and techniques and other know-how that is
discovered or invented jointly by or on behalf of MERCK and EXELIXIS, that is not generally known, and that is necessary or useful to MERCK to develop, make, have made, use, import, export, sell and/or offer for sale Compounds and Products in the
Territory for use in the Field. 

  

	1.27	“Joint Patent Rights” shall mean all Patent Rights that are Controlled jointly by MERCK and EXELIXIS and that claim or cover: (a) any Joint
Compound; (b) PI3Kdelta [ * ]; (c) methods of use of PI3Kdelta Specific Compounds; and/or (d) PI3Kdelta Specific Compound manufacturing and formulation, in each case, that is developed or invented jointly by or on behalf of EXELIXIS
and MERCK. 

  

	1.28	“Joint Product” shall mean any pharmaceutical product preparation in final form for sale for use in the Field that contains or comprises a Joint
Compound including all dosage forms, formulations and line extensions thereof. 

  

	1.29	“Joint Technology” shall mean Joint Patent Rights and Joint Know-How. 

 

	1.30	“Major European Country” shall mean any one of the following countries: [ * ]. 

 

	1.31	“MERCK Compound” shall mean any PI3Kdelta Specific Compound that is: (a) Controlled by MERCK during the term of the Agreement; and/or
(b) claimed or covered by MERCK Patent Rights; but excluding any [ * ] acquired by [ * ] at any time [ * ]. 

  

	1.32	“MERCK Compound Period” shall mean the period from [ * ] until [ * ], unless the Agreement is terminated earlier. 

 

	1.33	“MERCK Know-How” shall mean any information and materials, including but not limited to, discoveries, improvements, processes, methods,
protocols, formulas, data, inventions (including without limitation MERCK’s rights in Joint Technology), know-how and trade secrets, patentable or otherwise, which during the term of this Agreement: (a) are in MERCK’s Control;
(b) are not generally known; and (c) are in MERCK’s opinion necessary to EXELIXIS in the performance of its obligations under this Agreement. 

 

	1.34	“MERCK Patent Rights” shall mean all Patent Rights Controlled by MERCK that claim or cover: (a) any PI3Kdelta Specific Compound;
(b) PI3Kdelta [ * ]; (c) methods of use of PI3Kdelta Specific Compound; and/or (d) PI3Kdelta Specific Compound manufacturing and formulation. 

 

	1.35	“MERCK Royalty Compound” shall mean any MERCK Compound for which [ * ]. 

 

	1.36	“MERCK Royalty Product” shall mean any pharmaceutical product preparation in final form for sale for use in the Field that contains or comprises
a MERCK Royalty Compound including all dosage forms, formulations and line extensions thereof. 

  

	1.37	“NDA” shall mean a New Drug Application, Worldwide Marketing Application, Marketing Application Authorization, or similar application or
submission for Regulatory Approval of a Product filed with a Regulatory Authority to obtain marketing approval for a pharmaceutical or diagnostic product in that country or in that group of countries. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 4 

	1.38	“Net Sales” shall mean the gross invoice price (not including value added taxes, sales taxes, or similar taxes) of Royalty Product sold by MERCK
or its Related Parties to the first Third Party after deducting, if not previously deducted, from the amount invoiced or received: 

 (a) trade and quantity discounts other than early pay cash discounts; 

(b) returns, rebates, chargebacks and other allowances; 
 (c) retroactive price reductions that are actually allowed or granted; 

(d) a fixed amount equal to [ * ] to cover bad debt, early payment cash discounts, transportation and insurance, custom duties, and
other governmental charges; and 
 (e) if applicable as to the Royalty Product sold, MERCK’s standard inventory cost,
using MERCK’s standard internal system for determining such costs across all its products consistently applied, of a Product Delivery Device (as defined below) that is sold with the Royalty Product. A “Product Delivery Device” shall
mean a device or delivery system that is used for administering or delivering a Royalty Product (such as a syringe or specialized drug delivery system) and is packaged and sold with such Royalty Product, such as in a sterile kit. 

With respect to sales of Combination Products, Net Sales for the purpose of determining royalties owed for sales of such Combination
Product shall be calculated by multiplying the total Net Sales of the Combination Product by the fraction A/(A+B), where A is the average gross invoice price in the applicable country in the Territory of the Royalty Product sold separately in the
same formulation and dosage, and B is the sum of the average gross invoice prices in the applicable country in the Territory of all other therapeutically active ingredients in the Combination Product sold separately in the same formulation and
dosage, during the applicable royalty period, provided that such sales are in arms-length transactions and such gross invoice prices are available. In the event that such gross invoice prices are not available in such period, then Net Sales of the
Royalty Product shall be calculated on the basis of the gross invoice price of the Combination Product multiplied by a fraction, the numerator of which shall be [ * ] and the denominator of which shall be [ * ]. The deductions set forth in
paragraphs (a) through (e) above will be applied in calculating Net Sales for a Combination Product. In the event that either Party reasonably believes that the calculation carried out with respect to the Combination Product does not
fairly reflect the value of the Royalty Compound in the Combination Product relative to the other clinically active components in the Combination Product, the Parties shall negotiate in good faith and agree on another, commercially reasonable means
of calculating Net Sales with respect to such Combination Product that fairly reflects the relative contribution, to the total market value of such Combination Product, of the Royalty Compound in the Product. 

 

	1.39	“Party” shall mean MERCK and EXELIXIS. 

  

	1.40	“Patent Rights” shall mean any and all issued patents and pending patent applications (including any provisional applications, continuations,
divisionals, continuations-in-part, re-examinations, reissues, substitutions, confirmations, registrations, re-validations, patents of addition, patent term extensions, supplementary protection certificates and the like, as well as any foreign
counterparts of any of the foregoing). 

  

	1.41	“Phase I Clinical Trial” shall mean a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(a).

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 5 

	1.42	“Phase II Clinical Trial” shall mean a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(b).

  

	1.43	“Phase III Clinical Trial” shall mean a human clinical trial in any country that would satisfy the requirements of 21 CFR 312.21(c).

  

	1.44	“PI3K” shall mean Phosphatidylinositol 3-kinases, a family of enzymes that phosphorylate the 3 position hydroxyl group of the inositol ring of
phosphatidylinositol. Class 1A kinases are composed of a p85 regulatory chain and a p110 catalytic chain, of which there are three (3) isoforms: PI3Kalpha, PI3Kbeta, PI3Kdelta. Class IB kinase is composed of a p101 regulatory chain and a p110
catalytic chain, of which there is one (1) isoform: PI3Kgamma. 

  

	1.45	“PI3Kdelta Specific Compound” shall mean any small molecule compound that meets both of the following requirements: (a) [ * ] inhibits the
activity of PI3Kdelta [ * ] in a biochemical assay for PI3Kdelta activity [ * ]; and (b) in a selectivity panel of multiple targets, demonstrates [ * ] selectivity against PI3Kdelta relative to the following targets: [ * ].

  

	1.46	“Product” shall mean any pharmaceutical product preparation in final form for sale for use in the Field that contains or comprises a Compound
including all dosage forms, formulations and line extensions thereof. 

  

	1.47	“Prosecute” shall mean in relation to any Patent Rights: (a) prepare and file patent applications and represent applicant(s) or assignee(s) before
relevant patent offices or other relevant authorities during examination, and in appeal processes, or in any equivalent proceedings, (b) to secure the grant of any Patent Rights arising from such patent applications, (c) to maintain in
force any issued Patent Rights (including through payment of any relevant maintenance fees), and (d) to make all decisions with regard to any of the foregoing activities. “Prosecution” has a corresponding meaning.

  

	1.48	“Regulatory Application” shall mean any submission for Regulatory Approval of a Product filed with a Regulatory Authority to obtain marketing
approval for a pharmaceutical product in that country or in that group of countries. 

  

	1.49	“Regulatory Approval” shall mean all approvals from the relevant Regulatory Authority necessary to market and sell a Product in any country
(including without limitation, all applicable pricing and governmental reimbursement approvals even if not legally required to sell Product in a country). 

  

	1.50	“Regulatory Authority” shall mean any applicable government regulatory authority involved in granting approvals for the manufacturing,
marketing, reimbursement and/or pricing of a Product in the Territory, including, in the United States, the United States Food and Drug Administration and any successor governmental authority having substantially the same function.

  

	1.51	“Related Party” shall mean MERCK, its Affiliates, and permitted licensees and sublicensees (which term does not include distributors).

  

	1.52	“Royalty Compounds” shall mean MERCK Royalty Compounds, Joint Compounds, and EXELIXIS Compounds. 

 

	1.53	“Royalty Products” shall mean MERCK Royalty Products, Joint Products, and EXELIXIS Products. 

 

	1.54	“Territory” shall mean all of the countries in the world, and their territories and possessions. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 6 

	1.55	“Third Party” shall mean an entity other than MERCK and its Related Parties, and EXELIXIS and its Affiliates. 

 

	1.56	“Valid Patent Claim” shall mean any claim of an issued and unexpired Patent Rights included within the EXELIXIS Patent Rights, Joint Patent
Rights, or MERCK Patent Rights that, in each case, claim the applicable Compound as a composition of matter and which has not been revoked or held unenforceable or invalid by a decision of a court or other governmental agency of competent
jurisdiction (which decision is not appealable or has not been appealed within the time allowed for appeal), and which claim has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or
otherwise. 

  

	2.	LICENSE; EXCLUSIVITY; DEVELOPMENT AND COMMERCIALIZATION 

  

	2.1	Exclusive License Grants 

 Subject to the terms and conditions of this Agreement: 
 (a) EXELIXIS hereby grants
to MERCK an exclusive, royalty-bearing license, with the right to sublicense, under the EXELIXIS Technology to research, develop, make, have made, import, use, offer for sale and sell Compounds and /or Products in the Territory for use in the Field.
Such license grant shall be exclusive even as to EXELIXIS. 
 (b) EXELIXIS hereby grants to MERCK an exclusive, royalty-free
license, with the right to sublicense, under the EXELIXIS Technology for research purposes in order to identify, derivatize, pre-clinically develop, make, have made and use Compounds. For clarity, this research license would allow MERCK to [ * ] for
the purpose of identifying, derivatizing, making and having made Compounds. 
 (c) In order to provide MERCK with the exclusive
licenses set forth in this Section 2.1 EXELIXIS will not [ * ], but rather will [ * ] that [ * ] so that [ * ] or [ * ], including without limitation [ * ], [ * ] during the term of the Agreement, provided that [ * ]. 

 

	2.2	Non-Exclusive License Grant 

 In the event that the [ * ] would infringe during the term of this Agreement a claim of issued letters patent which [ * ], EXELIXIS hereby grants to MERCK, to the extent EXELIXIS is legally able to do so,
a non-exclusive, sublicensable, royalty-free license in the Territory under [ * ] for MERCK and its Related Parties to [ * ]. 
  

	2.3	Exclusivity 

During the term of this Agreement, EXELIXIS and/or its Affiliates shall not (by itself or with any Third Party) [ * ]; provided, however,
that if [ * ], and [ * ], EXELIXIS may [ * ]. 
  

	2.4	Disclosure of EXELIXIS Know-How 

 Subject to all applicable provisions of this Agreement, EXELIXIS shall begin disclosing to MERCK, promptly following the Effective Date, all EXELIXIS Know-How existing as of the Effective Date, and

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 7 

 
EXELIXIS shall complete such disclosure no later than [ * ] following the Effective Date. All such EXELIXIS Know-How shall be delivered in electronic format, where available, and shall be in
English. During such [ * ] period, EXELIXIS will make its and its Affiliates’ employees and consultants available to MERCK for consultation as reasonably required by MERCK in order to ensure an orderly transition to MERCK of all such EXELIXIS
Know-How. No later than [ * ] after the end of such [ * ] period, and at MERCK’s reasonable request, there shall be a meeting at EXELIXIS between such MERCK and EXELIXIS representatives for EXELIXIS to answer any additional questions regarding
the orderly transition to MERCK of all such EXELIXIS Know-How. Each Party shall bear its own costs in performing any activities pursuant to this Section 2.4. 
  

	2.5	Development and Commercialization Diligence 

 MERCK shall use Diligent Efforts to research, develop and commercialize of at least one Royalty Compound and/or Royalty Product. Beginning [ * ] after the Effective Date, and every [ * ] thereafter until
the first approval of a Royalty Product in the United States, EMEA or Japan, MERCK shall submit to EXELIXIS a written report in reasonably sufficient detail describing the research, development, manufacturing and commercialization progress performed
by or on behalf of MERCK on Royalty Compounds and/or Royalty Products. If reasonably necessary for EXELIXIS to exercise its rights under this Agreement, EXELIXIS may request that MERCK provide more detailed information and data regarding such
reports by MERCK, and MERCK shall promptly provide EXELIXIS with information and data as is reasonably related to such request, at EXELIXIS’ expense. All such reports shall be considered Information of MERCK subject to Article 3. 

 

	2.6	Development, Commercialization and Regulatory Costs 

 (a) After the Effective Date of the Agreement, MERCK will be responsible for all costs and activities relating to research, development and regulatory affairs of Compounds and Products, except that
EXELIXIS would bear its own costs to transfer to MERCK the licensed EXELIXIS Technology. 
 (b) After the Effective Date of the
Agreement, MERCK will be responsible for all costs and activities relating to commercialization and manufacturing of Compounds and Products. 
  

	2.7	Excused Performance 

The obligation of MERCK with respect to any Product under Section 2.5 are [ * ], and the obligation of MERCK to develop or market any
such Product shall be delayed or suspended so long as [ * ]. 
  

	2.8	No Implied Licenses; MERCK Covenants  

 Except as expressly provided in Sections 2.1, 2.2, and Article 7, nothing in this Agreement grants either Party any right, title or interest in and to the intellectual property rights of the other Party
(either expressly or by implication or estoppel). For clarity, the licenses granted in Sections 2.1 and 2.2 by EXELIXIS to MERCK do not give MERCK any right or license to incorporate into any Product (e.g., as a combination product) any compound
that is Controlled by EXELIXIS and that is not a PI3Kdelta Specific Compound. MERCK hereby covenants that MERCK shall not (and shall ensure that any of its Related Parties shall not) use any EXELIXIS Know-How or EXELIXIS Patent Rights for a purpose
other than that expressly permitted in Sections 2.1, 2.2, and Article 7. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 8 

	3.	CONFIDENTIALITY; PUBLICITY AND PUBLICATION 

  

	3.1	Nondisclosure Obligation 

 All Information disclosed by one Party to the other Party hereunder shall be maintained in confidence by the receiving Party and shall not be disclosed to a Third Party or used for any purpose except as
set forth herein without the prior written consent of the disclosing Party, except to the extent that such Information: 
  

	 	(a)	is known by receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party, as documented by the receiving Party’s business
records; 

  

	 	(b)	is properly in the public domain; 

  

	 	(c)	is subsequently disclosed to the receiving Party by a Third Party who may lawfully do so and is not under an obligation of confidentiality to the disclosing Party;

  

	 	(d)	is developed by the receiving Party independently of Information received from the disclosing Party, as documented by the receiving Party’s business records;

  

	 	(e)	is disclosed to governmental or other regulatory agencies in order to obtain patents on the Patent Rights subject to this Agreement (EXELIXIS Patent Rights, MERCK
Patent Rights and/or Joint Patent Rights) or to gain or maintain approval to conduct clinical trials or to market Product, but such disclosure may be only to the extent reasonably necessary to obtain such patents or approvals; or

  

	 	(f)	is deemed necessary by a MERCK to be disclosed to Related Parties, agents, consultants, and/or other Third Parties for any and all purposes MERCK and/or its Affiliates
deem necessary or advisable in the ordinary course of business in accordance with this Agreement on the condition that such Third Parties agree to be bound by the confidentiality and non-use obligations contained this Agreement; provided the
term of confidentiality for such Third Parties shall be no less than [ * ]. 

 Any combination of features or
disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are published or available to the general public or in the rightful possession of the receiving Party unless the combination itself and
principle of operation are published or available to the general public or in the rightful possession of the receiving Party. 

If a Party receiving Information that is subject to the non-disclosure provisions of this Section 3.1 is required by judicial or
administrative process to disclose such Information, such receiving Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure
obligations. Information that is disclosed by judicial or administrative process shall remain otherwise subject to the confidentiality and non-use provisions of this Section 3.1, and the Party disclosing Information pursuant to law or court
order shall take all steps reasonably necessary, including without limitation obtaining an order of confidentiality, to ensure the continued confidential treatment of such Information. 

 

	3.2	Publicity and/or Use of Names 

 Upon full execution of this Agreement, EXELIXIS may issue a press release as set out in Schedule F. In addition, after full execution of this Agreement each Party may, in its public and confidential
disclosures to Third Parties refer to the name of the other Party and the information set out in Schedule F. Any other publication, news release or other public announcement relating to the execution of this Agreement shall first

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 9 

 
be reviewed and approved by both Parties. Furthermore, no Party shall use the name, trademark, trade name or logo of the other Party, its Affiliates or their respective employees in any
publicity, news release or disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other Party, except as may be required by law, rule or regulation. The foregoing provisions of this
Section 3.2 notwithstanding, each Party shall have the right to disclose information related to the existence and/or terms and conditions of this Agreement as follows: (i) to the extent necessary (as reasonably determined by its legal
counsel) to be disclosed in order to comply with the rules and regulations of the United States Securities and Exchange Commission (or another similar securities exchange authority in Territory); (ii) to existing or potential acquirers or
merger candidates, potential sublicensees or collaborators (to the extent contemplated hereunder), or to Affiliates, each of whom prior to disclosure must be bound by obligations of confidentiality and non-use at least equivalent in scope to those
set forth in this Article 3; (iii) to investment bankers, existing or potential investors, venture capital firms or other financial institutions or investors for purposes of obtaining financing, if such recipients are bound by obligations of
confidentiality and non-use at least equivalent in scope to those set forth in this Article 3; or (iv) in response to a valid order of a court or other governmental body. In each such event set forth in (i) and/or (iv), the Party so
required to disclose shall notify the other Party in advance of any such disclosure, shall provide the other Party with a reasonable opportunity to review and comment on the form and content of any such disclosure, shall disclose only the minimum
information required in order to comply with such disclosure requirements, and shall use commercially reasonable efforts to obtain confidential treatment (to the fullest extent available). 

 

	3.3	Publication 

 The
Parties acknowledge each other’s interest in publishing the results of its research in order to obtain recognition within the scientific community and to advance the state of scientific knowledge. Each Party also recognizes the mutual interest
in obtaining valid patent protection and in protecting business interests and trade secret information. Consequently, except for disclosures permitted pursuant to Section 3.1, in the event that a Party wishes to make a publication containing
any EXELIXIS Technology, such Party shall deliver to the other Party a copy of the proposed written publication at least [ * ] prior to submission for publication. The Parties shall have the right to propose modifications to or delay of the
publication for patent reasons, trade secret reasons or business reasons. If a reviewing Party requests a delay for patent reasons, the other Party shall delay submission for a period of up to [ * ] to enable patent applications protecting each
Party’s rights in such information to be filed in accordance with Article 6 below. Upon expiration of such delay, the Party seeking to publish shall be free to proceed with the publication. If a Party requests modifications to the publication,
the Party seeking to publish shall edit such publication to prevent disclosure of trade secret or proprietary business information prior to submission of the publication. 

 

	4.	PAYMENTS; ROYALTIES AND REPORTS 

  

	4.1	Consideration for License 

 In consideration for the licenses granted herein under the EXELIXIS Technology, upon the terms and conditions contained herein, MERCK shall pay to EXELIXIS twelve million dollars ($12,000,000) within [ *
] of the Effective Date of this Agreement. Such payment shall be non-creditable and non-refundable. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 10 

	4.2	Development and Regulatory Milestone Payments 

 Subject to the terms and conditions in this Agreement, MERCK shall pay to EXELIXIS the following development and regulatory milestone payments with respect to Royalty Compounds or Royalty Products:

  

			
	 Event
	  	Milestone Payment
	[ * ]	  	[ * ]

 Each of the foregoing milestones would be payable [ * ], and [ * ] unless [ * ] as indicated above. 

MERCK shall notify EXELIXIS in writing within [ * ] upon the achievement of each milestone, and shall make the appropriate milestone payment within [ * ]
of the achievement of such milestone. Each such payment shall be non-creditable and non-refundable. 
  

	4.3	Sales Threshold Milestone Payments 

 The following Sale Threshold Milestones shall be payable within [ * ] after the end of the Calendar Year in which such Sales Threshold Milestone was first achieved by Merck or its Related Parties. Sales
Threshold Milestones shall be payable only once regardless of the number of additional Indications developed. 
  

			
	 Aggregate Annual Net Sales (Worldwide)
	  	Payment
	[ * ]	  	[ * ]

  

	4.4	Royalties 

 4.4.1 Patent
Royalties Payable By MERCK Subject to the terms and conditions of this Agreement and except as set forth in Section 4.4.3, MERCK shall pay EXELIXIS, during the Royalty Period, royalties on worldwide annual Net Sales of Royalty Product
in the Territory (for all Indications and without regard to formulation) as follows: 
  

			
	 Royalty
	  	 Net Sales

	[ * ] of:	  	Net Sales in the applicable countries in the Territory in each Calendar Year up to and including [ * ] in worldwide Net Sales
		
	[ * ] of:	  	Net Sales in the applicable countries in the Territory in each Calendar Year for the portion of worldwide Net Sales exceeding [ * ] up to and including [ * ]
		
	[ * ] of:	  	Net Sales in the applicable countries in the Territory in each Calendar Year for the portion of worldwide Net Sales exceeding [ * ]

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 11 

 All royalties shall be calculated based on Net Sales in US Dollars and payment shall be made to EXELIXIS in
US Dollars. All royalties shall be non-creditable and non-refundable (except to the extent provided under Section 4.6). 
 4.4.2
Royalty Period Royalties will be payable on a product-by-product and country-by-country basis from First Commercial Sale of such Royalty Product in such country until the later of: [ * ] (the “Royalty Period”); provided
that, [ * ] a particular Royalty Product in a particular country, the Royalty Period for such Royalty Product in such country shall [ * ]. 

4.4.3 Know-How Royalties Payable By MERCK On Net Sales of Royalty Product which would not infringe a Valid Patent Claim, royalties would be
payable on a product-by-product, country-by-country basis at [ * ] of the applicable royalty rate set forth in Section 4.4.1 [ * ]. 

4.4.4 Compulsory Licenses If a compulsory license is granted to a Third Party with respect to Royalty Product in any country in the
Territory [ * ], then the royalty rate to be paid by MERCK on Net Sales in that country under this Section 4.4 shall be [ * ]. 
 4.4.5
Third Party Licenses In the event that one or more licenses under patents that claim or cover the Royalty Compound as a composition of matter are required from Third Parties in order for MERCK and/or its Related Parties to develop, make,
have made, use, offer to sell, sell or import Royalty Compound or Royalty Product(s) (hereinafter “Third Party Patent Licenses”), [ * ] of the consideration actually paid under such Third Party Patent Licenses by MERCK or its
Related Parties for sale of such Royalty Compound or Royalty Product in a country for a Calendar Quarter shall be creditable against the royalty payments due EXELIXIS by MERCK with respect to the sale of such Royalty Compound or Royalty Products in
such country. Notwithstanding the foregoing, in no event shall the royalty credit set forth above apply to reduce the royalty paid to EXELIXIS for the sale of such Royalty Product by more than [ * ] of the amount otherwise owed under the terms of
Section 4.4.1 for such sale. 
  

	4.5	Reports; Payment of Royalty 

 During the term of the Agreement following the First Commercial Sale of a Product, MERCK shall furnish to EXELIXIS a quarterly written report for the Calendar Quarter showing the Net Sales of all Royalty
Products subject to royalty payments sold by MERCK and its Related Parties in the Territory during the reporting period and the royalties payable under this Agreement. Reports shall be due on the [ * ] following the close of each Calendar Quarter.
Royalties shown to have accrued by each royalty report shall be due and payable on the date such royally report is due. MERCK shall keep (and shall ensure that its Related Parties shall keep) complete and accurate records in sufficient detail to
enable the royalties payable hereunder to be determined, and MERCK shall keep (and shall ensure that its Related Parties shall keep) such records for the period that is the greater of [ * ] or the expiration of the statute of limitations under
applicable tax law. 
  

	4.6	Audits 

  

	 	(a)	Upon the written request of EXELIXIS [ * ], MERCK shall permit an independent certified public accounting firm of nationally recognized standing selected by EXELIXIS
and reasonably acceptable to MERCK, at the EXELIXIS’ expense, to have access during normal business hours to such of the records of MERCK as may be reasonably necessary to verify the accuracy of the royalty reports hereunder for any year ending
not more than [ * ] prior to the date of such request. The accounting firm shall disclose to EXELIXIS only whether the royalty reports are correct or incorrect and the specific details concerning any discrepancies. No other information shall be
provided to EXELIXIS. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 12 

	 	(b)	If such accounting firm correctly identifies a discrepancy made during such period, the appropriate Party shall pay the other Party the amount of the discrepancy within
[ * ] of the date EXELIXIS delivers to MERCK such accounting firm’s written report so correctly concluding, or as otherwise agreed upon by the Parties. The fees charged by such accounting firm shall be paid by EXELIXIS; provided,
however, that if such audit uncovers an underpayment of royalties by MERCK that exceeds [ * ], then the fees of such accounting firm shall be paid by MERCK. 

 

	 	(c)	MERCK shall include in each sublicense granted by it pursuant to this Agreement a provision requiring the sublicensee to make reports to MERCK, to keep and maintain
records of sales made pursuant to such sublicense and to grant access to such records by EXELIXIS’ independent accountant to the same extent required of MERCK under this Agreement. 

 

	 	(d)	Upon the expiration of [ * ] following the end of any year, the calculation of royalties payable with respect to such year shall be binding and conclusive upon
EXELIXIS, and MERCK and its Related Parties shall be released from any liability or accountability with respect to royalties for such year. 

  

	 	(e)	EXELIXIS shall treat all financial information subject to review under this Section 4.6 or under any sublicense agreement in accordance with the confidentiality
and non-use provisions of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement with MERCK and/or its Related Parties obligating it to retain all such information in confidence pursuant to such
confidentiality agreement. 

  

	4.7	Payment Exchange Rate 

 All payments to be made by MERCK to EXELIXIS under this Agreement shall be made in United States dollars and may be paid by check made to the order of EXELIXIS or bank wire transfer in immediately
available funds to such bank account in the United States designated in writing by EXELIXIS from time to time. In the case of sales outside the United States, the rate of exchange to be used in computing the monthly amount of currency equivalent in
United States dollars due EXELIXIS shall be made at the monthly rate of exchange utilized by MERCK in its worldwide accounting system, prevailing on the third to the last business day of the month preceding the month in which such sales are recorded
by MERCK. 
  

	4.8	Income Tax Withholding 

 EXELIXIS shall be liable for all income and other taxes (including interest) imposed upon any payments made by MERCK to EXELIXIS under this Article 4. If laws, rules or regulations require withholding of
income taxes or other taxes imposed upon payments set forth in this Article 4, MERCK shall [ * ] and [ * ]. MERCK shall submit appropriate proof of payment of the withholding taxes to EXELIXIS within [ * ] of filing with the relevant tax authority.

  

	5.	REPRESENTATIONS AND WARRANTIES 

  

	5.1	EXELIXIS Representation and Warranty 

 EXELIXIS represents and warrants to MERCK that as of the date of this Agreement: 
  

	 	(a)	to the best of EXELIXIS’ knowledge, the EXELIXIS Patent Rights and EXELIXIS Know-How set forth in Schedule D exist; 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 13 

	 	(b)	it has the full right, power and authority to grant the licenses granted under Article 2 hereof; 

 

	 	(c)	it has not previously assigned, transferred, conveyed or otherwise encumbered its right, title and interest in the EXELIXIS Patent Rights or EXELIXIS Know-How;

  

	 	(d)	to EXELIXIS’ knowledge (without duty of inquiry), it is the sole and exclusive owner of the EXELIXIS Patent Rights and EXELIXIS Know-How, all of which are free and
clear of any liens, charges and encumbrances, and no other person, corporate or other private entity, or governmental entity or subdivision thereof, has or shall have any claim of ownership whatsoever with respect to the EXELIXIS Patent Rights and
EXELIXIS Know-How; 

  

	 	(e)	to EXELIXIS’ knowledge (without duty of inquiry) there are no claims, judgments or settlements against or owed by EXELIXIS or pending or threatened claims or
litigation relating to the EXELIXIS Patent Rights and EXELIXIS Know-How; and 

  

	 	(f)	EXELIXIS has disclosed to MERCK all reasonably relevant information regarding the EXELIXIS Patent Rights and EXELIXIS Know-How licensed under this Agreement.

  

	5.2	Mutual Representation and Warranty  

 Each of MERCK and EXELIXIS represents and warrants to the other Party that as of the date of this Agreement: 
  

	 	(a)	it has the authority and right to enter into and perform this Agreement; 

  

	 	(b)	this Agreement is a legal and valid obligation binding upon it and is enforceable in accordance with its terms, subject to applicable limitations on such enforcement
based on bankruptcy laws and other debtors’ rights; and 

  

	 	(c)	its execution, delivery and performance of this Agreement shall not conflict in any material fashion with the terms of any other agreement or instrument to which it is
or becomes a party or by which it is or becomes bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over it. 

 

	6.	INTELLECTUAL PROPERTY PROVISIONS 

  

	6.1	Ownership 

  

	6.1.1	All rights title and interest in or to any and all intellectual property shall be determined in accordance with the following terms and conditions:

  

	 	(a)	EXELIXIS shall solely own all EXELIXIS Patent Rights and EXELIXIS Know-How; 

 

	 	(b)	MERCK shall solely own all MERCK Patent Rights and MERCK Know-How; and 

  

	 	(c)	EXELIXIS and MERCK shall jointly own Joint Patent Rights and Joint Know-How. 

 

	6.1.2	In the event of a dispute regarding ownership, the Parties shall establish a procedure to resolve such dispute, which may include engaging independent Third
Party patent attorneys jointly selected by the Parties to resolve such dispute. The Parties acknowledge that the ownership rights set out in this Section 6.1 are subject to the terms and conditions of this Agreement (including the license
granted by EXELIXIS to MERCK), and subject thereto, including without limitation Sections 2.1 and 2.3, each 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 14 

	 	 
Party shall be free to use and exploit (which shall include the right to grant licenses under) any Joint Patent Rights and Joint Know-How, without any duty of accounting to the other Party during
the term and after expiry or termination of this Agreement. 

  

	6.2	Prosecution of Patents 

  

	6.2.1	Prosecution of Patent Rights [ * ] (using external patent counsel reasonably acceptable to [ * ]) agrees to Prosecute in the Territory, upon appropriate
consultation with [ * ], the [ * ] Patent Rights [ * ]. [ * ] agrees to Prosecute in the Territory, upon appropriate consultation with [ * ], the [ * ] Patent Rights in the Territory. [ * ] shall implement all reasonable requests made by [ * ] with
regard to the Prosecution of [ * ] Patent Rights. With respect to [ * ] Patent Rights, [ * ] may elect not to file and/or Prosecute and if so, [ * ] shall notify [ * ] and [ * ] shall have the right to Prosecute such [ * ] Patent Rights. In such
event, [ * ] shall execute such documents and perform such acts at [ * ] expense as may be reasonably necessary to provide [ * ] with a power of attorney for such Patent Rights to [ * ] in a timely manner to allow [ * ] to continue such prosecution
or maintenance. Thereafter, such assigned [ * ] Patent Rights shall be considered [ * ] Patent Rights under this Agreement. With respect to [ * ] Patent Rights, [ * ] may elect not to file and/or Prosecute and if so, [ * ] shall notify [ * ] and [ *
] shall have the right to Prosecute such [ * ] Patent Rights. In such event, [ * ] shall execute such documents and perform such acts at [ * ] expense as may be reasonably necessary to provide [ * ] with a power of attorney for such [ * ] Patent
Rights to [ * ] in a timely manner to allow [ * ] to continue such prosecution or maintenance. With respect to both [ * ] Patent Rights and [ * ] Patent Rights, the non-filing Party shall have full rights of consultation with filing Party and the
patent counsel selected by the filing Party in all matters related to such [ * ] Patent Rights or [ * ] Patent Rights, as the case may be. In addition, the filing Party shall give the non-filing Party an opportunity to review the text of the
application before filing, shall consult with the non-filing Party with respect thereto, and shall supply the non-filing Party with a copy of the application as filed, together with notice of its filing date and serial number. The filing Party shall
keep the non-filing Party advised of the status of the actual and prospective patent filings and upon the request of the non-filing Party, provide advance copies of any papers related to the Prosecution of such patent filings. The filing Party shall
promptly give notice to the non-filing Party of the grant, lapse, revocation, surrender, invalidation or abandonment of any [ * ] Patent Rights or [ * ] Patent Rights, as the case may be. 

 

	6.2.2	Prosecution Costs for [ * ] Patent Rights [ * ] shall bear all reasonable and documented out-of-pocket costs and expenses incurred [ * ] in connection
with the Prosecution of [ * ] Patent Rights [ * ] in [ * ]. [ * ] shall also reimburse the reasonable and documented out-of-pocket costs and expenses for the Prosecution of [ * ] Patent Rights in [ * ] and for [ * ] Patent Rights [ * ]; provided,
that [ * ] provides [ * ] with advance written notice of such Prosecutions and [ * ] that such Prosecution in such country is commercially reasonable. If [ * ] provides notice to [ * ] within [ * ] of receiving notice of Prosecution of [ * ] Patent
Rights [ * ] that [ * ] does not agree with Prosecution, or at any time thereafter notifies [ * ] that its does not agree that continuing the Prosecution of such [ * ] Patent Rights in such country is commercially reasonable, [ * ] shall thereafter
[ * ] Prosecute the [ * ] Patent Rights in such country. [ * ] shall reimburse [ * ] for the reasonable and documented out-of-pocket costs and expenses as set forth above within [ * ] after receiving an invoice from [ * ] for such costs.
Notwithstanding anything to the contrary above, in the event that [ * ] or [ * ] or [ * ] any of the [ * ] Patent Rights [ * ], [ * ] shall [ * ] the costs of Prosecution for such [ * ] Patent Rights. By way of example, if [ * ] the [ * ] Patent
Rights [ * ], [ * ] shall [ * ] the costs of Prosecution of such [ * ] Patent 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 15 

	6.2.3	Prosecution Costs for [ * ] Patent Rights With respect to [ * ] Patent Rights, [ * ] shall be responsible for payment of the costs and expenses related to
Prosecution of such Patent Rights [ * ]. If [ * ], then [ * ] shall bear the expenses for [ * ]. 

  

	6.3	Interference, Derivation, Opposition, Reissue Reexamination and Post Grant Review Proceedings 

(a) The filing Party shall, within [ * ] of learning of any request for, or filing or declaration of, any interference, derivation,
opposition, reexamination, or post grant review (or similar proceedings as set forth under the America Invents Act) relating to [ * ] Patent Rights or [ * ] Patent Rights, as the case may be, inform the non-filing Party of such event. MERCK and
EXELIXIS shall thereafter consult and cooperate fully to determine a course of action with respect to any such proceeding. The non-filing Party shall have the right to review and approve any submission to be made in connection with such proceeding.

 (b) [ * ] shall not initiate any interference, derivation, reissue, or reexamination proceeding (or similar proceedings as set
forth under the America Invents Act) relating to [ * ] Patent Rights without the prior written consent to [ * ], which consent shall not be unreasonably withheld, delayed or conditioned. 

(c) In connection with any interference, derivation, opposition, reissue, reexamination, or post grant review proceeding (or similar
proceedings as set forth under the America Invents Act) relating to [ * ] Patent Rights or [ * ] Patent Rights, MERCK and EXELIXIS will cooperate fully and will provide each other with any information or assistance that either may reasonably
request. The filing Party shall keep the non-filing Party informed of developments in any such action or proceeding, including, to the extent permissible by law, consultation and approval of any settlement, the status of any settlement negotiations
and the terms of any offer related thereto. 
 (d) To the extent MERCK and EXELIXIS mutually agree with the course of action with
respect to any interference, derivation, opposition, reexamination, reissue, or post grant review proceeding (or similar proceedings as set forth under the America Invents Act) relating to [ * ] Patent Rights or [ * ] Patent Rights, [ * ] shall bear
the expense of such proceeding, subject to [ * ]. 
  

	6.4	Enforcement and Defense 

 (a) Each of EXELIXIS and MERCK shall give the other Party notice of either (i) any infringement of [ * ] Patent Rights and/or [ * ] Patent Rights, or (ii) any misappropriation or misuse of [ * ]
Know-How, that may come to either EXELIXIS’ or MERCK’s attention. MERCK and EXELIXIS shall thereafter consult and cooperate fully to determine a course of action, including but not limited to the commencement of legal action by either or
both MERCK and EXELIXIS, to terminate any infringement of [ * ] Patent Rights and/or [ * ] Patent Rights or any misappropriation or misuse of [ * ] Know-How. [ * ], upon written notice to [ * ], shall have the first right to initiate and prosecute
such legal action at its own expense and in the name of [ * ], or to control the defense of any declaratory judgment action relating to [ * ] Patent Rights, [ * ] Know-How, or [ * ] Patent Rights. [ * ] shall promptly notify [ * ] in writing if it
elects not to exercise such first right and [ * ] shall thereafter have the right to either initiate and prosecute such action or to control the defense of such declaratory judgment action in the name of [ * ]. Each Party shall have the right to be
represented by counsel of its own choice. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 16 

 (b) In the event that [ * ] elects not to initiate and prosecute an action as provided in
paragraph (a), and [ * ] elects to do so, the costs of any agreed-upon course of action to terminate infringement of [ * ] Patent Rights or [ * ] Patent Rights or misappropriation or misuse of [ * ] Know-How, including without limitation the costs
of any legal action commenced or the defense of any declaratory judgment, shall be [ * ]. 
 (c) For any action to terminate any
infringement of [ * ] Patent Rights or [ * ] Patent Rights or any misappropriation or misuse of [ * ] Know-How, in the event that [ * ] is unable to initiate or prosecute such action solely in its own name, [ * ] will join such action voluntarily
and will execute and cause its Affiliates to execute all documents necessary for [ * ] to initiate litigation to prosecute and maintain such action. In connection with any action, MERCK and EXELIXIS will cooperate fully and will provide each other
with any information or assistance that either may reasonably request. Each Party shall keep the other informed of developments in any action or proceeding, including, to the extent permissible by law, the consultation and approval of any settlement
negotiations and the terms of any offer related thereto. The foregoing notwithstanding, neither Party shall have the right to settle any patent infringement litigation under this Section 6.4 without the prior written consent of the other Party
if such settlement would: (i) impose an injunction or other similar restriction of the other Party; (ii) impose any financial obligations on the other Party; (iii) materially diminish or adversely affect the scope, exclusivity or
duration of any Patent Rights licensed under this Agreement; and/or (iv) would constitute an admission of guilt or liability by or on behalf of the other Party, such consent not to be unreasonably withheld, delayed or conditioned. 

(d) Any recovery obtained by either or both MERCK and EXELIXIS in connection with or as a result of any action contemplated by this
Section 6.4, whether by settlement or otherwise, shall be shared in order as follows: 
  

	 	(i)	the Party which initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the action; 

 

	 	(ii)	the other Party shall then, to the extent possible, recover its costs and expenses incurred in connection with the action; and 

 

	 	(iii)	the amount of any recovery remaining shall then be allocated between the Parties as follows: (A) [ * ]; and (B) [ * ]. 

(e) [ * ] shall inform [ * ] of any certification regarding any [ * ] Patent Rights it has received pursuant to either 21 U.S.C.
§§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or it successor provisions or any similar provisions in a country in the Territory other than the United States and shall provide [ * ] with a copy of such certification within [ * ] of receipt. [ *
] shall inform [ * ] of any certification regarding any [ * ] Patent Rights it has received pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or it successor provisions or any similar provisions in a country in the
Territory other than the United States and shall provide EXELIXIS with a copy of such certification within [ * ] of receipt. EXELIXIS’ and MERCK’s rights with respect to the initiation and prosecution of any legal action as a result of
such certification or any recovery obtained as a result of such legal action shall be as defined in Sections 6.4(a)-(d) hereof; provided, however, [ * ] shall exercise its first right to initiate and prosecute any action and shall
inform [ * ] of such decision within [ * ] of receipt of the certification, after which time [ * ] shall have the right to initiate and prosecute such action. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 17 

	6.5	Patent Term Restoration 

 The Parties hereto shall cooperate with each other in obtaining patent term restoration or supplemental protection certificates or their equivalents in any country in the Territory where applicable to [ *
] Patent Rights. In the event that elections with respect to obtaining such patent term restoration are to be made, [ * ] shall have the right to make the election and [ * ] agrees to abide by such election, and assist as needed with the filing and
Prosecuting of any such application for patent term restoration or supplemental protection certificates. 
  

	7.	TERM AND TERMINATION 

  

	7.1	Term and Expiration 

This Agreement shall be effective as of the Effective Date and unless terminated earlier pursuant to Sections 7.2 or 7.3 below, this
Agreement shall continue in effect until expiration of payment obligations hereunder. Upon expiration of this Agreement, MERCK shall retain a perpetual, fully-paid, non-exclusive, non-royalty-bearing license, with the right to sublicense, under the
EXELIXIS Technology to research, develop, make, have made, import, use, offer for sale and sell Compounds and or Products in the Territory for use in the Field. 
  

	7.2	Termination at Will 

Notwithstanding anything contained herein to the contrary, MERCK shall have the right to terminate this Agreement at will at any time in
its sole discretion by giving [ * ] advance written notice to EXELIXIS. Not later than [ * ] after the date of such termination, each Party shall return or cause to be returned to the other Party all Information in tangible form received from the
other Party and all copies thereof, except that each Party may retain one copy in its confidential files for records purposes. In the event of termination under this Section 7.2: (a) each Party shall pay all amounts then due and owing as
of the termination date (within the time period set forth in this Agreement for the applicable payment type); (b) the licenses granted to MERCK under Article 2 shall terminate; (c) each Party shall [ * ]; (d) MERCK shall [ * ] and [ *
]; (e) [ * ] and [ * ] shall survive until [ * ]; (f) MERCK and its Affiliates, sublicensees and distributors shall be entitled, during the [ * ] period immediately following the effective date of termination, to finish any
work-in-progress and to sell any Compounds and or Products remaining in inventory, in accordance with the terms of this Agreement; (g) in the event that a clinical trial is being terminated (which termination would occur at MERCK’s sole
discretion), MERCK would be responsible for its own costs of winding down of any clinical trials of Compounds and/or Products that were ongoing as of the effective date of the termination; and (h) except for the surviving provisions set forth
in this Section 7.2 and in Section 7.4 hereof, the rights and obligations of the Parties hereunder shall terminate as of the date of such termination. 
  

	7.3	Termination for Cause 

  

	7.3.1	Cause for Termination This Agreement may be terminated at any time during the term of this Agreement: 

(a) upon written notice by either Party if the other Party is in breach of its material obligations hereunder by causes
and reasons within its control and has not cured such breach within [ * ] after notice requesting cure of the breach. If such breach is not cured within such period, this Agreement shall terminate immediately at the end of such period on written
notice of the termination from the non-breaching Party, or where the breach is not capable of being cured in [ * ] if the breaching Party fails to (i) initiate actions during such [ * ] period that are reasonably anticipated to cure 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 18 

 
default within a reasonable period (not to exceed [ * ]) and (ii) thereafter use continuing diligent efforts to cure the default, then the non-breaching Party may immediately terminate this
Agreement at any time by providing written notice of the termination; provided, however, in the event of a good faith dispute with respect to the existence of a material breach, the [ * ] cure period shall be tolled until such time as the dispute is
resolved pursuant to Section 9.6 hereof; or 
 (b) in the event that MERCK or its Affiliate challenges the
validity of any patent application or patent within the EXELIXIS Patent Rights, EXELIXIS may, in its sole discretion, terminate MERCK’s licenses under this Agreement to such patent application or patent; and in the event that EXELIXIS or its
Affiliate challenges the validity of any patent application or patent within the MERCK Patent Rights, [ * ] shall [ * ] under this Agreement with respect to such patent application (if and when a patent issues thereon) or patent. 

(c) by either Party upon the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings,
or upon an assignment of a substantial portion of the assets for the benefit of creditors by the other Party; provided, however, in the case of any involuntary bankruptcy proceeding such right to terminate shall only become effective
if the Party consents to the involuntary bankruptcy or such proceeding is not dismissed within [ * ] after the filing thereof. 
  

	7.3.2	Effect of Termination for Cause on License 

 (a) If MERCK terminates this Agreement under Section 7.3.1(a) or (b) or (c), MRECK’s license pursuant to Article 2 shall become [ * ] (subject to [ * ] reduction in MERCK’s payment
obligations to EXELIXIS under Article 4), and EXELIXIS shall, within thirty (30) days after such termination, return or cause to be returned to MERCK all Information provided by MERCK in tangible form. 

(b) If EXELIXIS terminates this Agreement under Section 7.3.1(a) or (b) or (c), MERCK’s licenses pursuant
to Article 2 shall terminate as of such termination date, and MERCK shall, within [ * ] after such termination, return or cause to be returned to EXELIXIS Information in tangible form and substances or compositions delivered or provided by EXELIXIS.
Furthermore, with respect to each Joint Product that: (i) [ * ]; (ii) [ * ] and (iii) [ * ] (each such Joint Product, a “Reverted Product”), MERCK shall, and hereby does, grant to EXELIXIS a worldwide, perpetual,
irrevocable, fully-paid, exclusive license, with the right to grant sublicenses, under the Joint Technology to clinically develop, make, use, sell, offer for sale and import each such Reverted Product; provided, however, that (iv) that [ * ];
and (v) EXELIXIS shall Prosecute the Joint Patent Rights with respect to such Joint Technology and shall be responsible for payment of the costs and expenses related to such Prosecution. At EXELIXIS’ sole discretion, MERCK shall provide
(or shall have provided) to EXELIXIS: (v) all Information reasonably necessary for the development and commercialization of the Reverted Products; (vi) all regulatory filings (including any Regulatory Approvals, drug dossiers, and drug
master files) that relate to each such Reverted Product, including transferring ownership of such regulatory filings; (vii) trademark rights Controlled by MERCK or its Related Party, that relate to each such Reverted Product to the extent that
such trademarks have been approved by a Regulatory Agency to be used in connection with the Reverted Product, but excluding any rights to the names, trademarks, logos and the like of MERCK and/or its Related Parties; and (viii) supplies of each
such Reverted Product, that are existing and in the Control of MERCK or its Related Party and are reasonably available to MERCK; provide that [ * ] for [ * ] and [ * ]. MERCK shall take such other actions and execute such other documents as may be
necessary to effect the assignment of rights hereunder to EXELIXIS, and any such actions or assignments shall be at the reasonable expense of MERCK, except as otherwise provided above. If EXELIXIS does not request that any items described in
subsections 7.3.2(b)(v) – (viii) be assigned to EXELIXIS within [ * ] of the effective date of termination, then MERCK shall have no further obligation to EXELIXIS to provide any such items. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 19 

 (c) Upon termination of this Agreement by EXELIXIS pursuant to
Section 7.3.1(a) and (b), MERCK and its Affiliates, sublicensees and distributors shall be entitled, during the [ * ] period immediately following the effective date of termination, to finish any work-in-progress and to sell any MERCK Royalty
Compound, EXELIXIS Compound, MERCK Royalty Product and/or EXELIXIS Products remaining in inventory, in accordance with the terms of this Agreement. 
 (d) If this Agreement is terminated by MERCK pursuant to Section 7.3.1(b) due to rejection of this Agreement by or on behalf of EXELIXIS under Section 365 of the United States Bankruptcy Code
(the “Code”), all licenses and rights to licenses granted under or pursuant to this Agreement by EXELIXIS to MERCK are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the Code, licenses of rights to
“intellectual property” as defined under Section 101(35A) of the Code. The Parties agree that MERCK, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the
Code, and that upon commencement of a bankruptcy proceeding by or against EXELIXIS under the Code, MERCK shall be entitled to a complete duplicate of or complete access to (as MERCK deems appropriate), any such intellectual property and all
embodiments of such intellectual property. Such intellectual property and all embodiments thereof shall be promptly delivered to MERCK: (i) upon any such commencement of a bankruptcy proceeding upon written request therefore by MERCK, unless
EXELIXIS elects to continue to perform all of its obligations under this Agreement; or (ii) if not delivered under (i) above, upon the rejection of this Agreement by or on behalf of EXELIXIS upon written request therefore by MERCK. The
foregoing provisions of this Section 7.3.2(c) are without prejudice to any rights MERCK may have arising under the Code or other applicable law. 
  

	7.4	Effect of Expiration or Termination; Survival 

 Expiration or termination of the Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination. Any expiration or termination of this Agreement shall be
without prejudice to the rights of either Party against the other accrued or accruing under this Agreement prior to expiration or termination, including without limitation the obligation to pay royalties on sales prior to such expiration or
termination. The provisions of Article 3 shall survive the expiration or termination of the Agreement and shall continue in effect for [ * ]. In addition, the provisions of Articles [ * ], and Sections [ * ], Sections [ * ] shall survive any
expiration or termination of this Agreement. 
  

	8.	INDEMNITY 

  

	8.1	Indemnification by MERCK 

 MERCK shall indemnify, defend and hold EXELIXIS, its Affiliates and their respective agents, employees, officers and directors (each a “EXELIXIS Indemnitee”) harmless from and against any
and all judgments, liabilities, expenses, costs and/or losses, including reasonable legal expense and attorneys’ fees (collectively, “Losses”) to which any EXELIXIS Indemnitee may become subject as a result of any claim, suit,
demand, action or other proceeding by any Third Party against an EXELIXIS Indemnitee to the extent such Losses arise directly or indirectly out of (a) any breach by MERCK of any of its material obligations and/or its representations and
warranties pursuant to this Agreement; (b) the research, development, manufacture, use, promotion, marketing, sale or other disposition of Compounds and Products by MERCK or its Related Parties; (c) the negligence, gross negligence or
willful misconduct of any of the MERCK Indemnitees (as defined in 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 20 

 
Section 8.2); except, in each case, to the extent such Losses result from the material breach by EXELIXIS or its Affiliates of any covenant, representation, warranty or other agreement made
by EXELIXIS in this Agreement or the negligence, gross negligence or willful misconduct of any EXELIXIS Indemnitee. 
  

	8.2	Indemnification by EXELIXIS 

 EXELIXIS shall indemnify, defend and hold MERCK, its Related Parties and their respective agents, employees, officers and directors (each a “MERCK Indemnitee”) harmless from and against
any and all Losses, to which any MERCK Indemnitee may become subject as a result of any claim, demand, action or other proceeding by any Third Party against a MERCK Indemnitee to the extent such Losses arise directly or indirectly out of
(a) any breach by EXELIXIS of any of its material obligations and/or its representations and warranties pursuant to this Agreement; (b) any of EXELIXIS’ representations and warranties set forth in the Agreement being untrue in any
material respect when made; (c) the negligence, gross negligence or willful misconduct of any of the EXELIXIS Indemnitees; or (d) the development, manufacture, use, promotion, marketing, sale or other disposition of Reverted Products by
EXELIXIS or its Affiliates, licensees or sublicensee; except, in each case, to the extent such Losses result from the material breach by MERCK, its Related Parties or subcontractors of any agreement made by MERCK in this Agreement or the negligence,
gross negligence or willful misconduct of any MERCK Indemnitee. 
  

	8.3	Notice of Indemnification Obligation and Defense 

 Any Party entitled to indemnification under Section 8.1 or 8.2 shall give notice to the indemnifying Party of any Losses that may be subject to indemnification, promptly after learning of such
Losses, but the omission to so notify the indemnifying Party promptly will not relieve the indemnifying Party from any liability under Section 8.1 or 8.2 except to the extent that the indemnifying Party shall have been prejudiced as a result of
the failure or delay in providing such notice. The indemnifying Party shall assume the defense of such Losses with counsel reasonably satisfactory to the indemnified Party. If such defense is assumed by the indemnifying Party, the indemnifying Party
will not be subject to any liability for any compromise or settlement of such Losses made by the indemnified Party without its consent (but such consent will not be unreasonably withheld, delayed or conditioned), and will not be obligated to pay the
fees and expenses of any separate counsel retained by the indemnified Party with respect to such Losses. The indemnified Party shall provide the indemnifying Party with all information in its possession and all assistance reasonably necessary to
enable the indemnifying Party to carry on the defense of any such Losses. The foregoing notwithstanding, the indemnifying Party may not enter into any compromise or settlement of such Losses without the prior written consent of the indemnified Party
if such compromise or settlement would: (i) impose an injunction or other similar restriction of the indemnified Party; (ii) impose any financial obligations on the indemnified Party; (iii) materially diminish or adversely affect the
scope, exclusivity or duration of any Patent Rights licensed under this Agreement; and/or (iv) would constitute an admission of guilt or liability by or on behalf of the indemnified Party. 

 

	9.	MISCELLANEOUS 

  

	9.1	Force Majeure 

Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached the Agreement for failure or delay
in performing any obligation under the Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party including, but not limited to, embargoes, war, acts of war (whether war be declared
or not), insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, fire, floods, or other acts of God, or acts, omissions or delays in acting by any governmental authority or the other Party. The foregoing sentence shall
not apply to a Party’s 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 21 

 
obligation to pay the other Party under this Agreement when such payment obligation arose prior to the occurrence of such force majeure event and where such force majeure event does not prevent
the method of making such payment. The affected Party shall notify the other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all reasonable efforts necessary to cure such force majeure
circumstances. 
  

	9.2	Assignment; Change of Control 

 Except as provided in this Section 9.2, this Agreement may not be assigned or otherwise transferred, nor may any right or obligation hereunder (other than Exelixis’ right to receive payments
under Article 4) be assigned or transferred, by either Party without the consent of the other Party; provided, however, that MERCK may, without such consent, assign the Agreement and its rights and obligations hereunder to an Affiliate or in
connection with a Change of Control. EXELIXIS may, without MERCK’s consent, assign this Agreement and its rights and obligations hereunder to a member of the Change of Control Group in connection with an EXELIXIS Change of Control subject to
the following; 
 (a) EXELIXIS shall provide written notice to MERCK at least [ * ] prior to the completion of a Change of
Control, subject to any confidentiality obligations of EXELIXIS then in effect (but, if such confidentiality obligations prevent EXELIXIS from providing such written notice, EXELIXIS shall so notify MERCK within [ * ] after completion of such Change
of Control; 
 (b) the Change of Control Group in connection with the EXELIXIS Change of Control shall agree in writing with
MERCK, within [ * ] from the Change of Control event, that [ * ] and that [ * ]; 
 (c) in the event [ * ], [ * ] shall [ * ] and
[ * ] and [ * ] with respect to the [ * ] and [ * ] of [ * ] and [ * ] and [ * ]; and 
 (d) [ * ] may, in its discretion, [ * ]
with respect the [ * ] of [ * ] under this Agreement, including [ * ] and [ * ] to [ * ] that [ * ] or [ * ], and [ * ] shall [ * ] and [ * ]. 
 Any attempted assignment not in accordance with this Section 9.2 shall be null and void. Any permitted assignee shall assume all assigned obligations of its assignor under the Agreement. The terms
and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. 
  

	9.3	Severability 

 If
any one or more of the provisions contained in this Agreement is held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby, unless the absence of the invalidated provision(s) adversely affects the substantive rights of the Parties. The Parties shall in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s)
with valid, legal and enforceable provision(s) which, insofar as practical, implement the purposes of this Agreement. 
  

	9.4	Notices 

 All
notices which are required or permitted hereunder shall be in writing and sufficient if delivered personally, sent by facsimile or a pdf document sent by electronic mail (and promptly confirmed by personal

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 22 

 
delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid, return receipt requested,
addressed as follows: 
  

							
		  	if to EXELIXIS, to:	  	Exelixis, Inc.
		  		  	210 East Grand Ave.
		  		  	So. San Francisco, CA 94080
		  		  	Attention: EVP and General Counsel
		  		  	Facsimile No.: (650) 837-7179
			
		  	        and	  	Cooley LLP
		  		  	3175 Hanover Street
		  		  	Palo Alto, CA 94304
		  		  	Attention: Marya A. Postner, Esq.
		  		  	Facsimile No.: (650) 849-7400
			
		  	if to MERCK, to:	  	Merck Sharp & Dohme Corp.
		  		  	One Merck Drive
		  		  	P.O. Box 100, WS3A-65
		  		  	Whitehouse Station, NJ 08889-0100
		  		  	Attention: Office of Secretary
		  		  	Facsimile No.: (908) 735-1246
			
		  	        and	  	Merck Sharp & Dohme Corp.
		  		  	One Merck Drive
		  		  	Attention: Chief Licensing Officer
		  		  	P.O. Box 100, WS2A-30
		  		  	Whitehouse Station, NJ 08889-0100
		  		  	Facsimile: (908) 735-1214

 or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in
accordance herewith. Any such notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile or pdf document on a business day; (b) on the business day after dispatch if sent by
nationally-recognized overnight courier; and/or (c) on the fifth business day following the date of mailing if sent by mail. 
  

	9.5	Applicable Law 

The Agreement shall be governed by and construed in accordance with the laws of [ * ] and the patent laws of the United States without
reference to any rules of conflict of laws. The United Nations Convention on the Sale of Goods shall not apply. 
  

	9.6	Dispute Resolution 

  

	9.6.1	 Except for any “Excluded Claim” (defined in Section 9.6.6 below), the Parties shall negotiate in good faith and use reasonable
efforts to settle any dispute, controversy or claim arising from or related to this Agreement, or the breach thereof, as follows. A Party shall notify the other Party in writing of such dispute, controversy or claim, and the Parties shall meet
within [ * ] of receipt of such notice. If 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 23 

	 	 
the Parties do not fully settle within [ * ] of such meeting, and a Party wishes to pursue the matter, each such dispute, controversy or claim that is not an Excluded Claim shall be finally
resolved by binding arbitration in accordance with the Commercial Arbitration Rules and Supplementary Procedures for Large Complex Disputes of the American Arbitration Association (“AAA”), and judgment on the arbitration award may
be entered in any court having jurisdiction thereof. 

  

	9.6.2	The arbitration shall be conducted by a panel of three (3) persons experienced in the pharmaceutical business (provided that such arbitrators are not
required to be selected from AAA’s list of arbitrators) as follows: (a) within [ * ] after initiation of arbitration, each Party shall select one (1) person to act as arbitrator, and (b) the two (2) Party-selected
arbitrators shall select a third arbitrator within [ * ] of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be appointed promptly by the AAA. The place
of arbitration shall be [ * ], and all proceedings and communications shall be in English. 

  

	9.6.3	Either Party may apply to the arbitrators for any applicable interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.
Either Party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the arbitration award. The
arbitrators shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and expenses and attorneys’ fees and an equal share of the
arbitrators’ and any administrative fees of arbitration. 

  

	9.6.4	Except to the extent necessary to confirm an award, or as may be required by applicable law, rule or regulation, neither a Party nor an arbitrator may disclose
the existence, content, or results of an arbitration without the prior written consent of both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute,
controversy or claim would be barred by the applicable [ * ] statute of limitations. 

  

	9.6.5	The Parties agree that, in the event of a dispute over the nature or quality of performance under this Agreement, neither Party may terminate the Agreement until
final resolution of the dispute through arbitration or other judicial determination. The Parties further agree that any payments made pursuant to this Agreement pending resolution of the dispute shall be refunded if an arbitrator or court determines
that such payments are not due. 

  

	9.6.6	As used in this Section 9.6, the term “Excluded Claim” shall mean a dispute, controversy or claim that concerns: (a) the validity or infringement of
a patent, trademark or copyright; (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory; or (c) the need to seek preliminary or injunctive measures or other equitable relief (e.g., in the event of a
potential or actual breach of the confidentiality and non-use provisions in Article 3). An Excluded Claim need not be resolved through the procedure described in Sections 9.6.1 – 9.6.5 and may be immediately brought in a court of competent
jurisdiction. 

  

	9.7	Entire Agreement; Amendments 

 The Agreement contains the entire understanding of the Parties with respect to the licenses granted hereunder. All express or implied agreements and understandings, either oral or written, with regard to
the licenses granted hereunder are superseded by the terms of this Agreement. The Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized representatives of both Parties hereto. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 24 

	9.8	Headings 

 The
captions to the several Articles and Sections hereof are not a part of the Agreement, but are merely for convenience to assist in locating and reading the several Articles and Sections hereof. 

 

	9.9	Independent Contractors 

 It is expressly agreed that EXELIXIS and MERCK shall be independent contractors and that the relationship between the two Parties shall not constitute a partnership, joint venture or agency. Neither
EXELIXIS nor MERCK shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which shall be binding on the other Party, without the prior written consent of the other Party. 

 

	9.10	Waiver 

 The waiver
by either Party hereto of any right hereunder, or the failure of the other Party to perform, or a breach by the other Party, shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a
similar nature or otherwise. Any waiver by a Party of any right under this Agreement must be in writing, must specify the right that is waived and the time period of such waiver, and must be signed by the waiving Party. 

 

	9.11	Cumulative Remedies 

No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any other remedy
referred to in this Agreement or otherwise available under law. 
  

	9.12	Waiver of Rule of Construction 

 Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this
Agreement shall be construed against the drafting Party shall not apply. 
  

	9.13	Certain Conventions  

 Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, Schedule or Exhibit shall be deemed to be a reference to an Article, Section, subsection, paragraph, clause, Schedule
or Exhibit, of or to, as the case may be, this Agreement, unless otherwise indicated. Unless the context of this Agreement otherwise requires: (a) words of any gender include each other gender, (b) words such as “herein”,
“hereof”, and “hereunder” refer to this Agreement as a whole and not merely to the particular provision in which such words appear, and (c) words using the singular shall include the plural, and vice versa. 

 

	9.14	Business Day Requirements 

 In the event that any notice or other action or omission is required to be taken by a Party under this Agreement on a day that is not a business day then such notice or other action or omission shall be
deemed to be required to be taken on the next occurring business day. 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 25 

	9.15	Counterparts 

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

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 26 

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

							
	MERCK SHARP & DOHME CORP.	  	EXELIXIS, INC.
				
	BY:	  	 /s/ Barbara Yanni
	  	BY:	  	 /s/ Michael M. Morrissey

		  	Barbara Yanni	  		  	Michael M. Morrissey, Ph.D
	TITLE:	  	Vice President and Chief Licensing Officer	  	TITLE:	  	President and CEO
	DATE:	  	20 Dec 2011	  	DATE:	  	12-19-2011

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 27 

 SCHEDULES 

SCHEDULE A    EXELIXIS PATENT 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 28 

 SCHEDULE B    EXELIXIS PI3Kdelta SPECIFIC COMPOUNDS

 [ * ] 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 29 

 SCHEDULE C    EXELIXIS COMPOUNDS 

[ * ] 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 30 

 SCHEDULE D    EXELIXIS KNOW-HOW 

[ * ] 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 31 

 SCHEDULE E    EXELIXIS RELATED INACTIVE COMPOUNDS

 [ * ] 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 32 

 SCHEDULE F    PRESS RELEASE 

 
 

 
 Contact: 
 Charles Butler 
 Vice President, 

Investor Relations and 
 Corporate Communications 
 Exelixis, Inc. 

(650) 837-7277 

cbutler@exelixis.com 
 Exelixis Licenses PI3K-Delta Program to Merck 
 Exelixis to receive $12M
upfront payment and be eligible for potential development, regulatory and commercial milestones, plus royalties 
 South San Francisco,
Calif. – December XX, 2011 – Exelixis, Inc. (NASDAQ:EXEL) today announced that it has granted to Merck, known as MSD outside of the United States and Canada, an exclusive worldwide license to its PI3K-delta research and
development program, including XL499, the company’s most advanced preclinical PI3K-delta inhibitor and other related compounds. Under the agreement, Merck will have a worldwide exclusive license and have sole responsibility to research,
develop, and commercialize compounds originating from the program. 
 Merck will make an upfront payment of $12 million to Exelixis and Exelixis
will be eligible for potential development and regulatory milestone payments for multiple indications of up to $239 million. Exelixis will also be eligible for potential combined sales performance milestones and royalties on net-sales of products
emerging from the agreement. Milestones and royalties are payable on compounds emerging from Exelixis’ PI3K-delta program or from certain compounds that arise from Merck’s internal discovery efforts targeting PI3K-delta during a certain
period. 
 “PI3K-delta is an interesting target with potential utility in a number of therapeutic areas, including inflammation and
oncology, said Michael M. Morrissey, president and chief executive officer of Exelixis. “Our PI3K-delta program builds on our prior interest in the PI3K family, which led to the advancement of pan-PI3K inhibitors into clinical development for
cancer. Merck’s global presence and significant resources make it the ideal organization to carry the PI3K-delta program forward. At the same time, this agreement provides Exelixis with resources for the continued development and potential
commercialization of our lead compound, cabozantinib, which is in late-stage development for medullary thyroid and prostate cancers.” 

“Exelixis has established a strong reputation for innovation in the development of targeted kinase inhibitors,” said Don Nicholson, Ph.D., Vice
President and Head of Worldwide Discovery, Respiratory and Immunology Franchise, Merck Research Laboratories. “Collaborations like this are an important part of our strategy as we seek new ways to address unmet needs in inflammatory disease and
oncology.” 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 33 

 PI3K-delta is a member of the Class 1 family of phosphoinositide-3 kinases and is predominantly expressed
in cells of the immune system. Activation of PI3K-delta occurs in response to a variety of immune cell stimuli, and inappropriate PI3K delta activation is thought to contribute to multiple inflammatory and allergic disorders, including rheumatoid
arthritis and allergic asthma. Selectively targeting PI3K-delta has also shown potential in the treatment of certain lymphomas. 
 About
Exelixis 
 Exelixis, Inc. is a biotechnology company committed to developing small molecule therapeutics for the treatment of cancer.
Exelixis is focusing its proprietary resources and development efforts exclusively on cabozantinib, its most advanced solely-owned product candidate, in order to maximize the therapeutic and commercial potential of this compound. Exelixis believes
cabozantinib has the potential to be a high-quality, differentiated pharmaceutical product that can make a meaningful difference in the lives of patients. Exelixis has also established a portfolio of other novel compounds that it believes have the
potential to address serious unmet medical needs. For more information, please visit the company’s web site at www.exelixis.com. 

Forward-Looking Statements 
 This press
release contains forward-looking statements, including, without limitation, statements related to: the payment to Exelixis of an upfront payment; Exelixis’ potential receipt of development, regulatory and sales milestones, as well as royalties
on sales of products; the clinical, therapeutic and commercial potential of the PI3K-delta program; the belief that Merck is the ideal organization to carry the PI3K-delta program forward; the belief that the agreement will provide resources for the
continued development and potential commercialization of cabozantinib; and the clinical, therapeutic and commercial potential of cabozantinib. Words such as “will,” “eligible,” “potential,” “emerging,”
“arise,” “provides,” “continued,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Exelixis’ current plans, assumptions, beliefs and
expectations. Forward-looking statements involve risks and uncertainties. Exelixis’ actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and
uncertainties, which include, without limitation: risks related to Exelixis’ dependence on the activities of Merck under the described agreement, the potential failure of the PI3K-delta program or cabozantinib to demonstrate safety and efficacy
in clinical testing; the therapeutic and commercial value of the PI3K-delta program and cabozantinib; Exelixis’ ability to conduct clinical trials of cabozantinib sufficient to achieve a positive completion; the sufficiency of Exelixis’
capital and other resources; uncertain timing and level of expenses associated with the development of cabozantinib; the uncertainty of the FDA approval process; market competition; and changes in economic and business conditions. These and other
risk factors are discussed under “Risk Factors” and elsewhere in Exelixis’ quarterly report on Form 10-Q for the quarter ended September 30, 2011 and Exelixis’ other filings with the Securities and Exchange Commission.
Exelixis expressly disclaims any duty, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Exelixis’ expectations with regard thereto or any change
in events, conditions or circumstances on which any such statements are based. 
 # # # 

  
 [ * ] = 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 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 34Secured Promissory Note

 EXECUTION VERSION 
 Exhibit 4.6 
 THIS SECURED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER,
SATISFACTORY TO AMYLIN THAT SUCH REGISTRATION AND/OR COMPLIANCE IS NOT REQUIRED UNDER THE SECURITIES ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION. 

AMYLIN PHARMACEUTICALS, INC. 
 SECURED PROMISSORY NOTE 
  

			
	$1,200,000,000.00	  	November 7, 2011

Amylin Pharmaceuticals, Inc., a Delaware corporation (“Amylin”), promises to pay to the order of Eli
Lilly and Company, an Indiana corporation (“Lilly”), the principal sum of ONE BILLION TWO HUNDRED MILLION DOLLARS ($1,200,000,000) (the “Principal Amount”), plus the Interest Amount (as defined below) from time to
time accrued and unpaid thereon (the Interest Amount, together with the Principal Amount and any other amounts payable by Amylin to Lilly under this Secured Promissory Note (this “Note”) pursuant to Section 2.4(b), as the
foregoing amounts are subject to reductions pursuant to Sections 2.2 and 2.5, collectively, the “Obligations”), subject to and in accordance with the provisions of this Note. This instrument is the “Note” referred to as
Exhibit B and as defined in the Settlement and Termination Agreement (as defined below). 
 During the Term (as
defined below), interest on the Obligations (other than obligations in respect of amounts payable by Amylin to Lilly under this Note or any of the other Note Documents pursuant to Section 2.4(b)) from time to time outstanding (the
“Interest Amount”) shall accrue and compound as follows: (a) on December 31, 2011, with respect to the period commencing on December 1, 2011 through and including December 31, 2011, interest shall accrue on the
Principal Amount in an amount equal to 0.75915343% of the Principal Amount outstanding on December 31, 2011 and such accrued Interest Amount shall be added to the then outstanding principal balance of the Obligations on such date; and
(b) on the last day of each Calendar Quarter (as defined below) thereafter (commencing with the Calendar Quarter ending March 31, 2012), interest on the Obligations (other than obligations in respect of amounts payable by Amylin to Lilly
under this Note or any of the other Note Documents pursuant to Section 2.4(b)) shall accrue and compound in an amount equal to two and two hundred ninety-five thousands percent (2.295%) of such Obligations outstanding on such last day of
such Calendar Quarter and such accrued Interest Amount shall be added to the then outstanding principal balance of the Obligations on such date; provided, that the interest 

 
payable hereunder shall be subject to reduction and reinstatement pursuant to and in accordance with Section 4.6 of the Settlement and Termination Agreement and past due amounts shall incur
interest at the default rate set forth in Section 2.3(c). For the avoidance of doubt, any Interest Amount shall not be paid in cash but shall instead be added to the then outstanding balance of the Obligations and shall itself bear interest in
accordance with the terms hereof. 
 The Obligations shall be guaranteed in accordance with Section 6.4 and
secured pursuant to the Security Documents (as defined below). Reference is hereby made to the Note Documents for a description of the properties and assets in which a security interest has been granted, the nature and extent of the security and the
guarantees, the terms and conditions upon which the security interests and each guarantee were granted and the rights of Lilly in respect thereof. 
 Subject to Section 2.5, all unpaid Obligations shall be due and payable on the earlier of: (a) December 31, 2036 (the “Maturity Date”) or (b) following an Event of
Default (as defined below), the date on which such amounts are declared by Lilly to be or automatically become due and payable pursuant to Section 8.1(a). Subject to Section 2.5, all Obligations remaining unpaid on the Maturity Date shall
be paid in full on the Maturity Date. 
 In addition to the foregoing, the following is a statement of the
rights and obligations of the Parties hereunder, and to which the Parties agree (intending to be legally bound hereby): 

ARTICLE I 

DEFINITIONS; INTERPRETATION 
 1.1.     Definitions. In this Note, the following terms shall have the following meanings: 
 “Affiliate” means any Person that directly (or indirectly through one or more intermediaries) controls, is controlled by, or is under common control with a Party. For purposes of this
definition only, the terms “controls,” “controlled,” and “control” mean (i) the direct or indirect ability or power to direct or cause the direction of the management and policies of an entity or otherwise direct
the affairs of such entity, whether through ownership of equity, voting securities, or beneficial interest, by contract, or otherwise; or (ii) the ownership, directly or indirectly, of at least 50% of the voting securities (or other comparable
ownership interest for an entity other than a corporation) of a Party. 
 “Amylin Parties” means Amylin and, if
any shall from time to time exist, the Guarantors. 
 “Amylin Patents” has the meaning set forth in the Security
Agreement. 
 “Business Day” means any day, other than a Saturday, Sunday or day on which banking institutions
in New York, New York are authorized or obligated by law or executive order to be closed. 

  
 2 

 “Byetta Agreements” has the meaning set forth in the Security Agreement.

 “Calendar Quarter” means the respective periods of three (3) consecutive calendar months ending on
March 31, June 30, September 30 and December 31. 
 “Collateral” has the meaning
set forth in the Security Agreement. 
 “Copyrights” has the meaning set forth in the Security Agreement.

 “Effective Date” means the date of this Note. 

“Event of Default” means only those conditions or events listed in Section 7.1 of this Note. 

“GAAP” means the generally accepted accounting principles in the United States. 

“Governmental Authority” means any court, tribunal, arbitrator, agency, commission, official or other instrumentality of
any federal, state or other political subdivision, or supranational body, domestic or foreign. 
 “Grantor” has
the meaning set forth in the Security Agreement. 
 “Guarantee Agreement” shall mean each guarantee agreement
entered into by any Guarantor in favor of Lilly pursuant to Section 6.4, substantially in the form attached hereto as Exhibit A, as the same may be amended, modified, supplemented or restated from time to time. 

“Guarantors” means each Affiliate of Amylin that is required to and has guaranteed the Obligations pursuant to
Section 6.4. 
 “License Agreements” has the meaning set forth in the Security Agreement. 

“Liens” has the meaning set forth in the Security Agreement. 

“Mandatory Payments” shall mean payments that Amylin is required to make pursuant to Sections 4.4(a) and 4.4(b) of the
Settlement and Termination Agreement, subject to the terms and conditions set forth in Article IV of the Settlement and Termination Agreement (which payments, for clarity, may be subject to reduction or termination in accordance with the provisions
of Section 4.5 and 4.6 of the Settlement and Termination Agreement). 
 “Material Adverse Effect” means a
material adverse effect upon: (a) the ability of Amylin to perform its payment obligations under the Note Documents, or (b) the ability of Lilly to enforce the Obligations. 

“Monetization” shall have the meaning set forth in the Settlement and Termination Agreement. 

  
 3 

 “Note Documents” means collectively, this Note, the Guarantee Agreements,
and the Security Documents, as such documents may be amended, modified, supplemented or restated from time to time. For clarity, the Note Documents do not include the Settlement and Termination Agreement. 

“Other Default” means (i) any failure by any Amylin Party or any Grantor to perform or observe any material
covenant or material agreement contained in this Note or any other Note Document and, to the extent capable of cure, such failure continues for thirty (30) days after the date on which Lilly gives Amylin notice thereof (if not capable of cure,
the Other Default shall occur immediately upon the failure) or (ii) any representation or warranty made by any Amylin Party or Grantor in this Note or any other Note Document shall fail to be true and correct in any material respect when made.
Notwithstanding anything to the contrary, Other Defaults shall exclude all Events of Default. 
 “Other Material
Indebtedness” means any indebtedness (including guarantees) of Amylin for borrowed money other than the Obligations, to the extent the aggregate amount outstanding, together with all unfunded amounts committed in connection therewith,
exceeds $30,000,000. 
 “Patent” has the meaning set forth in the Security Agreement. 

“Parties” means, collectively, Amylin and Lilly, each a “Party”. 

“Permitted Liens” has the meaning set forth in the Security Agreement. 

“Person” means a natural person, a corporation, a partnership, a trust, a joint venture, a limited
liability company, any Governmental Authority or any other entity or organization. 
 “SEC” means the
United States Securities and Exchange Commission. 
 “Secured Obligations” has the meaning set forth in the
Security Agreement. 
 “Security Agreement” means that certain Security Agreement, dated as of the Effective
Date, executed by Amylin and any other Amylin Parties party thereto in favor of Lilly, as the same may be supplemented by any joinder thereto pursuant to Section 6.4, as the same may be amended, modified, supplemented or restated from time to
time. 
 “Security Documents” means collectively, the Security Agreement, any patent security
agreements, copyright security agreements, trademark security agreements, other security agreements and similar agreements delivered to Lilly pursuant to or in connection with this Note or the Security Agreement, as such documents may be amended,
modified, supplemented or restated from time to time. 
 “Settlement and Termination Agreement” means that
certain Settlement and Termination Agreement, dated as of the Effective Date, by and between Amylin and Lilly, as the same may be amended, modified, supplemented or restated from time to time. 

  
 4 

 “Specified Collateral” means, collectively: 

(a)    all Amylin Patents as of the Effective Date (with the exception of the jointly owned Patents identified on
Schedule 4.3(C) of the Security Agreement); 
 (b)    all Trademarks set forth on Schedule 4.3(E) of the
Security Agreement as of the Effective Date; and 
 (c)    all US Regulatory Approvals (as defined in the
Security Agreement) existing as of the Effective Date from the United States Food and Drug Administration for any Product (as defined in the Security Agreement). 
 “Term” means the period from the Effective Date until the earliest of (i) the date on which all outstanding Obligations have been repaid in full, (ii) the Maturity Date and
(iii) the date on which this Note is otherwise terminated in accordance with Section 2.5 hereof. 
 “Total
Revenue Sharing Obligation” has the meaning set forth in the Settlement and Termination Agreement. 

“Trademark” has the meaning set forth in the Security Agreement. 

“Transfer Trigger Event” has the meaning set forth in the Settlement and Termination Agreement. 

“UCC” has the meaning set forth in the Security Agreement. 

“United States” or “US” shall mean the United States of America, including its territories and
possessions. 
 1.2     Accounting Terms. All accounting terms not specifically defined in this Note shall be
determined and construed in accordance with GAAP. References to “Dollars” or “$” shall mean the legal tender of the United States. 
 1.3     Singular and Plural. Where the context herein requires, the singular number shall be deemed to include the plural, the masculine gender shall include the feminine and
neuter genders, and vice versa. 
 1.4     Elements of this Note. When a reference is made in this Note to the
Articles, Sections, Exhibits or Schedules, such reference is to an Article or Section of, or an Exhibit or Schedule to, this Note, unless otherwise indicated. 
 1.5     Interpretation. The use herein of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to
limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as 

  
 5 

 
“without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that
fall within the broadest possible scope of such general statement, term or matter. 
 ARTICLE II 

PAYMENTS 

2.1     Optional Prepayments. Amylin may at any time from time to time prepay the outstanding Obligations, in whole or in
part, without premium or penalty. 
 2.2     Mandatory Payments. Amylin shall make all Mandatory Payments when
and as required pursuant to Article IV of the Settlement and Termination Agreement. Such Mandatory Payments, to the extent paid, shall be applied to reduce the amount of the outstanding Obligations. 

2.3     Payment Procedures; Late Payment Charges. 
 (a)     Manner of Payment. All payments to be made by Amylin under this Note shall be made in US Dollars and shall be paid by bank wire transfer in immediately available funds
to a bank account designated in writing from time to time by Lilly. Each payment shall reference this Note and identify the obligation under this Note that the payment is to satisfy. 

(b)     Exchange Rate. Amylin shall use its then current standard procedures and methodology, including its
then current standard exchange rate methodology, for the translation of foreign currency amounts into US Dollars. 

(c)     Default Rate. All past due Obligations (including any past due Mandatory Payments) owed by Amylin to
Lilly under this Note shall bear interest at a rate equal to thirteen and a half percent (13.5%) per annum. Notwithstanding anything to the contrary herein, in no event shall any interest rate payable hereunder exceed the maximum legal annual
interest rate. 
 (d)     No Set-Off. Except as expressly otherwise contemplated by the terms of
this Note or the other Note Documents, neither Party shall have any right to offset against any amounts otherwise payable by such Party to the other Party under this Note or the other Note Documents, to satisfy any amounts by which the first Party
may be entitled to pursuant to this Note or such other Note Documents. 
 2.4     Other Payment Terms. 

(a)     Payments on Non-Business Day. In the event that any payment of any principal, interest, fees or any
other amounts payable by Amylin under or pursuant to this Note or under any other Note Document shall become due on any day which is not a Business Day, such due date shall be extended to the next succeeding Business Day. 

  
 6 

 (b) Collection Costs. Amylin shall reimburse Lilly for the reasonable and documented
out-of-pocket costs and expenses (including the reasonable fees and expenses of Lilly’s agents and counsel) of any sale, collection or enforcement efforts, or other realization on the Collateral incurred by Lilly in connection with the exercise
of any right or remedy against any Amylin Party under the Note Documents (including the enforcement by Lilly of its rights in any bankruptcy or insolvency proceeding), all in accordance with the terms hereof or thereof; provided that in the event of
a good faith dispute of any such costs and expenses due pursuant to this Section 2.4(b), any disputed amounts shall not be deemed to be due hereunder until forty-five (45) days after final resolution of a dispute. 

(c) Audit. In connection with the exercise by Lilly of its audit rights pursuant to and subject to the terms set forth in
Section 4.9 (Lilly Audit Rights) of the Settlement and Termination Agreement, if (i) any report issued pursuant to such Section 4.9 indicates that Amylin has underpaid and such report is not disputed; or (ii) following
final resolution of a dispute, it is determined that Amylin has underpaid, in either case ((i) or (ii)), Amylin shall remit to Lilly within forty-five (45) days after receipt of such report or final resolution of the dispute, as applicable, the
amount of such underpayment with interest thereon in accordance with Section 2.3(c). Notwithstanding anything to the contrary in any Note Document or in the Settlement and Termination Agreement (except with respect to the computation of
interest pursuant to Section 2.3(c) which shall accrue from the date the payment was originally due, irrespective of this sentence), any such underpaid amounts that are not disputed or such amounts as are determined to have been underpaid
following final resolution of a dispute pursuant to the terms of Section 4.9 of the Settlement and Termination Agreement shall not be deemed to be due hereunder until forty-five (45) days after receipt of such report or final resolution of
the dispute. 
 2.5 Termination of Note; Reduction of Obligations. This Note and the other Note Documents shall
automatically terminate and be of no further force or effect (and for the avoidance of doubt, the Obligations shall be deemed to be fully discharged) upon the earlier of the payment in full of the Obligations and the termination of Amylin’s
obligations under Section 4.3 and 4.4 of the Settlement and Termination Agreement pursuant to (and only pursuant to) the provisions of Section 4.5 or Section 4.6 of the Settlement and Termination Agreement. In addition, the
Obligations (i) shall be reduced in a proportional amount of any reduction of Total Revenue Sharing Obligation pursuant to Section 4.6(b) of the Settlement and Termination Agreement, and (ii) shall be reinstated in a proportional
amount of any reinstatement of Total Revenue Sharing Obligation pursuant to Section 4.6 of the Settlement and Termination Agreement. 
 ARTICLE III 
 CONDITIONS TO EFFECTIVENESS 

3.1 Amylin shall provide to Lilly, on the Effective Date: (a) this Note, duly authorized, executed and delivered by Amylin, (b) the
Security Agreement, duly authorized, executed and delivered by Amylin and Amylin Ohio LLC, (c) a written opinion of Amylin’s counsel, addressed to Lilly, in form and substance reasonably

  
 7 

 
acceptable to Lilly, with respect to the enforceability of the Note Documents and the validity and perfection of the security interest in the Collateral, (d) a Guarantee Agreement duly
authorized, executed and delivered by Amylin Ohio LLC and (e) a patent security agreement, trademark security agreement and copyright security agreement, each substantially in the form attached as exhibits to the Security Agreement, duly
authorized, executed and delivered by Amylin. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF AMYLIN 
 Amylin hereby represents and warrants to Lilly as of the Effective Date that: 

4.1     Organization, Good Standing and Qualification. Each Amylin Party is a corporation or limited liability company, as
applicable, duly incorporated or formed, as applicable, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate or other organizational power and authority to carry on its business. Each Amylin
Party is duly qualified and in good standing under the laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license (to the extent the concept of good standing
is applicable to such Amylin Party under the laws of such jurisdiction), except to the extent that failure so to qualify would not reasonably be expected to have a Material Adverse Effect. 
 4.2     Authorization; Due Execution. Each Amylin Party has the requisite corporate or other organizational power and authority to enter into each of the Note Documents to which
it is a party and to perform its obligations under the terms of each of the Note Documents to which it is a party. All corporate or other organizational action on the part of each Amylin Party, its respective officers, directors, stockholders,
managers or members, as applicable, necessary for the authorization, execution, delivery and performance of each of the Note Documents to which such Amylin Party is a party has been taken. Each of the Note Documents has been duly authorized,
executed and delivered by each Amylin Party party thereto and, upon due execution and delivery by Lilly of the Note Documents to which it is a party, each of the Note Documents will be a valid and binding agreement of each Amylin Party party
thereto, enforceable in accordance with its respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by equitable principles.

 4.3     No Defaults. There exists no default under the provisions of any instrument or agreement evidencing,
governing or otherwise relating to any Other Material Indebtedness that would reasonably be expected to have a material adverse effect upon any Amylin Party’s ability to perform its obligations under any of the Note Documents to which such
Amylin Party is a party or the validity or enforceability of, or Lilly’s rights and remedies under, this Note or any of the other Note Documents. 

  
 8 

 4.4 Governmental Consents. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration or filing with, any federal, state, local or provincial governmental authority on the part of any Amylin Party is required in connection with the consummation of the transactions contemplated by the Note
Documents to which such Amylin Party is a party, except for (a) approvals, consents, qualifications, designations, or filings previously made, obtained, given or taken by such Amylin Party, (b) filings and recordings necessary to perfect
and continue the Liens on the Collateral granted by the Grantors in favor of Lilly and (c) recording of the transfer of registrations and applications for Copyrights, Patents and Trademarks (each, term as defined in the Security Agreement) upon
foreclosure. 
 4.5     No Conflict. Each Amylin Party’s execution, delivery and performance of each of the Note
Documents to which such Amylin Party is a party do not violate any provision of such Amylin Party’s Certificate of Incorporation, Certificate of Formation Bylaws or Limited Liability Company Agreement, as applicable, each as amended as of the
Effective Date (copies of which have been filed with Amylin’s SEC filings, in the case of Amylin, or provided to Lilly on the Effective Date in the case of Amylin Ohio LLC), any material agreement to which such Amylin Party is a party or by
which it is bound, any provision of any order, writ, judgment, injunction, decree, determination or award to which such Amylin Party is a party or by which it is bound, or, to Amylin’s knowledge, any law, rule or regulation currently in effect
having applicability to any Amylin Party, in each case to the extent such violation could reasonably be expected to result in a Material Adverse Effect. 
 4.6     Payment of Taxes. Each Amylin Party has filed all tax returns which were required to be filed by it prior to and as of the date of this Note. Each Amylin Party has paid
all taxes and assessments which to Amylin’s knowledge are payable by it, to the extent that the same have become due and payable and before they became delinquent, except for any taxes or assessments that are being contested in good faith by
appropriate proceedings properly instituted and diligently conducted. No Amylin Party has been informed in writing of any proposed material tax assessment against it or any of its properties for which adequate provision has not been made on its
books. 
 4.7     Collateral. The Amylin Parties (and none of their other Affiliates) own all Specified Collateral,
and Amylin is the contractual counterparty to the supplier under all of the Byetta Agreements described in clauses (i) through (v) of the definition of Byetta Agreements, in each case with respect to Specified Collateral and such Byetta
Agreements, subject to Permitted Liens, and to the knowledge of Amylin, each of such Byetta Agreements is a valid and binding obligation of Amylin and of the counterparty to each of such Byetta Agreements. 

4.8     Survival. All representations and warranties made by any Amylin Party under or in connection with any of the Note
Documents shall survive the Effective Date, notwithstanding any investigation made by Lilly or on Lilly’s behalf. 

  
 9 

 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF LILLY 
 Lilly hereby represents and warrants to Amylin as
of the Effective Date that: 
 5.1     Authorization; Due Execution. Lilly has the requisite corporate power and
authority to enter into this Note and the other Note Documents to which it is a party and to perform its obligations under the terms of this Note and such Note Documents. All corporate action on the part of Lilly, its officers, directors and
stockholders necessary for the authorization, execution, delivery and performance of this Note and the Note Documents to which it is a party have been taken. This Note and each other Note Document to which Lilly is a party has been duly authorized,
executed and delivered by Lilly, and, upon due execution and delivery by Amylin, this Note and each such other Note Document will be a valid and binding agreement of Lilly, enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally or by equitable principles. 
 5.2     Purchase Entirely for Own Account. This Note is given to Lilly in reliance upon Lilly’s representation to Amylin, which by Lilly’s execution of this Note it
hereby confirms, that this Note will be acquired for investment for Lilly’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that Lilly has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing this Note, Lilly further represents that it does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participation to
such Person or to any other Person other than its Affiliates, with respect to this Note. 
 5.3     Disclosure of
Information. Lilly has received all the information that it has requested and that it considers necessary or appropriate for deciding whether to enter into this Note. Lilly further represents that it has had an opportunity to ask questions and
receive answers from Amylin regarding the terms and conditions of the offering of the Note. 
 5.4     Investment
Experience. Lilly is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment in this Note. Lilly also represents it has not been organized solely for the purpose of acquiring this Note. 
 5.5     Accredited Investor. Lilly is an “accredited investor” as such term is defined in Rule 501 of the General Rules and Regulations prescribed by the SEC
pursuant to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”). 

  
 10 

 5.6     Restricted Securities. Lilly understands that (a) this Note has not
been registered under the Securities Act by reason of a specific exemption therefrom, that such securities must be held by it indefinitely and that Lilly must, therefore, bear the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Securities Act or is exempt from such registration; and (b) Amylin will instruct any transfer agent not to register the transfer of this Note (or any portion thereof) unless the conditions specified
in the legend set forth on the first page of this Note are satisfied, until such time as a transfer is made in compliance with the Securities Act and this Note. 
 ARTICLE VI 
 COVENANTS 

Amylin covenants and agrees that, during the Term, it will: 
 6.1     Governmental and Other Approvals. Apply for, obtain and maintain in effect, as applicable, or cause to be applied for, obtained and maintained in effect, all material
authorizations, consents, approvals, governmental or regulatory licenses, qualifications, exemptions, filings, declarations and registrations (whether with any court, governmental agency, regulatory authority, securities exchange or otherwise) which
are necessary in connection with the execution, delivery and performance by any Amylin Party of the Note Documents to which such Amylin Party is a party and the transactions consummated or to be consummated hereunder or thereunder. 

6.2     Compliance with Laws. Comply, and cause each other Amylin Party to comply, in all material respects with all
laws, rules and regulations applicable to any Amylin Party, except where failure to comply with any of the foregoing could not reasonably be expected to result in a Material Adverse Effect. 
 6.3     Payment of Taxes. Pay and discharge, or cause to be paid and discharged, (a) all taxes, assessments and governmental charges or levies imposed upon any Amylin Party
or its income or property prior to the date on which penalties attach thereto and (b) all lawful claims and debts which, if unpaid, are reasonably anticipated to become a lien upon any of its property; provided that no Amylin Party shall be
required to pay any such tax, assessment, charge, levy, claim or debt for which it has obtained a bond or insurance, or for which it has established a reserve, if the payment thereof is being contested in good faith and by appropriate proceedings
which are being reasonably and diligently pursued. 
 6.4     Collateral and Guarantee Matters. Notify Lilly promptly
(and in any event within fifteen (15) days) if any Affiliate that is not currently an Amylin Party has ownership of or title to any Collateral and, within fifteen (15) days after the delivery of such notice, cause any such Affiliate to
execute and deliver (a) the Guarantee Agreement or a joinder thereto in form and substance reasonably satisfactory to Lilly, and (b) the Security Agreement or a joinder thereto in form and substance reasonably satisfactory to Lilly;
provided, however, that in the case of any Affiliate that is a foreign corporation that has ownership of or title to any Collateral, such Affiliate shall not execute and deliver the documents described in clauses (a) and (b) above, but
rather, Amylin shall pledge to Lilly sixty-five percent (65%) of the total combined voting stock of such Affiliate on terms reasonably acceptable to Lilly. 

  
 11 

 ARTICLE VII 
 EVENTS OF DEFAULT 
 7.1     Events of Default. The occurrence or
existence of any of the following conditions or events shall constitute an “Event of Default” hereunder: 

(a)     Failure to Pay. 
 (i)     Amylin shall fail to pay (x) any Mandatory Payments as and when due under the Settlement and Termination Agreement, and such failure shall not have been cured within ten
(10) Business Days after written notice thereof is provided by Lilly to Amylin, or (y) any other Obligations due to Lilly under this Note, as and when due pursuant to the terms hereof, and such failure shall not have been cured within
thirty (30) days after written notice thereof is provided by Lilly to Amylin. 
 (ii)     Amylin shall
fail to pay any outstanding Obligations on the Maturity Date. 
 (b)     Insolvency; Bankruptcy. If
(i) any Amylin Party becomes insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they mature, or applies for, consents to, or acquiesces in the appointment of a trustee, receiver, liquidator, conservator
or other custodian for itself, or a substantial part of its property, or makes a general assignment for the benefit of creditors; (ii) any Amylin Party files a voluntary petition in bankruptcy or a trustee, receiver, liquidator, conservator or
other custodian is appointed for Amylin or for a substantial part of its property; (iii) any bankruptcy, reorganization, debt arrangement, or other proceedings under any bankruptcy or insolvency law, or any dissolution or liquidation
proceeding, is instituted by or against any Amylin Party, and the same is consented to or acquiesced by any Amylin Party, or otherwise remains undismissed for sixty (60) days; or (iv) any warrant of attachment is issued against any
substantial part of the property of any Amylin Party which is not released within thirty (30) days of service thereof. 

(c)     Representations and Warranties. Any representation or warranty made by any Amylin Party in
Section 4.2 or Section 4.7 shall fail to be true and correct in any material respect when made. 

(d)     Breach of Assignment Provisions. (i) Any assignment or other transfer made by any Amylin Party in
breach of Section 10.5 of this Note, Section 10.5 of the 

  
 12 

 
Security Agreement or Section 13.16 of the Settlement and Termination Agreement or (ii) in connection with any Transfer Trigger Event, any breach by Amylin of Section 13.17 of the
Settlement and Termination Agreement. 
 ARTICLE VIII 

LILLY’S RIGHTS AND REMEDIES 
 8.1     Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Lilly may, at its election, without notice of its election and without
demand, do any one or more of the following, all of which are authorized by Amylin: 
 (a)     Declare all
Obligations immediately due and payable (provided, that upon the occurrence of an Event of Default described in Sections 7.1(b) all Obligations shall become immediately due and payable without any action by Lilly); and 

(b)     Take any permitted actions pursuant to and in accordance with the Security Documents in connection with the
occurrence and continuation of an Event of Default. 
 8.2     Waiver of Defaults. No Event of Default shall be
waived by Lilly except in a written instrument specifying the scope and terms of such waiver and signed by an authorized officer of Lilly, and such waiver shall be effective only for the specific times and purposes given. No single or partial
exercise of any right, power or privilege hereunder, nor any delay in the exercise thereof, shall preclude other or further exercise of Lilly’s rights. No waiver of any Event of Default shall extend to any other or further Event of Default. No
forbearance on the part of Lilly in enforcing any of Lilly’s rights or remedies hereunder or under any of the other Note Documents shall constitute a waiver of any of its rights or remedies. 

8.3     Remedies Cumulative. Except as expressly provided herein or in the other Note Documents, Lilly’s rights and
remedies under this Note, the Note Documents, and all other agreements shall be cumulative. Except to the extent set forth in Section 10.8, Lilly shall have all other rights and remedies not expressly set forth herein as provided under
applicable law, or in equity. No exercise by Lilly of one right or remedy shall be deemed an election. No waiver by Lilly of any Event of Default on Amylin’s part shall be deemed a continuing waiver. No delay by Lilly shall constitute a waiver,
election, or acquiescence by it. No waiver by Lilly shall be effective unless made in a written document signed on behalf of Lilly and then shall be effective only in the specific instance and for the specific purpose for which it was given.

  
 13 

 8.4     Waiver. Amylin waives demand, protest, notice of protest, notice of
default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees at any time held by Lilly
on which Amylin may in any way be liable. 
 ARTICLE IX 

[RESERVED] 

ARTICLE X 

MISCELLANEOUS 

10.1     Entire Agreement; Amendment. This Note and the other Note Documents are being executed and delivered in connection
with the execution and delivery of the Settlement and Termination Agreement. This Note and the other Note Documents set forth the complete, final and exclusive agreement and all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes and terminates all prior and contemporaneous agreements and understandings between the Parties, whether oral or written, with respect
to the subject matter hereof. No subsequent alteration, amendment, change or addition to this Note shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of each Party. 

10.2     Governing Law; Jurisdiction; Waiver of Jury Trial. 

(a)     This Note, and each of the other Note Documents, shall be construed in accordance with, and governed by, the
laws of the State of New York, without giving effect to any conflicts of laws principles that might otherwise refer construction or interpretation of this Note to the substantive law of another jurisdiction. 

(b)     Notwithstanding Section 13.12 (Dispute Resolution) of the Settlement and Termination Agreement,
all actions, claims, suits or proceedings (“Actions”) arising out of or relating to this Note or any other Note Document shall be heard and determined exclusively in the United States District Court for the Southern District of New
York, or, if such court does not have subject matter jurisdiction, the state courts of New York located in New York County, and any appellate court from any thereof; provided, that any Action with respect to Amylin’s compliance with the
provisions set forth in Section 2.2 hereof shall be heard and determined in accordance with the provision set forth in Section 13.12 of the Settlement and Termination Agreement. Consistent with (and subject to the proviso set forth
in) the preceding sentence, the Parties hereby (i) submit to the exclusive jurisdiction of any such courts for the purpose of any Action arising out of or relating to this Note or any such Note Document brought by either Party and
(ii) irrevocably waive, to the fullest extent 

  
 14 

 
permitted by applicable law, and agree not to assert as a defense, counterclaim or otherwise, in any such Action, any objection that it may now or hereafter have to the laying of the venue of any
such Action brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. Each Party agrees that notice or the service of process in any Action arising out of or relating to
this Note or any such Note Document shall be properly served or delivered if delivered in the manner provided for notices by Section 10.4 of this Note. 
 (c)     EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BETWEEN THE PARTIES
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER NOTE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HEREBY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF THE OTHER PARTY OR PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY OR PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO
THIS NOTE AND THE TRANSACTIONS CONTEMPLATED BY THIS NOTE, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.2. 
 10.3     Certain Provisions of Settlement and Termination Agreement. The following provisions of the Settlement and Termination Agreement shall be incorporated by reference
herein, mutatis mutandis, as if set forth at length in this Note: Section 13.15 (No Strict Construction), Section 13.18 (Counterparts), Section 13.20 (Severability), Section 13.21 (Ambiguities)
and Section 13.22 (Headings). 
 10.4     Notices. All notices which are required or
permitted hereunder will be in writing and sufficient if delivered personally or sent by nationally-recognized overnight courier (with confirmation of delivery) addressed as follows: 

 

			
	If to Amylin, to:	  	 
		
		  	Amylin Pharmaceuticals, Inc.
		  	9360 Towne Centre Drive
		  	San Diego, California 92121
		  	Attention: Chairman and Chief Executive Officer
		
	with a copy to:	  	Amylin Pharmaceuticals, Inc.
		  	9360 Towne Centre Drive
	 	  	San Diego, California 92121
		  	Attention: General Counsel

  
 15 

  

			
	with a copy to:	  	Skadden, Arps, Slate, Meagher & Flom LLP
		  	Four Times Square
		  	New York, NY 10036
		  	Attention: Nancy Lieberman
		
	if to Lilly, to:	  	Eli Lilly and Company
		  	Lilly Corporate Center
		  	Indianapolis, IN 46285
		  	Attention: General Counsel
		
	with a copy to:	  	Covington & Burling LLP
		  	1201 Pennsylvania Ave., N.W.
		  	Washington, D.C. 20004
		  	Attention: John A. Hurvitz

 or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in
accordance herewith. Any such notice will be deemed to have been given when delivered if personally delivered or on the Business Day after dispatch if sent by nationally-recognized overnight courier (with confirmation of delivery). 

10.5     Assignment. This Note and the other Note Documents and the rights and obligations of the Parties hereunder and
thereunder will inure to the benefit and be binding upon each Party, its successors and permitted assigns. No Amylin Party may assign or otherwise transfer this Note or any other Note Documents to which such Amylin Party is a party or any right or
obligation hereunder or thereunder without the prior written consent of Lilly (such consent not to be unreasonably conditioned, withheld or delayed), provided that any Transfer Trigger Event shall be subject to the terms of, and consummated in
compliance with, the provisions set forth in Section 13.16 and Section 13.17 of the Settlement and Termination Agreement. Lilly may not assign or otherwise transfer this Note or any other Note Document or any right or obligation hereunder
or thereunder without the prior written consent of Amylin (such consent not to be unreasonably conditioned, withheld or delayed); provided, that Lilly may, without any Amylin Party’s consent, assign or otherwise transfer this Note and
the other Note Documents and its rights and obligations hereunder and thereunder (a) to an Affiliate of Lilly; (b) in connection with the transfer or sale of all or substantially all of Lilly’s assets, or in the event of Lilly’s
merger or consolidation or change in control or similar transaction; or (c) in connection with a Monetization by Lilly. Notwithstanding the foregoing, no assignment or transfer of this Note may be made in violation of the restrictive legend set
forth on the face of this Note. Any attempted assignment not in accordance with this Section 10.5 will be void. 

  
 16 

 10.6     No Waiver. Any delay in enforcing a Party’s rights under this Note
or any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Note, excepting only as to an express written and signed waiver as to a particular
matter for a particular period of time. All rights and remedies existing under this Note and the other Note Documents are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

10.7     Surrender of Note. Promptly following the irrevocable payment in full of the Obligations or termination of this Note
in accordance with its terms, as applicable, Lilly shall surrender this Note marked “Cancelled or Paid in Full.” 

10.8     Remedies for Other Defaults; Limited Recourse. Notwithstanding anything to the contrary contained in this Note or any
other Note Document, the parties hereto agree that: 
 (a)     Lilly shall be permitted to exercise rights
and remedies against any Amylin Party or any Grantor for such Person’s failure to perform or observe any covenant or agreement under this Note or any other Note Document or for any inaccuracy of any representation or warranty made by such
Person under this Note or under any other Note Document if and only if an Other Default or Event of Default has occurred and is continuing. 
 (b)     Upon the occurrence and during the continuance of an Other Default, Lilly shall have all rights and remedies provided under applicable law or in equity. 

(c)     No Amylin Party or Grantor shall be liable under this Note, any other Note Document, the Settlement and
Termination Agreement or any other Ancillary Agreements for any indirect, incidental, consequential, special or punitive damages (including, without limitation, damages for loss of profits or loss of business opportunities) arising out of this Note,
any other Note Document, the Settlement and Termination Agreement or any other Ancillary Agreements, in each case whether or not caused by or resulting from the activities of such Person, the occurrence of any Event of Default, the occurrence of any
Other Default or any other breach of, default by or other failure of such Person under this Note, any other Note Document, the Settlement and Termination Agreement or any other Ancillary Agreements and, in any such case, regardless of whether such
Person has been advised of the possibility of any such damage. 
 (d)     Upon the breach of, default by or
other failure of any Amylin Party or any Grantor under this Note or any other Note Document, other than upon the occurrence or existence of, and during the continuation of, an Event of Default, Lilly shall have no right to exercise remedies pursuant
to the Security Agreement (for clarity, upon an Other Default, Lilly shall have the rights set forth in Section 10.8(b) above). 
 (e)     The sole recourse of Lilly in respect of the Secured Obligations hereunder or under any other Note Document shall be to the Collateral under the Security Documents, and Lilly
agrees that it shall not seek to enforce any monetary judgment with 

  
 17 

 
respect to the Secured Obligations hereunder or under any other Note Document other than against the Collateral; provided that, notwithstanding the foregoing: (i) Lilly shall have the rights
described in Section 10.8(b) with respect to any Other Default; and (ii) Lilly shall not be limited in seeking recourse against any Amylin Party, or any Amylin Party’s assets (whether pledged pursuant to the Security Agreement or
otherwise) for any breach by Amylin of the Settlement and Termination Agreement or with respect to any indemnification obligations or other amounts owing by any Amylin Party thereunder, including, without limitation, pursuant to the provisions of
Article IV thereof (even if such obligations are referenced as Mandatory Payments herein). 
 (f) Lilly shall be
permitted to declare all Obligations immediately due and payable if and only if an Event of Default has occurred and is continuing at the time of such declaration. 
 10.9 Schedules, Exhibits and Attachments. All schedules, exhibits and attachments referred to herein are intended to be and hereby are specifically made part of this Note. However, if there is a
conflict between a term or condition of such schedules, exhibits and attachments and this Note, the terms and conditions of this Note shall prevail. 
 [Signature page follows] 

  
 18 

 IN WITNESS WHEREOF, Amylin has caused this Note to be issued as of the date first
above written. 
  

			
	AMYLIN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Daniel M. Bradbury

		 	Name: Daniel M. Bradbury
		 	Title: President and CEO

  

			
	AGREED AND ACKNOWLEDGED:
	
	ELI LILLY AND COMPANY
		
	By:	 	 /s/ Enrique Conterno

		 	Name: Enrique A. Conterno
		 	Title: Senior VP and President – Lilly Diabetes

 [CORPORATE SEAL] 

 EXECUTION VERSION 
 EXHIBIT A 
 FORM OF GUARANTEE AGREEMENT 

(See Attached.) 

 EXECUTION VERSION 
 SUBSIDIARY GUARANTEE AGREEMENT 
 THIS SUBSIDIARY GUARANTEE
AGREEMENT (this “Agreement”) is made as of this 7th day of November, 2011 (the “Effective Date”), by Amylin Ohio LLC, a Delaware limited liability company (“Amylin Ohio”), and each of the other parties hereto as an
Additional Guarantor (as herein defined) (collectively with Amylin Ohio, the “Subsidiary Guarantors”), in favor of Eli Lilly and Company, an Indiana corporation (“Lilly”). Each of the Subsidiary Guarantors and Lilly
are sometimes referred to herein as a “Party” and collectively as the “Parties”. “Amylin Parties” has the meaning set forth in the Note, and for clarity, each Subsidiary Guarantor shall be an
“Amylin Party” under the Note Documents. 
 RECITALS 

WHEREAS, reference is made to the Secured Promissory Note, dated as of the Effective
Date, given by Amylin Pharmaceuticals, Inc., a Delaware corporation (“Amylin”), in favor of Lilly in the initial principal amount of $1,200,000,000 (as it may be amended, modified, supplemented or restated from time to time, the
“Note”; capitalized terms used in this Agreement and not otherwise defined in this Agreement, shall have the meanings set forth in the Note); 
 WHEREAS, the Subsidiary Guarantors have agreed to execute this Agreement in the form hereof pursuant to the terms of the Note; and 

WHEREAS, each of the Subsidiary Guarantors is a direct or indirect wholly-owned
Subsidiary of Amylin and acknowledges that it has derived substantial benefit from the Note. 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants
and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows: 

AGREEMENT 
 Section 1. Guaranty. Each Subsidiary Guarantor guarantees, jointly with the other Subsidiary Guarantors and severally, as a primary obligor and not merely as a surety, the due
and punctual payment when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all Obligations (the “Guaranteed Obligations”, and the guarantee referred to in the preceding clause being collectively
referred to as the “Guarantee”). Each Subsidiary Guarantor agrees to comply with all covenants, agreements and obligations of the Amylin Parties under or pursuant to the Note Documents applicable to such Subsidiary Guarantor. Each
Subsidiary Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its Guarantee notwithstanding any extension or
renewal of any Guaranteed Obligations. 

 Section 2. Obligations Not Waived. To the fullest
extent permitted by applicable law and subject to Section 21, each Subsidiary Guarantor waives presentment to, demand of payment from and protest to Amylin or any other Subsidiary Guarantor of any of the Guaranteed Obligations, and also waives
notice of acceptance of its guaranty and notice of protest for nonpayment other than with respect to notice requirements in connection with any Event of Default or Other Default. To the fullest extent permitted by applicable law and subject to
Section 21, the obligations of each Subsidiary Guarantor hereunder shall not be affected by (a) the failure of Lilly to assert any claim or demand or to enforce or exercise any right or remedy against Amylin or any other Subsidiary
Guarantor under the provisions of the Note Documents or otherwise, (b) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Note Document (other than this Agreement and the termination
of the Note pursuant to its terms) or (c) the failure to perfect any security interest in, any of the security held by or on behalf of Lilly. 
 Section 3. [Reserved]. 
 Section 4.
[Reserved]. 
 Section 5. Defenses Waived. Subject to Section 21,
Lilly may, at its election, foreclose on any security held by it pursuant to the terms of the Security Agreement, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with Amylin or any Subsidiary Guarantor,
without affecting or impairing in any way the liability of any other Subsidiary Guarantor hereunder except to the extent the Guaranteed Obligations have been fully, finally and indefeasibly paid in cash or the Note has terminated pursuant to its
terms. Pursuant to applicable law but subject to Section 21, each Subsidiary Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Subsidiary Guarantor against Amylin or any other Subsidiary Guarantor or guarantor, as the case may be, or any security. 

Section 6. Subordination. Upon payment by any Subsidiary Guarantor of any sums to Lilly under
this Agreement, all rights of such Subsidiary Guarantor against Amylin arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior in right of
payment to the prior indefeasible payment in full in cash of all the Guaranteed Obligations or the termination of the Note pursuant to its terms. If any amount shall erroneously be paid to any Subsidiary Guarantor on account of such subrogation,
contribution, reimbursement, indemnity or similar right, such amount shall be held in trust for the benefit of Lilly and shall promptly be paid to Lilly to be credited against the payment of the Guaranteed Obligations, whether matured or unmatured,
in accordance with the terms of the Note Documents, subject to Section 21. 
 Section 7.
Information. Each Subsidiary Guarantor assumes all responsibility for being and keeping itself informed of Amylin’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligations and the nature, scope and extent of the risks that such Subsidiary Guarantor assumes and incurs hereunder, and agrees that Lilly will not have any duty to advise any of the Subsidiary Guarantors of information known to it or
any of them regarding such circumstances or risks. 

  
 2 

 Section 8. Indemnity and Subrogation. In addition to all
such rights of indemnity and subrogation as the Subsidiary Guarantors may have under applicable law (but subject to Section 6), Amylin agrees that (a) in the event a payment shall be made by any Subsidiary Guarantor under this Agreement,
Amylin shall indemnify such Subsidiary Guarantor for the full amount of such payment and such Subsidiary Guarantor shall be subrogated to the rights of the person to whom such payment shall have been made to the extent of such payment and
(b) in the event any assets of any Subsidiary Guarantor shall be sold to satisfy a claim of Lilly, Amylin shall indemnify such Subsidiary Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so
sold. 
 Section 9.    Contribution and Subrogation. Each Subsidiary Guarantor
(a “Contributing Subsidiary Guarantor”) agrees (subject to Section 6) that, in the event a payment shall be made by any other Subsidiary Guarantor under this Agreement or assets of any other Subsidiary Guarantor shall be sold
to satisfy a claim of Lilly and such other Subsidiary Guarantor (the “Claiming Subsidiary Guarantor”) shall not have been fully indemnified by Amylin as provided in Section 8, the Contributing Subsidiary Guarantor shall
indemnify the Claiming Subsidiary Guarantor in an amount equal to the amount of such payment or the greater of the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator
shall be the net worth of the Contributing Subsidiary Guarantor on the Effective Date and the denominator shall be the aggregate net worth of all the Subsidiary Guarantors on the Effective Date (or, in the case of any Subsidiary Guarantor becoming a
party hereto pursuant to Section 20, the date of the Supplement hereto executed and delivered by such Subsidiary Guarantor). Subject to Section 6, any Contributing Subsidiary Guarantor making any payment to a Claiming Subsidiary Guarantor
pursuant to this Section 9 shall be subrogated to the rights of such Claiming Subsidiary Guarantor under Section 8 to the extent of such payment. 
 Section 10. Further Subordination. Notwithstanding any provision of this Agreement to the contrary, all rights of the Subsidiary Guarantors under Section 8 and Section 9 and
all other rights of indemnity, contribution or subrogation under applicable law or otherwise arising in connection with this Agreement shall be fully subordinated to the indefeasible payment in full in cash of the Guaranteed Obligations. No failure
on the part of Amylin or any Subsidiary Guarantor to make the payments required under applicable law shall in any respect limit the obligations and liabilities of any Subsidiary Guarantor with respect to its obligations hereunder, and each
Subsidiary Guarantor shall remain liable for the full amount of the obligations of such Subsidiary Guarantor hereunder, subject to Section 21. 
 Section 11. Representations and Warranties. Amylin Ohio represents and warrants as to itself that all representations and warranties relating to it contained Article IV of the
Note are true and correct in all material respects as of the Effective Date (and any Additional Guarantor shall be deemed to have provided such representations and warranties as of the date that it joins this Agreement pursuant to Section 20
hereof). 

  
 3 

 Section 12. Termination; Release. The Guarantees
made hereunder shall terminate upon the earlier of (i) indefeasible repayment in full of all Guaranteed Obligations or (ii) the termination of the Note. In connection with the foregoing, Lilly shall execute and deliver to each Subsidiary
Guarantor or Subsidiary Guarantor’s designee, at such Subsidiary Guarantor’s expense, any documents or instruments which such Subsidiary Guarantor shall reasonably request from time to time to evidence such termination and release. If a
Subsidiary Guarantor is no longer required to be a Subsidiary Guarantor pursuant to Section 6.4 of the Note, such Subsidiary Guarantor shall be released from its obligations under this Agreement without further action. 

Section 13. No Waivers. Any delay in enforcing a Party’s rights under this Agreement or
any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, excepting only as to an express written and signed waiver as to a
particular matter for a particular period of time. All rights and remedies existing under this Agreement and the other Note Documents are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 14. Entire Agreement; Amendment. This Agreement (together with the schedules and exhibits
hereto) and the other Note Documents are being executed and delivered in connection with the execution and delivery of the Settlement and Termination Agreement. This Agreement and the other Note Documents set forth the complete, final and exclusive
agreement and all the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes and terminates all prior and contemporaneous
agreements and understandings between the Parties, whether oral or written, with respect to the subject matter hereof. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to
writing and signed by an authorized officer of each Party. 
 Section 15. Governing Law; Jurisdiction; Waiver
of Jury Trial. 
 (a) This Agreement shall be construed in accordance with, and governed by, the laws of the State of
New York, without giving effect to any conflicts of laws principles that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. 

(b) All actions, claims, suits or proceedings (“Actions”) arising out of or relating to this Agreement shall be heard and
determined exclusively in the United States District Court for the Southern District of New York, or, if such court does not have subject matter jurisdiction, the state courts of New York located in New York County, and any appellate court from any
thereof. Consistent with the preceding sentence, the parties hereby (i) submit to the exclusive jurisdiction of any such courts for the purpose of any Action arising out of or relating to this Agreement brought by either party and
(ii) irrevocably waive, to the fullest extent permitted by applicable law, and agree not to assert as a defense, counterclaim or otherwise, in any such Action, any objection that it may now or hereafter have to the laying of the venue of any
such Action brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. Each party agrees that notice or the service of process in any Action arising out of or relating to this
Agreement shall be properly served or delivered if delivered in the manner provided for notices by Section 17 of this Agreement. 

  
 4 

 (c) EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BETWEEN THE PARTIES DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES
HEREBY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY OR PARTIES HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY OR PARTIES WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER
AND (II) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15. 

Section 16. Certain Provisions of Settlement and Termination Agreement. The following provisions of
the Settlement and Termination Agreement shall be incorporated by reference herein, mutatis mutandis, as if set forth at length in this Agreement: Section 13.15 (No Strict Construction), Section 13.18 (Counterparts), Section 13.20
(Severability), Section 13.21 (Ambiguities) and Section 13.22 (Headings). 
 Section 17.
Notices. All notices hereunder shall be in writing and given in the manner provided in Section 10.4. All notices hereunder to any Subsidiary Guarantor shall be given to it at its address set forth on Schedule I attached
hereto or to such other address as such Subsidiary Guarantor may have furnished to Lilly in writing in accordance herewith. 
 Section 18. Assignment. This Agreement and the rights and obligations of the Parties will inure to the benefit and be binding upon each Party and its successors and permitted
assigns. No Party may assign this Agreement or any rights or obligations hereunder except in accordance with Section 10.5 of the Note. Any attempted assignment not in accordance with this Section 18 will be void. 

Section 19. [Reserved]. 

Section 20. Additional Subsidiaries. From time to time subsequent to the date hereof,
additional Persons may (and shall, as and to the extent required under the Note) become parties hereto as additional Subsidiary Guarantors (each, an “Additional Guarantor”), by executing an instrument substantially in the form of
Annex 1. Upon execution and delivery after the Effective Date by Lilly and such Subsidiary of an instrument in the form of Annex 1, such Subsidiary shall become a Subsidiary Guarantor hereunder with the same force and effect as if
originally named as a Subsidiary Guarantor herein. The execution and delivery of any instrument adding an additional Subsidiary Guarantor as a party to this Agreement shall not require the consent of any other Subsidiary Guarantor hereunder. The
rights and obligations of each Subsidiary Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Guarantor as a party to this Agreement. 

  
 5 

 Section 21. Remedies for Other Defaults; Limited Recourse.
Notwithstanding anything to the contrary in this Agreement or any other Note Document, the Parties hereto agree that: 
 (a)     Lilly shall be permitted to exercise rights and remedies against any Amylin Party or any Grantor for such Person’s failure to perform or observe any covenant or agreement
under this Agreement or any other Note Document or for any inaccuracy of any representation or warranty made by such Person under this Agreement or under any other Note Document if and only if an Other Default or Event of Default has occurred and is
continuing. 
 (b)     Upon the occurrence and during the continuance of an Other Default,
Lilly shall have all rights and remedies provided under applicable law or in equity. 

(c)     No Amylin Party or Grantor shall be liable under this Agreement, any other Note Document, the
Settlement and Termination Agreement or any other Ancillary Agreements for any indirect, incidental, consequential, special or punitive damages (including, without limitation, damages for loss of profits or loss of business opportunities) arising
out of this Agreement, any other Note Document, the Settlement and Termination Agreement or any other Ancillary Agreements, in each case whether or not caused by or resulting from the activities of such Person, the occurrence of any Event of
Default, the occurrence of any Other Default or any other breach of, default by or other failure of such Person under this Agreement, any other Note Document, the Settlement and Termination Agreement or any other Ancillary Agreements and, in any
such case, regardless of whether such Person has been advised of the possibility of any such damage. 

(d)     Upon the breach of, default by or other failure of any Amylin Party or any Grantor under this
Agreement or any other Note Document, other than upon the occurrence or existence of, and during the continuation of, an Event of Default, Lilly shall have no right to exercise remedies pursuant to the Security Agreement (for clarity, upon an Other
Default, Lilly shall have the rights set forth in Section 21(b) above). 
 (e)     The
sole recourse of Lilly in respect of the Guaranteed Obligations hereunder or under any other Note Document shall be to the Collateral under the Security Documents, and Lilly agrees that it shall not seek to enforce any monetary judgment with respect
to the Guaranteed Obligations hereunder or under any other Note Document other than against the Collateral; provided that, notwithstanding the foregoing: (i) Lilly shall have the rights described in Section 21(b) with respect to any Other
Default; and (ii) Lilly shall not be limited in seeking recourse against any Amylin Party, or any Amylin Party’s assets for any breach by Amylin of the Settlement and Termination Agreement or with respect to any indemnification obligations
or other amounts owing by any Amylin Party thereunder, including, without limitation, pursuant to the provisions of Article IV thereof (even if such obligations are referenced as Mandatory Payments in the Note Documents). 

(f)     Lilly shall be permitted to declare all Obligations immediately due and payable if and only
if an Event of Default has occurred and is continuing at the time of such declaration. 

  
 6 

 Section 22. Savings Clause. 

(a) It is the intent of each Subsidiary Guarantor and Lilly that each Subsidiary Guarantor’s maximum obligations
hereunder shall be, but not in excess of: 
 (i)     in a case or proceeding commenced by
or against any Subsidiary Guarantor under the provisions of Title 11 of the United States Code, 11 U.S.C. §§101 et seq. (the “Bankruptcy Code”) on or within two years from the date on which any of the Guaranteed
Obligations are incurred, the maximum amount which would not otherwise cause the Guaranteed Obligations (or any other obligations of such Subsidiary Guarantor owed to Lilly) to be avoidable or unenforceable against such Subsidiary Guarantor under
(x) Section 548 of the Bankruptcy Code or (y) any state fraudulent transfer or fraudulent conveyance act or statute applied in such case or proceeding by virtue of Section 544 of the Bankruptcy Code; or 

(ii)     in a case or proceeding commenced by or against any Subsidiary Guarantor under the
Bankruptcy Code subsequent to two years from the date on which any of the Guaranteed Obligations are incurred, the maximum amount which would not otherwise cause the Guaranteed Obligations (or any other obligations of such Subsidiary Guarantor to
Lilly) to be avoidable or unenforceable against such Subsidiary Guarantor under any state fraudulent transfer or fraudulent conveyance act or statute applied in any such case or proceeding by virtue of Section 544 of the Bankruptcy Code; or

 (iii)     in a case or proceeding commenced by or against any Subsidiary Guarantor under any law,
statute or regulation other than the Bankruptcy Code (including, without limitation, any other bankruptcy, reorganization, arrangement, moratorium, readjustment of debt, dissolution, liquidation or similar debtor relief laws), the maximum amount
which would not otherwise cause the Guaranteed Obligations (or any other obligations of such Subsidiary Guarantor to Lilly) to be avoidable or unenforceable against such Subsidiary Guarantor under such law, statute or regulation including, without
limitation, any state fraudulent transfer or fraudulent conveyance act or statute applied in any such case or proceeding. 

  
 7 

 (b)     The substantive laws under which the possible avoidance or
unenforceability of the Guaranteed Obligations (or any other obligations of such Subsidiary Guarantor to Lilly) shall be determined in any case or proceeding shall hereinafter be referred to as the “Avoidance Provisions.” To the
extent set forth in Section 22(a) (i), (ii), and (iii), but only to the extent that the Guaranteed Obligations would otherwise be subject to avoidance or found unenforceable under the Avoidance Provisions, if any Subsidiary Guarantor is not
deemed to have received valuable consideration, fair value or reasonably equivalent value for the Guaranteed Obligations (to the extent applicable under the Avoidance Provisions), or if the Guaranteed Obligations would render such Subsidiary
Guarantor insolvent, or leave such Subsidiary Guarantor with an unreasonably small capital to conduct its business, or cause such Subsidiary Guarantor to have incurred debts (or to have intended to have incurred debts) beyond its ability to pay such
debts as they mature (to the extent applicable under the Avoidance Provisions), in each case as of the time any of the Guaranteed Obligations are deemed to have been incurred under the Avoidance Provisions and after giving effect to the contribution
by such Subsidiary Guarantor, the maximum Guaranteed Obligations for which such Subsidiary Guarantor shall be liable hereunder shall be reduced to that amount which, after giving effect thereto, would not cause the Guaranteed Obligations (or any
other obligations of such Subsidiary Guarantor to Lilly), as so reduced, to be subject to avoidance or unenforceability under the Avoidance Provisions. 
 (c)     This Section 22 is intended solely to preserve the rights of Lilly hereunder to the maximum extent that would not cause the Guaranteed Obligations of such Subsidiary
Guarantor to be subject to avoidance or unenforceability under the Avoidance Provisions, and neither the Subsidiary Guarantors nor any other person shall have any right or claim under this Section 22 as against Lilly that would not otherwise be
available to such person under the Avoidance Provisions. 
 Section 23. Schedules, Exhibits and
Attachments. All schedules, exhibits and attachments referred to herein are intended to be and hereby are specifically made part of this Agreement. However, if there is a conflict between a term or condition of such schedules, exhibits and
attachments and this Agreement, the terms and conditions of this Agreement shall prevail. 
 [Signature pages follow]

  
 8 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

			
	AMYLIN OHIO LLC
		
	 By:
	 	  

		 	Name:
		 	Title:
	
	 ELI LILLY AND COMPANY

		
	 By:
	 	  

		 	Name:
		 	Title:

  

[SIGNATURE PAGE TO SUBSIDIARY GUARANTEE AGREEMENT] 

 SCHEDULE I TO THE 
 SUBSIDIARY GUARANTEE AGREEMENT 
 ADDRESSES FOR NOTICES: 

 

			
	If to Amylin Ohio, to:	 	 
		 	Amylin Ohio LLC
		 	c/o Amylin Pharmaceuticals, Inc.
		 	9360 Towne Centre Drive
		 	San Diego, California 92121
		 	Attention: Chairman and Chief Executive Officer
		
	with a copy to:	 	Amylin Pharmaceuticals, Inc.
		 	9360 Towne Centre Drive
		 	San Diego, California 92121
		 	Attention: General Counsel
		
	with a copy to:	 	Skadden, Arps, Slate, Meagher & Flom LLP
		 	Four Times Square
		 	New York, NY 10036
		 	Attention: Nancy Lieberman
		
	if to Lilly, to:	 	Eli Lilly and Company
		 	Lilly Corporate Center
		 	Indianapolis, IN 46285
		 	Attention: General Counsel
		
	with a copy to:	 	Covington & Burling LLP
		 	1201 Pennsylvania Ave., N.W.
		 	Washington, D.C. 20004
		 	Attention: John A. Hurvitz

  

 ANNEX 1 TO THE 
 SUBSIDIARY GUARANTEE AGREEMENT 
 SUPPLEMENT NO. [    ] dated
as of [                    ] (this “Supplement”), to the Subsidiary Guarantee Agreement (as amended, modified, supplemented or
restated from time to time, the “Guarantee Agreement”) dated as of November 7, 2011 (the “Effective Date”) executed by Amylin Ohio LLC, a Delaware corporation, in favor of Eli Lilly and Company, an Indiana
corporation (“Lilly”). Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the Guarantee Agreement. 
 RECITALS 
 WHEREAS,
reference is made to the Secured Promissory Note, dated as of the Effective Date, given by Amylin in favor of Lilly in the initial principal amount of $1,200,000,000 (as it may be amended, modified, supplemented or restated from time to time, the
“Note”); 
 WHEREAS, as a condition to the effectiveness of the Note,
Amylin Ohio LLC executed the Guarantee Agreement; and 
 WHEREAS, the undersigned
Subsidiary of Amylin is a direct or indirect wholly-owned Subsidiary of Amylin and acknowledges that it has derived substantial benefit from the Note. 
 WHEREAS, FROM time to time subsequent to the Effective Date, additional Persons may be required pursuant to Section 6.4 of the Note to become
parties to the Guarantee Agreement as additional Subsidiary Guarantors, and the undersigned Subsidiary of Amylin (the “New Subsidiary Guarantor”) is executing this Supplement in accordance with such requirements of the Note and the
Guarantee Agreement to become a Subsidiary Guarantor. 
 NOW, THEREFORE, in consideration
of the foregoing recitals and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do
hereby agree as follows: 
 AGREEMENT 

Section 1. In accordance with Section 6.4 of the Note and Section 20 of the Guarantee Agreement, the New Subsidiary
Guarantor by its signature below becomes a Subsidiary Guarantor under the Guarantee Agreement with the same force and effect as if originally named therein as a Subsidiary Guarantor, and the New Subsidiary Guarantor hereby (a) agrees to all the
terms and provisions of the Guarantee Agreement and the other Note Documents (as such term is defined in the Guarantee Agreement) applicable 

  

 
to it as Subsidiary Guarantor and (b) represents and warrants that the representations and warranties made by it as a Subsidiary Guarantor under the Guarantee Agreement and the other Note
Documents are true and correct in all material respects on and as of the date hereof. Each reference to a Subsidiary Guarantor in the Guarantee Agreement shall be deemed to include the New Subsidiary Guarantor. The Guarantee Agreement is hereby
incorporated herein by reference. 
 Section 2. The New Subsidiary Guarantor represents and warrants to Lilly that
this Supplement has been duly authorized, executed and delivered by it and assuming due authorization, execution and delivery by Lilly, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except
as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting enforcement of creditors’ rights generally and by general principles of equity. 

Section 3. This Supplement shall become effective as to the New Subsidiary Guarantor when a counterpart hereof executed on
behalf of the New Subsidiary Guarantor shall have been delivered to Lilly, and a counterpart hereof shall have been executed on behalf of Lilly. This Supplement may be executed in two or more counterparts, each of which will be deemed an original,
but all of which together will constitute one and the same instrument. 
 Section 4. Except as expressly
supplemented hereby, the Guarantee Agreement shall remain in full force and effect. 
 Section 5. This Supplement
shall be construed in accordance with, and governed by, the laws of the State of New York, without giving effect to any conflicts of laws principles that might otherwise refer construction or interpretation of this Agreement to the substantive law
of another jurisdiction. 
 Section 6. In case any provision of this Supplement shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 7. All notices hereunder shall be in writing and given in the manner provided in Section 17 of the Guarantee Agreement. All notices hereunder to the New Subsidiary Guarantor shall
be given to it at its address set forth under its signature below, with a copy to Amylin. 
 1. 

[Signature pages follow] 

  

			
	 [NEW SUBSIDIARY GUARANTOR]

		
	By:	 	  

		 	Name:
		 	Title:
	
	ELI LILLY AND COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

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