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Exhibit 10.12    
    

        ***Text Omitted and Filed Separately

Pursuant to a Confidential Treatment Request

Under C.F.R. §§ 200.80(b)(4) and Rule 406

of the Securities Act of 1933, as amended.  

 LICENSE AGREEMENT  

        This Agreement made and entered into by and between KYOWA HAKKO KOGYO CO., LTD., a Japanese corporation
having its principal offices at 1-6-1 Ohtemachi, Chiyoda-ku, Tokyo, 100-8185, Japan (hereinafter referred to as
"KH") and NOVACARDIA, INC., a Delaware corporation having its principal offices at 12230 El
Camino Real, Suite 300, San Diego, California, 92130, United States of America (hereinafter referred to as "NC"). 

WITNESSETH  

        WHEREAS, KH has developed a certain valuable compound; 

        WHEREAS, KH has through such development acquired certain useful technology and intellectual property rights; 

        WHEREAS, NC highly appreciates and wishes to utilize such technology and intellectual property rights; 

        WHEREAS, KH wishes to transfer such technology to NC and to grant a license to NC under such technology and intellectual property rights;
and 

        WHEREAS, NC wishes to accept such technology and to be granted such license; 

        NOW, THEREFORE, the parties agree as follows: 

SECTION 1.    DEFINITION    

        In
this Agreement the following term shall have the following meaning, respectively: 

        1.1   The term "Affiliate" of a party shall mean a person, corporation,
partnership or other entity which Controls, is Controlled by or is under common Control with the party. 

        1.2   The term "Authority" shall mean a governmental authority having
jurisdiction over import, export, development, manufacture, marketing or sales of medicinal products, including the FDA. 

        1.3   The term "Business Day" shall mean a day other than a Saturday, Sunday,
national or bank holiday in Japan or the United States of America. 

        1.4   The term "Combination Product" shall mean the Product which contains the
KW-3902 and one or more other therapeutically active ingredients. 

        1.5   The term "Control" over an entity shall mean (1) directly or
indirectly to hold more than fifty percent (50%) of (i) the nominal value of the issued share capital or (ii) the ownership interest in the entity or (2) the ability to direct the
affairs of the entity by means of (i) possession of the share capital or ownership interest in the entity, (ii) the articles of association or other internal regulations of the entity or
(iii) any contracts binding the entity. 

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        1.6   The term "D.A." shall mean Domain Associates, L.L.C.,
28202 Cabot Road, Suite 200, Laguna Niguel, California, 92677, United States of America and at One Palmer Square, Princeton, New Jersey, 08542, United States of America. 

        1.7   The term "Derivative Patent" shall mean the divisional patents,
continuation patents, continuation-in-part patents, extension patents, substitution patents, renewals, registrations, revalidation, reissues, additions, confirmations of or to
the Original Patent and the Future Patent as well as the SPC of the Original Patent, the Future Patent and the Derivative Patent. 

        1.8   The term "Effective Date" shall mean the last date when either party
signs this Agreement. 

        1.9   The term "Exhibit 1",
"Exhibit 2" or "Exhibit 3" shall mean the exhibit attached hereto and made integral part
hereof. 

        1.10 The term "Expiration" of a patent shall mean the expiration, abandonment
or cancellation of the patent, or, the declaration of invalidity or non-enforceability of all the claims of the patent by a court or other governmental authority of competent jurisdiction
(including final rejection in re-examination or re-issue proceedings) from which no further appeal has been taken during the applicable appeal period or is not allowed to be
taken against such declaration. 

        1.11 The term "FDA" shall mean the Food and Drug Administration of the United
States Department of Health and Human Services. 

        1.12 The term "Field" shall mean (1-1) the treatment of
[. . .***. . .], (1-2) the treatment of edema caused by
[. . .***. . .], cardiac [. . .***. . .]
failure, (1-3) the treatment of [. . .***. . .] (these three categories of treatment shall be hereinafter
collectively referred to as "First Indication"), (2) the treatment of congestive heart failure (hereinafter referred to as
"Second Indication"), (3-1) the treatment of [. . .***. . .],
(3-2) the treatment of [. . .***. . .] or (3-3) the treatment of
[. . .***. . .] (these three categories of treatment shall be hereinafter collectively referred to as
"Third Indication"). 

        1.13 The term "Force Majeure" shall mean such event or circumstance as Act of
God, storm, earthquake, flood, epidemic, governmental acts or omissions, acts of public enemies and terrorists, wars, civil disorders, failure of public utilities or common carriers, riots,
rebellions, strikes, lockouts, sabotages and other, labor disturbances and fire, which is beyond the reasonable control of the party suffering therefrom and which such party is not expected to take
into account on the Effective Date and which results in and causes such party's failure to perform any of its obligations hereunder. 

        1.14 The term "Future Patent" shall mean the patents which would issue from
the Original Patent Application. 

***Confidential Treatment Requested

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        1.15 The term "GLP" means the then current "GLP Standard for Toxicity Studies
of Drugs" (Notification No. 313) issued by the Director-General of the Pharmaceutical Affairs Bureau, the Ministry of Health and Welfare as Japanese Authority, as of March 31, 1982, as
amended as of October 1, 1983 and October 5, 1988. 

        1.16 The term "Gross Sales" of the Product made by NC or the Sublicensee
shall mean the total amount of the invoice prices charged for the first time for such Product in its at-arm's-length sales transactions. Sales, transfer or other disposition of the Product
among NC, the Sublicensee and their respective Affiliates shall not be considered at-arm's-length and shall not be the transactions for the Gross Sales, however, the subsequent sales,
transfer or other disposition of such Product by NC, the Sublicensee or their respective Affiliates in at-arm's-length sales transactions shall be included in the Gross Sales. 

        1.17 The term "IV Product" shall mean the Product formulated for intravenous
administration. 

        1.18 The term "KH Data" shall mean any clinical, non-clinical and
other data which has been developed or acquired in relation to the KW-3902 and the Product by KH as of the Effective Date. 

        1.19 The term "KH Developed Data" shall mean any clinical,
non-clinical and other data which may be developed in relation to the KW-3902 and the Product by KH from the Effective Date until the expiration or termination of this
Agreement. 

        1.20 The term "KH Improvement" shall mean (1) the modification or
refinement, whether patentable or not, which KH may make to the KH Invention from the Effective Date until the expiration or termination of this Agreement and which solely relates to the manufacture
of the KW-3902 or the Product (hereinafter referred to as "KH Improved Invention") and (2) the patents and patent applications which
cover the KH Improved Invention and which may be filed or
registered by KH (hereinafter referred to as "KH Improved Patent"). The KH Improvement shall not include any technology, knowhow, patent and patent
application not related to the KW-3902 or the Product. 

        1.21 The term "KH Information" shall collectively mean the KH Technology, the
KH Improvement and the KH Developed Data. 

        1.22 The term "KH Invention" shall mean any technology and knowhow which is
related to the KW-3902 and the Product or is necessary or useful for manufacture of the KW-3902 and the Product and which has been developed or acquired by KH as of the
Effective Date. 

        1.23 The term "KH Technology" shall collectively mean the KH Invention and
the KH Data. 

        1.24 The term "KH Territory" shall mean Japan and the other Asian countries
listed in the Exhibit 1 and the successors thereof. 

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        1.25 The term "KW-3902" shall mean
[. . .***. . .]. 

        1.26 The term "Major Market" shall mean the United States of America, the
United Kingdom, Germany, France, Italy and Spain. 

        1.27 The term "Material" shall mean the bulk substance of the
KW-3902. 

        1.28 The term "Metabolite" shall mean
[. . .***. . .]. 

        1.29 The term "Milestone Payment" shall mean the payment to be made when the
scheduled event takes place. For instance, each payment under Section 9.1 is the Milestone Payment. 

        1.30 The term "M Invention" shall mean the technology and knowhow, whether
patentable or not, which KH may develop from the Effective Date until the expiration or termination of this Agreement and which solely relates to the manufacture of the Metabolite or the M Product. 

        1.31 The term "M Patent" shall mean (1) US Patent No.
[. . .***. . .], European Patent No.
[. . .***. . .] and Canadian Patent No.
[. . .***. . .] and (2) the patents and patent applications which cover the M Invention and which may be filed or
registered by KH. 

        1.32 The term "M Product" shall mean that preparation in the finished product
form which contains the Metabolite as therapeutically active ingredient. 

        1.33 The term "NC Data" shall mean any clinical, non-clinical and
other data which may be developed in relation to the KW-3902 and the Product by NC or, if applicable, the Sublicensee from the Effective Date until the expiration or termination of this
Agreement. 

        1.34 The term "NC Improvement" shall mean (1) the modification or
refinement, whether patentable or not, which NC or the Sublicensee may make to the KH Invention from the Effective Date until the expiration or termination of this Agreement and which solely relates
to the manufacture of the KW-3902 or the Product (hereinafter referred to as "NC Improved Invention") and (2) the patents and patent
applications which cover the NC Improved Invention and which may be filed or registered by NC or the Sublicensee (hereinafter referred to as "NC Improved
Patent"). The NC Improvement shall not include any technology, knowhow, patent and patent application not related to the KW-3902 or the Product. 

        1.35 The term "NC Information" shall collectively mean the NC Improvement and
the NC Data. 

        1.36 The term "NC Territory" shall mean the entire world except for the KH
Territory. 

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        1.37 The term "NDA" shall mean the new drug application to be filed with the
FDA or any similar application to be filed with the appropriate Authority anywhere in the world. 

        1.38 The term "Net Sales" shall mean the Gross Sales of the Product made by
NC or the Sublicensee, less the following deductible items to the extent that they are paid or credited in relation to sales of such Product, provided that the items 1, 4, 5 and 6 below should be
deducted from such Gross Sales only when such Gross Sales include those items: 

        1.     the
cost of packaging, transportation and insurance; 

        2.     the
cost of rebates and allowances; 

        3.     the
sum of trade, quantity and cash discounts; 

        4.     the
cost of refunds as cash, credit or free goods supplied due to price reduction, including retroactive price reduction, or billing errors; 

        5.     the
cost of refunds as cash, credit or free goods supplied in compensation for the Product damaged, rejected, returned or recalled; and 

        6.     the
sum of taxes, tariffs, customs duties and other governmental charges including mandated credits, refunds and rebates paid with respect to such sales, however,
excluding income or franchise taxes of any kind. 

The
Net Sales shall be calculated according to the generally accepted accounting principles consistently applied in the United States of America. The Net Sales of the Combination Product shall be the
Gross Sales thereof (after the above deductible items) multiplied by the fraction which the parties determine by mutual written agreement, estimating each relative contribution in value that the
KW-3902 and the other therapeutically active ingredients contained in such Combination Product would make to the total value of such Combination Product, as well as, the cost of
development, the cost of goods and other relevant information with respect to such Combination Product, provided that such fraction should not go below
[. . .***. . .]. 

        1.39 The term "Original Patent" shall mean the patents listed in the
Exhibit 2. 

        1.40 The term "Original Patent Application" shall mean the patent
applications listed in the Exhibit 2. 

        1.41 The term "Patent" shall collectively mean the Original Patent, the
Original Patent Application, the Future Patent and the Derivative Patent. 

        1.42 The term "Pivotal Registration Trial" shall mean a clinical study
necessary for submission to the appropriate Authority for the purpose of obtaining registration or other approval of manufacturing, marketing or selling the Product. 

        1.43 The term "Product" shall mean that preparation in the finished product
form which contains the KW-3902 as therapeutically active ingredient. 

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        1.44 The term "Quarter" shall mean each three (3) consecutive calendar
month period which commences on the first (1st) date of January, April, July or October in any calendar year. 

        1.45 The term "Quasi Field" shall mean
[. . .***. . .]. 

        1.46 The term "SPC" shall mean the supplementary protection certificates in
Europe and any similar rights elsewhere in the world. 

        1.47 The term "Sublicensee" shall mean an entity to which NC grants a
sublicense under the Patent and the KH Technology according to Section 4. 

SECTION 2.    INTERPRETATION    

        In
this Agreement: 

        2.1   Headings and titles are inserted for convenience only and shall not affect the interpretation hereof; 

        2.2   References to a particular Section shall be to that Section in this Agreement; 

        2.3   Unless the context requires otherwise, neither singular nor plural of a word shall not affect the interpretation hereof; 

        2.4   The term "entity" shall include a natural person, partnership, company,
corporation, trust, association, organization or any other entity, whether with separate legal personality or not; and 

        2.5   The terms "include" and
"including" shall not be interpreted to limit the generality of the preceding word. 

SECTION 3.    LICENSE    

        3.1   KH hereby grants an exclusive license to NC under the Patent and the KH Technology as they relate to the
KW-3902 to research, develop, make, have made, use, import, market, offer for sale, sell and distribute the Product in the NC Territory within the Field. The license provided for in this
Section 3.1 shall be hereinafter referred to as "License". 

        3.2   When, on the basis of certain terms and conditions (referred to as "Primal
Condition" in this Section 3.2), KH negotiates with a third party for a license to practice the Patent and the KH Technology, as they relate to the KW-3902,
in the NC Territory within the Quasi Field, KH shall simultaneously propose the Primal Condition to NC. If, within
[. . .***. . .] of KH's such proposal, NC notifies KH in writing that KH's such proposal is acceptable to NC, the parties
shall faithfully negotiate [. . .***. . .]. During the
[. . .***. . .] period immediately following NC's such notification,
[. . .***. . .]. If, after such [. . .***. . .],
KH negotiates such license with a third party [. . .***. . .], KH shall immediately notify NC in writing of such terms and
conditions. 

***Confidential Treatment Requested

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        3.3   When KH intends to practice the Patent and the KH Technology, as they relate to the KW-3902, in the NC
Territory within the Quasi Field, KH shall notify NC in writing of such intent. During the [. . .***. . .] period
immediately following KH's such notification (referred to as "Deliberation Period" in this Section 3.3), NC shall notify KH in writing of NC's
interest or lack of interest in a license to practice the Patent and the KH Technology, as they relate to the KW-3902, in the NC Territory within the Quasi Field. If NC has notified KH in
writing of NC's interest in such license during the Deliberation Period, or if, not in response to KH's such notification, NC has for the first time notified KH in writing of NC's interest in a
license to practice the Patent and the KH Technology, as they relate to the KW-3902, in the NC Territory within the Quasi Field, the parties shall negotiate the terms and conditions of
such license in good faith and, during the [. . .***. . .] period immediately following NC's such notification, KH shall
neither [. . .***. . .] by itself practice the Patent and the KH Technology, as they relate to the KW-3902, in
the NC Territory within the Quasi Field. If NC does not notify KH in writing of NC's interest or lack of interest in such license during the Deliberation Period, NC shall be deemed not to be
interested in such license. 

        3.4   When KH intends to practice the Patent and the KH Technology, as they relate to the KW-3902, in the NC
Territory neither within the Field nor within the Quasi Field or to negotiate with a third party for a license to practice the Patent and the KH Technology, as they relate to the KW-3902,
in the NC Territory neither within the Field nor within the Quasi Field, KH shall notify NC in writing of such intent. During the
[. . .***. . .] period immediately following KH's such notification (referred to as "Consideration
Period" in this Section 3.4), NC shall notify KH in writing of NC's interest or lack of interest in such license. If NC has notified KH in writing of NC's interest in
such license in response to KH's such notification during the Consideration Period, or if, not in response to KH's such notification, NC has for the first time notified KH in writing of NC's interest
in a license to practice the Patent and the KH Technology, as they relate to the KW-3902, in the NC Territory in a specific indication neither within the Field nor within the Quasi Field,
the parties shall negotiate the terms and conditions of such license in good faith and, during the [. . .***. . .] period
immediately following NC's such notification, KH shall neither [. . .***. . .] by itself practice the Patent and the KH
Technology, as they relate to the KW-3902, in the NC Territory neither within the Field nor within the Quasi Field. If NC does not notify KH in writing of NC's interest or lack of interest
in such license during the Consideration Period, NC shall be deemed not to be interested in such license. 

        3.5   During the Non-Negotiation Period (defined below) KH shall not negotiate with a third party for a license to
practice the M Patent and the M Invention, as they relate to the Metabolite, in the NC Territory within the Field, if NC pays
[. . .***. . .] US dollars to KH within thirty (30) days of the Effective Date. The Non-Negotiation
Period shall be the [. . .***. . .] period immediately following the Effective Date and will be extended
[. . .***. . .] times by [. . .***. . .] if NC
pays [. . .***. . .] US dollars to KH by the end of the then current Non-Negotiation Period. If the
Non-Negotiation Period is so extended [. . .***. . .] times
[. . .***. . .], such Non-Negotiation Period will be further extended by
[. . .***. . .] if NC pays [. . .***. . .] US
dollars to KH by the end of such Non- 

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Negotiation
Period. At any time during the Non-Negotiation Period NC may notify KH in writing of NC's interest in a license to practice the M Patent and the M Invention, as they relate to
the Metabolite, in the NC Territory within the Field and if so, the parties shall negotiate the terms and conditions of such license in good faith during the
[. . .***. . .] period immediately following NC's such notification. 

        3.6   When, on the basis of certain terms and conditions (referred to as "Primary
Condition" in this Section 3.6), KH negotiates with a third party for a license to practice the M Patent and the M Invention, as they relate to the Metabolite, in the NC
Territory within the Field after the Non-Negotiation Period, KH shall simultaneously propose such Primary Condition to NC for NC's consideration. Whenever the Primary Condition for the
same opportunity has subsequently changed to the Primary Condition [. . .***. . .] the previous Primary Condition for the
same opportunity, KH shall simultaneously propose such subsequent Primary Condition to NC for NC's consideration. If, within
[. . .***. . .] of KH's such proposal, NC notifies KH in writing that KH's such proposal is acceptable to NC, the parties
shall faithfully negotiate such license for [. . .***. . .] after NC's such notification. If, within
[. . .***. . .] of KH's such proposal, NC does not notify KH in writing of whether KH's such proposal is acceptable to NC or
not, KH is not obligated to propose to NC the later Primary Condition for the same opportunity. 

        3.7   In the event that KH grants an exclusive license to NC to practice the M Patent and the M Invention, as they relate to
the Metabolite, in the NC Territory within the Field, [. . .***. . .]. If NC terminates this Agreement according to
Section 19.3, 26.2 or 26.3, [. . .***. . .]. This Section 3.7 shall survive the expiration hereof or the
termination hereof which is effected according to Section 19.3, 26.2 or 26.3. 

        3.8   When KH begins to negotiate with a third party for a license to practice the
[. . .***. . .] KH shall notify NC in writing thereof. 

SECTION 4.    SUBLICENSE    

        NC
shall be entitled to grant a sublicense under the License, provided: 

        4.1   that NC should obtain KH's prior written approval of such sublicense, which shall not be unreasonably withheld and shall
be deemed to have been given to NC by KH if KH does not notify NC in writing of KH's objection to such sublicense within
[. . .***. . .] after NC in writing requests KH's approval of such sublicense from KH, and that, at such intended
sublicensee's written request, KH shall faithfully negotiate with such intended sublicensee for the agreement whose terms and conditions are analogous to the terms and conditions hereof (except for
Sections 4, 5, 6 and 7), whose material financial terms are not different from the material financial terms hereof and which would become effective when this Agreement is terminated by KH according to
Section 19.3 or 26.3.3 through 26.3.7; 

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        4.2   that, for the purpose of the above proviso 4.1, NC should notify KH in writing of (a) the identity of such
intended sublicensee and (b) the key terms and conditions of such intended sublicense; 

        4.3   that, when the key terms and conditions of the sublicense have been substantially changed, NC should notify KH in writing
of such change; 

        4.4   that the sublicense should prohibit the Sublicensee from granting a further sublicense thereunder; 

        4.5   that the sublicense should be accompanied by the terms and conditions to obligate the Sublicensee to perform what KH
requests NC to have such Sublicensee perform hereunder; 

        4.6   that NC should be responsible for the Sublicensee's compliance with the terms and conditions referred to in the above
proviso 4.4; 

        4.7   that, under Section 18.1, NC should defend and indemnify KH with respect to the sublicense; and 

        4.8   that the sublicense should terminate at the time when the License terminates for any cause. 

SECTION 5.    TECHNOLOGY TRANSFER    

        5.1   Within three (3) months of the Effective Date, KH shall transfer the substance of the KH Technology to NC in
tangible form. Notwithstanding this three (3) month period, KH shall proceed with such transfer immediately after the Effective Date, shall make reasonable efforts to expedite such transfer and
shall accept NC's employees, officers or directors at KH's administered premises at NC's written request according to Section 7.1.3. 

        5.2   For the purpose of Section 5.1, NC shall notify KH in writing of where and how the KH Technology should be sent. 

        5.3   When the KH Technology is transferred to NC by KH for the transactions contemplated hereunder, such KH Technology shall
be transferred "as it is". Notwithstanding the foregoing, in the event that NC requests KH to translate some part of the so transferred KH Technology from the Japanese language to the English
language, whether after or before the Effective Date, and that KH accepts such request, the part of such KH Technology may be transferred to NC by KH in the English language after the reasonable time
for such translation. The costs and expenses of such translation shall be incurred by NC and shall be paid to KH by NC in Japanese yen within one (1) month of NC's receipt of KH's invoice
therefor. 

        5.4   The ownership of the KH Technology transferred to NC by KH for the transactions contemplated hereunder shall remain with
KH. For clarification, NC may utilize such KH Technology only for exercise of the rights granted to NC by KH hereunder. In this connection, NC may prepare and file submissions with the Authority to
obtain the approval of the NDA of the Product. 

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        5.5   The information disclosed to NC through
[. . .***. . .] or directly by KH under the April 16, 2002 Secrecy Agreement between KH and
[. . .***. . .] or
the December 16, 2002 Secrecy Agreement between KH and NC shall be deemed to be the KH Technology transferred to NC by KH as of the Effective Date hereunder. 

SECTION 6.    MATERIAL SUPPLY    

        6.1   Within three (3) months of the Effective Date, KH shall supply
[. . .***. . .] grams of the Material to NC. Notwithstanding this three (3) month period, KH shall proceed with such
supply immediately after the Effective Date and shall make reasonable efforts to expedite such supply. 

        6.2   For the purpose of Section 6.1, NC shall notify KH in writing of where and how the Material should be sent. 

        6.3   When the Material is supplied to NC by KH for the transactions contemplated hereunder, such Material shall be supplied
"as it is" and is neither compliant with the GMP requirements nor for human use. For clarification, KH is not obligated to reanalyze such Material or to provide NC with any documentation relating to
such Material, including the certificates for analysis. 

        6.4   For human bodies shall NC not use the Material supplied to NC by KH for the transactions contemplated hereunder. 

        6.5   The parties agree that, as regards the Material supplied to NC by KH for the transactions contemplated hereunder, it is
NC's sole responsibilities to respond to the inquiries from and to cope with the audit or inspection by the Authority. 

        6.6   The ownership of, and risk of loss to the Material supplied to NC by KH for the transactions contemplated hereunder shall
pass from KH to NC at the time of its delivery from KH to NC. 

SECTION 7.    TECHNICAL ASSISTANCE    

        7.1   During the [. . .***. . .] period immediately
following the Effective Date, KH shall at NC's written request render technical assistance to NC, as regards the KH Technology transferred to NC by KH for the transactions contemplated hereunder, in
the following ways: 

        1.     KH's
designated person shall answer by letter, facsimile or email the questions which NC's designated person ask of KH's such designated person by letter, facsimile or
email, provided that such technical assistance should not include translation from the Japanese language to the English language. Either party shall notify the other party in writing of whom such
party designates among its employees, officers and directors for such technical assistance. 

        2.     KH
shall send its employees, who are familiar with the KH Technology, to NC's designated premises in order to instruct NC's employees, officers or directors there during
NC's normal business hours as far as such employees are available to KH in the normal course of KH's business. NC shall incur (1) the costs and expenses of such technical assistance, 

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including
those of hotel accommodation and business class air transportation, and (2) the instruction fees of
[. . .***. . .] US dollars per working man-hour for such technical assistance. Travel time shall not be
considered the time for such technical assistance. NC shall pay such costs and expenses and such instruction fees to KH in Japanese yen within one (1) month of NC's receipt of KH's invoice
therefor. The amount of such costs and expenses shall be exchanged for Japanese yen at the average TTS rate of the Bank of Tokyo-Mitsubishi, Ltd. for the month preceding such invoice. The
schedule for such technical assistance shall be negotiated in good faith and separately agreed to by the parties, provided that the total working man-hours for such technical assistance
should not exceed [. . .***. . .] working man-hours. In determining such schedule, the parties shall gravely
consider the safety of KH's employees to be sent for technical assistance. Especially such schedule may be delayed for the reason of war or epidemic. 

        3.     KH
shall accept NC's employees, officers or directors at KH's administered premises in order to instruct them there during KH's normal business hours as far as such
acceptance is possible for KH in the normal course of KH's business. NC shall incur the travel and lodging expenses for such technical assistance, however, shall not incur the instruction fees for
technical assistance to the extent that the grand total of the total hours when each of NC's such people is so instructed do not go over
[. . .***. . .] hours. In the event that such grand total goes over
[. . .***. . .] hours, NC shall pay to KH for the difference between such grand total and
[. . .***. . .] hours at the rate of
[. . .***. . .] US dollars per hour within one (1) month of NC's receipt of KH's invoice therefor. 

        4.     The
monetary terms of Sections 7.1.2 and 7.1.3 shall apply to the case where NC sends its people to KH and accepts KH's employees for technical assistance of the NC
Information, mutatis mutandis. 

        7.2   For [. . .***. . .] after and during the term
hereof, NC shall not execute or shall not have a third party execute an employment, consulting or similar Agreement with KH's employees sent to NC according to Section 7.1.2. 

        7.3   Such technical assistance as provided for in Sections 7.1.1, 7.1.2 and 7.1.3 is intended just for understanding and
handling of the KH Technology "as it is" and is neither to supplement or to improve the KH Technology nor to develop, invent or discover technology. 

SECTION 8.    DILIGENCE    

        NC
shall make and shall have the Sublicensee make commercially reasonable efforts to develop, to manufacture, to market, to sell the Product within the NC Territory. By the end of the
month immediately following the month in which an anniversary of the Effective Date comes, NC shall provide KH with the written report outlining such efforts made by NC and the Sublicensee during the
previous one (1) year period between anniversaries of the Effective Date. 

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SECTION 9.    MILESTONE PAYMENT    

        9.1   In consideration of the license granted to NC by KH hereunder, NC shall pay to KH a non-refundable and
non-creditable fees of: 

        1.     two
million (2,000,000) US dollars within thirty (30) days of the Effective Date; 

        2.     one
and a half million (1,500,000) US dollars by whichever comes earlier, the fourth (4th) anniversary of the Effective Date or the thirtieth
(30th) day from NC or the Sublicensee [. . .***. . .]; 

        3.     [. . .***. . .]
US dollars within thirty (30) days of NC's or the Sublicensee's
[. . .***. . .]; 

        4.     [. . .***. . .]
US dollars within thirty (30) days of NC's or the Sublicensee
[. . .***. . .]; 

        5.     [. . .***. . .]
US dollars within thirty (30) days of NC's or the Sublicensee
[. . .***. . .]; 

        6.     [. . .***. . .]
US dollars within thirty (30) days of NC's or the Sublicensee's
[. . .***. . .]; and 

        7.     [. . .***. . .]
US dollars within thirty (30) days of NC or the Sublicensee
[. . .***. . .]. 

It
is confirmed that each Milestone Payment under this Section 9.1 shall not be made twice or more. The Milestone Payment for the Third Indication shall be faithfully negotiated for and
separately agreed to by the parties if and before NC or the Sublicensee submits the NDA of the Product for the Third Indication to the Authority of the Major Market. 

        9.2   Within ten (10) Business Days after
[. . .***. . .] as provided for in Sections 9.1.2 and 9.1.5, NC shall inform KH in writing of
(1) [. . .***. . .] and
(2) [. . .***. . .]. 

        9.3   Within ten (10) Business Days after
[. . .***. . .] as provided for in Sections 9.1.3, 9.1.4, 9.1.6 or 9.1.7, NC shall inform KH in writing of
(1) [. . .***. . .] and
(2) [. . .***. . .]. 

        9.4   Sections 9.2 and 9.3 shall survive the expiration or termination hereof for ten (10) Business Days after such
expiration or termination. 

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   SECTION 10.    ROYALTY PAYMENT    

        10.1    In consideration of the license granted to NC by KH hereunder, NC shall pay to KH the royalty of: 

        1.     X
percent of the total Net Sales during a calendar year in the case that such total Net Sales are not over
[. . .***. . .] US dollars during the calendar year, or 

        2.     X
percent of [. . .***. . .] US dollars 

        plus

        Y
percent of (the total Net Sales during a calendar year [. . .***. . .]) 

        in
the case that such total Net Sales are over [. . .***. . .] US dollars during the calendar year. 

        X
and Y shall represent [. . .***. . .] and
[. . .***. . .] respectively, however, if the
[. . .***. . .], and if the [. . .***. . .], the
X and Y applicable to the Net Sales of the IV Product by NC and the Sublicensee after such commercial sales shall represent
[. . .***. . .] and [. . .***. . .]
respectively. 

        The
payment under this Section 10.1 shall be hereinafter referred to as "Royalty". The parties agree that, if NC or the Sublicensee
supplies the Product for the clinical trial purpose at no charge, then no Royalty shall be payable on such supply transactions. 

        10.2    The Royalty for the Net Sales during each Quarter shall be paid to KH by NC in Japanese yen within
[. . .***. . .] days of the end of such Quarter. For calculation of the Royalty, currencies of the Net Sales during the
Quarter shall be exchanged for Japanese yen at the average TTS rate of the Bank of Tokyo-Mitsubishi, Ltd. for such Quarter. 

        10.3    NC shall send to KH a royalty statement (hereinafter referred to as
"Statement") within [. . .***. . .] days of the end of the Quarter during or
before which the Net Sales have for the first time occurred. The Statement shall specify at least the following categories of information for each country where the Net Sales occur and shall sum up
such figures for each such country. 

        1.     the
names of such countries 

        2.     the
Gross Sales in each such country during the Quarter 

        3.     the
types (dosage, package unit) and quantities of such Gross Sales 

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        4.     the
Net Sales for such Gross Sales 

        5.     the
exchange rates applicable to such Net Sales 

        10.4    NC shall keep and shall have the Sublicensee keep the books of account, which contain the information necessary for
calculation of the Royalty, for [. . .***. . .] years after the end of the calendar year when the Net Sales for such Royalty
occur. KH may have such books of account audited by its designated certified public accountant at its expense not more frequently than once per calendar year. For the purpose of such audit, NC shall
at KH's written request and at reasonable advance notice disclose and have such Sublicensee disclose such books of account to KH's designated certified public accountant on the premises of NC and such
Sublicensee during their normal business hours. NC shall cooperate and shall have such Sublicensee cooperate faithfully with the certified public accountant in order to facilitate such audit. The
total number of the Business Days
when the certified public accountant may stay on the premises of NC and such Sublicensee for such audit shall not exceed
[. . .***. . .] days during a calendar year unless the parties otherwise agree. Notwithstanding the foregoing, the cost of
such audit on one occasion shall be borne by NC if overdue payment indicated by such audit on the occasion exceeds three percent (3%) of the whole payment determined by such audit on the occasion and
paid to KH by NC within ten (10) Business Days after NC's receipt of KH's invoice therefor. If overdue payment indicated by such audit on the occasion does not exceed such percent, the cost of
such audit on the occasion shall be borne by KH. NC shall pay to KH such overdue amount with the interest thereon within ten (10) Business Days after NC's receipt of KH's invoice therefor. In
the event that NC has overpaid KH for any amount payable to KH by NC hereunder, NC may credit such overpayment against the future payment to be made to KH by NC hereunder
[. . .***. . .], provided that KH may have a certified public accountant audit such overpayment at reasonable advance notice
at NC's expense. This Section 10.4 shall survive the expiration or termination hereof for [. . .***. . .] years after
the end of the calendar year when such expiration or termination occurs. 

SECTION 11.    PAYMENT  

        11.1    The payment to KH by NC hereunder shall be made to the following bank account by wire transfer. 

Bank
Name: [. . .***. . .]

Branch Name: Head Office

Account Number: [. . .***. . .]

Swift Code: [. . .***. . .]

Bank Address: [. . .***. . .] 

KH
may change the above bank account to other bank account, notifying NC in writing of such other bank account. The fees for such wire transfer shall be incurred by NC. 

        11.2    Interest shall accrue on overdue amount of the payment to be made to KH by NC hereunder until the day when such overdue
amount is paid. The rate of such interest shall be a daily rate of [. . .***. . .] percent
([. . .***. . .]%) to the extent permitted by the applicable law. 

***Confidential Treatment Requested

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        11.3    As provided for in the "Convention between Japan and the United States of America for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with respect of Taxes on Income", NC shall withhold income tax from its payment to KH under Sections 9 and 10, shall pay such withheld income tax to the US
Government on behalf of KH and shall timely send to KH the tax certificate for such payment. 

SECTION 12.    PATENT PROSECUTION  

        12.1    KH hereby confirms that KH has filed the Original Patent Application and obtained the Patent as of the Effective Date as
listed in the Exhibit 2. 

        12.2    KH shall make reasonable efforts to prosecute the patent applications in the Patent and to maintain the patent rights
therein. A copy of the main communication between KH and patent offices in relation to the Patent shall be sent to NC or NC's designated law firms by KH at NC's direction as soon as practicably
possible. 

        12.3    NC shall incur the costs and expenses, including attorneys' fees and
translation fees, in connection with such prosecution and maintenance, which accrue as from the Effective Date. Notwithstanding the foregoing, NC shall incur the costs and expenses, including
attorneys' fees and translation fees, in connection with (1) filing a request of examination of Canadian Patent Application Number
[. . .***. . .], (2) filing a request of reinstatement of Canadian Patent Application Number
[. . .***. . .], (3) registering and maintaining the patents based on European Patent Application Number
[. . .***. . .] in the European countries listed in Part B of the Exhibit 2 and (4) in the event that
European Patent Application Number [. . .***. . .] is allowed, registering and maintaining the patents based on such patent
application in the European countries where NC in writing requests KH to register such patents, whether such costs and expenses accrue before or after the Effective Date or not. In the event that KH
practices the Patent by itself or grants a license to a third party to practice the Patent according to Section 3.2 or 3.3, the parties shall negotiate in good faith to fairly apportion between
the parties the costs and expenses, including attorneys' fees and translation fees, in connection with prosecuting the patent applications in the Patent and maintaining the patents therein, which
accrue after KH so practices or grants. 

        12.4    Once European Patent Application Number
[. . .***. . .] is allowed, KH shall immediately notify NC in writing of such allowance and shall register and maintain the
patents based on such patent application in the European countries where NC in writing requests KH to register such patents, provided that such request should be made in writing within ten
(10) Business Days after NC is notified in writing of such allowance by KH. 

        12.5    The costs and expenses which NC incurs according to Section 12.3 shall be paid to KH or KH's designated law firms
by NC at KH's direction within one (1) month of NC's receipt of KH's or such law firms' invoices therefor, respectively. 

        12.6    If KH is notified in writing by patent offices that any interference, revocation, opposition or similar proceedings are
instituted against the Patent by a third party, KH shall immediately after such notification inform NC in writing of the substance of such proceedings. KH shall retain the right to do what KH
considers appropriate for such proceedings at KH's 

***Confidential Treatment Requested

15

 

expense
and shall defend such Patent against or contest such proceedings with a view to keeping as wide a scope of such Patent as possible only in the event that, within ten (10) Business Days
after being so informed, NC in writing requests KH to undertake such defense or contest, confirming that the cost of such defense or contest (hereinafter referred to as
"Defense Cost") should be borne by NC. NC shall pay to KH the Defense Cost within one (1) month after NC's receipt of KH's invoice therefor. KH
shall from time to time inform NC in writing of the substantive development of such proceedings on a timely manner. In such proceedings, KH shall not enter into any agreement that would impose any
monetary or other responsibilities or liabilities on NC or limit or reduce NC's rights hereunder without NC's prior written consent thereto. 

        12.7    Within ten (10) Business Days after NC or the Sublicensee is officially notified by the Authority that sales of
the Product in the NC Territory is granted by such Authority, NC shall notify or have such Sublicensee notify KH in writing of the date and substance of such grant and shall send or have such
Sublicensee send to KH a copy of (1) the certificates for such grant and (2) any related documentation. In the event that, after being notified in writing of such grant, KH informs NC or
the Sublicensee in writing that KH intends to follow the proceedings for (1) extension of the term of the Patent or (2) the SPC for the Patent, NC shall cooperate or have such
Sublicensee cooperate with KH in such proceedings by means of document offering or otherwise. 

        12.8    KH shall notify NC in writing of such substantial status changes of the Patent as grant (allowance), registration
(issuance), the Expiration, the SPC grant and term extension on a timely manner and shall send to NC the related documentation as soon as practicable. 

SECTION 13.    PATENT INFRINGEMENT  

        13.1    Either party shall notify the other party in writing of any infringement or possible infringement on the Patent by a
third party in the NC Territory immediately after the notifying party becomes aware of such infringement and shall simultaneously provide the notified party with the related information. KH is
obligated neither to prevent such infringement nor to incur the cost of such prevention, however, shall retain the right to do what KH considers appropriate for such prevention at KH's expense,
provided that, in such prevention, KH should not do what would impose any monetary or other responsibilities or liabilities on NC or would limit or reduce NC's right hereunder without NC's prior
written consent thereto. NC may also prevent such infringement at NC's expense, provided that NC should notify KH in writing of NC's such intent in advance and that, from time to time, NC should
notify KH in writing of the substantive development of NC's such prevention. KH shall render reasonable assistance for NC's such prevention at NC's written request and expense. Such assistance shall
include being named as a party or providing NC a power-of-attorney, as permitted by applicable law, in the action which NC would bring for NC's such prevention. Any damage or
other compensation which NC might obtain from the infringing party as a result of NC's such prevention shall be first allocated to reimbursement for KH's cost for NC's such prevention, if any, and the
remainder shall inure to the benefit of NC. 

        13.2    Either party shall notify the other party in writing of any allegation that the Product may infringe a third party's
patents or patent applications in the NC Territory 

16

 

immediately
after the notifying party becomes aware of such allegation and shall simultaneously provide the notified party with the related information. KH is obligated neither to defend NC or such
Product against nor to contest such allegation nor to incur the cost of such defense or contest, however, NC shall at NC's expense defend itself or such Product against or contest such allegation. NC
may settle such a case, provided that such settlement should not impose any monetary or other responsibilities or liabilities upon KH. In the event that NC pays to the alleging party the royalty of
some percent of the Net Sales (hereinafter referred to as "Settlement Rate") for such settlement, each royalty rate provided for in Section 10.1
shall be decreased by [. . .***. . .], provided that NC should obtain KH's prior written approval of the monetary conditions
of such settlement, which shall
not be unreasonably withheld, and that the Product should not technically or economically expected to be manufactured outside the scope of the alleging party's such patents and patent applications.
Such [. . .***. . .]. 

        13.3    Section 13.2 shall not apply to the following patents and patent applications
[. . .***. . .]; 

        1.     [. . .***. . .] 

        2.     [. . .***. . .].

SECTION 14.    IMPROVEMENT  

        14.1    Nothing herein shall be construed to transfer or to assign KH's ownership of or title to the Patent and the KH
Information. 

        14.2    The ownership of or title to the NC Information shall vest in NC or the Sublicensee, however, such vesting shall not
affect KH's ownership of or title to the Patent and the KH Information. 

        14.3    As soon as practicable after NC has made the NC Improved Invention and the NC Data, NC shall transfer such NC Improved
Invention and such NC Data to KH in tangible form. Such transfer may be delayed due to the prosecution procedures of the NC Improved Patent. In negotiation with an intended Sublicensee for a
sublicense under the License, NC shall make reasonable efforts to obligate such intended Sublicensee to transfer its NC Improved Invention or its NC Data to KH in tangible form. Such transfer may be
delayed due to the prosecution procedures of the NC Improved Patent. 

        14.4    For the purpose of Section 14.3, KH shall notify NC in writing of where and how the NC Improved Invention and the
NC Data should be sent. 

        14.5    As soon as practicable after NC has filed the NC Improved Patent, NC shall notify KH in writing of such patent
application. From time to time, NC shall provide KH with the written summary of such patent prosecution. In negotiation with an intended Sublicensee for 

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a
sublicense under the License, NC shall make reasonable efforts to obligate such intended Sublicensee to notify NC in writing of its filing the NC Improved Patent. If the Sublicensee files the NC
Improved Patent and if such Sublicensee notifies NC of such filing or NC otherwise becomes aware of such filing, NC shall notify KH in writing of such patent application as soon as practicable and
shall provide KH with the written summary of such patent prosecution from time to time. 

        14.6    Section 14.5 does not allow NC or the Sublicensee to disclose KH's Confidential Information to any entities,
including patent offices and law firms. NC and the Sublicensee may so disclose only after obtaining KH's written approval thereof. 

        14.7    NC shall grant and make reasonable efforts to have the Sublicensee grant to KH a non-exclusive and
paid-up license (with the right to grant a sublicense) (1) to practice the NC Information in the KH Territory and (2) to practice the NC Information in the NC Territory
outside the Field as far as such practice does not compete with NC's or such Sublicensee's business related to the Product. KH may, with the prior written consent of NC, disclose the NC Information to
an entity for such sublicense under appropriate confidentiality and shall be responsible for such limited-usage and confidentiality, with which the entity is obligated to comply as such sublicensee. 

        14.8    As soon as practicable after KH has made the KH Improved Invention and the KH Developed Data, KH shall transfer such KH
Improved Invention and such KH Developed Data to NC in tangible form. Such transfer may be delayed due to the prosecution procedures of the KH Improved Patent. 

        14.9    For the purpose of Section 14.8, NC shall notify KH in writing of where and how the KH Improved Invention and the
KH Developed Data should be sent. 

        14.10    As soon as practicable after KH has filed the KH Improved Patent, KH shall notify NC in writing of such patent
application. From time to time, KH shall provide NC with the written summary of such patent prosecution. 

        14.11    Section 14.10 does not allow KH to disclose NC's Confidential Information to any entities, including patent
offices and law firms. KH may so disclose only after obtaining NC's written approval thereof. 

        14.12    KH shall grant to NC a non-exclusive and paid-up license (with the right to grant a sublicense
to the Sublicensee) to practice the KH Improvement and the KH Developed Data, as they relate to the KW-3902, in the NC Territory in the Field, provided that such Sublicensee should grant a
license (with the right to grant a sublicense) to KH under its NC Information as provided for in Section 14.7, that such Sublicensee should permit NC to transfer its NC Improved Invention and
its NC Data as provided for in Section 14.3 and that such Sublicensee should permit NC to provide KH with the information with respect to its NC Improved Patent as provided for in
Section 14.3. NC may, with the prior written consent of KH, disclose the KH Improvement and the KH Developed Data to such Sublicensee for such sublicense under appropriate confidentiality and
shall be responsible for such limited-usage and confidentiality, with which such Sublicensee is obligated to comply as such sublicensee. 

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SECTION 15.    CONFIDENTIALITY  

        15.1    For [. . .***. . .] years after and during
the term hereof, either party shall neither disclose to any third party any information which is disclosed to it by the other party for the transactions contemplated hereunder nor utilize such
information for any other purpose than the purposes hereof, if such information is marked as confidential when so disclosed visually or if such information is designated as confidential when so
disclosed orally and is confirmed as confidential visually within fifteen (15) Business Days of such oral disclosure, unless 

        1.     such
information is part of the public domain before its disclosure to the disclosed party by the disclosing party; or 

        2.     such
information becomes part of the public domain after its disclosure to the disclosed party by the disclosing party not due to any breach hereof by the disclosed
party; or 

        3.     such
information is known to the disclosed party without confidentiality at the time of its disclosure to the disclosed party by the disclosing party, as evidenced by
credible documentation; or 

        4.     such
information is provided to the disclosed party legally and without confidentiality by a third party; or 

        5.     the
disclosed party can demonstrate by credible documentation that the disclosed party has independently developed or discovered such information. 

The
information to be kept confidential according to this Section 15.1 is hereinafter referred to as "Confidential Information". A party's
Confidential Information shall mean the Confidential Information disclosed to the other party by the party. The KH Technology, the KH Improved Invention and the KH Developed Data shall be deemed to be
part of KH's Confidential Information unless they fall within the scope of the above five (5) categories. The NC Improved Invention and the NC Data shall be deemed to be part of NC's
Confidential Information unless they fall within the same. For [. . .***. . .] years after and during the term hereof,
either party shall preserve the other party's Confidential Information as it is and maintain the written record of receipt thereof. Either party shall ensure that only those of their directors,
officers and employees who have a need to know the other party's Confidential Information should be given access thereto and that such directors, officers and employees should keep and utilize such
Confidential Information so that the party of such directors, officers and employees may not breach this Section 15.1. 

        15.2    Notwithstanding Section 15.1, either party may disclose the other party's Confidential Information (1) to
the extent necessary to obtain the Authority's approval of import, export, manufacture, use, marketing or sales of the Product, (2) to the extent required by law and regulation or (3) to
the extent requested by orders and judgments of such competent governmental authorities as administrations and courts, provided that such party should make reasonable efforts, if appropriate, to
obtain or to permit the other party obtain confidential treatment of such Confidential Information. 

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        15.3    Notwithstanding Section 15.1, either party may disclose the other party's Confidential Information to
professional entities such as attorneys-at-law and certified public accountants only for the purposes hereof under mandatory or contractual confidentiality. 

        15.4    Notwithstanding Section 15.1, NC may disclose KH's Confidential Information to the Sublicensee for the purpose of
Section 4, provided that NC should, through a written agreement, have such Sublicensee not disclose such Confidential Information to other entity if not permitted by such written agreement, and
utilize the same only for the purpose of Section 4, and that the confidentiality of such written agreement should not be less stringent than and should be consistent with the confidentiality
imposed on NC hereunder. 

        15.5    Once KH's Confidential Information is disclosed to the Sublicensee by NC according to Section 15.4, NC shall be
responsible for such Sublicensee's compliance with such confidentiality and limited-usage as provided for in Section 15.4. If such Sublicensee has breached such confidentiality or
limited-usage, NC shall indemnify KH from the damages which might be caused in relation to such breach. 

        15.6    When an entity has ceased to be the Sublicensee after KH's Confidential Information has been disclosed to the entity as
provided for in Section 15.4, NC shall have such Sublicensee immediately return to NC or destroy such Confidential Information. 

        15.7    Sections 15.4, 15.5 and 15.6 shall apply mutatis mutandis to the case
where each party's Confidential Information is disclosed to an entity by the other party for exercise of the sublicense right provided for in Sections 14.7 and 14.12. 

        15.8    Neither party shall disclose the contents hereof to any third party without first obtaining the other party's written
consent thereto. Notwithstanding the foregoing, either party may disclose the main terms and conditions hereof to its potential investors, acquirers or lenders to the extent necessary for such party's
contemplated transactions with them, provided that such disclosure should be made under appropriate confidentiality no less strict than the confidentiality imposed on such party hereunder. 

        15.9    Neither party shall make any publicity, news release or other public announcement, visual or oral, relating hereto
without the other party's prior written approval thereof, which shall not be unreasonably withheld or delayed, except as required by law or regulation. 

        15.10    In the event that either party intends to make the scholarly publication detailing the results of clinical trials and
other studies conducted hereunder and that such party submits the draft for such publication to the other party for review, the other party, shall be deemed to approve of such publication if the other
parry does not provide such party with the other party's written comments thereon within ninety (90) days of such submission. 

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SECTION 16.    REPRESENTATION AND WARRANTY  

        16.1    Each party represents and warrants: 

        1.     that
such party has the power and right to enter into this Agreement as of the Effective Date and to perform its obligations hereunder; and 

        2.     that
such party is not a party to any agreement with a third party, whether written or not, which would prevent such party from fulfilling any of its obligations
hereunder. 

        16.2    KH represents and warrants: 

        1.     that
KH is the owner of the Original Patent, the Original Patent Application and the KH Technology; 

        2.     that
KH is entitled to grant to NC the rights granted to NC by KH hereunder; 

        3.     that
KH does not grant any right to any third party in inconsistent ways with the rights granted to NC by KH hereunder; and 

        4.     that
those documents in the KH Technology which are listed in the Exhibit 3 are made according to the GLP. 

        16.3    KH neither represents nor warrants and disclaims: 

        1.     the
scope, validity and enforceability of the Patent, the KH Improved Patent and the M Patent; 

        2.     future
grant (allowance) and registration (issuance) of the Patent, the KH Improved Patent and the M Patent; 

        3.     future
filing, prosecution and maintenance of the KH Improved Patent and the M Patent; 

        4.     future
development of the KH Improved Invention, the KH Developed Data and the M Invention; 

        5.     non-infringement
by any product, material or information on the intellectual property or other rights vested in or enforceable by a third party; 

        6.     successful
development of the Product; 

        7.     approval
of the Product by the Authority; and 

        8.     merchantability
and fitness for a particular purpose. 

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        16.4    NC neither represents nor warrants and disclaims: 

        1.     the
scope, validity and enforceability of the NC Improved Patent; 

        2.     future
grant (allowance) and registration (issuance) of the NC Improved Patent; 

        3.     future
filing, prosecution and maintenance of the NC Improved Patent; 

        4.     future
development of the NC Improved Invention and the NC Data; 

        5.     non-infringement
by any product, material or information on the intellectual property or other rights vested in or enforceable by a third party; 

        6.     successful
development of the Product; 

        7.     approval
of the Product by the Authority; and 

        8.     merchantability
and fitness for a particular purpose. 

        16.5    Except as expressly provided for herein, neither party makes any representation or warranty, whether implied, statutory
or otherwise, with respect of the subject matter hereof. 

SECTION 17.    LIMITED LIABILITY  

        With the exception of the liability for breach of confidentiality, neither party shall be liable to the other party or any third party for (1) any
consequential, indirect, incidental, special or exemplary damages and (2) any losses of goodwill, business, contracts, revenues, profits or savings, which would be caused in relation hereto,
through contract, tort (including negligence, but not gross negligence), misrepresentation (but not fraudulent misrepresentation), breach of statutory duties or otherwise, even if such party is
advised of the possibility of such damages or losses. 

SECTION 18.    INDEMNIFICATION  

        18.1    NC shall defend, indemnify and hold harmless KH, KH's Affiliate, their respective directors, officers and employees from
and against any and all claims, actions, judgments, expenses (including legal expenses and reasonable attorneys' fees), losses and damages incurred by them, arising from any third party claim in
relation to (1) NC exercising the license under Sections 3.1 and 14.12, (2) the
Sublicensee exercising the sublicense under Sections 4 and 14.12 and (3) the Material and the related documentation, if any, which are supplied to NC by KH unless such claims, actions,
judgments, expenses, losses and damages result from gross negligence, wrongful intentional actions or omissions or fraud on the part of KH, KH's Affiliate, their respective directors, officers or
employees. Such claims, actions, judgments, expenses, losses and damages include those related to the products or materials manufactured by or on behalf of NC or the Sublicensee, especially those
related to the claim that such products or materials have caused death or bodily injury or have infringed intellectual property rights. 

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        18.2    KH shall defend, indemnify and hold harmless NC, NC's Affiliate, the Sublicensee, their respective directors, officers
and employees from and against any and all claims, actions, judgments, expenses (including legal expenses and reasonable attorneys' fees), losses and damages incurred by them, arising from any third
party claim in relation to (1) KH exercising the license under Section 14.7 and (2) an entity exercising the sublicense under the same unless such claims, actions, judgments,
expenses, losses and damages result from gross negligence, wrongful intentional actions or omissions or fraud on the part of NC, NC's Affiliate, the Sublicensee, their respective directors, officers
or employees. Such claims, actions, judgments, expenses, losses and damages include those related to the products or materials manufactured by or on behalf of KH or KH's sublicensee under
Section 14.7, especially those related to the claim that such products or materials have caused death or bodily injury or have infringed intellectual property rights. 

        18.3    In the event that an entity is notified of a third party claim and seeks the indemnification for such claim under
Section 18.1 or 18.2, the entity shall (1) inform the indemnifying party in writing of such claim as soon as practicable after such notification, (2) permit the indemnifying party
to assume the direction and control of the defense against such claim, (3) cooperate with the indemnifying party in such defense at the indemnifying party's written request and expense and
(4) undertake all reasonable steps to mitigate any expenses, losses and damages arising in relation to such claim. Further, the indemnifying party may settle such claim at its sole discretion,
provided that such settlement should not impose any obligation on or otherwise adversely affect the entity or the indemnified party. 

SECTION 19.    FORCE MAJEURE  

        19.1    Although either party is unable to perform its obligations hereunder due to the Force Majeure, this Agreement shall
still remain in effect, however, such obligations of such party as well as the related obligations of the other party shall be suspended during the period during which such Force Majeure continues,
provided that: 

        1.     such
suspension should be of no wider scope than directly affected by such Force Majeure; 

        2.     the
invoking party should notify the other party in writing of such Force Majeure immediately after the occurrence thereof and, if such notification is prevented by such
Force Majeure, immediately after such notification becomes possible; 

        3.     such
notification should include (1) the outline of such Force Majeure, (2) the duration during which the invoking party expects such Force Majeure would
continue and (3) which obligations hereunder are suspended due to such Force Majeure; 

        4.     the
invoking party should from time to time notify the other party in writing of any development of such Force Majeure; and 

        5.     the
invoking party should make reasonable efforts to remedy its inability to perform such suspended obligations and to mitigate any effects caused by such Force Majeure. 

23

 

        19.2    Once the Force Majeure is invoked as provided for in Section 19.1, the parties shall faithfully discuss how best
to perform as far as possible according hereto. 

        19.3    In the event that the invoking party's material obligations hereunder are suspended for six (6) months as
provided for in Section 19.1, the other party may terminate this Agreement by means of written notice to the invoking party. 

SECTION 20.    WAIVER  

        Neither party shall be deemed to have waived any of its rights or remedies conferred to such party hereunder unless such waiver is made in writing and signed by a
duly authorized representative of such party. In particular, no delay or failure of either party in exercising or enforcing any of its rights or remedies conferred to such party hereunder shall
operate as waiver of such rights or remedies or so as to preclude or to impair the exercise or enforcement of such rights or remedies. Further, partial
exercise or enforcement of such rights or remedies shall not preclude or impair any other exercise or enforcement of such rights or remedies. 

SECTION 21.    ENTIRE AGREEMENT  

        This Agreement constitutes the entire agreement and understanding between the parties relating to the subject matter hereof and supersedes any and all prior oral
or written agreement, understanding, representation or warranty between them relating to the same. The parties understand and confirm that, as regards the subject matter hereof, no director, officer,
employee or agent of either party is authorized to make any representation or warranty to the other party and that neither party relies on such representation or warranty, if made whether orally or in
writing. 

SECTION 22.    AMENDMENT  

        No amendment, modification or supplement of or to this Agreement shall be valid unless made in writing and signed by duly authorized representatives of both
parties. 

SECTION 23.    INDEPENDENT CONTRACTOR  

        The relation between the parties is that of independent contractors. Nothing herein is construed to create any other relation, such as partnership or agency,
between the parties. Neither party shall have any right or authority to create, assume or incur any obligations, liabilities or expenses on behalf of the other party. 

SECTION 24.    ASSIGNMENT  

        Neither party shall wholly or partially assign or pledge its rights and obligations hereunder to any third party without the other party's prior written consent
thereto. Notwithstanding the foregoing, either party may assign its rights and obligations hereunder to a successor of such party's whole or substantially whole business, provided that such party
should timely notify the other party in writing of the fact and outline of such assignment. 

24

   SECTION 25.    SEVERABILITY  

        25.1    In the event that the whole or any part hereof has been declared illegal, invalid or unenforceable in any jurisdiction
either by any laws or regulations or by any orders or judgments of such competent governmental authorities as administrations or courts: 

        1.     in
the case of the illegality, invalidity or unenforceability of the whole hereof, this Agreement shall terminate only in relation to such jurisdiction; or 

        2.     in
the case of the illegality, invalidity or unenforceability of any part hereof, such part shall be severed herefrom in relation to such jurisdiction and such
illegality, invalidity or unenforceability shall not prejudice or affect the remainder hereof, which shall continue in full force and effect. 

        25.2    If either party considers that any severance under Section 25.1 would materially affect the purposes hereof, the
parties shall faithfully discuss possible ways to eliminate or to mitigate such material affectation. 

SECTION 26.    TERM AND TERMINATION  

        26.1    This Agreement shall come into effect as of the Effective Date and shall, unless earlier terminated according hereto,
continue to be effective until and expire on the last Expiration of the Patent or the fifteenth (15th) anniversary of the day when the Net Sales have for the first time occurred in the
Major Market, whichever comes later. 

        26.2    NC may at any time terminate this Agreement at ninety (90) day written notice to KH. 

        26.3    Either party may terminate this Agreement forthwith at written notice to the other party when any of the following
events has occurred: 

        1.     the
other party has committed the material breach hereof which is not capable of remedy (the breach of confidentiality hereunder shall be deemed to be such material
breach not capable of remedy); 

        2.     the
other party has committed the material breach hereof which is capable of remedy and which has not been remedied within thirty (30) days of receipt of the
written notice identifying such breach and requiring the remedy thereof (the overdue payment hereunder shall be deemed to be the material breach hereof); 

        3.     the
other party has become bankrupt or insolvent or has suspended payment of its debts for a period of longer than forty five (45) days; 

        4.     a
note or check drawn or endorsed by the other party has been dishonored twice or more in any six (6) month period; 

        5.     a
petition for bankruptcy, reorganization, composition, readjustment, receivership or similar procedures under any applicable bankruptcy, insolvency, reorganization, 

25

 

moratorium
or similar law affecting creditors' rights and interests (hereinafter referred to as "Petition") has been filed for the other party by
itself; 

        6.     the
Petition has been filed against the other party by other entity and the court procedures for such Petition have been pending for more than forty five
(45) days; and 

        7.     the
other party has been wound up, dissolved or liquidated not for merger and acquisition or the procedures therefor have been started. 

        26.4    After this Agreement expires (as not earlier terminated according hereto) as provided for in Section 26.1: 

        1.     the
provisions of Sections 3.1 (License), 4.4 through 4.7 (Sublicense), 7.1.4 (Technical Assistance Fee), 14.3 through 14.12 (Improvement) and this Section 26.4
shall survive such expiration; and 

        2.     NC
shall, within forty five (45) days of such expiration, pay to KH any amount which accrues prior to such expiration and is payable to KH by NC hereunder and
shall within the same period send to KH the statement for such amount (this amount shall be exchanged for Japanese yen at the average TTS rate of the Bank of Tokyo-Mitsubishi, Ltd. for the
month preceding such expiration). 

        26.5    When this Agreement is terminated by NC according to Section 26.2 or by KH according to Section 19.3 or
26.3: 

        1.     any
and all rights and licenses granted to NC by KH hereunder shall terminate; 

        2.     Notwithstanding
Section 26.5.1, in the event that this Agreement is terminated by KH according to Section 19.3 or 26.3.3 through 26.3.7, KH shall, at the
Sublicensee's written request, negotiate with such Sublicensee for a license under the Patent, the KH Technology and, if applicable, the KH Improvement and the KH Developed Data and shall, subject to
KH's management approval, enter into such license agreement with such Sublicensee, provided that the terms and conditions of such license agreement (referred to as "Replacing
Terms" in this Section 26.5.2) should be analogous to the terms and conditions hereof (except for Sections 4, 5, 6 and 7), that the Replacing Terms in each aspect should
not be unbeneficial to KH in comparison with the terms and conditions hereof, that such license agreement should become retroactively effective on the date of such termination, and that the Replacing
Terms should not contradict the terms and conditions of any agreements previously entered into by KH; 

        3.     NC
shall, within forty five (45) days of such termination, pay to KH any amount which accrues prior to such termination and is payable to KH by NC hereunder and
shall within the same period send to KH the statement for such amount (this amount shall be exchanged for Japanese yen at the average TTS rate of the Bank of Tokyo-Mitsubishi, Ltd. for the
month preceding such termination); 

        4.     NC
shall immediately return to KH or destroy KH's Confidential Information at KH's direction; and 

26

 

        5.     the
provisions of Sections 7.1.4 (Technical Assistance Fee), 14.3 through 14.7 (Improvement) and this Section 26.5 shall survive such termination. 

        26.6    When this Agreement is terminated by NC according to Section 19.3 or 26.3: 

        1.     the
provisions of Sections 3.1 (License), 4.4 through 4.7 (Sublicense), 12 (Patent Prosecution), 13 (Patent Infringement), 14.8 through 14.12 (Improvement) and this
Section 26.6 shall survive such termination; 

        2.     KH
shall immediately return to NC or destroy NC's Confidential Information at NC's direction; and 

        3.     NC
shall, within forty five (45) days of such termination, pay to KH any amount which accrues prior to such termination and is payable to KH by NC hereunder and
shall within the same period send to KH the statement for such amount (this amount shall be exchanged for Japanese yen at the average TTS rate of the Bank of Tokyo-Mitsubishi, Ltd. for the
month preceding such termination). 

        26.7    The provisions of Sections 6.4 and 6.5 (Material), 7.2 (No Solicitation), 11 (Payment), 12.5 (Prosecution Cost), 14.1
and 14.2 (Ownership), 15.1 through 15.9 (Confidentiality), 16.3, 16.4 and 16.5 (Representation and Warranty), 17 (Limited Liability), 18 (Indemnification), 24 (Assignment), 27 (Arbitration) and 28
(Governing Law) and this Section 26.7 shall survive the expiration or termination hereof. Notwithstanding such expiration or termination, NC shall pay to KH the Milestone Payment, which accrues
prior to such expiration or termination under Section 9.1, within the period provided for in Section 9.1. 

SECTION 27.    ARBITRATION  

        If there is any dispute, controversy, difference or question between the parties with respect to any matter, including whether some breach hereof is material or
has been cured in time, arising out of or relating to this Agreement, the parties shall first make efforts to solve such issue amicably. If such issue is not solved through such amicable efforts, the
parties shall waive any rights which they may have to injunctive relief for such issue and shall settle such issue according to the Rules of Conciliation and Arbitration of the International Chamber
of Commerce. Such arbitration shall be conducted in the
English language in Paris, France and shall be determined by three (3) arbitrators appointed according to the said rules. 

SECTION 28.    GOVERNING LAW  

        28.1    This Agreement shall be governed by and construed according to the laws of Japan. 

        28.2    The parties agree that the arbitration decisions according to Section 27 shall be enforceable by the courts of
competent jurisdiction in Japan and the United States of America and shall submit to the jurisdictions of such courts solely for such enforcement. 

27

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

	KYOWA HAKKO KOGYO CO., LTD.	 	NOVACARDIA, INC.
	
By:	
 	

/s/ Toru Doiuchi
	
 	

By:	
 	

/s/ Kenneth J. Widder

	

Name:	
 	

Toru Doiuchi	
 	

Name:	
 	

Kenneth J. Widder
	

Title:	
 	

Senior Managing Director	
 	

Title:	
 	

Chief Executive Officer
	

Date:	
 	

May 9, 2003
	
 	

Date:	
 	

August 14, 2003

[SIGNATURE PAGE TO LICENSE AGREEMENT] 

EXHIBIT 1 (THE OTHER ASIAN COUNTRIES)  

Afghanistan

Kingdom of Bahrain

People's Republic of Bangladesh

Kingdom of Bhutan

Brunei Darussalam

Kingdom of Cambodia

People's Republic of China

Republic of China (Taiwan)

Republic of Cyprus

India

Republic of Indonesia

Islamic Republic of Iran

Republic of Iraq

State of Israel

Hashemite Kingdom of Jordan

Republic of Kazakhstan

Republic of Korea

Democratic People's Republic of Korea (North Korea)

State of Kuwait

Kyrgyz

Lao People's Democratic Republic

Republic of Lebanon

Malaysia

Republic of Maldives

Mongolia

Union of Myanmar

Kingdom of Nepal

Sultanate of Oman

Islamic Republic of Pakistan

Republic of the Philippines

State of Qatar

Kingdom of Saudi Arabia

Republic of Singapore

Democratic Socialist Republic of Sri Lanka

Syrian Arab Republic

Republic of Tajikistan

Kingdom of Thailand

Democratic Republic of Timor Leste

Republic of Turkey

Turkmenistan

United Arab Emirates

Republic of Uzbekistan

Socialist Republic of Viet Nam

Republic of Yemen 

EXHIBIT 2 (THE PATENT)  

	Part A [. . .***. . .]	 	 
	

[. . .***. . .]	
 	

Application Number: [. . .***. . .]	
 	

Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	 	 	Designated Country: [. . .***. . .]	 	 
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	

Part B: [. . .***. . .]	
 	

 
	

[. . .***. . .]	
 	

Application Number: [. . .***. . .]	
 	

Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	 	 	Designated Country: [. . .***. . .]	 	 
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	

Part C: [. . .***. . .]	
 	

 
	

[. . .***. . .]	
 	

Application Number: [. . .***. . .]	
 	

Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]
	[. . .***. . .]	 	Application Number: [. . .***. . .]	 	Application Date: [. . .***. . .]
	 	 	Registration Number: [. . .***. . .]	 	Registration Date: [. . .***. . .]
	 	 	Expiration Date: [. . .***. . .]	 	Status: [. . .***. . .]

***Confidential Treatment Requested  

 EXHIBIT 3 (THE GLP DOCUMENTS)  

	Report type
 
	 	Report No.
	 	Title
	 	Author

	GLP	 	A-92-036	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-039	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-053	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	A-92-059	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-063	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-064	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-072	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-085	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	A-92-096	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-097	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-102	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-104	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-92-122	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-94-088	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	A-95-042	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-95-119	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-95-181	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-96-009	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	A-96-085	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-96-106	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	A-96-130	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-97-032	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	A-97-054	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	97.0700	 	[. . .***. . .]	 	[. . .***. . .]
	

	GLP	 	97.0759	 	[. . .***. . .]	 	[. . .***. . .]
	GLP	 	SBL25-35	 	[. . .***. . .]	 	[. . .***. . .]
	

***Confidential Treatment Requested  

QuickLinks

Exhibit 10.12QuickLinks
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Exhibit 10.15    
    

***Text Omitted and Filed Separately

Pursuant to a Confidential Treatment Request

Under C.F.R. §§ 200.80(b)(4) and Rule 406

Under the Securities Act of 1933, as amended.  

LICENSE AGREEMENT 

        The
1st day of September, 2006 

between

Aetas
Pharma Co., Ltd., 

Aetas
Co., Ltd. was founded on May 23, 2000. The corporate name of Aetas Co., Ltd. has been changed to Aetas Pharma Co., Ltd. on October 1, 2004. Solely" Aetas
Pharma Co., Ltd. is the Licensor hereto. 

Japanese
corporation 

	Main office:	 	1-13-4, Nihonbashi Muromachi, Chuo-ku,

Tokyo 103-0022, Japan

—hereinafter
referred to as "Licensor"— 

and

NovaCardia, Inc.,

Corporation
of the State of Delaware, U.S.A. 

	Main office:	 	1265 High Bluff Drive, Suite 200,

San Diego, California 92130, U.S.A

—hereinafter
referred to as "Licensee"— 

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	

PREAMBLE	
 	

1
	

ARTICLE 1	
 	

DEFINITIONS	
 	

1
	

ARTICLE 2	
 	

GRANTS	
 	

8
	

ARTICLE 3	
 	

TECHNICAL ASSISTANCE OF LICENSOR; RESEARCH	
 	

9
	

ARTICLE 4	
 	

FEES AND ROYALTIES	
 	

10
	

ARTICLE 5	
 	

METHOD OF PAYMENT OF FEES AND ROYALTIES	
 	

14
	

ARTICLE 6	
 	

ACCESS TO RECORDS; ANNUAL REPORTS	
 	

15
	

ARTICLE 7	
 	

CONFIDENTIAL INFORMATION	
 	

15
	

ARTICLE 8	
 	

REPRESENTATIONS AND WARRANTIES; KANEKO/AETAS AGREEMENTS AND KANEKO/JT AGREEMENTS; COVENANTS; DISCLAIMER; LIMITATION OF LIABILITY	
 	

18
	

ARTICLE 9	
 	

MANUFACTURING	
 	

21
	

ARTICLE 10	
 	

GRANT BACK BY LICENSEE	
 	

22
	

ARTICLE 11	
 	

INTELLECTUAL PROPERTY	
 	

22
	

ARTICLE 12	
 	

PATENT	
 	

22
	

ARTICLE 13	
 	

FORCE MAJEURE	
 	

25
	

ARTICLE 14	
 	

TERM	
 	

26
	

ARTICLE 15	
 	

EARLY TERMINATION UPON DEFAULT	
 	

26
	

ARTICLE 16	
 	

EARLY TERMINATION FOR OTHER REASONS	
 	

27
	

ARTICLE 17	
 	

OBLIGATIONS AFTER TERMINATION	
 	

28
	

ARTICLE 18	
 	

RIGHT OF FIRST REFUSAL	
 	

31
	

ARTICLE 19	
 	

INDEMNIFICATION	
 	

32
	

ARTICLE 20	
 	

APPLICABLE LAWS	
 	

33
	

ARTICLE 21	
 	

SETTLEMENT OF CONFLICT	
 	

33
	

ARTICLE 22	
 	

NOTICE	
 	

34
	

ARTICLE 23	
 	

SEVERABILITY	
 	

36
	

ARTICLE 24	
 	

ASSIGNMENT	
 	

36
	

ARTICLE 25	
 	

ENTIRE AGREEMENT	
 	

37
	

ARTICLE 26	
 	

COUNTERPARTS	
 	

37
	

ARTICLE 27	
 	

LANGUAGE	
 	

37
	

ARTICLE 28	
 	

RELATIONSHIP BETWEEN THE PARTIES	
 	

37

i

   PREAMBLE 

WITNESSETH
THAT: 

        WHEREAS,
Licensor has good experience in the research and development of pharmaceutical products and owns valuable technical knowledge, know-how and inventions, patentable or
not, including but not limited to the proprietary pharmaceutical compound referred to as K201; 

        WHEREAS,
concurrently with the execution of this Agreement, Licensor is entering into a Confirmation Note with Dr. Noboru Kaneko to, among other things, expand the applicable
territories and extend the term of the Patent Licensing Agreement dated May 1, 2002; and 

        WHEREAS,
Licensee wishes to obtain certain rights with respect to such technical knowledge, know-how and inventions, and Licensor is willing to grant to Licensee those
certain rights under the terms and conditions hereinafter stipulated. 

AGREEMENT 

        NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows: 

Article 1    DEFINITIONS    

        For
the purpose of this Agreement, the following terms shall be deemed to have the meaning given to them below, where words importing the singular number only shall include the plural
number, and vice versa. Words importing persons shall include corporations and other entities: 

        1.     "Affiliate" shall mean any entity controlled by, controlling, or under common control with a party hereto. For the
purposes of this definition, "control" means the ability, directly or indirectly, to vote or direct the vote of 50% or more of the outstanding voting stock or participating profit interest of an
entity. 

        2.     "Annual Report" shall have the meaning provided in Article 6(2). 

1

 

        3.     "API" shall mean the active pharmaceutical ingredient comprising the Licensed Compound, which shall only be used for
making Product for intravenous (IV) administration in the Field for the Territory hereunder. 

        4.     "Confidential Information" of a party means any confidential or proprietary information (including Technical Information,
Licensee Improvements, any technology, know-how, patent application, test result, research study, business plan, budget, forecast or projection) relating directly or indirectly to such
party or any Affiliate, predecessor or successor of such party or their respective businesses (whether prepared by such party or by any other person and whether or not in written form) that is or has
been made available to the other party or any of its Affiliates or representatives. 

        5.     "Confidentiality Agreement" shall mean the Confidentiality Agreement, dated as of April 7, 2005, by and between
Licensor and Licensee. 

        6.     "Control" shall mean, with respect to any information, patent or other intellectual property right, possession by a party
of the ability (whether by ownership, license or otherwise) to grant access, a license or a sublicense to such information, patent or intellectual property right without violating the terms of any
agreement or other arrangement with any Third Party. 

        7.     "Effective Date" shall have the meaning provided in Article 14. 

        8.     "FDA" shall mean the United States Food and Drug Administration, or any successor agency thereto having the administrative
authority to regulate the marketing of human pharmaceutical products or biological therapeutic products, delivery systems and devices in the United States of America. 

        9.     "Field" shall mean the treatment and/or prevention of cardiac arrhythmia including atrial fibrillation and/or
[. . .***. . .] in humans. 

        10.   "First Commercial Sale" shall mean, with respect to the Product in each indication within the Field, the first sale for
end use or consumption of each such Product in a country after the governing health regulatory authority of such country has granted Regulatory Approval. Sale to an Affiliate or Sublicensee shall not
constitute a First Commercial Sale unless the Affiliate or Sublicensee is the end user of the Product. 

***Confidential Treatment Requested

2

 

        11.   "IND" shall mean an Investigational New Drug Application filed with the FDA, or the equivalent application or filing
filed with any equivalent agency or governmental authority in the Territory (including any supra-national agency such as in the European Union) necessary to commence human clinical trials in such
jurisdiction. 

        12.   "Initial Payment Date" shall have the meaning provided in Article 3(1). 

        13.   "Kaneko/Aetas Agreements and Kaneko/JT Agreements" shall mean the agreements which shall in any way be necessary for
Licensor to accomplish any obligation relating to the rights as granted to Licensor for the Territory hereunder and which shall be set forth on Exhibit B hereto. 

        14.   "Licensed Compound" shall mean the compound
[. . .***. . .] 

        [. . .***. . .] 

        15.   "Licensee Improvements" shall mean any and all tangible and intangible (a) techniques, technology, practices,
trade secrets, methods, skill, experience, test data and results (including chemical, physical, manufacturing, pharmacological, toxicological and clinical data and results), analytical and quality
control data, results or descriptions, software and algorithms, technical knowledge, know-how and inventions, whether patentable or not, and (b) compositions of matter,
cells, cell lines, assays, animal models and physical, biological or chemical material, which Licensee Controls as of the Effective Date or during the Term and which are necessary or useful for the
research, development, manufacture, use, sale, offer for sale or import of the Licensed Compound or Products or is otherwise necessary or useful to practice the Patents. 

        16.   "Licensee Indemnitee" shall have the meaning provided in Article 19(1). 

***Confidential Treatment Requested

3

 

        17.   "Licensor Indemnitee" shall have the meaning provided in Article 19(2). 

        18.   "NDA" shall mean a New Drug Application (as more fully defined in 21 C.F.R. 314.5 et
seq.) and all amendments and supplements thereto filed with the FDA, or the equivalent application filed with any equivalent agency or governmental authority in the Territory
(including any supra-national agency such as in the European Union), including all documents, data, and other information concerning a pharmaceutical product which are necessary for gaining Regulatory
Approval to market and sell such pharmaceutical product. 

        19.   "Net Sales" shall mean the gross amounts invoiced by Licensee and its Affiliates and Sublicensees for sales of Products
to Third Parties that are not Affiliates or Sublicensees of the selling party (unless such Affiliate or Sublicensee is the end user of such Product, in which case the amount billed therefor shall be
deemed to be the amount that would be billed to a Third Party end user in an arm's-length transaction), less the following items, as allocable to such Product (if not previously deducted from the
amount invoiced): 

            i.  trade
discounts, credits or allowances, including without limitation, credits or allowances granted upon returns, rejections or recalls, discounts provided by means of
chargebacks, rebates and administrative fees charged by customers or health care organizations determined based upon sales; 

           ii.  freight,
shipping and insurance charges; 

          iii.  taxes,
duties or other governmental tariffs (other than income taxes); and 

          iv.  rebates,
discounts or other payments on sales of Products that are mandated by the government. 

        As
used below, the term "Combination Product" means any Product sold in combination with any other active pharmaceutical ingredient(s)
that is not part of such Product (whether packaged together or provided in the same therapeutic formulation). In the event a Product is sold as part of a Combination Product, the Net Sales from the
Combination Product, for the purposes of determining royalty payments, shall be determined by multiplying the Net 

4

 

Sales
of the Combination Product by the fraction, A/A+B where A is the average sale price of such Product when sold separately in finished form and B is the average sale price of the other active
pharmaceutical ingredient(s) in the Combination Product sold separately in finished form. 

        In
the event that the average sale price of the Product can be determined but the average sale price of the other active pharmaceutical ingredient(s) in the Combination Product cannot be
determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product by the fraction C/D where C is the selling party's
average sales price of the Product and D is the average selling price of the Combination Product. If the average sale price of the other active pharmaceutical ingredient(s) can be determined but the
average price of the Product, as applicable, cannot be determined, Net Sales for purposes of determining royalty payments shall be calculated by multiplying the Net Sales of the Combination Product by
the following formula: one minus C/D where C is the average selling price of the other product(s) and D is the average selling price of the Combination Product. 

        In
the event that the average sales price of both the Product, as applicable, and the other active pharmaceutical ingredient(s) in the Combination Product cannot be determined, the Net
Sales of the Product shall be negotiated in good faith by the parties. In the event that Net Sales for purposes of determining royalty payments for the Product shall be less than
[. . .***. . .] of the Net Sales of the Combination Product, Licensee shall seek Licensor's prior written approval for any
reduction below such threshold, which approval shall not be unreasonably withheld. 

        20.   "Patents" shall mean any and all patent applications and patents that Licensor Controls as of the Effective Date or
during the Term, which would, but for the grant of rights to practice such patent applications or patents, be infringed by the manufacture, use, sale, offer for sale or import of Products or API in
the Territory in the Field for intravenous (IV) administration, including, without limitation, any substitutions, extensions, registrations, confirmations, reissues,
re-examinations,
renewals and similar filings with respect to any patent and any provisionals, converted provisionals, continued 

***Confidential Treatment Requested

5

 

prosecution
applications, continuations, divisionals and continuations-in-part of any patent application. The Patents as of the Effective Date are set forth on
Exhibit A, which Patents may be added by mutual agreement from time to time to Exhibit A as may be arising out of any result relating to the Product or API made by Licensor hereunder. 

        21.   "Phase 1 Clinical Trial" shall mean a human clinical trial that would satisfy the requirements for a Phase 1 study as
defined in 21 C.F.R. 312.21(a) (or its successor regulation), or similar. 

        22.   "Phase 2 Clinical Trial" shall mean a human clinical trial that would satisfy the requirements for a Phase 2 study as
defined in 21 C.F.R. 312.21(b) (or its successor regulation), or similar. 

        23.   "Phase 3 Clinical Trial" shall mean a human clinical trial that would satisfy the requirements for a Phase 3 study as
defined in 21 C.F.R. 312.21(c) (or its successor regulation), or similar. 

        24.   "Pivotal Trial" shall mean a human clinical trial of a Product which, upon completion, would be sufficient (along with
data from any previously completed studies of the Product) to enable submission of an NDA to the FDA for the purpose of obtaining Regulatory Approval to market and sell the Product. 

        25.   "Products" shall mean any and all pharmaceutical product formulations for intravenous (IV) administration in the
Field for the Territory containing the Licensed Compound as an active ingredient. 

        26.   "Regulatory Approval" shall mean any and all approvals (including price and reimbursement approvals, if required),
licenses, registrations, or authorizations of any country, federal, supranational,
state or local regulatory agency, department, bureau or other government entity that are necessary for the manufacture, use, storage, import, transport and/or sale of a Product in such jurisdiction. 

        27.   "Royalty Term" shall mean, in the case of the Product in each indication within the Field, in any country, the period of
time commencing on the First Commercial Sale in such country and ending upon the later of (a) ten (10) years after the date of First 

6

 

Commercial
Sale in such country, or (b) the expiration of the last to expire Valid Claim claiming the sale of such Product in such country. 

        28.   "Subject Right" shall mean (a) any license or other right to the Licensed Compound, Products, Patents and
Technical Information for any or all other cardiac uses outside of the Field, and/or (b) any license or other right to the Licensed Compound, Patents and Technical Information for
pharmaceutical product formulations for any or all routes of administration (other than intravenous (IV) administration), including, but not limited to, per os (PO), sublingual, transdermal,
intramuscular, subcutaneous and inhaled administrations, for any or all uses. 

        29.   "Sublicensee" shall mean a Third Party to whom Licensee or any of its Affiliates has granted a sublicense under the
Technology to develop, make, have made, use, sell, offer for sale or import Products, beyond the mere right to purchase Product from Licensee or its Affiliates. 

        30.   "Technical Information" shall mean any and all tangible and intangible (a) techniques, technology, practices,
trade secrets, methods, skill, experience, test data and results (including chemical, physical, manufacturing, pharmacological, toxicological and clinical data and results), analytical and quality
control data, results or descriptions, software and algorithms, technical knowledge, know-how and inventions, whether patentable or not, and (b) compositions of matter, cells, cell
lines, assays, animal models and physical, biological or chemical material, which Licensor Controls as of the Effective Date or during the Term and which are necessary or useful for the research,
development, manufacture, use, sale, offer for sale or import of the Licensed Compound or Products in the Territory or is otherwise necessary or useful to practice the Patents in the Territory. 

        31.   "Technology" shall mean all rights in and to the Patents and Technical Information. 

        32.   "Term" shall have the meaning provided in Article 14. 

        33.   "Territory" shall mean worldwide with the exception of Japan and the following Asian countries: 

7

 

People's
Republic of China, Republic of Korea, Republic of China (Taiwan), Republic of Indonesia, Kingdom of Cambodia, Republic of Singapore, Kingdom of Thailand, Republic of the Philippines, Brunei
Darussalam, Socialist Republic of Viet Nam, Malaysia, Union of Myanmar, Lao People's Democratic Republic, The Democratic Republic of Timor-Leste, Islamic Republic of Pakistan, India, and People's
Republic of Bangladesh. 

        34.   "Third Party" shall mean any entity other than Licensor or Licensee or an Affiliate of Licensor or Licensee. 

        35.   "Third Party Patent License(s)" shall have the meaning provided in Article 4(3). 

        36.   "Valid Claim" shall mean an unexpired claim of an issued patent within the Patents which has not been found to be
unpatentable, invalid or unenforceable by a court or other authority in the subject country, from which decision no appeal is taken or can be taken. 

Article 2    GRANTS    

        1.     Licensor
hereby grants to Licensee an exclusive license during the Term, with the right to sublicense conditioned by Licensor's prior written approval, which will not be
unreasonably withheld or delayed, under the Technology, to develop, make, have made, use, sell, offer for sale and import Products in the Field in the Territory. Licensor also grants to Licensee an
exclusive license during the Term, under the Technology, to develop, make, have made, use and import API in the Field in the Territory and to sell and offer for sale API to Sublicensees (but not any
other Third Party) in the Field in the Territory. The foregoing right to API is subject to Article 9 hereof. 

        2.     Licensee
hereby agrees to use its commercially reasonable efforts to develop, register and market Product, as it makes for its products having a similar market potential,
in any country of the Territory to maximize the potential of Product. For the purpose hereof, Licensee shall have material obligations in the development to; i) commence the first intravenous
(iv) administration to the first subject in a Phase 1 clinical study [. . .***. . .] from the Effective Date, and
ii) commence the first iv administration to the first patient in the phase 3 clinical study [. . .***. . .]
from the Effective Date. 

***Confidential Treatment Requested

8

 

        3.     Any
sublicense granted by Licensee shall include substantially the same definitions and provisions on Licensee obligations, including but not limited to commercially
reasonable efforts, confidentiality, publicity, reporting requirements, representation and warrantees as are agreed to in this Agreement, and such other provisions as are needed to enable Licensee to
comply with this Agreement. If requested by Licensor, Licensee shall promptly provide Licensor with a term sheet of the concluded sublicense agreement for evidencing the foregoing compliance. Licensee
shall remain responsible for the performance of all Sublicensees under any such sublicense as if such performance were carried out by Licensee itself, including, without limitation, the payment of any
royalties or other payments provided for hereunder. A breach of this provision shall constitute a material breach by Licensee. 

Article 3    TECHNICAL ASSISTANCE OF LICENSOR; RESEARCH    

        1.     Licensor
shall furnish Licensee with all Technical Information promptly after the payment by Licensee of the initial fee in the amount of US$1,000,000 (the  "Initial Payment Date") stipulated in
Article 4(1)(i)(a) of this Agreement. Licensor agrees that promptly after the Effective Date it shall
furnish Licensee with the Technical Information which Licensor estimates would be necessary for Licensee to prepare an IND and is available to Licensor. In the interpretation of this
Article 3(1), the information previously disclosed by Licensor to Licensee in accordance with the Confidentiality Agreement shall be considered to be Technical Information furnished to Licensee
under this Agreement; provided, however, that Licensor agrees to furnish Licensee with any additional Technical Information not so furnished under the
Confidentiality Agreement promptly after the Initial Payment Date. In addition, from time to time after the Initial Payment Date, Licensor shall furnish Licensee with any additional Technical
Information which it develops or discovers. 

        2.     Licensor
shall, at its own expense, furnish Licensee with one copy, in Japanese (which Licensee may translate into English), of technical data, formulas, specifications
and any other materials within the scope of the Technical Information, and shall answer inquiries to be raised by Licensee to the extent as reasonably available to 

9

 

Licensor.
Moreover, during the initial [. . .***. . .] period after Licensor has furnished Licensee the Technical
Information pursuant to Article 3(1) above, Licensor shall provide Licensee, at no cost to Licensee, reasonable technical assistance relating to the use of the Patents and Technical Information
by Licensee solely to the extent permitted under the license granted to Licensee under Article 2. In the event Licensee requires technical assistance after such time, Licensee shall pay
Licensor at a rate of [. . .***. . .] per hour for any such additional technical assistance. 

        3.     Recognizing
the rights as granted to Licensee under Article 2, supply of any material including but not limited to API and Products necessary for gaining the
Regulatory Approval and marketing the Product by Licensee hereunder shall make available under Licensee's sole responsibility. Notwithstanding the foregoing in this Article 3(3), both parties
shall discuss in good faith and agreed upon any appropriate arrangements, where Licensor may supply Licensee, at reasonable consideration, with samples for clinical testing and bulk materials of the
Products for the research and development of formulations for iv administration. In the event that Licensor is unable to supply such samples or materials of the Product appropriately, Licensor may use
its commercially reasonable efforts to assist Licensee at Licensee's expenses to find any contract-manufacturer for Licensee. 

        4.     All
provisions under this Article 3 is subject to Article 8(5). Details of the assistance by Licensor to Licensee under this Article 3(3) may as
necessary be discussed in good faith, agreed upon between the parties and set forth in a memorandum separately. 

Article 4    FEES AND ROYALTIES    

        In
consideration of the rights and the technical assistance herein granted and rendered to Licensee, Licensee shall pay to Licensor the following fees and royalties: 

        1.     Fees.
Licensee shall following the occurrence of each of the events below, pay to Licensor the fees or milestone payments set forth below: 

        i.      Upfront
License Fees: 

        a.     US$1,000,000
upon the signing of this Agreement (initial fee). US$[. . .***. . .] upon
[. . .***. . .] for 

***Confidential Treatment Requested

10

 

the
Product in the Field in the Territory, except that if this milestone event does not occur [. . .***. . .] following the
Effective Date, Licensee shall pay Licensor [. . .***. . .] of this milestone payment on the date that is
[. . .***. . .] following the Effective Date and shall pay Licensor
[. . .***. . .]% of this milestone payment on the earlier of the occurrence of this milestone event or
[. . .***. . .] following the date the
[. . .***. . .]% of the milestone payment is paid. Licensee shall first develop and market Product in the indication of
atrial fibrillation according to the time schedule attached hereto as Exhibit D, which indication within the Field and/or schedule may be changed or amended by mutual agreement. 

        ii.     Milestone
Schedule, [. . .***. . .]: 

        a.     US$[. . .***. . .]
upon the
[. . .***. . .] of the Product in the Territory except that if this milestone event does not occur by
[. . .***. . .] following [. . .***. . .] for
the Product in the Field in the Territory, Licensee shall pay Licensor [. . .***. . .]% of this milestone payment on the
date that is [. . .***. . .] following
[. . .***. . .] for the Product in the Field in the Territory and shall pay Licensor
[. . .***. . .]% of this milestone payment on the earlier of the occurrence of this milestone event or
[. . .***. . .] following the date the
[. . .***. . .]% of this milestone payment is paid 

        b.     US$[. . .***. . .]
upon
[. . .***. . .] for a Product in the Territory, except that if this milestone event does not occur by
[. . .***. . .] following [. . .***. . .] 

***Confidential Treatment Requested

11

 

[. . .***. . .]
of the Product in the Territory, Licensee shall pay Licensor
[. . .***. . .]% of this milestone payment on the date that is
[. . .***. . .] following [. . .***. . .] for
the Product in the Field in the Territory and shall pay Licensor [. . .***. . .]% of the milestone payment on the earlier of
the occurrence of this milestone event or [. . .***. . .] following the date the
[. . .***. . .]% of this milestone payment is paid 

        c.     US$[. . .***. . .]
upon
[. . .***. . .] for a Product in the Territory 

        iii.    Milestone
Schedule, [. . .***. . .]: 

        a.     US$[. . .***. . .]
upon the
[. . .***. . .] of the Product in the Territory 

        b.     US$[. . .***. . .]
upon
[. . .***. . .] of the Product in the Territory 

        c.     US$[. . .***. . .]
upon
[. . .***. . .] for a Product in the Territory 

        d.     US$[. . .***. . .]
upon
[. . .***. . .] for a Product in the Territory 

        e.     When
Licensee determines that there is [. . .***. . .], Licensee shall notify Licensor and the
parties shall discuss in good faith [. . .***. . .]. 

Each
of the payments described in this Article 4(1) shall be made [. . .***. . .] with respect to the achievement of
the specified event, and shall be payable [. . .***. . .] such event occurs. 

        2.     Royalties.
Licensee shall pay to Licensor royalties on Net Sales of Products on a Product-by-Product and
country-by-country basis for the Royalty Term in the Territory: 

***Confidential Treatment Requested

12

 

        a.     [. . .***. . .]%
of total annual Net Sales of all Products in the Territory of up to and
including US$[. . .***. . .]; and 

        b.     [. . .***. . .]%
of total annual Net Sales of all Products in the Territory exceeding
US$[. . .***. . .] 

        For
the countries when and where no Valid Claim exists, the above royalty rates shall be the rate of
[. . .***. . .] percent ([. . .***. . .]%) of
the rate set forth above. For purposes of calculating royalties Net Sales in any applicable country shall be discounted by
[. . .***. . .] percent ([. . .***. . .]%) and
then included in the calculation under above. 

        3.     If
Licensee or any of its Affiliates or Sublicensees is required to obtain one or more licenses under an issued Patent from any Third Party to develop, make, have made,
use, import, offer to sell and/or sell a Product in a particular country ("Third Party Patent License(s)"), Licensee shall first so notify Licensor and
then both parties shall discuss in good faith whether or how to obtain a license of such Third Party patent. If Licensee determines that such Third Party patent is required as described above, subject
to Licensor's prior written agreement, which shall not be unreasonably withheld, [. . .***. . .] percent
([. . .***. . .]%) of any royalties actually paid by Licensee or its Affiliate or Sublicensee under such Third Party Patent
License(s) with respect to the sale of such Product in such country shall be credited against the royalty payments to be paid to Licensor by Licensee with respect to the sale of such Product in such
country. In any calendar year, such credit shall in no event be more than [. . .***. . .] percent
([. . .***. . .]%) of the royalty payments to be paid to Licensor by Licensee with respect to the sale of such Product in
such country. 

        4.     All
payments by Licensee of the payments set forth on Exhibit C hereto as provided in Article 8(4) shall be deducted from any payments due to Licensor under
this Article 4. 

***Confidential Treatment Requested

13

   
Article 5    METHOD OF PAYMENT OF FEES AND ROYALTIES    

        1.     As
for the fees in Article 4(1), Licensee shall pay to Licensor the respective fee in U.S. currency within
[. . .***. . .] from the day when the cause of payment for such fee occurs. 

        2.     As
for the royalties in Article 4(2), Licensee shall, within 60 days after the end of each fiscal half year period of Licensee, (i) deliver to
Licensor a statement with respect to the fiscal half year period last ended which shall set forth in writing the Net Sales of Products for such period and a calculation of the royalties which shall
have accrued during that period in accordance with the applicable stipulations of this Agreement, each in sufficient detail to permit confirmation of the information contained therein and
(ii) pay to Licensor the royalties in U.S. currency which shall have accrued during that period. 

        3.     When
conversion of payments from any foreign currency is required, such conversion shall be at an exchange rate equal to the weighted average of the rates of exchange for
the currency of the country from which the payments are payable as published by The Wall Street Journal, Western U.S. Edition, during the period for
which a payment is due. All payments owed under this Agreement shall be made by wire transfer in immediately available funds to a bank and account designated in writing by Licensor, unless otherwise
specified in writing by Licensor. 

        4.     All
fees and royalties arising from this Agreement shall be remitted to such bank or banks in Japan as Licensor shall from time to time designate without deduction of any
kind except necessary deductions required by the provisions of any tax treaty now or hereafter enforced between Japan and the U.S.A. or other law or regulation applicable to payments by Licensee to
Licensor under this Agreement with which Licensee is required to comply, in which case Licensee shall (a) deduct such necessary taxes from the payment made to Licensor, (b) timely pay
the taxes to the proper U.S. governmental authority, and (c) send Licensor proper evidence of the payment of such taxes to the U.S. governmental authority within 30 days following such
payment. 

***Confidential Treatment Requested

14

 

Article 6    ACCESS TO RECORDS; ANNUAL REPORTS    

        1.     Licensee
shall keep and shall make Sublicensees keep full, complete and accurate books and records of account necessary for the computation of royalties stipulated herein
to be paid during the Term and up to [. . .***. . .] years after the termination thereof for any reason whatsoever, and
shall permit and make Sublicensees permit an independent accounting firm designated by Licensor to examine such books and records of account to the extent necessary to enable Licensor to determine the
accuracy or inaccuracy of any statement of royalty payment delivered or made by Licensee hereunder for a period covering not more than the
[. . .***. . .] years preceding the date of such audit. Such audits may be exercised during normal business hours upon
reasonable prior written notice to Licensee, and Licensor shall have the right to conduct one such audit per year. Licensor shall bear the full cost of such audit unless such audit discloses an
underpayment by Licensee of more than 10% of the amount of royalties due under this Agreement, in which case, Licensee shall bear the full cost of such audit and shall promptly remit to Licensor the
amount of any underpayment. In the event such audit discloses an overpayment by Licensee, the amount of any overpayment shall be applied to any royalty payments due hereunder for the period
immediately following such disclosure of overpayment. 

        2.     Licensee
shall prepare, and deliver to Licensor no later than 60 days after year end (with the first report delivered in 2007), a reasonably detailed written
summary report of the results and progress of their research relating to the Licensed Compound and/or Products during such previous year ("Annual
Report"). For a period of 30 days after the receipt of Licensee's Annual Report, Licensor shall be afforded the opportunity make reasonable inquires of Licensor
regarding the contents of such Annual Report. 

Article 7    CONFIDENTIAL INFORMATION    

        1.     Except
to the extent expressly authorized by this Agreement or otherwise agreed in writing by the parties, the parties agree that, during the Term and for
[. . .***. . .] years thereafter, each party shall keep confidential and shall not publish or otherwise disclose and shall
not use for any purpose other than as expressly set forth in this 

***Confidential Treatment Requested

15

 

Agreement
any Confidential Information furnished to it by the other party pursuant to this Agreement. Each party shall promptly notify the other upon discovery of any unauthorized use or disclosure of
the Confidential Information of the other party. In the event that Confidential Information of a party is divulged willfully or negligently by the other party or by such other party's officers,
employees, Affiliates, Sublicensees or subcontractors, who are given access to such Confidential Information, such other party shall be liable for any damages incurred by the party whose Confidential
Information has been divulged that was caused by such divulgence. 

        2.     The
obligations imposed by this Article 7 shall not apply with respect to any Confidential Information: 

        i.      which
is publicly known or available for public use at the time when furnished by the disclosing party; 

        ii.     which
is already in the receiving party's possession at the time when furnished by the disclosing party, as evidenced by the receiving party's written records; 

        iii.    which
became publicly known or available for public use after it was furnished by the disclosing party for reasons not attributable to the receiving party; 

        iv.    which
the receiving party can properly demonstrate with written evidence has been legally obtained by receiving party, without a confidentiality obligation, from a Third
Party having the authority to disclose such Confidential Information; or 

        v.     which
is independently discovered or developed by the receiving party without use of the Confidential Information belonging to the disclosing party as evidenced by the
receiving party's written records. 

        3.     Each
party may disclose Confidential Information of the other party to the extent such disclosure is reasonably necessary in the following instances: 

        i.      filing
or prosecuting Patents as permitted by this Agreement; 

        ii.     regulatory
filings for Products Licensee has a right to develop hereunder; 

16

 

        iii.    prosecuting
or defending litigation as permitted by this Agreement; 

        iv.    complying
with applicable court orders or governmental regulations; and 

        v.     disclosures
to Affiliates, Sublicensees, employees, consultants, agents, subcontractors or other Third Parties, in connection with due diligence or similar investigations
by such Third Parties, and disclosure to potential Third Party investors in confidential financing documents, provided, in each case, that any such Affiliate, Sublicensee, employee, consultant, agent,
subcontractor or Third Party agrees to be bound by terms of confidentiality and non-use comparable in scope to those set forth in this Article 7. 

        4.     Notwithstanding
the foregoing, in the event a party is required to make a disclosure of the other party's Confidential Information pursuant to
Article 7(3)(iii) or (iv), it shall, except where impracticable, give reasonable advance notice to the other party of such disclosure and use efforts to secure confidential treatment of
such information at least as diligent as such party would use to protect its own confidential information. The parties shall consult with each other on the provisions of this Agreement to be redacted
in any filings made by the parties with the Unites States Securities and Exchange Commission or as otherwise required by law. 

        5.     Each
party to this Agreement recognizes that the publication of papers regarding results of and other information regarding the research and development of Products by
Licensee or its Affiliates or Sublicensees in the Territory or by Licensor or its Affiliates or licensees outside the Territory, including oral presentations and abstracts, may be beneficial to both
parties provided such publications are subject to reasonable controls to protect Confidential Information, intellectual property rights and the integrity of clinical studies. Accordingly, the parties
shall agree in good faith on a publication strategy for prompt review and comment by a party on any material proposed for disclosure or publication by the other party, such as by oral presentation,
manuscript or abstract, which utilizes data generated from the research and development of Products 

17

 

and/or
includes Confidential Information, with the objective of protecting Confidential Information and allowing a party to file appropriate patent applications. 

Article 8    REPRESENTATIONS AND WARRANTIES; KANEKO/AETAS AGREEMENTS, AND KANEKO/JT AGREEMENTS; COVENANTS; DISCLAIMER; LIMITATION OF
LIABILITY    

        1.     Each
party represents and warrants to the other that: (a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation or
formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof; (b) it is duly authorized to execute and deliver this
Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action; and
(c) this Agreement is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument or understanding, oral or written, to which it is a
party or by which it may be bound, nor violate any material law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. 

        2.     Licensor
represents and warrants to Licensee that, as of the Effective Date, 

        i.      the
Technology is owned by Licensor or licensed to Licensor pursuant to the Kaneko/Aetas and Kaneko/JT Agreements, and the rights to grant any license to be granted to
Licensee hereunder is rightfully owned by Licensor; 

        ii.     Licensor
has provided Licensee copies of the Kaneko/Aetas Agreements and Kaneko/JT Agreements, which are true and complete copies (except for financial terms that are
not necessary for Licensee to know), and all of the Kaneko/Aetas Agreements and Kaneko/JT Agreements are in full force and effect in accordance with their respective terms, and there are no agreements
to which Licensor or, to the best of Licensor's knowledge, Dr. Kaneko, is a party relating to the Licensed Compound or Products in the Field in the Territory, other than the Kaneko/Aetas
Agreements and Kaneko/JT Agreements; 

        iii.    Licensor
has not breached the Kaneko/Aetas Agreements 

18

 

referenced
in Section 1 of Exhibit B and, to the best of Licensor's knowledge, no party to any Kaneko/Aetas Agreements or Kaneko/JT Agreements other than Licensor has breached any
Kaneko/Aetas Agreements or Kaneko/JT Agreements to which it is a party, and there is no basis for termination of any of the Kaneko/Aetas Agreements or Kaneko/JT Agreements; 

        iv.    as
far as it is aware, there are no current oppositions or interferences relating to the Patents; 

        v.     it
is not aware of any infringement by any Third Party of any of the Patents; 

        vi.    it
has not granted, licensed or assigned any rights of any nature in or to the Technology in the Field in the Territory to any Third Party nor has it granted any right
to call for license(s), assignment(s), charge(s) or security in respect of the Technology in the Field in the Territory; 

        vii.   except
as set forth on Exhibit C hereto (for which payments Aetas is responsible), to the best of its knowledge, there is no royalty or other license payment
obligations to any Third Party with respect to the research, development, manufacture, use or sale of any Product in the Field in the Territory; 

        viii.  it
has received no notice of infringement or misappropriation of any alleged rights asserted by any Third Party in relation to the Licensed Compound or the Technology
in the Territory; and 

        ix.    it
has furnished Licensee with a list, to the best of its knowledge, of all third parties to whom the Licensed Compound has been previously provided, either by Licensor
or Dr. Kaneko, and whether the Licensed Compound was provided pursuant to a materials transfer agreement or similar agreement. 

        3.     Licensor
agrees that it shall not amend, modify or terminate any of the Kaneko/Aetas Agreements or waive any of its rights under any such agreements in any manner that
would adversely affect Licensee's rights under this Agreement without Licensee's prior written consent. Licensor shall timely properly perform all obligations of Licensor under the Kaneko/Aetas
Agreements at its sole responsibility; provided,

19

 

however, that if Licensor fails to make any payment set forth on Schedule C, Licensee shall be entitled to make such payment on behalf of
Licensor. Licensor shall exercise any of its rights under the
Kaneko/Aetas Agreements without conflicting with the terms of this Agreement. Licensor further agrees to take all steps reasonably necessary or requested by Licensee to permit Licensee to exercise or
enforce Licensor's rights under the Kaneko/Aetas Agreements. Licensor shall promptly provide Licensee with copies of all notifications and communications with respect to matters under the Related
Agreements that would have a material effect on Licensee. 

        4.     Licensor
agrees to use commercially reasonable efforts not to provide Licensed Compound to Third Parties, other than those that have a need to have Licensed Compound as
licensees or Third Party contractors of Licensor and are provided the Licensed Compound pursuant to a material transfer agreement of reasonable scope and duration. 

        5.     EXCEPT
AS EXPRESSLY SET FORTH IN THIS ARTICLE 8 (1), (2), (3) and, (4) THE TECHNOLOGY, INTELLECTUAL PROPERTY RIGHTS AND MATERIALS PROVIDED BY EACH PARTY
HEREUNDER (INCLUDING BUT NOT LIMITED TO ANY TECHNICAL ASSISTANCE GIVEN UNDER ARTICLE 3, THE TECHNICAL INFORMATION AND THE PATENTS) ARE PROVIDED "AS IS" AND EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY
RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICES, IN ALL CASES WITH RESPECT THERETO. Licensee has carefully reviewed and grasped all Technical Information as
disclosed by Licensor prior to the Effective Date. It is further agreed by Licensee that Licensor and JT expressly disclaims any and all warranties with respect the Technical Information generated and
supplied by JT and Licensee shall place any responsibility for any defect of such Technical Information neither on Licensor nor JT. Without limiting Licensor's obligations 

20

 

under
this Agreement, including obligations under Article 3, additional technical information, data and work as required for Licensee to get any Regulatory Approval shall be made by Licensee
at its own responsibility and expense. 

        6.     NEITHER
PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY
LICENSE GRANTED HEREUNDER. This Article 8(6) does not limit either party's indemnification obligations under Article 19 for any damages required to be paid to a Third Party as part of a
claim, demand, action or proceeding subject to indemnification under Article 19. Notwithstanding the above, a party may be liable for actual, special, indirect or consequential damages (but not
for punitive damages) sustained by the other party as a result of breach by such first party of the confidentiality provisions of Article 7. 

Article 9    MANUFACTURING    

        With
respect to the license as granted to Licensee under Article 2 to make and have made API and Product, both parties expressly agree as follows: 

        1.     The
API either directly or indirectly made by Licensee shall be used solely for preparing the Products hereunder. The API shall not be made for the purpose other than for
gaining Regulatory Approval and for making Product hereunder. 

        2.     Licensee
shall by no means sell API to any Third Party (other than a Sublicensee as provided in Section 4 of this Article 9) either by itself or through its
Affiliate. 

        3.     For
making API and/or Product, if Licensee intends to use a toll-manufacturer,
[. . .***. . .], which [. . .***. . .] Licensee
informs Licensor of its intention to use such toll-manufacturer. 

***Confidential Treatment Requested

21

 

        4.     For
making Product by any Sublicensee because of any regulation or other reasons, if Licensee intends to sell API to such Sublicensee, Licensee shall first inform
Licensor [. . .***. . .]. 

Article 10    GRANT BACK BY LICENSEE    

        Licensee
hereby agrees, during the Term, to furnish Licensor with any and all Licensee Improvements. Licensee hereby grants to Licensor an exclusive, royalty-free, fully paid
license during the Term, with the right to sublicense subject to Licensee's prior approval which will not be unreasonably withheld or delayed, to practice the Licensee Improvements which Licensee
Controls during the Term only for use with Licensed Compounds and/or Products in the Field outside the Territory. 

Article 11    INTELLECTUAL PROPERTY    

        Inventorship
of inventions shall be determined in accordance with the rules of inventorship under United States patent laws. Licensor shall own all inventions conceived of and reduced to
practice solely by its employees and contractors, and all intellectual property rights in such inventions. Licensee shall own all inventions conceived of and reduced to practice solely by its
employees and contractors, and all intellectual property rights in such inventions. 

Article 12    PATENT    

        1.     Patent
Prosecution and Maintenance. 

        i.      Licensor
shall be responsible for the preparation, filing, prosecution and maintenance of the Patents at its sole expense. Licensor shall consider in good faith the
requests and suggestions of Licensee with respect to strategies for filing and prosecuting such Patents in the Territory. Licensor shall keep Licensee informed of progress with regard to the
preparation, filing, prosecution and maintenance of Patents in the Territory. In the event that Licensor desires to abandon any Patent in the Territory 

***Confidential Treatment Requested

22

 

claiming
the manufacture, use or sale of a Product being developed or commercialized by or on behalf of Licensee pursuant to a license granted under Article 2, Licensor shall provide reasonable
prior written notice to Licensee of such intention to abandon (which notice shall, in any event, be given no later than sixty (60) days prior to the next deadline for any action that may be
taken with respect to such Patent with the U.S. Patent & Trademark Office or any foreign patent office) and provide Licensee an opportunity to discuss with Licensor the possibility of assuming
responsibility in such Licensee's name for such Patent, provided that any such assumption of responsibility by Licensee shall be subject to the prior written consent of Licensor, which shall not be
unreasonably withheld or delayed. 

        2.     Each
party agrees to cooperate fully in the preparation, filing, prosecution and maintenance of any patents and patent applications under this Agreement and in the
obtaining and maintenance of any patent extensions, supplementary protection certificates and the like with respect to any patent claiming a Product being developed or commercialized by Licensee in
accordance with this Agreement. 

        3.     Licensor
and Licensee shall promptly notify the other in writing of any alleged or threatened infringement of any Patent of which they become aware. Both parties shall
use their commercially reasonable efforts in cooperating with each other to terminate such infringement without litigation. 

        i.      Licensor
shall have the sole right, at its election, to bring and control any action or proceeding with respect to infringement of any Patent outside the Territory at its
own expense and by counsel of its own choice. Licensor shall have the first right, at its election, to bring and control any action or proceeding with respect to infringement of any Patent in the
Territory at its own expense and by counsel of its own choice. With respect to infringement of any Patent that is likely to have a material adverse effect on any Product being developed or
commercialized by Licensee, its Affiliates or its Sublicensees pursuant to a license granted under Article 2, Licensee shall have the right, at its own expense, to be represented in any such
action by counsel of its own choice, and if Licensor fails to bring an action or proceeding within (a) sixty (60) 

23

 

days
following the notice of alleged infringement or (b) ten (10) days before the time limit, if any, set forth in the appropriate laws and regulations for the filing of such actions,
whichever comes first, Licensee shall have the right, but not the obligation, to bring and control any such action at its own expense and by counsel of its own choice, and Licensor shall have the
right, at its own expense, to be represented in any such action by counsel of its own choice. 

        ii.     In
the event a party brings an infringement action in accordance with this Article 11(4), the other party shall cooperate fully, including, if required to bring
such action, the furnishing of a power of attorney or being named as a party. Neither party shall have the right to settle any patent infringement litigation under this Article 11(4) relating
to any Patent claiming the manufacture, use or sale of a Product being developed or commercialized by Licensee or its Affiliate or Sublicensee in the Territory pursuant to the license granted under
Article 2 without the prior written consent of such other party. Except as otherwise agreed to by the parties as part of a cost-sharing arrangement, any recovery realized as a
result of such litigation, after reimbursement of any litigation expenses of Licensor and Licensee, shall be retained by the party that brought and controlled such litigation for purposes of this
Agreement, except that any recovery realized by Licensee as a result of such litigation, after reimbursement of the parties' litigation expenses, shall be shared by the parties based on the relative
economic interests of the parties in the profits from the sale of Products in the Field in the Territory. 

        4.     Each
party shall promptly notify the other in writing of any allegation by a Third Party that the activity of either of the parties pursuant to this Agreement infringes
or may infringe the intellectual property rights of such Third Party. Licensor shall have the sole right to control any defense of any such claim involving alleged infringement of Third Party rights
by Licensor's activities at its own expense and by counsel of its own choice, and Licensee shall have the right, at its own expense, to be represented in any such action by counsel of its own choice.
Licensee shall have the sole right to control any defense of any such claim involving alleged infringement of Third Party rights by Licensee's activities at its own expense and by counsel of its own
choice, and Licensor 

24

 

shall
have the right, at its own expense, to be represented in any such action by counsel of its own choice. Neither party shall have the right to settle any patent infringement litigation under this
Article 11(5) in a manner that diminishes the rights or interests of the other party without the written consent of such other party (which shall not be unreasonably delayed or withheld). 

        5.     Licensee
hereby covenants, on behalf of itself and its Affiliates, that [. . .***. . .]. 

Article 13    FORCE MAJEURE    

        Notwithstanding
anything elsewhere in this Agreement to the contrary, neither party hereto shall be liable to the other party for any losses or damages attributable to a default in or
breach of this Agreement by reason of any event beyond such party's reasonable control including but not limited to strike, fire, explosion, earthquake, flood, pestilence, or other natural force,
riot, war, civil unrest, accident, destruction, acts of God, acts of Government, any lack or failure of transportation facilities, any lack or failure of supply of raw materials, or any other event
similar to those enumerated above. Such excuse from liability shall be effective only to the extent and duration of the event(s) causing the failure or delay in performance and provided that the party
has not caused such event(s) to occur. Notice of a party's failure or delay in performance due to force majeure must be given to the other party within ten (10) days after its occurrence. All
delivery or payment dates under this Agreement that have been affected by force majeure shall be tolled for the duration of such force majeure. In no event shall any party be required to prevent or
settle any labor disturbance or dispute. Notwithstanding the foregoing, should the event(s) of force majeure suffered by a party extend beyond a three (3)-month period, the other party may then
terminate this Agreement by written notice to the non-performing party, with the consequences of such termination as set forth in Article 17. Any suspension of performance by reason
of this Article 11 shall not affect the running of the Term. 

***Confidential Treatment Requested

25

   
Article 14    TERM    

        This
Agreement shall be valid and in full force and effect, unless sooner terminated in accordance with the relevant stipulations of this Agreement, from the date first above written
(the "Effective Date") until the expiration of the last Royalty Term for all of the Products with respect to which Licensee has a license under
Article 2 (the "Term"). As to each Product, after the Royalty Term expires for such Product (but not in the case of early termination by Licensor
under Article 13, Article 15 or Article 16(2), or by Licensee under Article 16 (3)), the license granted under Article 2 for such Product in each country in the
Territory, shall become fully paid, royalty free, perpetual and irrevocable and non-exclusive only for use with Licensed Compound and/or Products in the Field in the Territory. With
respect to the license to Licensee Improvements granted in Article 10, upon the expiration of the Term (but not in the case of early termination by Licensee under Article 15 or
Article 16(2)), such license shall become perpetual and irrevocable and non-exclusive, as to Licensor, only for use with Licensed Compound and/or Products in the Field outside the
Territory. 

Article 15    EARLY TERMINATION UPON DEFAULT    

        In
the event of a default under any of the material obligations of this Agreement by either party hereto, the party not in default may terminate this Agreement by serving sixty
(60) days' written notice to such effect upon the defaulting party, setting forth the particulars with respect to the default relied upon to effect termination. In the event that the default
specified in such notice is not cured within such sixty (60)-day period, then upon the expiration of said sixty (60)-day cure period this Agreement may be terminated by the
non-defaulting party upon written notice to the defaulting party without any prejudice to the losses and damages caused by the breach of this Agreement; provided,
however, that when the question of the existence of such default shall have been submitted for resolution in accordance with Article 21 of this Agreement, the running of
said sixty (60)-day period shall be suspended during the pendency of such resolution process. 

26

 

Article 16    EARLY TERMINATION FOR OTHER REASONS    

        1.     A
party hereto shall notify the other party if any of the following occur to such party during the Term: 

        i.      Proceedings
of bankruptcy, insolvency or the like; 

        ii.     Dissolution
or winding up of the business (other than dissolution or winding up for the purpose of reconstruction or amalgamation); or 

        iii.    Any
other fact that makes faithful performance of the rights or obligations under this Agreement impossible. 

        2.     The
other party, after receiving such notice, may terminate this Agreement after providing thirty (30) days' prior written notice of its intent to terminate
without any prejudice to the losses and damages caused by the breach of this Agreement; provided, however, that when the question of the existence of
such default shall have been submitted to arbitration in accordance with Article 21 of this Agreement, the running of said thirty (30)-day period shall be suspended during the
pendency of such arbitration. 

        3.     In
addition, Licensee may terminate this Agreement upon ninety (90) days' prior written notice to Licensor in the event of any safety or regulatory mandates by FDA
or similar governmental authorities with regard to the Product or decision by Licensee or its Affiliates or Sublicensees, after good faith discussion with Licensor, to discontinue development or
commercialization of the Product due to safety or efficacy concerns with regard to the Product, any material diminution of the intellectual property protection covering the Product and/or Licensed
Compound, or adverse makret conditions such that the development or commercialization of the Product pursuant to this Agreement is no longer commercially viable for Licensee. 

        4.     In
addition, Licensor may terminate this Agreement upon thirty (30) days' prior written notice to Licensee if Licensee fails to accomplish any of its material
obligations in the development under Article 2 (2) i) or ii) without reasonable reasons. The final decision of the termination shall be made at Licensor's sole discretion, despite
that Licensor may have an opportunity to demonstrate within the said thirty (30) days that such failure has been mainly caused by reasonable reasons. 

27

 

Article 17    OBLIGATIONS AFTER TERMINATION    

        1.     In
the event of the termination of this Agreement by Licensor pursuant to Articles 13, 15 or 16(2) or by Licensee pursuant to Article 16(3), the license granted by
Licensor under Articles 2, if then in effect, shall automatically terminate and revert to Licensor and Licensee shall promptly cease to use for its purpose and return to Licensor or otherwise dispose
of as Licensor may direct, all Technology furnished to Licensee by Licensor in accordance with this Agreement, together with all reproductions thereof made by or on behalf of Licensee including, but
not limited to, any and all English translations of the Technical Information. In the event of such termination of this Agreement, any existing sublicenses of the Technology granted by Licensee prior
to such termination shall remain in effect and shall become direct licenses from Licensor on the terms set forth herein. In the event of such termination of this Agreement, in any countries within the
Territory [. . .***. . .], Licensor shall have the right to promptly obtain
[. . .***. . .], Controlled by Licensee with respect to Product in such countries within the Territory
[. . .***. . .] with respect to Product in such countries within the Territory for any purposes whatsoever, unless a
regulatory authority or any local law prohibits [. . .***. . .], subject to the following payments by Licensor to Licensee: 

        i)     in
the event that Licensor or its successor sells Products in the Territory after obtaining Regulatory Approvals;
(a) [. . .***. . .] percent
([. . .***. . .]%) of royalty on net sales,
[. . .***. . .]; or (b) [. . .***. . .]
percent ([. . .***. . .]%) royalty on net sales,
[. . .***. . .] 

***Confidential Treatment Requested

28

 

        [. . .***. . .];
or 

        ii)    in
the event that any Sublicensee and/or Licensor's another licensee sells Products in the Territory after obtaining Regulatory Approvals;
(a) [. . .***. . .] of the
[. . .***. . .] but at least [. . .***. . .]% on
[. . .***. . .]; or (b) [. . .***. . .]
of the [. . .***. . .] but at least
[. . .***. . .]% on [. . .***. . .]. 

        The
term [. . .***. . .] Article 17
(1) [. . .***. . .] respectively. 

        Licensor
may exercise such option right by providing Licensee with the written notice at the time it or Licensee provides notice of termination, and upon such exercise, Licensor and
Licensee shall negotiate in good faith about [. . .***. . .] without delay. Upon the parties enter into an agreement how to
actually make [. . .***. . .], Licensee shall provide reasonable aid to Licensor such that Licensor or its designee may
continue ongoing development activities then being performed by Licensee. In such a case, Licensor shall pay Licensee for such aid at Licensee's then current consulting rate and shall pay all
development expenses for the development activities following the date of such termination, for a reasonable period of not more than
[. . .***. . .] months thereafter, and thereafter, Licensee shall succeed such activities to Licensor in a diligent way so
that Licensor or its designee is able to continue development for its own registration in the Territory. 

***Confidential Treatment Requested

29

 

        2.     Notwithstanding
the stipulations of the preceding paragraph, Licensee may sell or otherwise dispose of the Products stocked by it at the termination of this Agreement
during the six (6) months commencing after the day of the termination, subject to the payment of all royalties therefor to Licensor. 

        3.     In
the event of the termination of this Agreement by Licensee pursuant to Articles 13, 15 or 16(2), the licenses granted by Licensee under Article 10, if then in
effect, shall automatically terminate and revert to Licensee and Licensor shall promptly return to Licensee or otherwise dispose of as Licensee may direct, all Licensee Improvements, data, drawings,
specifications and all other materials furnished to Licensor by Licensee in accordance with this Agreement, together with all reproductions thereof made by or on behalf of Licensor. In addition, at
Licensee's election, all rights under the licenses granted to Licensee by Licensor under Article 2 and other rights of Licensee under this Agreement shall remain in effect in accordance with
their terms, subject to compliance by Licensee with all applicable provisions of this Agreement (including, without limitation, the payment obligations set forth in Article 4). 

        4.     No
termination or expiration of this Agreement for any reason whatsoever shall release either party hereto from its obligations thereafter to pay sums of money payable on
account of the events which occurred or which are the result of acts or omissions which occurred prior to termination. 

        5.     Expiration
or termination of this Agreement shall not relieve the parties of any obligation accruing prior to such expiration or termination. The rights and obligations
of the parties under Articles 1, 6(1), 7, 8(5), 8(6), 11, 17, 19, 20, 21, 23, 24, 25, 26, 27 and 28 of this Agreement shall survive the expiration or termination of this Agreement for any reason
whatsoever. In addition, the rights and obligations of the parties under Article 14 shall survive the expiration (but not the early termination) of this Agreement as provided therein.
Termination of this Agreement shall not preclude either party from claiming any damages, compensation or relief that it may be entitled to upon such termination, except that a party's exercise of its
termination right shall not give rise 

30

 

        to
the payment of damages or any other form of compensation or relief to the other party with respect thereto. 

        6.     All
rights and licenses granted under or pursuant to this Agreement by Licensor and Licensee are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the U.S. Bankruptcy Code and Japanese law, if applicable, licenses of right to "intellectual property" as defined under Section 101 of the U.S. Bankruptcy Code or
applicable Japanese law. 

Article 18    RIGHT OF FIRST REFUSAL    

        During
the Term, if Licensor decides to grant a license or make any other disposition of a Subject Right in the Territory to a Third Party, Licensor shall not grant such license or make
such disposition of a Subject Right in the Territory unless and until Licensor first provides Licensee with written notice as provided in this Article 18. Such written notice shall set forth
the material terms and conditions of the proposed agreement with such Third Party with regard to the Subject Right in the Territory and an offer to Licensee to enter into an agreement with regard to
the Subject Right in the Territory on the same material terms and conditions as that offered to such Third Party (or if the terms and conditions are unique as to such Third Party, substantially
equivalent terms and/or conditions). Licensee shall have a right of first refusal for a period of [. . .***. . .] from its
receipt of such written notice to notify Licensor that it wishes to accept the foregoing offer and, if Licensee does wish to accept such offer, Licensor shall forward to Licensee an agreement
embodying such offer and the parties shall proceed in good faith to finalize a definitive agreement with regard to the Subject Right in the Territory. If Licensee does not notify Licensor within such
[. . .***. . .] period, then Licensor shall have up to
[. . .***. . .] to enter into a definitive agreement with regard to the Subject Right in the Territory with such Third Party
on the terms set forth in the Licensor offer delivered to Licensee pursuant to this Article 18. If the Licensor does not consummate the definitive agreement with regard to the Subject Right in
the Territory with such Third Party on those terms within the [. . .***. . .] period, then Licensor may not thereafter
consummate an agreement as to that or any other license or other disposition of the Subject Right in the Territory unless it 

***Confidential Treatment Requested

31

 

        again
complies with the terms of this Article 18. Notwithstanding the foregoing in this Article, for
[. . .***. . .] following the Effective Date, the parties hereto shall discuss in good faith the development and licensing
of oral formulation as contained in the Subject Right. 

Article 19    INDEMNIFICATION    

        1.     Licensor
hereby agrees to save, defend and hold Licensee and its Affiliates and Sublicensees their respective directors, officers, employees and agents (each, a  "Licensee Indemnitee") harmless from and
against any and all demands, liabilities, expenses and/or loss, including reasonable legal expense and
attorneys' fees (collectively, "Losses"), to which any Licensee Indemnitee may become subject as a result of any claim, demand, action or other
proceeding by any Third Party, including the parties of the Kaneko/Aetas Agreements, and Kaneko/JT Agreements, to the extent such Losses arise directly or indirectly out of: (i) the practice by
Licensor of any license granted under Article 10, (ii) the manufacture, use, handling, storage, sale or other disposition of any product containing the Licensed Compound by Licensor, its
Affiliates or licensees (other than Licensee, its Affiliates and their respective Sublicensees) involving any rights granted by Licensee to Licensor under Article 10 or Article 17 or
(iii) the breach by Licensor of any warranty, representation, covenant or agreement made by Licensor in this Agreement; except, in each case, to the extent such Losses result from the gross
negligence or willful misconduct of any Licensee Indemnitee or the breach by Licensee of any warranty, representation, covenant or agreement made by Licensee in this Agreement. 

        2.     Licensee
hereby agrees to save, defend and hold Licensor and its Affiliates and JT and their respective directors, officers, employees and agents (each, a  "Licensor Indemnitee") harmless from and against
any and all Losses to which any Licensor Indemnitee may become subject as a result of any claim,
demand, action or other proceeding by any Third Party to the extent such Losses arise directly or indirectly out of: (i) the practice by Licensee of any license granted hereunder,
(ii) the manufacture, use, handling, storage, sale or other disposition of any, API, Licensed Compound and/or Product in the Field in the Territory by Licensee, its Affiliates or any of their
respective 

***Confidential Treatment Requested

32

 

        Sublicensees,
or (iii) the breach by Licensee of any warranty, representation, covenant or agreement made by Licensee in this Agreement; except, in each case, to the extent such
Losses result from the gross negligence or willful misconduct of any Licensor Indemnitee or the breach by Licensor of any warranty, representation, covenant or agreement made by Licensor in this
Agreement. 

        3.     Any
entity entitled to indemnification under this Article 19 shall give notice to the indemnifying party of any Losses that may be subject to indemnification,
promptly after learning of such Losses, and 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 with counsel so selected, the indemnifying party shall not be subject to any liability for any settlement of such Losses made by the indemnified party without its consent (but
such consent shall not be unreasonably withheld or delayed), and shall not be obligated to pay the fees and expenses of any separate counsel retained by the indemnified party with respect to such
Losses. 

        4.     Licensee,
at its own expense, shall maintain product liability insurance (or self-insure) in an amount consistent with industry standards during the Term and
shall name Licensor as an additional insured with respect to such insurance. Licensee shall provide a certificate of insurance (or evidence of self-insurance) evidencing such coverage to
Licensor upon request. 

Article 20    APPLICABLE LAWS    

        This
Agreement shall be governed as to all matters, including validity, construction and performance, by and under the laws of Japan. 

Article 21    SETTLEMENT OF CONFLICT    

        This
Agreement shall be executed by the parties hereto in good faith, and, in case a doubtful point is raised or any dispute occurs concerning the interpretation or execution of this
Agreement (excluding any matter regarding the validity of patents), such matter shall be settled through due consultation of the parties. 

33

 

        In
the event that an amicable settlement cannot be reached through consultation, either party may decide to institute arbitration proceedings in accordance with the Rules of Conciliation
and Arbitration of the International Chamber of Commerce (the "Rules"), which Rules are deemed to be incorporated by reference into this clause, by
providing written notice to that effect to the other party. The arbitration shall be conducted by one or more arbitrators appointed in accordance with the Rules; provided, however, that the place of
arbitration shall be Tokyo, Japan. 

        The
arbitral award shall be final and binding upon the parties hereto and they shall comply in good faith with the decision. The arbitrators shall be authorized to award compensatory
damages, but shall NOT be authorized (i) to award non-economic damages, such as for emotional distress, pain and suffering or loss of consortium, (ii) to award punitive
damages, or (iii) to reform, modify or materially change this Agreement or any other agreements contemplated hereunder; provided, however, that the damage limitations described in parts
(i) and (ii) of this sentence shall not apply if such damages are statutorily imposed. Judgment upon the award may be entered in any court having jurisdiction or application may be made
to such court for a judicial acceptance of the award or an order of enforcement as the case may be. Each party shall bear its own costs and expenses incurred in connection with any arbitration
proceeding and the parties shall equally share the cost of the arbitration levied by the International Chamber of Commerce. 

        Nothing
contained in this Agreement shall deny any party the right to seek injunctive or other equitable relief from a court of competent jurisdiction in the context of a bona fide
emergency or prospective irreparable harm, and such an action may be filed and maintained notwithstanding any ongoing arbitration proceeding. 

Article 22    NOTICE    

        Any
notice or communication pertaining to this Agreement shall be made in English, and shall be deemed to have been duly given by a party hereto subject to due arrival if sent to the
other party by mail, fax, e-mail or overnight courier or equivalents for these media. Each party hereto shall forthwith, and may from time to time thereafter, specify by written notice to
the other party the address, fax number, e-mail address, etc. to which notice shall be sent. 

34

 

        Notice
shall be deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt; (b) if mailed, seven days after the date of postmark;
(c) if delivered by overnight courier, the third business day on which the overnight courier regularly makes deliveries; and (d) if sent by fax or e-mail, when transmitted
provided that a confirmatory copy of such transmission shall have been sent by overnight courier within twenty-four (24) hours of such transmission. 

        If
to Licensor, notices must be addressed to: 

Aetas
Pharma Co., Ltd.

1-13-4, Nihonbashi Muromachi, Chuo-ku

Tokyo 103-0022, Japan

Attention: Senior Director, New Drug Development Division

Telephone: 03(6202)1177

Facsimile: 03(3231)0922 

        With
a required copy to: 

Aetas
Pharma Co., Ltd.

1-13-4, Nihonbashi Muromachi, Chuo-ku

Tokyo 103-0022, Japan

Attention: Managing Director

Telephone: 03(6202)1177

Facsimile: 03(3231)0922 

        If
to Licensee, notices must be addressed to: 

NovaCardia, Inc.

1265 High Bluff Drive, Suite 200

San Diego, CA 92130

USA

Attention: Associate Director, Business Development

Telephone: (858) 509-0455

Facsimile: (858) 509-0456 

        With
a required copy to: 

Cooley
Godward LLP

4401 Eastgate Mall

San Diego, CA 92121

Attention: L. Kay Chandler, Esq.

Telephone: (858) 550-6000

Facsimile: (858) 550-6420 

35

 

Article 23    SEVERABILITY    

        The
stipulations of this Agreement shall be deemed to be severable, and any invalidity, illegality or unenforceability of a stipulation hereof shall not affect the validity of the
remaining stipulations. All remaining portions shall remain in full force and effect as if the original Agreement had been executed without the invalidated, unenforceable or illegal part. 

        The
parties shall use commercially reasonable efforts to replace the invalid stipulation with another stipulation in such a way that the economic result intended by the parties shall be
maintained. 

Article 24    ASSIGNMENT    

        1.     Except
as expressly provided hereunder, neither party hereto shall assign, pledge or otherwise dispose of its rights or obligations hereunder without the prior written
consent of the other party (which consent shall not be unreasonably withheld); provided, however, that either party may assign or otherwise dispose of
this Agreement and its rights and obligations hereunder without the other party's consent: 

        i.      in
connection with the transfer or sale of all or substantially all of the business or assets of such party associated with Products to a Third Party, whether by merger,
sale of stock, sale of assets or otherwise, provided that in the event of such a transaction (whether this Agreement is actually assigned or is assumed by the acquiring party by operation of law
(e.g., in the context of a reverse triangular
merger)), intellectual property rights of the acquiring party to such transaction (if other than one of the parties to this Agreement) shall not be included in the technology licensed hereunder; or 

        ii.     to
an Affiliate, provided that the assigning party shall remain liable and responsible to the non-assigning party hereto for the performance and observance
of all such duties and obligations by such Affiliate. 

        2.     The
rights and obligations of the parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties. Any
assignment not in accordance with this Agreement shall be void. 

36

 

Article 25    ENTIRE AGREEMENT    

        This
Agreement constitutes the entire and only agreement between the parties hereto, and no modification, change or amendment of this Agreement shall be binding upon either party hereto
except by mutual express consent in writing of subsequent date signed by an authorized officer or representative of each of the parties. This Agreement supersedes all prior and contemporaneous
agreements and communications, whether oral, written or otherwise, concerning any and all matters contained herein, except the Confidentiality Agreement. No rights or licenses with respect to any
intellectual property of either party are granted or deemed granted hereunder or in connection herewith, other than those rights expressly granted in this Agreement. 

Article 26    COUNTERPARTS    

        This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one
instrument. 

Article 27    LANGUAGE    

        This
Agreement has been prepared in the English language and the English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder,
and all written,
electronic, oral or other communications between the parties regarding this Agreement shall be in the English language, including any proceeding under Article 21 of this Agreement. 

Article 28    RELATIONSHIP BETWEEN THE PARTIES    

        The
parties' relationship, as established by this Agreement, is solely that of independent contractors. This Agreement does not create any partnership, joint venture or similar business
relationship between the parties. Neither party is a legal representative of the other party, and neither party can assume or create any obligation, representation, warranty or guarantee, express or
implied, on behalf of the other party for any purpose whatsoever. 

37

 

        IN
WITNESS WHEREOF, the parties hereto have caused two copies of this Agreement in English to be signed by their duly authorized officer or representative of the date first above
written. 

	 	 	Aetas Pharma Co., Ltd.
	

 	
 	

By:	
 	

/s/ Toru Kaneko

	 	 	Name:	 	Toru Kaneko
	 	 	Title:	 	President
	 	 	Date:	 	29 August 2006

	

 	
 	

NovaCardia, Inc.
	

 	
 	

By:	
 	

/s/ Randall E. Woods

	 	 	Name:	 	Randall E. Woods
	 	 	Title:	 	President & CEO
	 	 	Date:	 	25 August 2006

38

   EXHIBIT A  

Patents  

	 	 	[. . .***. . .]	 	[. . .***. . .]	 	[. . .***. . .]	 	[. . .***. . .]	 	[. . .***. . .]	 	[. . .***. . .]

***Confidential Treatment Requested

39

   EXHIBIT B  

 Kaneko/Aetas Agreements and Kaneko/JT Agreements  

	1.
	Patent
License Agreement between Noboru Kaneko ("Kaneko") and the Licensor, dated May 1, 2002, and Confirmation Note between Kaneko and the Licensor, dated August 22,
2006.

	2.
	License
Agreement between Kaneko and Japan Tobacco, Inc. ("JT"), dated April 1, 1995.

	3.
	Memoranda
between Kaneko and JT dated May 25, 2001.

	4.
	Written
confirmation between Kaneko and JT regarding termination of the Licensing Agreement, dated March 31, 2002. 

Note: Aetas Co., Ltd. was founded on May 23, 2000. The corporate name of Aetas Co., Ltd. has been changed to Aetas Pharma Co., Ltd. on
October 1, 2004. Aetas Pharma Co. Ltd., has succeeded the firm of Aetas Co., Ltd. on October 1, 2004.

40

   EXHIBIT C  

 Payment Obligations  

	1.
	[. . .***. . .]

	2.
	[. . .***. . .] 
***Confidential Treatment Requested

41

   EXHIBIT D  

 Development Schedule  

K201 Preliminary Development Outline

Atrial Fibrillation: Intravenous Formulation

June 16, 2006 

	Activity
	 	Duration

	Transfer of documentation	 	1 month

[. . .***. . .]

***Confidential Treatment Requested

42

QuickLinks

Exhibit 10.15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]