Document:

10-K 2007 Exhibit 10.32

                                                                                    Exhibit 10.32

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

This Separation and Release of Claims Agreement ("Agreement") documents the agreement between you, Gerard J.
Michel, and NPS Pharmaceuticals, Inc., its subsidiaries and affiliates ("NPS" or "the Company") concerning the
termination of your status as an employee of the Company effective the close of business on November 19, 2007.

RECITALS

	You have been employed by NPS through and including the Separation Date, as defined below.

	You and NPS have entered into a number of agreements governing your employment and severance of that employment including, but
not limited to:

	Employee Agreement Concerning Invention Assignment, Non-Disclosure and Non-Competition ("Non-Disclosure and Non-
Competition Agreement"), a copy of which is attached as Exhibit A.

	Agreement Providing Specified Benefits Following Termination of Employment Incident to Merger, Acquisition or Other Change of
Control or Some Other Strategic Corporate Event ("Termination Agreement"), a copy of which is attached as Exhibit B.

	Your employment has been terminated and NPS has concluded that you are entitled to receive the Severance Benefits provided in
paragraph 2 of the Termination Agreement.

Based on the foregoing Recitals, and on the mutual covenants contained herein, you and NPS agree as follows:

	Separation Date.   Your status as an employee with NPS is terminated effective the close of business on
November 19, 2007 (the "Separation Date").

	Effective Date.  This Agreement is effective on the eighth (8th) day following your signing this Agreement,
provided that you do not revoke your execution of this Agreement as provided in paragraph 24 below.

	Severance and Benefits.   The severance and benefits to which you are entitled as of the Separation Date
are as follows:

3.1Severance Pay.    The Duration of Severance Period under said Termination Agreement is 24 months.
All payments provided for in this Agreement will be subject to the usual deductions, including required withholding taxes and deduction for
any outstanding advances.  In accordance with the Termination Agreement, the Company will pay to you $615,356 (Gross) as follows:

	$450,000 to be paid upon the expiration of the Consideration Period (defined in paragraph 22 of this agreement); and

	The remaining $165,356 to be paid six months following your Separtion Date (May 19, 2008)

3.2Insurance.   You, your spouse and eligible family members, will continue to receive medical and/or
dental coverage in accordance with paragraph 2.2 of the Termination Agreement and in accordance with the provisions of COBRA.

3.3Stock Options.   Effective on the first day after the Separation Date, as provided for under
paragraph 2.3 of the Termination Agreement, your outstanding stock options will receive accelerated vesting and continued exercisability for
the longer of (i) 24 months (the Duration of the Severance Period), from the Separation Date (as shown on the Grant Status Report
attached hereto as Exhibit C), or (ii) such other period as you may be entitled to under any stock option plan or grant or retirement plan.
Following your Separation Date, and after any applicable accelerated vesting, all unvested options will immediately expire.

3.4Restructuring Incentive.   Additionally, you may be entitled to receive benefits under the Executive
Team 2007 Restructuring Incentive Target Program, if the Board of Directors determines that the goals under that Program have been
achieved pursuant to the terms of that Program.

	Confidential Information.   You are reminded of the terms of the Non-Disclosure and Non-Competition
Agreement which you signed as part of the terms of your employment with the Company and will continue in effect after the Separation Date.
Under that agreement, you are required to protect and not disclose any information regarding the Company's proprietary intellectual property,
its financial condition, terms of its business relations, and all other Confidential Information as defined in that agreement.

	Property.   It is understood that anything produced by you as an employee of the Company is the property of
the Company. You are obligated to leave with or return to the Company any such documents whether tangible property or in electronic form
belonging to the Company including, but not limited to, documents or tangible property which may contain or reflect confidential information or
trade secrets of the Company. Such confidential information and trade secrets may include scientific data, proprietary ideas, financial
information, knowledge of specific business dealings or practices, or other matters which the Company attempts to maintain as confidential in
the course of its business. By your signature below, you certify to the Company that you have returned all property of the Company.

	401(k) Plan.   You are a participant in the Company's 401(k) Plan, and will receive a packet from Mass Mutual
Retirement Services approximately thirty days after separation. This packet will contain information about your options in regards to your account.

                                                    2

Some of the options include rolling the funds over to an IRA or your new employer's plan, or you may leave the funds with the NPS
plan, provided the account balance is greater than $5,000. 

	Section 125 Cafeteria Plan.   If you have elected to participate in the Company's Section 125 Cafeteria Plan,
you may recover any outstanding balance by submitting a claim form within 90 days of your Separation Date. Claims can only be submitted
for services incurred during your participation in the plan. Specific COBRA information will be mailed to your home.

	Life Insurance.   The Company currently is the owner of a group term life insurance policy that may include
you, and which may be converted to an individual policy (with certain limitations). A conversion form may be obtained from the insurance
carrier with your benefits information. Any supplemental life insurance may also be converted to an individual policy within 31 days of your
Separation Date.

	Personal Time Off (PTO).   PTO will continue to accrue through the Separation Date and you will be paid in
cash for all unused PTO.

	Short- and Long-Term Disability Insurance.   All Company arrangements for payment, either direct or through
insurance, for short-term disability and long-term disability, will cease on the Separation Date.

	Severability.   If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by
any rule of law, public policy or may subject you to the payment of additional tax under Section 409A, all other conditions and provisions of
this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either party.  Upon such determination that any term or other provision is invalid,
illegal, incapable of being enforced or may subject you to the payment of additional tax under Section 409A, the parties shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the fullest extent possible and, to the extent applicable, then do not constitute
nonqualified deferred compensation subject to the requirements of Section 409A or satisfy such requirements. NPS has advised you to seek
your own business and legal advice concerning the terms hereof. 

	Release.   As a material inducement to NPS to enter into this Agreement and in consideration for the
payment of the amount set forth in this Agreement, you, for yourself and for all persons claiming by, thorough, or under you, hereby
absolutely, irrevocably, completely and unconditionally release and discharge NPS and each of NPS's subsidiaries, affiliates, successors,
assigns, agents, directors, officers, employees, representatives, attorneys and all persons acting by, through, under or in concert with any of
them ("Releasees") of and from:

	Any and all claims, demands, charges, grievances, damages, debts, liabilities, accounts, costs, attorney's fees, expenses, liens, future
rights, and causes of action of every kind and nature whatsoever based on or in any way arising out of events or omissions occurring prior to
the effective date of this Agreement ("Claims"). The Claims

                                                    3

from which you are releasing Releasees herein include, without
limitation, breach of implied or express contract, breach of implied covenant of good faith and fair dealing, libel, slander, wrongful discharge or
termination, infliction of emotional distress, discrimination and other claims under the Age Discrimination in Employment Act, the Older
Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act, the Americans With Disabilities Act, the
Utah Antidiscrimination Act, the New Jersey Law Against Discrimination, the Worker Adjustment and Retraining Notification Act (WARN Act),
the Employee Retirement Income Security Act (ERISA), and all other laws prohibiting age, race, religion, sex, national origin, color, disability
and other forms of discrimination, claims growing out of any legal restrictions on NPS's right to terminate its employees, and all other claims
arising in any way out of your employment relationship with NPS or the termination of that relationship, whether now known or unknown,
suspected or unsuspected, including future rights, based upon or in any way arising out of events or omissions occurring prior to the effective
date of this Agreement.

	You specifically waive any and all claims for back pay, front pay, or any other form of compensation, except as set forth herein.

	You hereby waive any right to recover damages, costs, attorneys' fees, and any other relief in any proceeding or action brought against
NPS by any other party, including without limitation the Equal Employment Opportunity Commission, the Utah Antidiscrimination and Labor
Division, the New Jersey Division of Civil Rights, or other administrative agency asserting any claim, charge, demand, grievance, or cause of
action related to your employment relationship with NPS or the termination of that relationship.

You are not waiving your rights, if any, to unemployment insurance benefits or workers' compensation benefits, nor do you waive any
rights to indemnification under the Indemnity Agreement, attached as Exhibit D, and any other similar limitations with respect to any additional
claims or litigations. You further do not waive any rights you may have under the terms of NPS's pension or other NPS employee benefit
plans.  You also do not waive any claims or rights under the Age Discrimination in Employment Act which may arise from events occurring
after the date of this Agreement.

	No Right to Reinstatement.   You understand and agree that, in return for the consideration described herein,
you will not be eligible for future employment with the Company and that, should you apply for employment, the Company shall have no
obligation to consider you for any position.

	Nondisparagement.   You agree that you will not disparage the Company or any of its directors, officers or
employees in any manner harmful to the Company's business or business reputation. You further agree that as of the Separation Date, you
shall not represent yourself or hold yourself out as a current employee or officer of the Company, or as holding any other current position with
the Company other than as a consultant. Company agrees that it will not disparage you in any manner harmful to your reputation, provided
that Company shall not be precluded from confirming to others your separation from the Company. This paragraph will not

                                                    4

prevent you or the Company from describing your separation if required in connection with compliance filings or administrative or judicial proceedings.

	References.   The Company will provide you with a letter of reference that will include the starting and
ending dates of your employment with the Company and an explanation of the position that you held with the Company.

	Nonparticipation in Legal or Administrative Proceedings.   You covenant that you will not file, nor voluntarily
participate or assist in the prosecution of any legal or administration proceedings against the Company or any related entities and their
respective directors, officers and employees, provided that nothing in this paragraph shall prevent your participation in any such proceeding in
compliance with a summons that requires such participation. You further agreed to assist and cooperate with the Company in any legal or
administrative proceedings brought by or against the Company by any third party (including former employees of the Company) that related
to matters during your employment with the Company.

	Consequences of Violation of this Agreement.   If you breach any of the terms of this Agreement, then you
may be required to return your Severance Pay. You may also be required to pay for all costs incurred by the Company and/or any of the
Releasees as a result of your breach of this Agreement, including reasonable attorneys' fees.

	Knowing and Voluntary Agreement.   Each party hereto represents, declares, and agrees that he or it
voluntarily accepts the provisions of this Agreement for the purposes of making a full and final compromise, adjustment and settlement of all
claims herein described. You have been advised to consult an attorney and you understand the effect of signing this Agreement.

	Entire Agreement.   This Agreement, when executed, contains the entire agreement between the parties and
there are no other understandings or agreements, written or oral, between them on the subject except as expressly stated herein. The
Recitals are an integral part of this Agreement. This Agreement fully supersedes and replaces any and all prior agreements or
understandings, if any, on any matter that is addressed in this Agreement, with the exception that we agree that the Non-Disclosure and
Non-Competition Agreement remains in effect in accordance with its terms. This Agreement cannot be amended or modified except by a written
document signed by both parties to this Agreement.

	Additional Consideration.   You acknowledge that the severance benefits provided to you pursuant to this
Agreement are in addition to any sums or payments to which you would be entitled without signing this Agreement.

	Provisions Severable.   The provisions of this Agreement are severable.  Should any provision of this Agreement
be void, voidable, or unenforceable under any applicable law, such provision will not affect or invalidate any other provision of this
Agreement.

	Review and Revocation Periods.   You acknowledge and understands that you are legally entitled to, and have
been offered, a period of twenty-one (21) days (the "Consideration

                                                    5

Period") to consider the waivers and releases made by you in this
Agreement before signing it.  You further acknowledge that either the full Consideration Period has lapsed or that you have been offered such
Consideration Period but has elected to waive and forego all of the applicable days which have not yet lapsed in such Consideration Period.
This Agreement shall not become effective until seven (7) calendar days after the date of execution by you (the "Revocation
Period"). The close of business on that seventh day shall mark the expiration of the Revocation Period. During the Revocation Period,
you may revoke this Agreement by notifying the Company in writing. Upon expiration of the Revocation Period, you acknowledge that this
Agreement becomes final and binding. You also acknowledge that you have had an adequate amount of time in which to consult with any
person with respect to the contents of this Agreement prior to signing.

	Confidential Treatment.   You and NPS agree that the terms of this Agreement are confidential and will not be
disclosed to others except as required by law or as necessary to implement the terms hereof.

	Governing Law.   This Agreement will be construed, enforced and governed in all respects by the laws of the
State of New Jersey and applicable federal law.  Any legal action regarding this Agreement may be initiated or maintained only in a state or
federal court in New Jersey.

	
 

 

 _____________________________ 

Gerard J. Michel

Date: _______________________
	 	
NPS Pharmaceuticals, Inc.

 

By: _____________________________ 

Andrew Rackear

Its:Senior Vice President, Legal Affairs

and General Counsel

Date: _______________________

                                                    6

Exhibit A

                  to the

                  SEPARATION AGREEMENT

                  between

                  Gerard J. Michel

                  and

                  NPS Pharmaceuticals, Inc.

 

 

Non-Disclosure and Non-Competition Agreement

 

 

 

Exhibit B

                  to the

                  SEPARATION AGREEMENT

                  between

                  Gerard J. Michel

                  and

                  NPS Pharmaceuticals, Inc.

 

 

Termination Agreement

 

 

 

Exhibit C

                  to the

                  SEPARATION AGREEMENT

                  between

                  Gerard J. Michel

                  and

                  NPS Pharmaceuticals, Inc.

 

 

Grant Status Report

                    (reflects the 24 month acceleration)

 

 

 

Exhibit D

                  to the

                  SEPARATION AGREEMENT

                  between

                  Gerard J. Michel

                  and

                  NPS Pharmaceuticals, Inc.

 

 

Indemnity Agreement10-K 2007 Exhibit 10.33a

                                                                                    Exhibit 10.33a

NOTE: CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT AND REPLACED BY
"[*]". A COMPLETE COPY OF THIS DOCUMENT INCLUDING THE CONFIDENTIAL INFORMATION HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION. 

 

 

Commercial Manufacturing Agreement

 

 

 

NPS ALLELIX CORP.

 

 

- AND -

 

 

BOEHRINGER INGELHEIM AUSTRIA GmbH 

 

TABLE OF CONTENTS

	
              1 	
 DEFINITIONS 	
              2 
	
 	
 	
 	
 	
 
	
              2 	
 PURPOSE AND SCOPE 	
              5 
	
 	
 	
 	
 	
 
	
              3 	
 EQUIPMENT AND MATERIAL 	
 	
              6 
	
 	
         3.1 	
 Equipment 	
              6 
	
 	
 	
 3.1.1            Required Equipment 	
              6 
	
 	
 	
 3.1.2            Ownership and Rights to Possession 	
              6 
	
 	
 	
 3.1.3            Validation and Maintenance 	
              7 
	
 	
         3.2 	
 WCB and MCB 	
              7 
	
 	
 	
 3.2.1  Supply 	
              7 
	
 	
 	
 3.2.2            Ownership and Insurance 	
              7 
	
 	
 	
 3.2.3            Handling and Storage 	
              8 
	
 	
         3.3 	
 Resins, Raw Materials and Storage Containers 	
              8 
	
 	
 	
 3.3.1 Supply  	
              8 
	
 	
 	
 3.3.2            Testing and Release 	
              8 
	
 	
 	
 	
 	
 
	
              4 	
 PROCESS 	
              8 
	
 	
 	
 	
 	
 
	
              5 	
 TECHNOLOGY TRANSFER  	
              8 
	
 	
         5.1 	
 Process Transfer 	
              8 
	
 	
 	
 5.1.1  Supply of NPS documentation 	
              8 
	
 	
 	
 5.1.2      NPS Personnel 	
              9 
	
 	
   	
 5.1.3         SYNCO Visit 	
              9 
	
 	
 	
 5.1.4    BI AUSTRIA Documentation and Set-Up 	
              9 
	
 	
         5.2 	
 SMALL SCALE BATCHES 	
              9 
	
 	
         5.3 	
 FERMENTATION BATCHES 	
            10 
	
 	
         5.4 	
 IMPLEMENTATION BATCHES 	
            10 
	
 	
         5.5 	
 Method Transfer Services 	
            11 
	
 	
 	
 	
 	
 
	
              6 	
 COMMERCIAL MANUFACTURING 	
            11 
	
 	
         6.3 	
 CONFORMANCE BATCHES 	
            11 
	
 	
         6.4 	
 Long Term Commercial Manufacture of PRODUCT 	
            11 
	
 	
 	
 6.4.1 Initiation of Commercial Manufacture of PRODUCT 	
            11 
	
 	
 	
 6.4.2  Capacity 	
            12 
	
 	
 	
 	
 6.4.2.1   Reserve Capacity 	
            12 
	
 	
 	
 	
 6.4.2.2  Rolling Forecast 	
            12 
	
 	
 	
 6.4.3   Facilities 	
            12 
	
 	
 	
 6.4.4   Establishment of Price and Expected Yield 	
            13 
	
 	
 	
 6.4.5   Documentation 	
            14 
	
 	
 	
 6.4.6   Packaging/Labelling 	
            15 
	
 	
 	
 6.4.7   Release 	
            15 
	
 	
 	
 6.4.8   Shipment of PRODUCT 	
            15 
	
 	
 	
 6.4.9   Ownership and Insurance Liabilities 	
            16 
	
 	
         6.5 	
 Dispute Resolution for Failed Batches 	
            16 
	
 	
 	
 6.5.1      Confirmatory Third Party Testing/Review GMP Quality 	
            16 
	
 	
 	
 6.5.2      Replacement/Cost Reduction 	
            16 
	
 	
 	
 6.5.3      Arbitration 	
            16 
	
 	
 	
 	
 	
 
	
              7 	
 WAREHOUSING AND DISTRIBUTION 	
            16 
	
 	
         7.2 	
 Marerials 	
            17 
	
 	
 	
 7.2.1   WCB and MCB 	
            17 
	
 	
 	
 7.2.2 Raw Materials and Resins 	
            17 
	
 	
 	
 7.2.3 PRODUCT 	
            17 
	
 	
 	
 	
 	
 
	
              8 	
 QUALITY CONTROL AND MANAGEMENT 	
            17 
	
 	
         8.1 	
 Separate Quality Agreement 	
            17 
	
 	
         8.2 	
 Validation Services 	
            18 
	
 	
 	
 8.2.1   Validation Plan 	
            18 
	
 	
 	
 8.2.2   System 	
            18 
	
 	
 	
 8.2.3   Process 	
            18 
	
 	
 	
 8.2.4   Test Methods 	
            18 
	
 	
         8.3 	
 SOPs 	
            18 
	
 	
         8.4 	
 Quality Control 	
            19 
	
 	
         8.5 	
 Quality Management 	
            19 
	
 	
 	
 	
 	
 
	
              9 	
 TIMETABLE 	
            20 
	
 	
 	
 	
 	
 
	
           10 	
 ORGANIZATIONAL RESPONSIBILITIES 	
            20 
	
 	
       10.1 	
 Responsible Personnel 	
            20 
	
 	
       10.2 	
 Project Management, Meetings and Planning 	
            20 
	
 	
       10.3 	
 NPS' Attendance and Input 	
            21 
	
 	
   	
 	
 	
 
	
           11 	
 FEES AND PAYMENTS 	
            22 
	
 	
       11.1 	
 Reservation Fee 	
            22 
	
 	
       11.2 	
 Fees for Technology Transfer and Conformance Batches 	
            23 
	
 	
       11.3 	
 Commercial Manufacturing Fees 	
            23 
	
 	
       11.4 	
 Warehousing Fees 	
            23 
	
 	
       11.5 	
 Raw Materials, Resins and Storage Containers 	
            23 
	
 	
       11.6 	
 Regulatory Filings 	
            23 
	
 	
       11.7 	
 Payments 	
            23 
	
 	
 	
 	
 	
 
	
           12 	
 REGULATORY COMPLIANCE 	
            23 
	
 	
       12.1 	
 General 	
            23 
	
 	
       12.2 	
 Inspections and Audits  	
            24 
	
 	
 	
 12.2.1   Pre-Approval and Manufacturing Audits 	
            24 
	
 	
 	
 12.2.2  Pre-Approval and Manufacturing Regulatory Inspections 	
            24 
	
 	
 	
 12.2.3    483 Citations and Warning Letters 	
            25 
	
 	
       12.3 	
 Regulatory Filings 	
            25 
	
 	
 	
 	
 	
 
	
           13 	
 INTELLECTUAL PROPERTY 	
            25 
	
 	
       13.1 	
 Ownership 	
            25 
	
 	
       13.2 	
 Prosecution 	
            26 
	
 	
 	
 	
 	
 
	
           14 	
 LEGAL PROCEEDINGS 	
            26 
	
 	
       14.1 	
 Infringement of Third Parties' Patents, Product Liability and Indemnification 	
            26 
	
 	
 	
 	
 	
 
	
           15 	
 INSURANCE 	
            27 
	
 	
 	
 	
 	
 
	
           16 	
 CONFIDENTIAL INFORMATION 	
            27 
	
 	
 	
 	
 	
 
	
           17 	
  REPRESENTATIONS AND WARRANTIES 	
            28 
	
 	
 	
 	
 	
 
	
           18 	
 TERM AND TERMINATION 	
            28 
	
 	
       18.1 	
 Term 	
            28 
	
 	
       18.2 	
 Termination 	
            29 
	
 	
       18.3 	
 Mitigation 	
            30 
	
 	
       18.4 	
 Effect of Termination 	
            30 
	
 	
 	
 	
 	
 
	
           19 	
 MISCELLANEOUS 	
            31 
	
 	
       19.1 	
 Non-Competition 	
            31 
	
 	
       19.2 	
 Knowledge Sharing with NPS 	
            32 
	
 	
       19.3 	
 Governing Law and Arbitration 	
            32 
	
 	
       19.4 	
 Waiver 	
            32 
	
 	
       19.5 	
 Force Majeure 	
            32 
	
 	
       19.6 	
 Severability 	
            33 
	
 	
       19.7 	
 Notice 	
            33 
	
 	
       19.8 	
 Assignment and Enurement 	
            34 
	
 	
       19.9 	
 Language 	
            34 
	
 	
    19.10 	
 Integration 	
            34 
	
 	
    19.11 	
 Publicity 	
            34 

COMMERCIAL MANUFACTURING AGREEMENT

 

B E T W E E N:

 

NPS ALLELIX CORP.

an Ontario corporation, having an address at 6850 Goreway Drive, 

Mississauga, Ontario, Canada L4V 1V7

("NPS")

 

- and -

 

BOEHRINGER INGELHEIM AUSTRIA GmbH 

a corporation of the Federal Republic of Austria, having an address at 

Dr. Boehringer-Gasse 5 - 11, A-1121 Vienna, Austria

("BI AUSTRIA")

 

This AGREEMENT is effective this 18th day of OCTOBER, 2002 (the "EFFECTIVE DATE").

WHEREAS NPS has developed the proprietary product ALX1-11 (also known as PREOSTM), for which the active ingredient is recombinant
human parathyroid hormone eighty-four (84) amino acids ("rhPTH"), and the proprietary process to manufacture rhPTH and NPS is currently
sponsoring Phase III Clinical Trials for osteoporosis with ALX1-11; and

WHEREAS NPS is currently producing rhPTH under contract at Synco BioPartners B.V. at Paasheuvelweg 30, 1105 BJ Amsterdam
Zuidoost, the Netherlands ("SYNCO") to be used in the Clinical Trials and early commercial launch of ALX1-11; and

WHEREAS NPS expects to file a New Drug Application (NDA) for the approval for marketing and sale of ALX1-11 in the U.S. (and similar
marketing approvals in Europe and elsewhere) and requires quantities of PRODUCT (rhPTH in bulk form as defined below) for formulating into finished
drug product for commercial sale targeted to begin in 2005; and

WHEREAS BI AUSTRIA manufactures recombinant pharmaceutical proteins under GMP conditions for commercial sale for use in human in the U.S.,
Europe and elsewhere; and

WHEREAS BI AUSTRIA desires to manufacture PRODUCT for NPS in accordance with NPS' requirements in order to facilitate NPS' supply of
commercial PRODUCT and NPS is desirous of having BI AUSTRIA manufacture PRODUCT for formulating and finishing into ALX1-11 for commercial
sale; and

WHEREAS BI AUSTRIA and NPS signed a Letter of Intent dated April 11, 2002 setting out the technology transfer and agreed upon
processes for the commercial manufacture of PRODUCT so that BI AUSTRIA and NPS can initiate the technology transfer and begin incurring costs for
the commercial manufacture of PRODUCT prior to the execution of this Commercial Manufacturing Agreement and said Letter of Intent has been
amended extending its expiration date, with the most recent amendment dated August 30, 2002; and

WHEREAS NPS and BI AUSTRIA have executed a certain Confidential Disclosure Agreement dated May 7, 2001 intended to cover the
discussions leading to and under the Letter of Intent as amended and this Commercial Manufacturing Agreement;

NOW THEREFORE in consideration of the foregoing premises, the mutual covenants and obligations hereinafter contained, and other good and
valuable consideration, receipt and sufficiency of which is hereby acknowledged, THE PARTIES AGREE AS FOLLOWS:

1.    DEFINITIONS

1.1.    AFFILIATE means any entity that directly or indirectly owns, is owned by, or is under common ownership with, NPS or BI AUSTRIA, where "own" or
"ownership" means possession or control of at least 50% of the outstanding voting securities of a corporation or a comparable equity interest in any other
type of entity.

1.2.    AGREEMENT means this Commercial Manufacturing Agreement herein.

1.3.    ASSUMED YIELD means the expected YIELD of [*] per BATCH as of the EFFECTIVE DATE. 

1.4.    BATCH means PRODUCT produced from one fermentation and purification run using a [*] working volume fermenter.

1.5.    BATCH PRODUCTION RECORD ("BPR") means the complete written record of the history of the BATCH and its production thereof as
required under GMP and in accordance with the MASTER BATCH RECORD.

1.6.    COMMERCIAL BATCH means a BATCH intended for clinical use or market supply.

1.7.    CONFIDENTIAL INFORMATION means any information disclosed to, or developed by either PARTY, or an AFFILIATE or agent of either PARTY,
which is confidential in accordance with paragraph 16, which information includes, but is not limited to: WCB; MCB; the processes and methods employed
in the manufacture of PRODUCT; BATCH PRODUCTION RECORDS, SPECIFICATIONS; information related to the facilities at BI AUSTRIA; information
related to recombinant production processes or to any products produced at the BI AUSTRIA facilities; any prices and costs of BI AUSTRIA; regulatory
filings for the PRODUCT; NPS' and BI AUSTRIA's manufacturing, business and regulatory plans and strategies; and other data and information
designated as confidential.

1.8.    Conformance Batches means three (3) BATCHES to carry out the process validation and which will form part of regulatory submissions.

1.9.    DATE AVAILABLE FOR DELIVERY means the date on which NPS requests that PRODUCT (in grams) be available for shipment. 

1.10.    EMEA means the European Medicines Evaluation Agency or any successor agency having similar jurisdiction.

                                                    2

1.11.    EUROPEAN GMP means current Good Manufacturing Practices pursuant to (a) EEC Directive 91/356/EEC of 13 June 1991, (b) the EC Guide to
Good Manufacturing Practice for Medicinal Products, (c) relevant current International Conference on Harmonisation (ICH) guidance documents, in
particular ICH Guidance Q7A Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients and (d) any applicable European laws,
regulations or respective guidance documents subsequently established.

1.12.    FDA means the United States Food and Drug Administration or any successor agency having similar jurisdiction.

1.13.    FDA GMP means current Good Manufacturing Practices pursuant to (a) the U.S. Federal Food, Drug and Cosmetics Act as amended (21 USC 301
et seq.), (b) relevant U.S. regulations found in Title 21 of the U.S. Code of Federal Regulations (including Parts 11, 210, and 211), (c) relevant
current International Conference on Harmonisation (ICH) guidance documents, in particular ICH Guidance Q7A Good Manufacturing Practice Guide for
Active Pharmaceutical Ingredients and (d) any applicable U.S. laws, regulations or respective guidance documents subsequently established.

1.14.    FERMENTATION BATCH means PRODUCT produced using NPS' proprietary WCB/MCB and NPS' proprietary fermentation process from [*]
fermentation run using a [*] working volume fermenter. 

1.15.    FINAL RELEASE means NPS' release of a BATCH for formulating into drug product pursuant to the PRODUCT SPECIFICATIONS and GMP.

1.16.    GMP means current Good Manufacturing Practices pursuant to FDA GMP and EUROPEAN GMP.

1.17.    Implementation Batches mean at least the first three (3) BATCHES of PRODUCT produced by BI AUSTRIA in a [*] working volume fermenter as
provided in paragraph 5.4. 

1.18.    INTELLECTUAL PROPERTY means patents, trade secrets, trade marks, service marks, registered designs, lab notebooks, applications for any of
the foregoing, trade and business names, unregistered trade marks and service marks, copyrights, rights in designs, inventions, know-how, rights under
licenses, consents, orders, statutes or otherwise in relation to any such rights, and rights of the same or similar effect or nature, in any part of the
world.

1.19.    MANUFACTURER RELEASE means BI AUSTRIA's release of a BATCH for further processing.

1.20.    MASTER BATCH RECORD means the master production instructions for manufacture of a BATCH.

1.21.    MCB means NPS' master cell bank containing the host cell (with the plasmid incorporated therein) for fermentation of the PRODUCT.  The MCB is
used to generate the WCB.

1.22.    METHOD TRANSFER SERVICES mean services provided by BI AUSTRIA in accordance with paragraph 5.5. 

1.23.    NDA means a new drug application in the U.S. FDA.

                                                    3

1.24.    PARTY and PARTIES means NPS or BI AUSTRIA, or both, as applicable. 

1.25.    PRODUCT means purified bulk recombinant human parathyroid hormone (1-84) produced using NPS' proprietary WCB/MCB and NPS' proprietary
process.

1.26.    PRODUCT SPECIFICATIONS means the SPECIFICATIONS which are attached at Exhibit F.

1.27.    QUALITY AGREEMENT means the agreement on all quality procedures and aspects related to the PRODUCT and which will be negotiated and
executed by the PARTIES. 

1.28.    RAW MATERIAL means materials, reagents and solvents needed for the production of PRODUCT.

1.29.    RAW MATERIAL SPECIFICATIONS means SPECIFICATIONS for RAW MATERIALS.

1.30.    RESERVE CAPACITY means the maximum quantity of PRODUCT NPS can request from BI AUSTRIA in a given year based on a maximum number
of BATCHES, subject to agreement otherwise by the PARTIES, as provided for in paragraph 6.4.2.1.

1.31.    Small Scale Batches means the production of PRODUCT in [*] working volume fermentation batches pursuant to paragraph 5.2.

1.32.    SOPs mean written standard operating procedures established, or to be established, by BI AUSTRIA and employed in the production, Quality
Control, quality assurance, warehousing and labelling and packaging, among other things.

1.33.    SPECIFICATIONS means tests, references to analytical procedures, appropriate acceptance criteria that are numerical limits, ranges or other criteria
for which the RAW MATERIALS, PRODUCT, intermediates, or process of making the PRODUCT, must conform to in order for the PRODUCT to be
acceptable for its intended use.  Types of SPECIFICATIONS include but are not limited to PRODUCT SPECIFICATIONS, MASTER BATCH RECORD,
RAW MATERIAL SPECIFICATIONS and in-process SPECIFICATIONS.

1.34.    STABILITY STUDIES mean all studies necessary to assess the stability characteristics of PRODUCT which shall be used in determining appropriate
storage conditions and expiration dates.

1.35.    VALIDATION means documented evidence which provides a high degree of assurance that a specific process, activity, piece of equipment, SOP or
other component required or used in the manufacture of PRODUCT will consistently meet its pre-determined and expected results.

1.36.    VALIDATION SERVICES means any VALIDATION services required of BI AUSTRIA in the manufacture of PRODUCT.

1.37.    WCB means NPS' working cell bank containing the host cell (with the plasmid incorporated therein) for fermentation of the PRODUCT.  The WCB is
generated from MCB. 

1.38.    YIELD means grams of PRODUCT produced per BATCH.

                                                    4

2.    PURPOSE AND SCOPE

2.1.    This AGREEMENT is intended to provide the structure under which the long-term commercial manufacturing of PRODUCT by BI AUSTRIA for NPS
shall be conducted including the technology transfer to BI AUSTRIA from NPS and NPS' contracted third party SYNCO.

2.2.    Each of the PARTIES will in good faith and in accordance with the project timelines as set out in Exhibit D initiate and complete the process of
technology transfer and the negotiation, documentation, and execution of a QUALITY AGREEMENT prior to the initiation of COMMERCIAL BATCHES
covering quality expectations, performance standards, testing, SOPs, and release aspects for the PRODUCT.

2.3.    The PARTIES expect to use a team approach and NPS expects fully to support the technology transfer effort and to benefit from any gain in YIELD
and reduction in associated costs of production of PRODUCT experienced over time during the technology transfer phase and the  commercial production
that differs from current expectations.  Likewise, BI AUSTRIA expects to receive strong predictable and viable revenues over time for a set and
reasonable percentage of its production capacity at its Vienna, Austria production facility.

2.4.    Based on the current production at SYNCO, the PARTIES have assumed the process to manufacture PRODUCT at BI AUSTRIA shall be successful
as contemplated in this paragraph 2.4.  In particular, based on the [*] working volume batch process at SYNCO with: fermentation expression rate of
about [*] fermentation broth; overall yield from a batch of approximately [*] of PRODUCT (wherein one fermentation batch translates into one purification
batch); the PARTIES have assumed that BI AUSTRIA can scale this current process up to a [*] working volume batch scale with an overall yield
of approximately [*] of PRODUCT.  A [*] yield of purified bulk and the current contemplated costs and cost structure at BI AUSTRIA form the basis for the
calculations in the Sliding Prices, Exhibit E.  Final pricing will be established based on average and repetitive YIELD data early in the life of commercial
production and so that the PARTIES will share the benefits or burdens arising from greater or lesser YIELDS, respectively.

2.5.    Exhibits that are attached hereto are incorporated in, and are deemed to be an integral part, of this AGREEMENT.  Exhibits may be amended and
additional exhibits may be added from time to time after execution of this AGREEMENT.  At the time of execution of this AGREEMENT the Exhibits are:

Exhibit A:  Process Flow Diagram 

   Exhibit B:  List of Manufacturing Documents Used at SYNCO 

   Exhibit C:  Rolling Forecast Model 

   Exhibit D:  Timetable and Payment Schedule for Technology Transfer 

   Exhibit E:  Price Calculations and Sliding Price Model 

   Exhibit F:  PRODUCT SPECIFICATIONS 

   Exhibit G:  Critical Raw Materials and Storage Containers 

   Exhibit H:  Documents BI AUSTRIA will provide in English 

   Exhibit I:  Description of facilities for PTH production and testing 

   Exhibit J:  Documents to be reviewed and approved by NPS 

2.6.    The Letter of Intent is deemed to be merged with the AGREEMENT.

                                                    5

3.    EQUIPMENT AND MATERIAL

3.1.    EQUIPMENT

3.1.1.    Required Equipment

3.1.1.1.    NPS shall pay for the following equipment, which equipment will be the property of BI AUSTRIA.  NPS and BI AUSTRIA will co-operate, as
appropriate, in exploring and identifying the best possible supplier of the equipment.  This equipment will only be used for production of PRODUCT during
technology transfer and COMMERCIAL BATCHES in accordance with this AGREEMENT.

Chromatographic Columns

	
STEP
	
COLUMN SIZE [mm][*]

	
[*]
	
[*]

	
[*]
	
[*]

	
[*]
	
[*]

	
[*]
	
[*]

	
[*]
	
[*]

3.1.1.2.    If other equipment is needed specifically for the production or Quality Control of PRODUCT, NPS shall pay for such equipment and BI AUSTRIA shall
own such equipment, which equipment BI AUSTRIA will not use in the production or Quality Control of other products.

3.1..1.3    If any additional equipment is used in the production of PRODUCT, including Quality Control, under this AGREEMENT or the QUALITY
AGREEMENT, other than as specified in paragraph 3.1.1.1 and 3.1.1.2, BI AUSTRIA shall be responsible for purchasing, obtaining, validating, calibrating
and implementing such equipment and BI AUSTRIA shall own such equipment.

3.1.2.    Ownership and Rights to Possession

3.1.2.1.    BI AUSTRIA shall own the equipment purchased by NPS pursuant to paragraphs 3.1.1.1 and 3.1.1.2.  However, NPS has the right for 1.00 Euro on
30 days advance notice and without other obligation or performance, to purchase, take possession of, and remove from BI AUSTRIA any or all of the
equipment that NPS originally purchases in circumstances such as: termination of manufacturing of the PRODUCT by BI AUSTRIA; termination of this
AGREEMENT; or winding up of BI AUSTRIA's biopharmaceutical production.

3.1.3.    Validation and Maintenance

3.1.3.1.    BI AUSTRIA shall be responsible for setting-up, calibrating, cleaning, qualifying, and maintaining all equipment required in the production of
PRODUCT.  NPS shall pay BI AUSTRIA the costs for qualification of the PRODUCT-specific equipment.

3.1.3.2.    BI AUSTRIA is entitled to charge to NPS a one-time surcharge of [*] percent ([*]%) of the purchase price of PRODUCT-dedicated equipment
described above in paragraphs 3.1.1.1 and 3.1.1.2 for purchasing, installing, calibrating, insuring and maintaining such PRODUCT-dedicated equipment
during the term of the AGREEMENT.  BI AUSTRIA shall be solely responsible for (a) reasonably maintaining the PRODUCT-dedicated equipment, (b)
repairing the PRODUCT-dedicated equipment as a result of ordinary and intended use of such equipment for the purposes of this AGREEMENT, and (c)
insuring against loss of such PRODUCT-dedicated equipment.  In the event that despite all reasonable maintenance and ordinary and intended use of
such PRODUCT-dedicated equipment an irreparable damage occurs, it will be NPS' responsibility to replace such PRODUCT-dedicated equipment;
provided, however, that BI AUSTRIA shall be solely responsible for costs to replace or repair any PRODUCT-dedicated equipment that is damaged due
to (x) any abnormal or unintended uses of such equipment, (y) any accident, fire, flood or other incident for which BI AUSTRIA's insurance is intended to
cover, or (z) the failure to reasonably maintain the PRODUCT-dedicated equipment.

3.2.    WCB AND MCB

3.2.1.     Supply

3.2.1.1.     Unless otherwise agreed to by the PARTIES, NPS shall provide the MCB and WCB to be used in production of the PRODUCT by BI AUSTRIA
in sufficient quantities and on a timely basis for the scheduled production of PRODUCT at BI AUSTRIA.

3.2.1.2.     BI AUSTRIA shall conduct incoming tests for viability, identity, plasmid retention and purity to confirm that the MCB/WCB is satisfactory for
the manufacture of PRODUCT.  BI AUSTRIA will notify NPS if the MCB/WCB is not satisfactory according to the incoming tests and can not be used for
the manufacture of PRODUCT.  BI AUSTRIA will maintain records of usage of the MCB/WCB and will inform NPS of needs for additional quantities or
changes in characteristics thereof in a timely manner for use in any subsequent production.

3.2.1.3.     BI AUSTRIA shall describe and conduct appropriate STABILITY STUDIES on the WCB, as required and as agreed to by the PARTIES in accordance
with a separate stability protocol and cost proposal which will form Exhibits to this AGREEMENT.

3.2.2.    Ownership and Insurance

3.2.2.1.     NPS holds all the INTELLECTUAL PROPERTY rights to the WCB and the MCB except for the limited license granted to BI AUSTRIA hereunder for
the purposes hereof.  For greater clarity, BI AUSTRIA acquires hereunder no ownership, license or security interest rights in the WCB or MCB beyond the
limited use license granted for production of PRODUCT under this AGREEMENT. All INTELLECTUAL PROPERTY rights relative to the WCB and the
MCB or their use are and remain the exclusive rights of NPS.

3.2.2.2.     BI AUSTRIA shall not transfer the WCB or MCB to any third party without the prior written permission of NPS and any unused
quantities at the termination of the AGREEMENT shall be destroyed or returned to NPS at NPS' direction.

3.2.2.3.     NPS shall maintain the appropriate insurance on the WCB and MCB whether or not it is stored at BI AUSTRIA.

                                                    7

3.2.3.     Handling and Storage

3.2.3.1.     BI AUSTRIA shall be responsible for handling and storage of the WCB provided by NPS and the MCB if the PARTIES agree to store the MCB at BI
AUSTRIA.

3.3.     RESINS, RAW MATERIALS AND STORAGE CONTAINERS

3.3.1.      Supply

3.3.1.1.      BI AUSTRIA shall purchase all RAW MATERIALS, resins and storage containers required for the manufacture and storage of PRODUCT unless
otherwise agreed to by the PARTIES.

3.3.1.2.      It is acknowledged that BI AUSTRIA has established and qualified suppliers for resins and RAW MATERIALS and the PARTIES shall mutually agree
on the SPECIFICATIONS and supplier for each RAW MATERIAL.  For RAW MATERIALS, such as [*], and for storage containers which NPS considers
critical BI AUSTRIA is willing to accept NPS' proposed supplier and SPECIFICATIONS.  The RAW MATERIALS and storage containers NPS considers
critical are set out in Exhibit G attached.

3.3.2.      Testing and Release

3.3.2.1    BI AUSTRIA will ensure suppliers of RAW MATERIALS and resins have Vendor Qualification in accordance with GMP or
conduct standard pharmacopoeia methods or other appropriate methods for release of RAW MATERIALS.  Such methods shall be documented and
utilised by BI AUSTRIA, as required.  For RAW MATERIALS and storage containers which NPS considers critical, NPS and BI AUSTRIA will agree to
appropriate methods for release testing.  If NPS' requests, or if validation is required, BI AUSTRIA shall validate and NPS shall pay for such services in
accordance with paragraph 11.2.  

3.3.2.2    The PARTIES shall agree on the methods for handling, cleaning and storing the storage containers and BI AUSTRIA shall document and
validate such methods. 

4.    PROCESS

4.1.     NPS shall provide BI AUSTRIA with NPS' proprietary process for manufacturing PRODUCT which BI AUSTRIA will implement and validate in
accordance with the SPECIFICATIONS, in particular the MASTER BATCH RECORD, and GMP.  The overall process is described in Exhibit A.

5.    TECHNOLOGY TRANSFER

5.1.     PROCESS TRANSFER

5.1.1.     Supply of NPS Documentation

                                                    8

5.1.1.1.     NPS shall supply copies of documentation and records currently being used for the [*] scale process at SYNCO, including Component Production
Records, SYNCO Batch Production Records, SYNCO Raw Material Specifications, SYNCO Analytical Methods, SYNCO
Validation documentation, SYNCO Standard Operating Procedures and any other available production data/research data/quality data as
needed to support the process transfer.  Attached hereto as Exhibit B is a list of the main documents used in the manufacture of PRODUCT at
SYNCO.

5.1.1.2.     NPS shall work with BI AUSTRIA to ensure that all necessary documentation, data, methods, and information has been provided to
BI AUSTRIA in order that BI AUSTRIA will be in a position to complete the Technology Transfer in accordance with the timetable set out in
Exhibit D and initiate and maintain commercial manufacture of PRODUCT as set out in the  AGREEMENT.

5.1.2.     NPS Personnel

5.1.2.1.     NPS shall use good faith reasonable commercial efforts to make NPS personnel available to BI AUSTRIA as needed during the Technology Transfer
phase and commercial phase. It is expected that NPS personnel will be available and present as needed during the process transfer, SMALL SCALE
BATCHES and CONFORMANCE BATCHES.

5.1.3.     SYNCO Visit

5.1.3.1.     NPS will endeavour to arrange a visit to SYNCO and both NPS and BI AUSTRIA personnel will attend, including without limitation, the project
manager of each of NPS and BI AUSTRIA, with the intention to view the production and/or production facilities of PRODUCT at SYNCO.  At
NPS' reasonable request, BI AUSTRIA will execute an appropriate and reasonable confidential disclosure agreement with SYNCO.

5.1.4.     BI AUSTRIA Documentation and Set-Up

5.1.4.1.     BI AUSTRIA shall study the relevant documentation necessary to set-up and run the Small Scale Batches, Implementation Batches,
Conformance Batches and further COMMERCIAL BATCHES of PRODUCT, including without limitation the documentation provided by NPS pursuant to
paragraph 5.1.1.

5.1.4.2.     BI AUSTRIA shall draft all necessary documentation, including SPECIFICATIONS, MASTER BATCH RECORD and SOPs, based on the
documentation supplied by NPS and GMP.  The documentation listed in Exhibit J shall be reviewed, approved, and supplied to NPS.  Any additional
documentation generated by BI AUSTRIA under this AGREEMENT shall be reviewed, approved, and supplied to NPS, as the PARTIES may
agree.

5.2.     SMALL SCALE BATCHES

5.2.1.     BI AUSTRIA will produce at least [*] working volume batches in the BI AUSTRIA Process Engineering Suite.1

__________________

1The Process Engineering Suite is an area with no official room classification according to Federal Standard 209.  However, there are HEPA
filters and an installed HVAC system to provide continuous air quality and controlled airflow.  There is controlled access for
material and personnel and gowning procedures for personnel.

                                                    9

5.2.2.     BI AUSTRIA shall purify the SMALL SCALE BATCHES in accordance with procedures agreed upon by the PARTIES.

5.2.3.     BI AUSTRIA and NPS shall conduct drug substance release testing on the purified SMALL SCALE BATCHES.  The release testing shall be
conducted in accordance with the PRODUCT SPECIFICATIONS.

5.2.4.     The PARTIES shall consider the yield and purity of the SMALL SCALE BATCHES and if the SMALL SCALE BATCHES do not meet the specified
purity standards or the expected yields based on the PRODUCT SPECIFICATIONS, the PARTIES will come to an agreement on steps forward.

5.2.5.     The PRODUCT from the SMALL SCALE BATCHES shall not be used in humans.

5.3.     FERMENTATION BATCHES

5.3.1.     BI AUSTRIA shall produce [*] FERMENTATION BATCHES following acceptance by NPS of the SMALL SCALE BATCHES, unless otherwise agreed
to by the PARTIES.  These [*] FERMENTATION BATCHES will undergo QC testing according to an agreed upon sampling plan (which will include yield
determinations), collection of cleaning data (change over) and batch documentation.  The PARTIES shall consider the yield of the FERMENTATION
BATCHES and if the yields are not as expected based on the assumptions made pursuant to paragraph 2.4, the PARTIES will come to an agreement on
steps forward.

5.4.     IMPLEMENTATION BATCHES

5.4.1.     BI AUSTRIA will produce [*] working volume IMPLEMENTATION BATCHES, unless otherwise agreed to by the PARTIES.  BI AUSTRIA shall initiate
production of the IMPLEMENTATION BATCHES in accordance with the timeline (Exhibit D) following production of the FERMENTATION BATCHES,
unless otherwise agreed to by the PARTIES.

5.4.2.     The IMPLEMENTATION BATCHES shall be produced in the GMP production units at BI AUSTRIA to ensure the technical equipment is qualified with
respect to the specific requirements for the commercial manufacture of PRODUCT.

5.4.3.     BI AUSTRIA shall purify each IMPLEMENTATION BATCH in accordance with the process description which shall be established in a draft MASTER
BATCH RECORD, to be agreed on by the PARTIES.

5.4.4.     BI AUSTRIA shall conduct in-process control testing, on each manufacture run of the IMPLEMENTATION BATCHES for methods which
have been transferred to BI AUSTRIA in accordance with the MASTER BATCH RECORD/ SPECIFICATIONS, unless otherwise agreed to by the
PARTIES.

5.4.5.     BI AUSTRIA shall also conduct release testing of the IMPLEMENTATION BATCHES in accordance with the PRODUCT SPECIFICATIONS and shall
provide NPS with the BATCH PRODUCTION RECORDS for each of the IMPLEMENTATION BATCHES.

5.4.6.     The PARTIES shall consider the yield and purity of the IMPLEMENTATION BATCHES and if the IMPLEMENTATION BATCHES do not meet the
expected purity standards or expected yields based on the PRODUCT SPECIFICATIONS the PARTIES will come to an agreement on steps forward.

5.4.7.     The PRODUCT from the IMPLEMENTATION BATCHES shall not be used in humans.

                                                    10

5.5.     METHOD TRANSFER SERVICES

5.5.1.     BI AUSTRIA shall provide to NPS appropriate METHOD TRANSFER SERVICES as agreed to by the PARTIES in separate written protocols
including documentation and implementation of analytical methods for in-process and bulk testing.  Costs for such services will be addressed in the
separate written proposals.  The METHOD TRANSFER SERVICES and associated costs will be attached hereto as an Exhibit to be added to the
AGREEMENT and will form an integral part of this AGREEMENT.

6.    COMMERCIAL MANUFACTURING

6.1.     All PRODUCT manufactured by BI AUSTRIA and supplied to NPS, or to NPS' representatives, agents or formulation contract manufacturers, for
clinical use or for market supply, shall be manufactured, released, stored and delivered in accordance with the SPECIFICATIONS (in particular, the
PRODUCT SPECIFICATIONS and the MASTER BATCH RECORDS), QUALITY AGREEMENT and GMP and all applicable laws, regulations and
ordinances as required in the jurisdiction.  Following completion of process VALIDATION, all PRODUCT manufactured by BI AUSTRIA for clinical use or
market supply shall be suitable for formulation into final drug product to be used in humans.

6.2.     Details of the MANUFACTURER RELEASE, Quality Assurance (also called Quality Management), Quality Control, Validation, Inspections, Audits
and other Regulatory requirements shall be detailed in the QUALITY AGREEMENT.  The manufacture of PRODUCT shall be carried out in BATCHES as
defined herein.

6.3.     CONFORMANCE BATCHES

6.3.1.     BI AUSTRIA shall manufacture CONFORMANCE BATCHES which shall be at least [*] BATCHES, in accordance with the timeline (Exhibit D) unless
otherwise agreed to by the PARTIES.

6.3.2.     The PRODUCT produced in the CONFORMANCE BATCHES is intended for clinical use or market supply by NPS for use in humans.

6.3.3.     Each CONFORMANCE BATCH shall undergo in-process control testing, Quality Control and testing according to the PRODUCT SPECIFICATIONS
using the validated methods.  NPS will conduct any release testing for which methods are not transferred to BI AUSTRIA.  If the CONFORMANCE
BATCHES do not meet PRODUCT SPECIFICATIONS, the PARTIES will come to an agreement on steps forward.  The CONFORMANCE BATCHES will
be documented in the BATCH PRODUCTION RECORDS.

6.4.     LONG TERM COMMERCIAL MANUFACTURE OF PRODUCT

6.4.1.     Initiation of Commercial Manufacture of PRODUCT

6.4.1.1.     If possible, and as agreed to by NPS, BI AUSTRIA shall manufacture PRODUCT beginning no later than the first quarter of 2004 for commercial sale
by NPS or NPS authorised agents, which commercial sale is currently planned to commence on or about the second quarter of 2005.

                                                    11

6.4.2.     Capacity

6.4.2.1.     RESERVE CAPACITY

6.4.2.1.1.     The RESERVE CAPACITY as of the EFFECTIVE DATE is approximately [*] based on [*] COMMERCIAL BATCHES (assuming each BATCH yields
[*] annually beginning in 2005.  However, NPS understands that BI AUSTRIA is only prepared to commit to [*] COMMERCIAL BATCHES in 2004; hence,
the RESERVE CAPACITY in 2004 is approximately [*] based on [*] COMMERCIAL BATCHES (assuming each BATCH yields [*]).

6.4.2.1.2.     On or before January 1, 2005, NPS wishes to have the option of changing the RESERVE CAPACITY which change will be effective January 1, 2007.
Hence, by request from NPS to BI AUSTRIA, which request shall be made by September 1, 2004, NPS and BI AUSTRIA shall endeavour to come to a
mutual agreement on a new RESERVE CAPACITY and associated Rolling Forecast in an amount not greater than [*]COMMERCIAL BATCHES annually
and not less than [*] COMMERCIAL BATCHES annually, which will be effective January 1, 2007.  At any time prior to January 1, 2005, if the  possibility
arises that BI AUSTRIA will not be able to provide up to [*] COMMERCIAL BATCHES annually beginning in 2007, BI AUSTRIA shall warn NPS and at
NPS' request NPS and BI AUSTRIA shall in good faith negotiate on or before January 1, 2005 to be effective on or before January 1, 2007 for any
desired increase in capacity up to the maximum [*] COMMERCIAL BATCHES annually.  Notwithstanding the Rolling Forecast provisions herein, the
mutually agreed to new RESERVE CAPACITY will be effective on January 1, 2007 and the Rolling Forecast will be amended accordingly effective
January 1, 2007.

6.4.2.2     Rolling Forecast

6.4.2.2.1.     The details and timeline for the commercial manufacture of PRODUCT shall be done in accordance with the Rolling Forecast (Exhibit C) and Sliding
Price Model (Exhibit E).

6.4.2.2.2.     The first three-year forecast is to be submitted to BI AUSTRIA by NPS within a calendar month of the signing of this AGREEMENT for 2004-2006
with forecasting to then be provided by NPS on a quarterly basis beginning on January 1, 2003 as set out in Exhibit C.

6.4.3.     Facilities

6.4.3.1.     BI AUSTRIA will be manufacturing PRODUCT on a BATCH basis at its facilities at Dr. Boehringer-Gasse 5 - 11, A-1121 Vienna, Austria, which are
operated and maintained under GMP conditions.  A description of the facilities showing the areas and equipment designated for manufacture of
PRODUCT are set out in Exhibit I attached.

6.4.3.2.     BI AUSTRIA's facilities will have, and BI AUSTRIA will continuously maintain, all required authorisations and permits necessary for the manufacture
of PRODUCT for commercial sale for use in humans, as more particularly detailed in paragraph 12.1.

6.4.3.3.     For said facilities, BI AUSTRIA has established, or will establish as necessary, GMP compliant rules concerning clothing, hygiene, restrictions in
movement, safety, and observations of SOPS.

                                                    12

6.4.4.     Establishment of Price and Expected YIELD

6.4.4.1.     The current predicted production of PRODUCT at BI AUSTRIA together with the costing is based on certain mutual assumptions (see Exhibit E).  The
PARTIES understand that once the production process for the PRODUCT is fully transferred to BI AUSTRIA, BI AUSTRIA and NPS will be able to
confirm whether or not the assumptions made for cost, capacity and resources needed were accurate and whether any price adjustment is required for
the IMPLEMENTATION BATCHES, the CONFORMANCE BATCHES and COMMERCIAL BATCHES.  Price adjustments and the basis for them will be
mutually agreed to. Based on the assumptions currently in place, the price per BATCH is readily computable and is, for example, [*] Euros ([*] Euros per
gram x [*] grams) based on a [*] BATCH annual order and a [*] BATCH RESERVE CAPACITY.

6.4.4.2.     NPS shall pay for PRODUCT on a Euro/gram basis using two computations: 1.  2004:  The 2004 Payable Price per gram for all 2004
delivered COMMERCIAL BATCHES; and 2.  2005 and Beyond:  The Annual Payable Price per gram.  These computations are set out
below in paragraphs 6.4.4.2.1 and 6.4.4.2.2.

6.4.4.2.1.     2004:  The 2004 Payable Price per gram for all 2004 delivered COMMERCIAL BATCHES

The Payable Price per gram for all grams of PRODUCT delivered prior to year end 2004:

shall be computed from the first [*] COMMERCIAL BATCHES produced before year end 2004 (assumed to be at least [*] CONFORMANCE
BATCHES as provided in paragraph 6.4.1 and not greater than [*] COMMERCIAL BATCHES for a total of [*]COMMERCIAL BATCHES) and 

shall be computed on the basis of Payable Price per gram of PRODUCT as follows:

Payable Price per gram is computed as the total attributable cost for said first [*] COMMERCIAL BATCHES divided by the total grams of PRODUCT
delivered by BI AUSTRIA from said first [*] COMMERCIAL BATCHES; 

where the "total attributable cost" is determined in the manner reflected in paragraph 6.4.4.1 and Exhibit E.

Notwithstanding the above:

the price and payment for the CONFORMANCE BATCHES will be determined as set out in Exhibit D and will not be altered by the above
computation; and

the Payable Price per gram for the first [*]COMMERCIAL BATCHES shall be determined using the above formula using a computation based on the
CONFORMANCE BATCHES instead of the first [*]COMMERCIAL BATCHES.

6.4.4.2.2.     2005 and Beyond:  The Annual Payable Price per gram

The Annual Price per gram shall be freshly computed for each calendar year of the AGREEMENT beginning for the year 2005 as follows:

                                                    13

The Annual Payable Price per gram = [*]

where [*] per gram which is the Payable Price per gram in paragraph 6.4.4.2.1 above; and 

where [*]of all COMMERCIAL BATCHES produced in the prior year divided by [*] of PRODUCT delivered by BI AUSTRIA from said final [*] of all
COMMERCIAL BATCHES  

where the "total attributable cost" is determined in the manner reflected in paragraph 6.4.4.1 and Exhibit E.

  

provided that the Annual Payable Price for any year shall [*] (before inflation price adjustments and cost adjustments for Third Party Materials and
Services);

BI AUSTRIA shall invoice and NPS shall pay for deliveries the "Annual Payable" price per gram plus the inflation price adjustment and cost
adjustments as provided for in Exhibit E. 

6.4.4.4.3.     If the forecasted quantity of PRODUCT is less than [*], the price in Euro/gm established under paragraph 6.4.4.2 will be adjusted using the Sliding
Scale factors set out in Exhibit E.

6.4.5.     Documentation

6.4.5.1.     BI AUSTRIA will retain complete, accurate and authentic documents and records created by BI AUSTRIA for each COMMERCIAL BATCH, including
documents on manufacturing data, test records, BATCH PRODUCTION RECORDS, deviation reports, SOPs, VALIDATION documentation,
SPECIFICATIONS and RAW MATERIAL samples and any other documents, samples and information as required by GMP or at NPS' request.  BI
AUSTRIA shall permit NPS access to all originals under reasonable notice and will accommodate NPS by providing a suitable working space
with access to photocopy, telephone (voice and data) and facsimile for an employee or agent of NPS to be designated by NPS from time to time.

6.4.5.2.     During the initial manufacture of COMMERCIAL BATCHES there will be a qualification period in which NPS will qualify BI AUSTRIA as a
manufacturer of PRODUCT.  During the qualification period BI AUSTRIA will send copies of the following original documents to NPS: BATCH
PRODUCTION RECORDS, deviation summary reports, deviation reports/investigations, Certificate of Analysis (COA) and Certificate or statement of
GMP Compliance (COC).  Deviation summary reports will provide a description of the deviations, investigations, actions taken and follow-up measures.  It
is currently estimated that BI AUSTRIA will have to send to NPS the documentation on approximately the first [*] COMMERCIAL BATCHES.  If the
documentation is reasonably satisfactory to NPS and meets GMP requirements, then NPS will qualify BI AUSTRIA.  Once BI AUSTRIA is qualified, BI
AUSTRIA will provide to NPS by no later then the DATE AVAILABLE FOR DELIVERY the following documents for each COMMERCIAL BATCH
produced and released by BI AUSTRIA pursuant to a MANUFACTURER RELEASE:

(i)COA.  This document will include the name of the PRODUCT, the lot number and the date of manufacture.  The COA will also list (i) the
PRODUCT release Quality Control tests performed by BI AUSTRIA and/or by contract testing laboratories, (ii) the PRODUCT SPECIFICATIONS and (iii)
actual test results.

                                                    14

(ii)COC.

(iii)Deviation Summary Report for each lot and photocopies of major deviation reports/investigations associated with the lot.

6.4.5.3.     Documents and records created by and for BI AUSTRIA shall be in German or English.  The specific documents to be drafted in English or for which
BI AUSTRIA will translate into English are listed in Exhibit H attached.

6.4.5.4.     In addition to the documents BI AUSTRIA shall provide under paragraph 6.4.5.2, BI AUSTRIA shall provide a Trend Analysis of the process which
will include in-process data and results of tests reported in the COA for the SMALL SCALE BATCHES and the IMPLEMENTATION BATCHES.  All data
on the CONFORMANCE BATCHES will be provided in the respective validation documentation.  After market launch of ALX1-11, the Trend Analysis shall
be provided in the Annual Product Review.

6.4.6.     Packaging/Labelling

6.4.6.1.     BI AUSTRIA shall package and label the PRODUCT in accordance with the applicable MASTER BATCH RECORD and GMP.

6.4.7.     Release

6.4.7.1.     BI AUSTRIA is responsible for the MANUFACTURER RELEASE.  NPS is responsible for the FINAL RELEASE.

6.4.7.2.     BI AUSTRIA shall test each COMMERCIAL BATCH and provide the MANUFACTURER RELEASE as provided for in paragraph 6.4.5.2 for each
COMMERCIAL BATCH by the earlier of:  [*] from the  manufacture of PRODUCT; or the DATE AVAILABLE FOR DELIVERY.  BI AUSTRIA and
NPS shall establish an acceptable GMP procedure for BATCH PRODUCTION RECORD review.  Original BATCH PRODUCTION RECORDS will be
completed and available for review on site at BI AUSTRIA by NPS upon request of NPS pursuant to paragraph 6.4.5.1 at the time of the
MANUFACTURER RELEASE of each COMMERCIAL BATCH. The review and approval of BATCH PRODUCTION RECORDS is described in paragraph
8.5.2 and will be detailed in the QUALITY AGREEMENT.

6.4.8.     Shipment of Product

6.4.8.1.     All PRODUCT (and any samples thereof) shall be shipped to NPS or a location designated by NPS according to the Incoterm 2000 EXW ("ex works")
BI AUSTRIA's facility.  NPS shall be responsible for obtaining any import license or other official authorisation and carrying out any other customs
formalities necessary for importation of the PRODUCT, and for paying for all customs formalities as well as duties, taxes, and other official charges
payable upon importation.

6.4.9.     Ownership and Insurance Liabilities

6.4.9.1.     BI AUSTRIA shall retain title (but not the intellectual property therein) in the work-in progress and to any BATCH which has not yet been paid for in
full by NPS. Title to a

                                                    15

BATCH shall pass to NPS on payment in full to BI AUSTRIA for the BATCH.  NPS shall obtain the appropriate insurance on the
BATCH when the BATCH is shipped from BI AUSTRIA facilities.

6.4.9.2.     BI AUSTRIA shall hold appropriate insurance for the work-in-progress and BATCHES which are on site at BI AUSTRIA facilities.

6.5.     DISPUTE RESOLUTION FOR FAILED BATCHES

6.5.1.     Confirmatory Third Party Testing/Review GMP Quality

6.5.1.1.     If NPS determines PRODUCT does not meet PRODUCT SPECIFICATIONS, then NPS and/or BI AUSTRIA shall re-test the respective samples.  If
the PARTIES continue to disagree as to whether or not the said quantity of PRODUCT meets PRODUCT SPECIFICATIONS, or is GMP grade, and
suitable for FINAL RELEASE, then a qualified independent party, acceptable to both PARTIES, will determine if the PRODUCT meets SPECIFICATIONS,
is GMP grade and suitable for FINAL RELEASE.  The resulting determination will be final and binding on BI AUSTRIA and NPS.  BI AUSTRIA will bear
the cost of the third party evaluation if the testing demonstrates that the PRODUCT is not suitable for FINAL RELEASE.  If the PRODUCT is determined
to be suitable for FINAL RELEASE, then NPS shall bear all costs of the third party evaluation.

6.5.2.     Replacement/Cost Reduction

6.5.2.1.     BI AUSTRIA shall replace, with no additional charge, using commercially reasonable efforts, any quantity of PRODUCT which is not suitable for
FINAL RELEASE provided NPS notifies BI AUSTRIA in writing upon discovery of the defect or non-conformity within a period of ninety (90) days after
receipt of all documentation and information from BI AUSTRIA regarding the BATCH.  BI AUSTRIA shall evaluate the claim and test the said quantity of
PRODUCT within a reasonable period of time, not to exceed sixty (60) days.  If such PRODUCT is not replaced as provided for in this paragraph, NPS
shall receive a full refund for any payment made for such PRODUCT.  (Refunds shall be paid by BI AUSTRIA within thirty (30) days of the date of an
invoice from NPS.)

6.5.3.     Arbitration

6.5.3.1.     Any dispute under paragraphs 6.5.1. and 6.5.2. shall be handled in accordance with the Arbitration provisions provided herein.

7.    WAREHOUSING AND DISTRIBUTION

7.1.     All warehousing and distribution shall be done in accordance with GMP and the applicable SPECIFICATIONS, as detailed in the QUALITY
AGREEMENT.

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7.2.     MATERIALS

7.2.1.     WCB and MCB

7.2.1.1.     BI AUSTRIA shall be responsible for storage of the WCB and/or MCB at its facilities, which storage conditions shall be agreed to by the
PARTIES.

7.2.2.     RAW MATERIALS and Resins

7.2.2.1.     BI AUSTRIA shall warehouse as necessary the RAW MATERIALS and resins for use in the production of PRODUCT. Until BI AUSTRIA releases
such stored RAW MATERIALS or resins, BI AUSTRIA shall document the quarantine status of such RAW MATERIALS and resins in BI AUSTRIA's ERP
system and as required under GMP (randomised storage).

7.2.3.     PRODUCT

7.2.3.1.     BI AUSTRIA shall warehouse PRODUCT produced in the SMALL SCALE BATCHES and the IMPLEMENTATION BATCHES as requested by
NPS.  NPS shall decide on either disposing, or shipping such PRODUCT within [*] months of the release testing by BI AUSTRIA and NPS.

7.2.3.2.     BI AUSTRIA shall warehouse PRODUCT produced in accordance with this AGREEMENT.  BI AUSTRIA shall warehouse PRODUCT [*] up to the
DATE AVAILABLE FOR DELIVERY plus a further [*] months provided BI AUSTRIA's obligations under paragraphs 6.4.5.2 and 6.4.7 for
MANUFACTURER RELEASE have been met.  It is currently intended by the PARTIES that the PRODUCT shall be warehoused from time to time by BI
AUSTRIA for a period of time up to and after FINAL RELEASE by NPS, which will be agreed to by the PARTIES and as can be accommodated
by BI AUSTRIA and which period of time will depend to a great extent on the production schedule as adapted by NPS for formulation of PRODUCT into
its final drug product for commercial sale.

7.2.3.3.     PRODUCT not subject to FINAL RELEASE by NPS shall be properly quarantined from PRODUCT which has undergone FINAL RELEASE.

7.2.3.4.     NPS shall specify the DATE(S) AVAILABLE FOR DELIVERY on the Purchase Order for PRODUCT.  NPS shall submit a Purchase Order for
PRODUCT [*] months in advance of the quarter for which it has been forecasted.  BI AUSTRIA shall deliver on a timely basis the released PRODUCT in
accordance with the Purchase Order and the AGREEMENT herein.

7.2.3.5.     On or before the DATE AVAILABLE FOR DELIVERY, BI AUSTRIA shall approve the BATCH PRODUCTION RECORDS, investigate all deviations,
provide the MANUFACTURER RELEASE and supply NPS with documentation pursuant to paragraphs 6.4.5.2 and 6.4.7.

8.    QUALITY CONTROL AND MANAGEMENT

8.1.     SEPARATE QUALITY AGREEMENT

                                                    17

8.1.1.     Each of the PARTIES will in good faith expeditiously initiate the negotiation, documentation, and execution of a QUALITY AGREEMENT prior to the
initiation of production of COMMERCIAL BATCHES.

8.2.     VALIDATION SERVICES

8.2.1.     Validation Plan

8.2.1.1.     The PARTIES shall agree on a VALIDATION plan which shall establish the priorities and timetable for validating all critical systems, processes, tests
and equipment, among other things.  Consideration shall be given to whether currently validated systems, processes and tests need to be re-validated by
BI AUSTRIA.  Based on the VALIDATION plan, individual VALIDATION protocols shall be created.

8.2.2.     System

8.2.2.1.     BI AUSTRIA shall validate, if not currently validated, relevant for the manufacture of PRODUCT.  VALIDATION of critical systems not already
validated will be done in accordance with specified individual validation protocols, to be approved of by BI AUSTRIA Quality Management.

8.2.3.     Process

8.2.3.1.     BI AUSTRIA shall validate processes critical to the manufacturing of PRODUCT including operation of sterilizers, bioreactor controls,
chromatography process and cleaning and filtration equipment.  VALIDATION of the processes will be done in accordance with specified individual
validation protocols to be approved of by BI AUSTRIA Quality Management.

8.2.4.     Test Methods

8.2.4.1.     BI AUSTRIA shall validate those test methods which control critical characteristics or processes in the manufacture of PRODUCT, including without
limitation YIELD, purity and bioburden.

8.3.     SOPs

8.3.1.     BI AUSTRIA shall have established, or establish, SOPs for the manufacture of PRODUCT to cover:

personnel responsibilities;

facility operation, cleaning and maintenance;

procedures to be followed during inspections by FDA, EMEA or other regulatory agency;

staff safety and hygiene measures;

                                                    18

equipment operation, calibration, cleaning and maintenance;

production and process controls; reporting and justifying deviations; change control; equipment ID; sampling and testing in-process materials;cleaning
and change-over procedures;

packaging and labelling control;

warehousing and distribution;

laboratory controls, including, without limitation, SOPs for analytical methods, stability testing, reserve samples and reagents; and

records and documentation, including, without limitation, BATCH PRODUCTION RECORDS, investigation of deviations, control and distribution
records.

8.3.2.     In particular, SOPs shall be established for the production and testing of PRODUCT including in-process controls and in-process samples.

8.3.3.     BI AUSTRIA shall establish, maintain and implement SOPs for all warehousing, including warehousing of the MCB/WCB, RAW MATERIALS and
resins, and PRODUCT.

8.3.4.     Unless otherwise provided for in English as set out in paragraph 6.4.5.3, SOPs shall be in German. BI AUSTRIA shall make SOPs available for
review by NPS on-site.

8.4.     QUALITY CONTROL

8.4.1,     BI AUSTRIA shall maintain a separate Quality Control unit which shall operate separately from the production staff for ensuring Quality Control in the
manufacture of PRODUCT.  The Quality Control unit shall have adequate facilities for conducting the necessary tests.

8.4.2.     The Quality Control unit at BI AUSTRIA will conduct the testing of: RAW MATERIALS; resins and components; packaging components; in-process
products; and MANUFACTURER RELEASE.

8.5.     QUALITY MANAGEMENT

8.5.1.     BI AUSTRIA shall maintain a Quality Management unit, which will be separate from the Quality Control unit and production staff.  The responsibilities
of the Quality Management unit will be detailed in the QUALITY AGREEMENT.

8.5.2.     BI AUSTRIA's Quality Management unit shall review and approve all BATCH PRODUCTION RECORDS and shall investigate all deviations on such
BATCH PRODUCTION RECORDS on a timely basis, but in any event within three (3) months of production unless otherwise agreed to by the PARTIES.
BI AUSTRIA shall follow-up with corrective and preventative actions, as required.

                                                    19

8.5.3.     BI AUSTRIA 's Quality Management unit shall also ensure that BI AUSTRIA 's facilities and manufacturing operations for PRODUCT are in
compliance with the SPECIFICATIONS, FDA GMP, EUROPEAN GMP and BI AUSTRIA 's SOPs and with any other applicable law or regulation in effect
during the time of manufacture of PRODUCT.

8.5.4.     The Quality Management unit at BI AUSTRIA shall maintain appropriate SOPs, review and approve VALIDATION protocols, review proposed
process changes and determine whether re-validation is required, approve all procedures or applicable SPECIFICATIONS, particularly those effecting
identity, quality and purity of PRODUCT.

8.5.5.     The BI AUSTRIA Quality Management unit shall ensure that changes in packaging, equipment, processes, warehousing and distribution that could
affect product effectiveness or product characteristics are re-validated.

9.    TIMETABLE

9.1.     The PARTIES have agreed to a timeline as set out in Exhibit D for the Technology Transfer, CONFORMANCE BATCHES, initiation of commercial
manufacturing and establishment of Quality Control and Quality Management.

9.2.     The PARTIES will use commercially reasonable efforts to meet the expected timelines.  However, if during the Technology Transfer, BI AUSTRIA
becomes aware of circumstances which suggest that the estimated timelines in Exhibit D will not be met, BI AUSTRIA shall notify NPS and the PARTIES
will agree on next steps.

9.3.     Each PARTY acknowledges and agrees that it shall perform in a timely manner all of its obligations in this AGREEMENT.

10.    ORGANIZATIONAL RESPONSIBILITIES

10.1.     RESPONSIBLE PERSONNEL

10.1.1.     Each PARTY shall appoint a Project Manager to the Technology Transfer and the commercial manufacture of PRODUCT.

10.1.2.     All BI AUSTRIA and NPS personnel involved in the manufacture of PRODUCT shall have the appropriate credentials, experience and training to
conduct the work required of them under this AGREEMENT.  Accordingly, the credentials, experience and training of the personnel shall be given due
consideration for each function required, including: Quality Management; Quality Control; each stage of Technology Transfer; commercial production; and
warehousing.

10.2.     PROJECT MANAGEMENT, MEETINGS AND PLANNING

                                                    20

10.2.1.     The day-to-day operational responsibilities of the PARTIES with respect to the Technology Transfer and the manufacture of PRODUCT under this
AGREEMENT shall be overseen by the Project Team.  The Project Team shall be responsible for deciding operational and scientific issues.

10.2.2.     The Project Team shall be a team consisting of an equal number of people representing each PARTY, unless otherwise agreed to by the PARTIES.
Each PARTY will appoint its representatives. Each member of the Project Team shall be a person of appropriate skill and experience.  Either PARTY may
change its own designated Project Team members.  NPS' and BI AUSTRIA's respective members of the Project Team will be appointed prior to or shortly
after the EFFECTIVE DATE.

10.2.3.     There will be regularly scheduled meetings of the Project Team throughout the Technology Transfer phase and continuing at least until [*] after the
first [*] COMMERCIAL BATCHES, which meetings will occur on a regular basis as required and as agreed to by the PARTIES.  These meetings will
include a report on scheduled production, progress made, problems encountered, next stages and longer term planning.

10.2.4.     The PARTIES will come to an agreement on the need for regularly scheduled meetings beginning in [*] but it is expected that there will be regularly
scheduled meetings at least semi-annually.  Ad hoc meetings may also be called to deal with any problems which may affect the production of PRODUCT
or the scheduling of the production for PRODUCT and in particular if a DELIVERY DATE FOR PRODUCT potentially will not be met by BI AUSTRIA.

10.2.5.     Decisions of the Project Team shall be reflected in the approved Minutes prepared alternately by each PARTY.  Meeting Minutes shall be approved
by the Project Managers and should record all issues discussed and decisions made.

10.2.6.     In the event that the Project Team is unable to reach agreement on any issue and is unable to make decisions arising out of operational and scientific
issues then the matter will be referred to the Steering Committee for resolution.

10.2.7.     The Steering Committee shall consist of the Project Manager of each PARTY and an equal number of representatives of each PARTY.  Each PARTY
shall appoint permanent representatives from among its employees.  It is the expectation of the PARTIES that appointees will change infrequently. The
Steering Committee shall be responsible for unanimously agreeing in good faith on all issues on which the Project Team has been unable to reach
agreement on. NPS' and BI AUSTRIA's respective members of the Steering Committee will be appointed on or shortly after the EFFECTIVE
DATE.

10.3.     NPS' ATTENDANCE AND INPUT

10.3.1.     NPS personnel shall be in attendance during the Technology Transfer as set out in paragraph  5.1.2.

10.3.2.     NPS personnel may be on-site during FDA inspections concerning the PRODUCT or other regulatory inspections concerning the PRODUCT, at
NPS' discretion.  Any questions which an inspector may have concerning the manufacturing of the PRODUCT shall be answered by BI AUSTRIA
unless the inspector directs the question to NPS to answer.  Any questions concerning the further processing of the PRODUCT, or marketing or use of
the finished drug ALX 1-11, shall be answered by NPS.

                                                    21

10.3.2.     NPS personnel may be in attendance during commercial manufacture of PRODUCT during a scheduled audit, or at a request by BI AUSTRIA or on
reasonable notice by NPS, or unless otherwise agreed to by the PARTIES.  BI AUSTRIA shall accommodate NPS personnel during such visits by
providing an office area with access to photocopiers, telephone (voice and data) and facsimile.

11.    FEES AND PAYMENTS

11.1.     RESERVATION FEE

11.1.1.     A reservation fee for the runs currently scheduled for 2004, 2005 and 2006 shall be paid by NPS to BI AUSTRIA.  The reservation fee is to be
creditable against commercial production costs (beginning with NPS' acceptance of first production shipments) and against any Termination Penalty
which may become payable.  The reservation fee shall be [*] Euros and shall be paid as follows:

One Initial Installment on Signing 

       of this AGREEMENT - [*] Euros

[*] Installments of 

       [*] Euros each- beginning on the EFFECTIVE DATE and thereafter on the first day of each calendar quarter ending Oct 1, 2004

11.2.     FEES FOR TECHNOLOGY TRANSFER AND CONFORMANCE BATCHES

11.2.1.     The costs and fee schedule for the technology transfer and the CONFORMANCE BATCHES are set out in Exhibit D.  Costs for RAW MATERIALS,
components and resins for the Technology Transfer and for the CONFORMANCE BATCHES are not included in the fees but shall be invoiced separately
in accordance with paragraph 11.5.

11.2.2.     NPS shall pay a cost of [*] Euro for delivery and release of PRODUCT produced in the SMALL SCALE BATCHES at the [*] working volume scale and
in the [*] IMPLEMENTATION BATCHES.  [*] percent ([*]%) of this cost has already been paid as of the signing of the Letter of Intent.  The remainder shall
be paid on timely receipt of an invoice and upon acceptance by NPS of the final BATCH of the three IMPLEMENTATION BATCHES, such acceptance not
to be unreasonably delayed or declined.

11.2.3.     NPS shall pay a purchase price of [*] Euro for the [*] CONFORMANCE BATCHES.  [*] percent ([*]%) of this cost shall be
paid on initiation of the first CONFORMANCE BATCH and [*] percent ([*]%) shall be paid on timely receipt of an invoice by NPS and such invoice shall be
issued by BI AUSTRIA promptly upon NPS' FINAL RELEASE of the final BATCH of the [*] CONFORMANCE BATCHES, such FINAL RELEASE shall not
be unreasonably delayed or declined.

11.2.4.     NPS shall pay a cost of [*] Euros for the FERMENTATION BATCHES.  [*] percent ([*]%) of this cost shall be paid on initiation and [*] percent ([*]%)
shall be paid on timely receipt of an invoice to be issued by BI AUSTRIA promptly upon conclusion of said FERMENTATION BATCHES.

11.2.5.     NPS shall pay for METHOD TRANSFER SERVICES which are currently estimated to be about [*] Euro, upon receipt of a timely invoice.  These
Services will be agreed to promptly

                                                    22

following the signing of the AGREEMENT and will be addressed in separate written proposals as set out in paragraph 5.5.1.

11.2.6.     NPS may request and upon performance, NPS will pay BI AUSTRIA for VALIDATION SERVICES and STABILITY STUDIES conducted by BI
AUSTRIA.  The cost will be determined based on industry standard pricing for such services and shall be paid in accordance with Exhibit D and
paragraph 11.7.

11.3.     COMMERCIAL MANUFACTURING FEES

11.3.1.     The cost for GMP commercial manufacture, other than the CONFORMANCE BATCHES shall be determined in accordance with paragraph 6.4.4 and
Exhibit E.

11.3.2.     For the manufacture and delivery of each COMMERCIAL BATCH, NPS shall pay BI AUSTRIA as specified in paragraph 6.4.4 and in Exhibit E.  For
each COMMERCIAL BATCH manufactured by BI AUSTRIA, BI AUSTRIA shall invoice NPS on or after BI AUSTRIA has completed its obligations
pursuant to paragraphs 6.4.5 and 6.4.7 in order to have PRODUCT available for shipment as of the DATE AVAILABLE FOR DELIVERY.

11.4.     WAREHOUSING FEES

11.4.1.     The PARTIES shall agree on the cost to be charged to NPS by BI AUSTRIA for warehousing.

11.5.     RAW MATERIALS AND RESINS, AND STORAGE CONTAINERS

11.5.1.     BI AUSTRIA shall invoice NPS for the RAW MATERIALS, components and resins used during the technology transfer and CONFORMANCE
BATCHES at cost plus a flat fee for BI AUSTRIA'S services for purchasing, QC testing and storage, among other things.  The flat fee will be [*] Euro per
resin and [*] Euro per raw material.

11.5.2.     BI AUSTRIA shall invoice NPS for the cost of the Storage Containers and for VALIDATION thereof.

11.6.     REGULATORY FILINGS

11.6.1.     NPS shall pay for BI AUSTRIA's work pursuant to paragraph 12.3 for the regulatory filing, particularly the Chemistry, Manufacturing and Controls
(CMC) section thereof, at a mutually agreeable and reasonable rate.

11.7.     PAYMENTS

11.7.1.     All payments by NPS to BI AUSTRIA shall be made within [*] days of the submission of the appropriate invoice by BI AUSTRIA detailing the matter to
which the invoice applies and the price in Euros.

12.    REGULATORY COMPLIANCE

12.1.     GENERAL

                                                    23

12.1.1.     BI AUSTRIA will exercise all reasonable skill, care and diligence customary in the industry in the performance of its duties under this AGREEMENT
and in accordance with the requirements of EUROPEAN GMP and FDA GMP.  BI AUSTRIA shall obtain and maintain all permits required under Austrian
legislation in order to manufacture PRODUCT. BI AUSTRIA will inform NPS of all permits filed under Austrian legislation or otherwise and their status with
respect to approval.

12.1.2.     BI AUSTRIA will file and maintain for its facility in Austria a Drug Master File (DMF), or such equivalent, as required by the U.S. FDA and a Site
Master File (SMF), or such equivalent, as required by the EMEA.  In addition, BI AUSTRIA will file and maintain a similar file in Canada for which the
details and costs associated with such filing are to be agreed to by the PARTIES.  For regulatory purposes, including the filing of an NDA or an
amendment thereto, or equivalent thereof, NPS shall have rights to refer to the DMF, SMF or to other similar documents and BI AUSTRIA will give
NPS access to information in the DMF, SMF and other similar documents which are necessary to complete regulatory documentation in U.S.,
Canada and Europe and are related to PRODUCT and its manufacture in BI AUSTRIA's facility.  BI AUSTRIA shall also co-operate with similar filings in
other countries at NPS' expense.

12.1.3.     BI AUSTRIA shall co-operate with the FDA, EMEA or other such regulatory body, as requested by NPS and in response to matters
concerning or impacting the PRODUCT.  BI AUSTRIA shall notify NPS of any communication with the FDA (or other such agency) concerning
the PRODUCT or impacting the PRODUCT and shall co-operate with NPS in the scheduling of any planned inspection concerning the
PRODUCT.  NPS shall have the right to be on-site during such inspections.

12.2.     INSPECTIONS AND AUDITS

12.2.1.     Pre-Approval and Manufacturing Audits

12.2.1.1.     NPS or its designated representatives may audit the Facilities for the purpose of reviewing manufacturing of PRODUCT, Quality
Management, Quality Control and VALIDATION and for determining compliance with GMP and the SPECIFICATIONS during the term of
this AGREEMENT.

12.2.1.2.     Subject to reasonable prior notice, BI AUSTRIA shall permit, and cooperate with, such audits as NPS may reasonably request at the BI AUSTRIA
facilities by NPS personnel or representatives during business hours in order for NPS to carry out its review pursuant to 12.2.1.1.  All NPS
representatives who are not NPS personnel need to be approved by BI AUSTRIA, approval not to be unreasonably withheld.  More than one (1) audit per
year will not be permitted unless it is an audit for cause, which shall include, without limitation, a manufacturing or facility issue affecting or potentially
affecting in any manner the production or quality of PRODUCT.

12.2.2.     Pre-Approval and Manufacturing Regulatory Inspections

12.2.2.1.     As applicable, and as agreed to by the PARTIES, the PARTIES shall cooperate fully in preparing for and passing a Pre-Approval Inspection as
required by the U.S. FDA or another regulatory agency.

                                                    24

12.2.2.2.     BI AUSTRIA shall have in place, or put in place, a corporate policy, SOPs and the QUALITY AGREEMENT governing regulatory
inspections.

12.2.3.     483 Citations and Warning Letters

12.2.3.1.     BI AUSTRIA shall notify NPS if it receives any FDA 483s, FDA Warning Letters, FDA non-compliance letters or other comparable FDA notifications
concerning or impacting the PRODUCT (or similar European EMEA notifications) or if BI AUSTRIA receives notification of any planned or unplanned FDA
inspection directed or applicable to the PRODUCT during the term of this AGREEMENT.

12.2.3.2.     BI AUSTRIA shall take immediate steps to address and correct any/all concerns raised by the FDA (EMEA, or other regulatory agency).
Any concerns which are raised as a result of an FDA inspection including 483's or Warning Letters, will be promptly responded to.  Issues which are
facility related and/or which are quality system violations or deficiencies shall be paid for by BI AUSTRIA.  BI AUSTRIA will promptly modify the
manufacturing process as required or recommended by the FDA, EMEA or other regulatory authority, with NPS' input and provided NPS pays for such
modifications which are process or PRODUCT related.  NPS shall be informed of any and all such communications and will be given the opportunity to
have input in these communications as appropriate and in any event on any communication related to a time change or cost to NPS.

12.3.     REGULATORY FILINGS

12.3.1.     The PARTIES will mutually agree as to each PARTY's responsibilities in ensuring the requisite information required for the regulatory filings is
available and submitted.  The PARTIES shall work together to ensure all necessary and sufficient information and data for the CMC section of any
regulatory filing is completed as required (including, but without limitation, chemistry, manufacturing and Quality Control/Quality Management information)
which shall include BI AUSTRIA's participation in the writing of, and approval of, the sections of the CMC directed to the PRODUCT as produced by BI
AUSTRIA prior to submission to the regulatory agencies.  The timelines for BI AUSTRIA's review and approval of such documents will be agreed between
the PARTIES.

13.    INTELLECTUAL PROPERTY

13.1.     OWNERSHIP

13.1.1,     All INTELLECTUAL PROPERTY generated pursuant to this AGREEMENT shall be owned by:  (a) BI AUSTRIA if invented by BI AUSTRIA
employees and/or agents; (b) NPS if invented by NPS employees and/or agents; and (c) shall be owned jointly by BI AUSTRIA and NPS if
invented by employees and/or agents of both BI AUSTRIA and NPS.  However, if BI AUSTRIA has some ownership in the INTELLECTUAL PROPERTY
under (a) or (c), and this INTELLECTUAL PROPERTY is related to PRODUCT or ALX-0600 (a 1-33 amino acid glucagon-like peptide-2 analog) or the
production, use, or sale thereof, then BI AUSTRIA hereby grants to NPS an exclusive license from BI AUSTRIA to the INTELLECTUAL
PROPERTY for production, use or sale of PRODUCT or ALX-0600 (a 1-33 amino acid glucagon-like peptide-2 analog), which license is royalty free,
worldwide sublicensable, and paid up.

                                                    25

13.1.2.     BI AUSTRIA shall promptly notify NPS in writing when it becomes aware of any INTELLECTUAL PROPERTY and NPS shall make the final
determination on whether or not such INTELLECTUAL PROPERTY which is solely related to PRODUCT or ALX-0600 or the exclusive production, use or
sale of any of them shall be made the subject of any patent application(s) and issued patent(s) whereas BI AUSTRIA shall make the final determination
on whether or not such INTELLECTUAL PROPERTY which is related to manufacturing processes and/or devices and which may either be applied (i) for
the production, use or sale of PRODUCT or ALX-0600 and other substances or (ii) for the exclusive production of other substances shall be made the
subject of any patent application(s) and issued patent(s).

13.2.     PROSECUTION

13.2.1.     NPS shall be solely responsible for the filing, prosecution and maintenance of all INTELLECTUAL PROPERTY which is owned by NPS pursuant to
paragraph 13.1.1(b).  NPS shall also be solely responsible for filing, prosecution and maintenance of all INTELLECTUAL PROPERTY which is jointly
owned by the PARTIES pursuant to paragraph 13.1.1(c) if such INTELLECTUAL PROPERTY is solely related to PRODUCT or ALX-0600 or the exclusive
production, use or sale of any of them, including costs associated therewith.

13.2.2.     BI AUSTRIA shall be responsible for the filing, prosecution and maintenance of all INTELLECTUAL PROPERTY which is owned by BI AUSTRIA
pursuant to paragraph 13.1.1(a). BI AUSTRIA shall be responsible for the filing, prosecution and maintenance of all INTELLECTUAL PROPERTY which
is related to manufacturing processes and/or devices and which may either be applied (i) for the production, use or sale of PRODUCT or ALX-0600 and
other substances or (ii) for the exclusive production of other substances.  However, even if the INTELLECTUAL PROPERTY is generally related to
manufacturing processes and/or devices, if it is also related to PRODUCT or ALX-0600 or the production, use or sale of any of them and hence subject to
the exclusive license to NPS as described above in paragraph 13.1.1, then BI AUSTRIA shall consult with NPS on such filings, prosecution and
maintenance.  If BI AUSTRIA elects not to file, prosecute or maintain such INTELLECTUAL PROPERTY, NPS, at its sole discretion, may file, prosecute
or maintain such INTELLECTUAL PROPERTY.

14.    LEGAL PROCEEDINGS

14.1.     INFRINGEMENT OF THIRD PARTIES' PATENTS, PRODUCT LIABILITY AND INDEMNIFICATION

14.1.1.     Subject to paragraph 14.1.2, NPS will indemnify and hold BI AUSTRIA and its AFFILIATES harmless from and against any and all losses, claims,
damages or liabilities (including but not limited to reasonable attorney's fees), arising from (a) any use, including clinical trials, or sale by NPS or any NPS
agent of any PRODUCT supplied by BI AUSTRIA hereunder; (b) any allegation by any third party of infringement of its intellectual property rights by
reason of the manufacture, use or sale of PRODUCT by BI AUSTRIA, NPS or NPS' agents; (c) breach by NPS of its representations, warranties or
covenants under this AGREEMENT; or (d) any negligent or reckless activities or omissions of NPS.

14.1.2.     BI AUSTRIA shall be liable to NPS, and shall indemnify NPS, for any losses, claims or damages brought against NPS that are due to the negligent or
reckless activities or omissions of BI AUSTRIA, its officers, employees or agents, or as a result of, in respect of, or arising

                                                    26

out of any breach of any representation, warranty, covenant or guarantee of BI AUSTRIA in connection with this AGREEMENT.

14.1.3.     If any claim is made for which a PARTY may seek indemnification from the other, the PARTY seeking indemnity shall promptly notify the other
PARTY of the nature and basis of such claims and amounts thereof, to the extent known.  In the event any action, suit or proceeding is brought against a
PARTY with respect to which the other PARTY will have full liability hereunder, the other PARTY may, at its option and at its own expense, elect to
assume the defence of any such action, suit or proceeding itself, and if it does not so elect, the PARTY having the action, suit or proceeding brought
against it will assume the defence thereof.  If a PARTY may have only partial liability for any such action, suit or proceeding, the PARTIES will come to an
agreement on how best to defend any such action, suit or proceeding.  Neither PARTY shall make any settlement of claims without the written consent of
the other PARTY, which consent shall not be unreasonably withheld.

14.1.4.     In no event, whether directly or by indemnification, shall either PARTY be liable for any special, incidental, indirect or consequential losses or
damages (including any loss of profits) arising out of or relating to each PARTY's performance or failure to perform its obligations hereunder.  Each
PARTY's total liability hereunder to the other shall not exceed [*] pursuant to this AGREEMENT.

15.    INSURANCE

15.1.     Each PARTY shall maintain adequate liability insurance in such amounts and with such scope of coverage as is adequate to cover each PARTY's
respective potential liabilities to the other PARTY under this AGREEMENT.  Either PARTY may any time after the EFFECTIVE DATE request the other
PARTY to provide a certificate of insurance showing the respective PARTY's liability insurance.

16.    CONFIDENTIAL INFORMATION

16.1.      A PARTY receiving CONFIDENTIAL INFORMATION from the other PARTY or developing such information hereunder shall not disclose such
information to any third party.   Each PARTY shall keep CONFIDENTIAL INFORMATION  in strict confidence, use it solely for the purposes authorised
herein and shall not disclose such information, for a period extending ten (10) years from the termination of all manufacturing of PRODUCT for NPS by BI
AUSTRIA according to this AGREEMENT, except as follows:

To the extent such information is or becomes general public knowledge through no fault of the recipient PARTY; or

To the extent such information can be shown by contemporaneous documentation of the recipient PARTY to have been in its possession prior to
receipt thereof hereunder; or

To the extent such information is received by the recipient PARTY from a third party without any breach of an obligation by the disclosing PARTY;
or

To the extent such information can be shown by contemporaneous documentation of the recipient PARTY to have been independently developed by
the recipient PARTY; or

                                                    27

To the extent required by law, by local authorities for regulatory purposes or is necessary to perform its obligations under this AGREEMENT, in which
case, the recipient PARTY may disclose the information if the recipient PARTY gives the other PARTY prior notice of such disclosure and an opportunity
to comment upon the content of the disclosure.

16.2.      On or about May 7, 2001 the PARTIES entered into a Confidential Disclosure Agreement governing the disclosure and use of information concerning
the matters addressed in this AGREEMENT.  Except as amended hereby, that CDA remains in full force and effect.

17.    REPRESENTATIONS AND WARRANTIES

17.1.       BI AUSTRIA represents that it will obtain NPS' written approval, not to be unreasonably withheld, in advance of any changes concerning or having
impact on the PRODUCT and as further defined in the QUALITY AGREEMENT.  None of these changes will be inconsistent with maintaining compliance
with the SPECIFICATIONS and GMP or to the applicable law or regulations to the extent required under this AGREEMENT for producing
PRODUCT.

17.2.       BI AUSTRIA represents that after completion of the process validation the manufacture of PRODUCT (including the process, plant, equipment and
personnel) and the storage/release/delivery of PRODUCT, RAW MATERIALS and resins and WCB and MCB will all be done in accordance with the
relevant SPECIFICATIONS and GMP.

17.3.       BI AUSTRIA represents that it shall maintain all necessary permits and authorisations as required under applicable local or state laws and under FDA
GMP and European GMP in order to manufacture PRODUCT.

17.4.       BI AUSTRIA represents that its facilities which will be used to commercially manufacture PRODUCT have undergone an FDA inspection and BI
AUSTRIA represents that it has not received any FDA Warning Letters or other such comparable FDA notifications.  BI AUSTRIA represents that
it shall notify NPS if it receives any FDA 483s, FDA Warning Letters, FDA non-compliance letters or other comparable FDA notifications (or similar
European EMEA notifications) concerning or having impact on the PRODUCT or if BI AUSTRIA receives notification of any planned or unplanned
inspection directed to the PRODUCT during the term of this AGREEMENT.

17.5.       BI AUSTRIA represents that it will not carry on any activities in its facilities which BI AUSTRIA knows or should know could reasonably prevent
PRODUCT from being manufactured, packaged or stored in accordance with this AGREEMENT.

17.6.       NPS represents that any INTELLECTUAL PROPERTY owned or controlled by NPS and provided by NPS to BI AUSTRIA under this AGREEMENT
has no defects of title, nor has any claim of infringement been threatened or asserted, nor is such a claim pending.

18.    TERM AND TERMINATION

18.1.        TERM

18.1.1.        The term of this AGREEMENT shall expire on December 31, 2010.  However, the PARTIES may agree to extend this AGREEMENT on or before
December 31, 2008 for a further period of up to ten (10) years based substantially on the same terms as set out in this AGREEMENT.

                                                    28

18.2.         TERMINATION

18.2.1.         NPS reserves the right to terminate this AGREEMENT after the IMPLEMENTATION BATCHES if:

18.2.1.1.         BI AUSTRIA could not implement the process for technical reasons then NPS, in its discretion, may terminate on thirty (30) days notice and without
payment of a [*] or any remaining [*] by NPS whereupon NPS will have no further financial obligation to BI AUSTRIA arising under or related to the
subject matter of this AGREEMENT; or

18.2.1.2.         The YIELDS are not as expected for reasons related to the production process, NPS, in its discretion, may terminate on thirty (30) days notice and
upon payment of the full reservation fee ("Termination Penalty") whereupon NPS will have no further financial obligation to BI AUSTRIA
arising under or related to the subject matter of this AGREEMENT.

18.2.2.         Either PARTY may terminate this AGREEMENT at any time on or after December 31, 2005,  upon twenty-four (24) months' prior written notice given
to the other PARTY, provided that BI AUSTRIA shall continue to manufacture and deliver PRODUCT as forecasted/ordered and NPS shall
continue to purchase and accept such PRODUCT for the full twenty-four (24) months.

18.2.3.         NPS reserves the right to terminate this AGREEMENT at any time upon thirty (30) days notice if:

18.2.3.1.         NPS decides it must delay or terminate the production or market entry of PRODUCT, provided NPS shall be liable to BI AUSTRIA for the following
(collectively called, the "Termination Penalty"):

100% of the costs for (i) all the Services already performed, (ii) RAW MATERIAL and Components (plus the appropriate markup) already purchased
for use in manufacturing PRODUCT, and/or (iii) PRODUCT already manufactured according to a valid Purchase Order, at the date of receipt of such
notice of termination less any paid Reservation fee or other prepaid amounts; and

[*]% of the total costs that would be coming due to BI AUSTRIA over the next [*] months, being [*]%, of either the equivalent value of Services already
purchased, or portion thereof, or the applicable equivalent of the purchase price of PRODUCT already requested by NPS in the red zone, and the blue
zone of the then current Rolling Forecast (Exhibit C) at the date of receipt of such notice of termination less any prepaid amounts; or

18.2.3.2.         NPS terminates under paragraph 18.2.3.1 in the event ALX1-11 fails in Phase III clinical trials, then the Termination Penalty shall not include and
NPS shall not be liable for the blue zone of the then current Rolling Forecast (Exhibit C) or for any remaining unpaid Reservation fee; or

18.2.3.3.         For any other reason provided NPS shall be liable to BI AUSTRIA for the following (collectively called, the "Termination
Penalty"):

                                                    29

100% of the costs for (i) all the Services already performed, (ii) RAW MATERIAL and Components (plus the appropriate markup) already purchased
for use in manufacturing the PRODUCT, and/or (iii) PRODUCT already manufactured according to a valid Purchase Order, at the date of receipt of such
notice of termination less any prepaid amounts; and

[*]% of the total costs that would be coming due to BI AUSTRIA over the next [*] months, being [*]%, of either the equivalent value of Services already
purchased, or portion thereof, or the applicable equivalent of the purchase price of PRODUCT already requested by NPS in the red zone, and the blue
zone of the then current Rolling Forecast (Exhibit C) at the date of receipt of such notice of termination less any prepaid amounts.

plus the [*] not previously credited.

18.2.4.         BI AUSTRIA reserves the right to terminate this AGREEMENT in the event that ALX1-11 fails in Phase III clinical trials.  For the purpose of clarity, in
such event NPS shall come up within [*] months with a detailed assessment and action plan revealing the impact of such clinical trial failure for this
AGREEMENT.  As far as the manufacture of PRODUCT at BI AUSTRIA is concerned, such action plan shall be subject to mutual agreement.  In the
event NPS will not provide BI AUSTRIA with such detailed assessment and action plan, BI AUSTRIA has the right to terminate the AGREEMENT, and
NPS shall be liable to BI AUSTRIA for the Termination Penalty in accordance with paragraph 18.2.3.2.

18.2.5.         Any reservation fee paid to date by NPS shall be set off against the applicable Termination Penalty under
either 18.2.1.2, 18.2.3.1, 18.2.3.2 or 18.2.3.3.

18.2.6.         Any Termination Penalty will be reduced by any amounts saved through success of BI AUSTRIA in mitigation efforts under paragraph
18.3.

18.3.          MITIGATION

18.3.1.          BI AUSTRIA will use reasonable commercial efforts to mitigate any Termination Penalty set out in Paragraph 18, including without limitation
attempting to use internally or resell its services and the manufacturing capacity that was dedicated to or reserved for the manufacture of PRODUCT after
termination by NPS.

18.4.           EFFECT  OF TERMINATION

18.4.1.           Paragraph 13, 14, and 18 shall survive termination or expiration of this AGREEMENT (as the case may be) and shall remain in full force and
effect.

18.4.2.           The provisions of paragraph 16 shall survive termination or expiration of this AGREEMENT (as the case may be) and shall remain in full force and
effect for ten (10) years after termination or expiration of this AGREEMENT.

18.4.3.           The provisions of paragraph 3.1.2.1 shall survive termination or expiration of this AGREEMENT (as the case may be) and shall remain in full force
and effect for two (2) years after termination or expiration of this AGREEMENT.

18.4.4.           Termination of this AGREEMENT shall not release any PARTY from any liability for payment accrued or accruing to the other PARTY prior to the
termination date.

                                                    30

18.4.5.           In the event of termination, each PARTY shall promptly return to the other PARTY all of the other PARTY's CONFIDENTIAL INFORMATION.  Each
PARTY shall maintain copies of documentation or samples as required by that PARTY under GMP and may also keep one copy or sample for recordal
purposes.

18.4.6.           BI AUSTRIA shall deliver all PRODUCT-specific equipment in accordance with paragraph 3.1.2.1, all materials, including but not limited to samples,
PRODUCT, and intermediate products, and all PRODUCT-specific documentation generated during the term and within the scope of this AGREEMENT
to NPS.  In the event the AGREEMENT is terminated by NPS according to paragraph 18.2.1.1, or by BI AUSTRIA according to paragraph 18.2.2. all
reasonable costs for such delivery shall be to the charge of BI AUSTRIA.  In all other cases such costs shall be to the charge of NPS.

18.4.7.           In the event this AGREEMENT is terminated by NPS according to paragraph 18.2.3.3. NPS hereby agrees to financially compensate BI AUSTRIA in
accordance with industry standards for the further use of license rights granted by BI AUSTRIA in accordance with 13.1.1.

19.    MISCELLANEOUS

19.1.            NON-COMPETITION

19.1.1.            BI AUSTRIA will not enter into an agreement to manufacture rhPTH or any Related Compound for a third party for as long as BI AUSTRIA is
manufacturing PRODUCT for NPS according to this AGREEMENT.  "Related Compound" for this paragraph, paragraph 19.1.1, means a
compound that:  (i) competes with PRODUCT for [*].

19.1.2.            Notwithstanding paragraph 19.1.3, BI AUSTRIA will not manufacture rhPTH or a [*] of rhPTH for commercial sale for itself or its AFFILIATES for as
long as BI AUSTRIA is manufacturing PRODUCT for NPS according to this AGREEMENT.

19.1.3.            BI AUSTRIA shall notify NPS as soon as it becomes aware of any intention by BI AUSTRIA or BI AUSTRIA's AFFILIATES to have BI
AUSTRIA develop or manufacture a Related Compound for commercial sale.  Without limiting the generality of the foregoing sentence, BI AUSTRIA will
be deemed to be aware of such intention at the point in time that BI AUSTRIA has herein been paid to do any material services applicable to and directed
to such manufacture of a Related Compound.  "Related Compound" for this paragraph, paragraph 19.1.3, means a compound that will be
used in the treatment of osteoporosis and that:  (i) competes with rhPTH for [*].  If NPS receives such a notification from BI AUSTRIA, NPS has the option
to terminate this AGREEMENT upon twenty-four (24) months' prior written notice given to BI AUSTRIA, provided that NPS shall continue to purchase and
accept, acceptable production as defined for the full twenty-four (24) months.

19.2.            KNOWLEDGE SHARING WITH NPS

19.2.1.            To the extent not otherwise provided for in the AGREEMENT, BI AUSTRIA shall supply, or make available, to NPS on a timely basis all
documentation and records created by BI AUSTRIA, for the commercial manufacture of PRODUCT, including, without limitation, Component Production
Records, MASTER BATCH RECORDS, RAW MATERIAL SPECIFICATIONS, Analytical Methods, VALIDATION Documentation and any other available
PRODUCT specific production data/research data.

19.3.            GOVERNING LAW AND ARBITRATION

                                                    31

19.3.1.            This AGREEMENT shall be governed, construed and interpreted by the laws of Austria without recourse to the conflict of laws provisions.

19.3.2.            The PARTIES hereto agree to consult with each other and to use their best efforts to resolve any dispute and to refer a matter to arbitration only as a
last resort. If the PARTIES are unable to resolve any dispute arising under this AGREEMENT, a PARTY who desires to submit a dispute to arbitration
shall deliver notice to that effect to the other PARTY.  The PARTIES agree that all disputes between them arising out of or relating to this AGREEMENT
shall be settled by arbitration in accordance with the rules of arbitration of the International Chamber of Commerce by three arbitrators appointed in
accordance with such rules.  The arbitration proceedings shall take place in Paris, France and shall be conducted in the English language.  The arbitration
shall result in a binding decision.  Judgement on the award may be issued by and enforced by any court of competent jurisdiction

19.4.            WAIVER

19.4.1.            The failure by any PARTY at any time to enforce any of the terms or provisions or conditions herein or exercise any right hereunder shall not
constitute a waiver of the same or affect the validity of this AGREEMENT or any part hereof, or that PARTY's rights thereafter to enforce or exercise the
same.  No waiver by a PARTY shall be valid or binding, except if in writing and signed by a duly authorised representative of the waiving
PARTY.

19.5.            FORCE MAJEURE

19.5.1.            A PARTY shall not be held liable to the other for any delay in performance or non-performance of that PARTY directly or indirectly caused by reason
of force majeure including, but not limited to, industrial disputes, strike, lockouts, riots, mobs, fires, floods, or other natural disasters, civil strife, embargo,
lack or failure of transport facilities, currency restrictions, or events caused by reason of laws, regulations or orders by any government, governmental
agency or instrumentality or by any other supervening circumstances beyond the control of either PARTY.  Provided, however, that the PARTY affected
shall: give prompt written notice to the other PARTY of the date of commencement of the force majeure, the nature thereof, and expected duration; and
shall use its best efforts to avoid or remove the force majeure to the extent it is able to do so; and shall make up, continue on and complete performance
when such cause is removed to the extent it is able to do so.  Either PARTY has the right to terminate with immediate effect, upon written notice to the
other PARTY, should the force majeure continue after three months (3) following the first notification.

19.6.            SEVERABILITY

19.6.1.            In case one or more of the provisions contained herein shall, for any reason, be held invalid, illegal or unenforceable in any respect, such holding
shall not affect any other provisions herein, but this AGREEMENT shall be construed by limiting such provision to such extent as would nearly as possible
reflect the intent, purpose and economic effect of such provision, or, if such is not possible, by deleting such, provided that the remaining provisions reflect
the intent of the PARTIES.

19.7.            NOTICE

                                                    32

19.7.1.            All written communications, reports and notices between the PARTIES shall be in English and shall be delivered or sent by prepaid mail, registered
mail, Federal Express or other recognised overnight courier, or facsimile transmission to the attention of the PARTY at the addresses noted below, or any
other addresses of which either PARTY shall notify the other PARTY in writing.

Notices to BI AUSTRIA shall be to:

   Boehringer Ingelheim Austria GmbH

   Dr. Boehringer-Gasse 5 - 11

   A-1121 Vienna

   AUSTRIA

   Attn: Dr. Kurt Konopitzky

Notices to NPS shall be to:

Attention: 

   NPS Allelix Corp.

   6850 Goreway Drive

   Mississauga, Ontario

   Canada  L4V 1V7

   Attn: Rick Wilcocks, Manager, Protein Purification

with a copy to:

NPS Pharmaceuticals Inc.

   420 Chipeta Way, Salt Lake City, Utah 84108

   Tel:  (801) 583-4939

   Fax: (801) 583-4961

   Attn:Legal Department

                                                    33

19.8.            ASSIGNMENT AND ENUREMENT

19.8.1.            Either PARTY shall have the right to assign this AGREEMENT to its AFFILIATES.  This AGREEMENT may be assigned by either PARTY to any third
party with the prior written consent of the other PARTY, such consent not to be unreasonably withheld or delayed.

19.8.2.            This AGREEMENT shall be binding on all successors and permitted assignees.

19.9.            LANGUAGE

19.9.1.            All communications, written and oral between NPS and BI AUSTRIA shall be in English.

19.10.            INTEGRATION

19.10.1.            This AGREEMENT represents the entire understanding of the PARTIES and supercedes all other agreements, expressed or implied, between the
PARTIES concerning the subject matter herein.

19.11.            PUBLICITY

19.11.1.      Each PARTY shall maintain the confidentiality of all provisions of this AGREEMENT, and, without the prior consent of the other PARTY,
neither PARTY shall make any press release or other public announcement of or otherwise disclose this AGREEMENT or any of its provisions to any third
party (other than to its officers and employees and attorneys, accountants, investment bankers and other professional advisers whose duties require
familiarity with this AGREEMENT), except for such disclosures as may be required by applicable law or governmental regulation.

IN WITNESS WHEREOF, the PARTIES hereto have caused this AGREEMENT to be executed by their duly authorised representatives.

	

NPS ALLELIX CORP

By:_____________________________

                               Name:Hunter Jackson 

Title:    President 

Date: _________________________
 
	
  
 
	

BOEHRINGER INGELHEIM AUSTRIA GmbH

By:_____________________________

Name:  Dr. Kurt Konopitzky

Title:  Head of Division Biopharmaceuticals

       Operations

Date: _________________________

By:_____________________________

                           Name:Prof. Rolf G. Werner

Title:    Head, Corporate Division Biopharmaceuticals

Date: _________________________
 

                                                    34

EXHIBIT A

MANUFACTURING DOCUMENTS

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

 

[*]

                                                    35

EXHIBIT B

MANUFACTURING DOCUMENTS

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

[*]

                                                    36

EXHIBIT C

ROLLING FORECAST MODEL

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

 

[*]

                                                    37

EXHIBIT D

DETAILED TIMELINE AND FEE SCHEDULE FOR SCALE UP BATCHES 

AND CONFORMANCE BATCHES

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

[*]

                                                    38

EXHIBIT E

SLIDING PRICE MODEL

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

[*]

                                                    39

EXHIBIT F

PRODUCT Specifications

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

[*]

 

                                                    40

EXHIBIT G

CRITICAL RAW MATERIALS AND STORAGE CONTAINERS

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

[*]

                                                    41

EXHIBIT H

DOCUMENTS BI AUSTRIA WILL PROVIDE IN ENGLISH

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

[*]

                                                    42

EXHIBIT I

DESCRIPTION OF FACILITIES FOR PTH PRODUCTION AND TESTING

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

[*]

                                                    43

EXHIBIT J

Documents to be reviewed and approved by NPS

An Exhibit to the Commercial Manufacturing Agreement

Between

NPS Allelix Corp. and Boehringer Ingelheim Austria

Dated 18 October, 2002

 

[*]

                                                    44

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