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                                                                    EXHIBIT 10.3

                       SUPPLY AND MANUFACTURING AGREEMENT
                                 BY AND BETWEEN
                               ABBOTT LABORATORIES
                                       AND
                         TRIANGLE PHARMACEUTICALS, INC.

     THIS AGREEMENT is made as of July 30, 2002, by and between Abbott
Laboratories, an Illinois corporation having a principal place of business at
100 Abbott Park Road, Abbott Park, Illinois 60064 ("ABBOTT"), and Triangle
Pharmaceuticals, Inc., a corporation organized under the laws of Delaware,
having a principal place of business at 4 University Place, 4611 University
Drive, Durham, North Carolina 27707 ("TRIANGLE").

     WHEREAS, Abbott and Triangle previously entered into a supply and
manufacturing agreement dated August 3, 1999 (the "PREVIOUS AGREEMENT");

     WHEREAS, Abbott and Triangle have terminated the Previous Agreement
pursuant to a Termination Agreement of even date herewith (the "TERMINATION
AGREEMENT"); and

     WHEREAS, Abbott and Triangle desire to enter into a new supply and
manufacturing agreement to facilitate the purchase from Abbott by Triangle of
quantities of Product (as defined below), subject to the terms and conditions
set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein, the Parties hereto agree as follows:

                                   ARTICLE 1.

                                   DEFINITIONS

     In addition to the other terms defined elsewhere herein, the following
terms and phrases shall have the following meanings when used in this Agreement
(and any term defined in the singular shall have the same meaning when used in
the plural and vice versa, unless stated otherwise).

     1.1     "AFFILIATE" means any corporation or non-corporate business entity
which controls, is controlled by, or is under common control with a Party. A
corporation or non-corporate business entity shall be regarded in control of
another corporation if it owns or directly

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or indirectly controls, at least *** percent (***%) of the voting stock of the
other corporation or non-corporate business entity, or (a) in the absence of the
ownership of at least *** percent (***%) of the voting stock of a corporation or
(b) in the case of a non-corporate business entity, if it possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of such corporation or non-corporate business entity, as applicable.
For purposes of this Agreement, TAP Holdings Inc. and its subsidiaries, which
comprise Abbott's joint venture with Takeda Chemical Industries Ltd., are not
Affiliates of Abbott; provided that neither TAP Holdings, Inc. nor any of its
subsidiaries may manufacture Product.

     1.2     "BULK DRUG SUBSTANCE" means the bulk form of Compound, suitable for
formulating into Finished Product.

     1.3     "BULK DRUG SUBSTANCE SPECIFICATIONS" means the written
specifications for the Bulk Drug Substance (including any raw materials or
intermediates required to manufacture such Bulk Drug Substance), which are
attached hereto as Exhibit 1.3, as modified from time to time pursuant to
Section 8.5.

     1.4     "cGMP" means the FDA's current good manufacturing practices, as
specified in 21 CFR Section 210 and the FDA's guidance documents applicable
thereto, and all successor regulations and guidance documents thereto.

     1.5     "COMPOUND" means FTC.

     1.6     "CONFIDENTIAL INFORMATION" means Confidential Information as
defined in Section 10.1.

     1.7     "DOLLARS" AND "$" means United States Dollars.

     1.8     "EFFECTIVE DATE" shall mean the date set forth in the introductory
paragraph of this Agreement.

     1.9     "FDA" means the United States Food and Drug Administration or any
successor entity thereto.

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     1.10    "FIELD OF USE" means the prevention and treatment of HIV and HBV
and any other uses for the Compound to which Triangle obtains or has obtained
rights from the Triangle Licensor.

     1.11    "FINISHED PRODUCT" means any finished pharmaceutical formulation
containing the Compound as an active ingredient, in packaged form.

     1.12    "FINISHED PRODUCT SPECIFICATIONS" means the written specifications
for each Finished Product (including any inactive ingredients used to
manufacture such Finished Product), which are attached hereto as Exhibit 1.12.

     1.13    "FTC" means (a) the (-) enantiomer with the chemical name (2R-cis)
-4-amino-5-fluoro-1-[2-(hydroxymethyl)-1,3-oxathiolan-5-yl]-2(1H)-pyrimidinone;
(b) any mixture of the (-) enantiomer described in Subsection 1.13(a) and the
(+) enantiomer with the chemical name (2S-cis)-4-amino-5-fluoro-1-[2-
(hydroxymethyl)-1,3-oxathiolan-5-yl]-2(1H)-pyrimidinone,

     ***     ;(c) any salts, esters (including, but not limited to, all 5'
phosphate esters) and N alkylated derivatives of any of the foregoing; or (d)
any and all polymorphs, hydrates and solvates of any of the foregoing. FTC is
exclusively licensed to Triangle by Emory University pursuant to a License
Agreement dated April 17, 1996, as amended on May 6, 1999 and on July 10, 2000
(the "FTC AGREEMENT") for use in the prevention and treatment of HIV and HBV
throughout the world.

     1.14    "HIV" means the human immunodeficiency virus.

     1.15    "HBV" means the hepatitis B virus.

     1.16    "KEY RAW MATERIALS" means *** and *** .

     1.17    "LEGAL REQUIREMENTS" means any and all federal, state, local,
national, and supranational laws, regulations, ordinances, orders and
requirements applicable to the Parties and their Affiliates in performance of
this Agreement, including without limitation, the following within the
Territory: the Prescription Drug Marketing Act of 1987, the Federal Food,

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Drug and Cosmetic Act, and all regulations and other requirements of the FDA or
any equivalent agency.

     1.18    "LOSSES" means any liabilities, costs, damages, judgments,
settlements and other reasonable out-of-pocket expenses (including legal
expenses).

     1.19    "MAA" means a Marketing Authorization Application submitted to the
European Agency for the Evaluation of Medicinal Products ("EMEA") to obtain
European Commission approval for the marketing of a Product in the European
Union and all subsequent related submissions thereto.

     1.20    "NDA" means, in respect of each commercially launched Product, an
approved New Drug Application filed by Triangle with the FDA and all subsequent
related submissions thereto.

     1.21    "PRIOR PRODUCTS" means all "Product" manufactured by Abbott under
the Previous  Agreement,  as the term "Product" is defined therein.  Triangle is
and shall  remain the sole owner of all Prior  Product in inventory at Abbott as
of the Effective Date.

     1.22    "PROCESS COST IMPROVEMENTS" means any cost reductions applicable to
the process used to manufacture Product.

     1.23    "PRODUCT" means any Bulk Drug Substance and, solely in respect of
Prior Products and the materials included in the Initial Campaign described in
Subsection 8.1, Finished Product.

     1.24    "PRODUCT PATENTS" means (a) the patents and patent applications
licensed to Triangle under the FTC Agreement; (b) any patents and patent
applications owned by or otherwise licensed to or controlled by Triangle (to the
extent sublicensing is permissible) during the Term which contain claims
covering or potentially covering the manufacture of the Compound or the Product
(including any intermediates or formulations thereof) within the Field of Use;
and (c) all substitutions, extensions, divisionals, continuations,
continuations-in-part,

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reissues, reexaminations, renewals, supplementary protection certificates or
foreign counterparts of such patents and patent applications identified in
sub-parts (a) and (b).

     1.25    "PRODUCT TECHNOLOGY" means the technical information, inventions,
discoveries, trade secrets, information, experience, data, formulas, procedures,
processes, know-how and results which (a) are licensed to Triangle under the FTC
Agreement; or (b) are owned by or otherwise licensed to or controlled by
Triangle (to the extent sublicensing is permissible) during the Term which are
necessary for the manufacture of the Compound or Product within the Field of
Use.

     1.26    "REASONABLE BEST EFFORTS" means a reasonable level of effort which
is consistent with that used by other pharmaceutical companies with respect to
other pharmaceutical products of comparable commercial value. Each Party shall
be entitled to exercise prudent and justified business judgment in fulfilling
its obligation to exercise its Reasonable Best Efforts under this Agreement.

     1.27    "SPECIFICATIONS" means, in respect of a given Product, the Bulk
Drug Specifications and/or Finished Product Specifications applicable thereto.

     1.28    "STANDARD MANUFACTURING COST" for a Product means *** standard
manufacturing cost calculated *** with respect to such Product according to ***
and generally accepted accounting principles applied in a consistent manner with
respect to all products of Abbott's Specialty Products Division as to Bulk Drug
Substance and of Abbott's Pharmaceuticals Products Division as to Finished
Product, including *** with the production of such Product, and giving effect to
all Process Cost Improvements.

     1.29    "TAXES" means any sales or use tax, excise or similar charge (other
than that assessed against income), license fee, value added, import or export
fees (e.g., custom duties), or other charges lawfully assessed or charged by a
governmental authority on the manufacture, sale or transportation of Product.

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     1.30    "TERM" shall have the meaning set forth in Section 14.1.

     1.31    "TERRITORY" means the entire world.

     1.32    "THIRD PARTY" means any Person that is not a Party or an Affiliate
of a Party.

     1.33    "TRIANGLE LICENSOR" means Emory University with respect to FTC.

                                   ARTICLE 2.

                                GRANT OF LICENSE

     2.1     TRIANGLE GRANT. Subject to the terms of this Agreement, Triangle
hereby grants Abbott a non-exclusive, *** worldwide license (including a
sub-license under the FTC Agreement) to utilize the Product Patents and the
Product Technology solely to make and have made the Compound and Products within
the Field of Use in the Territory as and when requested by Triangle during the
Term and to otherwise perform any duties and obligations that Abbott is required
or permitted to perform under this Agreement in the Territory.

     2.2     USE OF THIRD PARTIES. Except as provided in Section 19.2, Abbott
shall not have the right to grant sublicenses without the prior express consent
of Triangle, not to be unreasonably withheld, and, to the extent required, the
Triangle Licensor, in which event Triangle shall reasonably cooperate with
Abbott in its efforts to obtain the consent of the Triangle Licensor. No
sublicense granted by Abbott shall relieve Abbott of any obligation hereunder.

                                   ARTICLE 3.

                             MANUFACTURE AND SUPPLY

     3.1     BULK DRUG SUBSTANCE. Subject to the terms of this Agreement, during
the Term Abbott shall manufacture or cause to have manufactured all Product
requested by Triangle.

     3.2     FINISHED PRODUCT.

             (a)  Abbott and Triangle will negotiate in good faith and enter
     into a services and supply agreement whereby Triangle may request Abbott to
     provide packaging or

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     formulation services to produce Finished Product from Bulk Drug Substance
     made by Abbott or supplied by Triangle. The agreement will be modeled
     structurally upon this Agreement and will incorporate the Finished Product
     Specifications (subject to changes agreed by the Parties), include the
     pricing terms set forth below, establish commercially reasonable lead and
     delivery times for the services contemplated thereby, and have a duration
     concurrent with the Term of this Agreement. Abbott and Triangle will use
     their best efforts to enter into the agreement on or before *** . If the
     Parties have not entered into the agreement on or before that date, either
     Party may, at any time after that date, submit the terms not yet agreed to
     ADR (as defined in and pursuant to Section 19.3) for resolution, in which
     the Neutral shall be deemed empowered to resolve and establish the open
     terms, whereupon the Parties promptly will enter into the agreement as so
     resolved and established.

             (b)  The price for Finished Product in capsule or liquid form
     ordered on or prior to *** will be the unit prices set forth in Section
     8.1(b) in respect of the Initial Campaign, based on the Finished Product
     Specifications.

             (c)  The price for Finished Product ordered after *** will be ***
     percent (***%) of Abbott's Standard Manufacturing Cost for Finished
     Product, subject to adjustment under Subsection 3.2(d) and, as applied to
     Standard Manufacturing Cost for Finished Product, Article 8 below.

             (d)  For each calendar year of the Term, Abbott may recalculate its
     Standard Manufacturing Cost for Finished Product for the next calendar
     year, provided that no increase in any such Standard Manufacturing Cost
     shall exceed (i) for the 2003 calendar year, *** percent (***%) of the
     respective base costs for Finished Product in capsule or liquid form
     established under Subsection 8.1(b), and (ii) for the following years, the
     sum of (x) the actual increase in Abbott's direct cost of raw materials
     from the preceding calendar year, plus (y) the product determined by
     multiplying the ***

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     in the preceding calendar year by the *** , plus (z) any actual cost
     increases in the prior year pursuant to Sections 8.5, 8.6 and 8.9 not
     previously included in a Standard Manufacturing Cost recalculation. Abbott
     shall deliver such recalculated Standard Manufacturing Cost for the next
     year to Triangle by *** of the current year in a reasonably detailed form
     to include, without limitation, the cost attributed to each Standard
     Manufacturing Cost component and a reconciliation against the preceding
     calendar year's calculation.

                                   ARTICLE 4.

                               ORDERS FOR PRODUCT

     4.1     PURCHASE ORDERS. From time to time during the Term, Triangle shall
purchase Product at the applicable price by means of purchase orders submitted
to Abbott. Each purchase order shall be governed by the terms of this Agreement
and none of the terms or conditions of Triangle's purchase orders, Abbott's
acknowledgment forms or any other forms exchanged by the Parties shall be
applicable, except those, to the extent consistent with the terms set forth
herein, specifying quantity ordered, delivery locations and delivery schedule
and invoice information. All purchase orders for delivery of Product which
satisfy the lead and delivery time parameters set forth in Exhibit 4.1 attached
hereto shall be deemed accepted by Abbott. Abbott shall use its Reasonable Best
Efforts to supply Triangle with any Product in excess of this amount, if
requested. All other purchase orders must be accepted or rejected by Abbott, in
writing, by facsimile or air courier, within *** after receipt from Triangle. If
Abbott does not provide such notice of acceptance or rejection within *** , it
shall have been deemed to have accepted such purchase orders in full. All orders
for Product shall be placed in multiples of *** batch sizes (or such smaller
batch size as Abbott specifies in writing). Triangle shall cooperate with Abbott
upon request to review Triangle's non-binding anticipated requirements of
Product for any twelve (12) month period during the Term. Triangle may cancel
all or a part of any purchase order by providing Abbott written notice delivered
prior to the commencement of production by Abbott of Product covered by such
purchase order. In the event Triangle cancels a

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purchase order, Triangle will pay Abbott an amount equal to (a) *** percent
(***%) of Abbott's Standard Manufacturing Cost, excluding Abbott's direct and
actual costs for Key Raw Materials or other raw materials purchased by Abbott or
delivered by Triangle specifically for use in such purchase order, for the
cancelled portion of Product ordered on such purchase order, plus (b) Abbott's
direct and actual costs for Key Raw Materials or other raw materials purchased
by Abbott specifically for use in such purchase order. Triangle may, at its
option and its cost, request delivery of any such Key Raw Materials or other raw
materials covered thereby or any materials provided by Triangle, including Key
Raw Materials, chemical intermediates or Bulk Drug Substance, to Triangle or its
Third Party Designee or require Abbott to hold and store the same for Triangle
for use in satisfying future purchase orders issued by Triangle for Product.

     4.2     PRODUCTION AND DELIVERY SCHEDULE. Abbott will initiate production
under each purchase order and deliver Product in accordance with the lead and
delivery time parameters set forth in Exhibit 4.1. The final amounts of Product
delivered by Abbott under any one purchase order may vary from the amount set
forth on such purchase order by up to *** percent (***%), and Abbott shall
invoice Triangle in accordance with Article 8 for the actual amounts of Product
delivered.

     4.3     KEY RAW MATERIALS. Abbott shall use its Reasonable Best Efforts,
with Triangle's reasonable assistance, to acquire all necessary Key Raw
Materials at the best available prices with all available discounts and without
unreasonable delay of the manufacturing process. Abbott also will permit
Triangle, at Triangle's request, to provide Key Raw Materials or any necessary
chemical intermediates or to prepay Abbott for Key Raw Materials, in which case
Abbott promptly will receive or acquire such Key Raw Materials or chemical
intermediates (in cooperation with Triangle) and thereafter hold and store the
same for Triangle for use in satisfying future purchase orders issued by
Triangle for Product.

     4.4     STORAGE. Notwithstanding any provision in this Agreement to the
contrary, Abbott is not obligated to hold or store any Triangle materials except
those intended by Triangle

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for use by Abbott in manufacturing Product or, in any event, for more than ***.
Triangle will cooperate with Abbott in good faith to recover or make other
arrangements for the storage of any such materials in excess of that period.

                                   ARTICLE 5.

                             MANUFACTURE OF PRODUCT

     5.1     MANUFACTURING STANDARDS. Abbott shall manufacture all Product in
accordance with all Legal Requirements and cGMP and in conformance with the
Specifications. The Specifications may be modified from time to time by written
agreement of the Parties without the necessity of amending this Agreement.

     5.2     RIGHT TO AUDIT. Abbott shall permit Triangle or its Third Party
designee access during reasonable business hours and after reasonable notice, to
those areas of Abbott's manufacturing facilities where Product is manufactured,
stored and handled and to manufacturing records of Product manufactured by
Abbott so that Triangle may perform a quality assurance audit of such facilities
and activities. Any such Third Party designee must be subject, as to information
provided in or observed during any such audit, to a confidentiality obligation
to Abbott imposing limitations on disclosure at least as restrictive as those on
Triangle in Article 10.

     5.3     CERTIFICATES OF ANALYSIS AND BATCH RECORDS. Abbott shall be
responsible for releasing Product supplied by Abbott hereunder for secondary
manufacturing or packaging and shall provide Triangle with a certificate of
analysis in the form attached as Exhibit 5.3 for each shipment of Product which
is released for secondary manufacturing or packaging. Each certificate of
analysis will certify that Product covered thereby was manufactured in
accordance with all cGMP and meets the Specifications, and will include any
out-of-Specification deviations or investigations which occurred during the
manufacture and testing of such Product. Abbott shall provide a certificate of
analysis to Triangle for each shipment of Product delivered under this
Agreement. Full batch documentation including batch production records, and
manufacturing and analytical procedures shall be available for review by
Triangle or its Third

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Party designee on site at the manufacturing facility used by Abbott, during
regular business hours and upon reasonable advance notice from Triangle. Any
such Third Party designee must be subject, as to information provided in or
observed during any such audit, to a confidentiality obligation to Abbott
imposing limitations on disclosure at least as restrictive as those on Triangle
in Article 10.

     5.4     INSPECTIONS. In the event any Abbott manufacturing facility
producing Product hereunder is inspected by representatives of any federal,
state, local or foreign regulatory agency in connection with the manufacture of
Product, Abbott shall notify Triangle immediately (by telephone, e-mail to ***
or such other e-mail address as Triangle specifies in writing from time to time
and, if possible, in writing) upon learning of such inspection, and shall supply
Triangle with copies of any correspondence or portions of correspondence which
relate to the Product. Abbott will provide Triangle with daily updates of such
inspection and Triangle may send one representative to such manufacturing
facility to participate in the close-out visit to the extent it relates to the
Product, subject to Abbott's consent, not to be unreasonably withheld. Abbott
also will permit one (1) Triangle representative to participate in any
pre-approval inspection concerning the Product. Any such Triangle representative
who is not an employee of Triangle must be subject, as to information provided
in or observed during any such inspection, to a confidentiality obligation to
Abbott imposing limitations on disclosure at least as restrictive as those on
Triangle in Article 10. In the event Abbott receives any regulatory letter or
comments from any federal, state, local or foreign regulatory agency in
connection with its manufacture of the Product including, but not limited to,
receipt of a Form 483 (Inspectional Observations) or a Warning Letter, Abbott
shall provide Triangle with a copy thereof and a copy of each response for
Triangle review prior to submission of such response and opportunity to comment
where practicable, provided that Abbott shall have the right to redact or
withhold any portion of such copies which are not related to the Product.

     5.5     QUALITY ASSURANCE. In addition to the procedures set forth in this
Agreement, for each Product hereunder the Parties shall mutually agree upon a
revision to the intercompany

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quality agreement established under the Previous Agreement to address the
following regulatory and quality issues and identify the responsible Party
therefor: cGMP compliance, quality control, quality assurance, regulatory
compliance, dispute resolution, change management, product and process
validation, annual product review, annual report, drug listing and product
returns. The revised intercompany quality agreement shall be finalized within
thirty (30) days of the Effective Date and shall be developed by conforming the
current quality agreement, a copy of which is attached as Exhibit 5.5 to this
Agreement, to reflect the manufacturing relationship of the Parties contemplated
by this Agreement. Notwithstanding anything to the contrary in the Termination
Agreement, the current quality agreement shall remain in effect, solely for
purposes of this Agreement, until a new quality agreement is executed by the
Parties.

                                   ARTICLE 6.

                              ACCEPTANCE OF PRODUCT

     6.1     FAILURE TO MEET SPECIFICATIONS.

             (a)  Triangle shall have a period of *** from the date of receipt
     of the certificate of analysis accompanying each shipment of Product
     manufactured by Abbott to reject any shipment of Product on the grounds
     that it does not conform to the Specifications in any manner which could
     reasonably be detected by Triangle within such period. Triangle shall have
     the right to reject any non-conforming Product. If Triangle rejects Product
     pursuant to this Section 6.1, Triangle shall, at Abbott's option and
     expense, destroy or return to Abbott for its disposal the rejected Product
     or allow Abbott to retain possession of the rejected Product; provided any
     disposal or further use by Abbott of such rejected Product must be
     reasonably acceptable to Triangle. Abbott shall thereupon, at Triangle's
     option and without limiting any other available remedy (but subject to the
     limitation of liability set forth in this Agreement), and at Abbott's
     expense, either (i) replace such nonconforming Product in accordance with
     the delivery times set forth on Exhibit 4.1, or (ii) credit or refund
     Triangle's account, at Triangle's option, for

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     the price invoiced for such nonconforming Product if payment thereof has
     previously been made by Triangle for such Product or for any Key Raw
     Materials used in manufacturing such Product which were provided or funded
     by Triangle.

             (b)  If a dispute arises as to whether Product manufactured by
     Abbott conforms with the Specifications and the Parties are unable to
     resolve the dispute, the matter shall be referred to an independent Third
     Party testing laboratory located in the United States and agreed to by the
     Parties. The testing laboratory shall test the Product in question for
     conformance with the Specifications and shall provide results to Triangle
     and Abbott. The decision of the testing laboratory regarding conformance
     with the Specifications shall be final and binding on the Parties;
     provided, that Triangle shall not be obligated to release Product for
     distribution which it determines does not meet Specifications. Triangle may
     withhold payment for any such Product pending the outcome of the decision
     of the testing laboratory. The cost of the testing laboratory shall be paid
     by the Party found to be in error.

     6.2     STABILITY TESTING AND ANALYTICAL METHODS. Abbott shall perform
definitive stability testing (i.e., final route and source for the initial NDA
and MAA applications) on Product manufactured by Abbott per FDA and
International Conference for Harmonization guidelines and any other applicable
cGMP and such ongoing stability testing as required to support commercial
stability monitoring of the Product, in each circumstance using the stability
protocol attached as Exhibit 6.2, as amended from time to time by mutual
agreement of the Parties in writing. Any costs associated with such stability
testing shall be included in Abbott's calculation of Standard Manufacturing
Cost.

                                   ARTICLE 7.

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                              SHIPMENT AND DELIVERY

     Abbott shall prepare all Product manufactured by it for shipment to
Triangle or its Third Party designees and shall, if directed by Triangle, ship
such Product immediately upon release of such Product in accordance with the
appropriate purchase order. All Product to be finished by Abbott shall be
delivered C.I.F. Abbott's or its Affiliates facilities, and all other Product
shall be delivered F.O.B. Abbott's shipment point, as identified in the
corresponding purchase order.

                                   ARTICLE 8.

                                     PRICE

     8.1     INITIAL CAMPAIGN.

             (a)  Abbott shall supply to Triangle initial amounts of Bulk Drug
     Substance at the price and in accordance with the schedule set forth below
     and the Bulk Drug Substance Specifications (the "INITIAL CAMPAIGN"). Within
     *** of execution of this Agreement, Triangle may increase the quantity of
     Bulk Drug Substance to be delivered under the Initial Campaign, by written
     notice to Abbott, and any such additional quantity shall be included in the
     Initial Campaign, up to the maximum amount of an additional *** of Bulk
     Transition Inventory (as defined below).

                      QUANTITY                  DATE OF DELIVERY

                    *** kilograms                      ***
                    *** kilograms                      ***

             (b)  Abbott will also finish all Prior Product in inventory at
     Abbott as of the Effective Date (comprising approximately ***) ("Transition
     Inventory") requested by Triangle to be finished and the Initial Campaign
     Bulk Drug Substance (including any Permitted Increase) into Finished
     Product in accordance with the Finished Product Specifications, for
     delivery as follows, with a view toward enabling launch as soon as possible
     after FDA approval: (i) by ***, Finished Product from *** of Transition
     Inventory, finished according to the clinical testing specifications in
     effect as of the Effective

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     Date, or according to subpart (ii) below to the extent Triangle elects to
     defer any portion thereof for commercial use; (ii) by ***, Finished Product
     from the first *** lot of the remainder of the Transition Inventory and the
     *** component of the Initial Campaign Bulk Drug Substance, provided Abbott
     has received final label and insert inventory by *** (subject to a
     day-for-day delay thereafter), and all subsequent lots within *** after
     delivery of the first; (iii) by ***, Finished Product from the ***
     component of the Initial Campaign Bulk Drug Substance; and (iv) by ***
     after manufacture of any Permitted Increase Bulk Drug Substance in
     accordance with Subsection 8.1(a) (or later if requested by Triangle),
     Finished Product from such Permitted Increase. Delivery of Finished Product
     under subparts (ii), (iii) and (iv) by the dates stated assumes Triangle
     notifies Abbott of Finished Product forms on or before ***, and ***
     respectively, and will be delayed day-for-day to reflect any later
     notification from Triangle. The price for Finished Product in liquid and
     capsule form produced under this Subsection 8.1(b) will be *** percent
     (***%) of the sum of (A) Abbott's respective Standard Manufacturing Costs
     for Finished Product, plus (B) any necessary incremental non-standard costs
     or expenses incurred by Abbott to achieve the delivery schedule established
     in this subsection (such sum, the "Adjusted Finishing Base Cost"), provided
     that such Adjusted Finishing Base Cost shall in no event exceed *** ($***)
     for capsule form per thirty (30) capsule bottle unit and *** ($***) for
     liquid form per one hundred and seventy (170) mL bottle unit.
     Notwithstanding the foregoing, Triangle shall bear the cost to replace any
     label or insert materials previously cleared by Triangle to Abbott for
     printing, if replacement is required due to label or insert changes after
     such clearance.

     8.2     PRICING.

             (a)  The price for the Bulk Drug Substance specified in Section 8.1
     (other than any Permitted Increase) will be *** ($***) per kilogram.

             (b)  The price for additional Bulk Drug Substance ordered on or
     prior to ***

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             (including any Permitted Increase) will be *** dollars ($***) per
     kilogram.

             (c) The price for additional Bulk Drug Substance ordered after ***
     will be *** percent (***%) of Abbott's Standard Manufacturing Cost for Bulk
     Drug Substance, subject to adjustment under Subsection 8.2(d) and Sections
     8.9 and 8.10 below.

             (d) For each calendar year of the Term, Abbott may recalculate its
     Standard Manufacturing Cost for Bulk Drug Substance for the next calendar
     year, provided that no increase in any Standard Manufacturing Cost shall
     exceed (i) for the 2003 calendar year, *** dollars ($***), and (ii) for the
     following years, *** , plus (y) *** , plus (z) any cost increase pursuant
     to Sections 8.5, 8.6 and 8.9 not previously included in a Standard
     Manufacturing Cost recalculation. Abbott shall deliver such recalculated
     Standard Manufacturing Cost for the next year to Triangle by *** of the
     current year in a reasonably detailed form to include, without limitation,
     the cost attributed to each Standard Manufacturing Cost component and a
     reconciliation against the preceding calendar year's calculation.

     8.3     NON-STANDARD EQUIPMENT COSTS. If Triangle requests that Abbott
implement non-standard, specialized equipment (other than any used by Abbott for
the manufacture of Product under the Previous Agreement) in connection with a
change in the Specifications pursuant to Section 8.5, Triangle shall, at
Triangle's option and cost, purchase such equipment or enter into a rental
agreement to loan such equipment to Abbott. Any corresponding actual and direct
cost(s) of Abbott shall be reimbursed by Triangle. Such specialized equipment
shall be used exclusively for manufacturing of Product hereunder or, if utilized
for other products, such cost(s) shall be prorated accordingly. Abbott shall
bill Triangle for such cost(s) after Abbott installs the equipment. This Section
8.3 shall not apply to any replacement equipment purchased by Abbott for any
reason.

     8.4     AUDIT. Triangle shall have the right to have a Triangle or
independent accountant designated by Triangle verify Abbott's costs including,
without limitation, the calculation and

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verification of any Standard Manufacturing Cost, any Process Cost Improvements
and any cost(s) incurred or claimed under Sections 8.3, 8.5 and 8.6 of this
Agreement.

     8.5     SPECIFICATIONS MODIFICATIONS. The Specifications may be modified
from time to time by written agreement signed by an authorized representative of
each Party without the necessity of amending this Agreement. If such
modifications alter Abbott's actual cost to manufacture any Product, any
corresponding actual and direct cost(s) of Abbott shall be reflected in Abbott's
calculation of its Standard Manufacturing Cost for Bulk Drug Substance for the
next following year. If such modification results in the requirement to
reprocess and/or retest otherwise acceptable Product, any additional costs
incurred by Abbott in such reprocessing and/or retesting shall be reimbursed by
Triangle upon submission by Abbott of documentation of such costs.
Notwithstanding the foregoing, Abbott will bear all costs described in this
Section in respect of any such changes in the Specifications required by the
FDA, EMEA or any other regulatory authority for or in the course of initial
approval of Triangle's NDA and MAA for FTC. The revised Specifications shall not
become effective until the Parties agree on any costs caused by such modified
specifications.

     8.6     MODIFICATION OF STABILITY PROTOCOL. Triangle may modify the
stability protocol referenced in Section 6.2. If such modifications alter
Abbott's cost to manufacture or supply any Product, any corresponding actual and
direct cost(s) of Abbott shall be reflected in Abbott's calculation of its
Standard Manufacturing Cost for Bulk Drug Substance for the next following year.
Notwithstanding the foregoing, Abbott will bear all costs described in this
Section in respect of any such changes in the stability protocol required by the
FDA, EMEA or any other regulatory authority for or in the course of initial
approval of each of Triangle's NDA and MAA for FTC. Such modified stability
protocol shall become effective when the Parties agree upon such costs.

     8.7     PAYMENT OF INVOICES. Abbott shall invoice Triangle on a calendar
quarter basis and Triangle shall pay all such invoices issued under this
Agreement net *** from the date of invoice, unless the Product covered by such
invoice is rejected pursuant to Section 6.1. In

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addition, Triangle will pay Abbott *** Dollars ($***) for Bulk Drug Substance
supplied pursuant to the Previous Agreement. Triangle shall pay *** Dollars
($***) to Abbott upon execution of this Agreement. The remaining *** Dollars
($***) shall be paid to Abbott on or before ***.

     8.8     INTEREST CHARGE AND TAXES. Without limiting either Party's rights
to pursue any other remedies at law or in equity, if Triangle underpays or
otherwise fails to pay any payment required under this Agreement within *** of
the permitted payment period therefor, then, unless such discrepancy resulted
from the failure of Abbott to supply accurate or complete information, Triangle
shall pay annually simple interest on such amount at an annual rate equal to the
lesser of the legal limit or *** percent (***%) until the date such payment is
paid in full. Any Taxes lawfully assessed or charged on the manufacture, sale or
transportation of Product sold pursuant to this Agreement shall be paid by
Triangle.

     8.9     PROCESS CHANGES/COST IMPROVEMENTS. From time to time, Triangle may
request Abbott to make process changes or cost improvements to the manufacturing
process for the Product, and Abbott agrees to use reasonable efforts to
implement all such changes or improvements as soon as possible, provided that
the Parties first agree on any costs associated with such changes or
improvements, which, unless otherwise agreed by the Parties in writing, will be
funded entirely by Triangle. Abbott will recalculate its Standard Manufacturing
Cost for Bulk Drug Substance for the following calendar year to reflect such
process change or Process Cost Improvement, except that if such process change
or Process Cost Improvements requires a regulatory filing and a related process
validation run, Abbott will recalculate its Standard Manufacturing Cost for Bulk
Drug Substance for the current year as soon as practical after validation,
effective beginning with the validation runs.

     8.10    PROVISION OF KEY RAW MATERIALS AND INTERMEDIATES. From time to
time, Triangle may provide Abbott with Key Raw Materials or chemical
intermediates for use under a purchase order for Product that Abbott shall use
as directed by Triangle to satisfy such purchase order. Abbott will reduce the
invoice price for Product covered by any invoice for which Triangle has provided
Abbott such Key Raw Materials or chemical intermediates, by an amount

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equal to *** percent (***%) of Abbott's corresponding Standard Manufacturing
Cost allocation to such Key Raw Materials or chemical intermediates..

                                   ARTICLE 9.

                        TRIANGLE'S REGULATORY SUBMISSIONS

     9.1     NDA AND MAA. Triangle will submit its original NDA, MAA and any
other documentation required under any regulatory filings for Product
referencing Abbott as Bulk Drug Substance and Finished Product supplier and
Abbott will provide Triangle with all required documentation, including
development and analytical reports to support the applications.

     9.2     ABBOTT DATA. Abbott shall provide to Triangle, in a timely manner
all necessary data in a format suitable for regulatory submissions to support
the review and approval of each Product's NDA, MAA, and other regulatory
filings, including all development and analytical reports required by any
regulatory agency including the FDA and EMEA to support Bulk Drug Substance and
Finished Product manufacture, review, submissions, approval and inspections.
Abbott shall use, and shall cause its Affiliates to use, Reasonable Best Efforts
to be prepared timely for any FDA pre-approval inspection of the manufacturing
facilities used for the purposes of this Agreement.

     9.3     ABBOTT'S RIGHT TO REVIEW. Abbott shall have the right to review
those portions of Triangle's proposed regulatory submissions relating to
Abbott's packaging or manufacturing procedures for the Product before the
submissions are filed with appropriate regulatory agencies. Abbott shall
complete its review of the submissions and provide comments within *** after
receipt of a proposed regulatory submission. Triangle and Abbott shall consult
with each other in responding to questions from the regulatory agencies
regarding Triangle's submission(s) for Product. Abbott agrees that Triangle
shall be the sole owner of any regulatory submission.

                                   ARTICLE 10.

                        CONFIDENTIALITY AND NONDISCLOSURE

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     10.1    CONFIDENTIALITY OBLIGATION. Except as permitted below, each of
Abbott and Triangle (the "RECEIVING PARTY") shall keep strictly confidential any
information disclosed in writing, orally, visually or in any other manner by the
other Party (the "DISCLOSING PARTY") or otherwise made available to the
Receiving Party which the Disclosing Party considers to be and treats as
proprietary or confidential ("CONFIDENTIAL INFORMATION"). Without limiting the
generality of the foregoing, all proprietary information concerning the
Disclosing Party's business, operations, suppliers, products, product
manufacture, sale, marketing or distribution, trade secrets and intellectual
property shall be considered Confidential Information by the Receiving Party.
Any data or other information relating to or resulting from the clinical trials
of the Product shall be deemed to be Confidential Information of Triangle. The
Disclosing Party shall use commercially reasonable efforts to designate any
written Confidential Information disclosed to the other Party as Confidential
Information by prominently marking it "confidential", "proprietary" or the like,
provided, that the failure to so mark shall not exclude such written information
from the provisions of this Article 10. "Confidential Information" shall not
include information:

             (a)  which is or becomes generally available to the public other
     than as a result of disclosure thereof by the Receiving Party;

             (b)  which is lawfully received by the Receiving Party on a
     nonconfidential basis from a Third Party that is not itself under any
     obligation of confidentiality or nondisclosure to the Disclosing Party or
     any other Person with respect to such information;

             (c)  which by written evidence can be shown by the Receiving Party
     to have been independently developed by or for the Receiving Party; or

             (d)  which the Receiving Party establishes by competent proof was
     in its possession at the time of disclosure by the other Party and was not
     acquired, directly or indirectly from the other Party.

     10.2    NONDISCLOSURE OF CONFIDENTIAL INFORMATION. The Receiving Party
shall use Confidential Information solely for the purposes of this Agreement and
shall not disclose or

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disseminate any Confidential Information to any Third Party at any time without
the Disclosing Party's prior written consent, except for disclosure to those of
its directors, officers, employees, accountants, attorneys, advisers, permitted
sublicensees, and agents whose duties reasonably require them to have access to
such Confidential Information and, in the case of Triangle, disclosure to the
Triangle Licensor and potential and actual business partners (including any
Third Party with which Triangle collaborates in the development, registration,
manufacture, use or sale of the Compound or Product), provided that such
directors, officers, employees, accountants, attorneys, advisers, agents, the
Triangle Licensor and business partners are required to maintain the
confidentiality of such Confidential Information to the same extent as if they
were Parties hereto.

     10.3    EXCEPTION. The foregoing confidentiality and nondisclosure
obligations shall not apply to information which is required to be disclosed by
law or by regulation; provided, that (a) the Receiving Party gives the
Disclosing Party reasonable advance notice of the disclosure, to the extent
reasonably practicable and legally permissible; (b) the Receiving Party uses
reasonable efforts to resist and limit disclosing the Confidential Information;
(c) the Receiving Party reasonably cooperates with the Disclosing Party on
request to obtain a protective order or otherwise limit the disclosure; and (d)
upon the reasonable request of the Disclosing Party, the Receiving Party shall
provide a letter from its counsel confirming that the Confidential Information
is, in fact, required to be disclosed.

     10.4    INJUNCTIVE RELIEF. The Parties acknowledge that either Party's
breach of this Article 10 may cause the other Party irreparable injury for which
it would not have an adequate remedy at law. In the event of a breach, the
non-breaching Party shall be entitled to injunctive relief in addition to any
other remedies it may have at law or in equity.

     10.5    SCIENTIFIC AND OTHER PUBLICATIONS. Notwithstanding anything herein
to the contrary, it is the understanding of each Party that scientific,
scholarly and other related publications or presentations concerning the
development of the Compound and the Product including their pre-clinical and
clinical development, shall emanate solely from Triangle and the trials and
studies sponsored by Triangle and that, as against Abbott, Triangle shall have
full

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control over the preparation, review and approval of such publications and
presentations, which publications and presentations shall not be restricted
hereunder.

     10.6    SURVIVAL. The confidentiality and nondisclosure obligations of this
Article 10 shall survive the expiration or termination of this Agreement and
remain in effect for a period of *** years following the expiration or
termination of this Agreement.

                                   ARTICLE 11.

                                   WARRANTIES

     11.1    TRIANGLE WARRANTY. Triangle warrants that it has the right to grant
Abbott the license granted in Section 2.1 of this Agreement.

     11.2    ABBOTT WARRANTY. Abbott warrants to Triangle that Product and Prior
Product delivered to Triangle pursuant to this Agreement and the Previous
Agreement shall:

             (a)  at the time of shipment to Triangle or its designees (i)
     comply with (or have complied with, as to Prior Products) the
     Specifications, and (ii) be owned by Triangle free from all liens and
     encumbrances of any kind, subject only to the payment by Triangle of the
     purchase price therefor; and

             (b)  be (or have been, as to the Prior Products) manufactured in
     compliance with the requirements of all Legal Requirements and cGMP,
     including, but not limited to, those relating to the management and
     disposal of hazardous wastes. For purposes of the immediately preceding
     sentence, "hazardous wastes" shall be deemed to include any hazardous or
     toxic waste, substance or material as defined in any federal, state or
     local statute, law, ordinance, code, rule or regulation.

     11.3    DEBARMENT WARRANTY. Abbott represents and warrants to Triangle that
it is not debarred and has not and will not knowingly use in any capacity the
services of any Person debarred under subsections 306(a) or (b) of the Generic
Drug Enforcement Act of 1992. If at any time this representation and warranty is
no longer accurate, Abbott shall immediately notify Triangle of such fact.

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     11.4    NO OTHER WARRANTIES. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, EACH PARTY MAKES NO OTHER WARRANTIES OR REPRESENTATIONS, INCLUDING
FITNESS FOR PURPOSE INTENDED OR MERCHANTABILITY, WHETHER EXPRESS OR IMPLIED.

                                   ARTICLE 12.

                             LIMITATION ON LIABILITY

     EXCEPT AS OTHERWISE PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR ANY
SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL LOSSES ARISING OUT OF OR RELATING
TO THIS AGREEMENT; PROVIDED HOWEVER, THIS LIMITATION SHALL NOT APPLY TO LOSSES
ARISING FROM THIRD PARTY CLAIMS FOR WHICH A PARTY IS INDEMNIFIED UNDER THE TERMS
OF THIS AGREEMENT.

                                   ARTICLE 13.

                                 INDEMNIFICATION

     13.1    INDEMNIFICATION

             (a)  INDEMNIFICATION BY TRIANGLE. Except as may be otherwise
     provided herein, Triangle shall defend, indemnify and hold Abbott, all of
     its directors, officers and employees (collectively the "ABBOTT
     INDEMNITEES") harmless from and against all Losses incurred in connection
     with any Third Party suits, claims or causes of action arising out of or
     resulting from:

                  (i)    The development, testing, use, manufacture,
             distribution, promotion, marketing, sale, packaging, labeling,
             handling, storage, and/or disposal of Product;

                  (ii)   Triangle's breach of any representation, warranty,
             covenant, or other obligation provided for in this Agreement;

                  (iii)  The negligence, recklessness or willful misconduct of
             Triangle and its directors, officers or employees; or

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                  (iv)   Any patent infringement claim arising from the
             utilization of process technology other than Abbott Patents or
             Abbott Technology (as those terms are defined in the Termination
             Agreement) in the manufacture, importation, use or sale of a
             Product.

Provided, however, that Triangle shall not be required to indemnify the Abbott
Indemnitees to the extent that any Losses arise out of or result from: (A) the
negligence, recklessness or willful misconduct of any of the Abbott Indemnitees,
(B) utilization of the Abbott Patents or Abbott Technology for the manufacture
of Product or Prior Products, (C) continued manufacture in a country after
receipt of notice from Triangle indicating that the manufacture of such Product
in such country should be terminated because such further manufacture would
constitute willful infringement of a valid and issued patent in such country
and/or (D) any breach by Abbott of this Agreement.

             (b)  INDEMNIFICATION BY ABBOTT. Except as may be otherwise provided
     herein, Abbott shall defend, indemnify and hold Triangle, its directors,
     officers and employees and the Triangle Licensor (collectively the
     "TRIANGLE INDEMNITEES") harmless from and against all Losses incurred in
     connection with any Third Party suits, claims or causes of action arising
     out of or resulting from:

                  (i)    Abbott's breach of any representation, warranty,
             covenant, or other obligation provided for in this Agreement;

                  (ii)   The negligence, recklessness or willful misconduct of
             Abbott, its directors, officers or employees, including their
             directors, officers or employees; or

                  (iii)  Any patent infringement claim arising from Abbott's or
             its Affiliates or permitted sublicensee's utilization of the Abbott
             Patents or Abbott Technology for the manufacture of Product or
             Prior Product.

Provided, however, that Abbott shall not be required to indemnify the Triangle
Indemnitees to the extent that any Losses arise out of or result from: (A) the
negligence, recklessness or willful misconduct of any Triangle Indemnitee;
and/or (B) any breach by Triangle of this Agreement.

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     13.2    INDEMNIFICATION PROCEDURE. Any Abbott Indemnitee or Triangle
Indemnitee, as the case may be, shall notify Triangle or Abbott (the
"INDEMNIFYING PARTY") promptly in writing of an indemnifiable claim or cause of
action under Section 13.1(a) or 13.1(b) upon receiving notice or being informed
of the existence thereof. The Indemnifying Party shall assume, at its cost and
expense, the sole defense of such claim or cause of action through counsel
selected by the Indemnifying Party and reasonably acceptable to the other Party.
The Indemnifying Party shall maintain control of such defense, including any
decision as to settlement; provided that, in the event that the Indemnifying
Party does not diligently defend such claim or cause of action on a timely
basis, then, without prejudice to any other rights and remedies available to the
other Party under this Agreement, the other Party may take over such defense
with counsel of its choosing at the Indemnifying Party's cost and expense. The
other Party may, at its option and expense, participate in the Indemnifying
Party's defense, and if the other Party so participates, the Parties shall
cooperate with one another in such defense. The Indemnifying Party shall bear
the total costs of any court award or settlement of such claim or cause of
action and all other costs, fees and expenses related to the resolution thereof
(including reasonable attorneys' fees except for attorneys' fees for which the
other Party is responsible in the event that the other Party participates in the
Indemnifying Party's defense of such claim or cause of action). The
indemnification obligations herein shall apply on a first dollar basis without
limitation or reduction due to any deductible or self-insured retention which
Triangle or Abbott respectively may have under their respective insurance
coverage.

                                   ARTICLE 14.

                              TERM AND TERMINATION

     14.1    EFFECTIVE DATE AND TERMINATION DATE. The term of this Agreement
shall commence on the Effective Date and shall continue until *** unless
terminated sooner in accordance with Section 14.2 (the "TERM"); provided,
however, that at Triangle's request, provided no later than ***, Abbott will
negotiate in good faith a *** extension of

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the Term of this Agreement on terms and conditions no less favorable to Triangle
than those under the Previous Agreement.

     14.2    TERMINATION. Triangle may terminate this Agreement at any time, for
any or no reason, upon sixty (60) days written notice to Abbott. In addition,
upon the occurrence of the following events, either Party may terminate this
Agreement by giving the other Party *** days prior written notice:

             (a)  Upon the bankruptcy or insolvency of the other Party; or

             (b)  Upon the material breach of any provision of this Agreement by
     the other Party if the breach is not remedied prior to the expiration of
     such sixty (60)-day notice period, or if the breach is of a type that
     cannot be remedied within sixty (60) days, then a remedy promptly commenced
     and diligently pursued until complete remediation.

     14.3    EFFECT OF TERMINATION. If this Agreement is terminated as a result
of Abbott's breach, other than documents required to be returned for regulatory
compliance, Abbott shall use its Reasonable Best Efforts to destroy all data,
writings and other documents and tangible materials supplied to Abbott by
Triangle or the Triangle Licensor. Abbott shall further provide Triangle with
full and complete copies of all toxicity, efficacy, and other data generated by
Abbott or its permitted sublicensees, contractors or agents in the course of
Abbott's efforts to obtain governmental approval for the sale of the Product,
including but not limited to any registration filings or other documents filed
with any government authority. Triangle and the Triangle Licensor shall be
authorized to cross-reference any such registration filings made in the
Territory where permitted by law. Triangle and the Triangle Licensor shall be
authorized to provide data pertaining to such patents and technology to any
Third Party with a bona fide interest in licensing such technology. Such data
shall be provided on a confidential basis; provided, however, that if such Third
Party enters into a license with Triangle and the Triangle Licensor, such Third
Party shall be free to use such data for all purposes, including to obtain
government approvals to sell Product containing any Compound. Abbott shall
cooperate reasonably (at no unreimbursed expense to Abbott) with any Third Party
licensee of Triangle or the Triangle Licensor in pursuing governmental approval
to sell any Product containing any

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Compound, including but not limited to, permitting such Third Parties to
cross-reference any regulatory filings filed with or any product approval
obtained in any foreign countries (provided that any expenses incurred at the
request of Triangle are reimbursed). Upon expiration or termination of this
Agreement, whichever is sooner, for any reason, Abbott shall manufacture and
deliver in accordance with the appropriate purchase order, and Triangle shall
purchase in accordance with the provisions hereof, any and all amounts of
Product ordered by Triangle hereunder on purchase orders issued to Abbott prior
to such expiration or termination.

     14.4    SURVIVAL. All rights granted and obligations undertaken by the
Parties hereunder shall terminate immediately upon the event of any termination
or expiration of this Agreement, except for the following which shall survive on
a Product-by-Product basis according to their terms:

             (a)  The obligation of each Party to pay to the other Party any and
                  all payments accrued under this Agreement prior to such
                  termination or expiration;

             (b)  The limitations on liability of Article 12;

             (c)  The confidentiality and nondisclosure obligations of Article
                  10;

             (d)  The indemnification obligations of Article 13;

             (e)  The insurance obligations of Article 16; and

             (f)  The provisions of Articles 11 and 18 and Sections 14.3, 19.3,
                  19.6, 19.10, 19.11 and 19.12.

In addition, expiration or termination of this Agreement shall not affect the
remedies of the Parties otherwise available at law or in equity in relation to
any rights accrued under this Agreement prior to expiration or termination.

     14.5    NONEXCLUSIVE RIGHTS AND REMEDIES. Except as otherwise set forth in
this Agreement, none of the various rights and remedies of the Parties provided
under this Agreement are exclusive and all are in addition to any other rights
and remedies provided by law or under this Agreement.

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                                   ARTICLE 15.

              ADVERSE EVENTS, RECALLS, AND OTHER REGULATORY MATTERS

     15.1    ADVERSE REACTION REPORTING. Abbott shall keep Triangle promptly
informed of information in or coming into its possession or control concerning
safety, adverse events, side effects, injury, toxicity or sensitivity reaction
and incidents of severity thereof ("ADVERSE EVENTS") associated with commercial
and clinical uses, studies, investigations, handling, manufacturing, storage or
tests of Product. Triangle shall keep Abbott promptly informed of information in
or coming into its possession or control concerning material Adverse Events
associated with the manufacture of Product. Triangle shall have responsibility
for responding to all such information except as set forth below and Abbott
agrees to provide reasonable assistance to Triangle in the course thereof.

     15.2    PRODUCT COMPLAINTS AND INQUIRIES. Abbott shall promptly provide
Triangle with copies of all complaints or other medical or technical
Product-related inquiries from consumers, physicians or other Third Parties
received by Abbott related to Product manufactured under this Agreement and
shall maintain files of the same in accordance with applicable regulatory
requirements. Triangle shall have responsibility, with Abbott's reasonable
assistance, for responding to all complaints relating to the manufacture of such
Product. Triangle shall have responsibility, with Abbott's reasonable
assistance, for reporting all complaints relating to such Product and preparing
responses thereto to the FDA, EMEA and any other regulatory authority,
including, but not limited to, complaints relating to the manufacture of such
Product, provided that Abbott has the ability to cooperate and consult with
Triangle in preparing such responses.

     15.3    PRODUCT RECALL. In the event (a) any government authority issues a
request, directive or order that Product manufactured under this Agreement be
recalled, (b) a court of competent jurisdiction orders such a recall, or (c)
Triangle and/or Abbott reasonably determine after consultation with each other
that such Product should be recalled or otherwise removed from the market, the
Parties will determine and Abbott, in cooperation with Triangle, will take all
appropriate corrective actions, including administering any necessary recalls.
Triangle shall have the sole authority to decide whether to commence a recall or
removal of such Product. In the

                                       28
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event that such recall results from the failure of such Product to meet the
Specifications, and such failure could not reasonably be detected by Triangle
within the *** acceptance period set forth in Section 6.1, Abbott shall be
responsible for all expenses of such recall or removal. In other cases, Triangle
shall be responsible for all expenses of such recall or removal. For the
purposes of this Agreement, the expenses of any recall or removal shall include
the expense of notification and destruction or return of the recalled or removed
Product.

     15.4    GOVERNMENT CONTACT REPORTING. Each Party shall promptly notify the
other Party upon being contacted by the FDA, EMEA or any other federal, state,
or local governmental agency for any material regulatory purpose pertaining to
this Agreement or to the Product. Except as set forth above, Abbott shall not
respond to the FDA or such governmental agency before consulting with Triangle,
unless under the circumstances pursuant to which FDA or such other federal,
state, local, national, or supranational governmental agency contacts Abbott, it
is not reasonably practical or lawful for Abbott to give Triangle advance
notice, in which event Abbott shall inform Triangle of such contact as soon as
reasonably practical and lawful.

                                   ARTICLE 16.

                                    INSURANCE

     Each Party shall, at its sole cost and expense, obtain and keep in force
general liability insurance with bodily injury, death and property damage limits
of *** U.S. Dollars (U.S.$***) in the aggregate and *** U.S. Dollars (U.S.$***)
in the aggregate of product liability coverage. Upon the Effective Date, each
Party shall furnish to the other a certificate of insurance evidencing the
insurance coverage required by this Agreement and providing for at least ten
(10) days prior written notice to the other Party of any cancellation,
termination, material change or reduction of such insurance coverage.

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                                   ARTICLE 17.

                                  FORCE MAJEURE

     If any circumstance beyond the reasonable control of either Party occurs
which delays or renders impossible the performance of certain of that Party's
obligations under this Agreement on the dates herein provided (a "FORCE
MAJEURE"), such obligations shall be postponed for such time as such performance
necessarily has had to be suspended or delayed on account thereof, provided such
Party shall notify the other Party in writing as soon as practicable, but in no
event more than ten (10) business days after the occurrence of such event of
Force Majeure, which notice shall reasonably attempt to identify such
obligations under this Agreement and the extent to which performance thereof
will be affected. In such event, the Parties shall meet promptly to determine an
equitable solution to the effects of any such event, provided that such Party
who fails because of an event of Force Majeure to perform its obligations
hereunder shall upon the cessation of the Force Majeure event take all
reasonable steps within its power to resume with the least possible delay
compliance with its obligations. Events of Force Majeure shall include, without
limitation, war, revolution, invasion, insurrection, terrorist acts, riots, mob
violence, sabotage or other civil disorders, acts of God, limitations imposed by
exchange control regulations or foreign investment regulations or similar
regulations, laws, regulations or rules of any government or governmental
agency, any inordinate and unanticipated delays in the regulatory review or
governmental approval process that are within the sole control of such
government or governmental agency, any delay or failure in manufacture,
production or supply by Third Parties of any goods or services, or any
withdrawal or recall of a Product at the direction of any governmental
authority.

                                   ARTICLE 18.

                               TRANSITION SERVICES

     18.1    TRANSITION SERVICES. Abbott shall, and shall cause its Affiliates
to provide Triangle or its Third Party designee all necessary information,
cooperation and assistance to transition the manufacture of Product to
Triangle's Third Party designee through successful validation, including the
transfer of all necessary or useful manufacturing process technology and

                                       30
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all necessary assistance in obtaining any related necessary regulatory
qualifications. Such transitional services shall be provided by Abbott and its
Affiliates in accordance with the "TRANSITION SERVICES PLAN" attached as Exhibit
18. The Transition Services Plan shall govern the transitional services to be
provided by Abbott and will define at least the intended Third Party designee,
technology transfer, scope, process, schedule for completing each part of the
transition, estimated budget for such transitional services and any other
resources to be provided by Abbott or its Affiliates for such transfer. Except
to the extent otherwise due under the Transition Services Plan, Abbott will
commence performing the transition services within *** after Triangle's request
and shall continue performance on the schedule Triangle reasonably requests,
consistent with the Transition Services Plan. Triangle may change such intended
Third Party designee, in which event Triangle and Abbott will develop in good
faith a corresponding replacement Transition Services Plan including associated
costs. Such replacement Transition Services Plan will provide for all necessary
transition services to be provided by Abbott, as reasonably determined by
Triangle in consultation with Abbott, and will incorporate a pricing structure
and price levels substantially comparable to those set forth in Exhibit 18, as
adjusted to reflect the level of services requested by Triangle. If the Parties
are not able to agree on a replacement Transition Services Plan for any reason,
either Party may submit the terms not yet agreed to ADR (as defined in and
pursuant to Section 19.3) for resolution, in which the Neutral shall be deemed
empowered to resolve and establish the open terms, whereupon the Parties will
promptly adopt the replacement Transition Services Plan as so resolved and
established. Abbott shall not be required to provide any services and Triangle
shall not be obligated to pay any costs except as specified in the Transitional
Services Plans or as otherwise agreed upon by the Parties in writing. Abbott
will keep Triangle reasonably informed on a monthly basis (or more frequently as
reasonably necessary or appropriate) of its progress under and resource
allocations and costs for the Transition Services Plan to Triangle, and
understands that timely response to requests and timely completion of tasks (as
directed by

----------
*** Portions of this page have been omitted pursuant to a request for
Confidential Treatment and filed separately with the Commission.

                                       31
<Page>

Triangle) is necessary to assure the transition of manufacture of Product within
the Transition Services Plans.

     18.2    TRANSITION SERVICES COST. Triangle shall pay Abbott for all
reasonable internal costs and reasonable out-of-pocket expenses actually
incurred by Abbott in connection with the transitional services; provided that
such internal costs and out-of-pocket expenses shall not exceed the agreed to
budget for such transitional services in the Transitional Services Plans. Abbott
shall invoice Triangle on a quarterly basis in reasonable detail (showing
without limitation FTE hours per person per project) for services rendered in
the prior quarter, and such invoices shall be paid in full by Triangle within
thirty (30) days after receipt of Abbott's invoice. Triangle shall bear its own
costs and expenses and pay all third party costs and expenses incurred pursuant
to and as set forth in the Transitional Services Plans. Triangle shall contract
directly with such third parties for their support and assistance, and Abbott
shall not commit or enter into any contracts with any such third parties for
transitional services on Triangle's behalf.

                                   ARTICLE 19.

                                  MISCELLANEOUS

     19.1    RELATIONSHIP OF THE PARTIES. Each of the Parties shall be
furnishing its services hereunder as an independent contractor, and nothing
herein shall create any association, partnership or joint venture between the
Parties or any employer-employee relationship. No agent, employee or servant of
either Party shall be or shall be deemed to be the employee, agent or servant of
the other Party, and each Party shall be solely and entirely responsible for its
acts and the acts of its employees.

     19.2    RELATIONSHIP WITH AFFILIATES. Unless the context otherwise
indicates, (a) any reference to a Party herein shall include the Affiliates of
such Party and (b) each Party may utilize the services of its Affiliates to
perform services, activities and/or obligations permitted or required under this
Agreement to the same extent as if such Affiliate were a party to this
Agreement; provided that any such services, activities or obligations under this
Agreement permitted or required to be performed by such Party relating to the
Territory will be performed only by such Party or a wholly-owned U.S. subsidiary
of such Party and that such Affiliate has

                                       32
<Page>

established to the satisfaction of the other Party the capability of performing
in accordance with the terms of this Agreement. Any Affiliates so utilized shall
be subject to all the terms and conditions applicable to such Party under this
Agreement, including but not limited to provisions establishing standards for
performance. With respect to the Territory, Abbott may use its Affiliates as set
forth in this Section 19.2; provided that Abbott shall make all payments
required and provide all reports or data required under this Agreement. The use
of any Affiliates as set forth in this Section 19.2 shall in no way relieve the
applicable Party of any of its obligations or liabilities hereunder and each
Party shall be liable for the actions of its Affiliates under this Agreement and
the indemnification provisions of Article 13 shall apply with respect to all
actions of a Party's Affiliates under this Agreement.

     19.3    DISPUTE RESOLUTION. The Parties recognize that a bona fide dispute
as to certain matters may arise from time to time during the term of this
Agreement which may relate to either Party's rights and/or obligations
hereunder. The Parties agree that any dispute that arises in connection with
this Agreement, which cannot be amicably resolved by such management discussions
shall be resolved by binding Alternative Dispute Resolution ("ADR") in the
manner described in Exhibit 19.3. Notwithstanding the foregoing, nothing shall
limit the Parties' right to seek judicial injunctive relief pursuant to Section
10.4 with respect to a breach or threatened breach of the requirements set forth
in Article 10 hereof.

     19.4    COUNTERPARTS. The Agreement may be executed simultaneously in any
number of counterparts and may be executed by facsimile. All counterparts shall
collectively constitute one and the same Agreement.

     19.5    NOTICES. In any case where any notice or other communication is
required or permitted to be given hereunder, such notice or communication shall
be in writing, and sent by overnight express or registered or certified mail
(with return receipt requested) and shall be sent to the following address (or
such other address as either Party may designate from time to time in writing):

             If to Triangle:

                  Triangle Pharmaceuticals, Inc.
                  4 University Place

                                       33
<Page>

                  4611 University Drive
                  Durham, North Carolina 27707
                  Telephone:  (919) 493-5980
                  Telefax:    (919) 493-5925
                  Attention:  Chief Operating Officer
                  Copy to:    General Counsel

             Copy to:

                  Gerald F. Roach
                  Smith Anderson Blount Dorsett Mitchell & Jernigan L.L.P.
                  2500 First Union Capital Center
                  Raleigh, NC 27601
                  Telephone:  (919) 821-1220
                  Telefax:    (919) 821-6800

             If to Abbott:

                  Abbott Laboratories
                  Dept.  R50A; Bldg.  AP34
                  200 Abbott Park Road
                  Abbott Park, IL 60064-6187
                  Telephone:  (847) 938-0101
                  Telefax:    (847) 937-1771
                  Attention:  Vice President, Global Licensing/New Business
                              Development

             Copy to:

                  General Counsel
                  Abbott Laboratories
                  Dept. 364; Bldg. AP6D
                  100 Abbott Park Road
                  Abbott Park, IL 60064
                  Telephone:  (847) 937-8906
                  Telefax:    (847) 938-6277

     19.6    BINDING EFFECT; ASSIGNMENT. This Agreement may not be assigned, in
whole or in part, by either Party without the prior written consent of the other
Party, and any attempted assignment without such consent shall be null and void;
provided that no prior written consent shall be required in the event that a
Third Party acquires substantially all of the assets or outstanding shares of,
or merges with, the assigning Party, but only so long as such Third Party

                                       34
<Page>

agrees to be bound by all of the assigning Party's responsibilities and
obligations hereunder. No assignment of this Agreement or of any rights
hereunder shall relieve the assigning Party of any of its obligations or
liability hereunder. This Agreement shall inure to the benefit of and be binding
upon each of the Parties hereto and their respective successors and permitted
assigns.

     19.7    ENTIRE AGREEMENT. The terms and conditions contained herein
constitute the entire agreement between the Parties relating to the subject
matter hereof and thereof and shall supersede all previous communications
between the Parties with respect to the subject matter hereof and thereof,
respectively. Neither Party has entered into this Agreement in reliance upon any
representation, warranty, covenant or undertaking of the other Party that is not
set out or referred to in this Agreement.

     19.8    AMENDMENT. The Agreement may be varied, amended or extended only by
the written agreement of the Parties through their duly authorized officers or
representatives, specifically referring to this Agreement.

     19.9    SEVERABILITY. In case any one or more of the provisions contained
herein shall, for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement, but this Agreement shall be construed as
if such invalid, illegal or unenforceable provision or provisions had never been
contained herein unless the deletion of such provision or provisions would
result in such a material change as to cause completion of the transactions
contemplated herein to be impossible and provided that the performance required
by this Agreement with such clause deleted remains substantially consistent with
the intent of the Parties.

     19.10   COMPANY EMPLOYEES. Each Party shall not, directly or indirectly
solicit for employment, any employee of the other Party who has been directly
involved in the performance of this Agreement during the Term and for one year
after the earlier of the termination or expiration of this Agreement or the
termination of such individual's employment, with the other Party. It shall not
be a violation of this provision if any employee responds to a Party's general
advertisement of an open position.

                                       35
<Page>

     19.11   PUBLICITY. Except as otherwise provided herein, each Party shall
maintain the confidentiality of all provisions of this Agreement and this
Agreement itself and, without the prior written consent of both Parties, neither
Party shall make any press release or other public announcement of or otherwise
disclose to any Third Party this Agreement or any of its provisions except: (a)
for disclosure to those of its directors, officers, employees, accountants,
attorneys, advisers and agents whose duties reasonably require them to have
access to the Agreement and, in the case of Triangle, disclosure to the Triangle
Licensor and actual and potential business partners (including any Third Party
with which Triangle collaborates in the development, registration, manufacture,
use or sale of the Compounds or Products), provided that such directors,
officers, employees, accountants, attorneys, advisers, agents, licensors and
business partners are required to maintain the confidentiality of the Agreement
to the same extent as if they were Parties hereto, and (b) except for such
disclosures as may be required by Legal Requirements, in which case the
disclosing Party shall provide the nondisclosing Party with prompt advance
notice of such disclosure so that the nondisclosing Party shall have the
opportunity if it so desires to seek a protective order or other appropriate
remedy and, in connection with any disclosure to the Securities and Exchange
Commission, the disclosing Party shall use reasonable efforts to obtain
confidential treatment for such disclosure.

     19.12   APPLICABLE LAW. The Agreement shall be governed by the laws of the
State of Delaware applicable to contracts made and to be performed entirely
within such jurisdiction and without giving effect to its choice or conflict of
laws rules or principles. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing Party shall be
entitled to reasonable attorneys' fees, costs and necessary disbursements, in
addition to any other relief to which the Party may be entitled.

     19.13   HEADINGS. The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect the meaning or
interpretation of this Agreement.

                                       36
<Page>

     19.14   INTERPRETATION.

             (a)  Wherever any provision of this Agreement uses the term
     "including" (or "includes"), such term shall be deemed to mean "including
     without limitation" and "including but not limited to" (or "includes
     without limitation" and "includes but is not limited to") regardless of
     whether the words "without limitation" or "but not limited to" actually
     follow the term "including" (or "includes").

             (b)  Wherever any provision of this Agreement provides that a
     Party's consent shall not be unreasonably withheld, such provision shall be
     deemed to provide that such consent shall in addition not be unreasonably
     delayed.

             (c)  The recitals set forth at the start of this Agreement, along
     with the Exhibits to this Agreement, and the terms and conditions
     incorporated in such recitals and Exhibits shall be deemed integral parts
     of this Agreement and all references in this Agreement to this Agreement
     shall encompass such recitals and Exhibits and the terms and conditions
     incorporated in such recitals and Exhibits.

             (d)  In the event of any conflict between the terms and conditions
     of this Agreement and any terms and conditions that may be set forth on any
     order, invoice, verbal agreement or otherwise, the terms and conditions of
     this Agreement shall govern.

             (e)  Unless otherwise explicitly stated, in the event of any
     conflict between the terms of this Agreement and the terms and conditions
     of any of the Exhibits hereto, the terms of this Agreement shall prevail.

             (f)  The Agreement shall be construed as if both Parties drafted it
     jointly, and shall not be construed against either Party as principal
     drafter.

             (g)  Unless otherwise provided, all references to Sections,
     Articles and Exhibits in this Agreement are to Sections, Articles and
     Exhibits of and to this Agreement.

     19.15   NO WAIVER OF RIGHTS. No failure or delay on the part of either
Party in the exercise of any power or right hereunder shall operate as a waiver
thereof. No single or partial

                                       37
<Page>

exercise of any right or power hereunder shall operate as a waiver of such right
or of any other right or power. The waiver by either Party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
other or subsequent breach hereunder.

                                       38
<Page>

             [SIGNATURE PAGE TO SUPPLY AND MANUFACTURING AGREEMENT]

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the date first written
above.

ABBOTT LABORATORIES                          TRIANGLE PHARMACEUTICALS, INC.

By:    /s/ Jeffrey M. Leiden, MD, Ph.D           By:    /s/ Chris A. Rallis
       --------------------------------------           ---------------------

Name:  Jeffrey M. Leiden, MD, Ph.D               Name:  Chris A. Rallis
       --------------------------------------           ------------------------

Title: President and Chief Operating Officer,    Title: President and COO
       Pharmaceutical Products Group                    ------------------------
       --------------------------------------

                                       39<Page>

                                                                    EXHIBIT 10.4

                                 SETTLEMENT AND

                           EXCLUSIVE LICENSE AGREEMENT

                                    FOR DAPD

                                      AMONG

                               SHIRE BIOCHEM INC.

                                       AND

                         SHIRE PHARMACEUTICALS GROUP PLC

                                       AND

                                EMORY UNIVERSITY

                                       AND

                 UNIVERSITY OF GEORGIA RESEARCH FOUNDATION, INC.

                                       AND

                         TRIANGLE PHARMACEUTICALS, INC.

<Page>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                              <C>
ARTICLE 1. DEFINITIONS............................................................................................2

ARTICLE 2. GRANT OF LICENSE.......................................................................................8

ARTICLE 3. ROYALTIES.............................................................................................10

ARTICLE 4. REPORTS AND ACCOUNTING................................................................................14

ARTICLE 5. PAYMENTS..............................................................................................16

ARTICLE 6. COVENANT NOT TO SUE; SETTLEMENT OF CLAIMS; WITHDRAWAL OF PENDING CLAIMS...............................18

ARTICLE 7. PATENT PROSECUTION....................................................................................25

ARTICLE 8. INFRINGEMENT..........................................................................................26

ARTICLE 9. WARRANTIES; EXCLUSION OF WARRANTIES; AND INDEMNIFICATION..............................................29

ARTICLE 10. CONFIDENTIALITY; PRESS RELEASES, DISCLOSURES AND PUBLIC ANNOUNCEMENTS................................33

ARTICLE 11. TERM AND TERMINATION.................................................................................36

ARTICLE 12. ASSIGNMENT;  NO SEPARATE ACTION; JOINT LIABILITY.....................................................40

ARTICLE 13. REGISTRATION OF LICENSE..............................................................................41

ARTICLE 14. NOTIFICATION AND AUTHORIZATION UNDER DRUG PRICE COMPETITION AND PATENT TERM RESTORATION ACT..........42

ARTICLE 15. MISCELLANEOUS........................................................................................43

ARTICLE 16. SUBSTITUTION OF SUBLICENSEE..........................................................................48

ARTICLE 17. NOTICES..............................................................................................50
</Table>

<Page>

                   SETTLEMENT AND EXCLUSIVE LICENSE AGREEMENT

     THIS SETTLEMENT AND EXCLUSIVE LICENSE AGREEMENT is made and entered into as
of this 30th day of August, 2002 ("EFFECTIVE DATE"), by and among SHIRE BIOCHEM
INC. ("SHIRE BIOCHEM"), a corporation organized and existing under the laws of
Canada and having its principal offices at 275 Armand-Frappier Boulevard, Laval,
Quebec H7V 4A7, Canada; SHIRE PHARMACEUTICALS GROUP plc, a corporation organized
and existing under the laws of England and Wales, and having its principal place
of business in Basingstoke, England ("SHIRE PHARMACEUTICALS GROUP") (SHIRE
BIOCHEM and SHIRE PHARMACEUTICALS GROUP hereinafter collectively referred to as
"SHIRE"); EMORY UNIVERSITY, a nonprofit corporation organized and existing under
the laws of Georgia, USA with offices at 1380 South Oxford Road, N.E., Atlanta,
GA 30322, USA ("EMORY"); the UNIVERSITY OF GEORGIA RESEARCH FOUNDATION, INC., a
nonprofit corporation organized and existing under the laws of Georgia, USA,
with offices at 631 Boyd Graduate Studies Building, Athens, GA 30602-7411, USA
("UGARF") (EMORY and UGARF shall be collectively referred to herein as
"UNIVERSITY" and treated herein and referred to collectively herein as a single
"Party," except where otherwise specifically indicated by reference to either
EMORY or UGARF or both); and TRIANGLE PHARMACEUTICALS, INC., a for-profit
corporation organized and existing under the laws of Delaware, USA with
principal offices located at 4 University Place, 4611 University Drive, Durham,
NC 27707 USA ("TRIANGLE"). In this Agreement, any reference to a "PARTY" shall
mean UNIVERSITY, SHIRE or TRIANGLE, as applicable, and any reference to the
"PARTIES" shall mean UNIVERSITY, SHIRE and TRIANGLE.

<Page>

                                   WITNESSETH

     WHEREAS, SHIRE and its Affiliates own or control certain patents and
pending patent applications relating to the development, manufacture,
composition and use of the Licensed Compound;

     WHEREAS, UNIVERSITY owns or controls certain patents and pending patent
applications relating to the development, manufacture, composition and use of
the Licensed Compound and has licensed such patents and patent applications to
TRIANGLE pursuant to the License Agreement between EMORY, UGARF and TRIANGLE
dated as of March 31, 1996 (as amended);

     WHEREAS, TRIANGLE owns or controls certain patents and pending patent
applications relating to the development, manufacture, composition and use of
the Licensed Compound;

     WHEREAS, EMORY and UGARF and their respective Affiliates, on one hand, and
SHIRE and its Affiliates, on the other hand, are engaged in legal proceedings
relating to patent rights concerning the Licensed Compound, and desire to
amicably resolve those legal proceedings;

     WHEREAS, in settlement of those legal proceedings, (i) SHIRE and its
Affiliates have agreed to grant, and UNIVERSITY to acquire, an exclusive license
under the SHIRE Patents to sublicense to TRIANGLE the exclusive right to make,
have made, use, import, offer for sale and sell the Licensed Compound and the
Licensed Products in the Field of Use in the Licensed Territory, and (ii)
TRIANGLE has agreed to make certain royalty payments to SHIRE and its
Affiliates, on the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, for and in consideration of the mutual covenants and the
promises herein contained, the Parties, intending to be legally bound, hereby
agree as follows.

<Page>

                             ARTICLE 1. DEFINITIONS

     The following terms as used herein shall have the following meaning:

     1.1   "AFFILIATE" shall mean any corporation or non-corporate business
entity which controls, is controlled by, or is under common control with another
corporation or non-corporate business entity. A corporation or non-corporate
business entity shall be regarded as in control of another corporation if it
owns, or directly or indirectly controls, at least fifty percent (50%) of the
voting stock of the other corporation, or (a) in the absence of the ownership of
at least fifty percent (50%) of the voting stock of a corporation, or (b) in the
case of a non-corporate business entity, or nonprofit corporation, if it
possesses, directly or indirectly, the power to direct or cause the direction of
the management and policies of such non-corporate business entity, or non-profit
corporation, as applicable.

     1.2   "AGREEMENT" shall mean this Settlement and Exclusive License
Agreement, including all exhibits and appendices attached to this Agreement.

     1.3   "AUTHORIZED THIRD PARTY" shall mean a Third Party designated by
TRIANGLE to market or co-market Licensed Product(s) and shall not include
distributors, wholesalers, pharmacies or pharmacy chains, managed care
organizations, group purchasers or others to whom TRIANGLE or such marketer or
co-marketer sells Licensed Product(s) as a result of arms-length transactions.

     1.4   "BCH-13520" shall mean the compound described on EXHIBIT C attached
hereto.

     1.5   "BCH-13520 AGREEMENT" shall mean that certain settlement and
exclusive license agreement between SHIRE, UNIVERSITY and TRIANGLE pursuant to
which UNIVERSITY and TRIANGLE grant to SHIRE and its Affiliates a license under
their respective rights to

                                        2
<Page>

certain patents and patent applications owned or controlled by UNIVERSITY or
TRIANGLE, dated as of the date hereof.

     1.6   "BCH-13520 PATENTS" shall have the meaning given to that term in
SECTION 1.4 of the BCH-13520 Agreement.

     1.7   "DAPD PATENTS" shall mean all patents and patent applications owned
or controlled by UNIVERSITY and/or TRIANGLE as of the Effective Date that
contain, whether as of the Effective Date or in the future, claims to the
Licensed Compound as a compound, to processes or intermediates for producing the
Licensed Compound, to pharmaceutical compositions containing the Licensed
Compound as an active ingredient, or to the use of the Licensed Compound for any
purpose, and any and all patents and patent applications claiming, deriving or
entitled to their priority, directly or indirectly, in whole or in part, from
any such patents or patent applications. It is the Parties' intention that
EXHIBIT A-2 identify all DAPD Patents; however, the omission of a particular
patent or patent application from EXHIBIT A-2 for any reason shall not affect
the scope of the definition of "DAPD Patents".

     1.8   "DOLLARS" shall mean United States dollars.

     1.9   "FDA" shall mean the United States Food and Drug Administration or
any successor entity.

     1.10  "FIELD OF USE" shall mean the prevention and/or treatment of
infections and/or diseases associated with human immunodeficiency virus (HIV)
and hepatitis B virus (HBV).

     1.11  "IND" shall mean an Investigational New Drug application or its
equivalent.

     1.12  "INDEMNITEES" shall mean (a) in the case of the indemnity set forth
in SECTION 9.5(a), SHIRE, its licensees and their respective Affiliates, and
each of their respective trustees,

                                        3
<Page>

directors, officers and employees and each of their heirs, successors,
executors, administrators and legal representatives; (b) in the case of the
indemnity set forth in SECTION 9.5(b), each Party, its Affiliates and licensees
and each of their respective trustees, directors, officers and employees, and
each of their heirs, successors, executors, administrators, and legal
representatives; and (c) in the case of the Indemnitees referenced in
SECTION 9.6, the Parties identified in SECTION 1.12(a) or (b), as applicable.

     1.13  "LICENSED COMPOUND" shall mean beta-Dioxolanyl purines encompassed by
the chemical formula and description set forth in EXHIBIT B, but specifically
excluding the compound *** as described on EXHIBIT C attached hereto.

     1.14  "LICENSED PRODUCT(S)" shall mean the Licensed Compound or any
pharmaceutical product containing the Licensed Compound as the active
ingredient, alone or in combination with other active ingredients, within the
Field of Use.

     1.15  "LICENSED TERRITORY" shall mean the world.

     1.16  "NDA" shall mean a New Drug Application or its equivalent.

     1.17  "NET SELLING PRICE" of Licensed Products which contain as their
active ingredient only the Licensed Compound shall mean the gross selling price
paid by a purchaser of such Licensed Product to TRIANGLE, its Sublicensees and
Authorized Third Parties or any of their respective Affiliates (each a "SELLER")
plus, if applicable, the value of all properties and services received in
consideration of a Sale of a Licensed Product, less only (a) discounts, rebates,
sales, use, or other similar taxes; (b) transportation and handling charges and
allowances; (c) payments

----------
***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

                                        4
<Page>

to state or federal authorities required for patient reimbursement under
Medicaid or similar programs; (d) payments to pharmacy buying managers,
purchasing managers or agents of managed care organizations made for the purpose
of securing or facilitating Sales to such organizations; and (e) returns which
are accepted by the Seller from independent customers in accordance with the
Seller's normal practice and for which the Seller gives credit to such
purchasers or retroactive price reductions in lieu of returns, whether during
the specific royalty period or not. Where a Sale is deemed consummated by a
gift, use, or other disposition of Licensed Products, for other than a selling
price stated in cash, the term "NET SELLING PRICE" shall mean the average gross
selling price billed by the Seller in consideration of the cash Sales of
comparable Licensed Products during the then-current royalty period, less only
reductions permitted in subsections (a) and (b) above and such other reductions,
if any, as SHIRE may agree in writing are appropriate, which agreement will not
be unreasonably withheld or delayed.

     1.18  "NET SELLING PRICE" of Licensed Products which contain as their
active ingredients both the Licensed Compound and, subject to SECTION 2.3,
compounds other than Licensed Compound (a "COMBINATION PRODUCT") shall be
negotiated in good faith by the Parties with the intention of agreeing upon a
fair and equitable formula; PROVIDED, HOWEVER, THAT if the Parties are unable to
agree upon such formula within a reasonable period of time, the Net Selling
Price with respect to such Combination Product shall mean the gross sales price
of such Combination Product billed to independent customers, less all the
allowances, adjustments, reductions, discounts, taxes, duties, payments, rebates
or other charges referred to in SECTION 1.17 multiplied by a fraction, the
numerator of which shall be the average invoice price per gram of the Licensed
Compound contained in the most comparable stock keeping unit of any product
having the Licensed Compound as the sole active ingredient during the applicable
royalty period in the

                                        5
<Page>

applicable country of the Licensed Territory, when such comparable product is
sold for the same indication as such Combination Product and the denominator of
which shall be the average invoice price per gram of the Licensed Compound sold
alone as described immediately above plus the average invoice price(s) per gram
of the other active ingredient(s) contained in such Combination Product in such
country during the applicable royalty period when such active ingredients are
sold alone for the same indication as such Combination Product. If there is no
average invoice price per gram in a given country for one or more of the active
ingredients comprising a Combination Product, the Net Selling Price with respect
to such Combination Product shall be deemed to be the gross sales of such
Combination Product billed to independent customers, less all the allowances,
adjustments, reductions, discounts, taxes, duties, payments, rebates or other
charges referred to in SECTION 1.17, times a fraction, the numerator of which is
the amount of Licensed Compound in such Combination Product and the denominator
of which is the amount of all active ingredients in such Combination Product.

     1.19  "REGISTRATION" shall mean, in relation to any Licensed Product, such
approvals by the regulatory authorities in a given country within the Licensed
Territory (including pricing approvals) as may be legally required before such
Licensed Product may be commercialized or Sold in such country.

     1.20  "SALE" or "SOLD" shall mean the sale, transfer, exchange, or other
disposition of Licensed Products, whether by gift or otherwise, subsequent to
Registration in a given country (if such Registration is required) by TRIANGLE
or any Sublicensee or Authorized Third Party or any of their respective
Affiliates. Sales of Licensed Products shall be deemed consummated upon the
first to occur of: (a) receipt of payment from the purchaser; (b) delivery of
Licensed Products to the purchaser or a common carrier; (c) release of Licensed
Products from

                                        6
<Page>

consignment; or (d) if otherwise transferred, exchanged, or disposed of, whether
by gift or otherwise, when such transfer, exchange, gift, or other disposition
occurs. Notwithstanding the foregoing definition of "SALE" or "SOLD," to the
extent TRIANGLE, its Sublicensee or Authorized Third Party or any of their
respective Affiliates distribute any Licensed Product under a treatment IND or
other expanded access program at a sales price which exceeds its fully absorbed
cost therefor, such excess shall be deemed to be a Sale for which royalties are
payable in accordance with the other terms hereof; PROVIDED, HOWEVER, THAT such
distribution shall not be deemed to be Registration of such Licensed Product.

     1.21  "SHIRE PATENTS" shall mean all patents and patent applications owned
or controlled by SHIRE and its Affiliates as of the Effective Date that contain,
whether as of the Effective Date or in the future, one or more claims to the
Licensed Compound as a compound, to processes or intermediates for producing the
Licensed Compound, to pharmaceutical compositions containing the Licensed
Compound as an active ingredient, or to the use of the Licensed Compound for any
purpose, and any and all patents and patent applications claiming, deriving or
entitled to their priority, directly or indirectly, in whole or in part, from
any such patents or patent applications. It is the Parties' intention that
EXHIBIT A-1 identify all SHIRE Patents; however, the omission of a particular
patent or patent application from EXHIBIT A-1 for any reason shall not affect
the scope of the definition of "SHIRE Patents."

     1.22  "SUBLICENSEE" shall mean TRIANGLE's sublicensees under the rights
granted by UNIVERSITY to TRIANGLE pursuant to ARTICLE 2.

     1.23  "THIRD PARTY" shall mean an individual, corporation or non-corporate
business entity other than UNIVERSITY, TRIANGLE or SHIRE, or any of their
respective Affiliates.

                                        7
<Page>

     1.24  "TRIANGLE PATENTS" shall have the meaning given to such term in
SECTION 1.22 of the BCH-13520 Agreement.

     1.25  "UNIVERSITY PATENTS" shall have the meaning given to such term in
SECTION 1.24 of the BCH-13520 Agreement.

     1.26  "UNLICENSED COMPOUND" shall have the meaning set forth in
SECTION 6.4(c).

     1.27  "1996 TRIANGLE AGREEMENT" shall mean the License Agreement between
EMORY, UGARF and TRIANGLE dated as of March 31, 1996, as amended by the 2002
Amendment and any further amendment of which SHIRE is notified by UNIVERSITY and
TRIANGLE pursuant to SECTION 2.1.

     1.28  "2002 AMENDMENT" shall mean the amendment to the 1996 TRIANGLE
Agreement pursuant to which UNIVERSITY sublicenses to TRIANGLE its rights under
the SHIRE Patents, dated as of the Effective Date.

                          ARTICLE 2. GRANT OF LICENSE

     2.1   LICENSE. SHIRE and its Affiliates hereby grant to UNIVERSITY the
exclusive right and license, which is non-transferable except as otherwise
provided herein, under the SHIRE Patents to sublicense to TRIANGLE the exclusive
right to make, have made, use, import, offer for sale and sell the Licensed
Products alone or in combination within the Field of Use in the Licensed
Territory during the term of this Agreement and subject to the terms and
conditions set forth herein. Except to the extent permitted under
SECTIONS 11.2 (a), (b) AND (c), if TRIANGLE defaults on its obligations under
this Agreement, UNIVERSITY shall not itself commercialize or otherwise exploit,
the rights granted hereunder without the prior written agreement of SHIRE
concerning the terms for such commercialization or other exploitation, which
prior written

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agreement of SHIRE shall not alter the respective rights and obligations of
UNIVERSITY and TRIANGLE set forth in the 1996 TRIANGLE Agreement. In the event
that UNIVERSITY and TRIANGLE amend the 1996 TRIANGLE Agreement after the
Effective Date, UNIVERSITY and TRIANGLE shall provide prompt written notice to
SHIRE of any such amendment and shall include in such notice the effective date
of any such amendment and a general description of the terms of such amendment.
For the avoidance of doubt, the Parties agree that UNIVERSITY's and TRIANGLE's
obligation to notify SHIRE of any amendment to the 1996 TRIANGLE Agreement shall
not be construed as conferring upon SHIRE or its Affiliates any rights as a
third party beneficiary to the 1996 TRIANGLE Agreement.

     2.2   SUBLICENSES. TRIANGLE may grant sublicenses under all or part of the
rights sublicensed to it by UNIVERSITY pursuant to SECTION 2.1 and the 1996
TRIANGLE Agreement in accordance with the terms and conditions of this
Agreement. TRIANGLE shall promptly notify UNIVERSITY and SHIRE of any such
sublicense(s). TRIANGLE (and, if and as applicable, UNIVERSITY) shall include in
any such sublicense agreements the provisions in favor of SHIRE and its
Affiliates as provided in or required by SECTIONS 2.3, 2.4, 4.1, 4.2, 6.5, 9.3,
9.4, 11.7(b)(ii), 15.4 AND 15.5 and ARTICLE 10 of this Agreement.

     2.3   RESTRICTIONS ON LICENSE GRANT. Notwithstanding anything contained in
this ARTICLE 2, no license is granted to UNIVERSITY (or TRIANGLE) under the
SHIRE Patents to make, have made, use, import, offer for sale or sell a product
in which a single unit dosage form contains the Licensed Compound together with:
(a) the compound *** ; (b) the compound *** (as such compound is defined in the
Settlement and Exclusive License Agreement dated May 31,

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2002 by and among EMORY, SHIRE, SmithKline-Beecham Corp., Glaxo Group Ltd., and
GlaxoSmithKline Inc.); (c) the compound *** ; or (d) any compound that is sold
by SHIRE or its Affiliates and/or licensees or sublicensees or is covered by any
patent(s) or patent application(s) owned or controlled by, or licensed to, SHIRE
or its Affiliates.

     2.4   NO IMPLIED LICENSE. Except to the extent provided in SECTION 6.1
below, the license and rights granted in this Agreement shall not be construed
to confer any rights upon UNIVERSITY or TRIANGLE by implication, estoppel, or
otherwise as to any intellectual property not specifically identified in this
Agreement.

                              ARTICLE 3. ROYALTIES

     3.1   RUNNING ROYALTIES. In consideration for the rights and licenses
granted by SHIRE and its Affiliates to UNIVERSITY and TRIANGLE pursuant to
ARTICLE 2 and in consideration for the grant of the covenant not to sue and
withdrawal, release and settlement of claims set forth in ARTICLE 6, each of
which are granted and agreed to by SHIRE and its Affiliates in connection with
the settlement of legal proceedings between the Parties relating to patent
rights concerning the Licensed Compound, the Parties have agreed to the
following payment provisions for their mutual convenience:

           (a) During the term of this Agreement, subject to SECTION 3.1(b),
TRIANGLE shall pay to SHIRE and its Affiliates a royalty on the Net Selling
Price of all Licensed Products Sold by TRIANGLE, its Sublicensees, Authorized
Third Parties or any of their respective Affiliates in each country of the
Licensed Territory commencing on the date of the first

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commercial Sale of a Licensed Product in any country in the Licensed Territory
until the expiration of *** from the date of the *** , whichever first occurs:

               (i)  On that portion of the annual Net Selling Price of the
Licensed Products up to *** , *** percent (***%) of the Net Selling Price of all
Licensed Products Sold in the Licensed Territory;

               (ii) On that portion of the annual Net Selling Price of the
Licensed Products at or above ***, *** percent (***%) of the Net Selling Price
of all Licensed Products Sold in the Licensed Territory.

           (b) UNIVERSITY shall make royalty payments to SHIRE and its
Affiliates on any Sales of Licensed Products in any country of the Licensed
Territory if: (i) UNIVERSITY assumes TRIANGLE's obligations under this Agreement
pursuant to SECTIONS 11.2(a), (b) OR (c), upon the occurrence of any event
specified in such Sections, unless and until TRIANGLE resumes performance of its
obligations under this Agreement upon the resolution of any such event; or (ii)
the 1996 TRIANGLE Agreement is terminated, unless and until UNIVERSITY enters
into an agreement with a successor sublicensee to TRIANGLE in accordance with
ARTICLE 16.

     3.2   ACCRUAL OF ROYALTIES. Notwithstanding the definitions of "Net Selling
Price," "Sale" and "Sold" in SECTIONS 1.17, 1.18 AND 1.20 above, no royalty
shall be payable on a Licensed Product made, Sold, or used for tests or
development purposes or distributed as samples. No royalties shall be payable
on: (a) Sales among Sublicensees or Authorized Third Parties and each of their
respective Affiliates, but royalties shall be payable on subsequent Sales by
such

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Sublicensees, Authorized Third Parties and their respective Affiliates, to
further Third Parties; and (b) Sales of Licensed Products for which TRIANGLE,
its Sublicensees, Authorized Third Parties or any of their respective Affiliates
do not receive any consideration of any kind.

     3.3   THIRD PARTY ROYALTIES. If UNIVERSITY or TRIANGLE determine after
consultation with SHIRE, but at UNIVERSITY's or TRIANGLE's discretion, that it
or they are required to pay royalties or other fees to any Third Party because
the manufacture, use, offer for sale, importation, or sale of a Licensed Product
infringes any patent or other intellectual property rights of such Third Party
in a given country, and as a result of such Third Party royalty payments or any
other fees paid to such Third Party, the total royalties payable by TRIANGLE to
SHIRE and its Affiliates and such Third Parties exceeds *** percent (***%) of
TRIANGLE's, its Sublicensee's or Authorized Third Party's or any of their
respective Affiliates' Net Selling Price for such Licensed Product during any
royalty period (such excess being referred to as "EXCESS ROYALTIES"), TRIANGLE
may deduct from running royalties thereafter due to SHIRE and its Affiliates
(pursuant to SECTION 3.1 of this Agreement) with respect to the Net Selling
Price of such Licensed Product in such country up to *** percent (***%) of the
Excess Royalties. In no event shall the royalties due on such Sales of such
Licensed Product in such country on account of any reduction pursuant to this
SECTION 3.3 thereby be reduced to less than *** percent (***%) of the royalties
which would have been due thereunder on such Sales of such Licensed Product in
such country. For the avoidance of doubt, this SECTION 3.3 shall not apply to
any royalties or other fees payable by TRIANGLE to UNIVERSITY pursuant to the
1996 TRIANGLE Agreement.

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     3.4   COMPULSORY LICENSES. Should a compulsory license be granted to any
Third Party in any country of the Licensed Territory to make, have made, use,
import, offer for sale or sell Licensed Products, the royalty rate payable
thereunder for Sales of the Licensed Products by TRIANGLE or any Sublicensee or
Authorized Third Party or any of their respective Affiliates in such country
shall be adjusted to match any lower royalty rate granted to such Third Party
for such country. UNIVERSITY and/or TRIANGLE, as they shall agree, shall provide
SHIRE with prompt written notice of any governmental or judicial procedures
initiated in any country to impose a compulsory license. UNIVERSITY or TRIANGLE,
as they shall agree, shall take, or cause to be taken, all reasonable and legal
steps as UNIVERSITY or TRIANGLE, as applicable, deems appropriate which are
available to oppose such compulsory license and SHIRE and its Affiliates shall,
at UNIVERSITY's or TRIANGLE's request, reasonably cooperate with UNIVERSITY or
TRIANGLE in any legal or other administrative action which UNIVERSITY or
TRIANGLE may take or cause to be taken, to oppose such compulsory license. Any
such action shall be at UNIVERSITY's or TRIANGLE's, as applicable, sole expense
and may not be taken by UNIVERSITY or TRIANGLE, as applicable, if such action
would materially jeopardize the validity of any SHIRE Patents in such country.
If UNIVERSITY and/or TRIANGLE notify SHIRE that neither of them intends to take
any such action, then UNIVERSITY and/or TRIANGLE shall, at SHIRE's request,
cooperate reasonably with SHIRE and its Affiliates in any legal action which
SHIRE and its Affiliates may wish to take to oppose such compulsory license. Any
such action shall be at the sole expense of SHIRE and its Affiliates and may not
be taken by SHIRE and its Affiliates if such action would materially jeopardize
the validity of any of the SHIRE Patents in such country.

                                       13
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     3.5   GENERIC COMPETITION. If a generic equivalent of a Licensed Product
Sold by TRIANGLE, its Sublicensee or Authorized Third Party or any of their
respective Affiliates is sold in a country of the Licensed Territory and no
action is or can be taken by any Party under any patent or patent application
filed in such country included in the SHIRE Patents, then the royalties
otherwise payable by TRIANGLE on Sales of the Licensed Products in such country
pursuant to SECTION 3.1 shall be reduced by *** percent (***%) for so long as
the sale of such generic equivalent in such country is more than a DE MINIMIS
amount.

                        ARTICLE 4. REPORTS AND ACCOUNTING

     4.1   ROYALTY REPORTS AND RECORDS. Following the first Sale of a Licensed
Product, TRIANGLE shall furnish, or cause to be furnished to SHIRE, written
royalty reports for each calendar quarter during the term of this Agreement
showing:

           (a) the gross selling price of all Licensed Products Sold by
TRIANGLE, its Sublicensees, Authorized Third Parties and any of their respective
Affiliates in each country of the Licensed Territory during the reporting
period, together with the calculations of Net Selling Price in accordance with
SECTIONS 1.17 AND 1.18;

           (b) the royalties payable in Dollars, which shall have accrued
hereunder in respect to such Sales and the calculation thereof;

           (c) the exchange rates used, if any, in determining the amount of
royalties payable in Dollars; and

           (d) any deductions from royalty payments taken pursuant to
SECTIONS 3.3, 3.4, 3.5 AND/OR 8.3, including documentation of any royalties or
other fees paid to Third Parties.

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     Reports shall be due within sixty (60) days of the close of every calendar
quarter. If no payments are due to SHIRE and its Affiliates for any reporting
period following the first Sale of a Licensed Product in any country in the
Licensed Territory, the royalty report shall so state. TRIANGLE shall require
its Affiliates, Sublicensees and Authorized Third Parties to keep, accurate
records for a period of at least five (5) years in sufficient detail to enable
royalties and other payments payable hereunder to be determined and verified.
TRIANGLE shall be responsible to SHIRE and its Affiliates for all royalties and
late payments that are due to SHIRE and its Affiliates that have not been paid
by any Sublicensee or Authorized Third Party or any of their respective
Affiliates.

     4.2   RIGHT TO AUDIT. SHIRE shall have the right, upon prior notice to
UNIVERSITY and TRIANGLE, not more than once in each calendar year, through an
independent certified public accountant selected by SHIRE and acceptable to
TRIANGLE and UNIVERSITY, which acceptance shall not be unreasonably refused, to
have access during normal business hours to those records of TRIANGLE as may be
reasonably necessary to verify the accuracy of the royalty reports required to
be furnished by TRIANGLE pursuant to SECTION 4.1 of this Agreement. TRIANGLE
shall require its Affiliates, Sublicensees and Authorized Third Parties to keep
and maintain records of Sales made by such Affiliates, Sublicensees or
Authorized Third Parties and to grant SHIRE's independent certified public
accountant access to such Affiliate's, Sublicensee's or Authorized Third Party's
records. Following the completion of any such audit by SHIRE's independent
certified public accountant, the independent certified public accountant shall
provide a written report to SHIRE, UNIVERSITY and TRIANGLE. If any such report
shows any underpayment of royalties by TRIANGLE, within thirty (30) days after

                                       15
<Page>

UNIVERSITY's and TRIANGLE's receipt of any such report, TRIANGLE shall remit to
SHIRE and its Affiliates:

           (a) the amount of such underpayment; and

           (b) if such underpayment exceeds *** percent (***%) of the total
royalties owed for the calendar year then being reviewed, the reasonably
necessary fees and expenses of such independent certified public accountant
performing the audit. Otherwise, SHIRE's independent certified public
accountant's fees and expenses shall be borne by SHIRE. Any overpayment of
royalties shall be immediately refunded. Upon the expiration of *** months
following the end of any calendar year, the calculation of royalties payable
with respect to such calendar year shall be binding and conclusive on SHIRE and
its Affiliates and TRIANGLE and UNIVERSITY, unless an audit is initiated before
expiration of such *** months.

     4.3   CONFIDENTIALITY OF RECORDS. All information subject to review under
this ARTICLE 4 shall be confidential. Except where provided by law, SHIRE, its
Affiliates and SHIRE's independent certified public accountant shall retain all
such information in confidence.

                               ARTICLE 5. PAYMENTS

     5.1   PAYMENTS AND DUE DATES. Except as otherwise provided herein,
royalties payable to SHIRE and its Affiliates as a result of activities
occurring during the period covered by each royalty report provided for under
ARTICLE 4 of this Agreement shall be due and payable on the date such royalty
report is due. Payments of royalties in whole or in part may be made in advance
of such due date. All payments shall be made by wire transfer to an account or
accounts

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of SHIRE, or SHIRE's designated Affiliate or agent, elected by SHIRE from time
to time upon notice to UNIVERSITY and TRIANGLE; PROVIDED, HOWEVER, THAT in the
event that SHIRE fails to designate such account, TRIANGLE may remit payment to
SHIRE and its Affiliates at the address specified in ARTICLE 17 for the receipt
of notices hereunder; PROVIDED, FURTHER, THAT any notice by SHIRE of such
account or change in such account, shall not be effective until fifteen (15)
days after receipt thereof by TRIANGLE.

     5.2   CURRENCY RESTRICTIONS; EXCHANGE RATE. Except as hereafter provided in
this SECTION 5.2, all royalties shall be paid in Dollars. Sales outside of the
United States shall be first determined in the currency in which they are earned
and shall then be converted into an amount in Dollars using the daily rate of
exchange for the last business day of the calendar quarter for which such
payment is being determined as published in the WALL STREET JOURNAL. If, at any
time, legal restrictions prevent the prompt remittance of part of or all
royalties due hereunder with respect to any country in the Licensed Territory
where Licensed Products are Sold, TRIANGLE shall have the right and option to
make such payments by depositing the amount thereof in local currency to
SHIRE's, or its designated Affiliate's or agent's, account in a bank or
depository in such country.

     5.3   INTEREST. Royalties required to be paid by TRIANGLE pursuant to this
Agreement shall, if overdue, bear interest at *** , for the last day of each
applicable calendar quarter *** , until paid. The payment of such interest shall
not foreclose SHIRE and its Affiliates from exercising any other rights it may
have because any payment is overdue.

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     5.4   TAXES. TRIANGLE shall be entitled to deduct from its payments to
SHIRE and its Affiliates the amount of any withholding taxes required to be
withheld by TRIANGLE or its Sublicensees or Authorized Third Parties or any of
their respective Affiliates to the extent TRIANGLE or its Sublicensees or
Authorized Third Parties or any of their respective Affiliates pay to the
appropriate governmental authority on behalf of SHIRE and its Affiliates such
taxes. TRIANGLE shall deliver to SHIRE, upon SHIRE's request, proof of payment
of all such taxes. Each Party shall provide assistance to the other Party in
seeking any benefits available to such Party with respect to government tax
withholdings by any relevant law or double tax treaty.

                         ARTICLE 6. COVENANT NOT TO SUE;
               SETTLEMENT OF CLAIMS; WITHDRAWAL OF PENDING CLAIMS

     6.1   COVENANT NOT TO SUE.

           (a) SHIRE covenants that neither it nor any of its Affiliates will
challenge, object to or sue or induce, assist or direct any Third Party to
challenge, object to or sue UNIVERSITY or TRIANGLE or any of their respective
licensees, Sublicensees, contract manufacturers or Authorized Third Parties or
any of their respective Affiliates or assignees, or any of their respective past
or present trustees, directors, officers, employees, agents, representatives or
licensees, or any of their customers, alleging that the manufacture, use, sale,
offer for sale, import or export of the Licensed Compound or the Licensed
Product(s), or that any metabolite resulting from human ingestion and/or
metabolism of the Licensed Compound, infringes any of the patents included in
the SHIRE Patents or BCH-13520 Patents.

           (b) In the event that SHIRE or its relevant Affiliates grant to any
Third Party any rights under the SHIRE Patents and/or BCH-13520 Patents, SHIRE
or its relevant Affiliates shall obtain from any such Third Party a covenant
pursuant to which such Third Party covenants

                                       18
<Page>

that neither it, nor any of its Affiliates will challenge, object to or sue or
induce, assist or direct any Third Party to challenge, object to or sue
UNIVERSITY or TRIANGLE or any of their respective licensees, Sublicensees,
contract manufacturers or Authorized Third Parties or any of their respective
Affiliates or assignees, or any of their respective past or present trustees,
directors, officers, employees, agents, representatives, licensees, or any of
their customers, alleging that the manufacture, use, sale or offer for sale,
import or export of the Licensed Compound or the Licensed Product(s), or that
any metabolite resulting from human ingestion and/or metabolism of the Licensed
Compound, infringes any of the patents included in the SHIRE Patents or the
BCH-13520 Patents. SHIRE or its relevant Affiliates shall further require any
such Third Party to obtain from any of its sublicensees under the SHIRE Patents
and/or the BCH-13520 Patents a covenant not to sue in favor of each of
UNIVERSITY and TRIANGLE, and each of their respective licensees, Sublicensees,
contract manufacturers and Authorized Third Parties and any of their respective
Affiliates on the same terms.

     6.2   SETTLEMENT OF CLAIMS.

           (a) Effective upon execution of this Agreement, SHIRE, for itself,
its Affiliates, and each of their respective successors and assigns, hereby
releases and forever discharges each of UNIVERSITY and TRIANGLE, and each of
their respective past and present Affiliates, and each of their respective
trustees, directors, officers, employees, agents and representatives and,
subject to SECTION 6.5, licensees, and any of their customers, from any and all
causes of action, actions, claims, and demands whatsoever in law or in equity
with or against such parties involving the SHIRE Patents and/or the BCH-13520
Patents relating to the Licensed Products, the Licensed Compound and/or any
metabolite resulting therefrom, including any and all causes of action, actions,
claims, and demands in the proceedings set forth on EXHIBIT D, and

                                       19
<Page>

any liabilities, losses, costs and expenses related thereto which they ever had
or now have based on occurrences up to and including the Effective Date.

           (b) SHIRE and its Affiliates shall cause each of their licensees (if
any) under the SHIRE Patents and/or the BCH-13520 Patents to execute a release
in favor of UNIVERSITY, TRIANGLE and each of their respective past and present
Affiliates and each of their respective trustees, directors, officers, employees
agents and representatives, and licensees and any of their customers, on the
same terms as the release granted by SHIRE and its Affiliates in SECTION 6.2(a)
(and SHIRE and its Affiliates shall not sublicense any of their respective
rights pursuant to the BCH-13520 Agreement to any Third Party until they have
obtained such a release). SHIRE and its Affiliates shall further require all
such licensees to obtain from any of their sublicensees under the SHIRE Patents
and/or the BCH-13520 Patents a release on the same terms.

     6.3   WITHDRAWAL OF EXISTING CLAIMS BY SHIRE.

           (a) Within thirty (30) days of execution of this Agreement: SHIRE
agrees, for itself and for each of its Affiliates and assigns, to withdraw any
interference, opposition, revocation or other proceeding challenging the
validity, enforceability or patentability of any patent or pending patent
application, or any claims included in any patent or pending patent application,
or any appeals arising from any order made in connection with any such
proceeding involving the DAPD Patents in any court or tribunal of competent
jurisdiction located in, or any patent office of, any country or territory,
including those proceedings set forth on EXHIBIT D. SHIRE, for itself, and each
of its Affiliates and assigns, hereby releases and forever discharges UNIVERSITY
and TRIANGLE, each of their respective past and present Affiliates, and each of
their respective trustees, directors, officers, employees, agents,
representatives and licensees and

                                       20
<Page>

any of their customers, from any and all causes of action, actions, claims, and
demands whatsoever, in law or in equity with respect to the DAPD Patents and any
liabilities, losses, costs and expenses related thereto.

           (b) SHIRE further agrees that, during the term of this Agreement
(and, if and as provided in SECTION 15.8, thereafter) to the extent permitted by
applicable law, neither SHIRE, nor any of its Affiliates, or their respective
successors or assigns or licensees, shall initiate any interference, opposition,
revocation or other proceeding, or induce, assist or direct any Third Party in
challenging the validity, enforceability or patentability of any patent or
pending patent application, or any claims included in any patent or pending
patent application, included in the DAPD Patents, or any appeals arising from
any order made in connection with any such proceeding, in any court or tribunal
of competent jurisdiction located in, or any patent office of, any country or
territory. In the event that, during the term of this Agreement, an interference
proceeding is declared by the patent office of any country or territory within
the Licensed Territory, or is initiated by a Third Party against any patent or
pending patent application included in the DAPD Patents, the Parties agree to
negotiate in an attempt to establish an appropriate dispute resolution procedure
for the resolution of any such proceeding.

     6.4   WITHDRAWAL OF EXISTING CLAIMS BY UNIVERSITY AND TRIANGLE.

           (a) Within thirty (30) days of execution of this Agreement:
UNIVERSITY and TRIANGLE agree, for themselves and for each of their respective
Affiliates and assigns, to withdraw any interference, opposition, revocation or
other proceeding challenging the validity, enforceability or patentability of
any patent or pending patent application, or any claims included in any patent
or pending patent application, or any appeals arising from any order made in
connection with any such proceeding involving the SHIRE Patents in any court or
tribunal of

                                       21
<Page>

competent jurisdiction located in, or any patent office of, any country or
territory, including those proceedings set forth on EXHIBIT E. UNIVERSITY and
TRIANGLE, for themselves, and each of their respective Affiliates and each of
their respective assigns, hereby release and forever discharge SHIRE, its past
and present Affiliates, and each of their respective trustees, directors,
officers, employees, agents, representatives and licensees and any of their
customers, from any and all causes of action, actions, claims and demands
whatsoever, in law or in equity with respect to the SHIRE Patents and any
liabilities, losses, costs and expenses related thereto.

           (b) UNIVERSITY and TRIANGLE further agree that, during the term of
this Agreement (and, if and as provided in SECTION 15.8, thereafter) to the
extent permitted by applicable law and except as otherwise provided in
SECTION 6.4(c), neither UNIVERSITY nor TRIANGLE, nor any of their respective
Affiliates or successors or assigns, shall initiate any interference,
opposition, revocation or other proceeding, or induce, assist or direct any
Third Party in challenging the validity, enforceability or patentability of any
patent or pending patent application, or any claims included in any patent or
pending patent application, included in the SHIRE Patents, or any appeals
arising from any order made in connection with any such proceeding, in any court
or tribunal of competent jurisdiction located in, or any patent office of, any
country or territory. In the event that, during the term of this Agreement, an
interference proceeding is declared by the patent office of any country or
territory within the Licensed Territory, or is initiated by a Third Party
against any patent or pending patent application included in the SHIRE Patents,
the Parties agree to negotiate in an attempt to establish an appropriate dispute
resolution procedure for the resolution of any such proceeding.

           (c) In the event that UNIVERSITY and/or TRIANGLE or any of their
respective Affiliates wish to develop a specific compound other than the
Licensed Compound

                                       22
<Page>

(an "UNLICENSED COMPOUND") that may be covered by any claims included in any
patent or patent application included within the SHIRE Patents, UNIVERSITY
and/or TRIANGLE, as applicable, may notify SHIRE in writing of the proposed
development of any such Unlicensed Compound and request that SHIRE (or its
relevant Affiliate) enter into negotiations with UNIVERSITY and/or TRIANGLE, as
applicable, to reach agreement on the terms of a commercial royalty-bearing
license under any and all patents and patent applications included within the
SHIRE Patents containing claims covering such Unlicensed Compound to make, have
made, use, import, offer for sale and sell such Unlicensed Compound in the
Licensed Territory. Within *** days of receipt of any such notice from
UNIVERSITY and/or TRIANGLE, as applicable, SHIRE, within its sole discretion,
shall notify UNIVERSITY and/or TRIANGLE, as applicable, in writing whether it
agrees to negotiate such a license. If SHIRE declines to negotiate such a
license, or if the Parties are unable to negotiate in good faith and execute
such a license within *** of UNIVERSITY's and/or TRIANGLE's, as applicable,
receipt of any notice from SHIRE agreeing to enter into negotiations in
connection with any such a license, then in such event the provisions of SECTION
6.4(b) shall no longer apply to any claim in any patent or patent application
included within the SHIRE Patents containing claims covering the Unlicensed
Compound; PROVIDED, HOWEVER, THAT SECTION 6.4(b) shall continue to apply to any
claims included in any such patent or patent application that either
specifically or generically cover the compound *** or the Licensed Compound or
the compound *** in addition to the Unlicensed Compound. If, however, SHIRE or
its relevant Affiliate initiates any proceedings to enforce its rights under any
claim of the SHIRE

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Patents that either specifically or generically covers the compound *** or the
Licensed Compound or the compound *** in connection with UNIVERSITY's and/or
TRIANGLE's, or their respective Affiliate's or licensee's, manufacture, use or
sale of the Unlicensed Compound, the Party against which SHIRE or its relevant
Affiliate brings such proceedings (or its Affiliates or licensees, if and as
applicable) may, as part of such proceedings or, if required under the laws of
the relevant jurisdiction, in a separate action based upon such proceedings,
challenge the validity, enforceability or patentability of any such claims in
any such proceedings.

     6.5   COVENANT BY UNIVERSITY'S AND TRIANGLE'S SUBLICENSEES AND OTHER THIRD
PARTIES NOT TO ASSERT CLAIMS. UNIVERSITY and TRIANGLE shall cause each of
TRIANGLE's sublicensees under the rights granted to TRIANGLE under the
UNIVERSITY Patents pursuant to the 1996 TRIANGLE Agreement, and any other Third
Party to whom UNIVERSITY or TRIANGLE may have granted, or may in the future
grant, rights under their respective rights to the UNIVERSITY Patents and/or the
TRIANGLE Patents, to agree, to the extent permitted by applicable law, during
such time that such sublicensee or other Third Party has rights under UNIVERSITY
Patents and/or TRIANGLE Patents, not to initiate any further interference,
opposition, revocation or other proceedings or appeals on the same terms as set
forth above in SECTION 6.4(b); PROVIDED, HOWEVER, THAT such agreement by any
such sublicensees and other Third Parties shall be limited to actions and
proceedings in which the validity, enforceability or patentability of a patent
or patent application, or any claims included in a patent or patent application,
included within SHIRE Patents is challenged on the basis of one or more patents
or

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patent applications included within UNIVERSITY Patents and/or TRIANGLE
Patents. UNIVERSITY and TRIANGLE shall further require that all such
sublicensees and other Third Parties cause any of their sublicensees under the
UNIVERSITY Patents and/or the TRIANGLE Patents to agree not to initiate any
further interference, opposition, revocation or other proceedings or appeals on
the same terms as those set forth in the preceding sentence. The obligation on
SHIRE and its Affiliates to release licensees of UNIVERSITY and TRIANGLE under
SECTION 6.2 shall not be effective unless and until UNIVERSITY and TRIANGLE have
caused each such sublicensee or other Third Party execute the covenants and
agreements required by this SECTION 6.5.

                          ARTICLE 7. PATENT PROSECUTION

     SHIRE and its Affiliates shall be primarily responsible for all patent
prosecution activities pertaining to the SHIRE Patents. SHIRE and its Affiliates
may, in their sole discretion, select patent counsel to prosecute, acquire from
the relevant patent offices, defend and maintain and handle any litigation,
interference, opposition or other action pertaining to the validity,
enforceability, allowability or subsistence (all of the foregoing activities
being referred to as "PATENT PROSECUTION ACTIVITIES") of all such SHIRE Patents.
SHIRE shall provide, or cause to be provided, to UNIVERSITY within sixty (60)
days of the Effective Date of this Agreement a copy of all file histories of all
pending U.S., European and Japanese patent applications included in the SHIRE
Patents. SHIRE also shall, without written request, provide, or cause to be
provided, to UNIVERSITY copies of material correspondence and pleadings with any
patent office and/or court filed or received after the Effective Date that
relate to the prosecution and/or litigation of any U.S., European and/or
Japanese patent or patent application included in the SHIRE Patents unless
previously served on UNIVERSITY. SHIRE shall also promptly inform

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UNIVERSITY of any inter partes actions concerning the SHIRE Patents, and shall
keep UNIVERSITY promptly advised of the status, proceedings and filings in such
action. SHIRE shall further, on reasonable written request by UNIVERSITY,
provide, or cause to be provided, to UNIVERSITY copies of material
correspondence to or from and pleadings filed with any patent office and/or
court that relates to the prosecution, opposition and/or litigation of any SHIRE
Patent in any country. SHIRE and its Affiliates shall reasonably cooperate with
UNIVERSITY to add, amend or delete any claims included in any patent application
included in the SHIRE Patents directed to Licensed Compounds or methods for
their use or manufacture; PROVIDED, THAT SHIRE and its Affiliates shall have the
sole discretion as to whether any such claims shall be added, amended or deleted
pursuant to UNIVERSITY's request or otherwise. If SHIRE or its relevant
Affiliate decides to abandon or allow to lapse any patent application or patent
in any country of the Licensed Territory included in the SHIRE Patents, SHIRE
shall timely inform UNIVERSITY and UNIVERSITY or TRIANGLE, as they shall agree,
shall be given the opportunity to assume Patent Prosecution Activities in
respect thereof, at UNIVERSITY's or TRIANGLE's, as applicable, expense. If such
Patent Prosecution Activities are assumed by TRIANGLE, the costs of such assumed
Patent Prosecution Activities shall be deducted from royalty payments due to
SHIRE and its Affiliates, and such deduction shall be allocated between
UNIVERSITY and TRIANGLE as they shall agree. UNIVERSITY or TRIANGLE, as
applicable, may thereafter from time to time abandon or allow to lapse any or
all Patent Prosecution Activities assumed hereunder.

                             ARTICLE 8. INFRINGEMENT

     8.1   NOTICE. If UNIVERSITY, TRIANGLE or SHIRE becomes aware of any
activity that it believes infringes a SHIRE Patent, the Party obtaining such
knowledge shall promptly advise the other Parties of the material facts and
circumstances pertaining to the potential infringement.

                                       26
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     8.2   SHIRE'S AND ITS AFFILIATES' RIGHT TO PURSUE THIRD PARTY INFRINGEMENT
NOT DIRECTLY RELATED TO LICENSED COMPOUND(S) AND/OR LICENSED PRODUCT(S). SHIRE
and its Affiliates shall have the right, but not the obligation, to enforce any
rights included in the SHIRE Patents against any Third Party, at the expense of
SHIRE and its Affiliates, to the extent that such rights do not relate to the
manufacture, sale or use of the Licensed Compound, the Licensed Products and/or
any metabolites resulting from the human ingestion and/or metabolism of the
Licensed Compound, in each case within the Field of Use.

     8.3   UNIVERSITY'S AND TRIANGLE'S RIGHT TO PURSUE THIRD PARTY INFRINGEMENT.
UNIVERSITY and TRIANGLE, jointly or separately as they shall agree, shall have
the right, but not the obligation, to enforce any rights included in the SHIRE
Patents relating to the Licensed Products, the Licensed Compound and/or any
metabolites resulting from the human ingestion and/or metabolism of the Licensed
Compound, in each case within the Field of Use, by taking action to abate or
initiating proceedings against any Third Party in connection with such Third
Party's manufacture, sale or use of the Licensed Compound and/or the Licensed
Products within the Field of Use. SHIRE and its Affiliates shall cooperate with
UNIVERSITY and/or TRIANGLE, as applicable, in such effort, including by being
joined as a party or parties to such proceeding if necessary; PROVIDED, THAT if
any such proceeding involves the assertion of, or revocation against, any claim
included in any patent or patent application included in the SHIRE Patents that
includes any compound other than the Licensed Compound, then SHIRE and its
Affiliates shall have the right to retain its own counsel, at UNIVERSITY's or
TRIANGLE's expense, as applicable, and to direct and/or control such proceedings
insofar as they involve the validity, construction or interpretation of any such
claim. In no event shall UNIVERSITY or TRIANGLE settle any infringement suit if
such settlement would impose any obligation or

                                       27
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burden on SHIRE or its Affiliates or affect the validity or enforceability of
any of the patents and patent applications included in the SHIRE Patents,
without the prior written consent of SHIRE (such consent not to be unreasonably
withheld). In the event that UNIVERSITY and/or TRIANGLE, as applicable, join
SHIRE or its relevant Affiliates as a party to any proceeding initiated by
UNIVERSITY and/or TRIANGLE to enforce any rights included in the SHIRE Patents,
UNIVERSITY and/or TRIANGLE, as applicable, agree to indemnify and hold SHIRE and
its Affiliates harmless as provided in SECTION 9.5(b). Any damages award or
settlement payments made to UNIVERSITY and/or TRIANGLE resulting from
UNIVERSITY's or TRIANGLE's enforcement of such rights in the SHIRE Patents in
excess of UNIVERSITY's and/or TRIANGLE's expenses shall be treated as
royalty-bearing Sales of Licensed Products and TRIANGLE shall make royalty
payments on such revenues in accordance with ARTICLE 3 of this Agreement. Any
remaining damages awarded or settlement payments received will be retained by
UNIVERSITY and TRIANGLE, and shared between them as they shall agree.

     8.4   SHIRE'S AND ITS AFFILIATES' RIGHT TO PURSUE THIRD PARTY INFRINGEMENT.
If, within sixty (60) days after receiving notice from SHIRE pursuant to SECTION
8.1 of a potential infringement by a Third Party of any rights included in the
SHIRE Patents relating to the Licensed Products, the Licensed Compound and/or
any metabolites resulting from the human ingestion and/or metabolism of the
Licensed Compound in the Field of Use, neither UNIVERSITY nor TRIANGLE provides
written notice to SHIRE of their intention to take action to seek to abate such
infringement or to institute proceedings to prevent the continuation thereof or
if, within a further sixty (60) days, neither UNIVERSITY nor TRIANGLE initiates
any action to seek to abate such infringement or to institute proceedings to
prevent the continuation thereof, then SHIRE and its Affiliates shall have the
right to seek to abate such infringement or to institute

                                       28
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proceedings to prevent the continuation thereof, at the expense of SHIRE and its
Affiliates. UNIVERSITY and/or TRIANGLE shall cooperate with SHIRE and its
Affiliates, at the expense of SHIRE and its Affiliates, in any such effort,
including by being joined as a party or parties to such action if necessary. In
the event that SHIRE or its relevant Affiliate joins UNIVERSITY and/or TRIANGLE
as a party or parties in any such action, SHIRE and its Affiliates agree to
indemnify and hold UNIVERSITY and/or TRIANGLE, as applicable, harmless as
provided in SECTION 9.5(b). Any damage award or settlement payments made to
SHIRE and its Affiliates in excess of SHIRE's and its Affiliates' expenses in
connection with any such action shall be shared by SHIRE and its Affiliates on
the one hand and UNIVERSITY and/or TRIANGLE on the other hand (UNIVERSITY and
TRIANGLE treated collectively for the purposes of this SECTION 8.4) on a ***
basis.

                 ARTICLE 9. WARRANTIES; EXCLUSION OF WARRANTIES;
                               AND INDEMNIFICATION

     9.1   WARRANTIES OF SHIRE.

           (a) SHIRE represents and warrants that it has used its best efforts
to include in EXHIBIT A-1 a complete list of all patents and patent applications
that, as of the Effective Date, contain one or more claims that cause such
patents and patent applications to be included within the SHIRE Patents.

           (b) SHIRE further represents and warrants that SHIRE and its
Affiliates possess all such rights as are necessary to grant to UNIVERSITY the
rights and licenses granted pursuant to ARTICLE 2 and the covenant not to sue
and release granted pursuant to SECTIONS 6.1 AND

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6.2. UNIVERSITY and TRIANGLE acknowledge that SHIRE and its Affiliates have not
undertaken any investigation with respect to the potential patent rights of any
Third Party.

     9.2   WARRANTIES OF EACH PARTY. Each of SHIRE, UNIVERSITY and TRIANGLE
represents and warrants to the other Parties that it is free to enter into this
Agreement and to carry out all of the provisions hereof.

     9.3   MERCHANTABILITY AND EXCLUSION OF WARRANTIES. UNIVERSITY and TRIANGLE
possess the necessary expertise and skill in the technical areas pertaining to
the SHIRE Patents and the Licensed Products to make, and have made, their own
evaluation of the capabilities, safety, utility and commercial application of
the SHIRE Patents and the Licensed Products. ACCORDINGLY, EXCEPT AS SET FORTH IN
SECTIONS 9.1 AND 9.2, SHIRE AND ITS AFFILIATES DO NOT MAKE ANY REPRESENTATION OR
WARRANTY OF ANY KIND WITH RESPECT TO THE VALIDITY OF SHIRE PATENTS OR THE
LICENSED PRODUCTS AND EXPRESSLY DISCLAIM ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT AND ANY
OTHER IMPLIED WARRANTIES WITH RESPECT TO THE CAPABILITIES, SAFETY, UTILITY, OR
COMMERCIAL APPLICATION OF THE SHIRE PATENTS OR THE LICENSED PRODUCTS.

     9.4   NO LIABILITY FOR CONSEQUENTIAL DAMAGES AND LIMITATION OF LIABILITY.
SHIRE AND ITS AFFILIATES SHALL NOT BE LIABLE, IN ANY EVENT, TO UNIVERSITY,
TRIANGLE OR ANY OF THEIR SUBLICENSEES OR AUTHORIZED THIRD PARTIES OR ANY OF
THEIR RESPECTIVE AFFILIATES OR CUSTOMERS OR ANY OTHER THIRD PARTY FOR ANY
COMPENSATORY, SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL OR EXEMPLARY DAMAGES,
RESULTING FROM THE

                                       30
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MANUFACTURE, TESTING, DESIGN, LABELING, USE, OFFER FOR SALE OR SALE OF LICENSED
PRODUCTS BY OR THROUGH UNIVERSITY OR TRIANGLE OR ANY OF THEIR SUBLICENSEES OR
AUTHORIZED THIRD PARTIES OR ANY OF THEIR RESPECTIVE AFFILIATES.

     9.5   INDEMNIFICATION.

           (a) TRIANGLE shall defend, indemnify, and hold harmless Indemnitees,
from and against any and all claims, demands, loss, liability, expense, or
damage (including Third Party investigative costs, court costs and reasonable
attorneys' fees) (collectively, "LOSSES") the Indemnitees may suffer, pay, or
incur as a result of claims, demands or actions against any of the Indemnitees
arising or alleged to arise by reason of, or in connection with, any and all
bodily injury (including death) and property damage caused or contributed to, in
whole or in part, by manufacture, testing, design, use, offer for sale, Sale, or
labeling of any Licensed Products by TRIANGLE, its Sublicensees or Authorized
Third Parties or any of their respective Affiliates, except for any Losses
arising from the Indemnitees' gross negligence or willful misconduct; PROVIDED
and on the condition that SHIRE fulfills its notice and other obligations under
SECTION 9.6 below, but only to the extent that any failure to fulfill such
notice and other obligations prejudices the rights of TRIANGLE.

           (b) Each Party shall indemnify and hold the Indemnitees harmless
from and against any and all Losses the Indemnitees may suffer, pay or incur as
a result of claims, demands or actions against any of the Indemnitees arising by
reason of, or in connection with: (i) the breach by that Party of any of its
representations and warranties set forth in this Agreement, except for any
Losses resulting from the Indemnitees' gross negligence or willful misconduct
and (ii) any action taken by that Party to enforce any rights included in the
SHIRE Patents in

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which the Indemnitee is joined as a party; PROVIDED and on the condition that
the Indemnitee fulfills its notice and other obligations under SECTION 9.6
below, but only to the extent that any failure to fulfill such notice and other
obligations prejudices the rights of the Indemnitor (as defined in SECTION 9.6).

     9.6   NOTICE OF CLAIMS; INDEMNIFICATION PROCEDURES. An Indemnitee entitled
to make a claim for indemnification under this ARTICLE 9 shall promptly notify
the other Party (the "INDEMNITOR") in writing of any matter in respect of which
the Indemnitee or any of its employees intend to claim such indemnification. The
Indemnitees shall permit, and shall cause its employees to permit, the
Indemnitor, at its discretion, to defend or settle any such matter and agree to
the complete control of such defense or settlement by the Indemnitor; PROVIDED,
HOWEVER, THAT such settlement does not adversely affect the Indemnitee's rights
under this Agreement or impose any obligations on the Indemnitee in addition to
those set forth herein in order for such Indemnitee to exercise its rights under
this Agreement. No such matter shall be settled without the prior written
consent of the Indemnitor (such consent not to be unreasonably withheld) and the
Indemnitor shall not be responsible for any legal fees or other costs incurred
other than as provided herein. The Indemnitee and its employees shall cooperate
fully with the Indemnitor and its legal representatives in the investigation and
defense or settlement of any matter covered by the applicable indemnification.
The Indemnitee shall have the right, but not the obligation, to be represented
by counsel of its own selection and expense.

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                          ARTICLE 10. CONFIDENTIALITY;
              PRESS RELEASES, DISCLOSURES AND PUBLIC ANNOUNCEMENTS

     10.1  TREATMENT OF CONFIDENTIAL INFORMATION. Except as otherwise provided
hereunder, during the term of this Agreement and for a period of*** years
thereafter:

           (a) UNIVERSITY and TRIANGLE and their respective Affiliates shall
retain in confidence and use only for purposes of this Agreement, any
information and data supplied by SHIRE and its Affiliates, or on behalf of SHIRE
and its Affiliates, to UNIVERSITY or TRIANGLE under this Agreement in writing
or, if supplied orally, which, within thirty (30) days of such disclosure, is
summarized by the Disclosing Party (as defined in SECTION 10.3) in writing; and

           (b) SHIRE and its Affiliates shall retain in confidence and use only
for purposes of this Agreement, any information and data supplied by UNIVERSITY
or TRIANGLE, or on behalf of UNIVERSITY or TRIANGLE, to SHIRE and its Affiliates
under this Agreement in writing or, if supplied orally, which, within thirty
(30) days of such disclosure, is summarized by the Disclosing Party in writing.

     For purposes of this Agreement, all such information and data which a Party
is obligated to retain in confidence shall be called "INFORMATION."

     10.2  RIGHT TO DISCLOSE. To the extent that it is reasonably necessary to
fulfill its obligations or exercise its rights under this Agreement, or any
rights which survive termination or expiration hereof, each Party and its
Affiliates may disclose Information to its licensees,

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sublicensees, consultants, outside contractors, actual or prospective investors,
governmental regulatory authorities and clinical investigators on condition that
such entities or persons agree:

           (a) to keep the Information confidential during the term of this
Agreement and for a period of *** years thereafter to the same extent as each
Party is required to keep the Information confidential; and

           (b) to use the Information only for such purposes as such Parties
are authorized to use the Information.

     Each Party or its Affiliates, licensees or sublicensees may disclose
Information to government or other regulatory authorities to the extent that
such disclosure is necessary for the preparation, filing, prosecution and
enforcement of patents on any inventions or discoveries of such Party, or to
obtain authorizations to conduct clinical trials or commercially market the
Licensed Products; PROVIDED, THAT, such Party is then otherwise entitled to
engage in such activities during the term of this Agreement or thereafter in
accordance with the provisions of this Agreement.

     10.3  RELEASE FROM RESTRICTIONS. The obligation not to disclose Information
shall not apply to any part of such Information that:

           (a) is or becomes patented, published or otherwise part of the
public domain, other than by unauthorized acts of the Party obligated not to
disclose such Information (for purposes of this ARTICLE 10, the "RECEIVING
PARTY") or its Affiliates, licensees or sublicensees in contravention of this
Agreement; or

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           (b) is disclosed to the Receiving Party or its Affiliates, licensees
or sublicensees by a Third Party, without breach of any obligations of
confidentiality; or

           (c) prior to disclosure under this Agreement, was already in the
possession of the Receiving Party, its Affiliates, licensees or sublicensees; or

           (d) results from the independent research and development of the
Receiving Party or its Affiliates, licensees or sublicensees; PROVIDED, THAT,
the persons developing such information have not had exposure to the Information
received from such other Party to this Agreement; or

           (e) is required by law, rule or regulation to be disclosed by the
Receiving Party, PROVIDED, THAT, except with respect to the specific terms of
this Agreement, the Receiving Party uses reasonable efforts to notify the
disclosing Party (for the purposes of this ARTICLE 10, the "DISCLOSING PARTY")
promptly upon learning of such requirement in order to give the Disclosing Party
reasonable opportunity to oppose such requirement; PROVIDED, FURTHER, THAT the
Parties shall cooperate in seeking confidential treatment of any such
Information that is required to be disclosed and, in any case where the
Receiving Party discloses such Information to a court or administrative agency,
such disclosure shall, to the extent the court or administrative agency permits,
be disclosed under seal; or

           (f) the Parties agree in writing may be disclosed.

     10.4  PRESS RELEASES, DISCLOSURES AND PUBLIC ANNOUNCEMENTS. On the date
that this Agreement is executed, the Parties may agree to issue a joint press
release; PROVIDED, THAT, the form of such press release shall be approved in
advance by all Parties. The specific terms of this Agreement shall be treated as
Information subject to the terms of SECTIONS 10.1 THROUGH 10.3 and,

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subject to the exclusions set forth in SECTION 10.3, no Party may publicly
disclose, except to legal, accounting and financial consultants and except as
otherwise provided herein, any such term without the prior written approval of
the other Parties, unless such disclosure is compelled by a court or
administrative agency or otherwise required by law, rule or regulation.
UNIVERSITY or TRIANGLE or their respective Affiliates may disclose the terms of
this Agreement to a bona fide prospective Sublicensee or Authorized Third Party
or other potential business partner, subject to an obligation of confidentiality
of such Sublicensee, Authorized Third Party or other potential business partner
that is no less restrictive than the confidentiality obligations contained
herein. SHIRE and UNIVERSITY hereby acknowledge that TRIANGLE has notified each
of them that this Agreement constitutes a material agreement to TRIANGLE and
must be filed by TRIANGLE with the Securities and Exchange Commission pursuant
to TRIANGLE's reporting obligations under the Securities and Exchange Act of
1934, as amended; PROVIDED, THAT the copy of this Agreement filed by TRIANGLE
with the Securities and Exchange Commission shall be appropriately redacted so
as to preserve the confidentiality of the specific financial terms of this
Agreement.

                        ARTICLE 11. TERM AND TERMINATION

     11.1  TERM. Unless sooner terminated as provided in this Agreement, the
term of this Agreement shall commence on the Effective Date and shall continue
in full force and effect until the expiration of the last to expire patent
included in the SHIRE Patents.

     11.2  TERMINATION. SHIRE shall have the right to terminate this Agreement
upon the occurrence of any one or more of the following events, PROVIDED, THAT
SHIRE has given UNIVERSITY and TRIANGLE the notice required in SECTION 11.3 and
has exhausted the dispute resolution procedures of SECTION 15.1, and neither the
UNIVERSITY nor TRIANGLE

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has cured or initiated reasonable steps to cure the breach described in such
notice within the time period specified in SECTION 11.3:

           (a) the institution of any proceeding by TRIANGLE or UNIVERSITY
under any bankruptcy, insolvency, or moratorium law; PROVIDED, HOWEVER THAT if
TRIANGLE or UNIVERSITY continues to perform its obligations and those of the
Party instituting such proceedings such that no harm results to SHIRE from the
institution of such proceedings, this Agreement shall continue in full force and
effect; or

           (b) any assignment by TRIANGLE or UNIVERSITY of substantially all of
its assets for the benefit of creditors; PROVIDED, HOWEVER, THAT if TRIANGLE or
UNIVERSITY continues to perform its obligations and those of the Party making
such assignment such that no harm results to SHIRE from such assignment, this
Agreement shall continue in full force and effect; or

           (c) placement of UNIVERSITY's or TRIANGLE's assets in the hands of a
trustee or a receiver unless the receivership or trust is dissolved within
thirty (30) days thereafter and PROVIDED, THAT in the case of any involuntary
bankruptcy proceeding, which is contested by such Party, such termination shall
not become effective until the bankruptcy court of jurisdiction has entered an
order upholding the petition, and PROVIDED, FURTHER, THAT if TRIANGLE or
UNIVERSITY continues to perform its obligations and those of the Party whose
assets have been placed in trust or receivership such that no harm results to
SHIRE from the placement of such Party's assets in trust or receivership, this
Agreement shall continue in full force and effect; or

           (d) the breach by UNIVERSITY or TRIANGLE of any material term of
this Agreement.

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     11.3  EXERCISE. SHIRE may exercise its right of termination by giving
UNIVERSITY and TRIANGLE sixty (60) days' prior written notice of SHIRE's
election to terminate, except with respect to failure by UNIVERSITY or TRIANGLE
to make any payment required pursuant to this Agreement when due for which SHIRE
may provide thirty (30) days prior written notice of its election to terminate.
Any such notice shall include the basis for such termination. Upon the
expiration of the applicable notice period, this Agreement shall automatically
terminate unless UNIVERSITY and/or TRIANGLE has cured such breach or has
initiated reasonable steps to cure the breach specified in such notice, in which
case this Agreement shall automatically terminate if such breach has not been
cured within a further thirty (30) days following the expiration of the
applicable notice period. Such notice and termination shall not prejudice
SHIRE's right to receive royalties or other sums due hereunder and shall not
prejudice any cause of action or claim of SHIRE.

     11.4  FAILURE TO ENFORCE. The failure of SHIRE and its Affiliates, at any
time, or for any period of time, to enforce any of the provisions of this
Agreement, shall not be construed as a waiver of such provisions or as a waiver
of the right of SHIRE and its Affiliates thereafter to enforce each and every
such provision of this Agreement.

     11.5  TERMINATION BY UNIVERSITY AND TRIANGLE. Subject to their obligations
under the 1996 TRIANGLE Agreement, and subject to ARTICLE 16 below, and PROVIDED
THAT UNIVERSITY has provided to SHIRE the notice required in SECTION 11.6 and
has exhausted the dispute resolution procedures of SECTION 15.1 and SHIRE has
not cured the breach described in such notice within the time period specified
in SECTION 11.6, UNIVERSITY shall have the right to terminate this Agreement
upon the occurrence of any breach of a material term of this Agreement by SHIRE.
For the avoidance of doubt, UNIVERSITY shall exercise any such right

                                       38
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to terminate this Agreement on behalf of itself and TRIANGLE and TRIANGLE shall
have no separate right to terminate this Agreement by itself, whether for its
own benefit or for the benefit of itself and UNIVERSITY.

     11.6  EXERCISE. UNIVERSITY may exercise its right of termination pursuant
to SECTION 11.5 by giving SHIRE sixty (60) days' prior written notice of
UNIVERSITY's election to terminate. The notice shall include the basis for such
termination. Upon the expiration of such sixty (60) day period, this Agreement
shall automatically terminate unless SHIRE has cured such breach or has
initiated reasonable steps to cure the breach specified in such notice, in which
case this Agreement shall automatically terminate if such breach has not been
cured within a further thirty (30) days following the expiration of the notice
period. Such notice of termination shall not prejudice any cause of action or
claim of UNIVERSITY (or TRIANGLE) accrued or to accrue on account of any breach
or default by SHIRE.

     11.7  EFFECT OF TERMINATION.

           (a) If this Agreement is terminated by SHIRE pursuant to
SECTION 11.2 and:

               (i)   TRIANGLE is not in breach of the 1996 TRIANGLE Agreement,
then SHIRE and TRIANGLE shall enter into an agreement on substantially the same
terms and conditions as this Agreement; or

               (ii)  If UNIVERSITY has entered into a sublicense agreement with
a party other than TRIANGLE pursuant to ARTICLE 16, and such sublicensee is not
in breach of its sublicense agreement, then SHIRE and such sublicensee shall
enter into an agreement on substantially the same terms and conditions as in
this Agreement.

           (b) Upon expiration or termination of this Agreement for any reason:

                                       39
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               (i)   All rights and licenses granted by SHIRE and its
Affiliates to UNIVERSITY and TRIANGLE under this Agreement shall automatically
and immediately revert back to SHIRE and its Affiliates or shall terminate,
except for those rights which are expressly stated to survive expiration or
termination of this Agreement as set forth in SECTION 15.8;

               (ii)  Each Party shall use its best efforts to return, and shall
cause its Sublicensees to return, or at the Disclosing Party's direction, to
destroy, all data, writings and other documents and tangible materials,
including all Information, supplied by the Disclosing Party to such Party; and

               (iii) SECTION 11.7(a) shall apply if and to the extent such
provision is applicable.

           (c) Expiration or termination of this Agreement for any reason shall
not affect TRIANGLE's (and, if and as applicable pursuant to SECTION 3.1(b),
UNIVERSITY's) obligation to pay royalties accruing to SHIRE and its Affiliates
under the provisions of this Agreement while then in effect.

                             ARTICLE 12. ASSIGNMENT;
                       NO SEPARATE ACTION; JOINT LIABILITY

     This Agreement and all of the provisions hereof shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and
permitted assigns. Neither EMORY nor UGARF shall assign or sell its rights,
liabilities or obligations under this Agreement or any part thereof without the
prior written consent of SHIRE and any such purported assignment shall be void.
TRIANGLE may not assign or sell its rights, liabilities or obligations under
this Agreement or any part thereof without the prior written consent of SHIRE;

                                       40
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except that TRIANGLE may, without consent, assign or sell its rights,
liabilities or obligations under this Agreement: (a) in connection with the
transfer or sale of all or substantially all of its business to which this
Agreement pertains; (b) in the event of its merger or consolidation with another
company; or (c) an Affiliate. Notwithstanding the foregoing, EMORY, UGARF and
TRIANGLE may each only assign this Agreement if, simultaneously with such
assignment, EMORY, UGARF or TRIANGLE, as applicable, also assigns to the same
person the BCH-13520 Agreement; and PROVIDED, FURTHER, THAT any assignee of
EMORY or UGARF, as applicable, will acquire the right to enforce the UNIVERSITY
Patents and any assignee of TRIANGLE will acquire the right to enforce the
TRIANGLE Patents. SHIRE and its Affiliates may assign any of its rights,
liabilities or obligations hereunder upon thirty (30) days advanced written
notice to UNIVERSITY and TRIANGLE; PROVIDED, THAT the assignee will acquire the
right to enforce the SHIRE Patents and the BCH-13520 Patents. Any permitted
assignee shall assume all obligations of its assignor under this Agreement. No
assignment shall relieve any Party of responsibility for the performance of any
accrued obligation which such Party has under this Agreement. EMORY and UGARF
shall not act separately under this Agreement and EMORY and UGARF shall be
jointly liable for their obligations under this Agreement.

                       ARTICLE 13. REGISTRATION OF LICENSE

     UNIVERSITY or TRIANGLE may register at UNIVERSITY's or TRIANGLE's expense,
the license granted under this Agreement in any country of the Licensed
Territory where the use, sale or manufacture of a Licensed Product in such
country would be covered by a claim of a SHIRE Patent. Upon request by
UNIVERSITY or TRIANGLE, SHIRE and its Affiliates agree promptly to execute any
"short form" licenses submitted to it by UNIVERSITY or TRIANGLE, and reasonably
acceptable to SHIRE, in order to effect the foregoing registration in such
country.

                                       41
<Page>

           ARTICLE 14. NOTIFICATION AND AUTHORIZATION UNDER DRUG PRICE
                   COMPETITION AND PATENT TERM RESTORATION ACT

     14.1  NOTICES RELATING TO THE ACT. SHIRE shall notify UNIVERSITY and
TRIANGLE of: (a) the issuance of each U.S. patent included among the SHIRE
Patents, giving the date of issue and patent number for each such patent; and
(b) each notice pertaining to any patent included among the SHIRE Patents which
SHIRE or its relevant Affiliate receives as patent owner pursuant to the Drug
Price Competition and Patent Term Restoration Act of 1984, as amended
(hereinafter the "ACT"), including, notices pursuant to Sections 101 and 103 of
the Act from persons who have filed an abbreviated NDA ("ANDA") or a "paper"
NDA. Such notices shall be given promptly, but in any event within ten (10) days
of SHIRE's notice of each such patent's date of issue or receipt of each such
notice pursuant to the Act, whichever is applicable. SHIRE and its Affiliates
hereby authorize TRIANGLE to submit to the U.S. Food and Drug Administration
information concerning any SHIRE Patent that covers a Licensed Product for
publication in the FDA publication entitled "Approved Drug Products with
Therapeutic Equivalence Evaluations," commonly known as the "Orange Book," or
any successor thereto, in connection with such Licensed Product.

     14.2  AUTHORIZATION RELATING TO PATENT TERM EXTENSION. SHIRE and its
Affiliates hereby authorize UNIVERSITY or TRIANGLE: (a) to include in any NDA
for a Licensed Product, as UNIVERSITY or TRIANGLE may deem appropriate under the
Act, a list of patents included among the SHIRE Patents that relate to such
Licensed Product and such other information as UNIVERSITY or TRIANGLE, in its or
their reasonable discretion, believes is appropriate to be filed pursuant to the
Act; and (b) subject to SHIRE's consent (which consent will not be unreasonably
withheld or delayed), to exercise any rights that may be exercisable by SHIRE or
its relevant Affiliate as patent owner under the Act to apply for an extension
of the

                                       42
<Page>

term of any patent included among the SHIRE Patents; PROVIDED, THAT, UNIVERSITY
or TRIANGLE shall use its reasonable efforts to obtain an extension of the term
of any patent included in the SHIRE Patents if such extension is available. In
the event that applicable law in any other country of the Licensed Territory
provides for the extension of the term of any patent included among the SHIRE
Patents in such country, upon request by UNIVERSITY or TRIANGLE, SHIRE or its
relevant Affiliate shall use its reasonable efforts to obtain such extension or,
in lieu thereof, shall authorize UNIVERSITY or TRIANGLE to apply for such
extensions in consultation with SHIRE; PROVIDED, THAT, UNIVERSITY or TRIANGLE
shall exercise its reasonable efforts to obtain any such extension in such
country upon receipt of authorization from SHIRE or its relevant Affiliate in
accordance with this SECTION 14.2. SHIRE and its Affiliates agree to cooperate
in the exercise of the authorization granted herein or which may be granted
pursuant to this SECTION 14.2 and will execute such documents and take such
additional action as UNIVERSITY or TRIANGLE may reasonably request in connection
therewith.

                            ARTICLE 15. MISCELLANEOUS

     15.1  ARBITRATION.

           (a) The Parties shall initially attempt in good faith to resolve any
significant controversy, claim, or dispute arising out of or relating to this
Agreement or significant breach thereof or allegation of material breach under
ARTICLE 11, (hereinafter referred to as a "DISPUTE") through at least one
face-to-face negotiation between senior executives of the rank of at least Vice
President, or in the case of EMORY and/or UGARF, an officer of EMORY and/or
UGARF of equivalent rank and with power to bind each of EMORY and/or UGARF, at
the place of business of the Party of whom the meeting is first requested, or in
the case of a meeting

                                       43
<Page>

requested by EMORY and UGARF, at EMORY. If the Dispute is not resolved within
thirty (30) business days (or such other period of time mutually agreed upon by
the Parties) of commencing such face-to-face negotiations, or if the Party
against which a claim has been asserted refuses to attend such negotiations or
does not otherwise participate in such negotiations within thirty (30) business
days (or such other period of time mutually agreed upon by the Parties) from the
date of notice of a Dispute, then the Parties agree to submit the Dispute to
arbitration conducted under the auspices of the American Arbitration Association
pursuant to that organization's rules for commercial arbitration and according
to the procedures set forth on EXHIBIT F attached hereto. Any arbitration
initiated by UNIVERSITY or TRIANGLE shall be held in Montreal, Canada. Any
arbitration initiated by SHIRE and its Affiliates shall be held in Atlanta,
Georgia.

           (b) Nothing in this Agreement shall be deemed to prevent any Party
from seeking preliminary injunctive relief (or any other provisional remedy)
from any court having jurisdiction over the Parties and the subject matter of
the Dispute.

     15.2  LEGAL COMPLIANCE. TRIANGLE shall comply with any and all applicable
laws and regulations relating to the manufacture, use, sale, labeling or
distribution of Licensed Products and shall not take any action which would
cause any Party or any of their respective Affiliates, licensees or sublicensees
to violate any applicable laws or regulations.

     15.3  INDEPENDENT CONTRACTOR. UNIVERSITY's and TRIANGLE's relationship to
SHIRE and its Affiliates shall be that of a licensee or sublicensee only. No
Party to this Agreement shall be, nor be deemed to be, an employee, agent,
co-venturer or legal representative of any other Party for any purpose related
to this Agreement. No Party shall have any authority to act for, or on behalf
of, any other Party in any matter, nor to hold itself as having any right to

                                       44
<Page>

do so. Persons retained by one Party as employees or agents shall not, by reason
thereof, be deemed to be employees or agents of any other Party.

     15.4  PATENT MARKING. TRIANGLE shall, and shall ensure that its
Sublicensees shall, mark Licensed Products Sold in the United States with United
States patent numbers in accordance with United States law and that Licensed
Products manufactured or Sold in other countries shall be marked in compliance
with all applicable laws in such countries. The foregoing obligations shall be
subject to size and space limitations.

     15.5  USE OF NAMES. Each Party shall obtain the prior written approval of
any other Party prior to it, or any of its Affiliates, licensees or
sublicensees, making use for any commercial purpose (including in any publicity
release) of the name of such other Party, any of its Affiliates or any of its
respective employees.

     15.6  GOVERNING LAW. This Agreement and all amendments, modifications,
alterations, or supplements thereto, and the rights of the Parties hereunder,
shall be construed under and governed by the laws of the United States of
America and the State of New York (without regard to conflicts of laws
provisions).

     15.7  ENTIRE AGREEMENT. This Agreement and the BCH-13520 Agreement
constitute the entire agreement between the Parties with respect to the subject
matter hereof, and supersede any prior understandings, agreements or
representations by or between or among the Parties, written or oral (including,
that certain Binding Material Terms Agreement between the Parties dated as of
July 26, 2002), which may have related to the subject matter hereof in any way.
This Agreement shall not be modified, amended or terminated, except as herein
provided, or except by another agreement in writing executed by duly authorized
officers of the Parties hereto.

                                       45
<Page>

     15.8  SURVIVAL. ARTICLES 5, 9, 10 AND 12 and Sections 4.2, 4.3, 6.2,
6.3(a), 6.4(a), 11.7, 15.1, 15.5, 15.6, 15.8, 15.11 AND 15.12 shall survive
expiration or termination of this Agreement for any reason. In addition to the
foregoing Articles and Sections: (i) SECTION 6.4(b) shall survive termination of
this Agreement by SHIRE pursuant to SECTION 11.2(d) (subject to any rights of
UNIVERSITY and/or TRIANGLE to initiate any interference, opposition, revocation
or other proceedings, or to induce, assist or direct any Third Party in
challenging the validity, enforceability or patentability of any claims covering
an Unlicensed Compound included in any patents and/or patent applications
included in the SHIRE Patents pursuant to SECTION 6.4(c)); and (ii)
SECTION  6.3(b)  shall  survive  termination  of this  Agreement  by  UNIVERSITY
pursuant to SECTION 11.5.

     15.9  SEVERABILITY. All rights and restrictions contained herein may be
exercised and shall be applicable and binding only to the extent that they do
not violate any applicable laws and are intended to be limited to the extent
necessary so that they will not render this Agreement illegal, invalid or
unenforceable. In the event that any provision of this Agreement shall be held
to be unenforceable, invalid or in contravention of applicable laws, such
provision or portion of a provision shall be of no effect, and the Parties shall
negotiate in good faith to replace such provision with a provision which effects
to the extent possible the original intent of such provision. In case such
provisions cannot be agreed upon, the invalidity, unenforceability or illegality
of one or several provisions of the Agreement shall not affect the validity of
the Agreement as a whole, unless the invalid, enforceable or illegal provisions
are of such essential importance to this Agreement that it is to be reasonably
concluded that the Parties would not have entered into this Agreement without
the invalid provisions.

                                       46
<Page>

     15.10 FORCE MAJEURE. Any delays in, or failure of performance of any Party
to this Agreement (other than any delay in, or failure of performance of, any
payment obligation of UNIVERSITY and TRIANGLE under this Agreement), shall not
constitute a default hereunder, or give rise to any claim for damages, if and to
the extent caused by occurrences beyond the control of the Party affected,
including, acts of God, strikes or other concerted acts of workmen, fires,
floods, explosions, riots, war, rebellion, sabotage, acts of terrorism, acts of
governmental authority or failure of governmental authority to issue licenses or
approvals which may be required.

     15.11 ATTORNEYS' FEES. If any action at law, in equity or under
SECTION 15.1 of this Agreement is necessary to enforce or interpret the terms of
this Agreement,  the prevailing Party shall be entitled to reasonable attorneys'
fees,  costs and  necessary  disbursements,  in addition to any other  relief to
which the Party may be entitled.

     15.12 INTERPRETATION. This Agreement is executed in the English language.
The language used in this Agreement shall be deemed to be the language chosen by
the Parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any person. In this Agreement, the
singular shall include the plural and vice versa and the words "INCLUDING" and
"INCLUDES" shall be deemed to be followed by the phrase "WITHOUT LIMITATION."

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

                                       47
<Page>

                     ARTICLE 16. SUBSTITUTION OF SUBLICENSEE

     16.1  SUBSTITUTIONS. In the event that the 1996 TRIANGLE Agreement is
terminated and TRIANGLE ceases to be UNIVERSITY's sublicensee for any reason,
then the following provisions shall apply to UNIVERSITY's substituting a
different sublicensee for TRIANGLE:

           (a) UNIVERSITY shall promptly notify SHIRE of TRIANGLE's ceasing to
be a sublicensee;

           (b) UNIVERSITY shall use its best efforts to identify to SHIRE in
writing one or more potential sublicensees within six (6) months of TRIANGLE's
ceasing to be a sublicensee. Any such potential sublicensees shall be
commercially reasonable and shall have expertise and skill in the technical
areas pertaining to the SHIRE Patents. In the event that UNIVERSITY fails to
identify one or more potential sublicensees within such six (6) month period,
SHIRE may, upon at least thirty (30) days' prior written notice, terminate this
Agreement, unless within such notice period, UNIVERSITY identifies one or more
potential sublicensees.

           (c) Within thirty (30) days of UNIVERSITY's identification of one or
more potential sublicensees, SHIRE shall notify UNIVERSITY in writing of whether
or not any of such sublicensees are acceptable. SHIRE shall not unreasonably
withhold acceptance of such potential sublicensees and may only reject any such
potential sublicensee if it does not meet the criteria set forth in the
preceding SECTION 16.1(b). Should SHIRE reject any such potential sublicensee
then it shall provide a detailed, written explanation for its bases for such
rejection. If UNIVERSITY disputes any such rejection, the dispute shall be
promptly resolved in accordance with the dispute resolution procedures set forth
in SECTION 15.1. Should SHIRE reject all of the potential sublicensees proposed
by UNIVERSITY, then UNIVERSITY shall have another six (6)

                                       48
<Page>

months from the date of any notice of rejection by SHIRE (or, if SHIRE's
rejection of such potential sublicensees is disputed by UNIVERSITY and SHIRE's
rejection is affirmed following the dispute resolution procedures set forth in
SECTION 15.1, six (6) months from the date of resolution of any such dispute)
within which to propose one or more alternative sublicensees that meet the
criteria set forth in pursuant to SECTION 16.1(b); PROVIDED, THAT, if UNIVERSITY
fails to identify any such potential sublicensees within such further six (6)
month period, or if all of the alternative sublicensees proposed by UNIVERSITY
within such further six (6) month period, are also rejected by SHIRE pursuant to
this SECTION 16.1(c) and such rejections are not determined through the dispute
resolution procedures of SECTION 15.1 to have been improperly made, SHIRE may,
upon at least thirty (30) days prior written notice to UNIVERSITY, terminate
this Agreement; PROVIDED, THAT, SHIRE shall not exercise any such right of
termination until the resolution of a dispute (if any) pursuant to the dispute
resolution procedures set forth in SECTION 15.1.

           (d) If SHIRE accepts any such potential sublicensee, then UNIVERSITY
shall negotiate in good faith to enter into a sublicensing agreement with such
approved sublicensee which sublicense agreement shall include terms and
conditions at least as favorable to SHIRE and its Affiliates as SECTIONS *** and
ARTICLES *** of this Agreement and SECTIONS *** of the BCH-13520 Agreement. In
the event that UNIVERSITY and such approved sublicensee fail to execute a
sublicensing agreement within one hundred and twenty (120) days of the date of
SHIRE's notice approving such sublicensee, UNIVERSITY shall promptly notify
SHIRE of such failure in writing and SHIRE may, upon at least thirty (30) days

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***  Portions of this page have been omitted pursuant to a request for
     Confidential Treatment and filed separately with the Commission.

                                       49
<Page>

prior written notice to UNIVERSITY, terminate this Agreement, unless within such
notice period, UNIVERSITY and the approved sublicensee execute a sublicense
agreement as described in this SECTION 16.1(d). UNIVERSITY shall provide a copy
of any such sublicense agreement within thirty (30) days of execution thereof.

                               ARTICLE 17. NOTICES

     All notices, statements and reports required to be given under this
Agreement shall be in writing in the English language, shall be effective when
received and shall be delivered in person or sent by mail, registered or
certified, postage prepaid (return receipt requested), to the Parties at the
following addresses:

         TO SHIRE BIOCHEM:           Shire Biochem Inc.
                                     275 Armand-Frappier Boulevard
                                     Laval, Quebec, H7V 4A7
                                     CANADA
                                     Attention: Shona McDiarmid
                                     Telephone: 450-978-7892
                                     Facsimile: 450-978-7994

         TO SHIRE PHARMACEUTICALS
         GROUP:                      Shire Pharmaceuticals Group plc
                                     Hampshire International Business Park
                                     Chineham, Basingstoke
                                     Hampshire RG24 8EP,
                                     UNITED KINGDOM
                                     Attention: General Counsel
                                     Telephone: +44-12-5689-4117
                                     Facsimile: +44-12-5689-4710

         TO EMORY:                   Emory University
                                     2009 Ridgewood Drive
                                     Atlanta, Georgia  30322
                                     USA
                                     Attention: Director, Office of Technology
                                                Transfer
                                     Telephone: 404-727-221
                                     Facsimile: 404-727-1271

                                       50
<Page>

         TO UGARF:         University of Georgia Research Foundation, Inc.
                           Boyd Graduate Studies Research Center, 6th Floor
                           Athens, GA  30602-7411
                           USA
                           Attention:  Director, Technology
                                       Commercialization Office
                           Telephone: 706-583-0352
                           Facsimile: 706-542-3837

         TO TRIANGLE:      Triangle Pharmaceuticals, Inc.
                           4 University Place
                           4611 University Drive
                           Durham, NC 27707
                           USA
                           Attention: General Counsel
                           Telephone: 919-493-5980
                           Facsimile: 919-402-1192

Any Party hereto may change the address to which notices to such Party are to be
sent by giving notice to the other Parties at the address and in the manner
provided above. Any notice may be given, in addition to the manner set forth
above, by facsimile, PROVIDED, THAT the Party giving such notice obtains
acknowledgment by facsimile that such notice has been received by the Parties to
be notified. Notice made in this manner shall be deemed to have been given when
such acknowledgment has been transmitted.

                                       51
<Page>

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

EMORY UNIVERSITY                                UNIVERSITY OF GEORGIA RESEARCH
                                                FOUNDATION, INC.

By:    /s/ Mary L. Severson, PhD., JD           By:    /s/ Robert R. Fincher
       ------------------------------                  ---------------------

Name:  Mary L. Severson, PhD., JD               Name:  Robert R. Fincher

Title: Assistant Vice President and Director    Title: Chief Licensing Officer
       Office of Technology Transfer

TRIANGLE PHARMACEUTICALS, INC.

By:    /s/ R. Andrew Finkle
       --------------------

Name:  R. Andrew Finkle

Title: Executive Vice President

SHIRE BIOCHEM INC.                              SHIRE PHARMACEUTICALS GROUP PLC

By:    /s/ Joseph Rus                           By:    /s/ Shona McDiarmid
       --------------                                  -------------------

Name:  Joseph Rus                               Name:  Shona McDiarmid

Title: President and CEO                        Title: Vice President,
                                                       Intellectual Property

                                       52

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