Document:

EX-10.6

 Exhibit 10.6 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE
OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 EXECUTION VERSION 

COLLABORATION AGREEMENT 

This COLLABORATION AGREEMENT (the “Agreement”), effective as of November 3, 2006 (the “Effective
Date”), is made by and between Ambit Biosciences Corporation a Delaware corporation, having a principal place of business at 4215 Sorrento Valley Boulevard, San Diego, CA 92121 (“Ambit”), and Cephalon, Inc., a Delaware
corporation, having a principal place of business at 41 Moores Road, Frazer, PA 19355 (“Cephalon”). 
 RECITALS

 WHEREAS, Ambit has expertise in the profiling of pharmaceutical compounds against human protein kinases and expertise in
the research and development of pharmaceutical compounds; 
 WHEREAS, Cephalon has expertise in the research, development and
commercialization of pharmaceutical compounds; 
 WHEREAS, the Parties have entered into a Profiling Services Agreement, dated as of
the date hereof (the “Profiling Services Agreement”), the terms of which are incorporated as set forth in Attachment A herein; 

WHEREAS, Cephalon and Ambit wish to enter into a collaboration employing the Parties’ medicinal chemistry and biology
capabilities, in order to discover, develop and commercialize pharmaceutical compounds subject to and in accordance with the terms and conditions of this Agreement (the “Collaboration”); and 

WHEREAS, in addition, Ambit wishes to analyze and assess the activity of certain of Cephalon’s compounds against Ambit kinase
targets, and to develop and commercialize those compounds subject to the terms and conditions of this Agreement. 
 NOW THEREFORE, in
consideration of the mutual covenants and conditions hereinafter set forth in this Agreement, the Parties hereto agree as follows: 
 ARTICLE
I. 
 DEFINITIONS 
 As used
herein, the following terms shall have the meanings set forth below: 
 1.1 “Affiliate” shall mean, with respect to a
particular Party, any Person controlled by, controlling, or under common control with such Party. For the purpose of this Section 1.1 only, “control” of a Person shall mean (a) the possession, directly or indirectly, of the power
to 

 
direct the management or policies of such Person; whether through the ownership of voting securities, by contract or otherwise; or (b) the ownership; directly or indirectly, of more than
fifty percent (50%) of the voting securities or other ownership interest of such Person. 
 1.2 “Ambit Compound” shall
mean any compound that (a) is brought to the Collaboration by Ambit, (b) is Controlled by Ambit, and (c) is proprietary to Ambit by virtue of being claimed or covered by an Ambit Patent or being part of the Ambit Know-How. 
 1.3 “Ambit IP” shall mean Ambit Patents and Ambit Know-how. 
 1.4 “Ambit Know-how” shall mean all
proprietary ideas, inventions, data, know-how, instructions, processes, formulas, materials, expert opinion, technology or other information (including, biological, chemical, physical and analytical data and
information, and any structure-function data), that (a) is either (i) Controlled by Ambit as of the Effective Date, or (ii) discovered, developed, conceived, reduced to practice or acquired
during the Collaboration Term outside the course of both of the Collaboration and Ambit’s research and development under Article IV by employees or agents of Ambit or any of its respective Affiliates, either alone or jointly, and is Controlled
by Ambit and (b) is necessary for the discovery, development, manufacture or use of Licensed Compounds, Collaboration Compounds and Derivative Compounds and/or the development, manufacture, use, sale or commercialization of corresponding
Licensed Products and Collaboration Products; provided, however, that Ambit Know-How shall not include Ambit Patents, Licensed Compound IP, Collaboration IP or Cephalon IP. 

1.5 “Ambit Patents” shall mean , all Patents Controlled by Ambit or its Affiliates as of the Effective Date, or any other
Patent Controlled by Ambit or its Affiliates during the Collaboration Term and, with respect to Collaboration Clinical Candidates and Licensed Compounds, all Patents Controlled by Ambit or its Affiliates during the Term; in each case, necessary for
the discovery (in the case of Collaboration Compounds), development, manufacture, importation or use of one or more Licensed Compounds, Collaboration Compounds, Derivative Compounds and/or the development, manufacture, use, sale, importation or
commercialization of corresponding Licensed Products or Collaboration Products. 
 1.6 “Ambit Target” shall mean
(a) the [***] Targets specified in Schedule A, and (b) such Targets that may be mutually agreed upon by the Parties pursuant to
Section 4.2 to replace one (1) or more of such Targets specified in Schedule A, provided that in no event shall any such Targets include the Cephalon Exclusive Targets. 

1.7 “Cephalon Compound” shall mean any Cephalon Library Compound and any additional compound brought to the Collaboration by
Cephalon. 
 1.8 “Cephalon Exclusive Targets” shall mean the Targets, for which Cephalon has or expects to have active
programs or Third Party obligations during the Collaboration Term, as specified in Schedule B and as may be reasonably updated from time to time by Cephalon. 

  
  

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 1.9 “Cephalon IP” shall mean Cephalon Patents and Cephalon Know-how. 
 1.10 “Cephalon Know-how” shall mean
all proprietary ideas, inventions, data, know-how, instructions, processes,’ formulas, materials, expert opinion, technology or other information (including biological, chemical, physical and analytical
data and information, and any structure-function data), that (a) is either (i) Controlled by Cephalon as of the Effective Date, or (ii) discovered, developed, conceived, reduced to practice or
acquired during the Collaboration Term outside the course of both of the Collaboration and Ambit’s research and development under Article IV by employees or agents of Cephalon or any of its respective Affiliates, either alone or jointly, and is
Controlled by Cephalon and (b) is necessary for the discovery, development, manufacture or use of Licensed Compounds and Collaboration Compounds and/or the development, manufacture, use, sale or commercialization of corresponding Licensed
Products and Collaboration Products; provided, however, that Cephalon Know-How shall not include Cephalon Patents, Licensed Compound IP, Ambit IP or Collaboration IP. 

1.11 “Cephalon Library Compounds” shall mean Cephalon’s small molecule screening deck of approximately [***], without chemical structures. Cephalon Analogue Compounds provided by Cephalon to Ambit pursuant to Section 4.3.2 shall be deemed Cephalon
Library Compounds for the purposes of Article IV. 
 1.12 “Cephalon Patents” shall mean all Patents Controlled by Cephalon
or its Affiliates as of the Effective Date, or any other Patent Controlled by Cephalon or its Affiliates during the Collaboration Term and, with respect to Collaboration Clinical Candidates and Licensed Compounds, all Patents Controlled by Cephalon
or its Affiliates during the Term; in each case, necessary for the discovery, development, manufacture, importation or use of one or more Licensed Compounds or Collaboration Compounds and/or the development, manufacture, use, sale, importation or
commercialization of corresponding Licensed Products and Collaboration Products. 
 1.13 “Cephalon Target” shall mean all
Targets other than the Ambit Targets. 
 1.14 “Change of Control” shall mean with respect to Ambit: (a) the
stockholders of Ambit approve a sale of all or substantially all of Ambit’s assets or business to which this Agreement relates to a Third Party or a plan of complete liquidation of Ambit; (b) the stockholders of Ambit approve a merger,
reorganization or consolidation involving Ambit and a Third Party in which the stockholders of Ambit immediately prior to such transaction cease to own collectively fifty percent (50%) or more of the combined voting equity securities of a
successor entity; or (c) the stockholders approve an acquisition of fifty percent (50%) or more of the voting equity securities of Ambit by a Third Party. 

1.15 “Collaboration” shall have the meaning set forth in the Recitals, and mean any research and development activities
undertaken by both Ambit and Cephalon under the direction 

  
  

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and oversight of the JRC that relates to the development of Collaboration Compounds and Collaboration Clinical Candidates having activity against the Collaboration Target(s). 

1.16 “Collaboration Clinical Candidate” shall mean a Collaboration Compound selected by Cephalon as a candidate for IND-enabling studies pursuant to Section 8.1. 
 1.17 “Collaboration Compound” shall
mean, (a) with respect to the First Collaboration Target, (i) the Ambit Compounds that currently are the subject of Ambit’s research and development efforts, and (ii) any other compounds agreed by the JRC to be designated as
“Collaboration Compounds”; and (b) with respect to the Second Collaboration Target, the compounds agreed by the JRC to be designated as “Collaboration Compounds,” which compounds may include Ambit Compounds, Cephalon
Compounds and/or Non-Exclusive Compounds; in each case, including any compound that is derived, directly or indirectly, from such compounds that either (x) inhibits the activity of the First Collaboration
Target according to the criteria set forth in the Research Plan or (y) appropriately inhibits or modulates the activity of the Second Collaboration Target at a level of potency to be established by the JRC, as applicable. For purposes of
clarity, any compound synthesized in the course of the Collaboration and based on a Cephalon Compound or Ambit Compound that is active against a Collaboration Target at the level of potency and selectivity established by the JRC shall be deemed a
Collaboration Compound. 
 1.18 “Collaboration IP” shall mean Collaboration Patents and Collaboration Know-how. Collaboration IP shall not include Ambit IP, Cephalon IP or Licensed Compound IP. 
 1.19
“Collaboration Know-how” shall mean all proprietary ideas, inventions, data, know-how, instructions, processes, formulas, materials, expert opinion,
technology or other information (including, without limitation, (a) biological, chemical, physical and analytical data and information relating to Collaboration Compounds, and (b) any
structure-function data related to Collaboration Compounds), in each case which is discovered, developed, conceived or reduced to practice during the Collaboration Term and in the course of the Collaboration,
by employees or agents of Cephalon, Ambit or any of their respective Affiliates, either alone or jointly, and which is necessary for the discovery, development, manufacture or use of Collaboration Compounds and/or the development, manufacture, use,
sale or commercialization of corresponding Collaboration Products; provided, however, that Collaboration Know-How shall not include Collaboration Patents, Licensed Compound IP, Ambit IP or
Cephalon IP. 
 1.20 “Collaboration Patents” shall mean (a) all patents and patent applications claiming any invention
or discovery which was conceived or reduced to practice during the Collaboration Term and in the course of the Collaboration, by employees or agents of Ambit, Cephalon or any of their respective Affiliates, either alone or jointly (including,
without limitation, the synthesis and composition of matter of any Collaboration Compound or any Collaboration Product, or method of use thereof); and (b) any divisions, continuations, continuations-in-part, reissues, reexaminations, extensions or other governmental actions which extend any of the subject matter of the patent applications or patents in (a) above, and any substitutions,
confirmations, registrations, revalidations, or additions of any of the foregoing; provided, however, that Collaboration Patents shall not include any Ambit Patents, Cephalon Patents or Licensed Compound Patents. 

  
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 1.21 “Collaboration Product” shall mean any pharmaceutical product in any form
or formulation that contains a Collaboration Compound that is sold by Cephalon or its Sublicensees or Affiliates. 
 1.22
“Collaboration Targets” shall mean the First Collaboration Target and the Second Collaboration Target. 
 1.23
“Collaboration Term” shall mean the Initial Term plus any extension pursuant to Section 16.2. 
 1.24
“Combination Product” shall mean a Collaboration Product or Licensed Product, as applicable, that comprises two (2) or more active ingredients, at least one (1) of which is a Collaboration Compound or Licensed Compound.

 1.25 “Commercially Reasonable Efforts” shall mean, in respect to each Party, efforts and resources expected to be used
by biotechnology companies of a similar size and resource to that Party for a product at a similar stage in its research, development or commercialization and of similar market potential taking into account its safety and efficacy, its cost to
develop, the competitiveness of alternative products, its patent and other proprietary position, the likelihood of regulatory approval and product reimbursement, its profitability and all other relevant commercial factors. For clarity, in respect of
Ambit, Commercially Reasonable Efforts shall include the proper and reasonable management of its finances to ensure the adequate performance of the Collaboration and its obligations under Article IV in accordance with the terms of this Agreement.

 1.26 “Confidential Information” as to each Party, shall mean such Party’s confidential information, trade secrets,
Patents and Know-how, all the data and materials of that Party relating to the Collaboration, the Ambit Targets, Cephalon Targets, Collaboration Targets, Ambit Compounds, Cephalon Compounds, Collaboration
Compounds, Licensed Compounds, Cephalon Library Compounds, Collaboration Products and Licensed Products, and including, without limitation, all research, technical, clinical development, manufacturing, marketing, financial, personnel, and other
business information and plans of such Party, in each case that (a) if disclosed in written form, is marked by such Party as “confidential” or “proprietary,” (b) if disclosed in
non-written form, is indicated as confidential or proprietary at the time of disclosure and reduced in writing in reasonable detail, marked as “confidential” or “proprietary” and delivered
to the receiving Party within thirty (30) days after disclosure or (c) notwithstanding clauses (a) and (b) above, is known or reasonably should be known by the receiving Party to be the confidential information of the disclosing
Party. 
 1.27 “Controls” or “Controlled” shall mean possession of the ability to grant licenses or
sublicenses pursuant to this Agreement without violating the terms of any agreement or other arrangement with, or the rights of, any Third Party and without the requirement of additional or increased payments to the Third Party. 

1.28 “Derivative Compound” shall mean, with respect to a Cephalon Library Compound, a compound that was derived by or on
behalf of Ambit from such Cephalon Library Compound (whether from the Cephalon Library Compound or from a predecessor compound 

  
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that is derived from a Cephalon Library Compound), or derived or synthesized by or on behalf of Ambit from Cephalon’s Confidential Information covering the structure or identity of the
Cephalon Library Compound. 
 1.29 “Executive Officers” shall mean the Chief Executive Officer of Ambit, the Executive Vice
President of Research and Development of Cephalon, and/or such other executive officer of a Party as may be substituted from time to time upon the giving of written notice to the other Party. 

1.30 “Fair Market Value” shall mean the cash consideration, which a willing seller would realize from an unrelated willing
buyer in an arm’s length sale of an identical item sold in the same quantity and at the same time and place of the transaction. 
 1.31
“FDA” shall mean the U.S. Food and Drug Administration, any successor thereto, or any corresponding foreign registration or regulatory authority. 

1.32 “Field” shall mean research and development relating to, and the treatment of, any and all oncological diseases. 

1.33 “First Collaboration Target” shall mean the BRaF kinase and all mutations thereof. 

1.34 “First Commercial Sale” shall mean, with respect -to a Collaboration Product or
Licensed Product, as applicable, in any country, the first sale for use or consumption by the general public of such Collaboration Product or Licensed Product, as applicable, in such country after all Regulatory Approvals have been obtained in such
country. 
 1.35 “IND” shall mean an Investigational New Drug Application, as defined in the U.S. Food, Drug and Cosmetic
Act and the regulations promulgated thereunder for initiating clinical trials in the United States, or any corresponding foreign application, registration or certification. 

1.36 “Initial Term” shall mean the period commencing on the Effective Date and ending three (3) years thereafter. 

1.37 “Joint Research Committee” or “JRC” shall mean the entity organized to manage the scientific
implementation of the Collaboration and acting pursuant to Article III. 
 1.38 “KinomeScan Panel” means the panel
containing all kinase binding assays made commercially available by Ambit at the time of performance that uses Ambit’s proprietary high-throughput assay system known as KinomeScan for determining the
kinase binding activity of compounds against a panel of human phage-displayed protein kinases and their variants. 

1.39 “Licensed Compound” shall mean an Option Compound (as defined in Section 4.4.1 herein) as to which Ambit exercises
its Option, and up to [***] associated 

  
  

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Derivative Compounds that fulfill the same development candidate criteria established by Ambit for the Option Compound (even if such Derivative Compounds are not selected by Ambit for
commercialization) (such [***] associated Derivative Compounds, the “Backup Compounds”), provided that a Backup
Compound shall be deemed a Licensed Compound only if (a) Ambit has provided written notice to Cephalon designating such Backup Compound as a Licensed Compound and (b) the Backup Compound otherwise meets all of the applicable requirements
set forth in Article IV. 
 1.40 “Licensed Compound IP” shall mean the Licensed Compound
Know-how and Licensed Compound Patents. 
 1.41 “Licensed Compound Know-how” shall mean all proprietary ideas, inventions, data, know-how, instructions, processes, formulas, materials, expert opinion, technology or other information
(including, without limitation, (a) biological, chemical, physical and analytical data and information, and (b) any structure-function data), in each case which is discovered, developed, conceived or
reduced to practice during the Term in connection with the research and development activities conducted in connection with Article IV, including with respect to Licensed Compounds and Derivative Compounds, by employees or agents of Ambit or any of
its Affiliates, either alone or jointly; provided, however, that Licensed Compound Know-how shall not include Licensed Compound Patents, Collaboration IP, Ambit IP or Cephalon IP. 

1.42 “Licensed Compound Patents” shall mean (a) all Patents conceived or reduced to practice during the Term by
employees or agents of Ambit or any of its respective Affiliates, either alone or jointly, that are related to any Licensed Compound or Derivative Compound (including, without limitation, the synthesis and composition of matter of any such compound
or Licensed Products, or method of use thereof) or otherwise result from Ambit’s research and development activities conducted in connection with Article IV, including with respect to Licensed Compounds and Derivative Compounds; and
(b) any divisions, continuations, continuations-in-part, reissues, reexaminations, extensions or other governmental actions which extend any of the subject matter
of the patent applications or patents in (a) above, and any substitutions, confirmations, registrations, revalidations, or additions of any of the foregoing. For the avoidance of doubt, Licensed Compound Patents shall not include Collaboration
Patents. 
 1.43 “Licensed Products” shall mean any pharmaceutical product in any form or formulation that contains a
Licensed Compound that is developed by Ambit, or its permitted Sublicensees or Affiliates, pursuant to Article IV. 
 1.44 “Mutant
Form Candidate” shall mean a Collaboration Clinical Candidate that is directed against a mutated form of the BRaF kinase, other than the V600E form of the BRaF kinase. 

1.45 “NDA” shall mean a New Drug Application, as defined in the U.S. Food, Drug and Cosmetic Act and the regulations
promulgated thereunder, or any corresponding foreign application, registration or certification. 

  
  

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 1.46 “Net Revenue” shall mean the gross amount of all consideration (whether as
an up-front payment, royalties or otherwise) received by Ambit or its Affiliates, directly or indirectly, from a Third Party for or on account of any sublicenses or other rights granted by Ambit to such Third
Party with respect to a Licensed Product, including any investments made by such Third Party in Ambit or an Affiliate, without deduction of any kind, but excluding the following: 

(a) payments made by distributors appointed by Ambit to distribute the Licensed Product in respect of amounts invoiced by Ambit to such
distributors for the sale by Ambit of such Licensed Product to such distributors to the extent that Ambit pays royalties to Cephalon for Net Sales of such Licensed Product pursuant to Section 4.11(a); 

(b) payments received by Ambit or an Affiliate for performance of research and development by either Ambit or such Affiliate to the extent
that such payments cover the actual cost of the research and, development work; 
 (c) payments made to either Ambit or an Affiliate to the
extent they cover the actual costs of conducting clinical testing and other activities, in connection with obtaining regulatory approval for a product; and 

(d) reimbursed expenses of either Ambit or an Affiliate. 

The monetary value of any investment made by a Third Party in Ambit or an Affiliate shall be equal to the current market value of the investment, which shall
be determined as of the earlier of the date when the investment is made or the day prior to the date when the investment is first publicly disclosed on the Dow Jones New Wire (the “Determination Date”). If there is no public market
for the securities of Ambit or an Affiliate, then the current market value shall be determined by Ambit’s or the Affiliate’s board of directors in good faith, and if Cephalon disputes such determination, the current market value shall be
determined by an independent banker designated by the Parties whose fees shall be shared by the Parties. If there is a public market for Ambit’s or an Affiliate’s securities, then the
current market value shall be determined using the average of the closing bid and asked prices of the securities in the Over-The-Counter Market Summary or the closing
price quoted on any exchange on which the securities are listed as published in The Wall Street Journal for the ten (10) trading days prior to; the Determination Date. Notwithstanding the foregoing, if the Third Party is acquiring Ambit’s
or an Affiliate’s securities in connection with an initial public offering of Ambit or the Affiliate, the current market value shall be determined using the offering price of such securities to the public in the initial public offering. 

With respect to any other non-monetary consideration received by Ambit or an Affiliate, a commercially reasonable
valuation method shall be applied to determine the monetary value of such consideration. 
 1.47 “Net Sales” shall mean the
gross amount invoiced and any other amounts or rebates received by a Party, its Affiliates or Sublicensees for the worldwide sale of Collaboration Products or Licensed Products, as applicable, to bona fide independent Third Parties less, to the
extent paid, allowed or given: 

  
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 (a) outer packing, freight, postage, shipment or transportation charges and insurance costs
relating thereto, 
 (b) sales, value added and excise taxes or customs duties, tariffs or surcharges paid by the selling Party, and any
other governmental charges (excluding income taxes) incurred in connection with the sale or exportation of the Collaboration Products or Licensed Products, as applicable, 

(c) reasonable distributors’ fees, amounts repaid or credited, rebates (including, without limitation,
government-mandated rebates such as Medicaid charge backs or rebates) or allowances (including, without limitation, cash, credit or free goods allowances), actually granted, allowed or incurred, 

(d) trade and prompt payment discounts, quantity discounts, cash discounts or reasonable charge-backs
actually granted, allowed or incurred in the ordinary course of business in connection with the sale of the Collaboration Products or Licensed Products, as applicable, and 

(e) reasonable allowances, refunds or credits to customers, not in excess of the selling price of the Collaboration Products or Licensed
Products, as applicable, on account of rejection, damage, spoilage, outdating, recalls or return of, or price adjustments or billing errors regarding the Collaboration Products or Licensed Products, as applicable. 

A “sale” shall include any transfer or other disposition for consideration of a Collaboration Product or Licensed Product, as
applicable, and Net Sales shall include the Fair Market Value of all other consideration received by a Party, its Affiliates or its Sublicensees from the sale or distribution of a Collaboration Product or Licensed Product, as applicable, whether
such consideration is in cash, payment in kind, exchange or another form. In the event that a Collaboration Product or Licensed Product, as applicable, is packaged with other products of a Party, any discount applied to such Collaboration Product or
Licensed Product, as applicable, to determine Net Sales shall be no greater than the average discount of the entire package. 
 The disposal
or sale of a Collaboration Product or Licensed Product, as applicable, by a Party, its Affiliates or Sublicensees (i) solely for the research or clinical testing of such Collaboration Product or Licensed Product, as applicable, or (ii) for
indigent, charitable or similar public support or compassionate use programs or (iii) as free samples shall not be deemed to give rise to a sale under this Agreement and shall be excluded from the computation of Net Sales. All sales of
Collaboration Products or Licensed Products, as applicable between a Party and its Affiliates or its Sublicensees shall be disregarded for purposes of computing Net Sales, unless such a purchaser is the
end-user of such Collaboration Product or Licensed Product, as applicable. 
 To calculate the value
of Net Sales of Combination Products, the gross sales of such Combination Products will be multiplied by the fraction A/(A + B) where A is the Fair Market Value of the Collaboration Compound or Licensed Compound, as applicable, when sold separately,
and B is the Fair Market Value of the other active ingredient when sold separately. 

  
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Allowed deductions may then be subtracted, prorated based on the proportion of gross sales attributable to the Collaboration Compound or Licensed Compound, as applicable, to compute Net Sales.

 1.48 “Non-Exclusive Compound” shall mean any compound brought to the
Collaboration by either Party which is non-proprietary to both Parties at or after the Effective Date. 

1.49 “Party” shall mean Ambit or Cephalon. Ambit and Cephalon shall be collectively referred to as the Parties. 

1.50 “Patent” shall mean: (i) issued and unexpired letters patent, including any extension, registration, confirmation,
reissue, continuation, supplementary protection certificate, divisional, continuation-in-part, re-examination or renewal thereof,
(ii) pending applications for letters patent, including provisional applications, and (iii) foreign counterparts of any of the foregoing; in each case to the extent the same has not been held, by a court, administrative body or
governmental agency of competent jurisdiction, to be invalid or unenforceable in a decision from which no appeal can be taken or from which no appeal was taken within the time permitted for appeal. 

1.51 “Patent Committee” shall mean the committee that may be formed pursuant to Section 3.5. 

1.52 “Person” shall mean any natural person, corporation, firm, business trust, joint venture, association, organization,
company, partnership or other business entity, or any government or agency or political subdivision thereof. 
 1.53 “Phase
I,” “Phase II” and “Phase III” shall mean Phase I (or ‘Phase I/II), Phase II (or Phase II/III) and Phase III clinical trials, respectively, in each case as prescribed by applicable FDA IND Regulations,
or any corresponding foreign statutes, rules or regulations. 
 1.54 “Regulatory Agency” shall mean the FDA or the
applicable department, bureau or other governmental regulatory authority in each country in the Territory involved in the granting of Regulatory Approvals: 

1.55 “Regulatory Approval” shall mean any and all approvals (including price reimbursement approvals), licenses,
registrations, or authorizations of any Regulatory Agency, necessary for the manufacture, use, storage, import, export, transport or sale of a Collaboration Product. 

1.56 “Relevant Third Party Patent Right” shall mean a Patent owned or controlled by a Third Party which claims the
composition of matter of a Collaboration Compound, the process of manufacture of that Collaboration Compound, use of the Collaboration Product for the treatment of a therapeutic indication or the use of a Collaboration Product against a
Collaboration Target where such Collaboration Compound (in each case) is being used as an active ingredient in a Collaboration Product. 

  
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 1.57 “Research Plan” shall mean, on a Collaboration Target-by-Collaboration Target basis, a description of the Parties’ respective activities and objectives with respect to a Collaboration Target. Minutes of JRC meetings,
if signed by a JRC representative of each Party, shall be deemed included within the Research Plan. 
 1.58 “Second Collaboration
Target” shall mean the Target selected by the JRC pursuant to Section 2.4. 
 1.59 “Significant Activity”
shall mean any of the following in relation to a Collaboration Compound, Collaboration Product, Licensed Compound or Licensed Product: 

(a) [***]; 

(b) [***]; 
 (c) [***]; 

(d) [***]; 
 (e) [***]; 

(f) [***]; 
 (g) [***]; and 

(h) [***]. 
 Notwithstanding the
foregoing, any activities set forth in (a) though (h) above, that normally would be related to an earlier phase of development and/or commercialization, shall not be considered Significant Activity once development of the applicable
Collaboration Compound, Collaboration Product, Licensed Compound or Licensed Product has progressed beyond such earlier phase for a particular indication, as evidenced by the performance of any activity that normally would be considered to be
related to any later phase for such indication, provided always that to the extent that a Party can reasonably demonstrate that activities relating to an earlier phase of development are reasonably necessary, then such activities shall be considered
Significant Activity. 
 1.60 “Sublicensee” shall mean, as to each Party, a Person other than an Affiliate of the Party, to
whom has been granted sublicense rights under the license granted to such Party hereunder, which rights include at least the right to sell a Collaboration Product or Licensed Product. As used in this Agreement, “Sublicensee” shall also
include a Third Party to whom a Party has granted a sublicense under this Agreement to distribute a Collaboration Product or Licensed. Product, provided that such Third Party has the primary responsibility for marketing and promotion, at its
expense, of such Collaboration Product or Licensed Product within countries in the Territory for which such distribution rights are granted, which marketing and 

  
  

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promotional activities are not subsidized directly or indirectly by that Party, such as, without limitation, through a specific allowance or a guaranteed selling margin for such Third Party meant
to cover its expenses. Third Parties that are permitted to manufacture or finish Collaboration Products or Licensed Products for supply to a Party, its Affiliates or Sublicensees are not “Sublicensees.” For avoidance of doubt, a
“Sublicensee” shall not include any subcontractor permitted under Section 18.15. 
 1.61 “Substantial Generic
Competition” shall have the meaning set forth in Section 9.4(c). 
 1.62 “Target” shall mean a human protein
kinase (including its nucleic acid sequence, molecular structure, and its enzymatic properties and binding properties). 
 1.63
“Territory” shall mean all the countries of the world. 
 1.64 “Third Party” shall mean any Person other
than Ambit, Cephalon, or their respective Affiliates. 
 1.65 “Valid Claim” shall mean a claim of an issued patent which
has not lapsed or become abandoned, been held permanently revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction; unappealable or un-appealed within
the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise. 
 The following
defined terms have the meanings specified in referenced Section: 
  

			
	 Term
	  	 Section

	“Adverse Financial Event”	  	17.2.1(b)
	“AFE Determination Date”	  	17.2.1(b)
	“Agreement”	  	Preamble
	“Ambit”	  	Preamble
	“Ambit Hit”	  	4.3.1
	“Ambit Indemnitees”	  	15.3
	“Ambit Losses”	  	15.3
	“Ambit Stock”	  	17.2.1
	“Backup Compounds”	  	1.38
	“Cephalon”	  	Preamble
	“Cephalon Analogue Compounds”	  	4.3.2
	“Cephalon Indemnitees”	  	15.2
	“Cephalon License Notices’	  	4.7.2
	“Cephalon Losses”	  	15.2
	“Claims”	  	15.4
	“Collaboration”	  	Recitals
	“Commercializing Party”	  	11.4
	“Decision Notice”	  	4.2

  
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	 “Determination Date”
		1.46
	 “Disclosing Party”
		12.1.1
	 “Discontinuance Notice”
		11.2.6
	 “Effective Date”
		Preamble
	 “Exclusivity Period”
		5.1
	 “Negotiation Period”
		4.7.2
	 “Nominated Targets”
		4.2
	 “Nomination Notice”
		42
	 “Notice”
		4.7.3
	 “Option”
		4.4.1
	 “Option Compound”
		4.4.1
	 “Option License”
		4.4.1
	 “Patent Owner”
		11.3.2
	 “Profiling Services Agreement”
		Recitals
	 “Receiving Party”
		12.1.1
	 “RFN Negotiation Period”
		4.7.3(a)
	 “Right of First Negotiation”
		4.7.3
	 “Share Price”
		17.2.2
	 “Sole Discretion Rejection”
		4.2
	 “Term”
		16.1
	 “Third Nomination Period”
		4.2
	 “Third Party Agreement”
		4.7.5

 (a) Rules of Construction. (a) Each of the Parties acknowledges and agrees that this Agreement has
been diligently reviewed by and negotiated by and between them, that in such negotiations each of them has been represented by competent counsel and that the final agreement contained herein, including the language whereby it has been expressed,
represents the joint efforts of the Parties hereto and their counsel. Accordingly, in the event an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any Party by virtue of the Authorship of any provisions of this Agreement. 
 (b) The
definitions of the terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine arid neuter forms. The words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word
“shall.” The ‘word “any” shall mean “any and all” unless otherwise clearly indicated by context. “$” as used in this Agreement means the lawful currency of the United States. Where either Party’s
consent is required hereunder, except as otherwise specified herein, such Party’s consent may be granted or withheld in such Party’s sole discretion. 

(c) Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or

  
 12 

 
modifications set forth herein or therein), (ii) any reference to any laws herein shall be construed as referring to such laws as from time to time enacted, repealed or amended,
(iii) any reference herein to any person shall be construed to include the person’s successors and assigns, (iv) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof, and (v) all references herein to Articles, Sections or Appendices, unless otherwise specifically provided, shall be construed to refer to Articles,
Sections and Appendices of this Agreement. 
 (d) References to sections of the Code of Federal Regulations and to the United States Code
shall mean the cited sections, as these may be amended from time to time. 
 ARTICLE II. 

PERFORMANCE OF THE COLLABORATION AGREEMENT 

2.1 Goals of the Collaboration. 

2.1.1 General. Each Party shall: 

(i) undertake an interactive, cooperative role in the Collaboration with the other Party as set forth in the applicable Research Plan, and such
Other activities which, from time to time, the JRC decides are necessary for the continuing success of the Collaboration, with the objective of identifying Collaboration Clinical Candidates with respect to the Collaboration Targets; 

(ii) use Commercially Reasonable Efforts to properly and diligently perform its activities pursuant to the applicable Research Plan,
including, without limitation, by allocating personnel consistent with each applicable Research Plan project with sufficient skills and experience together with sufficient equipment and facilities, to carry out such Party’s obligations under
this Agreement and to accomplish the objectives of the Collaboration; and 
 (iii) conduct the Collaboration in good scientific manner, and
in compliance in all material respects with all requirements of applicable laws, rules and regulations, and all other requirements of any good laboratory practices to attempt to achieve its objectives efficiently and expeditiously. 

2.2 Activities of Ambit. During the Collaboration Term: 

2.2.1 Ambit will dedicate to the Collaboration such reasonable resources as specified by the JRC in the Research Plan to perform screening and
counterscreening against the KinomeScan panel and follow-up Kd determination against individual kinases, cell-based assays, DMPK, cell pharmacology and medicinal
chemistry with respect to Collaboration Targets and Collaboration Compounds. 
 2.2.2 Ambit further shall provide to the Collaboration Ambit
Compounds having demonstrated activity against the Collaboration Targets as defined in the applicable Research Plan in order to support the Collaboration with respect to such Collaboration Targets. 

  
 13 

 2.2.3 Ambit shall provide Cephalon with all feedback in a timely manner on the progress of its
efforts under the Collaboration necessary to enable Cephalon to provide Ambit the support that it requires to conduct its activities hereunder. 

2.2.4 Within thirty (30) days of the Effective Date, Ambit shall disclose and make available to Cephalon all compounds (including
profiling information and chemical structure) currently under research and development by Ambit with respect to the First Collaboration Target. 

2.2.5 Ambit promptly shall disclose and make available to Cephalon all Collaboration IP conceived, generated or developed by or on behalf of
Ambit under the Collaboration and all Ambit IP to enable Cephalon to conduct its development and commercialization activities under this Agreement. 

2.2.6 Significant Activity of Ambit under Article IV. If at any time during the course of the development of a Licensed Compound, as
discussed in Article IV, there has been no Significant Activity by Ambit in relation to such Licensed Compound for a period of [***], then: 

(a) Cephalon shall have the right to give written notice to Ambit requesting written justification for such lack of Significant Activity, in
the form of detailed reasons why there has been no Significant Activity, and Ambit shall provide such written justification to Cephalon within [***] of the date of Cephalon’s request and shall recommence such Significant Activity within [***]
of the date of Cephalon’s request; or 
 (b) if Ambit fails to provide such justification to Cephalon or if there has still been no
Significant Activity taken by Ambit within [***] of the date of Cephalon’s request, then, on notice by Cephalon to Ambit (to be given in Cephalon’s sole discretion), Ambit shall be deemed to have been given notice to terminate the
development and commercialization of the Licensed Compound (including all associated Backup Compounds) and any license rights to such Licensed Compound granted by Cephalon to Ambit shall revert back to Cephalon. 

For purposes of Article IV, Ambit shall be deemed to be engaging in Significant Activity with respect to a Licensed Compound if it is engaging Significant
Activity with respect to any one (1) of the Option Compound or its Backup Compounds. 
 2.3 Activities of Cephalon. 

2.3.1 During the Collaboration Term, as determined by the JRC in the Research Plan, Cephalon shall provide reasonable resources to perform
necessary in vivo biology (xenograft and other models) and drug development qualifying activities prior to designation of the Collaboration Clinical Candidate (during lead optimization). 

2.3.2 With respect to the Second Collaboration Target, upon agreement of the JRC, Cephalon shall provide to the Collaboration Cephalon
Compounds having demonstrated 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

14 

 
activity against the Second Collaboration with as defined in the applicable Research Plan in order to support the Collaboration with
respect to the Second Collaboration Target. 
 2.3.3 Cephalon promptly shall disclose and make available to Ambit all Collaboration IP
conceived, generated or developed by or on behalf of Cephalon under the Collaboration that may be necessary or useful for Ambit to conduct its obligations under the Collaboration pursuant to the applicable Research Plan. 

2.3.4 Significant Activity of Cephalon under Article III and Article VIII. If at any time during the course of the clinical development
and commercialization of a Collaboration Clinical Candidate there has been no Significant Activity by Cephalon in relation to such Collaboration Clinical Candidate for a period of [***], then:

 (a) Ambit shall have the right to give written notice to Cephalon requesting written justification for such lack of Significant Activity,
in the form of detailed reasons why there has been no Significant Activity, and Cephalon shall provide such written justification to Ambit within [***] of the date of Ambit’s request and shall recommence such Significant Activity within [***]
of the date of Ambit’s request; or 
 (b) if Cephalon fails to provide such justification to Ambit or if there has still been no
Significant Activity taken by Cephalon within [***] of the date of Ambit’s request, then, on notice by Ambit to Cephalon (to be given in Ambit’s sole discretion), Cephalon shall be deemed to have been given notice to terminate the
development and commercialization of the Collaboration Compound or Collaboration Clinical Candidate in relation to which such Significant Activity has not occurred and any license rights to such Collaboration Compound or Collaboration Clinical
Candidate granted by Ambit to Cephalon shall revert back to Ambit. 
 2.4 Selection of Collaboration Targets. At the first JRC
meeting the JRC will approve a Research Plan for the First Collaboration Target, including the particular assays and the associated reagents that will be used to test for the specified modes of modulating the First Collaboration Target. No later
than nine (9) months from the Effective Date or as otherwise agreed to in writing by the Parties, each Party shall submit a proposal for a Target to be designated as the Second Collaboration Target, along with a draft Research Plan applicable
to such proposed Second Collaboration Target, as the basis of a research program within the Collaboration via the JRC. The JRC shall discuss. each of the proposals and shall determine whether any of the proposed Targets shall be designated as the
Second Collaboration Target, provided that either Party may, via the JRC, decline to accept any such proposed Target as the Second Collaboration Target if, at the time the other Party proposes the Target, (i) the declining Party has
existing contractual commitments to a Third Party related to the proposed Target that would prevent it from collaborating with the other Party on such Target, or (ii) the declining Party can document the existence of an active internal research
program related to such Target that existed prior to the other Party’s proposal of the Target. If a proposed Target is declined pursuant to the foregoing, it shall not be subject to the provisions of Section 3.4. 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

15 

 2.5 Records and Reports. Each Party shall maintain records in sufficient detail and in
good scientific manner appropriate for patent and FDA purposes and so as to properly reflect all work done and results achieved in the performance of this Agreement (including all data in the form required under any applicable governmental
regulations and as directed by the JRC). In addition, each Party shall keep or cause to be kept written laboratory -notebooks, marketing and commercialization records,
pre-clinical records (including CMC, toxicology, ADME, pharmacology, and other), regulatory filings and other records and reports of the progress of its activities in the Collaboration and, with respect to
Ambit, also under Article IV, in sufficient detail and in good scientific manner for all other purposes, reflecting all work done on a program and the results achieved thereunder by such Party. Such records shall be maintained throughout the
Collaboration Term and for as long as required by applicable laws, rules and regulations. Such records shall include applicable books, records, reports, research notes, charts, graphs, comments, computations, analyses, recordings, photographs,
computer programs and documentation thereof, samples of materials and other graphic or written data generated in connection with the Collaboration and Ambit’s activities under Article IV, including any data required to be maintained pursuant to
applicable governmental regulations. During the Term, each Party shall respond to reasonable requests from the other for information based on such records. 

ARTICLE III. 
 GOVERNANCE OF THE
COLLABORATION 
 3.1 Joint Research Committee. Within thirty (30) days after the Effective Date, Cephalon and Ambit shall
establish a Joint Research Committee, comprised of Ambit and Cephalon scientists, to manage the scientific implementation of the Collaboration. The responsibilities of the JRC shall include: (a) monitoring and reporting the progress of the
Collaboration and ensuring open and frequent exchange between the Parties; (b) establishing criteria for the selection of Collaboration Compounds for each Collaboration Target; (c) identifying and resolving any scientific or technical;
conflicts between the Parties; (d) approving, modifying and Overseeing the implementation of a Research Plan for each Collaboration Target and its associated program undertaken in the Collaboration; (e) coordinating with the Patent
Committee all patent activities as they relate to the results of the Collaboration, and in keeping with the overall patent strategy delineated by the Patent Committee; and (f) taking such action that is contemplated for the JRC to take pursuant
to Article IV. 
 3.2 Membership. The JRC shall include three (3) named representatives of each of the Parties, and each
Party’s representatives shall be selected by that Party and identified by written notice to, the other Party. Each Party may replace its representatives at any time, upon written notice to the other Party. From time to time, the JRC may
establish subcommittees, to oversee particular projects or activities, and to manage the more frequent interactions between the Parties’ scientists with respect to individual research projects. Such subcommittees will be constituted as the JRC
determines, in its sole discretion. 
 3.3 Meetings and Minutes. During the Collaboration Term, unless, otherwise :agreed to by the
Parties, the JRC shall meet at least quarterly, or, more frequently as agreed by the Parties, at such locations or by such teleconferencing means as the Parties may determine from 

  
 16 

 
time to time. In addition to regularly scheduled meetings, the JRC representatives will communicate regularly by telephone, electronic mail, facsimile and/or videoconference. Other
representatives of Ambit or Cephalon may attend JRC meetings as nonvoting observers. Each Party shall be responsible for all of its expenses associated with attending the JRC meetings. The Parties shall alternate preparing agendas for each JRC
meeting and written minutes of each JRC meeting and shall prepare a written record of all JRC voting and decisions, whether made at a JRC meeting or otherwise. A copy of the Research Plan for each Collaboration Target shall be signed and appended to
the minutes of the JRC meeting at which such Research Plan is approved. The written minutes of each JRC meeting and the written record of all JRC voting and decisions shall be written and disseminated to the JRC members for review within ten
(10) business days of the JRC meeting, and upon signature by Ambit and Cephalon, shall become final. 
 3.4 Decision-Making. Decisions of the JRC shall be made by unanimous vote, and each Party shall have a single vote. In the event that, with respect to any decision for which the JRC is empowered to make a decision,
a unanimous vote is not obtained, the decision shall be referred to the Executive Officers, who shall promptly meet and endeavor to reach consensus in a timely manner. On and after the time a Collaboration Clinical Candidate is designated, if such
individuals cannot resolve such dispute with respect to such Collaboration Clinical Candidate, then such dispute shall be decided by Cephalon at its sole discretion. 

3.5 Patent Committee. Upon recommendation of the JRC, the Parties shall form a patent committee (the “Patent
Committee”) to be in existence as long as Patents within the Collaboration IP are being filed and/or prosecuted. Each Party shall designate at least one (1) chemist and one (1) patent attorney or equally qualified legally trained
personnel, as its representatives on the Patent Committee. The Patent Committee shall be responsible for recommending patent filings and coordinating patent-related matters and such other matters as are
delegated to it by the JRC. Such meetings shall be held at mutually agreed times and locations. It is recognized and understood that the Patent Committee will communicate, as necessary, whether in writing, by telephone, in person or otherwise, to
ensure compliance with relevant patent filing and prosecution timetables and deadlines. Each Party shall bear its own expenses associated with such meetings and the activities of the Patent Committee; provided, however, that each Party
shall bear the expense of providing the other Party with copies of all Patents filed pursuant to this Agreement including all substantive correspondence with U.S. and foreign patent offices. If the JRC does not form a Patent Committee, all
references herein to a “Patent Committee” shall refer instead to the JRC, and the JRC shall decide all patent-related matters in consultation with a patent attorney. 

3.6 Clinical Development Updates. Cephalon shall deliver to Ambit written quarterly clinical updates with respect to the status of the
clinical development of the Collaboration Clinical Candidate. 
 ARTICLE IV. 

AMBIT SELECTED COMPOUNDS 
 4.1
Cephalon Library. Within sixty (60) days of the Effective Date, Cephalon will commence the delivery of its Cephalon Compound Library on a schedule to be mutually agreed 

  
 17 

 
to by the Parties. Cephalon shall use its reasonable efforts to complete such delivery within ninety (90) days of the Effective Date. 

4.2 Ambit Nominated Targets. Within ninety (90) days of each of the nine (9) month,
twenty-one (21) month and thirty (30) month anniversaries of the Effective Date (each as “Nomination Period”), Ambit shall have the right to nominate up to two (2) Targets (the
“Nominated Targets”) to be designated as replacements for up to two: (2) of the then-current Ambit Targets. Ambit shall specify such Nominated Targets in a written notice (the
“Nomination Notice”) delivered to Cephalon within the applicable Nomination Period, which Nomination Notice also shall specify the then-current Ambit Targets that Ambit proposes to replace
with the Nominated Targets. Cephalon shall consider such Nominated Targets and within fifteen (15) days of the receipt of the Nomination Notice shall deliver to Ambit a written decision (the “Decision Notice”) indicating
whether or not Cephalon agrees to designate the Nominated Targets as Ambit Targets. Cephalon may reject any Nominated Target if Cephalon can document the existence of an active or scheduled internal research program or Third Party obligations
related to such Nominated Target. In any Nomination Period, Cephalon may also reject up to two (2) Nominated Targets in its sole discretion (each, a “Sole Discretion Rejection”); provided, that if Cephalon has previously
rejected two (2) Nominated Targets in a Nomination Period; Cephalon may only reject any subsequent Nominated Targets in such Nomination Period if Cephalon can document the existence of an active or scheduled internal research program or Third
Party obligation related to such Nominated Target; and provided further, that with respect to the Nomination Period following the thirty (30) month anniversary of the Effective Date (the “Third Nomination Period”), if Cephalon
has used four (4) Sole Discretion Rejections prior to the Third Nomination Period, then Cephalon may reject a Nominated Target in the Third Nomination Period only if Cephalon can document the existence of any active or scheduled internal
research program or Third Party obligation related to the applicable Nominated Target. Upon agreement by the Parties on a Nominated Target, such Nominated Target shall be deemed an Ambit Target as of the date of such agreement, and the corresponding
Ambit Target designated in the Nomination Notice to be replaced shall no longer be deemed an Ambit Target as of the date of such agreement. Schedule A shall be updated consistent with the foregoing. For clarification, no more than six
(6) Targets shall be concurrently classified as Ambit Targets during the Initial Term. If Cephalon shall not have given a Decision Notice within the allotted time period specified above, it shall be deemed that Cephalon does not agree to
include the Nominated Target as an Ambit Target. 
 4.3 Ambit Profiling. 

4.3.1 Ambit shall profile the Cephalon Library Compounds against the KinomeScan Panel consistent with the Profiling Services Agreement as
further described in Attachment A. Such screening shall be performed solely on Ambit’s own behalf and in furtherance of the provisions of this Article IV. Within three (3) to six (6) months of receipt of all of the Cephalon Library
Compounds, Ambit shall provide Cephalon with all profiling data from the primary screening related to each Cephalon Library Compound. Ambit may request that Cephalon provide it with information relating to the chemical structure of any Cephalon
Library Compound that demonstrates binding affinity of less than two hundred and fifty (250) nM against one (1) or more Ambit Targets (an “Ambit Hit”), which request Cephalon may deny in its sole discretion.
Notwithstanding the above, if fewer than three (3) Ambit Hits against an 

  
 18 

 
Ambit Target have a binding affinity of less than two hundred and fifty (250) nM, then Ambit may request that Cephalon provide it with information relating to the chemical structure of any
Cephalon Library Compounds having binding affinities of less than five hundred (500) nM against such Ambit Target (such Cephalon Library Compounds also shall be considered “Ambit Hits”), which request Cephalon may deny in its sole
discretion. If, after expanding the binding affinity standard as set forth in the prior sentence, (i) there are fewer than three (3) Ambit Hits for any particular Ambit Target or (ii) Cephalon rejects Ambit’s request for chemical
structures for Ambit Hits such that there are fewer than three (3) Ambit Hits for any particular Ambit Target for which Cephalon has provided the chemical structures, then Ambit may request to replace such Ambit Target by providing Cephalon
with written notice thereof, provided that Cephalon may reject such request for a replacement Ambit Target only if Cephalon can document the existence of an active or scheduled internal research program or Third Party obligation related to
such replacement Ambit Target. Cephalon shall consider such replacement Ambit Target and within fifteen (15) days of the receipt of the written notice from Ambit with respect to such replacement Ambit Target shall deliver to Ambit a written
decision indicating whether or not Cephalon agrees to designate the replacement Ambit Target as an Ambit Target. 
 4.3.2 In addition, for
each Ambit Hit, Ambit may request to receive for profiling additional Cephalon Compounds that have the chemical structures most similar with the Ambit Hit, as determined in good faith by Cephalon (a “Cephalon Analogue Compound”),
which request Cephalon may deny if Cephalon can document the existence of an active or scheduled internal research program or Third Party obligations related to such Cephalon Library Compound and/or any related Cephalon Analogue Compound. If
Cephalon cannot provide sufficient Cephalon Analogue Compounds to Ambit as determined by the JRC, then Ambit may request to replace the applicable Ambit Target in the manner set forth in the last two sentences of Section 4.3.1. Ambit shall
utilize such information and Cephalon Analogue Compounds solely for the purpose of performing more comprehensive analysis to define a subset of Cephalon Library Compounds and Cephalon Analogue Compounds that show the most promising activity against
the Ambit Targets. 
 4.3.3 In connection with its activities under this Section 4.3, Ambit is granted a limited, non-exclusive, non-transferable, non-sublicenseable (except as permitted by Section 18.15) license under the Cephalon IP and
Cephalon’s share of the Licensed Compound IP during the Collaboration Term to optimize solely for its own research and development purposes Cephalon Library Compounds having the requisite level of binding affinity set forth in
Section 4.3.1 and, for purposes of Section 4.4, to create associated Derivative Compounds having the ability to appropriately inhibit, stimulate or otherwise modulate the production or activity of the same Ambit Target as the Cephalon
Library Compound. 
 4.3.4 Cephalon shall own all right and title to any profiling data generated by Ambit in connection with the screening
of the Cephalon Library Compounds, and Cephalon hereby grants to Ambit a limited, non-exclusive, nontransferable, non-sublicenseable research license during the
Collaboration Term to use such data for the purposes contemplated by this Article IV. Ambit hereby grants to Cephalon a non-exclusive, worldwide, perpetual, irrevocable
fully-paid up, royalty-free, sublicenseable and transferable license to any Ambit IP that is necessary for and only for the purposes of Cephalon copying, distributing,
making derivative works of, using and otherwise exploiting such data. 

  
 19 

 4.4 Ambit Option. 

4.4.1 If profiling by Ambit of a Cephalon Library Compound or Derivative Compound demonstrates that a significant mechanism, of action of the
Cephalon Library Compound or Derivative Compound is modulation of an Ambit Target, as determined by the JRC, then Ambit shall be entitled to. and at Ambit’s sole election upon written notice to Cephalon Ambit will receive an exclusive option
(the “Option”) from Cephalon for such Cephalon Library Compound or Derivative Compound (the “Option Compound”), as the case may be. Such written notice from Ambit shall specify the Option Compound to be covered by
the Option along with reasonable supporting research and analysis demonstrating the requisite level of action of the Option Compound against the Ambit Target. Ambit shall be entitled to receive an Option for an Option Compound if it provides the
written notice described above no later than the latter of (i) six (6) months after completion of the initial screening of the applicable Option Compound against the applicable Ambit Target(s) as demonstrated by Ambit’s records or
(ii) six (6) months after the date on which the applicable Ambit Target was designated an Ambit Target pursuant to the terms hereof. Subject to Sections 4.4.2 and 4.4.3, each Option, which shall be exercisable during the Initial Term, is
for an exclusive, worldwide, non-sublicenseable (except as permitted by Sections 4.7 and 18.15), nontransferable (except as permitted by Section 4.7), royalty-free
(except as set forth in Section 4.11), perpetual (except as expressly set forth herein) license (the “Option License”) under the Cephalon IP and Cephalon’s share of the Licensed Compound IP to develop, make, have made,
use, sell, offer to sell and import Licensed Compounds, solely in connection with products that modulate the Ambit Target. Within thirty (30) days of Ambit’s receiving an Option, Cephalon shall notify Ambit whether the corresponding Option
Compound(s) are subject to any Third Party payment or other obligations or are covered by Cephalon IP. Within thirty (30) days of receipt of such notice from Cephalon, Ambit may elect to terminate its Option if the Option Compound is subject to
such Third Party obligations, and such termination shall not be counted for purposes of Section 4.4.4. If Ambit does not cancel the Option within such thirty (30) day period, Ambit agrees that it shall be solely responsible for satisfying
such Third Party obligations. 
 4.4.2 The Option shall be exclusive as to Ambit, unless, at the time Ambit elects to obtain the Option
pursuant to Section 4.4.1, Cephalon has entered into a binding commitment with a Third Party that prevents Cephalon from granting the Option or the license that Cephalon would be required to grant to Ambit upon Ambit’s exercise of the
Option (i.e., the Option License) in which case Cephalon will grant to Ambit an Option of the maximum permissible scope, if any, that would not conflict with the Third Party commitment. If, upon Cephalon’s notice to Ambit of the information
relating to such Third Party commitment in the prior sentence, Ambit determines in its reasonable discretion that Ambit will not pursue such Option, then the JRC shall, determine in good faith the appropriate manner to proceed, including, without
limitation, the options set forth in Section 4.3.1 or the provision by Cephalon of additional Cephalon Compounds for Ambit to profile pursuant to 4.3.1. Ambit shall exercise the Option by providing written notice to Cephalon specifying the
Option Compound for which it is exercising the Option. Upon Cephalon’s receipt of such notice, Cephalon agrees to grant, and hereby does grant to Ambit the Option License as set forth above. 

4.4.3 Notwithstanding the foregoing, in the event that a Cephalon Library Compound, or a Derivative Compound made pursuant to
Section 4.3.3, is equipotent (as 

  
 20 

 
determined by the JRC) against one or more Ambit Targets and one or more Cephalon Exclusive Targets, or if such a Derivative Compound is significantly active against a Cephalon Exclusive Target,
Ambit’s right to obtain an Option to such Cephalon Library Compound or Derivative Compound shall be subject to this Section 4.4.3. 

(a) Ambit desires an Option to an equipotent Cephalon Library Compound or Derivative Compound, it shall provide Cephalon with a written
request specifying the Cephalon Library Compound or Derivative Compound that Ambit requests to be covered by the Option along with reasonable supporting research and analysis demonstrating the requisite level of action of the Cephalon Library
Compound or Derivative Compound against the Ambit Targets and Cephalon Exclusive Targets. Cephalon shall have at least thirty (30) clays from the receipt of such notice to consider such request, and the Parties shall discuss in good faith
Ambit’s request at the next JRC meeting, including proposed licensing structures applicable to such equipotent Cephalon Library Compound or Derivative Compound (e.g., co-exclusive license instead of an
exclusive license) that may be required by Cephalon. In the event that the JRC is unable to agree upon Ambit’s request, then Cephalon may reject Ambit’s request for such Option if Cephalon can document the existence of an active or
scheduled internal research program or Third Party obligation related to such Cephalon Exclusive Target. In the event the JRC or Cephalon reject Ambit’s request, and Ambit determines in its reasonable discretion that Ambit will not pursue such
Option, then the JRC shall determine in good faith the appropriate manner to proceed, including, without limitation, the options set forth in Section 4.3.1 or the provision by Cephalon of additional Cephalon Compounds for Ambit to profile
pursuant to 4.3.1. 
 (b) If such Cephalon Library Compound or Derivative Compound is significantly active against a Cephalon Target as
determined by the JRC, Ambit shall not have the right to obtain an Option thereon without Cephalon’s prior written consent, and if. such Derivative Compound is covered by Ambit IP or Licensed Compound IP, Ambit agrees to grant, and hereby does
grant, to Cephalon an exclusive, irrevocable, perpetual, worldwide; royalty-free, transferable and sublicenseable license under the. Ambit IP and
Ambit’s rights in the Licensed Compound IP limited to developing; making, having made, using, selling, offering to sell and importing such Derivative Compound. 

4.4.4 During the Initial Term, Ambit shall have the right to receive and hold an Option to no more than two (2) Option Compounds at any
time, provided, however, that if Ambit can demonstrate to Cephalon’s reasonable satisfaction that it possesses the requisite capabilities required to adequately resource additional drug discovery programs, using Commercially
Reasonable Efforts, the number can be increased to a maximum of six (6). Not more than once per year, Ambit may elect to terminate one (1) or more of its Options by providing written notice of such termination to Cephalon six (6) months
prior to the next anniversary of the Effective Date, in which case such Options shall terminate and Ambit shall have the right to receive a corresponding number of additional Options pursuant to Section 4.4.1, in each case commencing on such
next anniversary date. 
 4.4.5 Ambit shall have the right to be licensed to no more than two (2) Licensed Compounds (and the
associated Backup Compounds) at any time, provided, however, that if Ambit can demonstrate to Cephalon that it possesses the requisite capabilities required to adequately resource additional drug discovery programs using Commercially
Reasonable Efforts, 

  
 21 

 
upon Cephalon’s written consent, the number can be increased to a maximum of six (6). Not more, than once per year, Ambit may elect to terminate work on one (1) or both of its Licensed
Compounds (including the associated Backup Compounds) by providing written notice of such termination to Cephalon six (6) months prior to the next anniversary of the Effective Date, in which case Ambit’s license to such Licensed Compounds
(including the associated Backup Compounds) shall terminate and Ambit shall have the right thereafter to exercise a corresponding number of additional Options and obtain a license to other Option Compounds pursuant to Section 4.4, in each case
commencing on such next anniversary date. 
 4.4.6 Ambit at any time may replace a Backup Compound with a Derivative Compound developed by
it pursuant to the applicable Option License on prior written notice to Cephalon and with Cephalon’s written approval, not to be unreasonably withheld, provided that such Derivative Compound meets all of the applicable requirements set
forth in this Article IV. Upon receipt of such approval from Cephalon, such Derivative Compound shall be deemed a Backup Compound, and the replaced Backup Compound shall no longer be a Licensed Compound. 

4.5 Ambit Development. 

4.5.1 Except as set forth in Sections 4.3.3 and 6.4, and except as permitted under an Option License, Ambit shall have no right hereunder to
optimize or otherwise develop any Cephalon Library Compounds or any other Cephalon Compounds. Ambit represents and warrants that it will optimize Cephalon Library Compounds and Licensed Compounds solely against the Ambit Targets, unless otherwise
approved in writing by Cephalon. 
 4.5.2 Ambit shall be solely responsible for the optimization, study and commercialization of Licensed
Compounds. Ambit shall use its Commercially Reasonable Efforts to develop the Licensed Compounds, including developing at least one (1) Licensed Compound per Option License granted by Cephalon to Ambit to the point where such Licensed Compounds
are suitable for IND submission. If at any time Ambit determines that it will not be able to exercise such Commercially Reasonable Efforts, it promptly shall notify Cephalon, and, without limiting Section 2.2.6, the Parties shall discuss in
good faith an appropriate course of action. 
 4.5.3 If, at any time during the course of Ambit’s research and development activities
under this Article IV, the significant activity of any Licensed Compound or any Derivative Compound is found to be significantly active against a Cephalon Target (instead of an Ambit Target), then Ambit may not continue to work on such Licensed
Compound. In such case, Ambit promptly shall disclose such Licensed Compound to Cephalon, along with the results of its work. If such Licensed Compound is covered by Ambit IP or Licensed Compound IP, Ambit agrees to grant, and hereby does grant, to
Cephalon an exclusive, irrevocable, perpetual, worldwide, royalty-free, transferable and sublicenseable license under the Ambit IP and Ambit’s rights in the Licensed Compound IP for the limited purpose of
developing, making, having made, using, selling, offering to sell and importing such Licensed Compound or Derivative Compound. 

  
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 4.5.4 If, at any time during the course of such optimization, the activity of any Licensed
Compound or Derivative Compound is found to be equipotent against a Cephalon Exclusive Target and an Ambit Target, then the Parties shall negotiate in good faith as to the proper manner for each Party to proceed with respect to such License Compound
or Derivative Compound. If, at any time during the course of such optimization, the activity of any Licensed Compound or Derivative Compound is found to be equipotent against a Cephalon Target (which is not a Cephalon Exclusive Target) and an Ambit
Target, then Ambit may continue to work on such Licensed Compound or Derivative Compound, provided that: (a) the focus of the work is to develop compounds whose activity is against the Ambit Target, and, (b) Cephalon shall have, and
is hereby granted, a non-exclusive, irrevocable, perpetual, worldwide, royalty-free, non-transferable right without right to
grant sublicenses under the Ambit IP and Ambit’s rights in the Licensed Compound IP for the limited purpose of developing, making, having made, and using, such Licensed Compound, for its own research and development purposes only. 

4.6 Discontinuation of Option or Option License. 

4.6.1 Upon termination of an Option, all rights granted hereunder by Cephalon to Ambit and relating to the applicable Option Compound shall
revert to, and are hereby assigned by Ambit to, Cephalon, at no cost. 
 4.6.2 Upon termination of an Option License (without limitation of
Section 4.4) and/or this Agreement, all rights granted hereunder by Cephalon to Ambit under the Option License shall terminate. 
 4.7
Cephalon Buy Back Rights and Right of First Negotiation. 
 4.7.1 Upon the completion of IND enabling activities for each Licensed
Compound, Ambit shall provide to Cephalon, in confidence, a complete detailed summary of its Licensed Compound program, including relevant data and results that would be submitted as part of an IND filing. Cephalon shall have the exclusive option
for sixty (60) days after the delivery of such summary to reacquire all rights to the Licensed Compound on mutually agreed upon terms, negotiated in good faith and consistent With pharmaceutical industry standards for small molecule programs at
such stage of development, taking into account Ambit’s investment and sunk cost, risk, market potential, NPV, and other commonly accepted licensing metrics. Should Cephalon decline this option or if the Parties are not able to agree upon the
terms for the reacquisition by Cephalon of all rights to the Licensed Compound, Cephalon shall continue to have the Right of First Negotiation. 

4.7.2 (a) Upon completion by Ambit of the first human
proof-of-concept study for each Licensed Compound, Ambit shall provide to Cephalon, in confidence, a complete detailed summary of its Licensed Compound program,
including relevant data and results generated from such study (including but not limited to information from or relating to clinical studies, correspondence with FDA, information regarding Third Party patents, and information regarding the
manufacture, sourcing and cost of goods for the Licensed Compound) (the “Cephalon License Notice”). Cephalon shall have the exclusive option for sixty (60) days following receipt of the Cephalon License Notice to determine
whether it wishes to pursue reacquiring the Licensed Compound. If Cephalon notifies Ambit in writing of its election to 

  
 23 

 
pursue the reacquisition of such Licensed Compound within sixty (60) days after Cephalon’s receipt of such Cephalon License Notice, Ambit, shall enter into good faith, exclusive
negotiations with Cephalon with respect to such reacquisition for a period of ninety (90) days following receipt, of such election from Cephalon (the “Negotiation Period”). Such reacquisition shall be upon terms, consistent
with pharmaceutical industry standards for small molecule programs ‘at such stage of development, taking into account Ambit’s investment and sunk cost; risk, market potential, NPV, and other commonly accepted licensing metrics. 

(b) During the Negotiation Period, Cephalon shall have .the opportunity to make a written proposal of terms and conditions with respect to
such a license and Ambit will either accept the proposal or provide a counter offer to Cephalon. If Cephalon has not provided Ambit with such a written proposal regarding all principal financial terms of such a license within the first forty five
(45) days of the Negotiation Period, the Negotiation Period shall terminate. If Ambit and Cephalon are able to conclude an agreement in principle within the Negotiation Period as set forth in a mutually satisfactory term sheet with respect to
such license, the Negotiation Period shall be extended for an additional sixty (60) days and the Parties shall negotiate in good faith a definitive agreement within such sixty (60) day period. During the Negotiation Period, Ambit shall not
negotiate or otherwise discuss with any Third Party any licensing or other arrangement with respect to the Licensed Compound. 
 (c) Should
Cephalon decline this option or if the Parties are not able to agree upon the terms for the reacquisition by Cephalon of all rights to the Licensed Compound, Cephalon shall continue have the Right of First Negotiation. 

4.7.3 Cephalon Right of First Negotiation. Cephalon shall have a right of first negotiation with respect to Licensed Compounds (the
“Right of First Negotiation”), which is a right independent of Cephalon’s buyback rights set forth in 4.7.1 and 4.7.2. The Right of First Negotiation shall be defined as follows. 

(a) In the event that Ambit desires to enter into a license or other arrangement with respect to any Licensed Compound, before entering into
negotiations with any Third Party with respect to such license, Ambit will notify Cephalon of its desire and provide Cephalon with information in Ambit’s possession and control that is reasonably necessary for Cephalon to perform its due
diligence with respect to such Licensed Compound (including but not limited to information from or relating to preclinical studies, clinical studies, correspondence with FDA, information regarding Third Party Patents, and information regarding the
manufacture, sourcing and cost of goods for the Licensed Compound) (the “Notice”). If Cephalon notifies Ambit in writing of its election to pursue a license for such Licensed Compound within thirty (30) days after
Cephalon’s receipt of such Notice, Ambit shall enter into good faith, exclusive negotiations with Cephalon with respect to such license for a period of one hundred and twenty (120) days (the “RFN Negotiation Period”)
following receipt of such election from Cephalon. Cephalon shall have the right to determine the scope of Licensed Compounds with respect to the license (i.e., whether such license will cover, for example, a single Licensed Compound or a list of
several Licensed Compounds or the entire genus of Licensed Compounds) and the proposals and term sheets that Ambit delivers to Cephalon during that RFN Negotiation Period shall include the terms for the scope of Licensed Compounds requested by
Cephalon. For one Licensed Compound mutually agreed to by the Parties, negotiations with Third Parties and other rights 

  
 24 

 
under this Section 4.7.3 shall only be available to Ambit after the IND enabling activities have been completed, or best efforts have been made to complete such activities, as determined by
the JRC. 
 (b) During the RFN Negotiation Period, Ambit will provide Cephalon with an opportunity to make a written proposal of terms and
conditions: with respect to such a license and Ambit will either accept the proposal or provide a counter offer to Cephalon. If Cephalon has not provided Ambit with such a written proposal regarding all principal financial terms of such a license
within the first forty-five (45) days of the RFN Negotiation Period, the RFN Negotiation Period will terminate. If Ambit and Cephalon are able to conclude an agreement in principle within the RFN
Negotiation Period as set forth in a mutually satisfactory term sheet with respect to such license; the Parties shall negotiate a definitive agreement in good faith with the goal of executing such agreement within sixty (60) days thereafter.

 (c) If Cephalon does not elect to pursue a license within the thirty (30) day period set forth above, or if Cephalon does so elect
but Ambit and Cephalon do not conclude an agreement in principle with respect to such license within the RFN Negotiation Period, or if Cephalon does not provide Ambit with a written proposal regarding the material terms of such a license within the
first forty-five (45) days of the RFN Negotiation Period, Ambit will then be free to enter into negotiations with any Third Party regarding a license for such Licensed Compound; provided that
(i) with respect to Licensed Compounds subject to Ambit IP, the material terms of such license shall not be more favorable to the Third Party than the best material terms offered by Cephalon to Ambit during the RFN Negotiation Period and
(ii) with respect to Licensed Compounds subject to Cephalon IP, the material terms of such license shall not be more favorable to the Third Party than the best material terms offered by Ambit to Cephalon during the RFN Negotiation Period. 

4.8 Reservation of Rights. Except as expressly set forth above, Cephalon shall have the sole and exclusive right to commercialize
Cephalon Compounds and Cephalon Library Compounds. 
 4.9 License to Licensed Compound IP. Without limitation of any other rights or
licenses granted to Cephalon herein, Ambit hereby grants to Cephalon, and Cephalon hereby accepts, a fully paid-up, royalty-free, worldwide, perpetual, non-exclusive, sublicenseable and transferable right under the Licensed Compound IP and Ambit IP for the limited purpose of developing, making, having made, offering to sell, selling, importing and using any
compound resulting from Ambit’s research and development activities under this Article IV, including all Derivative Compounds, other than any Licensed Compounds subject to an existing Option License and as to which Ambit is exercising
Significant Activity or any Licensed Compound subject to a Third Party licensing agreement or other arrangement pursuant to Section 4.7.3(c) that is in compliance with the terms of this Agreement. For the avoidance of doubt, Ambit retains
exclusive rights under Ambit IP relating to the Licensed Compound IP to develop, make, have made, offer to sell, sell, import, use, and Commercialize any Licensed Compound subject to a Third Party licensing agreement or other arrangement pursuant to
Section 4.7.3(c), and, assuming the existence of such agreement or arrangement pursuant to Section 4.7.3(c), Cephalon is granted no rights to commercialize any such Licensed Compound. From time to time, Ambit

  
 25 

 
shall deliver to Cephalon upon its request such information (including chemical structures) as may be reasonably required by Cephalon. 

4.10 Compound Co-Exclusivity. The development, manufacture, sale, import and use of any
Licensed Compounds or any Derivative Compounds made by or on behalf of Ambit, and rights under the Licensed Compound IP and with respect to any chemistry produced by Ambit relating to or derived from the Cephalon Library Compounds, shall be co-exclusive as between the Parties until the earlier of (a) with respect to a Licensed Compound, Cephalon’s having elected to not exercise its rights under Section 4.7 with respect to a Licensed
Compound and (b) with respect to all Licensed Compounds and Derivative Compounds, two (2) years after the expiration or termination of the Collaboration Term. The terms of this Section 4.10 shall not be applicable to those Licensed
Compounds or any Derivative Compounds that are both (i) derived from Non-Exclusive Compounds and (ii) not subject to Cephalon IP. 

4.11 Royalty Payments to Cephalon. 

(a) Net Sales. Ambit shall pay to Cephalon royalties equal to three percent (3%) of Net Sales by Ambit or its Affiliates of each
Licensed Product that at any time is subject to a Valid Claim that (i) covers a composition of matter and (ii) either is (x) included in any Cephalon Patent in existence as of the Effective Date or (y) included in any Cephalon
Patent that is issued after the Effective Date and based on invention disclosures in existence as of the Effective Date, as evidenced by Cephalon’s written records. Ambit shall pay Cephalon royalties on Net Sales of each Licensed Product
pursuant to the terms of this Agreement, on a Licensed-Product-by-Licensed Product and country-by-country basis, for a period from the date of the First Commercial Sale of such Licensed Product in such country until the date of expiration of the last-to-expire Cephalon Patent containing a Valid Claim covering a composition of matter which would be infringed by the making, using, or selling of the applicable Licensed Product in the applicable country.

 (b) Net Revenues. Ambit shall pay to Cephalon six percent (6%) of Net Revenues of each Licensed Product (i) that at any
time is subject to a Valid Claim that (x) covers a composition of matter and (y) either is (A) included in any Cephalon Patent in existence as of the Effective Date or (B) included in any Cephalon Patent that, is issued after the
Effective Date and based on invention disclosures in existence as of the Effective Date, as evidenced by Cephalon’s written records, and (ii) as to which Ambit has granted any sublicense or other rights to any Third Party. Ambit shall pay
Cephalon such amount for each such Licensed Product pursuant to the terms of this Agreement, on a Licensed Product-by-Licensed Product basis, for a period from the date
on which Ambit first receives Net Revenues from a Third Party with respect to such Licensed Product until the date of expiration of the last-to-expire Cephalon Patent
containing a Valid Claim covering a composition of matter which would be infringed by the making, using, or selling of the applicable Licensed Product in the applicable country. 

(c) Payment Report. After the date on which payments are due to Cephalon with respect to a Licensed Product under this
Section 4.11, Ambit shall provide Cephalon with a payment report on a quarterly calendar basis within ninety (90) days after the end of the calendar quarter to which such report applies. Each such report shall state, separately for Ambit,
and each Affiliate and Sublicensee, the number, description, and aggregate Net Sales or Net Revenues, as 

  
 26 

 
applicable, on a country-by-country basis and
product-by-product basis, if applicable, generated or received during the calendar quarter that is the subject of the report. Contemporaneously with the submission of
the reports Ambit shall pay to Cephalon all payments due for the subject calendar quarter. 
 (d) Records Retention. Ambit shall
keep, and require its Affiliates and Sublicensees to keep, for a period of not less than two (2) years, complete and accurate records of all Net Sales and Net Revenues. Cephalon shall have the right, at its sole expense, through a certified
public accountant reasonably acceptable to Ambit, and following reasonable notice, to inspect such records during regular business hours, during the life of Ambit’s obligation to make payments under this Section 4.11; provided,
however, that such inspection shall not (i) take place more often than once a year and (ii) cover any records which date prior to the date of the last examination, and further provided that, such accountants shall report only
as to the accuracy of the royalty statements and payments and the amount of any underpayment. Copies of such reports shall be supplied to Ambit. In the event that the report is in disagreement with the Net Sales or Net Revenues as calculated by
Ambit, Ambit shall notify Cephalon within ten (10) days of receipt by Ambit whether or not it agrees with the report. If Ambit notifies its agreement with the report within the ten (10) day period or fails to give any notification within
that period, the Net Sales or Net Revenues calculated by the report shall be used for purposes of calculating any monies owed and any monies owed by Ambit to Cephalon shall be paid by Ambit in accordance with the provisions of this
Section 4.11. If within ten (10) days starting on the day after receipt of the notification referred to in this Section 4.11, the Parties have not agreed to the terms in dispute in relation to the report, either Party may refer the
items in dispute to a partner of at least ten (10) years qualified experience at an independent, internationally recognized, public accounting firm agreed by the Parties in writing for final and binding resolution, or failing agreement on the
identity of the public accounting firm within fifteen (15) days starting on the day after receipt of the notification, referred to in this Section 4.11, an independent, internationally recognized, public accounting firm appointed on the
application of either Party by the President for the time being of the Institute of Chartered Accountants in the United States. Such person appointed shall act on the following basis: 

(i) such person shall act as an expert and not as an arbitrator; 

(ii) such person’s terms of reference shall be to determine the matters in dispute within twenty (20) days of his appointment; 

(iii) the Parties shall each provide such person with all information relating to the items in dispute which such person reasonably requires
and such person shall be entitled (to the extent he considers appropriate) to base his determination on such information; 
 (iv) the
decision of such person is, in the absence of fraud or manifest error, final and binding on the Parties; and 
 (v) such person’s costs
shall be paid by the Parties as such person may determine. 

  
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 Where Ambit agrees that it has or is found to have underpaid any amounts due under this
Section 4.11, Ambit promptly shall pay such royalties together with interest at the prime rate as stated in the Wall Street Journal Europe under “Money Rates” plus two percent (2%) applied to the amount unpaid from the
date due to the date paid. If Ambit has overpaid such amounts, Ambit may credit such overpayments against future amounts owed to Cephalon; provided that to the extent that no further amounts are due to Cephalon under this Section 4.11,
Ambit shall invoice Cephalon for the outstanding overpayment amount and Cephalon shall repay same within forty-five (45) days of the invoice. The interest available to each Party pursuant to this Section
shall in no way limit any other remedies available to each Party. 
 (e) Form of Payment. All payments required according to this
Section 4.11 shall be made in U.S. dollars, for Cephalon’s account, by wire transfer to a bank in the United States designated in writing by Cephalon; provided, however, that where payments in respect of Net Sales are based
on Net Sales in non-U.S. currencies, the amount of Net Sales and any deductions used to calculate Net Sales, if any, shall be converted by Ambit, based. on the average of the “bid” and
“asked” exchange rate provided by the Wall Street Journal Europe, for the last business day, of each calendar quarter, into U.S. dollars. Any undisputed payments that are not paid on the date such payments are due under this
Agreement shall bear interest to the extent permitted by applicable law at the prime rate as reported by the Chase Manhattan Bank, New York, New York, on the date such payment is due; plus an additional two percent (2%) calculated on the number
of days such payment is delinquent. The interest available to each Party pursuant to this Section shall in no way limit any other remedies available: 

(f) Blocked Payments. In the event that, by reason of applicable laws or regulations in any country, it becomes impossible or illegal
for Ambit to transfer, or have transferred on its behalf, royalties or other payments to Cephalon, such royalties or other payments shall be deposited in local currency in the relevant country to the credit of Cephalon in a recognized banking
institution designated by Cephalon or, if none is designated by Cephalon’ within a period of thirty (30) days, in a recognized banking institution selected by Ambit and identified in a notice in writing given to Cephalon. 

ARTICLE V. 
 COLLABORATION
EXCLUSIVITY 
 5.1 Collaboration Targets. Neither Party may engage in any research and development activities with respect to a
Collaboration Target with any Third Party or independently outside of the Collaboration during the applicable Exclusivity Period, provided that the foregoing shall not prohibit a Party from engaging a subcontractor pursuant to
Section 18.15 to perform certain of its obligations hereunder. The “Exclusivity Period” shall mean the period starting when a particular Collaboration Target is accepted into the Collaboration and shall continue for the longer
of: (a) [***], (b) [***], or (c) [***]. For the avoidance of doubt, Ambit shall be free to continue to provide its screening services (similar to those provided under the Profiling
Services Agreement) to Third Parties. 

  
  

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28 

 5.2 Non-Compete. During the Collaboration Term and
for a period of [***] thereafter, Ambit shall not, and shall cause each of its Affiliates to not, (a) conduct or fund any research, development and/or commercialization activity, either on
its own, or with, for the benefit of, or sponsored by, any Third Party, in connection with or related to any product that (i) would compete with or is directed to any Cephalon Exclusive Target or Collaboration Target and (ii) is based on
or related to any Licensed Compound, any Derivative Compound or any Collaboration Compound or covered by any Licensed Compound IP or Collaboration IP; or (b) grant any license or other rights to any Third Party to enable it to perform any of
the activities described in clause (a) above. 
 ARTICLE VI. 

INTELLECTUAL PROPERTY; LICENSES 

6.1 Ownership of Intellectual Property. 

6.1.1 Cephalon shall own all Licensed Compound IP related to any Derivative Compound that is covered by Cephalon IP (whether in whole or in
part). Ambit shall own all Licensed Compound IP related to any Derivative Compound that is covered solely by Ambit IP. All other Licensed Compound IP shall be the sole or joint property, as the case may be, of the Party or Parties inventing or
generating the same. 
 6.1.2 All Cephalon Compounds and Cephalon IP shall be the sole property of Cephalon. All Ambit Compounds and Ambit
IP shall be the sole property of Ambit. All Collaboration IP shall be the sole or joint property, as the case may be, of the Party or Parties inventing or generating the same, provided that Cephalon shall exclusively own any Collaboration IP
that is derived from any Cephalon IP (whether in whole or in part), other than for Collaboration IP solely related to a Collaboration Clinical Candidate. 

6.1.3 Upon the request and at the expense of the requesting Party, the other Party shall execute and deliver any and all instruments and
documents and take such other actions as may be necessary or reasonably requested by the requesting Party to effect the licenses and assignments granted to it hereunder. 

6.2 Licenses to Cephalon. 

6.2.1 Exclusive Option. Ambit hereby grants to Cephalon an exclusive option to obtain the licenses described in Section 6.2.2 to
all Collaboration Compounds, which option shall be exercised by Cephalon’s designation of a Collaboration Clinical Candidate pursuant to Section 8.1. 

6.2.2 License to Commercialize Collaboration Compounds. 

(a) Upon designation of a Collaboration Compound as a Collaboration Clinical Candidate against the First Collaboration Target pursuant to
Section 8.1, Ambit agrees to grant, and hereby does grant, to Cephalon a worldwide, perpetual, irrevocable, exclusive, 

  
  

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29 

 
royalty-bearing and transferable license, with the right to sublicense, under the Ambit IP and Ambit’s interest in the Collaboration IP and Licensed
Compound IP (if applicable), to make, have made, use, sell, offer to sell and import the Collaboration Clinical Candidate and/or Collaboration Products based on such Collaboration Clinical Candidate, for any and all uses and indications in the
Field. If Cephalon determines at any time that the Collaboration Clinical Candidate against the First Collaboration Target demonstrates potential utility outside the Field, then Ambit shall extend, and hereby does extend, the license described in
this Section 6.2.2(a) to cover such uses and indications outside the Field. 
 (b) Upon designation of a Collaboration Compound as a
Collaboration Clinical Candidate against the Second Collaboration Target pursuant to Section 8.1, Ambit agrees to grant, and hereby does grant, to Cephalon a worldwide, perpetual, irrevocable, exclusive,
royalty-bearing and transferable license, with the right to sublicense, under the Ambit IP and Ambit’s interest in the Collaboration IP and Licensed Compound IP (if applicable), to make, have made, use,
sell, offer to sell and import the Collaboration Clinical Candidate and/or Collaboration Products based on such Collaboration Clinical Candidate, for any and all uses and indications. 

(c) If Cephalon desires to develop a Collaboration Compound that is directed against the First Collaboration Target, and which Collaboration
Compound is not at the time a Collaboration Clinical Candidate, for uses and indications outside the Field, then Cephalon shall request the consent of Ambit for such development for uses and indications outside the Field, which consent shall not be
unreasonably withheld. Upon Ambit’s consent to such development and upon designation of a Collaboration Compound as a Collaboration Clinical Candidate against the, First Collaboration Target pursuant to Section 8.1, Ambit agrees to grant,
and hereby does grant, to Cephalon a worldwide, perpetual, irrevocable, exclusive, royalty-bearing and transferable license, with the right to sublicense, under the Ambit IP and Ambit’s interest in the
Collaboration IP and Licensed Compound IP (if applicable), to make, have made, use, sell, offer to sell and import the Collaboration Clinical Candidate and/or Collaboration Products based on such Collaboration Clinical Candidate for such uses and
indications outside the Field. 
 6.2.3 License to Compounds Derived from Cephalon Compounds. Ambit grants to Cephalon a worldwide,
perpetual, irrevocable, exclusive, royalty-free and transferable license, with the right to sublicense, under the Ambit IP and Ambit’s interest in the Collaboration IP, to exploit for any and all purposes
all compounds derived from Cephalon Compounds (whether in whole or in part) in connection with the Collaboration, except for the Collaboration Compounds that are licensed to Cephalon pursuant to Section 6.2.2. 

6.2.4 Other Cephalon Licenses. Cephalon shall have the licenses to the Ambit IP and the Licensed Compound IP as set forth in
Sections 4.3.4, 4.4.3(b), 4.5.3, 4.5.4, and 4.9. 
 6.3 Ambit Licenses. Ambit shall have the licenses to the Cephalon IP
and the Licensed Compound IP as set forth in Sections 4.3.3, 4.3.4 and 4.4.2. 
 6.4 Research Licenses. Notwithstanding any
other license granted herein, Ambit and Cephalon hereby grant each other non-exclusive, worldwide, royalty-free research licenses, without the right to sublicense, under
their respective interests in the Ambit IP, Cephalon IP and 

  
 30 

 
Collaboration IP, in order for each Party to perform its research obligations pursuant to Research Plans during the Collaboration Term. 

6.5 Restrictions on Sublicenses. Subject to the terms and Conditions of this Agreement, each Party shall have the right to sublicense
its rights hereunder solely to the extent expressly set forth herein, provided that the sublicensing Party shall provide the other Party with at least the following information with respect to each Sublicensee: (a) the identity of the
Sublicensee; (b) a description of the rights granted to the Sublicensee; and (c) the territory in which the products covered by the sublicense will be sold. Each such sublicense shall be consistent with, and subject to, all the terms and
conditions of this Agreement (including all diligence obligations set forth herein), provided that the Party granting the sublicense shall be fully responsible to the other Party with respect to any breach or violation of such sublicense.
Each Party shall be an intended third party beneficiary of any sublicense agreement entered into by the other Party. 
 6.6 No Implied
Licenses. Only the licenses expressly granted pursuant to the terms of this Agreement shall be of any legal force or effect. No other license rights shall be created by implication, estoppel or otherwise. 

6.7 Notification of Transfer of License Rights. A Party transferring or granting to a Third Party any rights granted to it by the other
Party pursuant to this Agreement, other than under Section 18.15, shall notify the other Party of such transfer in writing thirty (30) days prior to such transfer or grant. 

ARTICLE VII. 
 FUNDING 

7.1 License and Collaboration Fees. In consideration for the licenses granted hereunder, and Ambit’s performance of its
obligations under the Collaboration, Cephalon agrees to pay Ambit within thirty (30) days of the Effective Date the following: 
 (a)
Technology Access Fee: In consideration of access to Ambit’s proprietary KinomeScan Panel, the sum of [***]; and 
 (b) Collaboration
Targets: In consideration of the options and licenses granted by Ambit hereunder to Collaboration IP and Ambit IP, the sum of [***]. 

Other than the milestone and royalty payments set forth in Article VIII, no further payments shall be due to Ambit from Cephalon, unless the Parties mutually
agree to change the Collaboration or to extend the Collaboration Term pursuant to Section 16.2. 

  
  

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31 

 ARTICLE VIII. 

COLLABORATION CLINICAL CANDIDATES; MILESTONE PAYMENTS 

8.1 Designation of Collaboration Clinical Candidate. Upon designation of a Collaboration Clinical Candidate by the JRC and ratification
of such Collaboration Clinical Candidate by the Cephalon R&D committee, Cephalon, will be subject to the payment obligations set forth in Section 8.3, and shall use its Commercially Reasonable Efforts to conduct scale-up manufacturing, initiate GLP toxicology studies and conduct IND-enabling studies with respect to such Collaboration Clinical Candidate and related Collaboration
Products as are necessary to permit the filing of an IND for a Collaboration Product. 
 8.2 Diligence. Cephalon will be solely
responsible for the worldwide clinical development and commercialization of Collaboration Clinical Candidates, subject to the diligence and payment obligations set forth in this Article VIII. Cephalon will use Commercially Reasonable Efforts to
develop and commercialize at least one Collaboration Clinical Candidate directed against the First Collaboration Target and one Collaboration Clinical Candidate directed against the Second Collaboration Target in the United States, Europe and Japan,
either directly, through one or more Affiliates and/or Sublicensees, or some combination of the foregoing. 
 8.3 Milestone Payments by
Cephalon. 
 8.3.1 (a) Cephalon shall pay to Ambit the following milestone payments within thirty (30) days of the achievement
thereof, each of which shall be payable (i) one time in respect of a Collaboration Clinical Candidate designated as such pursuant to Section 8.1 after [***] from the Effective Date and
directed against the First Collaboration Target within the Field, provided that no milestone payments shall be payable in respect of such Collaboration Clinical Candidate if Cephalon has made or is required to make the milestone payments set
forth in Section 8.3.1(b), (ii) one time in respect of a Collaboration Clinical Candidate directed against the Second Collaboration Target, (iii) one time in respect of the first Mutant Form Candidate directed against the First
Collaboration Target within the Field, (iv) one time in respect of the second Mutant Form Candidate directed against the First Collaboration Target within the Field, and (v) one time in respect of a Collaboration Clinical Candidate
directed against the First Collaboration Target outside the Field: 
  

			
	 Milestone
	  	Amount (US$)
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

  
  

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	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 (b) Cephalon shall pay to Ambit the following milestone payments within thirty (30) days of the
achievement thereof, each of which shall be payable one time in respect to the first Collaboration Clinical Candidate (whether or not a Mutant Form Candidate) designated as such pursuant to Section 8.1 within [***] of the Effective Date and directed against the First Collaboration Target (specifically, the V600E form of BRaF) within the Field: 

 

			
	 Milestone
	  	Amount (US$)
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 8.3.2 No Duplicate Payments. Milestone payments shall be payable only once in respect of the Second
Collaboration Target, regardless of how many Collaboration Compounds directed at such Collaboration Target ultimately are designated as Collaboration Clinical Candidates. Milestone payments shall be payable only once in respect of the First
Collaboration Target within the Field, once in respect of the First Collaboration Target outside the Field (provided that if milestones have previously been paid with respect to the same Collaboration Clinical Candidate directed at the First
Collaboration Target within the Field, Cephalon shall only pay for those milestones not previously paid), once for the first Mutant Form Candidate and once for the second Mutant Form Candidate (each Mutant Form Candidate shall be directed at a
different mutation of the BRaF kinase), regardless of how many Collaboration Compounds, 

  
  

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33 

 
whether within or outside the Field, ultimately are designated as Collaboration Clinical Candidates with respect to the First Collaboration Target. Further, if milestones have previously been
paid for a Collaboration Clinical Candidate and such Collaboration Clinical Candidate’s use is then expanded such that it could qualify for a new set of milestones, or if development of a Collaboration Clinical Candidate is terminated and
replaced with a different Collaboration Clinical Candidate subject to the same set of milestones, Cephalon shall pay only once with respect, to milestones not yet achieved by the Collaboration Clinical Candidate, whether such milestones subsequently
are achieved with respect to the original use and/or the expanded use(s) or by the different Clinical Collaboration Candidate. 
 8.3.3
Invoices. Unless otherwise specified in writing, all payments required according to this Article VIII shall be made by transfer to the bank account nominated by Ambit upon timely receipt of an invoice. 

 

			
	If invoice to Cephalon:		Cephalon, Inc.
			41 Moores Road
			Frazer, PA 19355
		
			Attention: Accounts Payable
			Telephone: (610) 344-0200
			Telecopy: (610) 344-0065

 ARTICLE IX. 

ROYALTY PAYMENTS 
 9.1 Royalty
Term. 
 9.1.1 Cephalon shall pay Ambit royalties on Net Sales of each Collaboration Product pursuant to the terms of this Agreement, on
a Collaboration Product-by-Collaboration Product and country-by-country basis, for a
period from the date of First Commercial Sale of such Collaboration Product in such country until, the date which is the later of (i) [***], or (ii) [***]. 

9.1.2 If the licenses granted to Cephalon pursuant to Section 6.2.2 are still in force with respect to a particular Collaboration
Clinical Candidate at the end of the period for which royalties on the corresponding Collaboration Product are due pursuant to this Agreement, such license shall be converted to a fully paid-up, nonexclusive, royalty-free, perpetual, irrevocable and worldwide license, with the right to sublicense, under any Collaboration IP and Ambit IP necessary to make, have made, use, sell, offer to sell, and import the applicable
Collaboration Product on a country-by-country and Collaboration Product-by-Collaboration
Product basis. 

  
  

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34 

 9.2 Royalties on Collaboration Products. Cephalon shall pay to Ambit royalties on Net
Sales of each Collaboration Product that is subject to Section .8.3.1(a) and sold by Cephalon or its Affiliates or Sublicensees in the Territory, according to the following schedule: 

(a) for that portion of total annual Net Sales of a Collaboration Product which is less than or equal to [***]. 
 (b) for that portion of total annual Net Sales of a Collaboration Product which is
greater than [***]. 
 (c) for that portion of total annual Net Sales of a Collaboration Product which is greater than [***]. 

(d) for that portion of total annual Net Sales of a Collaboration Product which is greater than [***]. 

9.2A Royalties on Collaboration Products Not Subject to Section 9.2. Cephalon shall pay to Ambit royalties on Net Sales of the
Collaboration Product that is subject to Section 8.3.1(b) sold by Cephalon or its Affiliates or Sublicensees in the Territory, according to the following schedule: 

(a) if total annual Net Sales are less than or equal to [***] on all such total annual Net Sales. 

(b) if total annual Net Sales are greater than [***] on all such total annual Net Sales. 

(c) if total annual Net Sales are greater than [***] on all such total annual Net Sales. 

(d) if total annual Net Sales are greater than [***] on all such total annual Net Sales. 

9.3 Payment of Royalties. 

9.3.1 Royalty Report. After the First Commercial Sale of a Collaboration Product for which royalties are due and payable by Cephalon,
its Affiliates or Sublicensees hereunder, Cephalon shall provide Ambit with a royalty report on a quarterly calendar basis within ninety (90) days after the end of the calendar quarter to which such royalty report applies. Each such report
shall state, separately for Cephalon, and each Affiliate and Sublicensee, the number, description, and aggregate Net Sales, on, a country-by-country basis, and product-by-product basis during the calendar quarter during which a royalty is payable. Contemporaneously with the submission of the royalty reports Cephalon shall pay to
Ambit all royalties due for such calendar quarter. 

  
  

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35 

 9.3.2 Records Retention. Cephalon shall keep, and require its Affiliates and Sublicensees
to keep, for a period of not less than two (2) years, complete and accurate records of all Net Sales. Ambit shall have the right, at its sole expense, through a certified public accountant reasonably acceptable to Cephalon, and following
reasonable notice; to inspect such records during regular business hours, during the life of Cephalon’s obligation to pay royalties on Collaboration Products; provided, however, that such inspection shall not (i) take place
more often than once a year and (ii) cover any records which date prior to the date of the last examination, and further provided that, such accountants shall report only as to the accuracy of the royalty statements and payments and the
amount of any underpayment. Copies of such reports shall be supplied to Cephalon. In the event that the report is in disagreement with the Net Sales as calculated by Cephalon, Cephalon shall notify Ambit within ten (10) days of receipt by
Cephalon whether or not it agrees with the report. If Cephalon notifies its agreement with the report within the ten (10) day period or fails to give any notification within that period, the Net Sales calculated by the report shall be used for
purposes of calculating any monies owed and any monies owed by Cephalon to Ambit shall be paid by that Party in accordance with the provisions of this Section 9.3.2. If within ten (10) days starting on the day after receipt of the
notification referred to in this Section 9.3.2, the Parties have not agreed to the terms in dispute in relation to the report, either Party may refer the items in dispute to a partner of at least ten (10) years qualified experience at an
independent, internationally recognized, public accounting firm agreed by the Parties in writing for final and binding resolution, or failing agreement on the identity of the public accounting firm within fifteen (15) days starting on the day
after receipt of the notification referred to in this Section 9.3.2, an independent, internationally recognized, public accounting firm appointed on the application of either Party by the President for the time being of the Institute of
Chartered Accountants in the United States. Such person appointed shall act on the following basis: 
 (i) such person shall act as an expert
and not as an arbitrator; 
 (ii) such person’s terms of reference shall be to determine the matters in dispute within twenty
(20) days of his appointment; 
 (iii) the Parties shall each provide such person with all information relating to the items in dispute
which such person reasonably requires and such person shall be entitled (to the extent he considers appropriate) to base his determination on such information; 

(iv) the decision of such person is, in the absence of fraud or manifest error, final and binding on the Parties; and 

(v) such person’s costs shall be paid by the Parties as such person may determine. 

Where Cephalon agrees that it has or is found to have underpaid royalties, Cephalon promptly shall pay such royalties together with interest
at the rate as stated in the Wall Street 

  
 36 

 
Journal Europe under “Money Rates” plus [***] applied to the amount unpaid from the date due to the date paid. If Cephalon
has overpaid royalties, Cephalon may credit such overpayments against future royalties owed to Ambit. The interest available to each Party pursuant to this Section shall in no way limit any other remedies available to each Party. 

9.3.3 Form of Payment. All payments required according to this Article IX shall be made in U.S. dollars, for Ambit’s account, by
wire transfer to a bank in the United States designated in writing by Ambit; provided, however, that where payments in respect of Net Sales are based on Net Sales in non-U.S. currencies, the
amount of Net Sales and any deductions used to calculate Net Sales, if any, shall be converted by Cephalon, based on the average of the “bid” and “asked” exchange rate provided by the Wall Street Journal Europe,
for the last business day of each calendar quarter, into U.S. dollars. Any undisputed payments that are not paid on the date such payments are due under this Agreement shall bear interest to the extent permitted by applicable law at the prime rate
as reported by the Chase Manhattan Bank, New York, New York, on the date such payment is due, plus an additional two percent (2%) calculated on the number of days such payment is delinquent The interest available to each Party pursuant to this
Section shall in no way limit any other remedies available. 
 9.4 Third Party Royalties and Royalty Reductions. 

(a) Cephalon shall be responsible for procuring such licenses as it deems, in its sole discretion, appropriate for the manufacture, use,
marketing, sale or distribution of a Collaboration Product by it or its Affiliates or Sublicensees. In the event that Cephalon is required (as provided in Section 9.4(b) below) to pay royalties to a Third Party in respect of Relevant Third
Party Patent Rights, then Cephalon will be entitled to deduct from the future royalties payable to Ambit in respect only of that country the amount due to such Third Party, provided, however, that the total amount of such deductions in
any accounting period in respect of all claims in respect of Relevant Third Party Patent Rights shall not exceed [***] of the royalties payable for the country in question. 

(b) For purposes of Section 9.4(a), whether Cephalon is “required” to enter a license shall be determined as follows: 

(i) Cephalon shall be required to enter a license if so ordered by a court of competent jurisdiction, or if a court of competent jurisdiction
has found Cephalon liable for, infringing Relevant Third Party Patent Rights, or 
 (ii) Cephalon shall bring to the attention of Ambit, in
writing, any Relevant Third Party Patent Rights. The Parties agree to meet, within thirty (30) days after such written notification, along with their patent counsel under the appropriate confidentiality obligations, including if necessary the
execution of a joint defense agreement to discuss in good faith the basis of the determination that such a license is required. During such meeting the Parties agree to discuss such facts, findings, conclusions, opinions and other information as the
Parties deem 

  
  

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37 

 
relevant. If at the end of such discussions Cephalon and Ambit are unable to reach agreement, then the matter shall be referred to the Executive Officers, who shall promptly meet and endeavor to
reach consensus in a timely manner. If such individuals cannot resolve such dispute, then such dispute shall be referred to an independent patent attorney acceptable to both Parties, who shall determine whether such license is reasonably necessary.
The determination, of such independent patent attorney will be binding upon the Parties. The costs of the independent patent attorney shall be borne equally by the Parties. 

(c) In respect of any country in the Territory where a Collaboration Product is not covered by a licensed Patent and there are no statutory
data exclusivity or marketing exclusivity rights that can be enforced to prevent the entry of generic competition to that Collaboration Product, in the event of entry of “Substantial Generic Competition” into the marketplace in such
country, Cephalon shall be entitled to reduce the royalties payable to Ambit by [***]. For purposes of this Section 9.4(c), “Substantial Generic Competition” in a country is defined
as a Third Party’s (or Third Parties’) sales of a generic product containing the same Collaboration Clinical Candidate as found in the Collaboration Product in question (whether alone or in combination with other therapeutically
active compounds) reaching a market share in such country greater than or equal to [***] of Cephalon’s unit sales of the Collaboration Product in such country, without obtaining a license from Cephalon. It is understood that
Cephalon shall continue to pay the Ambit royalties on Net Sales of a Collaboration Product within any given country at the full rates otherwise applicable under this Agreement, until such time as Cephalon has determined and confirmed in writing to
Ambit, subject to reasonable verification, that there is Substantial Generic Competition with respect to a particular Collaboration Product in such country. At such time, subject to Section 11.3.8, Cephalon may reduce the payment of royalties
to Ambit in such country with respect to such Collaboration Product pursuant to this Section. 
 9.5 Blocked Payments. In the event
that, by reason of applicable laws or regulations in any country, it becomes impossible or illegal for Cephalon to transfer, or have transferred on its behalf, royalties or other payments to Ambit, such royalties or other payments shall be deposited
in local currency in the relevant country to the credit of Ambit in a recognized banking institution designated by Ambit or, if none is designated by Ambit within a period of thirty (30) days, in a recognized banking institution selected by
Cephalon and identified in a notice in writing given to Ambit. 
 ARTICLE IX-A 

CO-DEVELOPMENT/CO-PROMOTION OF COLLABORATION PRODUCT 

9A.1 Co-Development/Co-Promotion of a Collaboration
Clinical Candidate. At the conclusion by Cephalon of the first proof-of-concept study in humans involving a Collaboration Clinical Candidate directed against the
First Collaboration Target, Cephalon shall notify Ambit in writing of the results of such study, and Ambit shall have [***] following receipt of such notice to request in writing of Cephalon participation in the
co-development and co-promotion of 

  
  

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38 

 
such Collaboration Clinical Candidate. Cephalon, within [***] after such Ambit request, shall notify Ambit whether Cephalon will consider, in
its sole discretion, such co-development and co-promotion. If Cephalon notifies Ambit that it will consider such request, both Parties will negotiate in good faith the
terms of the co-development/co-promotion agreement, which will be capped at [***] participation by Ambit. Ambit shall participate in the costs of further development of
the Collaboration Clinical Candidate at the rate equal to its co-development/co-promotion participation. Should Cephalon determine a co-development/co-promotion arrangement not to be beneficial, Cephalon will notify Ambit of such determination and shall continue to develop and commercialize the applicable Collaboration Clinical Candidate
under terms of this Agreement. 
 ARTICLE X. 

REPORTS, BOOKS AND TAX MATTERS 

10.1 Examination of Books. Each of the Parties shall keep and maintain complete and accurate books in respect of its activities during
the Term, and with respect to books and records for which payment may be required, in accordance with applicable accounting principles consistently applied and in accordance with local law. Each Party shall have the right, at its sole expense,
during the Term and thereafter, through a certified public accountant reasonably acceptable to the other Party, and following reasonable notice, to inspect such records during regular business hours; provided, however, that such
inspection shall not (i) take place more often than once a year and (ii) cover any records which date prior to the date of the last examination. The Parties shall retain such records for the longer of the Term or as required by applicable
law, unless otherwise expressly set forth herein or unless the Parties shall otherwise mutually agree. 
 10.2 Inspection. Ambit
shall permit Cephalon, at Cephalon’s expense and upon reasonable prior notice, to visit and inspect Ambit’s facilities, to meet with scientific personnel and review the progress of the Collaboration no more than once a year. 

10.3 Tax Matters. Each Party agrees that the other Party is entitled to all tax benefits, including in particular, tax credits and/or
tax deductions attributable to amounts the other Party has paid hereunder. Each Party shall file its federal, state, and local tax returns on a basis consistent with this Agreement, and shall not take any action inconsistent with the other
Party’s entitlement to such tax benefits. In the event that a Party, in its judgment, determines that it must obtain information and verification regarding the use or application of such expenditures in order to prepare its tax returns or to
respond to an inquiry during a tax audit or any other inquiry relating to such treatment of its tax return, or to defend its tax position in any proceeding including litigation, the Parties shall reasonably cooperate with each other and provide such
information as the other Party may reasonably require at the request and expense of the requesting Party. 

  
  

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39 

 ARTICLE XI. 

PATENTS 
 11.1 Disclosure by
Employees, Agents or Independent Contractors. Cephalon and Ambit agree that as to any employees, agents, or independent contractors of Cephalon and Ambit presently in their employ or who are hired or retained by Cephalon or Ambit to perform,
manage performance of, or participate in the activities done pursuant to this Agreement, Cephalon and Ambit will ensure that such employees, agents, or independent contractors will promptly disclose and assign to the Party engaging them any and all
rights to inventions, developments, or improvements (whether patentable or not), conceived and/or reduced to practice during the course of their duties. Each Party will notify the other Party promptly of any sole or joint inventions within the
Collaboration IP. 
 11.2 Patent Prosecution and Related Activities. 

11.2.1 Ambit IP. Ambit shall be responsible, at its sole discretion and expense, for preparing, filing, prosecuting and maintaining in
such countries it deems appropriate, by itself or with Third Parties, Ambit Patents, including conducting any interferences, re-examinations, reissues and oppositions relating to such Patents. 

11.2.2 Cephalon IP. Cephalon shall be responsible, at its sole discretion and expense, for preparing, filing, prosecuting and
maintaining in such countries it deems appropriate, by itself or with Third Parties, Cephalon Patents including conducting any interferences, re-examinations, reissues and oppositions relating to such Patents.

 11.2.3 Licensed Compound IP. 

(a) Prosecution by Cephalon. Cephalon shall have the right to prepare, file, prosecute and maintain in such countries as it deems
appropriate in its discretion and at its sole expense, and upon appropriate consultation with Ambit and/or the Patent Committee pursuant to Section 11.2.4(c), Patents within the Licensed Compound IP that are owned (solely or jointly) by
Cephalon pursuant to this Agreement or that cover compounds to which Cephalon has an exclusive license in force pursuant to this Agreement, including conducting any interferences, re-examinations, reissues,
oppositions or requests for patent term extension or governmental equivalents relating to such Patents, and Ambit shall give reasonable cooperation in connection therewith, at Cephalon’s request. 

(b) Prosecution by Ambit. Ambit shall have the right to prepare, file, prosecute and maintain in such countries as it deems appropriate
in its discretion and at its sole expense, and upon appropriate consultation with Cephalon and/or the Patent Committee pursuant to Section 11.2.4(c), Patents within the Licensed Compound IP that are not covered by Section 11.2.3(a), in
each case including conducting any interferences, re-examinations, reissues, oppositions or requests for patent term extension or governmental equivalents relating to such Patents, and Cephalon shall give
reasonable cooperation in connection therewith, at Ambit’s request. 

  
 40 

 11.2.4 Collaboration IP. 

(a) Prosecution by Cephalon. Cephalon shall have the right to prepare, file, prosecute and maintain in such countries as it deems
appropriate in its discretion and at its sole expense, and upon appropriate consultation with Ambit and/or the Patent Committee pursuant to Section 11.2.4(c), Patents within the Collaboration IP owned (solely or jointly) by Cephalon, and/or
Patents directed to any compounds to which Cephalon has an option or license in force pursuant to Sections 6.2.1, 6.2.2 or 6.2.3, in each case including conducting any interferences, re-examinations, reissues,
oppositions or requests for patent term extension or governmental equivalents relating to such Patents within the Collaboration IP, and Ambit shall give reasonable cooperation in connection therewith, at Cephalon’s request. 

(b) Prosecution by Ambit. Ambit shall have the right to prepare, file, prosecute and maintain in such countries as it deems appropriate
in its discretion and at its sole expense, and upon appropriate consultation with Cephalon and/or the Patent Committee pursuant to Section 11.2.4(c), Patents within the Collaboration IP not included in Section 11.2.4(a), including
conducting any interferences, re-examinations, reissues, oppositions or requests for patent term extension or governmental equivalents relating to such Patents within the Collaboration IP, and Cephalon shall
give reasonable cooperation in connection therewith, at Ambit’s request. 
 (c) Cooperation; Request to Responsible Party. Each
of Cephalon and Ambit shall keep the other fully informed as to the status of patent matters described in Sections 11.2.3 and 11.2.4, including, without limitation, by providing the Patent Committee the opportunity to fully review and comment on any
invention disclosures. With respect to each Patent governed by Sections 11.2.3 or 11.2.4, the Patent Committee shall decide whether such Patent falls within Section: 11.2.3(a) or 11.2.3(b) or within Section 11.2.4(a) or 11.2.4(b), as
applicable. In the event of any overlap or conflict between subject matter that is claimed (or could be claimed) in a Patent for which Cephalon is responsible pursuant to Section 11.2.3(a) or 11.2.4(a) and subject matter that is claimed (or
could be claimed) in a Patent for which Ambit is responsible pursuant to Section 11.2.3(b) or 11.2.4(b), the Patent Committee shall determine which Patent should claim such subject matter pursuant to the terms of this Agreement. Where
practicable and where appropriate under the terms of this Agreement, the Patent Committee shall endeavor to adjust the scope of the claims of either such Patent or both such Patents, or to propose the filing of appropriate divisional applications,
in order to avoid or minimize such overlap or conflict. Cephalon and Ambit shall each reasonably cooperate with and assist the other at its own expense in connection with such activities, at the other Party’s request. Reasonable cooperation
shall include, without limitation, providing the requesting Party with necessary or useful data and information relating to the Patents and reasonable access to the inventors of said inventions, as well as causing the execution of required patent
assignments and/or other documents. Either Party may request the other Party, at the other Party’s discretion, to file a patent application claiming any invention within the Collaboration IP or Licensed Compound IP, as applicable, for which the
other Party has responsibility as set forth in Sections 11.2.3 or 11.2.4. It is understood and agreed that a Party shall not have any liability to the other Party with respect to such Party’s preparation or prosecution of any Patent pursuant to
this Section 11.2.4(c), as long as (i) such Party has complied with this Section 11.2.4(c) with respect to such Patent and (ii) such Party has not been negligent in conducting any such activities with respect to such Patent. 

  
 41 

 (d) Procedure on Uncertainty to Prosecute. In cases where the prosecution of Collaboration
IP is not clearly addressed by the provisions of Sections 11.2.3(a), 11.2.3(b), 11.2.4(a) and 11.2.4(b), the Patent Committee shall promptly hold discussions to determine how best to proceed and how costs should be apportioned between the Parties
and shall make a recommendation to the JRC, which shall make a decision on the matter. 
 11.2.5 Inventorship. Inventorship of all
Patents shall be determined based upon U.S. Patent Laws. 
 11.2.6 Election Not to Prosecute. Upon ninety (90) days written
notice to the other Party (the “Discontinuance Notice”), the responsible Party, on a country-by-country basis, may elect to discontinue the prosecution
of any patent applications filed pursuant to Sections 11.2.3 or 11.2.4 and/or not to file or conduct any further activities with respect to the Patents described in such Sections. In the event the responsible Party declines or elects not to
file or, having filed, elects not to further prosecute or maintain any Patents filed pursuant to this Agreement which relate to the Collaboration IP or Licensed Compound IP, or if Ambit declines or elects not to file or, having filed, elects not to
further prosecute or maintain any Ambit Patents licensed to Cephalon under Section 6.2.2, or to conduct any interferences, re-examinations, reissues, oppositions or requests for patent term extension or
governmental equivalents with respect thereto, the other Party shall have the right, at its discretion, and at its sole expense, to prepare, file, prosecute and maintain such Patents in such countries as it deems appropriate, and conduct any
interferences, re-examinations, reissues, oppositions or requests for patent term extension or governmental equivalents with respect thereto at its sole expense. The responsible Party agrees to cooperate in
any manner reasonably requested in connection with any such actions by the other Party, at the expense of the other Party, and shall assign, provided the Patents are freely assignable and not subject to a terminal disclaimer or other encumbrance,
all right, title and interest in and to such Patents to the Party continuing such activities. If the responsible Party does not receive written notice within ninety (90) days of the date of the Discontinuance Notice, then the responsible Party
shall be free to abandon such Patents at its sole discretion without any legal recourse by the other Party. 
 11.2.7 Permitted
Disclosures. Following a written notice from the other Party hereto, the Parties shall in good faith discuss granting each other permission in writing, not to be unreasonably withheld; to disclose in the specification of a patent application
filed by the other Party pursuant to this Agreement, any Ambit IP, Cephalon IP, Collaboration IP or Licensed Compound IP necessary to support and enable claims in such patent applications. 

11.3 Third Party Infringement. 

11.3.1 Rights to Enforce. Cephalon and Ambit shall have the right to initiate legal action to enforce the Patents within the
Collaboration IP or Licensed Compound IP against infringement or misappropriation by Third Parties or to defend any declaratory judgment action relating thereto. Each Party, at its sole expense, shall have the initial right but not the obligation to
initiate and conduct legal proceedings including, without limitation, to enforce, against any infringement of, or defend any declaratory judgment action involving, any Patent rights, the prosecution and maintenance for which that Party is
responsible, pursuant to Section 11.2.3 or 11.2.4. Each Party shall notify the other Party of its decision to bring proceedings or not within 

  
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sixty (60) days of the date that the infringement has come to its knowledge. If the actual or threatened infringement relates to the manufacture, use or sale of a product or material which
is a competing product to a Collaboration: Product or Licensed Product and Ambit is the Party conducting the suit with regard to the applicable Collaboration Product or Licensed Product, then Cephalon shall have the right at its option, to join with
Ambit in the suit and participate in all meetings, negotiations, discussions and proceedings in respect of issues which relate to the infringement of the Patent(s) by such competing product. Where the conduct of the action relates to matters
relevant only to issues of infringement by the competing product and not the scope or validity of Ambit’s Patents, Ambit shall follow Cephalon’s reasonable directions in the conduct of that part of the proceedings. In respect of other
parts of the proceedings, Ambit agrees to take into account Cephalon’s reasonable views and comments. Subject to Section 11.3.8, in the circumstances outlined in this Section, where Cephalon exercises its right to participate in the suit,
Cephalon shall bear [***] of the costs of such proceedings. 
 11.3.2 Failure to
Enforce Collaboration Patent or Licensed Compound Patent. If, within sixty (60) days of the date that the infringement or misappropriation of Collaboration IP or Licensed Compound IP comes to its knowledge (or written notice of a
declaratory judgment action alleging invalidity or unenforceability of such Collaboration IP or Licensed Compound IP), the Party with the initial right to bring proceedings (“Patent Owner”) under Section 11.3.1 above fails to
take action to halt such alleged infringement or misappropriation or defend such a declaratory judgment action, the other Party may, at its expense, take such legal action as it deems appropriate, in its own name (or to the extent necessary the
Patent Owner’s name), to halt such an alleged infringement or misappropriation or defend such a declaratory judgment action. The other Party shall notify the Patent Owner of its decision to do so. Where, in accordance with the procedure set out
in this Section, the other Party commences the proceedings, the Patent Owner may, at its option, join with the other Party in the suit and the Patent Owner shall have the right to participate in all meetings, discussions and proceedings in respect
of issues regarding the validity and/or revocation of the relevant Patent(s). In those circumstances, the other Party (i.e., the Pursuing Party) agrees to take into account the Patent Owner’s reasonable views and comments in the conduct of the
proceedings and, subject to Section 11.3.8, the Patent Owner shall bear [***] of the costs of such proceedings. The Patent Owner agrees to render such reasonable assistance as the Pursuing Party may request, including joining as a party to the
proceedings. 
 11.3.3 Rights to Enforce Ambit Patent or Cephalon Patent. In the event that either Party becomes aware that any
Patent within the Ambit IP or Cephalon IP is being infringed or misappropriated by a Third Party, or is subject to a declaratory judgment action arising from such infringement or misappropriation; such Party promptly shall notify the other Party. It
is understood and agreed that Ambit shall have the initial right, but not the obligation, to initiate and conduct legal proceedings to enforce the Ambit IP against any infringement or misappropriation or defend any declaratory judgment action
relating thereto, at its sole expense, and that Cephalon shall have the initial right, but not the obligation, to initiate and conduct legal proceedings to enforce the Cephalon IP against any infringement or misappropriation or defend any
declaratory judgment action relating thereto, at its sole expense. Cephalon or Ambit (as the 

  
  

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43 

 
case may be) shall notify the other Party Of its decision to bring proceeding or not within sixty (60) days of the date that the infringement has come to its knowledge. If the actual or
threatened infringement of the Ambit IP relates to the manufacture, use or sale of a product or material which is a competing product to a Collaboration Product or Licensed Compound, then Cephalon shall have the right at its option, to join with
Ambit in the suit and participate in all meetings, negotiations, discussions and proceedings in respect of issues which relate to the infringement of the Patent(s) by such competing product. Where the conduct of the action relates to matters
relevant only to issues of infringement by the competing product and not the scope or validity of Ambit’s Patents, Ambit shall follow Cephalon’s reasonable directions in the conduct of that part of the proceedings. In respect of other
parts of the proceedings, Ambit agrees to take into account Cephalon’s reasonable views and comments. Subject to Section 11.3.8, in the circumstances outlined in this Section 11.4.3 where the Commercializing Party exercises its right
to participate in the suit, the Commercializing Party shall be [***] of the costs of such proceedings. 

11.3.4 Failure to Enforce Ambit or Cephalon Patent. If, within sixty (60) days of the date that the infringement or
misappropriation comes to its knowledge (or written notice of a declaratory judgment action alleging invalidity or unenforceability of such Ambit or Cephalon Patent, as the case may be), the Patent Owner fails to take action to halt such alleged
infringement or misappropriation or defend such a declaratory judgment action under Section 11.3.3 .above, the other Party may, if it has been granted an exclusive license under such Ambit or Cephalon Patent (as the case may be), at its
expense, take such legal action as it deems appropriate, in its own name (or to the extent necessary the Patent Owner’s name), to halt such an alleged infringement or misappropriation or defend such a declaratory judgment action. The other
Party shall notify the Patent Owner of its decision to do so. Where, in accordance with the procedure set out in this Section, the other Party commences the proceedings, the Patent Owner may, at its option, join with the other Party in the suit and
the Patent Owner shall have the right to participate in all meetings, discussions and proceedings in respect of issues regarding the validity and/or revocation of the relevant Patent(s). In those circumstances, the other Party (i.e., the Pursuing
Party) agrees to take into account the Patent Owner’s reasonable views and comments in the conduct of the proceedings and, subject to Section 11.3.8, the Patent Owner shall bear [***] of the costs of such proceedings. The Patent Owner
agrees to render such reasonable assistance as the Pursuing Party may request. 
 11.3.5 Limitation on Timing to Bring Suit. The
Parties acknowledge that there may exist in certain countries statutory limitations on the period during which suit may be filed or other enforcement actions initiated against a Third Party’s infringement of the Patents (for example, the forty-five (45) day period for responding to a Third Party certification in the United States under 21 USC Sections 355(b)(2)(A)(iv) and 355(j)(2)(a)(vii), or any amendment or successor statute thereto,
claiming that Patents covering a Collaboration Compound Collaboration Product, Licensed Compound or Licensed Product are invalid or that infringement will not arise from the manufacture, use or sale of a product equivalent to the Collaboration
Compound, Collaboration Product, Licensed Compound or Licensed Product, as the case may be, by such Third Party). In such event: 

  
  

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44 

 (a) Ambit and Cephalon each shall immediately give written notice to the other of any potential
infringement action against such Third Party infringer of which they become aware; and 
 (b) the relevant Party shall have the right but
not the obligation to bring suit, and the provisions of this Section 11.3.5 shall apply save that such Party shall be required to obtain a discontinuance or elect to bring suit at least fourteen (14) business days prior to the expiry of
the relevant statutory period. If such Party elects to bring suit within such period, the provisions of this Section 11.3.5 shall apply; or 

(c) if the relevant Party elects not to, or has failed to, bring an infringement action against such Third Party infringer in such
country(ies) within the time period provided in this Section 11.3.5, then the other Party shall have the right but not the obligation, to bring suit against such infringer under this Section 11.3.5 prior to the expiration of the statutory
period. In the event that such other Party elects to bring suit, the provisions of this Section 11.3 shall apply. 
 11.3.6 No
Settlement Without Consent. Neither Party shall enter into any settlement of any claim, suit or proceeding under this Section 11.3 which admits or concedes that any Collaboration Patent or any Patent licensed from the other Party is invalid
or unenforceable without the prior written consent of such other Party. 
 11.3.7 Cooperation. Each Party shall keep the other
reasonably informed of the progress of any claim, suit or proceeding subject to this Section 11.3 and cooperate reasonably in connection with such activities at the request and expense of the Party involved in such claim, suit or proceeding.

 11.3.8 Division of Recoveries. Any recovery received in connection with a suit brought by a Party pursuant to this
Section 11.3 shall be retained by the Party initiating such suit. If Cephalon was a party to the suit, then any recovery received in connection with a suit brought pursuant to this Section 11.3 shall be used first to reimburse each Party
pro rata for expenses (including attorneys’, professional and expert fees) incurred in such suit, and any balance shall be retained by the Cephalon subject to a payment to the other Party of such other Party’s lost royalties. 

11.4 Infringement Claims by Third Parties. If the manufacture, sale or use of any product commercialized by a Party (the
“Commercializing Party”) pursuant to this Agreement results in any claim, suit or proceeding alleging patent infringement against a Commercializing Party (or its Sublicensees), such Commercializing Party shall promptly notify the
other Party in writing setting forth the facts of such claim in reasonable detail. The Commercializing Party shall have the exclusive right to defend and control the defense of any such claim; suit or proceeding, at its own expense, using counsel of
its own choice; provided, however, it shall not enter into any agreement or settlement which admits or concedes that any Patent licensed from the other Party is invalid, unenforceable or not infringed, without the prior written consent
of the other Party. The Commercializing Party shall keep the other Party reasonably informed of all material developments in connection with any such claim, suit or proceeding, and the other Party shall have the right (but not the obligation) to be
separately represented, at its expense, by 

  
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counsel of its own choice and to advise the Commercializing Party on the defense of such claim, suit or proceeding. 

11.5 Patent Term Restoration. The Parties hereto shall give reasonable cooperation to each other in obtaining patent term restoration
or supplemental protection certificates or their equivalents in any country in the Territory where applicable to the Collaboration IP. 

11.6 Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by Ambit are, and shall otherwise be deemed to be,
for purposes of Section 365(n) of the U.S. Bankruptcy Code (i.e., Title 11 of the U.S. Code) or analogous provisions of applicable law outside the United States, licenses of rights to “intellectual property” as defined under
Section 101 of the U.S. Bankruptcy Coded or analogous provisions of applicable law outside the United States. Each Party agrees that the other Party, as licensee of such rights under this Agreement, shall retain and may fully exercise all of
its rights and elections under the U.S. Bankruptcy Code or any other provisions of applicable law outside the United States that provide similar protection for “intellectual property”. 

11.7 CREATE Act. Neither Party shall invoke the Cooperative Research and Technology Enhancement (CREATE) Act of 2004 (Pub L. 108-453) in connection with the prosecution of any patents related to this Agreement without the prior written consent of the other Party. 

ARTICLE XII. 
 CONFIDENTIALITY 

12.1 Confidentiality. 

12.1.1 Term of Confidentiality. Except as otherwise provided in this Section 12.1, a Party receiving Confidential Information (the
“Receiving Party”) shall keep all Confidential Information disclosed to it by the disclosing Party (the “Disclosing Party”) confidential for the Collaboration Term and [***] thereafter. Without the prior written consent of the Disclosing Party, the Receiving Party shall not disclose any Confidential Information to any Third Party, except to the officers, employees,
agents, or representatives of the Receiving Party or the Receiving Party’s Affiliates (collectively the “Representatives”), who, in each case, have a need to know any such Confidential Information for purposes of the
implementation and performance by the Receiving Party of its obligations pursuant to this Agreement, and will use the Confidential Information provided by the Disclosing Party only for such limited purposes. 

12.1.2 Warranty of Obligation. Each Party warrants that each of its Representatives to whom any Confidential Information is disclosed
shall previously have been informed of the confidential nature of the Confidential Information and shall have agreed to be bound by terms and conditions equivalent to those set forth in this Agreement. The Receiving Party shall ensure that the
Confidential Information provided by the Disclosing Party shall not be used or disclosed by such Representatives except as permitted by this Agreement. The Receiving 

  
  

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46 

 
Party shall stand responsible for any breach by its Representatives of the confidentiality provisions set forth in this Agreement. 

12.1.3 Ownership of Confidential Information. Except as provided herein with respect to the ownership of any intellectual property, all
Confidential Information disclosed by the Disclosing Party shall remain the property of the Disclosing Party. Upon the written request of the Disclosing Party (i) all tangible Confidential Information provided by the Disclosing Party
(including, but not limited to all copies thereof and all unused samples of materials provided by the Disclosing Party) except for Confidential Information consisting of analyses, studies and other documents and materials prepared by or for the
benefit of the Receiving Party, shall be promptly returned to the Disclosing Party, and (ii) all portions of such analyses, studies and others documents prepared by or for the benefit of the Receiving Party (including all copies thereof) which
are within the definition of Confidential Information shall be destroyed, and the Receiving Party shall certify such destruction in writing to the Disclosing Party. 

12.1.4 Permitted Disclosures. The obligations of confidentiality and non-use set forth in this
Agreement shall not apply to any portion of the Confidential Information which: 
 (a) is or becomes public or available to the general
public otherwise than through the wrongful act or default of the Receiving Party or its representatives; or 
 (b) is obtained by the
Receiving Party from a Third Party who is lawfully in possession of such Confidential Information and is not subject to an obligation of confidentiality or non-use owed to the Disclosing Party; or 

(c) is previously known to the Receiving Party prior to disclosure by the Disclosing Party, as shown by written evidence, and is not obtained
or derived directly or indirectly from the Disclosing Party; or 
 (d) is independently developed by the Receiving Party without the use of
or reliance on any Confidential Information provided by the Disclosing Party hereunder, as shown by contemporaneous written evidence. 

12.1.5 Legal Disclosure. The Receiving Party may disclose the Confidential Information of the Disclosing Party to the extent reasonably
necessary in prosecuting or defending litigation, complying with applicable laws, governmental regulations or court order, or otherwise submitting required information to tax or other governmental
authorities. If the Receiving Party intends to so disclose any such Confidential Information, the Receiving Party shall provide the Disclosing Party prompt prior notice of such fact so that the Disclosing Party may seek to obtain a protective order
or other appropriate remedy concerning any disclosure of such Confidential Information. The Receiving Party will reasonably cooperate with the Disclosing Party in connection with the Disclosing Party’s efforts to obtain any such order or other
remedy. If any such order or other remedy does not fully preclude the disclosure of such Confidential Information, the Receiving Party will make such disclosure only to the extent that such disclosure is legally required and will use its reasonable
efforts to have confidential treatment accorded to the disclosed Confidential Information. 

  
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 12.1.6 No Warranty As To Reliability. Each of the Parties acknowledges that neither Party
makes any representation or warranty as to the reliability, accuracy or completeness of any of the Confidential Information disclosed hereunder, except for any specific representation or warranty made in other sections of this Agreement. The
Receiving Party agrees that neither the Disclosing Party nor any of the Disclosing Party’s Representatives shall have any liability to the Receiving Party arising from the disclosure of Confidential Information by the Disclosing Party except as
otherwise provided herein. 
 12.1.7 No Implied License. Except as otherwise expressly set forth in this Agreement, nothing herein
shall be construed as giving the Receiving Party any light, title and interest in and to the Confidential Information of the Disclosing Party. 

12.1.8 Public Domain. For the purpose of this Agreement, specific information disclosed as part of the Confidential Information shall
not be deemed to be in the public domain or in the prior possession of the Receiving Party merely because it is embraced by more general information in the public domain or by more general information in the prior possession of the Receiving Party.

 12.2 Publications. A Party desiring to submit a publication or presentation related to any matters that are the subject of this
Agreement shall not do so without the prior written consent of the other Party, which consent shall, not be unreasonably withheld. Each Party shall submit for the other Party’s review any proposed publication or presentation containing any
information generated by either Party (or by both Parties) hereunder during the Collaboration Term, or containing any Confidential Information of the other Party, at least forty-five (45) days in advance
of such proposed publication or presentation. The reviewing Party shall promptly review such proposed publication and respond in any event within forty-five (45) days after receipt, and shall make any
objections that it may have to the publication of any such information, or of any Confidential Information of the reviewing Party contained therein. Should the reviewing Party make an objection to the publication of any such information or
Confidential Information, then the Parties shall discuss the advantages and disadvantages of publishing such information and/or Confidential Information provided always that a Party shall not be compelled to agree to the disclosure of its
Confidential Information and if following such discussions the Party still objects to the inclusion of such Confidential Information it shall be removed. If the Parties are unable to agree on whether particular subject matter may be published or
presented, then the Executive Officers shall attempt to resolve the matter, but if it is unable to do so, such matter shall not be subject to the dispute resolution provisions of Sections 2.4 and 18.18. Notwithstanding the foregoing, upon the
reviewing Party’s request, the other Party shall not submit any such publication or presentation until the reviewing Party is given a reasonable period of time (not less than forty-five (45) days) to
secure patent protection for any material in such publication or presentation that it believes to be patentable. 
 12.3 Terms of
Agreement. The existence and the terms and conditions of the Agreement that the Parties have not specifically agreed to disclose pursuant to Section 12.1 shall be considered Confidential Information of both Parties. Either Party may
disclose, upon the other Party’s prior written consent, such terms to a bona fide potential investor, investment banker, acquiror, merger partner or other potential financial partner, and their attorneys and agents, provided that each
such Person to whom such information is to be disclosed is informed of the 

  
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confidential nature of such information and has agreed to maintain the confidentiality of such information. 

12.4 Injunctive Relief. The Parties hereto understand and agree that remedies at law may be inadequate to protect against any breach of
any of the provisions of this Article XII by either Party or their employees, agents, officers or directors or any other person acting in concert with it or on its behalf. Accordingly, each Party shall be entitled to, without the posting of bond,
the granting of injunctive relief by a court of competent jurisdiction against any action that constitutes any such breach of this Article XII. 

12.5 Registration and Filing of the Agreement. To the extent, if any, that a Party concludes in good faith that it is required to file
or register this Agreement, a summary of the terms of this Agreement, or a notification thereof with any governmental authority, including without limitation the U.S. Securities and Exchange Commission and the Competition Directorate of the
Commission of the European Communities, in accordance with applicable laws and regulations, such Party may do so, and the other Party shall cooperate in such filing or notification and shall execute all documents reasonably required in connection
therewith at the, expense of the requesting Party. The Parties shall promptly inform each other as to the activities or inquiries of any such governmental authority relating to this Agreement, and shall cooperate, to respond to any request for
further information therefrom at the expense of the requesting Party. 
 ARTICLE XIII. 

REPRESENTATIONS AND WARRANTIES OF AMBIT 

13.1 Representations and Warranties. Ambit represents and warrants to Cephalon as follows: 

13.1.1 Organization. It is a corporation validly existing and in good standing under the laws of the State of Delaware. 

13.1.2 Authority. It has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. All corporate acts and other proceedings required to authorize such execution, delivery, and consummation have been duly and properly taken and obtained. 

13.1.3 Enforceability. This Agreement has been duly executed and delivered by Ambit and constitutes legal, valid, and binding
obligations of Ambit enforceable against Ambit in accordance with its terms. 
 13.1.4 Approvals and Consents. No approval,
authorization, consent, or other order or action of or filing with any court, administrative agency or other governmental authority is required for the execution and delivery by Ambit of this Agreement or the consummation by Ambit of the transaction
contemplated hereby (other than contemplated Collaboration Product Regulatory Approvals). 
 13.1.5 No Conflicts. None of the
execution, delivery, or performance of this Agreement by Ambit (i) conflicts with or results in a breach under the charter documents or any 

  
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material contractual undertaking of Ambit, or its Affiliates or (ii) conflicts with or results in a violation of any of the laws of the jurisdiction of incorporation of Ambit. Ambit has not,
to the best of its knowledge entered into, nor will Ambit, after the Effective Date, knowingly enter into any written or oral agreement that is or would be inconsistent with its obligations under this Agreement or deprives or would deprive Cephalon
of the benefits of this Agreement. 
 13.1.6 Title. As of the Effective Date, Ambit has good title to or valid leases or licenses for
all its properties, rights, and assets necessary for the fulfillment of its obligations and responsibilities under this Agreement. 
 13.1.7
Sufficient Rights. As of the Effective Date, to the best of Ambit’s knowledge after due inquiry, Ambit represents and warrants that Ambit owns or Controls its Patents necessary to conduct the Collaboration and to grant the rights and
licenses to Cephalon, and to fulfill its duties and obligations pursuant to this Agreement. As of the Effective Date, to the best of Ambit’s knowledge after due inquiry, Ambit represents and warrants that the Collaboration Compounds described
in Section 1.17(i), and Ambit’s activities with respect to the First Collaboration Target as currently conducted and as proposed to be conducted, including the practice of the Ambit IP in connection therewith, do not violate the valid
patent rights or other intellectual property rights of any Third Party, and to the best knowledge of Ambit after due inquiry, as of the Effective Date, all other practice of the Ambit IP does not violate the valid patent rights or other intellectual
property rights of any Third Party. 
 13.1.8 No Prior Grant or Patents. As of the Effective Date, Ambit has not (i) knowingly
granted any licenses to Third Parties, or (ii) knowingly filed any patent application, in either case inconsistent with the licenses granted or to be granted to Cephalon hereunder. 

13.1.9 Resources. As of the- Effective Date and during the Collaboration Term, Ambit has and
shall have sufficient financial and other resources to timely perform its obligations under the Profiling Services Agreement and this Agreement, including with respect to research and development of the Licensed Compounds and the Collaboration. 

13.1.10 Disclaimer. Except as provided herein, Ambit specifically disclaims any guarantee that the Collaboration will be successful, in
whole or in part. The failure of Ambit to successfully identify Collaboration Compounds that are suitable as Clinical Compounds will not, of itself, constitute a breach of any representation or warranty or other obligation under this Agreement.
Ambit does not make any representation or warranty or guaranty that the Collaboration will be sufficient for the successful completion of the research contemplated thereby. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, AMBIT MAKES NO
REPRESENTATIONS AND EXTENDS NO WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE AMBIT IP, COLLABORATION IP, COLLABORATION COMPOUNDS OR AMBIT COMPOUNDS INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF AMBIT IP OR COLLABORATION IP, PATENTED OR UNPATENTED, OR NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES. 

  
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 ARTICLE XIV. 

REPRESENTATIONS AND WARRANTIES OF CEPHALON 

14.1 Representations and Warranties. Cephalon represents and warrants to Ambit as follows: 

14.1.1 Organization. It is a corporation validly existing and in good standing under the laws of Delaware. 

14.1.2 Authority. It has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. All corporate acts and other proceedings required to authorize such execution, delivery, and consummation have been duly and properly taken and obtained. 

14.1.3 Enforceability. This Agreement has been duly executed and delivered by Cephalon and constitutes the legal; valid, and binding
obligations of Cephalon enforceable against Cephalon in accordance with its terms. 
 14.1.4 Approvals and Consents. No approval,
authorization, consent, or other order or action of or filing with any court, administrative agency or other governmental authority is required for the execution and delivery by Cephalon of this Agreement or the consummation by Cephalon of the
transaction contemplated hereby (other than contemplated Collaboration Product Regulatory Approvals). 
 14.1.5 No Conflicts. None of
the execution, delivery, or performance of this Agreement by Cephalon (i) conflicts with or results in a breach under the charter documents or any material contractual undertaking of Cephalon, or its Affiliates or (ii) conflicts with or
results in a violation of any of the laws of the jurisdiction of incorporation of Cephalon. Cephalon has not, to the best of its knowledge entered into, nor will Cephalon, after the Effective Date, knowingly enter into any written or oral agreement
that is or would be inconsistent with its obligations under this Agreement or deprives or would deprive Ambit of the benefits of this Agreement. 

14.1.6 Sufficient Rights. As of the Effective Date, it owns or Controls its Patents necessary to conduct the Collaboration and to grant
the rights and licenses to Ambit, and to fulfill its duties and obligations pursuant to this Agreement. To the knowledge of Cephalon, as of the Effective Date, the practice of the Cephalon IP does not violate the valid patent rights of any Third
Party. 
 14.1.7 No Prior Grant or Patents. As of the Effective Date, Cephalon has not (i) knowingly granted any licenses to
Third Parties, or (ii) knowingly filed any patent application; in either case inconsistent with the licenses granted or to be granted to Ambit hereunder. 

14.1.8 Title. As of the Effective Date, it has good title to or valid leases or licenses for all its properties, rights; and assets
necessary for the fulfillment of its obligations and responsibilities under this Agreement. 

  
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 14.1.9 Disclaimer. Except as provided herein, Cephalon specifically disclaims any
guarantee that the Collaboration will be successful, in whole or in part. The failure of Cephalon to successfully identify Clinical Candidates will not, of itself, constitute a breach of any representation or warranty or other obligation under this
Agreement. Cephalon does not make any representation or warranty or guaranty that the Collaboration will be sufficient for the successful completion of the research contemplated thereby. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, CEPHALON MAKES
NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OR CONDITIONS OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE CEPHALON IP, COLLABORATION IP, COLLABORATION COMPOUNDS, CEPHALON COMPOUNDS OR CEPHALON LIBRARY COMPOUNDS INCLUDING, BUT NOT
LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF CEPHALON IP OR COLLABORATION IP, PATENTED OR UNPATENTED, OR NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF
THIRD PARTIES. 
 ARTICLE XV. 

SURVIVAL AND INDEMNIFICATION 

15.1 Survival of Representations, Warranties, Covenants, and Agreement. The representations, warranties, covenants,
and agreements contained in this Agreement shall survive as set forth in Section 16.6. Except as expressly provided herein, the Parties confirm that they have not relied upon any other representations, warranties, covenants, and agreements as
an inducement to enter into this Agreement or the other agreements and instruments to be executed and delivered by the Parties pursuant to this Agreement: 

15.2 Indemnification by Ambit. Ambit hereby agrees to indemnify and hold Cephalon, its Affiliates, and their respective officers, directors, stockholders, employees, agents, and representatives (collectively, the “Cephalon Indemnitees”) harmless from and against any and all
claims, liabilities, losses, damages, costs and expenses in respect of claims against the Cephalon Indemnitees by Third Parties other than the Cephalon Indemnitees, including reasonable fees and disbursements of counsel and expenses of reasonable
investigation (collectively, “Cephalon Losses”), arising out of, based upon or caused by: (a) the inaccuracy of any representation or the breach of any warranty, covenant or agreement of Ambit contained in this Agreement or in
any other agreement or instrument delivered by Ambit pursuant to this Agreement; (b) any failure by Ambit, its Affiliates or their respective designees to conduct the research pursuant to the Research Plans in a diligent and professional manner
and in accordance with applicable laws and regulations; (c) any gross negligence or intentional wrongdoing by Ambit, its Affiliates or designees in the performance of the research hereunder; (d) any injury, illness or disease suffered by
any Ambit employees in connection with the performance of the Collaboration; (e) any breach of Ambit’s contractual obligations to Third Parties; or (f) the development, preclinical and clinical testing, manufacture, distribution, sale
and/or use (including but not limited to product liability claims) of any Licensed Compound, Collaboration Compound or Licensed Product for which Ambit is responsible for development and commercialization pursuant to the terms of this Agreement
(except, in each case (a) to (f), to the extent that any Cephalon Loss is due to the gross negligence or willful misconduct of Cephalon Indemnitees). Except with respect to a breach arising under Sections 13.1.6, 13.1.7 or 13.1.8, in no event
shall Ambit’s aggregate 

  
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liability to the Cephalon Indemnitees with respect to Cephalon Losses arising out of, based on or caused by the matters set forth in Section 15.2(a), (b), (c), (d) or (e) exceed
[***]. 
 15.3 Indemnification by Cephalon. Subject to Section 15.2,
Cephalon hereby agrees to indemnify and hold Ambit, its Affiliates, subcontractors and their respective officers, directors, stockholders, employees, agents, and representatives (collectively, the “Ambit Indemnitees”) harmless from
and against any and all claims, liabilities, losses, damages, costs and expenses in respect of claims against the Ambit Indemnitees by Third Parties other than the Ambit Indemnitees, including reasonable fees and disbursements of counsel and
expenses of reasonable investigation (collectively, “Ambit Losses”), arising out of, based upon or caused by: (a) the inaccuracy of any representation or the breach of any warranty, covenant or agreement of Cephalon contained
in this Agreement or in any other agreement or instrument delivered by Cephalon pursuant to this Agreement; (b) any failure by Cephalon, its Affiliates or their respective designees to conduct the research pursuant to the Research Plans in a
diligent and professional manner and in accordance with applicable laws and regulations; (c) any gross negligence or intentional wrongdoing by Cephalon, its Affiliates or designees in the performance of the research hereunder; (d) any
injury, illness or disease suffered by any Cephalon employees in connection with the performance of the Collaboration; (e) any breach of Cephalon’s contractual obligations to Third Parties; or (f) the development, preclinical and
clinical testing, manufacture, distribution, sale and/or use (including but not limited to product liability claims) of any Collaboration Clinical Candidate, Collaboration Compound or Collaboration Product for which. Cephalon is responsible for
development and commercialization pursuant to the terms of this Agreement (except, in each case (a) to (f), to the extent that any Ambit Loss is due to the gross negligence or willful misconduct of Ambit Indemnitees). Except with respect to a
breach arising under Sections 14.1.6, 14.1.7 or 14.1.8, in .no event shall Cephalon’s aggregate liability to the Ambit Indemnitees with respect to Ambit Losses arising out of, based upon or caused by the matters set forth in
Section 15.3(a), (b), (c), (d) or (e) exceed [***]. 
 15.4 Notices. Each indemnified Party agrees to give the
indemnifying Party prompt written notice of any action, claim, demand, discovery of fact, proceeding or suit (collectively, “Claims”) for which such indemnified Party intends to assert a right to indemnification under this
Agreement; provided, however, that failure to give such notification, shall not affect the indemnified Party’s entitlement to indemnification hereunder except to the extent that the indemnifying Party shall have been prejudiced as
a result of such failure. The indemnifying Party shall have the initial right (but not the obligation) to defend, settle or otherwise dispose of any Claim for which the indemnified Party intends to assert a right to indemnification under this
Agreement as contemplated in the preceding sentence if and so long as the indemnifying Party has recognized in a written notice to the indemnified Party provided within thirty (30) days of such written notice its obligation to indemnify the
indemnified Party for any Ambit Losses or Cephalon Losses (as the case may be) relating to such Claim; provided however that if the indemnifying Party assumes control of the defense, settlement, or disposition of a Claim, the
indemnifying Party shall obtain the written consent of the indemnified Party prior to ceasing to defend, settling or otherwise disposing of the Claim in the event that such cessation, settlement or disposition would materially adversely affect the
indemnified Party. If the indemnifying Party 

  
  

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53 

 
fails to state in a written notice during such thirty (30) day period its willingness to assume the defense of such a Claim, the Ambit or Cephalon Indemnitee, as the case may be, shall have
the right to defend, settle or otherwise dispose of such claim at the indemnifying Party’s sole expense, subject to the applicable provisions of Sections 15.2 and 15.3 above. The indemnified Party shall not settle or compromise an
Indemnification Claim without the prior written consent of the indemnifying Party, and the indemnifying Party shall not settle or compromise an Indemnification Claim in any manner which would have an adverse effect on the indemnified Party’s
interests, without the prior written consent of the indemnified Party, which consent, in each case, shall not be unreasonably withheld or delayed. The indemnified Party shall reasonably cooperate with the indemnifying Party at the indemnifying
Party’s expense and shall make available to the indemnifying Party all pertinent information under the control of the indemnified Party, which information shall be subject to Article XII. 

ARTICLE XVI. 
 TERM, TERMINATION,
AND EXPIRATION. 
 16.1 Term of Agreement. The term of this Agreement (the “Term”) shall commence on the Effective
Date and shall continue in full force and effect on a country-by-country and Collaboration
Product-by-Collaboration Product basis until both Parties and their respective Sublicensees have no remaining royalty obligations in a country, unless terminated earlier
as provided in this Article XVI. 
 16.2 Collaboration Term. The Collaboration shall commence on the Effective Date and terminate on
the last day of the Initial Term, unless extended by mutual agreement of the Parties. In the event that Cephalon desires to extend the Collaborations Term, it shall so inform Ambit of such desire not less than six (6) months before the last day
of the Initial Term or then-current Collaboration Term, in which case the Parties shall negotiate additional consideration to Ambit for any such proposed extension. If the Initial Term or the extended
Collaboration Term, as the case may be, is not extended in the manner set forth in the preceding sentence, the Collaboration shall terminate on the last day of the Initial Term or extended Collaboration Term, as the case may be. 

16.3 Termination. 
 16.3.1
Breach. If either Party breaches, or defaults in the performance of, or fails to be in compliance with, any material warranty, representation, agreement or covenant of this Agreement, and such default or noncompliance shall not have been
substantially remedied within sixty (60) days after receipt by the defaulting Party of a written notice thereof and demand to cure such default from the other Party, the Party not in default or breach shall have the right to terminate this
Agreement upon written notice effective immediately. 
 16.3.2 Bankruptcy. Either Party may, subject to the provisions herein,
terminate the Collaboration and this Agreement if, at any time, the other Party shall file in any court pursuant to any statute, a petition in bankruptcy or insolvency or for reorganization in bankruptcy or for an arrangement or for the appointment
of a receiver or trustee of such Party or of its assets, or if such Party proposes a written agreement of composition or extension of its debts, or if such Party shall be served with an involuntary Petition against it, filed in any

  
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insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if such Party shall propose or be a party to any dissolution, or if such
Party shall make an assignment for the benefit of creditors. 
 16.3.3 Additional Termination by Cephalon. 

(a) Cephalon shall have the right to terminate this Agreement upon written notice effective immediately in the event of an Adverse Financial
Event. 
 (b) No earlier than [***] after final delivery of the Cephalon Library
Compounds pursuant to Section 4.1, Cephalon shall have the right to terminate this Agreement, at its sole discretion, upon ninety (90) days prior written notice to Ambit. As of the effective date of any such termination, neither Party
shall have any further obligation to perform any activities with respect to any Research Plan pursuant to this Agreement. 
 16.3.4
Rights in Law or Equity. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, TERMINATION BY EITHER PARTY PURSUANT TO THIS SECTION 16.3 SHALL NOT PREJUDICE ANY OTHER REMEDY THAT A PARTY MIGHT HAVE IN LAW OR EQUITY, EXCEPT THAT NEITHER PARTY MAY
CLAIM COMPENSATION FOR LOST OPPORTUNITY OR LIKE CONSEQUENTIAL DAMAGES OR SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES ARISING OUT OF THE FACTS OF SUCH TERMINATION, EXCEPT IN CONNECTION WITH A BREACH OF ARTICLE XII, A PARTY’S INFRINGEMENT OR
MISAPPROPRIATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS OR A PARTY’S INDEMNIFICATION OBLIGATIONS HEREUNDER. 
 16.4
Change of Control. 
 16.4.1 Ambit immediately shall notify Cephalon of the occurrence of a Change of Control prior to the completion
of the Collaboration. Upon a Change of Control of Ambit occurring prior to completion of the Collaboration, Cephalon may, in its absolute discretion exercisable by giving Ambit notice in writing within thirty (30) days of Cephalon being
notified of the Change of Control, elect to (a) continue working with Ambit or the successor Third Party under the terms of this Agreement, (b) assume responsibility for completing the Collaboration, and/or (c) terminate this
Agreement. 
 16.4.2 Upon a Change of Control of Ambit, Ambit or the Third Party successor immediately shall halt their activities under the
Collaboration and shall cease all access to and use of any Cephalon Confidential Information, Cephalon IP and any other rights owned hereunder by Cephalon, except as may otherwise be specified by Cephalon in writing. The rights to any compound
covered by Cephalon Confidential Information, Cephalon IP and/or any other rights owned hereunder by Cephalon shall revert to Cephalon, except as may otherwise be specified by Cephalon in writing. The foregoing notwithstanding, any rights
transferred to any 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

55 

 
Third Party under Section 4.7.3(c) prior to Change of Control shall not be affected by this Section 16.4. 

16.4.3 Upon Cephalon’s election pursuant to Section 16.4.1(a), Cephalon and Ambit or the Third Party successor shall negotiate in
good faith such amendments to this Agreement that shall be required by Cephalon to continue with the Collaboration. Such negotiations shall not occur for more than thirty (30) days, unless otherwise extended by Cephalon. 

16.4.4 Upon Cephalon’s election pursuant to Section 16.4.1(b), the following provisions shall apply: 

(a) the Parties shall agree to times convenient to both Ambit and Cephalon when scientist(s) from Ambit may visit Cephalon to facilitate the
transfer to Cephalon of that Ambit IP necessary for and limited to Cephalon’s completion of the Collaboration, which transfer shall be completed at Cephalon’s own cost and expense; 

(b) Ambit shall use its reasonable efforts to assign to Cephalon the benefit and burden of any agreement made between Ambit and any
subcontractor pursuant to Section 18.15; 
 (c) the milestone payments due to Ambit pursuant to Article VIII shall be reduced pro-rata to the number of months elapsed since the Effective Date (as a ratio to [***]) at the date of the cessation of Ambit involvement in the Collaboration
(e.g., such that if this occurs after the third anniversary of the Effective Date there shall be no reduction in this milestones); provided however, if as of the date of Cephalon’s notice of election pursuant to 16.4.1(b),
(i) a Collaboration Clinical Candidate has been designated; (ii) Ambit has completed the screening of the Cephalon Library Compounds; and (iii) Ambit has delivered all profiling data from the screening of the Cephalon Compound Library
to Cephalon, then there shall be no such reduction in the milestone payments relating to any such Collaboration Clinical Candidate; and 

(d) the JRC shall be dissolved, the obligations on Ambit under Section 2.2 shall transfer to Cephalon and those provisions concerning the
JRC shall not apply. Furthermore, Sections 2.1, 2.3, 2.4, 3.1, 3.2, 3.3, 3.4, 3.5 and 8.2 shall not apply. All other provisions of the Agreement shall continue to apply save as expressly modified by this Section 16.4.4. 

16.4.5 Upon Cephalon electing to terminate this Agreement pursuant to Section 16.4.1(c), this Agreement shall be terminated upon
Cephalon’s written notice effective immediately, whereupon Ambit shall pay to Cephalon as liquidated damages the sum of [***], reduced, pro rata, over the remainder of the Initial Term of the Agreement; provided however, if as of
the date of Cephalon’s notice of termination pursuant to 16.4.1(c) (i) a Collaboration Clinical Candidate has been designated; (ii) Ambit has completed the screening of the Cephalon Library Compounds; and (iii) Ambit has
delivered all profiling data from the screening of the Cephalon Library Compounds to Cephalon, then there shall be no payment of liquidated damages per the terms of this 16.4.5. 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

56 

 16.5 Effect of Breach or Termination. 

16.5.1 Accrued Obligations. Termination of this Agreement for any reason shall not release any Party hereto from any liability which; at the time of such termination, has already accrued to: the other Party or which is attributable to a period prior to such termination. 

16.5.2 Return of Materials. Upon any termination of this Agreement, Cephalon and Ambit shall promptly (a) return to the other
Party all Confidential Information received from the other Party (except one copy of which may be retained for archival purposes) and (b) destroy any analyses, studies or other documents, prepared by or for the benefit of Cephalon or Ambit as
the case may be, relating to such other Party’s Confidential Information, in each case except to the extent necessary for a Party to exercise any of its rights under any licenses granted to it that survive termination. 

16.5.3 Effect of Termination. In the event of any termination of the Collaboration, Ambit and Cephalon shall have no future obligation
to conduct research activities pursuant to any Research Plan after the effective date of such termination. 
 16.5.4 Licenses. 

(a) Termination by Ambit Pursuant to Section 16.3.1 or 16.3.2. In the event of termination by Ambit of this Agreement pursuant to
Section 16.3.1 or Section 16.3.2, Cephalon’s licenses under Section 6.2 shall terminate, and all exclusivity periods, rights and licenses granted to Ambit hereunder as of the effective termination date shall remain in effect,
subject to the terms and conditions of this Agreement applicable thereto. Furthermore, (i) Ambit shall have the right to exercise any existing Options upon written notice to Cephalon delivered within ten (10) days of the effective
termination date, and (ii) Ambit shall have a fully paid-up, worldwide, perpetual, irrevocable, transferable, royalty-free and exclusive license, with the right to
sublicense, under any Collaboration IP, Licensed Compound IP or Cephalon IP, as the case may be, necessary to make, have made, use, sell, offer to sell, and import any Collaboration Clinical Candidate (that had been designated pursuant to
Section 8.1 prior to the effective termination date) or Licensed Compound (that had been designated pursuant to Section 4.4.2 prior to the effective termination date) Ambit shall have, at its sole expense, the right to prepare, file,
prosecute and maintain in such countries as it deems appropriate in its discretion, all Patents subject to the license conveyed in this section 16.5.4(a)(i) and (ii). 

(b) Termination by Cephalon Pursuant to Section 16.3.1, 16.3.2 or 16.3.3(a). In the event of termination by Cephalon pursuant to
Section 16.3.1, Section 16.3.2 or 16.3.3(a), all exclusivity periods, rights and licenses granted to, Ambit hereunder shall terminate; and all exclusivity periods, rights and licenses granted to Cephalon hereunder shall remain in effect,
subject to the terms and conditions of this Agreement applicable thereto. Furthermore, (i) upon written notice given within ten (10) days of the effective termination date, Cephalon shall have the right to designate any Collaboration
Compounds as Collaboration Clinical Candidates, in which case Cephalon shall be licensed to such Collaboration Clinical Candidates as set forth in Section 6.2.1, provided that such license shall be fully
paid-up and royalty-free, and (ii) Cephalon shall have an exclusive, royalty-free,
fully-paid up, worldwide, transferable license, with the right to sublicense, under any Licensed Compound IP and Ambit IP necessary to make, 

  
 57 

 
have made, use, sell, offer to sell, and import Licensed compounds and Derivative Compounds in existence as of the effective termination date. Cephalon shall have the right, at its sole expense,
to prepare, file, prosecute and maintain in such countries as it deems appropriate in its discretion, all Patents subject to the license conveyed in this Section 16.5.4(b)(i) and (ii). The foregoing in this Section 16.5.4(b)
notwithstanding, any license agreement or other arrangement negotiated with a Third Party pursuant to Section 4.7.3(c) prior to termination under Section 16.3.2 or 16.3.3(a) shall not be subject to this Section 16.5.4(b). 

(c) Termination by Cephalon of the Agreement Pursuant to Section 16.3.3(b). In the event of termination of the Agreement by
Cephalon pursuant to Section 16.3.3(b), all licenses granted pursuant to this Agreement as of the effective termination date shall remain in effect, subject to the terms and conditions of this Agreement applicable thereto, including the
applicable provisions of Articles V, VII, VIII and IX, which shall survive and be applicable to such licenses in addition to the provisions which survive pursuant to Section 16.6. 

16.6 Survival. Without limiting Section 16.5, the provisions of Sections 2.5, 4.3.4 (last sentence), 4.4.3(b), 4.5.3, 4.5.4, 4.7,
..4.8, 4.9, 4.10, 4.11, 10.1, 10.3, 11.2, 11.3, 11.4, 11.5, 11.6, 11.7, 13.1.10, 14.1.9, 16.3.4, 16.4.5, 16.5 and 16.6, and Articles V, VI (other than Section 6.4), XII, XV, XVIII shall survive the expiration or termination of this Agreement,
provided that: 
 16.6.1 The provisions of Article V shall not survive as to Ambit if Ambit has terminated this Agreement pursuant to
Section 16.3.1 or 16.3.2; and 
 16.6.2 The provisions of Article V shall not survive as to Cephalon if Cephalon has terminated this
Agreement pursuant to Section 16.3.1, 16.3.2 or 16.3(a). 
 ARTICLE XVII. 

FINANCIAL MATTERS 
 17.1
Financial Reports. During the Collaboration Term, Ambit shall provide to Cephalon: 
 17.1.1 as soon as practicable, but in any event
within one hundred and twenty (120) days after the end of each fiscal year of Ambit, an income statement for such fiscal year and a balance sheet of Ambit as of the end of such fiscal year, such year-end
financial reports to be in reasonable detail, prepared in accordance with GAAP, and audited and certified by independent public accountants of nationally recognized standing reasonably acceptable to Cephalon; 

17.1.2 as soon as practicable, but in any event within thirty (30) days after the end of each of the first three (3) fiscal quarters
of each fiscal year of Ambit, an unaudited profit or loss statement for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter; and 

17.1.3 such other information relating to the financial condition, business, prospects and corporate affairs of Ambit as Cephalon may from
time to time reasonably request and at Cephalon’s expense. 

  
 58 

 Cephalon shall have the right, at its sole expense, to engage an auditor reasonably acceptable to Ambit to review
and audit the financial statements provided to it by Ambit pursuant to this Section 17.1. 
 17.2 Right to Purchase Ambit Stock.
Upon the occurrence of an Adverse Financial Event at any time during the Collaboration Term, Cephalon shall have either of the rights specified in Sections 17.2.1 and 17.2.2 below: 

17.2.1 Cephalon shall have the right to purchase upon written notice to Ambit, and Ambit shall issue and sell to Cephalon, convertible
debt instruments or shares of capital stock of Ambit having an aggregate purchase price reasonably determined by Cephalon to cure the existence of the Adverse Financial Event. Such capital stock shall be shares of Ambit’s capital stock (the
“Ambit Stock”) and have terms as mutually agreed by the Parties. The purchase price to be paid by Cephalon for each share of Ambit Stock shall be the then-current fair market value thereof
(the “Share Price”), determined as follows: 
 (a) the fair market value per share of Ambit Stock shall be determined by
the Board of Directors of Ambit; provided, however, that in the event that Cephalon disputes the fair market value as so determined, Cephalon and Ambit shall, within ten (10) days after Cephalon notifies Ambit in writing of such
disagreement, appoint a mutually acceptable independent valuation expert who shall determine such fair market value. If the Parties hereto cannot agree on a valuation expert within such ten (10) day period, a valuation expert with substantial
experience in valuing pharmaceutical companies comparable to Ambit shall be selected by the New York, New York office of the American Arbitration Association. The valuation expert so designated shall not be an employee, consultant, officer, director
or stockholder of any Party hereto or of any Affiliate of any Party hereto. The valuation expert shall use such expert’s best efforts to establish the fair market value of the Ambit Stock within thirty (30) days after such expert’s
appointment. The determination of the valuation expert as to the value of the Ambit Stock shall be binding and conclusive upon all Parties hereto, and the fees and expenses of such valuation expert shall be borne equally by Ambit and Cephalon. In
determining such fair market value, the valuation expert shall not take into account the exercise price of stock options, financings which constituted less than five hundred thousand dollars ($500,000) in gross proceeds to Ambit, equity issued as a so-called “equity feature” (such as a warrant) of a transaction primarily involving a collaboration relationship, the provision of services or the incurrence of indebtedness for borrowed money, and
issuances of stock to Affiliates of Ambit. 
 (b) An “Adverse Financial Event” shall mean that Ambit shall have failed to
have the greater of (i) sufficient freely available cash on hand to timely perform all of its obligations hereunder for the period of time between (i) the AFE Determination Date (as defined below) or (ii) the date six (6) months
from the AFE Determination Date and (ii) two million ($2 million) in freely available cash. “AFE Determination Date” shall mean any date(s) designated by Cephalon to perform an analysis of Ambit’s financial condition.
Ambit shall provide reasonable assistance to Cephalon to determine the existence of an Adverse Financial Event. 
 17.2.2 Right to
Require Financing. Cephalon shall have the right to cause Ambit, at Ambit’s expense to use its best efforts to initiate and complete a round of Third Party equity 

  
 59 

 
financing within six (6) months of Cephalon’s request thereof in such aggregate amount as is reasonably determined by Cephalon to cure the existence of the Adverse Financial Event.
Cephalon shall have the right to participate in such round of financing on terms no less favorable than those negotiated by Ambit with its other investors. 

ARTICLE XVIII. 
 MISCELLANEOUS 

18.1 Notices. Any notice or other communication required or permitted to be given by either Party under this Agreement shall be
effective when delivered, if delivered by hand or by electronic facsimile or five (5) days after mailing if mailed by registered or certified mail, postage prepaid and return receipt requested, and shall be addressed to each Party at the
following addresses or such other address an may be designated by notice pursuant to this Section: 
  

			
	If to Ambit:		If to Cephalon:
	  
 Ambit Biosciences Corporation

4215 Sorrento Valley Blvd.
 San Diego, CA 92121

Attn: Stephen Keane
 Fax:
(858) 334-2198
		 Cephalon, Inc.
 41 Moores Road

Frazer, PA 19355
 Attn: Executive Vice President, Research &
Development
 Fax: (610) 344-0065

	  
 With a copy to:
		With a copy to:
	  
 Ambit Biosciences Corporation

4215 Sorrento Valley Blvd.
 San Diego, CA 92121

Attn: Kerry A. Kelly, General Counsel
 Fax: (858) 334-2198
		 Cephalon, Inc.
 41 Moores Road

Frazer, PA 19355
 Attn: General Counsel

Fax: (610) 344-0065

 18.2 Amendments. No amendment, modification or addition hereto shall be effective or binding on either
Party unless set forth in writing and executed by duly authorized representatives of both Parties. 
 18.3 Waiver. No waiver of any
rights under this Agreement shall be deemed effective unless contained in writing signed by the Party charged with such waiver, and no waiver of any breach or failure to perform shall be deemed a waiver of any future breach or failure to perform or
any other right arising under this Agreement. 
 18.4 Headings. The section headings contained in this Agreement are included for
convenience only and form no part of the agreement between the Parties. 
 18.5 Applicable Law. This Agreement shall be governed by,
subject to and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law provisions. 

  
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 18.6 Jurisdiction. Without limitation of Section 18.18, each Party hereby irrevocably
submits to the exclusive jurisdiction of (i) the Superior Court of the State of Delaware, New Castle County, and (ii) the United States District Court for the District of Delaware, for the purposes of any suit, action or other proceeding
arising out of this Agreement or out of any transaction contemplated hereby. Each Party agrees to commence any such action, suit or proceeding either in the United States District Court for the District of Delaware or if such suit, action or other
proceeding may not be brought in such court for jurisdictional reasons, in the Superior Court of the State of Delaware, New Castle County. Each Party further agrees that service of any process, summons, notice or document by personal delivery, by
registered mail, or by a recognized international express delivery service to such Party’s respective address set forth above shall be effective service of process for any action, suit or proceeding in Delaware with respect to any matters to
which it has submitted to jurisdiction in this Section. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in
(i) the Superior Court of the State of Delaware, New Castle County, and (ii) the United States District Court for the District of Delaware, and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead or
claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. 

18.7 Severability. If any provision of this Agreement is held to be invalid, void or unenforceable for any reason, it shall be
adjusted, if possible, rather than voided in order to achieve the intent of the Parties to the maximal extent possible. In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the fullest extent possible. 

18.8 Assignment: Binding Effect. Neither this Agreement, nor any obligations or rights hereunder, shall be assignable or transferable
(whether by contract, operation of law or otherwise) by any Party hereto without the prior written consent of the other Party; provided however, that Cephalon may assign this Agreement without the consent of the Ambit to its Affiliates
or in connection with the sale or transfer of all or substantially all of its assets relating to this Agreement, whether by merger, sale of stock, operation of law or otherwise. Any purported assignment in contravention of this Section shall, at the
option of the non-assigning Party, be null and void and of no effect. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties to the extent
necessary to carry out the intent of this Agreement. Ambit acknowledges that Ambit’s being a party to this Agreement is essential to Cephalon. Accordingly, without limitation of any other provision herein, Ambit agrees that Cephalon shall have
the right under 11 U.S.C. 365(c)(1) or successor provisions to refuse to accept performance from or render performance to any entity, including Ambit as the debtor or debtor in possession, in a case involving Ambit under the U.S. Bankruptcy Code,
and Ambit shall not assert any arguments or defenses to the contrary. 
 18.9 Further Assurances. Each Party agrees to execute,
acknowledge and deliver such further instruments, and to do all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

18.10 Force Majeure. No Party shall be liable for any failure or delay in performance under this Agreement to the extent such failure
or delay arises from Force Majeure. A Force Majeure is fire, explosion, earthquake, storm, flood, strike, labor difficulties, war, insurrection, 

  
 61 

 
riot, act of God or the public enemy, or any law, act, order, export or import control regulations, proclamation, decree, regulation, ordinance, or instructions of local, state, federal or
foreign governmental or other public authorities, or judgment or decree of a court of competent jurisdiction (but excluding a court injunction against a Party’s performance) and not otherwise arising out of breach by such Party of this
Agreement. In the event of the occurrence of such an event, the Party so affected shall give prompt written notice to the other Party, stating the period of time the occurrence is expected to continue and shall use best efforts to end the failure or
delay and ensure that the effects of such Force Majeure are minimized. 
 18.11 Negation of Agency. Nothing herein contained shall be
deemed to create an agency, joint venture, amalgamation, partnership, or similar relationship between Cephalon and Ambit. The relationship between the Parties established by this Agreement is that of independent contractors. 

18.12 Publicity. Promptly after the Effective Date, Ambit and Cephalon shall have the right to issue a press release regarding this
Agreement, in a form agreed to by the Parties prior to the Effective Date. No other public announcement concerning the existence or the terms of this Agreement shall be made, either directly or indirectly, by Ambit or Cephalon, except as may be
legally required by applicable laws, regulations, or judicial order, without first obtaining the approval of the other Party and agreement upon the nature, text, and timing of such announcement, which approval and agreement shall not be unreasonably
withheld. The Party desiring to make any such public announcement shall provide the other Party with a written copy of the proposed announcement in sufficient time prior to public release to allow such other Party to comment upon such announcement,
prior to public release. Neither Party shall issue any press release or make any public announcement, which includes or otherwise uses the name of the other Party in any public statement or document except with the prior written consent of such
Party. Notwithstanding the preceding sentence, Ambit and Cephalon shall issue joint press releases in a timely manner announcing the achievement of significant events related to or arising from the Collaboration. Such events include, by way of
example, the achievement of milestone events and the payment of milestone payments, IND or NDA filings, and the commencement of specific clinical trials. 

18.13 Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof. Any
prior agreement, arrangement or undertaking, whether oral or in writing is hereby superseded. 
 18.14 Beneficiaries. No person,
other than Cephalon or Ambit and their permitted assignees hereunder, shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement. 

18.15 Affiliates and Subcontractors. Either Party may engage, at its sole expense, its Affiliates or Third Party subcontractors
(including contract research organizations) to perform certain of its obligations under this Agreement. Any Affiliate or Third Party subcontractor to be engaged by a Party to perform such Party’s obligations set forth in this Agreement shall
meet the qualifications typically required by such Party for the performance of work similar in scope and complexity to the subcontracted activity. The activities of any such Affiliates or Third Party subcontractors shall be considered activities of
such Party under this Agreement. Such Party 

  
 62 

 
shall be responsible for ensuring compliance by any such Affiliates or Third Party subcontractors with the terms of this Agreement. In any case in which a Party engages an Affiliate or a Third
Party subcontractor, such Party shall obtain sole ownership of, or exclusive license to, all inventions, data, information and related intellectual property rights made or developed by such Affiliate, or Third Party subcontractor so that the Party
is able to make the assignments and grant the licenses set forth herein. 
 18.16 Compliance with Laws. In exercising their rights
under this Agreement, the Parties shall fully comply with the requirements of any and all applicable laws, regulations, rules and orders of any governmental body having jurisdiction over the exercise of rights under this Agreement. 

18.17 Patent Marking. Each Party agrees to mark and have its Affiliates and Sublicensees mark all Collaboration Products and Licensed
Products sold pursuant to this Agreement in accordance with the applicable statute or regulations relating to patent marking in the country or countries of manufacture and sale thereof. 

18.18 Dispute Resolution. 

(a) Attempt to Settle. The Parties agree to take all reasonable efforts to resolve any and all disputes between them concerning
diligence obligations and/or questions of material breach and default in connection with this Agreement in an amicable manner Any such disputes shall promptly be presented to the Chief Executive Officer of Ambit and the Executive Vice President of
Research and Development of Cephalon, or their respective designees, for resolution. If a dispute between the Parties arising out of or relating to the validity or interpretation of, compliance with, breach or alleged breach of or termination of
this Agreement cannot be resolved within fifteen (15) business days of presentation to the Chief Executive Officer of Ambit and the Executive Vice President of Research and Development of Cephalon, or their respective designees, either Party
may refer such dispute to binding arbitration or the courts to be conducted as set forth in this Section 18.18 and Section 18.6, respectively. 

(b) Binding Arbitration. Except in the event of alleged breach or default by a Party or lack of diligence by a bankrupt or insolvent
Party, and except as set forth in Section 18.18(k), the Parties agree that any such dispute that arises in connection with this Agreement and which cannot be amicably resolved by the Parties in accordance with Section 18.18(a) shall be
resolved by binding arbitration as set forth in this Section, conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association (AAA) by three (3) arbitrators. 

(c) Written Notice. If a Party intends to begin an arbitration to resolve a dispute, such Party shall provide written notice to the
other Party informing the other Party of such intention and the issues to be resolved. Within twenty (20) business days after its receipt of such notice, the other Party may, by written notice to the Party initiating arbitration, add additional
issues to be resolved. 
 (d) Selection of Arbitrators. Within forty-five (45) days
following the receipt of the notice of arbitration, the Parties shall agree on the arbitrators, or if the Parties are unable to 

  
 63 

 
agree the arbitrators shall be selected as provided in the AAA Commercial Arbitration Rules. The arbitrators shall not be employees, directors or shareholders of either Party or of an Affiliate
and shall be selected in accordance with AAA rules. Where applicable, the arbitrators shall be independent experts in pharmaceutical product development (including clinical development and regulatory affairs) in the U.S., Japan and Europe. 

(e) Hearings. The arbitrators shall conduct one or more hearings to allow the Parties to present their positions regarding the dispute.

 (i) Discovery. The arbitrators shall determine what discovery will be permitted, consistent with the goal of limiting the cost and
time that the Parties must expend for discovery; provided the arbitrators shall permit such discovery as they deem necessary to permit an equitable resolution of the dispute. Any written evidence originally in a language other than English shall be
submitted in English translation accompanied by the original or a true copy thereof. The arbitrators shall have sole discretion with regard to the admissibility of any evidence. 

(ii) Proposed Ruling. At least ten (10) business days prior to a hearing, each Party must submit to the arbitrators and serve on
the other Party a proposed ruling on each issue to be resolved. Such writings shall be limited to not more than fifty (50) pages. 

(iii) Time; Testimony. Each Party shall be entitled to no more than five (5) days of hearing to present testimony or documentary
evidence. Such time limitation shall include any direct, cross or rebuttal testimony, but such time limitation shall only be charged against the Party conducting such direct, cross or rebuttal testimony. It shall be the responsibility of the
arbitrators to determine whether the Parties have had the five (5) days to which each is entitled. 
 (iv) Representation by an
Attorney. Each Party shall have the right to be represented by counsel. 
 (v) Location. The arbitration shall take place in
Philadelphia, Pennsylvania. 
 (f) Costs. The costs of the arbitration, including administrative and arbitrator fees, shall be shared
equally by the Parties. Each Party shall bear its own costs and attorney and witness fees. 
 (g) Written Decision. The arbitrators
shall render a written decision with their resolution of the dispute. The decision of the arbitrators shall be final and not subject to appeal and binding on the Parties hereto. 

(h) Remedy. A disputed performance or suspended performances pending the resolution of the arbitration must be completed within thirty
(30) days following the final decision of the arbitrators or such other reasonable period as the arbitrators determine in a written opinion. 

  
 64 

 (i) Final Decision Within Six Months. Each arbitrator selected in accordance with
Section 18.18(d) shall be required to acknowledge his or her intention to meet the Parties’ desire that a final decision be issued with respect to a dispute within six (6) months from the filing of notice of a request for such
arbitration. 
 (j) Equitable Relief. Notwithstanding anything in this Section 18.18, each Party shall have the right to seek
injunctive or other equitable relief from a court of competent jurisdiction that may be necessary to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration. 

(k) Intellectual Property. Disputes regarding the validity, scope or enforceability of intellectual property rights shall not be
subject to arbitration pursuant to this Section 18.18 but instead shall be submitted to a court of competent jurisdiction. 
 18.19
No Trademark Rights. Except as provided herein, no right, express or implied, is granted by this Agreement to use in any manner the name “Ambit,” “Cephalon” or any other trade name or trademark of the other Party or its
Affiliates in connection with performance of this Agreement. 
 18.20 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and may be executed through the use of facsimiles. 

18.21 Taxes. Any tax paid or required to be withheld by a party (the payor) for the benefit of the other party (the payee) on account
of payment payable under this Agreement shall be deducted from the amount of such payment otherwise due. The payor shall secure and send to the payee proof of any such taxes withheld and paid for its benefit of and shall, at the request of payee,
provide reasonable assistance to payee in recovering said taxes. 
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized representatives as of the Effective Date. 
  

									
	CEPHALON, INC.				AMBIT BIOSCIENCES CORPORATION
					
	By:		 /s/ Jeffrey L. Vaught, Ph.D.
				By:		 /s/ Scott Salka

	Name:		Jeffry L. Vaught, Ph.D.				Name:		Scott Salka
	Title:		 Executive Vice President
 Research &
Development
				Title:		CEO
					
	Date:		November 3, 2006				Date:		November 7, 2006

  
 65 

 SCHEDULE A 

AMBIT [***] TARGETS 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

For clarification, it is understood that Ambit will be allowed to optimize inhibitors against [***] which may also be active inhibitors of [***], and [***].

 For clarification, it is understood that Ambit will be allowed to optimize inhibitors of [***] which may also be active inhibitors of [***], [***], and
[***]. 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

66 

 SCHEDULE B 

CEPHALON EXCLUSIVE TARGETS 

[***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

[***] 
 [***] 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

67 

 ATTACHMENT A 

APPLICABLE PROFILING SERVICES AGREEMENT PROVISIONS 

The Parties agree that the following provisions of the Profiling Services Agreement shall apply with respect to Ambit’s profiling of any compounds under
this Agreement, as if such terms were set forth in this Agreement: 
 Sections 2.2.1, 2.3 (excluding any reference to Table 1), 2.5 (last two sentences, to
be consistent with the terms of this Agreement), 2.7, 2.8, 2.9 (as applicable), 2.10, 6.2, 6.3, 6.5, 6.6, 6.7 and 6.9, and paragraphs D of Exhibit A. 
 For
the avoidance of doubt, the foregoing provisions shall not apply to any activities under this Agreement other than the profiling activities to be performed by Ambit hereunder. 

  
 68 

 AMENDMENT NO. 1 TO COLLABORATION AGREEMENT 

This Amendment No. 1 to Collaboration Agreement (the “Amendment”) is made as of April 14, 2009 (the “Amendment
Effective Date”) to amend that certain Collaboration Agreement dated as of November 3, 2006 (the “Agreement”) by and between Cephalon, Inc., a Delaware corporation with its principal place of business located at 41 Moores Road,
Frazer, Pennsylvania 19355 (“Cephalon”), and Ambit Biosciences Corporation, a Delaware corporation, having a principal place of business at 4215 Sorrento Valley Road, San Diego, California 92121 (“Ambit,” together with Cephalon,
the “Parties”). 
 WITNESSETH: 

WHEREAS, pursuant to the Agreement, the Parties are collaborating on two drug discovery programs directed at the First Collaboration Target
and the Second Collaboration Target (“b-raf Program” and “Axl Program,” respectively); 

WHEREAS, the research activity with respect to the Axl Program may not be completed by the end of the Initial Term; 

WHEREAS, the Parties wish to clarify their respective activities and obligations with respect to the Axl Program and other matters related to
the Collaboration during and after the expiration of the Initial Term. 
 NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which is hereby affirmed, the Parties hereby agree to the following terms and conditions: 
  

	1.	Definitions. 

  

	 	(a)	“Program Obligations” means (i) Ambit’s continued use of Commercially Reasonable Efforts to execute activity under the Research Plan from the Amendment Effective Date through the expiration of the
Initial Term; and, (ii) full achievement of the criteria as defined by the JRC and described in Paragraphs 1, 2 and 3 in Schedule B (attached hereto) for a Lead Axl Inhibitor prior to the expiration of the Initial Term. 

 

	 	(b)	“Research Plan” means the activities necessary to achieve the desired target profile for an optimized Axl kinase inhibitor, suitable for nomination as a Collaboration Clinical Candidate, attached hereto as
Schedule A. 

  

	 	(c)	All other capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Agreement. 

  

	2.	Continuation of the Axl Program; Payments to Ambit. 

  

	 	(a)	Upon expiration of the Initial Term, in the event that a Collaboration Clinical Candidate has not been identified in the Axl Program and an extension to the Agreement has not been agreed upon in writing by the Parties,

  
 69 

	 	(i)	if Ambit has fulfilled the Program Obligations Cephalon shall continue research activity under the Research Plan and Ambit shall be entitled to receive milestone payments in accordance with Section 8.3 of the
Agreement (the “Milestone Payments”) and royalties in accordance with Article IX of the Agreement (the “Royalties”), each of which such provisions shall be deemed to have survived the expiration of the Agreement, solely with
respect to a Collaboration Compound, the primary mode of action of which is inhibition of the Axl kinase; or 

  

	 	(ii)	if Ambit has not fulfilled the Program Obligations, Cephalon shall be entitled to, and at Cephalon’s sole election Cephalon shall have, the exclusive right to continue research activity under the Research Plan, and
Ambit shall not be entitled to receive any Milestone Payments or Royalties from Cephalon. 

  

	 	(b)	Upon Cephalon’s assumption of control of the Axl Program, 

  

	 	(i)	in addition to any other action required of Ambit under Article VI of the Agreement, Ambit shall cooperate with Cephalon to complete a transfer of any and all technology and
know-how necessary, in Cephalon’s sole discretion, to enable Cephalon to continue research activity under the Research Plan and develop a Collaboration Clinical Candidate; 

 

	 	(ii)	Cephalon shall undertake Commercially Reasonable Efforts to continue research activity under the Research Plan and attempt to achieve a Collaboration Clinical Candidate; 

 

	 	(iii)	Cephalon shall provide to Ambit, no less frequently than quarterly, in-person or telephonic updates on the progress of Cephalon’s research activity under the Research Plan;
and 

  

	 	(iv)	the prosecution rights provided in Section 11.2.4(a) of the Agreement shall apply to Collaboration IP relating to the Axl Program. 

 

	3.	 Additional Rights and Obligations With Respect to the Axl Program. Notwithstanding the foregoing, Cephalon may, in its sole discretion, cease
its research activity with respect to the Axl Program for any or no reason and at any time. In such event, or in the event Cephalon does not exercise its right under Section 2(a)(ii) above, Cephalon shall notify Ambit in writing that Cephalon
is not pursuing the Axl Program (the “Cephalon Notice”). Ambit may thereafter elect to assume control of the Axl Program by providing written notice thereof to Cephalon within fifteen (15) days of Ambit’s receipt of the Cephalon
Notice. Upon receipt of notice from Ambit, Cephalon shall cooperate with Ambit to complete a transfer of any and all technology and know-how necessary, in Cephalon’s sole discretion, to enable Ambit to
undertake the activities required under the Research Plan and develop a Collaboration Clinical Candidate. If Ambit assumes control of the Axl Program in accordance herewith, (a) Ambit shall undertake Commercially Reasonable Efforts to continue
research activity under the Research Plan and attempt to achieve a 

  
 70 

	 	
Collaboration Clinical Candidate, and Ambit shall be responsible for any and all development and commercialization activities associated therewith, and (b) Cephalon shall be entitled to
receive from Ambit the Milestone Payments and Royalties described in Section 8.3 and Article IX of the Agreement, respectively, each of which such provisions shall be deemed to have survived the expiration of the Agreement. 

 

	4.	Designation of Collaboration Clinical Candidate. After expiration of the Initial Term, (a) the designation of a Collaboration Clinical Candidate for the Axl Program shall be the sole responsibility of
Cephalon, and (b) all references to the “JRC” in the Agreement shall be deemed to refer to Cephalon. Cephalon shall notify Ambit in writing within fifteen (15) days of the designation of a Collaboration Clinical Candidate
hereunder. 

  

	5.	Miscellaneous. Except as modified herein, all applicable terms and conditions of the Agreement shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and the terms
of this Amendment, the terms of this Amendment shall control. In addition to the provisions listed in Section 16.6 of the Agreement, Article I and Section 6.4 (solely with respect to Cephalon upon its assumption of control of the Axl
Program) of the Agreement and the terms of this Amendment shall survive the expiration or termination of the Agreement. 

  
 71 

 IN WITNESS THEREOF, the Parties have executed this Amendment by their duly authorized
representatives as of the day and year first written above. 
  

									
	AMBIT BIOSCIENCES				CEPHALON, INC.
					
	By:		 /s/ Christopher J. Morl
				By:		 /s/ Jeffrey L. Vaught, Ph.D.

	Name:		Christopher J. Morl				Name:		Jeffry L. Vaught, Ph.D.
	Title:		Chief Business Officer				Title:		CSO & Executive VP, R&D

  
 72 

 Schedule A 

Clinical Candidate Profile 

Objectives of AXL-Optimized Kinase Inhibitor 

 

			
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
		
	[***]		[***]
	[***]		[***]
		
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
		
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
		
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
	[***]		[***]
		
	[***]		
	[***]		[***]
		
	[***]		

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

73 

			
	[***]		[***]
	[***]		[***]
	[***]		[***]

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

74 

 Schedule B 

Lead Axl Kinase Inhibitor Criteria 
 [***] 
 [***] 

[***] 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

75EX-10.7

 Exhibit 10.7 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE
OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 

DATED                        
                                         
                                         
                                         
         JANUARY 20, 2014 
 (1) CANCER RESEARCH TECHNOLOGY LIMITED 

AND 
 (2) TEVA BRANDED
PHARMACEUTICAL PRODUCTS R&D, INC. 
  

 
 Licence

  
  

 TABLE OF CONTENTS 
  

							
			
	1.		INTERPRETATION		 	1	  
			
	2.		LICENCES AND NON-COMPETE		 	11	  
			
	3.		PERFORMANCE		 	13	  
			
	4.		CONSIDERATION		 	15	  
			
	5.		PAYMENT AND STATEMENT		 	16	  
			
	6.		ACCOUNTS		 	19	  
			
	7.		INTELLECTUAL PROPERTY PROTECTION, PROCEEDINGS AND COSTS		 	20	  
			
	8.		WARRANTY		 	23	  
			
	9.		INDEMNITY		 	24	  
			
	10.		INSURANCE		 	25	  
			
	11.		LIMITATION OF LIABILITY		 	25	  
			
	12.		CONFIDENTIALITY		 	25	  
			
	13.		TERM AND TERMINATION		 	28	  
			
	14.		EFFECTS OF TERMINATION		 	29	  
			
	15.		FORCE MAJEURE		 	32	  
			
	16.		ASSIGNMENT AND SUB-CONTRACTING		 	32	  
			
	17.		NOTICES		 	33	  
			
	18.		VARIATION		 	34	  
			
	19.		ENTIRE AGREEMENT		 	34	  
			
	20.		FURTHER ASSURANCE		 	34	  
			
	21.		WAIVER		 	35	  
			
	22.		SEVERABILITY		 	35	  
			
	23.		EXECUTION		 	35	  
			
	24.		ANNOUNCEMENTS AND USE OF NAMES		 	35	  
			
	25.		DISPUTE RESOLUTION AND GOVERNING LAW		 	36	  
			
	26.		CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999		 	37	  
			
	27.		RELATIONSHIP OF THE PARTIES		 	37	  
			
	28.		TAX AND COMPLIANCE WITH LAWS		 	37	  

  
 1 

 THIS AGREEMENT is made the Twentieth day of January, 2014 

BETWEEN: 
  

	(1)	CANCER RESEARCH TECHNOLOGY LIMITED, a company registered in England and Wales under number 1626049 with registered office at Angel Building, 407 St John Street, London, EC1V 4AD, England (“CRT”);
and 

  

	(2)	TEVA BRANDED PHARMACEUTICAL PRODUCTS R&D, INC., a Delaware corporation with its principal place of business at 41 Moores Road, Frazer, PA 19355, U.S.A. (“Teva”). 

WHEREAS: 
  

	(A)	CRT is an oncology focused technology transfer and development company, which is wholly owned by the Charity (as defined below). 

 

	(B)	Teva is an international biopharmaceutical company. 

  

	(C)	CRT and Cephalon, Inc., an Affiliate (as defined below) of Teva (“Cephalon”), signed a Research Collaboration and Option Agreement on February 16, 2010 (the “RCOA”) pursuant to
which they have been conducting a programme of drug discovery research in relation to the atypical Protein Kinase C (aPKC) family of kinases. 

  

	(D)	Pursuant to the exercise by Cephalon of the Option (as defined in the RCOA), Teva and CRT have agreed to enter into a licence on the following terms and conditions. 

NOW IT IS HEREBY AGREED as follows: 
  

	1.	INTERPRETATION 

  

	1.1	In this Agreement except where the context requires otherwise, the following words and expressions shall have the following meanings: 

“Affiliate” means any corporation or business entity Controlling, Controlled by or under common Control with a Party to this
Agreement; 
 “Affordable” means in relation to a Licensed Product: (i) a determination by NICE that such Licensed
Product should be used within the NHS; and/or (ii) approval by NICE of the price proposed by Teva or its Sub-Licensee in relation to sales of that Licensed Product in England; 

“Agreement” means this agreement and each of the Schedules as amended from time to time in accordance with Clause 18; 

“Annual Fee” means the non-refundable sum of [***]; 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

1 

 “Arising Intellectual Property” means any Materials and Know How (other than
that comprised in Licensed Intellectual Property) conceived or generated after the Effective Date by or on behalf of Teva or its Sub-Licensees in the course of the activities performed under the licence granted under Clause 2.1; and any Patent
Rights which claim any such Materials or inventions comprised in such Know How; 
 “Biomarker” means an endogenous
characteristic that is objectively measured and evaluated as an indicator of normal biological or pathogenic processes or pharmacological responses to a therapeutic intervention. For the avoidance of doubt, a Biomarker is not a synthetic chemical;

 “Business Day” means a day other than a (i) Friday, Saturday or Sunday for Teva, (ii) a Saturday or Sunday for
CRT, or (iii) any public holiday in England, New York, NY and/or Tel Aviv, Israel or any other day when the general operations of a Party are closed; 

“Charity” means Cancer Research UK, a company limited by guarantee (registered in England under number 4325234) and a charity
(registered in England under number 1089464) of Angel Building, 407 St John Street, London, EC1V 4AD, England; 

“Commencement” means, in relation to a clinical trial, the administration of a Licensed Product to the first human subject has
occurred, whether such subject is a healthy volunteer or a patient; 
 “Commercially Reasonable Efforts” means, (i) in
the case of Teva, the efforts and resources commonly used by a global pharmaceutical company of a similar size and resources to Teva (or, where applicable, its Sub-Licensee) for a product at a similar stage of development and commercial potential,
with the objective of developing such product in a diligent and timely manner, taking into consideration its safety, efficacy and the patent or other proprietary position, and (ii) in the case of CRT, the efforts and resources commonly used by
an entity of similar size and resource to CRT for a project at a similar stage in its development taking into account all relevant commercial factors; 

“Competent Authority” means any local or national agency, court, authority, department, inspectorate, minister,
ministry official or public or statutory person (whether autonomous or not) of, or of any government of, any country having jurisdiction over the Agreement or either of the Parties or over the development or marketing of medicinal products
including, the European Commission and the European Court of Justice; 
 “Confidential Information” means any information,
in tangible or non-tangible form (including oral disclosure) including Know How, research and development plans, the terms of this Agreement, and any other technical or business information (whether or not marked as confidential), which is obtained
by either Party from the other (or its representatives) pursuant to this Agreement. Licensed Know How shall be deemed the Confidential Information of each Party; 

  
 2 

 “Control” means, in respect to either Party, the possession (directly or
indirectly) of fifty per cent (50%) or more of the voting stock or other equity interest of a subject entity with the power to vote, or the power in fact to control the management decisions of such entity through the ownership of securities or
by contract or otherwise and “Controlling” and “Controlled by” shall be construed accordingly; 

“CRT Existing Intellectual Property” has the meaning given in the RCOA; 

“CRT Exclusivity Period” has the meaning given in Clause 2; 

“CRT-DL” means CRT’s in-house drug discovery research laboratories, currently known as the ‘Discovery
Laboratories’ and operating across sites in London and Cambridge. The CRT-DL shall not include any research facilities of a person other than CRT; 

“Development Plan” means a detailed plan which describes: (i) the Significant Activities; (ii) the relevant
timescales within which such Significant Activities will be taken; and (iii) the estimated costs associated with each Significant Activity. Such plan will reflect best industry practice and describe the development of Licensed Products across a
range of Oncology Indications (as agreed with CRT taking into consideration any safety/efficacy constraints). The Development Plan at the Effective Date is annexed at Schedule 5 and shall be updated by Teva in accordance with Clause 3.6.4; 

“Effective Date” means the date this Agreement is made; 

“Executive Officers” means the Chief Scientific Officer of Teva, and the Chief Executive Officer of CRT or such other
authorised officer of a Party as may be substituted from time to time upon the giving of written notice to the other Party; 

“Exclusive Arising Intellectual Property” has the meaning given in Clause 14.1.6(c); 

“Exclusive Licensed Intellectual Property” means all Licensed Intellectual Property comprising or specifically relating to
Pre-Clinical Candidates (including any Licensed Patents claiming such Pre-Clinical Candidates, but excluding any claims to Biomarkers); 

“Expenses” means all reasonable and customary costs and expenses incurred from time to time by or on behalf of CRT in
protecting and commercialising any Teva Existing Compounds and Programme Intellectual Property, including without limitation: 
  

	 	i.	all Patent Costs; and 

  

	 	ii.	any non-recoverable taxes or charges including Value Added Tax which may be imposed; 

“Expert” means (a) in relation to disputes pursuant to Clauses 3.7 and 14.2.6, a suitably qualified independent
expert having expertise with the subject matter of the dispute and at least fifteen years of experience in the pharmaceutical and/or biotech industries, and appointed by agreement between the Parties, or if the Parties are unable to reach agreement
within twenty one (21) days of either Party seeking in writing to the other to appoint an expert, each Party shall submit two (2) names having the aforementioned expert qualifications 

  
 3 

 
to the President for the time being of the Association of the British Pharmaceutical Industry who shall be asked to select an individual from the four (4) names submitted; and (b) in
relation to a dispute concerning Sub-Licence Revenue, or pursuant to Clause 6.3, a suitable qualified accountant having at least fifteen years of experience in the pharmaceutical and/or biotech industries, and appointed by agreement between the
Parties, or if the Parties are unable to reach agreement within twenty one (21) days of either Party seeking in writing to the other to appoint an expert, each Party shall submit two (2) names having the aforementioned expert
qualifications to the President for the time being of Institute of Chartered Accountants in England & Wales who shall be asked to select an individual from the four (4) names submitted; 

“Field” means the treatment of human diseases; 

“First Commercial Sale” means, with respect to a Licensed Product, the first transfer or disposition to a third party of such
Licensed Product for which the corresponding consideration has been invoiced by Teva, any of its Affiliates or a Sub-Licensee, after all relevant Regulatory Authorisations for the transfer or disposition of such Licensed Product have been obtained
in respect of the relevant region or country; 
 “Force Majeure” means in relation to either Party any event or circumstance
which is beyond the reasonable control of that Party, which event or circumstance that Party could not reasonably be expected to have taken into account at the Effective Date and which results in or causes the failure of that Party to perform any or
all of its obligations under this Agreement including act of God, lightning, fire, storm, flood, earthquake, strike, lockout or other industrial disturbance, war, terrorist act, blockade, revolution, riot, insurrection, civil commotion, public
demonstration, sabotage, act of vandalism, explosion, provided that lack of funds shall not be interpreted as a cause beyond the reasonable control of that Party; 

“IND” means an investigational new drug application filed with the United States Food and Drug Administration or any successor
to it, or the equivalent application or filing filed with any equivalent Competent Authority outside the United States of America (including any supranational agency such as the European Medicines Agency) necessary to commence human clinical trials
in such jurisdiction; 
 “Indication” means a disease classification as defined within the ‘International Statistical
Classification of Diseases and Related Health Problems’ as published from time to time by the World Health Organization (e.g. “C50 Malignant neoplasm of Breast”, “C92 Myeloid leukaemia”, “B20 Human immunodeficiency
virus [HIV] disease resulting in infectious and parasitic diseases” and “M34 Systemic sclerosis”); 
 “Intellectual
Property” means Materials, Patents and Know How; 
 “Know How” means technical and other information which is not
in the public domain including, ideas, concepts, inventions, discoveries, data, formulae, algorithms, specifications, 

  
 4 

 
information relating to Materials (including biological and chemical structures and functions as well as methods for synthesising chemical compounds), procedures for experiments and tests,
results of experimentation and testing, results of research and development including laboratory records and data analyses. Information in a compilation or a compilation of information may be Know How notwithstanding some or all of its individual
elements are in the public domain; 
 “Licensed Intellectual Property” means the Licensed Know How, Licensed Patents and
Licensed Materials; 
 “Licensed Know How” means all Know How comprised in CRT Existing Intellectual Property and Programme
Intellectual Property, including the Know How described in Schedule 2; 
 “Licensed Materials” means all Materials comprised
in CRT Existing Intellectual Property and Programme Intellectual Property, including the Materials described in Schedule 3; 

“Licensed Patents” means: (i) the Patents detailed in Schedule 1; (ii) any Patents filed on or after the
Effective Date claiming any part of the Licensed Materials and/or any inventions described or comprised within the Licensed Know How; and (iii) any Patents claiming priority from the Patents described in (i) and (ii); 

“Licensed Products” means any product: (i) which falls within the scope of one or more Valid Claims of any of the
Licensed Patents in the relevant country or territory; and/or (ii) developed using or incorporating any part of the Licensed Intellectual Property, including any metabolites, prodrugs, salts, polymorphs, isomers, analogues and derivatives of
any Pre-Clinical Candidates which are developed by or on behalf of Teva or its Sub-Licensees; 
 “Major Markets” means [***]; 
 “Materials” means any chemical or biological materials including any:
organic or inorganic element or compound; nucleotide or nucleotide sequence including DNA and RNA sequences; gene; vector or construct including plasmids, phages, bacterial vectors, bacteriophages and viruses; host organism including bacteria,
fungi, algae, protozoa and hybridomas; eukaryotic or prokaryotic cell line or expression system or any development strain or product of that cell line or expression systems; protein including any peptide or amino acid sequence, enzyme, antibody or
protein conferring targeting properties and any fragment of a protein or a peptide enzyme or antibody; drug or pro-drug; assay or reagent; any other genetic or biological material or micro-organism or any transgenic animal; and any physical property
rights relating to any of the foregoing; 
 “Milestone Events” has the meaning given in Clause 4.3; 

“Milestone Payments” has the meaning given in Clause 4.3; 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

5 

 “NDA” means an application for approval to market commercially such as (or any
successor process to) the New Drug Application filed pursuant to the requirements of the United States Food and Drug Administration (or any successor body), as more fully defined in 21 CFR.§ 314.3 et seq, or a Biologics License Application
filed pursuant to the requirements of the United States Food and Drug Administration (or any successor body), as more fully defined in 21 CFR § 601, or any equivalent or similar application filed with any other Competent Authority in any
country or region in the Territory, together, in each case, with all additions, deletions or supplements thereto; 
 “Net
Revenue” means the aggregate sums received by CRT in respect of any commercial exploitation of a Licensed Product, after the deduction of all Expenses; 

“Net Sales” for any given period means the gross aggregate amount invoiced on account of sales of Licensed Product by Teva or
any of its Affiliates or Sub-Licensees in the Territory (but not including sales between Teva, its Affiliates or Sub-Licensees where the Licensed Product is intended for resale) less the following deductions directly relating to such sales of
Licensed Product, each to the extent actually incurred based on such sale, all determined in accordance with the standard practices of Teva and its Affiliates for their other pharmaceutical products, consistently applied. At CRT’s request, Teva
shall explain to CRT such standard practices and shall respond promptly to any questions CRT poses in connection therewith: 
  

	 	a)	cash discounts given off the invoiced price and, with respect to sales in the U.S., a standard [***] discount solely to the extent that the standard U.S. discount
forms part of the standard practices of Teva and its Affiliates for their other pharmaceutical products and is actually and consistently applied; 

  

	 	b)	reasonable estimates for rebates, price reductions, coupons, vouchers, and co-pay assistance reimbursements given in the ordinary course of business which are not already reflected in the amount invoiced;

  

	 	c)	reasonable estimates for any adjustments, credits or allowances on account of price adjustments, billing errors, shelf stock adjustments and discounts to price, such as promotional payments, howsoever referred to by the
relevant customer; 

  

	 	d)	reasonable estimates for rejected goods, damaged goods and returns, withdrawal, recall or relabeling of the Licensed Product; 

  

	 	e)	 reasonable estimates for credits, volume rebates, charge-back and prime vendor rebates, fees, reimbursements or similar payments granted or given to
wholesalers and other distributors, buying groups, health care insurance carriers, pharmacy benefit 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

6 

	 	
management companies, health maintenance organisations or other institutions or health care organisations, which are not already reflected in the amount invoiced; 

 

	 	f)	any tax associated with the manufacture, transport or sale of goods such as VAT, sales tax, tariff, customs duty, excise, goods and services tax (GST), or other duty or other governmental charge (other than a tax on
income) levied on the manufacture, transport or sale of Licensed Products, including without limitation any arising out of the Patient Protection and Affordable Care Act as applicable only to the Licensed Product; 

 

	 	g)	transportation or delivery of the Licensed Product and borne by the seller thereof, itemised on the applicable invoice and remitted to the applicable taxing authority; 

 

	 	h)	reasonable estimates for payments or rebates paid in connection with sales of the Licensed Product to any Competent Authority in respect of any state or federal Medicare, Medicaid or similar programs, or other managed
care programs, which are not already reflected in the amount invoiced; and 

  

	 	i)	any invoiced charge for freight, insurance or other transportation costs charged to the customer, in each case only when separately shown on the invoice. 

Reconciliation of estimated amounts and actual amounts will occur in accordance with Clause 5.3. Without limiting the generality of the
foregoing, sales, transfers, or dispositions of Licensed Product for charitable, promotional (including samples), pre-clinical, clinical, or regulatory purposes will be excluded from Net Sales; 

“NHS” the National Health Service in England and Wales (or any successor organisation thereto); 

“NICE” means the National Institute for Health and Clinical Excellence in England and Wales (or any successor organisation
thereto). In the event that the National Institute for Health and Clinical Excellence ceases to exist without a successor, then NICE shall be construed as any supra-national, national or regional government department, authority, agency or entity
(including a non-departmental public body or similar entity) with responsibility for evaluating the cost effectiveness of medicinal products in England or otherwise determining whether the NHS should purchase medicinal products; 

“Non-Exclusive Licensed Intellectual Property” means all Licensed Intellectual Property other than Exclusive Licensed
Intellectual Property. Non-Exclusive Licensed Intellectual Property includes all Research Tools and Biomarkers; 
 “Oncology
Indication” means an Indication in the range [***]; 

“Parties” means CRT and Teva and “Party” shall mean any of them; 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

7 

 “Patent Costs” means any reasonable costs and expenses incurred in filing,
prosecuting, maintaining, defending and enforcing the Licensed Patents, including official filing, prosecution, maintenance and renewal fees, patent attorney, legal and other professional fees and expenses and costs and expenses associated with an
opposition or interference action; 
 “Patent Lead” means an individual employed or otherwise appointed by each Party to
review and consider all matters relating to the filing and prosecution of Programme Patents; 
 “Patents” means any patent
applications, patents, author certificates, inventor certificates, utility models, and all foreign counterparts of them and includes all divisionals, renewals, continuations, continuations-in-part, extensions, reissues, substitutions, confirmations,
registrations, revalidations and additions of or to them, as well as any Supplementary Protection Certificate, or any like form of protection (including any pediatric, orphan drug or other exclusivity granted by a Competent Authority beyond the
expiry of the original patent expiration date); 
 “Phase I Trial” means a clinical trial in which a Licensed Product is
administered to human subjects at multiple dose levels with the primary purpose of determining safety, metabolism, and pharmacokinetic and pharmacodynamic properties of the Licensed Product, and consistent with 21 CFR § 312.21(a); 

“Phase II Trial” means a clinical trial of a Licensed Product in human patients, the principal purposes of which are to make a
preliminary determination that the Licensed Product is safe for its intended use, to determine its optimal dose, and to obtain sufficient information about the Licensed Product’s efficacy to permit the design of Phase III Trials, and consistent
with 21 CFR 312.21(b); 
 “Phase III Trial” means a human clinical trial of a Licensed Product, which trial is designed:
(a) to establish that the Licensed Product is safe and efficacious for its intended use; (b) to define warnings, precautions and adverse reactions that are associated with the Licensed Product in the dosage range to be prescribed; and
(c) consistent with 21 CFR § 312.21(c). Any Phase II Trial that is adapted to be a larger scale trial and intended as a pivotal trial for the purpose of obtaining Regulatory Authorisation of a Licensed Product, shall be deemed a Phase III
Trial; 
 “Pre-Clinical Candidate” has the meaning given in the RCOA. For clarity, certain Pre-Clinical Candidates
identified prior to the Effective Date have been listed in Schedule 3 Part A which may be updated from time to time in accordance with Clause 7.13; 

“Price Approvals” means, in those countries in the Territory where a Competent Authority may approve or determine pricing
and/or pricing reimbursement for pharmaceutical products, such approval or determination; 
 “Programme Intellectual
Property” has the meaning given in the RCOA; 

  
 8 

 “Progress Report” means a detailed written report produced by Teva in respect
of: (i) the progress of development of Licensed Products against the current Development Plan; (ii) the progress of any applications for Regulatory Authorisation and (where relevant) Price Approvals; and (iii) the progress of and
plans for marketing and sale of Licensed Products; 
 “Quarter” means any of the three-monthly periods commencing on
the first day of any of the months of January, April, July, and October in any year and “Quarterly” has a corresponding meaning; 

“Regulatory Authorisations” means all authorisations, approvals, clearances, and licences of a Competent Authority
(including an NDA) that may be required in any country of the Territory prior to commercial sale of the relevant Licensed Product in the Field, including any necessary variations thereto, but excluding any Price Approvals; 

“Research Tool” has the meaning given in the RCOA. For clarity, certain Research Tools identified prior to the Effective Date
have been listed in Schedule 3 Part B; 
 “Signature Fee” means the non-refundable sum of [***]; 
 “Significant Activity” means any of the following in relation to a
Pre-Clinical Candidate or Licensed Product: 
  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	[***]; 

  

	 	(d)	[***]; 

  

	 	(e)	[***]; 

  

	 	(f)	[***]; 

  

	 	(g)	[***]; and 

  

	 	(h)	[***]. 

 Notwithstanding the foregoing, any activities set forth in (a) through
(h) above, that normally would be related to an earlier phase of development and/or commercialisation, shall not be considered “Significant Activity” once development of the applicable Pre-Clinical Candidate or Licensed Product has
progressed beyond such earlier phase for a particular Indication, as evidenced by the performance of any activity that normally would be considered to be related to any later phase for such Indication, provided always that to the extent that a Party
can reasonably demonstrate that activities relating to an earlier phase of development are reasonably necessary, then such activities shall be considered “Significant Activity”; 

“Sub-Licensee” means a person to whom a sub-licence is granted in accordance with Clause 2.5 in respect of the whole or
any part of the rights granted under this Agreement; 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

9 

 “Sub-Licence Revenue” means any monies or non-monetary consideration (including
securities) receivable from time to time by Teva in respect of any sub-licence granted by Teva under this Agreement or in consideration of the grant of the right to acquire such a sub-licence, including option fees, licence issue fees or other
up-front payments, annual licence fees, milestone or other lump sum payments which are attributable to the grant of the rights in question or any other sums that Teva may realise from the launch of a Licensed Product (including any prize or other
award made by a Competent Authority), but excluding royalties as referred to in Clause 4.5. In the case of non-monetary Sub-Licence Revenue, the value shall be assessed at the date of receipt of the same by Teva, and in the absence of agreement by
the Parties, the value shall be determined by the Expert; 
 “Supplementary Protection Certificate” means a right based on a
patent pursuant to which the holder of the right is entitled to exclude third parties from using, making, having made, selling or otherwise disposing or offering to dispose of, importing or keeping the product to which the right relates, such as
supplementary protection certificates in Europe, and any similar right anywhere in the world; 
 “Term” means the term of
this Agreement determined in accordance with Clause 13.1; 
 “Territory” means worldwide; 

“Teva Existing Compound” has the meaning given in the RCOA; 

“Teva Existing Intellectual Property” has the meaning given in the RCOA; 

“Third Party Service Provider” means an entity other than an Affiliate of Teva which provides research and development
services to Teva, including contract research organisations, universities and hospitals; 
 “Tobacco Party” means:
(i) any person who develops, sells or manufactures tobacco products; and/ or (ii) any person which makes the majority of its profits from the importation, marketing, sale or disposal of tobacco products. Furthermore, Tobacco Party shall
include any person that is Controlled by or under common Control with any of the persons referred to in (i) and/or (ii); 

“Valid Claim” means a claim of any Licensed Patent which has not expired, been withdrawn, abandoned or surrendered or
been refused, revoked or held invalid in an unappealed or unappealable final decision rendered by a court or other governmental agency of competent jurisdiction in the relevant country or territory; and 

“Year” means a calendar year. 
  

	1.2	In this Agreement: 

  

	 	1.2.1	unless the context requires otherwise, all references to a particular Clause, paragraph or Schedule shall be references to that clause, paragraph or schedule, in or to this Agreement; 

  
 10 

	 	1.2.2	the table of contents and headings are inserted for convenience only and shall be ignored in construing this Agreement; 

  

	 	1.2.3	unless the contrary intention appears, words importing the masculine gender shall include the feminine and vice versa and words in the singular include the plural and vice versa; 

 

	 	1.2.4	unless the contrary intention appears, words denoting persons shall include any individual, partnership, company, corporation, joint venture, trust association, organisation or other entity, in each case whether
or not having separate legal personality; and 

  

	 	1.2.5	references to the words “include” or “including” shall be construed without limitation to the generality of the preceding words. 

 

	2.	LICENCES AND NON-COMPETE 

  

	2.1	Subject to the provisions of this Agreement, CRT hereby grants Teva (and, to the extent it is a co-owner, Teva consents to such grant), a licence under the Licensed Intellectual Property to research, develop,
use, keep, make, have made, import, sell and otherwise dispose of Licensed Products in the Field in the Territory for the Term. Such licence shall be exclusive in respect of Exclusive Licensed Intellectual Property and non-exclusive in respect of
Non-Exclusive Licensed Intellectual Property. 

  

	2.2	CRT agrees not to grant any rights in respect of Biomarkers comprised with the Non-Exclusive Licensed Intellectual Property (“Licensed Biomarkers”) to any third party for use in a country in
connection with a product which falls within the scope of one or more Valid Claims of any of the Licensed Patents in that country. For the avoidance of doubt, CRT shall be entitled to grant rights in respect of Licensed Biomarkers to a third party
for use in connection with products which do not fall within the scope of one or more Valid Claims of any of the Licensed Patents. 

  

	2.3	No licence to use any Patents, Know How or Materials is granted or implied except the rights expressly granted in this Agreement. 

 

	2.4	Subject to Clause 2.8, Teva hereby grants CRT (and CRT consents to such grant) a non-exclusive, fully paid up, sub-licensable, perpetual, irrevocable, worldwide, licence to use: 

 

	 	2.4.1	subject to Clause 2.2, the Non-Exclusive Licensed Intellectual Property for all purposes; and 

  

	 	2.4.2	the Exclusive Licensed Intellectual Property (other than Pre-Clinical Candidates) for its internal research purposes. 

  

	2.5	Teva shall be entitled to grant sub-licences in respect of the rights granted under this Agreement, provided that, with respect to any sub-licence granted to an entity other than a Third Party Service Provider:

  
 11 

	 	2.5.1	prior to grant it informs CRT in writing of the key terms of any sub-licence proposed to be entered into and the identity of the proposed Sub-Licensee. For the avoidance of doubt, Teva need not obtain CRT’s
prior consent to grant any sub-licence hereunder; 

  

	 	2.5.2	any sub-licence granted by Teva shall not permit further sub-licensing; 

  

	 	2.5.3	upon termination of this Agreement for any reason, any sub-licence, at the option of the respective Sub-licensee, shall survive for a period of up to one hundred eighty (180) days, during which time CRT
shall negotiate in good faith the terms and conditions of a direct license with Sub-licensee upon financial terms no less favourable to the Sub-licensee, provided that (a) such Sub-licensee is not in breach of its obligations under the
sub-license duly granted in conformance with this Clause 2.5 and/or (b) the Sub-licensee is not maintaining any claim against Teva which it may wish to assert against CRT and/or (c) the Sub-licensee is not an Affiliate of Teva;

  

	 	2.5.4	Teva shall ensure that there are included in the terms of any sub-licence like obligations and undertakings on the part of the Sub-Licensee as are contained in this Agreement (except this Clause 2.5) including
Clause 3 (performance), Clause 12 (confidentiality) and Clause 9.1 (indemnity); 

  

	 	2.5.5	within twenty (20) Business Days of the grant of any sub-licence, Teva shall provide CRT with a true copy of such sub-licence at Teva’s expense; 

 

	 	2.5.6	where a sub-licence is granted to an entity other than an Affiliate, it shall be entered into on an arms-length basis; and 

  

	 	2.5.7	no sub-licence shall be granted to a Tobacco Party. 

  

	2.6	Any breach of Clauses 2.5.2, 2.5.6 and/or 2.5.7 shall be deemed to be a material breach. 

  

	2.7	The grant of any sub-licence shall be without prejudice to Teva’s obligations under this Agreement. Any act or omission of any such Sub-Licensee which, if it were the act or omission of Teva would be a
breach of any of the provisions of this Agreement, will be deemed to be a breach of this Agreement by Teva who will be liable to CRT accordingly. 

  

	2.8	During the period commencing on the Effective Date and expiring [***] thereafter (the “CRT
Exclusivity Period”), CRT shall not through the CRT-DL, whether the CRT-DL acting alone or the CRT-DL acting in conjunction with any third party: 

  

	 	2.8.1	conduct any research with the primary aim of discovering and/or developing inhibitors of aPKC; and/or 

  

	 	2.8.2	develop any compound whose mechanism of action is primarily through the inhibition of aPKC, 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

12 

 without the express prior written consent of Teva, which may be withheld or conditioned at
Teva’s sole discretion. For the avoidance of doubt, the foregoing prohibition shall not restrict CRT-DL from conducting research (such as kinase or cerep profiling) to assess the activity of compounds against aPKC, but is intended to prevent
CRT-DL from optimising or otherwise developing such compounds as inhibitors of aPKC. 
  

	2.9	From the expiry of the CRT Exclusivity Period until the expiry or earlier termination of this Agreement, CRT may conduct research within the scope of Clauses 2.8.1 and/or 2.8.2, provided that, to the extent CRT
is able, CRT shall: (i) keep Teva reasonably notified of all such research; and (ii) in each instance offer Teva a right of first negotiation with respect to the use and commercial exploitation of any Intellectual Property generated by or
on behalf of CRT-DL in connection with such research, provided that any such negotiations shall not exceed a period of [***]. Teva acknowledges that CRT may not be able to notify Teva or offer it
a right of first negotiation in relation to programmes of research conducted by CRT-DL in collaboration with or funded by third parties. 

  

	3.	PERFORMANCE 

  

	3.1	Subject to Clause 3.2, Teva will use Commercially Reasonable Efforts to: 

  

	 	3.1.1	develop one or more Licensed Products suitable for use in human clinical trials; 

  

	 	3.1.2	pursue Regulatory Authorisation and (where applicable) Price Approvals in each of the Major Markets for those Licensed Products in clinical development; 

 

	 	3.1.3	introduce and commercialise each Licensed Product throughout each of the Major Markets; 

  

	 	3.1.4	pursue market penetration throughout each Major Market in which a Licensed Product is commercialised to maximise availability to patients; and 

 

	 	3.1.5	without prejudice to the generality of the foregoing, develop and commercialise in each of the Major Markets at least one Licensed Product with an application in an Oncology Indication. 

 

	3.2	The obligations described in Clause 3.1 shall not require Teva to pursue Regulatory Authorisation for or to commercialise a Licensed Product in a particular Major Market where, in Teva’s reasonable judgment,
the development or commercialisation of such Licensed Product in respect of that Major Market is commercially unfeasible for Teva due to factors beyond the reasonable control of Teva, including without limitation, where a Competent Authority imposes
requirements relating to the manufacture of a Licensed Product which render the development or commercialisation of such Licensed Product commercially 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

13 

	 	
unfeasible within the relevant Major Market. Teva shall notify CRT promptly of any such factors. 

  

	3.3	Teva will make each Licensed Product available in the United Kingdom within [***] of launching such Licensed Product in any other country in the Territory, provided that such period shall be extended to the
extent of delays beyond the reasonable control of Teva, including, without limitation, delays caused by Competent Authorities. 

  

	3.4	In the event that a Licensed Product is launched or is ready to be launched in the United Kingdom which has received a Regulatory Authorisation in respect of an Oncology Indication, Teva will ensure that such
Licensed Product is made available at an Affordable price. 

  

	3.5	Teva will comply with the current Development Plan. 

  

	3.6	Teva shall: 

  

	 	3.6.1	provide CRT with a Progress Report at least once every six (6) months; 

  

	 	3.6.2	promptly respond to any queries that CRT may have following receipt of a Progress Report; 

  

	 	3.6.3	at CRT’s request, meet with CRT (by teleconference if a face-to-face meeting is not practical) to discuss the content of a particular Progress Report; and 

 

	 	3.6.4	update the Development Plan and provide a copy of the same to CRT at least once every six (6) months. The format of such updated Development Plan shall be consistent with the format of the version annexed at
Schedule 5 at the Effective Date, unless agreed otherwise by the Parties. 

  

	3.7	If at any time during the course of the development or commercialisation of a Licensed Product, Teva fails to meet one or more of its obligations under Clauses 3.1, 3.3, 3.4 and 3.5 in relation to such Licensed
Product for a period of [***] or more, then CRT shall have the right to give written notice to Teva requesting detailed written justification for such failure and Teva shall provide such detailed
written justification to CRT within thirty (30) days of the date of CRT’s request and shall take substantive steps to remedy such failure within sixty (60) days of the date of CRT’s request. If Teva fails to provide such
justification to CRT within thirty (30) days of the date of CRT’s request and/or take substantive steps to remedy such failure within sixty (60) days of the date of CRT’s request, then, on notice by CRT to Teva (to be given in
CRT’s sole discretion), this Agreement will terminate in respect of the relevant Licensed Product. Notwithstanding the foregoing, any dispute between the Parties as to whether a diligence failure has arisen or whether substantive steps have
been taken to remedy a diligence failure shall be resolved by the Expert before CRT shall have the right to terminate this Agreement under this Clause 3.7. 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

14 

	4.	CONSIDERATION 

  

	4.1	Teva shall pay the Signature Fee to CRT within thirty (30) days of the Effective Date. 

  

	4.2	Teva shall pay the Annual Fee to CRT within forty-five (45) days of receipt from CRT of an invoice for such Annual Fee, provided that CRT will send the invoice for each annual fee no sooner than the date of
each anniversary of the Effective Date. Without prejudice to CRT’s right to receive payment of Annual Fees for which its right to invoice Teva has already accrued, Teva’s obligation to pay the Annual Fee will terminate immediately upon the
First Commercial Sale of a Licensed Product in the Territory. The Annual Fee shall not be creditable against any other payment due under this Agreement. 

  

	4.3	Teva shall pay the following payments (“Milestone Payments”) to CRT upon the first occurrence of each of the following events (“Milestone Events”) in relation to each Licensed
Product: 

  

	 	4.3.1	[***]; 

  

	 	4.3.2	[***]: 

  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	[***]; 

  

	 	(d)	[***]; 

  

	 	(e)	[***]; 

  

	 	(f)	[***]; 

  

	 	(g)	[***]; and 

  

	 	(h)	[***]; 

  

	 	4.3.3	[***]: 

  

	 	(a)	[***]; 

  

	 	(b)	[***]; 

  

	 	(c)	[***]; 

  

	 	(d)	[***]; 

  

	 	(e)	[***]; 

  

	 	(f)	[***]; 

  

	 	(g)	[***]; and 

  

	 	(h)	[***]. 

 A Milestone Event may be triggered by the actions of Teva, its Sub-Licensees or
any third party acting on behalf of Teva or its Sub-Licensees (including an Affiliate of either of them). Milestone Events may be triggered by the second and any subsequent Licensed Products in 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

15 

 
respect of an Indication, unless such Milestone Event has already been triggered by a preceding Licensed Product in that Indication. Upon the occurrence of each Milestone Event in respect of an
Indication, any Milestone Event listed before it in this Clause 4 which has not occurred shall be deemed to have occurred in relation to that Indication. An NDA may be submitted in respect of the entire European Union (through a Competent Authority
such as the European Medicines Agency) or in respect of one or more individual countries within the European Union (through the Competent Authorities of each such country). 
  

	4.4	Subject to Clause 4.6, Teva shall pay to CRT: 

  

	 	4.4.1	[***] of Sub-Licence Revenue, where the relevant sub-licence is granted by Teva prior to the [***]; and 

 

	 	4.4.2	[***] of Sub-Licence Revenue, where the relevant Sub-Licence is granted by Teva on or after the [***]. 

  

	4.5	Teva shall pay royalties to CRT on a Licensed Product by Licensed Product, and country by country basis until the later of: 

  

	 	4.5.1	[***]; or 

  

	 	4.5.2	[***]; 

 at the following royalty rates, which shall apply to the respective tiers of
aggregate Net Sales of all Licensed Products achieved across all Indications in a given Year: 
  

	 	(a)	[***]; and 

  

	 	(b)	[***]; and 

  

	 	(c)	[***]. 

  

	4.6	In the event that any Milestone Event is triggered by a Sub-Licensee, Teva shall pay to CRT the greater of the Milestone Payment due under Clause 4.3 or the payment due in respect of such Milestone Event under
Clause 4.4 (if any) but not both. 

  

	5.	PAYMENT AND STATEMENT 

  

	5.1	All payments due to CRT under this Agreement shall be made in United States Dollars (USD) in cleared funds to the following bank account: 

[***], 
 or such other account as
CRT may notify Teva from time to time. 
  

	5.2	Teva shall pay to CRT: 

  

	 	5.2.1	the Signature Fee on the date specified in Clause 4.1; 

  

	 	5.2.2	the Annual Fee on the dates specified in Clause 4.2; 

  

	 	5.2.3	the Milestone Payments within forty-five (45) days of the Milestone Event occurring; 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

16 

	 	5.2.4	CRT’s share of Sub-Licence Revenue due under Clause 4.4 Quarterly within forty-five (45) days of the end of the Quarter in which the consideration upon which Sub-Licence Revenue is based is invoiced by
Teva; 

  

	 	5.2.5	the royalties due pursuant to Clause 4.5 Quarterly within forty-five (45) days of the end of each Quarter in which the relevant Net Sales is invoiced by Teva or received from an Affiliate or Sub-Licensee;
and 

  

	 	5.2.6	Patent Costs as specified in Clause 7.1. 

  

	5.3	Royalty True-Up: 

  

	 	5.3.1	Within one hundred eighty (180) days after the end of each calendar year during the term in which Licensed Products are sold, Teva shall perform a “true-up” reconciliation (and shall provide CRT
with a written report of such reconciliation) of the deductions outlined in subsections a) (to the extent that the standard US discount is not applied for any reason), b), c), d), e), and h) in the definition of “Net Sales.” The
reconciliation shall be based on actual cash paid or credits issued, plus an estimate for any remaining liabilities incurred related to the Licensed Product, but not yet paid. If the foregoing reconciliation report shows an underpayment by Teva,
Teva shall pay the amount of the underpayment to CRT within thirty (30) days after the date of delivery of such report. If the foregoing reconciliation report shows an overpayment by Teva, Teva shall be entitled to deduct such overpayment from
the next Quarter’s payment due to CRT pursuant to Clause 5.2.; and 

  

	 	5.3.2	Upon termination or expiration of this Agreement, CRT shall ensure availability of funds equal to the amounts of the last two Quarterly Royalty Payments for purposes of serving as a reserve for the true-up of
final Royalty Payment accounts with Teva for the purpose of this Clause 5.3.2. Within: 

  

	 	(a)	 thirteen (13) months after the termination or expiration of this Agreement, Teva shall perform an interim “true-up”
reconciliation of (and shall provide CRT with a written report of such reconciliation) of the deductions outlined in subsections a) (to the extent that the standard US discount is not applied for any reason), b), c), d), e), and h) in the definition
of “Net Sales.” The reconciliation shall be based on actual cash paid or credits issued, plus an estimate for any remaining liabilities incurred related to the Licensed Product, but not yet paid. If the foregoing reconciliation report
shows an underpayment by Teva, Teva shall pay the amount of the underpayment to CRT within thirty (30) days after the date of delivery of such report. If the foregoing reconciliation report shows an overpayment by Teva, CRT shall pay back to
Teva the amount of the overpayment, not to exceed the aggregate amount of 

  
 17 

	 	
the last two Quarterly Royalty payments received by CRT. CRT’s obligation to retain the reserve shall be adjusted accordingly. 

 

	 	(b)	twenty-five months after the termination or expiration of this Agreement, Teva shall perform a “final true-up” reconciliation (and shall provide CRT with a written report of such reconciliation) of the
items comprising deductions from Net Sales for returns as outlined in subsection d) in the definition of Net Sales. The reconciliation shall be based on actual cash paid or credits issued for returns through the twenty-four (24) month
period following the termination or expiration of this Agreement. If the foregoing reconciliation report shows an underpayment by Teva, Teva shall pay the amount of the underpayment to CRT within ninety (90) days after the date of delivery of
such report. If the foregoing reconciliation report shows an overpayment by Teva, CRT shall pay back to Teva the amount of the overpayment within ninety (90) days after the date of delivery of such report provided always that CRT shall not,
whether under this Clause 5.3.2(b) alone or through the combined effect of Clauses 5.3.2(a) and 5.3.2(b), be expected to repay more than the aggregate amount of the last two Quarterly Royalty payments received by CRT. For the avoidance of doubt
Clause 5.3.1 shall still apply. 

  

	5.4	Where Licensed Products are sold or Sub-Licence Revenue is received by Teva in a currency other than United States Dollars (USD), the rate of exchange to be used for converting such other currency into United
States Dollars (USD) shall be the relevant mid-spot rate quoted by Oanda.com on the last Business Day of the Quarter to which they relate. 

  

	5.5	All costs of transmission or currency conversion shall be borne by Teva. 

  

	5.6	All payments to CRT under this Agreement are expressed to be exclusive of value added tax howsoever arising, and Teva shall pay to CRT in addition to those payments or, if earlier, on receipt of a tax invoice or
invoices from CRT, all value added tax for which CRT is liable to account in relation to any supply made or deemed to be made for value added tax purposes pursuant to this Agreement. 

 

	5.7	All sums payable under this Agreement shall be paid without deduction or deferment in respect of any taxes except any tax which Teva is required by law to deduct or withhold. If Teva is required by law to make
any such tax deduction or withholding, Teva shall give reasonable assistance to CRT to claim exemption from or (if that is not possible) a credit for the deduction or withholding under any applicable double taxation or similar agreement from time to
time in force, and shall promptly give CRT proper evidence as to the deduction or withholding and payment over of the tax deducted or withheld. 

  
 18 

	5.8	Where CRT does not receive payment of any sums due to it by the due date, interest shall accrue both before and after any judgement on the sum due and owing to CRT at the rate equivalent to an annual rate of
[***] over the then current base rate of Natwest Bank Plc, calculated on a daily basis, until the full amount is paid to CRT, without prejudice to CRT’s right to receive payment on the due
date. 

  

	5.9	Within forty-five (45) days after the end of each Quarter following the First Commercial Sale, Teva shall send to CRT a written statement detailing in respect of that Quarter (including a nil report if
appropriate): 

  

	 	5.9.1	any Milestone Payments which became due to CRT; 

  

	 	5.9.2	for each sub-licence, details of each item of Sub-Licence Revenue received by Teva during that Quarter and the Sub-Licence Revenue payable to CRT thereon; 

 

	 	5.9.3	the quantity of each type of Licensed Product sold or otherwise disposed of by Teva or any Sub-Licensees in each country in the Territory; 

 

	 	5.9.4	the Net Sales in respect of each such type of Licensed Product in each country of the Territory; 

  

	 	5.9.5	the aggregate Net Sales in respect of that Quarter for Licensed Product; 

  

	 	5.9.6	the type and value of deductions made in the calculation of Net Sales by type of Licensed Product and country; 

  

	 	5.9.7	any currency conversions, showing the rates used; 

  

	 	5.9.8	any further information necessary for the calculation of Sub-Licence Revenue and Net Sales of Licensed Products and/or the royalties due to CRT; and 

 

	 	5.9.9	the amount of the royalties due to CRT in respect of that Quarter. 

  

	5.10	At CRT’s request, and within forty-five (45) days after CRT’s receipt of a written statement pursuant to Clause 5.9, Teva shall make itself available to meet via teleconference with CRT to discuss
the content of such written statement. 

  

	5.11	Teva shall notify CRT of the occurrence of any Milestone Event within thirty (30) days of the same, save where it is triggered by a Sub-Licensee, in which case such thirty (30) day period shall commence
upon Teva becoming aware of the occurrence of the relevant Milestone Event. 

  

	6.	ACCOUNTS 

  

	6.1	Teva shall 

 keep and notwithstanding termination of this Agreement, maintain and shall procure that each
Sub-Licensee keeps and maintains, for at least three (3) years, true and accurate accounts and records 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

19 

 
(including any underlying documents supporting such accounts and records) in sufficient detail to enable the amount of all sums payable under this Agreement to be determined; 

 

	6.2	CRT shall have the right from time to time (but not more often than once in each Year) and, subject to Clause 6.3, at its own expense to have a reputable firm of independent accountants (provided that such
accounting firm shall not be retained or compensated on a contingency basis) review Teva’s records and accounts that are maintained pursuant to Clause 6.1, upon reasonable notice and during regular business hours and under obligations of strict
confidence, for the sole purpose of verifying the basis and accuracy of payments made under this Agreement, provided that the audit may extend to records for only the three (3) most recently completed Years and audits may be conducted no more
than once during a Year. Such accountants shall sign a confidentiality agreement in form and substance reasonably satisfactory to Teva, and shall not disclose to CRT or any Third Party any information reasonably labelled by Teva as being
confidential customer information regarding pricing or other competitively sensitive proprietary information except (in the case of disclosures to CRT) as reasonably necessary to present the results of the audit. CRT shall provide Teva with a copy
of the report or other summary of findings prepared by such accountants promptly following its receipt of same. 

  

	6.3	If the review of such records reveals that additional payments were owed by Teva during such period then Teva shall promptly pay to CRT any resulting amounts due under this Clause 6.3, together with interest
calculated in the manner provided in Clause 5.8. In the event the review of such records reveals that Teva overpaid the actual payments required by this Agreement during such period, Teva shall be permitted to deduct such overpayment from future
payments required by this Agreement. If any amounts due under this Clause 6.3 as a result of such audit are greater than seven percent (5%) of the amounts actually due for a Year, Teva shall pay the reasonable costs of such audit. If Teva, in
good faith, disputes any conclusion of the accounting firm under this Clause 6, including that Teva owes additional amounts, then Teva shall inform CRT by written notice within thirty (30) days of receipt of a copy of the audit in question,
specifying in detail such dispute. The Parties shall promptly thereafter meet and negotiate in good faith a resolution to such dispute. In the event that the Parties are unable to resolve such dispute within thirty (30) days after notice by
Teva, either Party may refer the matter to be resolved by the Expert. 

  

	7.	INTELLECTUAL PROPERTY PROTECTION, PROCEEDINGS AND COSTS 

  

	7.1	 Teva shall reimburse CRT in respect of any Patent Costs incurred up to and including the Effective Date within sixty (60) days of
Teva’s receipt from CRT of all documentary 

  
 20 

	 	
evidence of such Patent Costs. All Patent Costs incurred after the Effective Date shall be met solely by Teva. 

 

	7.2	The ownership of the Licensed Patents shall (as between the Parties) at all times remain vested jointly in CRT and Teva. 

  

	7.3	Subject to Clauses 7.4, 7.5 and 7.6, Teva shall be responsible for filing, prosecuting and maintaining the Licensed Patents in CRT’s and Teva’s joint names with the aim of maximising the duration and
scope thereof. 

  

	7.4	Teva’s Patent Lead shall discuss the filing strategy for the Licensed Patents with CRT’s Patent Lead and shall take into consideration all comments received from CRT’s Patent Lead in respect
thereof. If Teva elects not to file a patent application claiming a Pre-Clinical Candidate, Teva’s Patent Lead shall promptly notify CRT’s Patent Lead of such decision and CRT shall have the right (but not the obligation) to file such an
application. If CRT elects to exercise such right by notice in writing to Teva, Teva’s shall promptly assign its interest in the relevant Pre-Clinical Candidate to CRT’s sole ownership and CRT shall thereafter be solely responsible for the
expense of filing, prosecuting and maintaining the corresponding Patent, which, shall be excluded from the definition of Licensed Patents and the licence granted under Clause 2.1. 

 

	7.5	Teva shall keep CRT reasonably informed in writing as to the prosecution status of the Licensed Patents and shall promptly provide CRT with a copy of all submissions made to or responses received from the
relevant patent offices and all correspondence to and responses received from the relevant patent agent in relation to the Licensed Patents in each applicable country of the Territory. Teva shall notify CRT at least one (1) month prior to any
restriction of scope of any of the Licensed Patents. 

  

	7.6	If Teva elects not to prosecute and/or maintain any part of the Licensed Patents, Teva shall notify CRT in writing at least three (3) months prior to the expiration of any applicable time bars. During the
aforementioned three (3) months’ notice period, Teva shall retain the responsibility for the prosecution and maintenance of the Licensed Patents in question. On the expiry of such notice period: 

 

	 	7.6.1	the licence granted pursuant to Clause 2.1 shall terminate in respect of the Licensed Patents identified in such notice; and 

  

	 	7.6.2	Teva shall, at CRT’s request, promptly assign its right, title and interest in such Licensed Patents to CRT’s sole ownership; 

 

	 	7.6.3	Teva shall, at CRT’s request, promptly transfer to CRT (or any person nominated by CRT) any and all documents and information in Teva’s control relating to such Licensed Patents; and 

 

	 	7.6.4	CRT shall be free to prosecute or abandon such Licensed Patents at its sole discretion and to grant rights thereunder to any third party without further reference to Teva. 

  
 21 

 Following Teva’s consultation with CRT, CRT shall consider Teva’s proposal to allow a
Licensed Patent to lapse and/or to abandon prosecution of a Patent application in good faith where Teva believes it to be strategically justified in order to successfully commercialize Licensed Products but the final decision on whether to allow a
Licensed Patent to lapse or to abandon prosecution of a Patent application will rest solely with CRT. Where CRT agrees to allow a Licensed Patent to lapse and/or to abandon prosecution of a Patent application, such Licensed Patents or Patent
applications are excluded from the provisions of this Clause 7.6. 
  

	7.7	Teva will notify CRT in writing as soon as it becomes aware that any claim is made or threatened against Teva, a Sub-Licensee or an Affiliate of either of them by any third party that the exercise by Teva, a
Sub-Licensee or an Affiliate of either of them, of the rights granted pursuant to this Agreement infringe any patent or other rights of any third party. 

  

	7.8	In the event of the circumstances described in Clause 7.7 arising, Teva shall take such steps as may be necessary in order to terminate such infringement or otherwise to remedy the position, including by
obtaining a license from such Third Party or prosecuting a case or defense of invalidity and/or non-infringement of, or priority over, such Third Party patent or other rights. 

 

	7.9	Each Party will notify the other Party in writing as soon as it becomes aware of any infringement or suspected infringement by a third party of any of the Licensed Patents or any unauthorised use of the Licensed
Know How or the Licensed Materials. 

  

	7.10	Provided Teva has a licence under this Agreement in relation to the relevant Licensed Patent and country in the Territory (and where local law permits), within such country Teva may: 

 

	 	7.10.1	at its own cost bring proceedings in its own name or, if required by law, jointly with CRT, for infringement of the Licensed Patents in the Field; and 

 

	 	7.10.2	in any such proceedings settle any claim for infringement of the Licensed Patents in the Field, provided that any proposed settlement which may materially adversely affect the Licensed Patents shall be subject to
the consent of CRT (which shall not be unreasonably withheld or delayed). 

 Any damages, profits, and awards of whatever
nature recovered by Teva for such infringement shall be treated as Net Sales subject to a deduction for Teva’s reasonable legal expenses insofar as these are not recovered from a third party. In any such proceedings, CRT shall, at Teva’s
cost, promptly provide Teva with all documents and assistance as Teva may reasonably require. Teva shall promptly provide CRT with notice of such proceedings and keep CRT informed of progress and promptly provide CRT with such information as CRT may
require including copies of all documents filed at court in the proceedings. If CRT is joined to proceedings pursuant to Clause 7.10.1 or otherwise, Teva shall indemnify and hold harmless CRT from and against any and all claims, demands, losses,
causes of action, damages and expenses (including without limitation, legal fees) arising from or in connection with such proceedings. 

  
 22 

	7.11	If Teva does not exercise its right to bring proceedings pursuant to Clause 7.10 within sixty (60) days of the written notification pursuant to Clause 7.9 then CRT shall be entitled, but not obliged to bring
such proceedings at its own cost. If necessary, (including to recover damages), Teva shall join in such proceedings. CRT shall be entitled to all monies recovered in such proceedings. In any such proceedings Teva shall promptly provide CRT with all
documents and assistance as CRT may reasonably require and CRT shall promptly provide Teva with notice of such proceedings. CRT shall keep Teva informed of progress and promptly provide Teva with notice of such proceedings and keep Teva informed of
progress and promptly provide Teva with such information as Teva may reasonably require including copies of all documents filed at court in the proceedings. 

  

	7.12	The Parties shall, at the request of either of them and at the expense of the requesting Party but for no further consideration, enter into such confirmatory patent licences relating to the Licensed Patents,
substantially in the form set out in Schedule 4, as may be necessary or desirable in accordance with the relevant law and practice in each country in the Territory for registration at the relevant patent offices so that this Agreement need not be
registered or recorded unless the Parties are required to do so by law. If there shall be any inconsistencies between the terms of any such confirmatory patent licence and the provisions of this Agreement, this Agreement shall prevail.

  

	7.13	The Parties shall promptly update Schedule 3 Part A to include any Pre-Clinical Candidates identified on or after the Effective Date. 

 

	8.	WARRANTY 

  

	8.1	CRT warrants to Teva that: 

  

	 	8.1.1	it has the legal capacity to enter into this Agreement; and 

  

	 	8.1.2	at the Effective Date, it owns the Licensed Intellectual Property (whether solely or jointly with Teva) and that it has not granted any conflicting rights to third parties. 

 

	8.2	Teva warrants to CRT that: 

  

	 	8.2.1	it has the legal capacity to enter into this Agreement; and 

  

	 	8.2.2	at the Effective Date, it owns the Programme Intellectual Property jointly with CRT and that it has not granted any rights in respect thereof to third parties. 

 

	8.3	Each Party acknowledges that, in entering into this Agreement, it does not do so in reliance on any warranty or other provision except as expressly provided in this Agreement, and all conditions, warranties,
terms and undertakings implied by statute, common law or otherwise are excluded from this Agreement to the fullest extent permissible by law. 

  

	8.4	Without limiting the scope of Clause 8.3, save as expressly set out at Clause 8.1, CRT does not give any warranty, representation or undertaking in relation to the Licensed Intellectual Property, including any
warranty, representation or undertaking: 

  
 23 

	 	8.4.1	as to the efficacy, usefulness, completeness or accuracy of the Licensed Intellectual Property; or 

  

	 	8.4.2	that any of the Licensed Patents is or will be valid or subsisting or that any of the applications within the Licensed Patents will proceed to grant; or 

 

	 	8.4.3	that the use of any invention claimed in a Licensed Patent or the exercise of any rights granted under this Agreement will not infringe the intellectual property or other rights of any other person.

  

	9.	INDEMNITY 

  

	9.1	Teva shall indemnify, defend and hold harmless CRT and the Charity and their respective officers, employees and agents (the “Indemnified Parties”) from and against any and all third party claims,
demands, losses, damages, costs and expenses (collectively “Losses”) (including, without limitation, reasonable legal fees) arising from or in connection with the exercise by Teva or a Sub-Licensee of the rights granted in Clause
2.1 or the negligence or willful misconduct of Teva, a Sub-Licensee or an Affiliate of either of them in relation to a Licensed Product; except, in each case, to the extent the Losses are caused by the breach of this Agreement by, or the negligence
or willful misconduct of, CRT, an Indemnified Party or any other party acting on behalf of CRT. 

  

	9.2	Promptly after receipt by CRT of any claim or alleged claim or notice of the commencement of any action, administrative or legal proceeding, or investigation to which the indemnity provided for in this Clause 9
may apply, CRT shall give written notice to Teva of such fact and Teva shall have the option to assume the defence thereof by election in writing within thirty (30) days of receipt of CRT’s notice. If Teva fails to make such election, the
Indemnified Party may assume such defence and Teva will be liable for the legal and other expenses consequently incurred in connection with such defence. The Parties will co-operate in good faith in the conduct of any defence, will provide such
reasonable assistance as may be required to enable any claim to be defended properly and the Party with conduct of the action shall promptly provide to the other Party copies of all correspondence and documents and notice in writing of the substance
of all oral communications relating to such action. 

  

	9.3	Should Teva assume conduct of the defence: 

  

	 	9.3.1	the Indemnified Party may retain separate legal advisers, at its sole cost and expense; and 

  

	 	9.3.2	Teva will not, except with the written consent of the Indemnified Party, consent to the entry of any judgment or enter into any settlement that adversely affects the Indemnified Party; and 

  
 24 

	 	9.3.3	CRT shall not admit liability in respect of, or compromise or settle any such action without the prior written consent of Teva, such consent not to be unreasonably withheld, conditioned or delayed; and

  

	 	9.3.4	Teva shall not be responsible for or bound by any settlement made by CRT in breach of Clause 9.3.3. 

  

	10.	INSURANCE 

 Teva shall maintain, at its own cost, comprehensive product liability insurance and general
commercial liability insurance either through a reputable insurance company or, at Teva’s sole discretion, through self-insurance. At CRT’s request, Teva shall provide CRT with a certificate evidencing such coverage. Such insurance shall
be maintained for not less than six (6) years following the expiration or termination of this Agreement for any reason or if such coverage is of the “claims made” type, for ten (10) years following the expiration or termination
of this Agreement for any reason. 
  

	11.	LIMITATION OF LIABILITY 

  

	11.1	Subject to Clause 11.2, neither Party nor the Charity, nor their respective directors, officers, employees and agents shall have any liability under or in connection with this Agreement whether under statute or
in tort (including but not limited to negligence), contract or otherwise in respect of: (i) any consequential or indirect loss; and/or (ii) any loss of goodwill, opportunity, profit or contract, in either case even if advised in advance of
the possibility of such losses. 

  

	11.2	Nothing in this Agreement shall be construed as excluding or limiting the liability of either Party or the Charity or any of their respective officers, employees and agents for any liability which cannot be
limited or excluded by law. 

  

	12.	CONFIDENTIALITY 

  

	12.1	Each Party (the “Receiving Party”) undertakes with the other Party (the “Disclosing Party”) that it shall keep, and it shall procure that its and its Affiliates’ respective
directors, officers, employees and agents (collectively, “Representatives”) shall keep, secret and confidential all Confidential Information of the Disclosing Party and shall not publish or disclose the same or any part of the same
to any person whatsoever other than: 

  

	 	12.1.1	in the case of Teva to Sub-Licensees subject to compliance with Clause 2.5.4 and as necessary in communications with regulatory authorities in the Territory relating to the Licensed Products; 

  
 25 

	 	12.1.2	in the case of each Party, to its Representatives directly or indirectly concerned in the exercise of the rights granted under this Agreement; and 

 

	 	12.1.3	in the case of CRT, to independent reviewers nominated by CRT or the Charity for the purpose of monitoring and reviewing work funded by the Charity and/or providing scientific advice (including any members of
CRT’s Scientific Advisory Board from time to time) (collectively “CRT Reviewers”). 

  

	12.2	Each Party warrants that each of its Representatives to whom any Confidential Information is disclosed shall previously have been informed of the confidential nature of the Confidential Information and shall have
agreed to be bound by a legal obligation no less restrictive than that set forth in this Agreement. The Receiving Party shall ensure that the Confidential Information provided by the Disclosing Party shall not be used or disclosed by such
Representatives except as permitted by this Agreement. The Receiving Party shall stand responsible for any breach by its Representatives of the confidentiality provisions set forth in this Agreement. 

 

	12.3	CRT shall provide Teva, upon reasonable notice, the opportunity to review and comment on any Confidential Information proposed to be disclosed to CRT Reviewers and shall give due consideration to any comments
received from Teva. CRT recognises the need to protect the chemical structures of Programme Compounds (other than Research Tools). Prior to disclosing the chemical structure of any lead series of Programme Compounds, CRT shall, where practicable,
limit the content of materials disclosed to CRT Reviewers to (in the following order of priority): (i) the chemical structures of a deprioritised series; (ii) the profiles of the lead series; (iii) generic chemical structures of the
lead series, that in each case demonstrate the desired mechanism of action and chemical scope. Notwithstanding the foregoing, CRT shall be permitted to disclose to any CRT Reviewers such Confidential Information as it may determine in its reasonable
discretion to disclose after providing prior written notice thereof to Teva. CRT shall ensure that any such disclosure to CRT Reviewers is made in confidence (whether under the terms of an appropriate confidential disclosure agreement with the CRT,
the Charity or otherwise). CRT shall stand responsible for any breach by the CRT Reviewers of the confidentiality provisions set forth in this Agreement. 

  

	12.4	The provisions of Clauses 12.1, 12.2 and 12.3 shall not apply to Confidential Information which: 

  

	 	12.4.1	the Receiving Party can demonstrate by reference to written records to have been in its possession (other than under an obligation of confidence to the Disclosing Party or to a third party) at the date of
receipt; 

  

	 	12.4.2	enters the public domain otherwise than through a breach of any obligation of confidentiality owed to the Disclosing Party; or 

  
 26 

	 	12.4.3	the Receiving Party can prove it has independently developed without direct or indirect access to any of the Disclosing Party’s Confidential Information. 

 

	12.5	The Receiving Party may disclose Confidential Information to the extent that such disclosure is: 

  

	 	12.5.1	necessarily required of the Receiving Party by order of a Competent Authority or otherwise by applicable law; provided, that the Receiving Party shall, to the extent practicable, first have given notice to the
Disclosing Party and given the Disclosing Party a reasonable opportunity to quash any such order or obtain a protective order requiring that the Confidential Information subject of such order be held in confidence by such Competent Authority or, if
disclosed, be used only for the purpose for which the order was issued; and provided further that if such order is not quashed or a protective order is not obtained, the Confidential Information disclosed in response to such order shall be limited
to that information that is legally required to be disclosed in response to such order; 

  

	 	12.5.2	made by the Receiving Party to a patent authority as may be necessary or useful for purposes of obtaining or enforcing a Licensed Patent (consistent with the terms and conditions of Clause 7), provided, however,
that reasonable measures shall be taken to assure confidential treatment of such information, to the extent such protection is available; or 

  

	 	12.5.3	required with regard to the disclosure requirements of the U.S. Securities and Exchange Commission or the national securities exchange or other stock market or of a related regulatory body on which the Receiving
Party’s securities are or are proposed to be traded, provided it has used reasonable endeavours in the time available to provide notice to the Disclosing Party of the terms of any such disclosure beforehand. 

 

	12.6	Insofar as the Receiving Party believes that any of the provisions of Clause 12.4.1, 12.4.2 or 12.4.3 apply to Confidential Information, it shall notify the Disclosing Party at the earliest opportunity.

  

	12.7	Without prejudice and subject to clause 4 of the RCOA, all Confidential Information disclosed by the Disclosing Party shall remain the property of the Disclosing Party. 

 

	12.8	The Receiving Party agrees that the disclosure of the Disclosing Party’s Confidential Information without the express written consent of the Disclosing Party may cause irreparable harm to the Disclosing
Party, and that any breach or threatened breach of this Agreement by the Receiving Party may entitle the Disclosing Party to injunctive relief, in addition to any other legal remedies available to it, in any court of competent jurisdiction.

  

	12.9	The provisions of this Clause 12 shall remain in force for a period of ten (10) years from the expiry or termination of this Agreement. 

  
 27 

	13.	TERM AND TERMINATION 

  

	13.1	This Agreement will become effective on the Effective Date. Subject to the provisions of this Clause 13 it will remain effective in each country of the Territory until expiry of the obligation upon Teva to pay
royalties in relation to that country pursuant to this Agreement, at which time Teva shall have an irrevocable, perpetual, fully paid-up license under the Licensed Intellectual Property with respect to that country. 

 

	13.2	Without prejudice to any other rights of the Parties, but subject to the requirements of Clause 3.7 with respect to a failure by Teva to meet its obligations under Clauses 3, this Agreement may be terminated by
notice in writing: 

  

	 	13.2.1	by either Party forthwith if the other Party shall be in material breach of any of its obligations under this Agreement and in the case of a remediable breach fails to remedy the breach within sixty
(60) days of written notice containing full particulars of the breach and requiring it to be remedied in the absence of an extension of such period agreed to by the non-breaching Party; or 

 

	 	13.2.2	by CRT forthwith if a voluntary arrangement is proposed or approved or an administration order is made, or a receiver or administrative receiver is appointed of any of Teva’s assets or undertakings or a
winding-up resolution or petition is passed (otherwise than for the purpose of solvent reconstruction or amalgamation) or if any circumstances arise which entitle a court or a creditor to appoint a receiver, administrative receiver or administrator
or make a winding-up order or similar or equivalent action is taken against or by Teva by reason of its insolvency or in consequence of debt or if it appears in the reasonable opinion of CRT that Teva has ceased, or is likely to cease, trading; or

  

	 	13.2.3	by CRT forthwith in the event of a change of Control of Teva where the new Controlling party is a Tobacco Party; or 

  

	 	13.2.4	in accordance with Clause 3.7. 

  

	 	13.2.5	 All rights and licenses granted under or pursuant to this Agreement by the Parties are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree
that the Parties, as licensees of such rights under this Agreement, shall retain and may fully exercise all of their rights and elections under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction. The Parties
further agree that, in the event of the commencement of a bankruptcy proceeding by or against any Party under the U.S. Bankruptcy Code or any analogous provisions in any other country or jurisdiction, the Party hereto that is

  
 28 

	 	
not a Party to such proceeding shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual
property, which, if not already in the non-subject Party’s possession, shall be promptly delivered to it (i) upon any such commencement of a bankruptcy proceeding upon the non-subject Party’s written request therefor, unless the Party
subject to such proceeding elects to continue to perform all of its obligations under this Agreement, or (ii) if not delivered under clause (i) above, following the rejection of this Agreement by or on behalf of the Party subject to such
proceeding upon written request therefor by the non-subject Party. 

  

	14.	EFFECTS OF TERMINATION 

  

	14.1	Upon the termination of this Agreement by CRT pursuant to Clause 13: 

  

	 	14.1.1	payment of royalties and all other sums due to CRT as of the date of termination shall become payable to CRT immediately upon notice of termination of this Agreement; 

 

	 	14.1.2	Teva shall, within forty-five (45) days of end of the Quarter in which notice of termination of this Agreement provide CRT with a written statement detailing, in respect of the time elapsed since the last
report under Clause 5.8, the matters set out in Clause 5.8; 

  

	 	14.1.3	Teva shall consent to the revocation of any confirmatory patent licence relating to the Licensed Patents granted pursuant to Clause 7.12 and the cancellation of the registration of any such licence in any
register; 

  

	 	14.1.4	the licences granted to Teva pursuant to Clause 2 shall terminate forthwith and Teva shall (and shall procure that its Sub-Licensees and Affiliates shall) immediately cease to exploit the Licensed Intellectual
Property in any way, either directly or indirectly; 

  

	 	14.1.5	Teva shall, at the request and option of CRT, return or destroy the Licensed Know How and the Licensed Materials; and 

  

	 	14.1.6	in the event that CRT desires to proceed with the development and/or exploitation of any Licensed Product: 

  

	 	(a)	Teva hereby assigns its right, title and interest in Programme Intellectual Property to CRT’s sole ownership; 

  

	 	(b)	 Teva hereby grants CRT an exclusive, worldwide, perpetual, irrevocable, sub-licensable, licence under its right, title and interest in Teva
Existing Intellectual Property for the purposes of: (i) developing and exploiting the Licensed Intellectual Property; and (ii) developing and exploiting the Teva Existing Compounds solely as aPKC inhibitors. For the avoidance of doubt,
Teva shall retain the right to develop compounds based upon the Teva 

  
 29 

	 	
Existing Compounds provided that the mechanism of action of such compounds is not primarily through the inhibition of aPKC; 

 

	 	(c)	Teva hereby grants to CRT an exclusive, perpetual, irrevocable, sub-licensable, worldwide licence to any Arising Intellectual Property that specifically relates to Licensed Products and is necessary for CRT or
its licensee to be able to research, develop, make, have made, market, use and sell such Licensed Products (“Exclusive Arising Intellectual Property”). For the avoidance of doubt, Teva shall retain the right to use, sub-license the
rights to, and otherwise exploit for commercial purposes, any Arising Intellectual Property not specifically related to the Licensed Products; 

  

	 	(d)	Teva hereby grants to CRT a non-exclusive, perpetual, irrevocable, sub-licensable, worldwide licence to any Arising Intellectual Property other than Exclusive Arising Intellectual Property that is necessary for
CRT or its licensees to be able to research, develop, make, have made, market, use and sell Licensed Products; 

  

	 	(e)	CRT shall be solely responsible for the prosecution and maintenance of all Patents comprised within the Licensed Intellectual Property and Exclusive Arising Intellectual Property (at CRT’s sole expense and
CRT shall be entitled to treat all such expenses as Expenses); 

  

	 	(f)	Teva shall, at CRT’s request, transfer to CRT (or its nominee) as soon as practicable, and in any event within three (3) months of the date of termination of this Agreement, any Regulatory
Authorisations, Price Approvals and other permits and applications relating to Licensed Products; 

  

	 	(g)	Teva shall as soon as practicable transfer to CRT (or CRT’s nominee) any documents and information within Teva’s control relating to the filing and prosecution of any Licensed Patents and Patents
comprised in Arising Intellectual Property; 

  

	 	(h)	Teva shall be entitled to receive a share of any Net Revenue. Such share shall be determined having regard to the development stage which Teva (or its Sub-Licensee) has reached at the date of termination in
respect of the Licensed Product, as follows: 

  

	 	(i)	[***]; 

  

	 	(ii)	[***]; and 

  

	 	(iii)	[***]; and 

  
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions. 

30 

	 	(i)	With respect to the rights and obligations of the Parties under Clause 14.1.6 (h), the payment terms and record-keeping requirements of Clause 5 and Clause 6 shall apply, except that the references therein to
“Teva” shall refer instead to “CRT,” and the references therein to “CRT” shall refer instead to “Teva”. 

  

	14.2	Upon the termination of this Agreement by Teva pursuant to Clause 13.2.1: 

  

	 	14.2.1	CRT shall consent to the revocation of any confirmatory patent licence relating to the Licensed Patents granted pursuant to Clause 7.12 and the cancellation of the registration of any such licence in any
register; 

  

	 	14.2.2	CRT shall promptly transfer to Teva (or any person nominated by Teva) any and all documents and information in CRT’s control or possession relating to the Licensed Patents (save for any Licensed Patents
abandoned by Teva pursuant to Clause 7.6) and Teva may assume or continue sole responsibility for the prosecution and maintenance of the same; 

  

	 	14.2.3	the licences granted to CRT pursuant to Clause 2.4 shall terminate forthwith and CRT shall immediately cease to exploit the Licensed Intellectual Property (other than Research Tools) in any way, either directly
or indirectly, save that any licences or sub-licences granted by CRT prior to the date of termination of this Agreement shall remain in full force and effect in accordance with their respective terms. 

 

	 	14.2.4	Teva shall, upon request, make the Non-Exclusive Intellectual Property available on a non-exclusive basis to third parties on reasonable terms, which it shall negotiate in good faith; 

 

	 	14.2.5	CRT shall, at the request and option of Teva and subject to Clause 14.2.3, return or destroy the Licensed Know How and the Licensed Materials; and 

 

	 	14.2.6	 unless and until otherwise agreed by the Parties in accordance with this Clause 14.2.6, the licences granted to Teva pursuant to Clause 2 shall
be immediately deemed to be sub-licensable, perpetual and irrevocable, and, after the date of the termination of this Agreement, all payments due or owing to CRT hereunder (whether as a result of sales of a Licensed Product by Teva or a Sub-Licensee
or Affiliate thereof or otherwise) shall be suspended until such time as revised payments are agreed in accordance with the remainder of this Clause. Promptly following the date of termination of this Agreement the Parties shall negotiate in good
faith the amount of royalty and other payments that are to be paid to CRT by Teva with effect from the date of termination of this Agreement, taking into consideration the payments agreed under Clause 4 and the circumstances which gave rise to
termination; and provided further, that in the event such negotiation does not result in a mutually acceptable agreement within one hundred twenty (120) days from the date of termination, either Party may demand that

  
 31 

	 	
any unresolved issues be determined by the Expert in accordance with Clause 25. The provisions of Clauses 5 and 6 shall survive termination (varied solely to the extent explicitly agreed by the
Parties or as determined by the Expert pursuant to this Clause 14.2.6). 

  

	14.3	Upon the termination of this Agreement solely in respect of particular Licensed Product, the provisions of Clauses 14.1 and 14.2 shall apply, but only in respect of the relevant Licensed Product.

  

	14.4	The termination of this Agreement howsoever arising will be without prejudice to the rights and duties of either Party accrued prior to termination. The following Clauses will continue to be enforceable
notwithstanding termination: Clauses 1, 2.3, 2.4.1, 6, 9, 10, 11, 12, 14 and 17 to 28 inclusive. 

  

	15.	FORCE MAJEURE 

  

	15.1	If a Party is unable to carry out any of its obligations under this Agreement due to Force Majeure (the “Non-Performing Party”) this Agreement shall remain in effect but the Non-Performing
Party’s relevant obligations under this agreement and the relevant obligations of the other Party (“the Innocent Party”) under this Agreement shall be suspended for the duration of the circumstance of Force Majeure provided
that: 

  

	 	15.1.1	the suspension of performance is of no greater scope than is required by the Force Majeure; 

  

	 	15.1.2	the Non-Performing Party gives the Innocent Party prompt notice describing the circumstance of Force Majeure, including the nature of the occurrence and its expected duration, and continues to furnish regular
reports during the period of Force Majeure; 

  

	 	15.1.3	the Non-Performing Party uses all reasonable efforts to remedy its inability to perform and to mitigate the effects of the circumstance of Force Majeure; and 

 

	 	15.1.4	as soon as practicable after the event which constitutes Force Majeure the Parties shall discuss how best to continue their operations as far as possible in accordance with this Agreement. 

 

	15.2	If Force Majeure continues for three (3) months or more, the Innocent Party may give twenty (20) Business Days written notice to terminate this Agreement to the Non-Performing Party and termination
shall occur if the Force Majeure is continuing at the end of that twenty (20) Business Day notice period. 

  

	16.	ASSIGNMENT AND SUB-CONTRACTING 

  

	16.1	This Agreement shall be binding upon and inure to the benefit of the Parties, their successors and assigns. This Agreement shall be assignable: 

  
 32 

	 	16.1.1	by either Party with the written consent of the other; or 

  

	 	16.1.2	by either Party without the consent of the other Party, to any successor to all or substantially all the assets of its business to which this Agreement relates provided that it is not a Tobacco Party; or

  

	 	16.1.3	by Teva to any Affiliate (provided the same is not a Tobacco Party) without the prior written consent of CRT provided that Teva shall remain liable to CRT for performance of its obligations hereunder unless and
until the Parties choose to enter into a novation agreement that provides otherwise, 

 and any attempted assignment that is
not in accordance with this Clause 16.1 will be null and void and of no effect. 
  

	16.2	The benefit of this Agreement (but, for the avoidance of doubt, not the burden) shall be assignable by CRT in connection with a transaction with an assignee concerning CRT’s income arising under this
Agreement; provided, that in no event shall Teva be requested or required to remit payment to any party other than CRT. 

  

	16.3	Teva may not sub-contract its obligations under this Agreement to any third party other than an Affiliate of Teva or a Third Party Service Provider. Teva shall ensure that an appropriate written agreement is put
in place with each Third Party Service Provider. Any act or omission of an Affiliate or Third Party Service Provider of Teva which, if it were the act or omission of Teva would be a breach of any of the provisions of this Agreement, will be deemed
to be a breach of this Agreement by Teva who will be liable to CRT accordingly. 

  

	17.	NOTICES 

 All notices shall be in writing and sent by hand, facsimile, or airmail and shall be deemed to
be properly served (i) if sent by hand, when delivered at the relevant address; (ii) if sent by airmail, ten (10) Business Days after posting; (iii) if sent by facsimile, when transmitted, provided a confirmatory copy is sent by
post within twenty four (24) hours of transmission, and shall be sent to the following addresses or facsimile numbers as may be amended by the relevant Party in writing: 
  

			
	Teva:		Teva Branded Pharmaceutical Products R&D, Inc.
			41 Moores Road
			Frazer, PA 19355
			U.S.A.
		
	For the attention of:		Chief Scientific Officer
		
	With a copy to:		Teva Pharmaceuticals
			425 Privet Road
			Horsham, PA 19044

  
 33 

			
			U.S.A.
	Facsimile		+1 610 293 6404
		
	For the attention of:		General Counsel
		
	CRT:		Cancer Research Technology Limited
			Angel Building
			407 St John Street
			LONDON EC1V 4AD
			United Kingdom
	Facsimile		+44 20 3469 6301
		
	For the attention of:		Chief Executive Officer

  

	18.	VARIATION 

 No variation, modification, amendment, extension or release from any provision hereof shall
be effective unless it is in writing, signed by both Parties. 
  

	19.	ENTIRE AGREEMENT 

  

	19.1	Each Party confirms that this Agreement, including any and all Schedules, represents the entire understanding, and constitutes the whole agreement, in relation to its subject matter and supersedes any previous
agreement between the Parties with respect thereto. 

  

	19.2	Each Party confirms that: 

  

	 	19.2.1	in entering into this Agreement it has not relied on any representation or warranty or undertaking which is not contained in this Agreement; and 

 

	 	19.2.2	in any event, without prejudice to any liability for fraudulent misrepresentation or fraudulent misstatement, neither Party shall be under any liability or shall have any remedy in respect of misrepresentation or
untrue statement unless and to the extent that a claim lies under this Agreement. 

  

	20.	FURTHER ASSURANCE 

 Each Party hereby undertakes to do all such other acts and things, and execute and
provide all such documents at the other Party’s request and cost as may be necessary or desirable to give effect to the purposes of this Agreement. 

  
 34 

	21.	WAIVER 

 No relaxation, forbearance, waiver or indulgence by either Party in enforcing any of the terms
or conditions of this Agreement or the granting of time by either Party to the other shall prejudice, affect or restrict the rights and powers of such Party, unless contained in a writing signed by the Party charged with such waiver. The waiver of
any breach of any term or any condition of this Agreement shall not be construed as a waiver of any subsequent breach of a term or condition of the same or of a different nature. 

 

	22.	SEVERABILITY 

  

	22.1	If the whole or any part of this Agreement is or becomes or is declared illegal, invalid or unenforceable in any jurisdiction for any reason (including by reason of the provisions of any legislation and/or by
reason of any court or Competent Authority: 

  

	 	22.1.1	in the case of the illegality, invalidity or unenforceability of the whole of this Agreement it shall terminate only in relation to the jurisdiction in question; or 

 

	 	22.1.2	in the case of the illegality, invalidity or unenforceability of a part of this Agreement that part shall be severed from this Agreement in the jurisdiction in question and that illegality, invalidity or
unenforceability shall not in any way whatsoever prejudice or affect the remaining parts of this Agreement which shall continue in full force and effect. 

  

	22.2	If in the reasonable opinion of either Party any severance under this Clause 22 materially affects the commercial basis of this Agreement, the Parties shall discuss, in good faith, ways to eliminate the material
effect. 

  

	23.	EXECUTION 

 This Agreement may be executed in any one or more number of counterpart agreements each of
which, when executed, shall be deemed to form part of and together constitute this Agreement. 
  

	24.	ANNOUNCEMENTS AND USE OF NAMES 

  

	24.1	Save as provided in Clause 24.2 neither Party shall make, or procure or permit the making of, any press release or other public announcement in relation to this Agreement without first obtaining the written
approval of the other Party to any such release or announcement, which shall not unreasonably be withheld, conditioned or delayed. 

  

	24.2	Each Party agrees that it may make any announcement with respect to this Agreement or any ancillary matter as shall be required by law or the regulations of any stock exchange to which it is subject, without the
other Party’s consent provided it has used reasonable endeavours in the time available to consult with the other Party on the terms of any such announcement beforehand. 

  
 35 

	24.3	Neither Party shall use the name of the other (including in the case where the other is CRT, that of the Charity (or its successor)) other than as provided in Clause 24.1 and 24.2 without the prior written
consent of that Party which shall be at that Party’s sole discretion. 

  

	25.	DISPUTE RESOLUTION AND GOVERNING LAW 

  

	25.1	In the event that a determination of the Expert is sought under this Agreement: 

  

	 	25.1.1	any person being considered to serve as an Expert must certify that he or she is unaware of any conflict of interest or fully disclose to each Party the details of any conflict or interest or potential conflict
of interest; 

  

	 	25.1.2	the Expert will fix a reasonable time and place for receiving (i) written submissions which in no event shall provide a Party fewer than twenty (20) days to prepare. The Parties will exchange written
submissions at the same time as they are provided to the Expert and will each have a further ten (10) days to provide the other Party and the Expert with a written response. Thereafter any relevant evidence requested by the Expert that may
reasonably be considered necessary for determining the matter at issue will be provided by the Parties within such time frames as the Expert may set; 

  

	 	25.1.3	each Party may appoint any counsel, consultants and advisors as it feels appropriate to assist the Expert in his or her determination; and 

 

	 	25.1.4	the Expert will render his or her decision, with sufficiently detailed reasons, within thirty (30) days (or another date as the Parties and the Expert may agree) after receipt of all information requested
under Clause 25.1.2 above. 

  

	 	25.1.5	the determination of the Expert will, except for fraud or manifest error in the interpretation of the Agreement terms, be final and binding on the Parties. In the event that the Expert’s interpretation of
the Agreement terms is materially consistent with the interpretation submitted by a Party to the Expert and the other Party under Clause 25.1.2, it will be deemed not to be a manifest error for the purposes of this Clause. 

 

	 	25.1.6	Each Party will bear its own costs for any matter referred to an Expert hereunder and, in the absence of express provision in the Agreement to the contrary, the costs and expenses of the Expert will be shared
equally by the Parties. 

  

	25.2	 It shall be a condition precedent to the commencement of any action in court or other tribunal (save an action for an interim injunction) in
respect of any dispute relating to this Agreement that the Parties have sought to resolve the dispute by either Party notifying the other Party in writing for resolution to the Executive Officers who shall meet (whether in person or via
teleconference) within twenty-one (21) days of such notice to seek resolution in good faith. If the Executive Officers are unable to resolve the dispute at such meeting, either Party may

  
 36 

	 	
pursue any remedy available to such Party at law or in equity, subject to the terms and conditions of this Agreement. 

 

	25.3	This Agreement shall be governed by and construed in accordance with the laws of England and Wales and the Parties agree, subject to Clauses 25.1 and 25.2, to submit to the exclusive jurisdiction of the English
courts in respect of any dispute arising out of or in connection with this Agreement (except in respect of disputes under Clause 12 where jurisdiction is non-exclusive). 

 

	26.	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 

 Save that the Charity may enforce Clauses 9.1, 11.1 and
24.3, and the Charity and CRT’s respective officers, employees and agents may enforce Clauses 9.1 and 11.1, no term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this
Agreement. Notwithstanding the provisions of this Clause 26, the Parties shall be entitled to amend, suspend, cancel or terminate this Agreement or any part of it in accordance with Clause 18, without the consent of any third party including those
referred to in this Clause 26. 
  

	27.	RELATIONSHIP OF THE PARTIES 

  

	27.1	Nothing in this Agreement is intended to, or shall be deemed to, constitute a partnership or joint venture of any kind between any of the Parties, nor constitute either Party the agent of the other Party for any
purpose. Neither Party shall have authority to act as agent for, or to bind, the other Party in any way. The relationship of the Parties established by this Agreement is that of independent contractors. 

 

	27.2	Unless expressly provided otherwise in this agreement, the liability of the Parties for their respective obligations and liabilities under this agreement shall be several and shall extend only to any loss or
damage arising out of their own breaches. 

  

	28.	TAX AND COMPLIANCE WITH LAWS 

  

	28.1	 Each Party agrees that the other Party is entitled to all tax benefits, including in particular, tax credits and/or tax deductions attributable
to amounts the other Party has paid hereunder. Each Party shall file its tax returns on a basis consistent with this Agreement, and shall not take any action inconsistent with the other Party’s entitlement to such tax benefits. In the event
that a Party, in its judgment, determines that it must obtain information and verification regarding the use or application of such expenditures in order to prepare its tax returns or to respond to an inquiry during a tax audit or any other inquiry
relating to such treatment of its tax return, or to defend its tax position in any proceeding including litigation, the Parties shall reasonably 

  
 37 

	 	
cooperate with each other and provide such information as the other Party may reasonably require at the request and expense of the requesting Party. 

 

	28.2	In exercising its rights under this Agreement, each Party shall fully comply with the requirements of any and all applicable laws, regulations, rules and orders of any Competent Authority having jurisdiction over
the exercise of rights under this Agreement. 

  
 38 

 The Parties hereby execute this Agreement by their duly authorised representatives: 

 

			
	For CANCER RESEARCH TECHNOLOGY LIMITED
		
	Director:		 /s/ P.J. L’Hullier

	Print name:		P.J. L’Hullier, Director, Business Management
		
	Date:		January 17, 2014
	
	For TEVA BRANDED PHARMACEUTICAL PRODUCTS R&D, INC.
		
	Signature:		 /s/ Rivka Kreitman

	Print name:		Rivka Kreitman
		
	Date:		January 6, 2014
		
	Signature:		 /s/ Bruce D. Dorsey

	Print name:		Bruce D. Dorsey
		
	Date:		January 20, 2014

  
 39 

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51 

 SCHEDULE 4 

CONFIRMATORY PATENT LICENCE 
 THIS
AGREEMENT is made the              day of              20[    ] 

 

	1)	CANCER RESEARCH TECHNOLOGY LIMITED, a company registered in England and Wales under number 1626049 whose registered office is at [407 St John Street, London, EC1V 4AD], England (“CRT”); and

  

	2)	TEVA BRANDED PHARMACEUTICAL PRODUCTS R&D, INC., a Delaware corporation with its principal place of business at 41 Moores Road, Frazer, PA 19355, U.S.A. (“Teva”). 

RECITALS: 
 By an agreement (the “Main
Agreement”) dated                      and made between CRT and Teva, CRT agreed for the consideration therein contained, among other
things, to grant to Teva a licence under [Country/region Patent No.                     ] (the “Patent”) of which this
Agreement is a confirmatory licence. 
 OPERATIVE PROVISIONS: 
  

	 	1.	In pursuance of the Main Agreement and for the consideration referred to in the Main Agreement CRT hereby grants to Teva the [exclusive] licence from the          day of
                 20     to research, develop, use, keep, make, have made, import, sell and otherwise dispose of Licensed Products (as defined in the
Main Agreement) in the Field (as defined in the Main Agreement) in the Territory (as defined in the Main Agreement) for the life of the Patent and subject to the provisions of the Main Agreement. 

 

	 	2.	Subject to the provisions of the Main Agreement this Agreement shall determine without notice in the event of the determination for any reason of the Main Agreement. 

  
 52 

 IN WITNESS of which this Agreement has been executed as a deed and delivered the day and year first above
written. 
  

									
	EXECUTED as a deed		)		Name (PRINT):		  

	For and on behalf of		)		Title (PRINT):		  

	CANCER RESEARCH		)		Signature:		  

	TECHNOLOGY LIMITED		)		Date:		  

					
					)		Name (PRINT):		  

					)		Title (PRINT):		  

					)		Signature:		  

					)		Date:		  

		
	acting by a Director and its Secretary / two Directors		
				
	EXECUTED as a deed		)		Name (PRINT):		  

	For and on behalf of		)		Title (PRINT):		  

		
	TEVA BRANDED PHARMACEUTICAL PRODUCTS R&D, INC.                    )		
			
			Signature:
                                         
                                   		
					
					)		Date:		  

					
					)		Name (PRINT):		  

					)		Title (PRINT):		  

					)		Signature:		  

					)		Date:		  

 acting by a Director and its Secretary / two Directors 

  
 53 

 SCHEDULE 5 

DEVELOPMENT PLAN 
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